I got my first tax statement today, a 1099 for some freelance work I did last year. That's just one of the documents that millions of taxpayers are awaiting so they can file their tax year 2021 returns. In addition to income statements, such as the 1099-NEC I got, 1099s with details on investment earnings, and W-2 forms for folks with wage-paying jobs, there are beau coup documents reporting tax-related transactions. Among the most common are forms detailing home related mortgage interest and taxes paid from escrow accounts, retirement account distributions, prize and gambling winnings, and in some cases, health... Read more →
January 2022
It's official. The Internal Revenue Service just announced that it will begin accepting and processing 2021 individual tax returns on Monday, Jan. 24. Yes, I realize some eager taxpayers have already e-filed their personal tax year 2021 Form 1040s. That's OK. But you still have to wait. The IRS has placed them in a holding queue, and won't start processing them until the official Jan. 24 start of the tax season. But at least that tax task is off your 2022 to-do list. And yes, more will file on Jan. 14, which is when the IRS' partnership with some tax... Read more →
The Internal Revenue Service Criminal Investigation (IRS-CI) unit is my favorite section of the tax agency. Part of it is because I've always been fascinated by law enforcement. Add tax geek to the mix, and it's a natural fit. My investigative bent was bolstered when my first full-time job as a young newspaper reporter on the cop beat. Those West Texas police officers tried their best to intimidate and gross out this young woman. They failed. Many times, solving a crime also is like unravelling a mystery, especially when the crooks are inventive. As a life-long mystery fan, that component... Read more →
Photo: United Van Lines Our house is at that age where it needs a lot of care to continue to be comfortable. That's led to more frequent discussions about whether to stay or go. I'm the nester in our family, and was the one who pushed for buying our place almost 17 years ago. But a couple of times recently, like when our main HVAC unit needed to be replaced, I've argued for just selling and letting the new owners deal with it. The hubby has been able to talk me down so far. He also knows that as much... Read more →
Updated Monday, Jan. 10, to add the just-announced start of the individual taxpayer filing season on Jan. 24. Free File will open earlier, on Jan. 14. With 2022's arrival came our new calendars. It also means that we need to mark some key tax dates. For the last couple of years, COVID-19 has wreaked havoc with the tax dates we were used to meeting. There are some changes in 2022, too, but most of them are due to the traditional way the Internal Revenue Service deals with tax deadlines falling on weekends or federal holidays. The affected due dates get... Read more →
A new year means a new federal tax filing season, but most states collect some type of income tax, too. And when 2022 arrived, so did a variety of tax changes across the United States. In many, it was tax cuts, even with the effects of the continuing COVID-19 pandemic posing some revenue problems. The unanticipated tax cuts mean that states are likely to face difficult budget choices in the future. But hey, lawmakers, especially in election years, tend to think about the here and now, leaving future fiscal issues to the future and those around then to deal with... Read more →
It's ready, set, go for tax season 2022, at least for business taxpayers. The IRS has announced a start date for these filings. (Photo by Snapwire via Pexels) We have a start date for the Internal Revenue Service's 2022 tax filing season! Unfortunately for individual taxpayers, it's not for you. (Update, Jan. 10: The IRS has set Monday, Jan. 24, as the start of the individual tax filing season.) The IRS announced on its Modernized e-File (MeF) Status web page that it will begin accepting electronically filed business tax returns at 9 a.m. Eastern time on Jan. 7, 2022. Yes,... Read more →
It's the first week of January and some people are already working on their taxes. They're expecting a refund and they want the Internal Revenue Service to have their forms as soon as possible so the agency can process them when tax season 2022 officially starts. Those enthusiastic filers, however, might want to take a break. In order to properly file their 2021 tax returns, many likely will need one or both tax statements the IRS is sending out this month. One is a notice of how much an individual got as the third Economic Impact Payment (EIP) issued in... Read more →
Image: BoulderCounty.org It looks like New Tax Year 2022 is going to be like 2021 in at least one regard. The usual April Tax Day is postponed for some filers. The reason also is the same as last year. Late-year major natural disasters. The devastating, but thankfully not deadly (although two people are still missing), end-of-2021 wildfires in Colorado have joined this unwanted list. The Internal Revenue Service today announced that Boulder Country residents whose homes and/or businesses were in the path of this past weekend's wildfires will have until May 16 to file various returns and make tax payments.... Read more →
One of President Joe Biden's acts as 2021 wound down was issuing an executive order calling for improvements at government agencies, including the IRS, to improve customer service. (White House Facebook photo) The Biden White House says a recent Executive Order (EO) will make dealing with federal agencies easier. That includes the one with which almost every American interacts at some point, the Internal Revenue Service. Improved IRS customer service is part of the Biden Administration's broader vision of ensuring that the federal government works for its citizens. Toward that goal, President Joe Biden's Executive Order 14058 says the "Federal... Read more →
I know I said this last year, but once again, I have never been so ready for a fresh start! The last two years were full of chaos, COVID-19 and otherwise, that affected every part of our lives, taxes included. So, recoveries from a New Year's Eve of hearty partying notwithstanding, let's get right to 2022 taxes! April Tax Day, but not the 15th: This year, the Internal Revenue Service is aiming to get back on a more normal cycle. Tax Day 2022 is in April. OK, it's on Monday the 18th instead of the 15th, but still. The three-day... Read more →