Tax preparers Feed

The law that created coronavirus stimulus payments just took effect yesterday and we're weeks at best from getting actual money. But tax planners have been thinking about COVID-19 tax intricacies since the illness exploded in the middle of this tax season. These payments just add a new tax filing wrinkle, since what we put on our 2019 returns could be a key part in the relief amount's ultimate dollar calculation. Tony Nitti, a CPA and tax partner with RubinBrown in Aspen, Colorado, has a good preview of what our tax filing actions now could mean to our potential coronavirus payments... Read more →


The Senate also addresses this year's tax filing and payment deadline, as well as those for 2020 estimated tax payments, in its coronavirus relief bill. Keep reading for more on this latest change and check out this Q&A for elaboration from the IRS on some specific tax considerations under the new mid-July deadlines. 2019 tax year returns and any due payments now will be due on July 15, 2020, according to a Treasury Department announcement this morning. And yes, I drew that sloppy circle and scribbled the info on my own calendar. I should have had a cup of coffee... Read more →


UPDATE, March 24, 2020: As the coronavirus spread across the United States, the Internal Revenue Service and many associated tax programs have been adversely impacted. Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites were among those affected, with most closing earlier this tax season. If COVID-19 conditions improve in some clinic areas before the new July 15 tax filing and payment deadline, some VITA and TCE operations may reopen. Meanwhile, some are offering phone help. Check with your local clinic (details on how to do that in the post below). Volunteer tax preparers help Florida... Read more →


Ah, March. The days get longer. The weather gets warmer. And we've got about six weeks before our tax returns are due. I know it feels like these 31 days of March is plenty of time to take care of all the tax tasks still on your to-do list this filing season. But it's easy to get distracted by the charms of early spring. To keep you at least partially on tax track, here are six March tax moves you can make. Most are easy, so you can soon be back to less taxing activities. 1. Contribute to your 2019... Read more →


Millions of taxpayers finally got their tax statements this week and promptly filed their returns. Millions more of us are still in the data gathering stage — Hey, it's not my fault! One of my 1099s still isn't here. — and will file soon. But all of us still are potential tax identity theft targets. Yes, even early filers. Crooks know these taxpayers generally are expecting refunds, so they tailor their deceptive approaches accordingly. Look out for IRS pretenders reaching out to you to say there's a problem with your filing. It can only be fixed, say these scammers who... Read more →


The shortest month of the year is a little longer in 2020. It's a Leap Year. What will we do with that extra day, Feb. 29? Of course, we're going to devote those additional 24 hours to our taxes. OK, maybe not. For many, this first full week of February is getting off to a slow part, thanks to the annual Super Bowl Sunday hangover. Others simply aren't ready to think taxes yet. It's not their fault. They, and that includes me, are still waiting for necessary tax-filing statements. And some eager and on-the-ball taxpayers don't want to think about... Read more →


What would you do with an extra $2,504? That's the average amount received by taxpayers who claimed the Earned Income Tax Credit (EITC) in 2019. Overall, the Internal Revenue Service says that across the country last year, 25 million taxpayers received more than $61 billion from this tax break for lower-and middle-income workers. Every tax year, however, folks who qualify for the Earned Income Tax Credit don't claim it. Many don't know about the tax break. Others don't realize that changes in their marital, parental or financial status means they now qualify. That's why for more than a decade, the... Read more →


Yes, I bought a ticket for the Jan. 29 Powerball. I always do when the jackpot of that and the other national lottery, Mega Millions, gets into the, well, mega million-dollar range. No, I didn't win. Again. Last night's Powerball payout, which had climbed to $396.9 million, is going to the lucky person who bought the winning ticket in Florida. Yes, I am contacting my Sunshine State friends and relatives! In addition to the one big winner, three other Powerball tickets worth $1 million each went to ticket holders in Ohio, Virginia and, again, Florida. If you're one of the... Read more →


Yes, that's a photo of my filing season mess, er, process, which explains why I never seem to be able to submit our joint Form 1040 early in the filing season. Getting your tax stuff together is just one of the reasons to not file early. The Internal Revenue Service will start accepting 2019 tax year returns next Monday, Jan. 27. A lot of folks already have filled out their 1040s and put them in the queue for IRS processing next week. Good for them. Their annual tax task is done. But there also are some reasons why you might... Read more →


IRS building by David Boeke via Flickr CC A lot of former Internal Revenue Service employees take the lessons they learned on that job and create second careers as tax advisers and preparers. That's a nice professional segue. Going from being part of the U.S. tax collection machine to helping folks pay Uncle Sam as little as legally possible. But it needs to be done after IRS employees leave their government job. One current IRS staffer in the agency's Andover, Massachusetts, service center was, to borrow a tax term, double dipping. Worse, federal prosecutors say she filed almost 600 false... Read more →


Taxpayers got their first experience with new filing forms with last year's 2018 returns. There are more changes to the 1040 for 2019 taxes, too, but the revisions actually could be helpful. Tax season is about to start in a less than two weeks. Jan. 27, in case you forgot. Many of us are already working on our 2019 returns, either by working with a tax preparer or filling out our forms on our own. Doing taxes has never been a fun job for most folks. But filing under the Tax Cuts and Jobs Act (TCJA) has made that job... Read more →


The 2020 filing season starts on Jan. 27 and millions of taxpayers already are ready to send their 1040s to the Internal Revenue Service on that day. Most of these folks are expecting refunds. But that's just one reason to file your taxes early. Here are six reasons to finish up your Form 1040 and get it to the IRS ASAP. 1. To get your refund sooner. Yes, a tax refund is always the top reason to file your taxes as early as you can. I could go on (and on and on) about how it's better to adjust your... Read more →


The individual tax filing season doesn't officially open until Jan. 27, but you're ready to file your taxes. Or are you? Tax filing, whether you do it yourself via tax software that you buy, use online or access via Free File or hand off the annual task to a tax pro, requires its own specific preparation. You've got to have all your tax-related documentation before you can start filling out that Form 1040. Here's a checklist of forms and documents you'll need to complete your taxes, as well as a look at tax situations you need to consider before filing.... Read more →


The tax world is atwitter, literally on social media and figuratively for those not addicted to the sociability component of their electronic devices, now that the Internal Revenue Service is already accepting business tax returns and will start taking 2019 tax year 1040 forms from individuals on Jan. 27. Everyone, from taxpayers to income payers to tax professionals are already at work, with most at this point gathering data in preparation for the actual filings. For tax professionals, that includes a written security plan to safeguard all the sensitive tax and financial information they handle for their clients. Tax data... Read more →


Click image for a large, clearer view. Ready to do your 2019 taxes? The Internal Revenue Service says it will be on Jan. 7. Yep, that's tomorrow. But whoa up there, cowpokes. This starting date is just for IRS acceptance of business returns. On the Modernized e-File (MeF) Operational Status page noting the Jan. 7 starting date for business returns, the IRS also says, "Individual tax returns will begin at a date to be determined in early 2020." Still, it's a good sign that Uncle Sam's tax collector is looking at any return processing date in early January. Business returns... Read more →


December is, for the most part, a festive month. The holidays and all that accompanies them, from songs to movies to the joy of youngsters and young at heart, bring out the best in most of us. But things aren't quite so bright and jolly for everyone. Despite an economic recovery that's lifted people out of poverty in most areas of the country, poverty increased in at least one county in every state between 2016 and 2018. The poverty rate — defined as the percentage of people in households earning less than the current $25,750 threshold for a family of... Read more →


Sharyn M. Fisk has been selected to take the helm of the Internal Revenue Service office that makes sure those folks who practice before the agency do so in a legal, professional and professionally ethical way. Fisk, a professor of tax at the College of Business Administration at Cal Poly Pomona, will assume leadership of the IRS Office of Professional Responsibility (OPR) in early 2020. OPR oversees all tax practitioners, tax preparers and other third parties in the tax system who practice before the IRS. The office ensures these tax pros adhere to professional standards and follow the law. The... Read more →


The IRS plans to take closer and continuous looks at individuals who want to join its programs. We are living in a digital world. That's why the Internal Revenue Service, which itself has been encouraging, and in some cases, forcing us to go online when it comes to our tax tasks. Such increased cyber interactions obviously have some downsides. Chief among them is the opportunity for hackers to take over our identities, tax and otherwise. That's why the IRS and its Security Summit partners are participating in the 4th Annual National Tax Security Awareness Week. It included an IRS-moderated #TaxSecurityChat... Read more →


Welcome to Part 9 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at how much tax penalties could cost you or your tax preparer next year. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021. For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. IRS agents don't throw flags like football referees, but the tax agency isn't afraid to blow the whistle... Read more →


These ghostly trick-or-treating dogs are more cuddly than scary. But ghost tax preparers can be terrifying. Don't let one haunt you. There's one thing that scares the Internal Revenue Service and taxpayers alike. Tax scams. One such ploy that popped up during the summer is making rounds again this Halloween season in a new, shall we say, costume. It's the one where the calling crook pretends to be from the Social Security Administration. "In the latest twist on a scam related to Social Security numbers, scammers claim to be able to suspend or cancel the victim's SSN. It's yet another... Read more →