IRS Feed

Taxpayers and tax professionals alike are breathing a sigh this week. The final tax extension Oct. 15 filing deadline has come and gone. Sure, there's some cleanup left. The storing of files. The adjusting of withholding where tax bills were larger or smaller than expected. And, yes, the waiting for refunds by procrastinating filers who weren't in a hurry to get their tax cash. It does happen. Chances are, however, that the Internal Revenue Service isn't sending out many refunds this month. I'm not just saying that because most October filers don't get refunds. I'm basing my expectation on recently... Read more →


Around 2 million Individual Tax Identification Numbers (ITINs) must be renewed by year's end. Here's a look at these special tax identification numbers, who uses them and how to renew or get one if you're not eligible for a Social Security number. Numbers obviously are what the Internal Revenue Service is all about. There are special identification numbers for a variety of tax circumstances. There are earnings amounts and tax code references and line numbers on forms and of, course, identification numbers of both tax professionals and taxpayers that must go on returns. For most individual filers, a Social Security... Read more →


It's Columbus Day. Stop. Before you start with the emails, yes, I know this second Monday in October is a controversial holiday. In recent years, many jurisdictions beyond the federal government have opted to spend today commemorating the original inhabitants of our country. That's why you'll read and hear about Indigenous Peoples' Day events today. pic.twitter.com/l2LymtmS2J — Bobby (@Bobbyobbo) October 14, 2019 But, like it or not, today still is officially Columbus Day, a celebration of Christopher Columbus' accidental discovery of North America. And it's still a federal holiday in the United States. Holiday tax effects: A federal holiday can... Read more →


Attention, tax preparers. Next week is a big one. The filing extension deadline is Tuesday, Oct. 15. Then the very next day, the renewal season opens for paid Preparer Tax Identification Number (PTIN) applications and renewals. Also note that while there won't be any requirement to pay a user fee to obtain or renew a PTIN, this likely is the last time that the identification number assignments will be free. Last week, as the U.S. Supreme Court began its new term, the justices decided not to hear the case that reinstated the fees for PTINs. That means the ruling affirming... Read more →


Millions of taxpayers will be working on their 2018 tax returns this weekend, frantically filling out forms to meet the Oct. 15 filing extension deadline. Some of them will likely take advantage of Free File, the Internal Revenue Service partnership with the tax software industry that allows eligible filers — this year that's those whose adjusted gross income is $66,000 or less — to prepare and electronically file their returns at no cost. Free File came under fire earlier this year when Pro Publica reported that some of the tax prep major players that participate it the program also used... Read more →


I've dealt with bill collectors over the years. Fortunately for me, it's been on behalf of a couple of relatives who found themselves in over their heads financially. Fortunately for my family members, after much — way too much — and often contentious back and forth, we were able to come to a satisfactory resolution. That's why I tend to share former Taxpayer Advocate Nina Olson's skepticism about the way that private collection agencies, or PCAs in tax-acronymese, interact with folks who owe taxes. But despite my, Olson's and many others' lingering distrust of these operations, private debt collect is... Read more →


Teslas are the most popular electric vehicles (EVs) in the United States. Creator Elon Musk, however, isn't riding on his EV's laurels. The space exploration and auto impresario says some unusual custom horn sounds are coming. That's right, the honk of your high-dollar Tesla soon could replicate fart and goat noises. That should spark more potential owner interest, although the biggest market for this change, 9-year-old boys, can't drive. Still, Musk knows he needs to do something to keep interest in Teslas high since the EVs no longer qualify for the federal tax credit. Worse, a new report from an... Read more →


The Internal Revenue Service and its Security Summit partners have made major strides in recent years in fighting tax-related identity theft. Much of the effort has been in educating taxpayers and businesses about ways to recognize and avoid scams and other tax ID schemes. The IRS also has improved the way it works with taxpayers who do fall victim to identity thieves. Now Uncle Sam is expanding a way that taxpayers can be more proactive in fighting identity theft. The IRS' opt-in Identity Protection Personal Identification Number (IP PIN) now is available for the 2020 tax-filing season to taxpayers in... Read more →


The Internal Revenue Service's form revision process isn't quite the red-pencil technique used on text documents, but it gets the job done. The latest group of revised tax forms will affect corporate taxpayers. (Photo via pxhere) Many business taxpayers and their tax advisers are working this week on the Form 1120 returns that that they extended until Oct. 15. Next year, though, these corporate filers will be looking at a new return. The Internal Revenue Service is continuing to tweak a wide variety of returns, many in response the changes made by the Tax Cuts and Jobs Act (TCJA). The... Read more →


Business meals are covered by per diem rates. Business travel entails a variety of expenses. In addition to the costs of getting to your work-related destination, you've got to pay for a place to stay, a rental car if you flew there, meals and incidentals. When you hit the road as an employee, your boss has a couple of options when it comes to reimbursing you. You can collect all your business travel receipts and turn them in with an expense report. Or the company can provide you with a set-per-diem amount. Per diem, from Latin for by day, is... Read more →


No, that's not me. I would be the person face down on my exercise mat next to this woman. (Photo by Stefano Montagner via Flickr) My exercise class instructors are trying to kill me. OK, not exactly and not me specifically, but for all practical purposes I'm on their hit list. My fitness club's new teachers are real feel-the-burn, you-can-do-it types. Plus, due to some recent pressing personal matters, I haven't made it to my regular classes for a while. Now that I'm attending again, my out-of-practice aging body is having a harder time keeping up with the reps. I'm... Read more →


Photo by creditdebitpro Voluntary compliance is the backbone of the U.S. tax system. But when that doesn't work out as Uncle Sam hopes, he knows the Internal Revenue Service has ways to get the money. One of the most drastic ramifications of unpaid tax is the loss of other property. In extreme unpaid tax cases, the federal government places a lien on delinquent taxpayers' other assets. This ensures the Treasury gets something of value to offset the overdue tax bill. Criminals know this process, too. That's why, warns the IRS, we all need to be on alert for a new... Read more →


The tax gap is holding as steady as this gap on the old Florida Keys bridge. (Photo by Ewen Roberts via Flickr) We might want to revise Benjamin Franklin's famous tax saying. The new version could read, "In in this world nothing can be said to be certain, except death, taxes and the tax gap." The tax gap is the difference between the amount of tax that filers should pay and the amount that they actually hand over voluntarily and on time to the Internal Revenue Service. And IRS data continues to show that while tax years come and tax... Read more →


Law enforcement officers across five U.S. federal agencies successfully concluded a four-month investigation this month with the arrest of 281 people allegedly involved in global email scams. The scams, officially known as Business Email Compromise (BEC) schemes, are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Most of the alleged cyber criminals, 167, were arrested in Nigeria. Insert your own fraudulent prince email comments here. Another 74 people in the United States were taken into custody. The remaining arrests were made in France, Ghana, Italy, Japan, Kenya, Malaysia, Turkey and the United Kingdom.... Read more →


Flooding along I-10 in the Port Arthur, Texas, area due to Tropical Storm Imelda's excessive rain. (Photo by Jefferson County Sheriff's Office via Twitter) Coastal and East Texas is flashing back to 2017. That year, major Hurricane Harvey devastated Houston. Many parts of Space City and the Gulf Coast are still recovering. Now it's Tropical Storm Imelda, which now has devolved into a depression, that has dropped way too much rain on the area. At least five people have died and the southeastern part of the Lone Star State is facing record-setting flooding. Google Maps Using nest egg to make... Read more →


The Trump Administration currently is embroiled in a whistleblower controversy. But another situation where a witness to tax wrongdoing — not any alleged Donald J. Trump activity! — has worked out much more satisfactorily. A $11.5 million award has been presented to a person whose information led to the government collecting over $44.4 million in taxes, penalties and interest, according to the whistleblower attorneys involved in the case. In announcing the award, attorneys Stephen M. Kohn of the Washington, D.C. firm of Kohn, Kohn and Colapinto and Dean Zerbe of the Houston-based firm Zerbe, Miller, Fingeret, Frank & Jadav, lauded... Read more →


It's Friday the 13th and a full moon will rise late tonight. Werewolves and Friday the 13th. Scared yet? Take a breath. Depending on where you live, and how superstitious you are, tonight might not be so bad. The Farmers' Almanac says folks in the Pacific, Central and Mountain time zones will get to gaze on the full moon before midnight this Friday, Sept. 13. However, if you live in the Eastern time zone, the moon won't be full until 12:33 a.m. on the less spooky Saturday, Sept. 14. Micro Harvest moon: Plus, it won't be a very big full... Read more →


If you read last week's September tax moves post (thanks), you might remember that one of the four suggested actions was to pay your estimated taxes. Not to be a nag, or a reminder as I insist to the hubby, but I'm putting that tax task out there again today. The third installment for the 2019 tax year is due Sept. 16. Yes, that's a day later than normal, but the usual 9/15 due date falls on Sunday. So you get an extra day, next Monday, to either snail mail your 1040-ES voucher and check or money order to the... Read more →


Al "Scarface" Capone at his sentencing for tax evasion. Back in the Prohibition Era, federal agents — notably those from the Internal Revenue Service — took down the notorious gangster. The tax agency's Criminal Investigation agents are celebrating their 100th birthday this year. (Photo courtesy All That's Interesting: 25 Al Capone Facts) The United States' tax system is based on the premise that all income is taxable, including illegally earned income. Our tax system also relies on the voluntary reporting of that income, including ill-gotten gains. But human nature being what it is, that doesn't always happen, even with legally... Read more →


Yes, I know I've been fixated of late on computer security. First there was the ransomware warning. Then the new Internal Revenue Service impersonation tax identity theft scheme appeared. Part of the reason such topics have captured my fancy recently is that for the last week I've been away from my office a lot. That's meant doing much of my work on other systems. Even though I trust them, I always get a twinge of fear that somehow, someone will hack me. So thanks for bearing with me on my repetitive focus on computer — and tax — security, as... Read more →