IRS Feed

The official start of the 2021 tax filing season is less than two weeks away, but millions of taxpayers are still waiting on the resolution of the returns they filed last year. As of Christmas Day 2020, the Internal Revenue Service had 6.9 million individual tax returns in the processing pipeline, according to the latest update on the IRS' special web page where it's been tracking operations in this time of coronavirus. That's a lot of 1040s, but the IRS says in its Jan. 29 online entry that it has made "significant progress" in processing returns and is "now opening... Read more →


No, that money from the Internal Revenue Service that just showed up in your bank account or snail mail box is not another COVID-19 economic impact payment. It's the result of the IRS working through tax returns that were filed before a new tax law that excludes a chunk of unemployment benefits from taxation. This week, the IRS announced that another 1.5 million taxpayers will get these unemployment-income-related refunds. The IRS says the average refund going out now is $1,686. COVID relief for the out-of-work: This is the latest round of refunds made to comply with changes in the American... Read more →


You got your first Advance Child Tax Credit (AdvCTC) this month. The added $300 for each of your kiddos age 5 or younger or $250 per child if your youngsters are age 6 through 17 is nice. But your 2021 financial situation has changed, and you've done the math. The calculations show that this COVID-19 relief money, authorized by the American Rescue Plan Act and which the Internal Revenue Service is sending based on your 2020 tax year filing data, no longer applies. In fact, since you're making a bit more money this year, if you keep getting the AdvCTC... Read more →


One of the severe storms that hit Michigan on June 26. In the wake of a major disaster declaration, the IRS is giving some of the state's taxpayers until Nov. 1 to take care of tax tasks. (Photo by Ben Kessler via the National Weather Service) The 2021 Atlantic hurricane season got off to an early start. Since then, though, it's been a slow tropical season. Thank you, Saharan dust (and Deb Fox)! However, other major natural disasters have made up for it. So far in 21, there have been 14 instances of tax relief provided by the Internal Revenue... Read more →


Millions of filers are still working on 2020 tax returns, some due to extensions, others filing for the first time to get various COVID-19 economic impact payments. But time, tide and taxes wait for no man or woman. Or the Internal Revenue Service, which has revised the individual Form 1040 and its three schedules for the 2021 tax year. Form 1040: Aside from the usual year notations, there are some line number reference that have changed in connection with items that are transferred to the 2021 Form 1040 from the form's three schedules. That's no surprise since, as noted a... Read more →


Just about a month ago, the Internal Revenue Service reportedly had a backlog of more than 35 million individual and business returns that required manual processing. That was up from 29 million back in April. Last week, however, the IRS said it's essentially caught up with early season individual filings. Hey, don't shoot the messenger. That's the official word from the IRS, via its special IRS Operations During COVID-19: Mission-critical functions continue webpage. In a July 23 update to a portion of the What You Can Expect section of that site, the tax agency says it "is opening mail within... Read more →


It's no surprise that, after facing a ginormous backlog of paper tax forms that piled up when the Internal Revenue Service closed most of its campuses during the height of the COVID-19 pandemic last year, the agency is looking to force more electronic filings. Proposed regulations published in today's Federal Register add seven forms to the IRS list of returns that businesses must, once a certain filing threshold is reached, submit electronically. The move is made possible by a provision of the Taxpayer First Act (TFA), which became law in July 2019 and included a variety of changes designed to... Read more →


Everybody needs some help now and then. On Friday, July 23, and Saturday, July 24, the Internal Revenue Service is providing assistance to those in 16 metropolitan areas who need to file a 2020 tax return so they can get various COVID-19 relief payments. The first of six scheduled Advance Child Tax Credit (AdvCTC) payments hit bank accounts and U.S. Postal Service boxes last week. The bulk of these initial payments — the Internal Revenue Service says it sent out $15 billion to about 35 million families — were dispersed automatically. The recipients, who had previously filed returns or used... Read more →


Millions of parents are as happy as these youngsters, thanks to the first Advance Child Tax Credit payment that arrived this month. Others, however, are wondering why they got less. The first of six scheduled Advance Child Tax Credit payments have arrived, and for the most part, the recipients are elated. Paul Williams, an economist and writer, has collected many of the happy recorded (or recreated) reactions in an entertaining Twitter thread. Some folks, however, aren't so thrilled. In fact, they're wondering why they didn't get the full $300 per month for each dependent child younger than age 6 and... Read more →


TurboTax won't be a Free File option when the 2022 tax filing season arrives. Taxpayers who used TurboTax to complete and e-file their returns at the Internal Revenue Service's Free File website are going to have to find a new program in 2022. The popular tax software is leaving the Free File program next filing season. It will, however, remain on the IRS.gov site for use by taxpayers who got an extension until Oct. 15 to finish their 2020 returns. TurboTax is the second major tax software provider to leave the Free File Alliance, the nonprofit coalition of tax software... Read more →


The Internal Revenue Service and those who want Uncle Sam to go after tax evaders were elated when a bipartisan infrastructure bill included money for enhanced tax collection efforts. Proponents said the beefed-up proposal to close the Tax Gap could bring in an additional $100 billion over the next 10 years in owed but unpaid taxes. However, that funding option has been scuttled. "Well, one reason it's not part of the [infrastructure] proposal is that we did have [Republican] pushback," said Sen. Rob Portman (R-Ohio) during an appearance today on CNN's "State of the Union" program. But there's still hope... Read more →


Don't fall for scammers who falsely say they can help you get, or get more, of the enhanced Child Tax Credit amounts that started going out this week. Instead, get help from a tax pro or use the Internal Revenue Service's online tools. The Advance Child Tax Credit (AdvCTC) payments started showing up in bank accounts today. Folks who'll get the enhanced early credit amounts by snail mail should see those U.S. Treasury checks soon. The Internal Revenue Service says it delivered today the first batch of the early Child Tax Credit payments, worth roughly $15 billion, to around 35... Read more →


July has become a big month for the Internal Revenue Service. Last year, in the heart of the COVID-19 pandemic, July 15 was the delayed regular tax return filing deadline. This year, July 15 is the kickoff date for Advance Child Tax Credit payments and resumption of some IRS collection and enforcement efforts. This summer month also a welcome time for folks who early in 2021 filed tax returns reporting all their 2020 unemployment benefits. The IRS announced today that around 4 million of those taxpayers are about to get refunds for their tax overpayments. Where the IRS has taxpayers'... Read more →


July 15 is a big day for the Internal Revenue Service and taxpayers. Millions of families will start getting Advance Child Tax Credit payments this Thursday. It's also the day the IRS resumes additional collection and enforcement actions that, due to the COVID-19 pandemic, had been suspended. "The majority of compliance operations are already running normally after being suspended to provide pandemic-related relief during the People First Initiative April 1, 2020, through July 15, 2020," notes the IRS on a recent update to its mission critical functions web page. However, says the agency, it kept its systemic and automated lien... Read more →


Knowing whether a group is a tax-exempt organization is important, not just from Uncle Sam's revenue collection (or not) perspective, but also from a public standpoint. Donors who want to deduct charitable gifts need to know that the group to which they're giving is legit in the Internal Revenue Service's eyes. These public charities are referred to as 501(c)(3) organizations, getting their name from the section of the tax code that created them. However, there are several other tax-exempt classifications under Internal Revenue Code section 501(c). They are granted, for example, to groups that have charitable, educational, religious, or similar... Read more →


Your youngster might not have enjoyed the Fourth of July fireworks (I'm right there with you, kiddo, when it come to the noise!), but your son or daughter could make you eligible for Advance Child Tax Credit payments starting this month. Hello, July! Yeah, I know my welcome to the first full month of summer is a bit late. But admit it. You don't really focus on the month either until after July 4th. Since it's the midpoint of the tax year, July usually is a great time to look into some tax saving tasks (more on this a bit... Read more →


The Internal Revenue Service has wrapped up its 2021 version of the Dirty Dozen Tax Scams. In announcing the cons by category, the agency was able to elaborate more on each trick on the list. In case you missed the posts earlier this week, here are the ol' blog's posts on each of them: Pandemic related scams, aka Part 1, which focuses on attempts steal COVID-19 Economic Impact Payments (EIPs) and other tax-related coronavirus relief distributed by the IRS, from Monday, June 28; Personal information cons, or Part 2, with a look at phishing, its cousin voice phishing or vishing,... Read more →


We regular folks tend to have a complicated relationship with the wealthy. And by complicated, I mean one-sided, unrealistic, and too often reverential. Being aspirational, we love to gawk at what they can get away with because of their money, and dream of one day being in their Manolos and mansions. That's fueled way too many not-really reality shows. Such hopes also are a big reason scammers can convince wealthy wannabes to fall for schemes that peddle false hopes of large tax deductions. In real-life tax reality, these dodges simply are a way to push hopeful taxpayers further away from... Read more →


What's the result when the worst things happen? Too often, it's terrible people taking advantage of good people. This occurs with alarming regularity in the tax world following tragedies and disasters. Con artists use horrible events to convince compassionate individuals to donate to groups that will help out the victims. What really happens all too often is the caring donors become victims, too. Fake charities are just one type of scam in today's third installment of the IRS' Dirty Dozen for 2021. This category of tax ruses in which dishonest people trick others into doing something illegal often includes fraudulent... Read more →


The COVID-19 pandemic presented new opportunities for crooks, as noted in yesterday's post on the first group of 2021's Dirty Dozen Tax Scams. Today, however, we're back with the golden oldies, as in trying to steal your gold. And your identity. These Personal Information Cons use a variety of techniques that have been around for years. There's phishing, its cousin voice phishing or vishing, Internal Revenue Service impersonators, social media trolling and tricks, and ransomware. Regardless of which illegal method is used, the goal is the same. Criminals try to get as much of your personal information as possible, including... Read more →


It's Dirty Dozen Week at the Internal Revenue Service. That's right, a week of examining the 12 most common and/or worst tax scams that have cropped up over the last year. I've been blogging about the annual IRS scam list for as long as Don't Mess With Taxes has been around. Sadly, some of the scams that I noted in my first list post back in the spring of 2006 — phishing for taxpayer identity details, fake charities, unscrupulous tax preparers — tend to show up year after year. You can see the repeat offenders in the 2019 and 2020... Read more →