Most years, once we’re past Tax Day, the Internal Revenue Service’s work continues quietly, behind the scenes. Not now. Last week the IRS got yet another interim commissioner. Michael Faulkender, who had been serving as deputy to Treasury Secretary Scott Bessent, is the agency’s latest acting leader. Faulkender is the fifth person to take the IRS reins after former commissioner Danny Werfel resigned in January. Faulkender became the third acting leader of the agency in just a week. The latest quick personnel rotation at the IRS — equivalent to 0.36 Scaramuccis — and that it happened during the week that... Read more →
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Spoiler: Tax cheating is not going away, and likely will increase thanks to recent Trump administration/DOGE actions. Roman portraiture fresco of a young man with a papyrus scroll, from Herculaneum, 1st century AD (Image by Olivierw/own work, Public Domain/Wikimedia) Tax cheating is a big topic every filing season. This year it got added attention. Many in the tax world are worried that cuts to the Internal Revenue Service by the Department of Government Efficiency (DOGE), championed by the Trump administration, will hamper the agency’s ability to effectively enforce tax laws. But tax cheating is not new. It’s been around as... Read more →
Two proposals by Sen. Joni Ernst focus on Internal Revenue Service employees who haven't paid their taxes. A third looks to remove the tax agency's weapons. Iowa’s junior senator, Republican Sen. Joni Ernst, speaking to her Senate colleagues last month in defense of Department of Government Efficiency (DOGE) actions. (Photo: Office of Joni Ernst) While millions of taxpayers were finishing up their tax returns on April 15, Sen. Joni Ernst was introducing legislation she says is necessary to find millions of Internal Revenue Service employees who don’t pay their taxes. The Iowa Republican’s Audit the IRS Act would require the... Read more →
Emergency workers doing flood salvage. (Photo: FEMA) Millions of taxpayers across the United States on this Tax Day 2025 are finishing up their returns or filing for an extension. But some, including U.S. taxpayers abroad and who live or have businesses in major disaster areas, get more time. That list of delayed filings for disaster victims grew this week. The Internal Revenue Service announced that all taxpayers in Arkansas and Tennessee who were affected by severe storms and accompanying winds, tornadoes, and flooding that began on April 2, and who have not yet filed now can wait until Nov. 3... Read more →
The April 15 federal income tax filing deadline is Tuesday. For most folks, that’s the only thing they have to worry about on that day. But there are some of us for whom Tax Day means more tax tasks. Here are nine instances — yes, that includes the regular annual filing of tax returns — where some people might need to take additional tax action on April 15. Most of these tax-related moves will ensure you fulfill your tax duties and avoid any additional contact with the Internal Revenue Service. But some also could save you some tax dollars. File... Read more →
Photo by Andrey Grushnikov The tax deadline countdown clock is ticking away (literally, there over in the ol’ blog’s right column). With just days to file your Form 1040 slipping away, many of us will determine the best move is to file for an extension. You can do that by Tax Day, April 15, too. Just send the Internal Revenue Service Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. But some taxpayers get a bit more time to ask for more filing time. Already extended disaster area taxpayers: As noted in my Tax... Read more →
April 15 is double Tax Day for those of us who must pay estimated taxes. It’s the end of the prior tax year, with returns (and payment) due for those earnings. It’s also the start of tax filing (and paying) for this year. The payment for money made, but not subject to withholding, in the first quarter of 2026 is due on April 15. Extra payments for certain income: The U.S. tax system is pay as earn. For the most part, that's taken care via tax withholding from employees’ paychecks. But even if you have a job where income (federal... Read more →
Updated Monday, April 14, 2025: All taxpayers in Tennessee and Arkansas now now have until Nov. 3, 2025, to file their tax returns. The Internal Revenue Service announced this latest major disaster related tax relief in connection with disastrous weather in those states that began on April 2, 2025. The Volunteer State was hit by severe storms, straight-line winds, tornadoes, and flooding. The Natural State was struck by severe storms, tornadoes, and flooding. U.S. service members posted abroad, as well as civilian taxpayers living and working overseas, don't have to file their tax returns in April. Neither do taxpayers in... Read more →
Hanging on for more time to file your taxes? Get more by filing Form 4868. (Harold Lloyd in 1923 film Safety Last!) Tax returns are due in just over a week. A lot of taxpayers, however, don’t seem in that big of a hurry. Last year, more than 163 million taxpayers filed returns. With the 2025 filing deadline looming, the Internal Revenue Service reports that has received just more than 89.5 million returns. Sure, millions will get their 1040 forms filled out and to the IRS by Tuesday, April 15. But based on past filing numbers, a sizeable group won't.... Read more →
Has your tax filing frustration got you thinking about getting, shall we say, creative when you fill in your return? Don't. Even with the current chaos, the Internal Revenue Service still has ways to track down tax cheats. (Photo by Nataliya Vaitkevich) Tax Day is almost here, and millions of Americans are working on their 1040s. Generally, late filers tend to owe taxes. They want to put off the inevitable for as long as possible. Some of these still-to-file owing taxpayers are still searching for ways to trim this year’s tax bill. There are a few options available, such as... Read more →
Photo by Ahsanjaya Have you been putting off filing your return because you’re having trouble coming up with the money to cover your tax bill? You might want to check out the Internal Revenue Service’s extended payment options File, even if you can’t pay: First things first. Even if you can’t pay all or even any of what you owe, file a tax return. That will at least prevent the penalty for not-filing. Yes, the nonfiling penalty is a separate one from the nonpayment penalty. And the assessments for not sending in a return are actually are stiffer than those... Read more →
This month, we hit the five-year mark since the COVID-19 global pandemic was declared. Here in the United States, the medical situation has stabilized or gotten better in most states. Internal Revenue Service law enforcement agents, however, are still dealing with the coronavirus’ tax aftermath. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help Americans cope with the pandemic’s economic impact. Donald J. Trump signed the $2.2 trillion economic stimulus bill into law on March 27, 2020. The CARES Act was known primarily for the first round of cash payments sent to individuals and families during... Read more →
The Republican and Democratic leaders of the Senate Finance Committee want to end, or at least reduce, taxpayer reactions like the one above. The bipartisan pair wants your comments on their proposed Taxpayer Assistance and Service Act by the end of March. The Internal Revenue Service and Taxpayer Advocate Service (TAS) are both dealing with outside forces this filing season. The IRS continues to be in Department of Government Efficiency (DOGE) crosshairs. Meanwhile, the Trump administration wants to cut more than 20 percent of the staff at TAS, an independent component of the tax agency that was created to help... Read more →
Photo by Polina Tankilevitch Special needs individuals and those who work with them are understandable concerned about many of the changes being made or proposed by the Trump administration and its Department of Government Efficiency (DOGE) henchmen partners. But the Internal Revenue Service, even though it is dealing with its own DOGE issues, is reminding people with disabilities of how an Achieving a Better Life Experience, or ABLE, account can help. The accounts were created in 2014 by the eponymous Achieving a Better Life Experience (ABLE) Act, a federal law that allows states to create tax-advantaged savings programs for eligible... Read more →
Photo by Philipp Deus Every taxpayer and tax circumstance is unique. However, there are some things that trigger trained Internal Revenue Service examiners. As you’re finishing up your 2024 tax return, take another look to see if any of the 10 situations items show up on your Form 1040. They don’t guarantee that your return will be pulled for further attention and possibly a full-blown audit. But they could cause the IRS to conduct a correspondence audit, which is sending you a notice asking for clarification about a questionable item on your return. 1. You have income other than basic... Read more →
Photo by Ksenia Chernaya While Department of Government Efficiency (DOGE) personnel are looking for Social Security benefits they believe were fraudulently sent to very old, probably deceased individuals, Uncle Sam’s official tax watchdog has a different take. The Treasury Inspector General for Tax Administration (TIGTA) recently examined situations where Uncle Sam owes taxpayers who passed away. TIGTA found, in its report 2025-IE-R12 issued March 12, that “Improvements Are Required to Promptly Validate and Issue Manual Refunds Associated With Deceased Taxpayers.” Overall, TIGTA’s analysis found that in the more than 440,000 final filings it reviewed, survivors were owed a total of... Read more →
Some victims report losing more than $10,000 to more sophisticated tax cons. Photo by Nataliya Vaitkevich With Tax Day less than a month away, taxpayers are getting busy. So are the scammers who are hoping that they can intercept some of the money or personal data that filers meant to send to the Internal Revenue Service. Such deceptive activity isn’t anything new. What is different this tax season is that tax crooks are taking advantage of artificial intelligence (AI) to create even more convincing schemes. AI upping tax scammers' games: Sure, some tax crooks on a budget still send out... Read more →
Department of Government Efficiency and Congressional efforts appear to be putting a stop signal for many of the IRS' goals. (Photo by Kari Bluff Nesler via Flickr) The Department of Government Efficiency (DOGE), the quasi-governmental group created by billionaire Elon Musk, contends it has so far found $100 billion in fraud and waste across multiple federal agencies. Even if that’s true, which scrutiny from other organizations questions, the way DOGE, with the White House's approval, is slashing Uncle Sam’s operations could end up costing more than the purported savings. “Just one move — the plan to shrink the Internal Revenue... Read more →
Major flooding in Hazard, Kentucky, in February led to Perry County being declared a major disaster area. It’s just one of the counties in the Bluegrass State where residents are now eligible for tax relief. You can watch the video from which the screenshot above was taken at Live Storms Media's YouTube channel. We’re just more than a month away from the April 15 filing deadline, but some taxpayers will have until Nov. 3 to finish their 2024 returns. They live in areas of Kentucky and West Virginia that were pummeled in mid-February by a severe winter storm that move... Read more →
Collecting a refund is one of the reasons cited in my post on why you might want to file a tax return even if you aren’t legally required to do so. It always generates a lot of comments, with people baffled as to why someone would just let Uncle Sam hang onto their tax refund. There are some reasons people don’t file their taxes even when it to their benefit, some better than others. More on this later. But regardless of why, every year the Internal Revenue Service reminds a portion of these nonfilers that if they don’t act soon,... Read more →