IRS Feed

Tax notices are among the pieces of mail delivered by the U.S. Postal Service in recent weeks. Due to COVID-19 complications, those documents detailing IRS questions about earlier filings have later due dates. The deadline for some is this Friday, July 10. It's the first full week of July 2020, meaning that the countdown clock over there in the ol' blog's right column (shameless plug) shows that we're just single digit days away from this year's July 15 filing deadline. And some folks have an even earlier due date. If you recently received an Internal Revenue Service notice, you might... Read more →


Do you have a big tax bill, but are down to your last bottom dollar? That's the worry of many taxpayers in this coronavirus-affected filing season. But you do have payment options. (Photo by cottonbro via Pexels) Tax Day 2020 is rapidly approaching and a lot of taxpayers are not ready for it. It's not just their Form 1040 filing that's an issue. They are concerned about paying any tax that's also due on this year's July 15 due date that was postponed by coronavirus precautions. The audit defense company TaxAudit reports that more than a third — 37 percent... Read more →


If you want to pay your taxes in cash, you now have more retail locations from which to choose. But make your choice soon. It takes days to set up a cash tax payment. If you dawdle, you could end making a late cash payment and owing Uncle Sam penalty and interest charges, too. Do you like paying by cash? Then you'll be thrilled by the Internal Revenue Service's latest tax payment move. Ace Cash Express and Casey's General Stores across the country have joined 7-Eleven stores in offering a way for taxpayers to pay their tax bills with cash.... Read more →


I know you're tired of taxes continuing into July. I know you just want to be done with your filings and the Internal Revenue Service and move on to other things. But I also know that most of you, especially if you're facing coronavirus-related financial difficulties, don't want to just hand over money, possibly hundreds of dollars to Uncle Sam. You'll do just that if you were due a tax refund on your 2016 taxes and didn't file for it during the 2017 tax season. That's the situation for an estimated 1.4 million individual taxpayers. If they don't claim those... Read more →


Hello July, which according to this year's goofy tax calendar is April. That means instead of heading to the beach, which is closed anyway due to COVID-19, or taking a longer trip to Europe, which isn't letting U.S. residents in, again due to COVID-19, we're spending mid-summer focusing on taxes. The main one, of course, is filing 2019 returns by the new Tax Day 2020: July 15. That date also is key for several other tax tasks to take care of in July. Here are six that you need to deal with in these two weeks before the 2020 tax... Read more →


The tax agency has made it clear that the July 15 filing deadline is firm. But you still can get an extension to file, giving you until Oct. 15 to submit your Form 1040. Just ask for it by July 15. Plus, there other filing extension options (and forms on this Tax Form Tuesday!) for other tax circumstances. If you were hoping the Internal Revenue Service would push Tax Day 2020 beyond July 15, sorry. The agency says the already-delayed filing and tax paying deadline for 2019 returns is firm. When the IRS announced that decision late Monday afternoon (or... Read more →


Erin M. Collins took over as National Taxpayer Advocate on March 30, just as the United States was coming to grips with the coronavirus, so it's no surprise that the pandemic and its effects on taxes are part of her first official report to Congress. "Starting in the midst of a pandemic and witnessing IRS offices closing one by one was not the way I envisioned my role when I accepted the position," wrote Collins in the report's preface. But, added Collins, there's been a silver lining. In conference calls with her leadership team, Taxpayer Advocate Service (TAS) employees and... Read more →


If you're still waiting for your federal tax refund, the Internal Revenue Service has a bit of good news for you. When you finally get the amount that you overpaid on your 2019 taxes, Uncle Sam will tack on a bit on interest to make up for your wait. Actually, it's more than a bit if you compare it to current interest rates for most accounts. The IRS this week announced this week that it will be paying a 5 percent annual interest rate on refunds issued between April 15 and June 30. Since the IRS adjusts its interest earning... Read more →


Internal Revenue Service has offices nationwide, like this one in New York City. They were closed, at least partially, earlier this year as the agency took steps to slow the spread of the coronavirus. Now the IRS is calling back more of its workers to deal with the impending July 15 Tax Day. (Photo by Matthew Bisanz via Wikipedia Commons) As Tax Day 2020 nears, the Internal Revenue Service is bringing back more staff — thousands are expected back at their desks on Monday, June 29 — to deal with the added tasks that have been given the agency in... Read more →


Photo by Andrea Piacquadio via Pexels The last few months have been interesting for older individuals exploring ways to make the most of their retirement money. This demographic got some more, and mostly good, news again this week. The Internal Revenue Service has decided they now have more time to return required retirement account withdrawals they made earlier this year. Retirement savers' law changes: The tax-related retirement news started in December 2019 with the enactment of the wide-ranging retirement reform measure. The so-called SECURE Act, as the Setting Every Community Up for Retirement Enhancement Act is called, moved the age... Read more →


Did you get your COVID-19 stimulus money, either as direct deposit, debit card or a check like this? If so, you also should have received a letter discussing the payment and amount. The IRS says you need to keep that letter in your tax files. Congress might be working on another round of COVID-19 economic relief payment (EIPs). I say might because although the House in mid-May approved the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act and its provisions for even more stimulus money, the Senate and White House are dragging their heels. Not quite the max: Democrats,... Read more →


The Internal Revenue Service announced in late May that it had sent out more than 152 COVID-19 economic relief payments totaling almost $258 billion Some coronavirus cash, however, went to folks that weren't supposed to get it. This includes relief payments to deceased taxpayers, some foreign-based workers and incarcerated individuals, as well as those married to someone who is in prison. Request, not demand: The IRS wants these folks to send back their stimulus money, although there's no indication, either legislatively or regulatorily, that the agency has any authority to require it. There's also the question of how it would... Read more →


Tax professionals have always played an important role in the lives of taxpayers. Their value has been underscored during coronavirus tax time, with the many new COVID-19 tax laws. (Yes, I'm looking at you Paycheck Protection Program.) But, as with just about every aspect of life, tax preparers aren't perfect. Specifically, some let their own tax tasks slide, according to a recently released Treasury Inspector General for Tax Administration (TIGTA) review. In reviewing Internal Revenue Service data, TIGTA uncovered 10,495 preparers who prepared more than 2 million 2016 tax year returns for clients, but who but did not file their... Read more →


The House-passed Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act called for more a second round of COVID-19 stimulus checks. The Senate is starting to come around to the idea. But some folks are still waiting for their original coronavirus economic impact payments (EIPs), which were authorized in late March as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Those initial COVID-19 payments could be as much as $1,200 for qualifying individuals or $2,400 for eligible married couples. Parents also could get $500 for each qualifying child who's younger than 17 at the end of this... Read more →


One of the reasons the Internal Revenue Service has called more of its staff back to their offices is so they can deal with the backlog of tax notices. When the agency sent most personnel home earlier this year as a coronavirus pandemic precaution, some previously-printed balance due notices didn't get mailed. Now with some IRS operations restarting across the county, these notices will be delivered to taxpayers by the U.S. Postal Service in the next few weeks. Original notices, old dates: These notices, however, won't be updated versions produced by staffers who now are back at their desks. They... Read more →


Thousands more Internal Revenue Service employees are will be back in their offices this month, starting Monday, June 15. They're the second wave of IRS staff to return to work after the agency in mid-March sent more than half of its 81,000 staff home as a way to help slow the spread of COVID-19. More than 10,000 IRS workers in Kentucky, Texas and Utah were called back on June 1, primarily to deal with the million-plus pieces of U.S. Postal Service mail that had piled up in their absence. Those returning to their offices tomorrow are IRS personnel in Georgia,... Read more →


Looking for some weekend or beyond tax reading? Then check out the latest Internal Revenue Service Research Bulletin. Notice that I didn't say light tax reading. This collection of papers presented last June at the 9th Annual Joint Research Conference on Tax Administration, an event cosponsored by the IRS and the Urban-Brookings Tax Policy Center, is 252 pages. And some of the topics can be dense. The presenters and attendees at the 2019 conference, both in persona and online, included researchers from many areas of the IRS, officials from other government agencies and academic and private sector experts on tax... Read more →


Free File is under fire again. The annual tax season program, in which some tax software programs participate via a special Internal Revenue Service website, was created 17 years ago to offer no-cost tax filing to low-to-middle income taxpayers. The current agreement private/public tax filing deal is in place through Oct. 31, 2021. This year, eligible taxpayers — that's those with adjusted gross incomes of $69,000 or less, regardless of filing status — can use Free File to meet the coronavirus-delay July 15 tax filing and payment deadline. Those who decided to get an extension can use Free File until... Read more →


You're following all the recommended pandemic precautions. You stay home. You have your groceries and meals delivered. If you must go out, it's for drive-through or curbside pickup of necessary items. You always wear a mask when you leave your home. But you still might not be safe from the latest iteration of the coronavirus outbreak. This time, though, it's not medical, but financial. Scammers are coming to us via emails and phone calls, using a variety of tricks to get their hands on our COVID-19 economic impact payments (EIPs) and other funds. The Internal Revenue Service's Criminal Investigation (CI)... Read more →


Video conferencing is becoming more acceptable, even in IRS communications with some taxpayers. It's possible that a few good things might come from COVID-19. We might be able to adapt our infection precautions to post-pandemic processes that are more worker friendly and business efficient. Yes, I am talking about expanded use of technology. And yes, I mean beyond subscribing to every streaming service to fill your days while you were (or are) in isolation mode. The latest example comes from the Internal Revenue Service. Uncle Sam's tax collector has for years been urging us taxpayers to file our returns electronically... Read more →