IRS Feed

Screenshot from a look at some of the people who depend on the gig economy. Watch the full YouTube video here. Everybody is looking for more money. Taxpayers want more in their tax refunds, especially those surprised by smaller amounts this filing season. Donald J. Trump wants more to build his campaigned-promised border wall. People who are unhappy with their current earnings are side hustling to get more income. It's that last group, says the Treasury Inspector General for Tax Administration (TIGTA), that the Internal Revenue Service should be focusing on as a way to get more money into the... Read more →


Most of us who've ever worked for someone else are very familiar with Internal Revenue Service Form W-2. This is the statement you get early every year to tell you how much you were paid. Your W-2 also reports the amount of income tax withheld at both federal and, where applicable, state and/or local levels. There also are details on such things as the amount of tax-deferred money went into or you took out of your 401(k), how much your employer paid for your health care coverage and how much help you got from the boss in paying for care... Read more →


There's better news for taxpayers this week. Internal Revenue Service data for the second week of the 2019 tax filing season shows a slightly larger refund amount. When the IRS released its first-week data, which covered 2018 tax returns filed by Feb. 1, the number of 1040s submitted and processed, as well as the number of refunds and average amount of those fewer checks, were dramatically lower than at the same time last year. That led to much grumbling by filers and arguments among supporters and opponents of the Tax Cuts and Jobs Act (TCJA) about how the major tax... Read more →


By now, everyone knows that a lot of taxpayers are getting the worst news ever at filing time. They owe the U.S. Treasury money. We can debate the reasons for the unexpected tax bills ad infinitum. Withholding tables were rejiggered in 2018 following the changes in the Tax Cuts and Jobs Act (TCJA). Itemized deductions and exemptions were reduced or eliminated by that tax legislation. Taxpayers didn't adjust their withholding to get their paycheck amounts more in line with the new law. The bottom line is that more than the usual number of filers this year are going to have... Read more →


The National Taxpayer Advocate this year selected 21 major problems that taxpayers encounter in their dealings with the Internal Revenue Service. I found five of those issues particularly troublesome. Every year, the National Taxpayer Advocate issue a report to Congress. The 2018 version released this week included a look at, not surprising, how the recent government shutdown affected not only Internal Revenue Service operations, but also the taxpayers who, particularly at this time of year, are relying on IRS services. Part of that annual report also includes at least 20 tax matters that the Taxpayer Advocate identifies as the most... Read more →


Open-close sign via Giphy.com The drama continues in Washington, D.C., as far as keeping the federal government open. It looked like, despite some grumbling from all sides, that a bipartisan, bicameral deal reached this week would keep all of the federal government open past Feb. 15. We all need to keep our fingers (and toes) crossed that it happens, especially those of us — which mean most Americans — who deal with the Internal Revenue Service. The IRS obviously among those pushing for a resolution that will get the agency through the 2019 tax filing season. The agency is still... Read more →


One of my favorite recent TV shows was The Americans, FX's series on embedded Russian spies during the 1980s Cold War. For six seasons, we fans watched the couple known to their suburban Washington, D.C. neighbors as Phillip and Elizabeth Jennings raise their two U.S.-born children, run their small travel agency and spy, sometimes in deadly fashion, for their native U.S.S.R. One of the underlying themes was how well and easily the Jennings assimilated into the America they were trying to bring down. It's a common trope, but one done well and with nuance by the television program. A radio... Read more →


This tax filing season is a troubling and troublesome one for millions of filers. They're dealing with major tax law changes which many are finding have adversely affected their expected tax refund amounts. Things are slowly getting back to normal at the Internal Revenue Service following the recent federal government shutdown. Some quick indicators that more IRS workers are back include my email box getting more messages from the agency, more updates on IRS.gov and reports on how well (or not) the 2019 filing season is going. About that last matter, IRS has resumed its annual weekly postings of tax-filing... Read more →


Most tax preparers are honest and work to help their clients. Some, however, use shady methods to make money off unsuspecting filers. Don't be one of them! More of us every tax-filing season are turning to tax professions. The 2019 filing season in particular has underscored the value that tax professionals add. This is the first year taxpayers have had to deal with the real-life effects of the many Tax Cuts and Jobs Act (TCJA) change. A knowledgeable tax preparer can help you navigate this new maze. But you need to be careful in picking the person to be your... Read more →


I never seem to be able to submit our joint Form 1040 early in the filing season, partly because I have to sort through all this material to fill out the forms! There are many reasons why millions of taxpayers procrastinate when it comes to submitting their annual returns. Much of the time, those excuses aren't good. But there are some times when you shouldn't rush to finish your Form 1040 early in the filing season, even if you're expecting a tax refund. Here are six reasons to wait a bit before filing: 1. To get your return right. Doing... Read more →


Updated Feb. 20, 2019 We're well into the 2019 tax filing season and things have been a little slow, thanks in large part to the longest government shutdown in U.S. history that hampered Internal Revenue Service preparations for the millions of tax returns it receives each year. Still, millions of taxpayers already have filed their returns. After the second week of the filing season, which ended on Feb. 8, the IRS had received almost 29 million returns. Most, if not all, of those filers were expecting refunds, although some were unpleasantly surprised. At least, though, they have their taxes out... Read more →


There was national anthem controversy at Super Bowl LIII, but it wasn't about what the players did during the song. It was about how long it took Gladys Knight to sing the Star-Spangled Banner and how it affected the associated prop bet. If you did come out on the winning side of the song, here's how to report that and other taxable gambling income. There's no disagreement that Gladys Knight's Star-Bangled Banner was magnificent. However, gamblers had some issue with how long the song lasted, which was one of the prop bets wagered on the game and its ancillary events.... Read more →


National EITC Awareness Day was Jan. 25. Did you miss it? Probably. It's not a federal holiday, but rather the day each year when the Internal Revenue Service celebrates the tax benefits the Earned Income Tax Credit, the full name of the aforementioned acronym. It's also a time that the IRS tries to get the word out about the EITC. This year, though, the IRS' message about this tax break for lower-income workers got drowned out. EITC Day 2019 fell on the day that the longest government shutdown in U.S. history came to an end. So most attention, tax and... Read more →


Much of the mass media coverage of Tax Cuts and Jobs Act (TCJA) changes has focused on how they affect individual taxpayers. There are, after all, 150 million or so of us who, for the first time this filing season, are now dealing with the practical, real-life effects of the new law. But let's be honest. Business taxes were the impetus behind the biggest tax reform measure in more than 30 years. In this area, the 20 percent Section 199A tax deduction for certain small businesses has gotten the lion's share of coverage. It was added to the bill to... Read more →


Just like the Highlander character of film and television fame, the new Tax Cuts and Jobs Act under which we're now filing our 2018 tax returns says there can be only one. One Form 1040, that is. The Internal Revenue Service today begins processing millions, if you go by the agency's prior filing season data, of early-filed tax returns. IRS staff are going to face more than the usual filing season chaos since most of them are coming back to work after 35 days of being shutout. (Short story: Get ready for some delays.) Filers, too, are in for some... Read more →


The red light has changed to green for the IRS now that the longest federal government shutdown in U.S. history is over. (Photo by Kari Bluff via Flickr) The Internal Revenue Service should be fully staffed as we official start the 2019 tax filing season on Monday, Jan. 28. Holdover shutdown issues, however, still could cause delays, which many taxpayers and tax professionals already have experienced. Donald J. Trump signed into law late Friday, Jan. 25, a bill to end the longest federal government shutdown in U.S. history. That same day, the White House Office of Management and Budget notified... Read more →


UPDATE, 9:05 p.m. Central Time: Donald J. Trump has signed into a law a short-term funding bill that should get paychecks flowing again for the around 800,000 federal workers affected by the longest government shutdown in U.S. history. UPDATE 2:30 p.m. Central Time: A deal to reopen the federal government fully for the next three weeks was announced by Donald J. Trump this afternoon. The government will reopen; Trump gets no funding (yet) for his campaign-promised physical border wall. This should solve the current furloughed workers' sick-out crisis. Will this truce last beyond Feb. 15, or will we go through... Read more →


The 2019 tax filing season starts on Monday, Jan. 28. That's when the Internal Revenue Service will start accepting and, more importantly, processing tax returns. While there's still some concern as to whether the IRS is up to the job this year since will be operating on half-staff (or fewer, according to reports that many recalled agency employees are skipping [unpaid] work) one thing is certain. We taxpayers have to meet tax deadlines, government shutdown or no government shutdown. So mark your calendars for this year's key filing dates. Jan. 28, 2019: Filing season 2019 begins. If you filed early,... Read more →


Most taxpayers every year end up getting refunds. But some folks are at the opposite end of the tax spectrum. They owe Uncle Sam at filing time. And some of those owing taxpayers end up in an even worse situation. Their tax bills are large enough that they also face added penalty charges. This filing season, though, those penalty-paying taxpayers could get a break. Tax underpayment penalty calculations: A tax penalty assessment usually occurs when wage earners don't have enough income tax withheld from paychecks or, if they have other income not subject to withholding, don't pay enough (or any)... Read more →


We're almost 13 months into the largest tax reform measure enacted in more than 30 years and one thing is clear. The Tax Cuts and Jobs Act (TCJA) is in no way tax simplification. In fact, taxpayers and the professionals they pay to help make filing less taxing in every sense of the word have been struggling with just what Congress meant in way too many of the tax bill's hastily drafted provisions. Big business bill, with small biz break and confusion: Although the TCJA contains many changes that will make filing returns this year interesting for individual taxpayers, it... Read more →