Tax preparers Feed

The tax filing season clock is ticking, but will the alarm go off on April 15 as usual? That's the IRS plan for now, but some in Congress and the tax community would like Uncle Sam to extend the 2021 Tax Day deadline like happened last year. The Internal Revenue Service is insistent that despite a later than normal opening of the 2021 tax filing season, it will end as usual on April 15. Some lawmakers and members of the tax community, however, think this filing season needs to follow the 2020 example and be extended beyond the usual mid-April... Read more →


This year's annual federal tax return filing deadline has been moved from April 15 to May 17. Yep, for the second consecutive year, our 1040 forms won't have to be in or on their way to Uncle Sam's tax collector until after the traditional deadline. And yes, COVID-19 is the reason, largely because of tax law changes and backlogs related to the pandemic. But many of those who had urged an automatic delay for Tax Day 2021 are not impressed by the IRS action. Sure, we now have a bit more time to file our personal returns, but little more.... Read more →


The Internal Revenue Service is still working its way through millions of pieces of correspondence delivered last year, so the last thing it needs is more. But it's getting it. Federal lawmakers and organizations representing members of the tax community have mailed letters over the last week to the U.S. Treasury and IRS urging the delay this year of April's usual Tax Day. April 15 is still THE day: Tax returns so far are still due on April 15, the traditional filing deadline. And the IRS Commissioner Charles Rettig is holding to that date. For now. During a March 3... Read more →


Just can't bring yourself to do your taxes? Don't worry. There's no rush (yet). And there are some good reasons to wait a bit before finishing your Form 1040. The 2021 tax filing season is finally underway. The Internal Revenue Service started processing returns on Friday, Feb. 12. A lot of the 1040 forms actually had been submitted electronically weeks earlier, and were just waiting for Uncle Sam to accept them. This is not unusual. Millions of taxpayers file as early as possible, with good reason, every year. But there's something to said for those of us who wait. Here... Read more →


Tax Season 2021 is finally here! The Internal Revenue Service has started accepting tax returns and, more importantly, is now processing the filings as of today, Friday, Feb. 12. Millions have already filed. Most of them used tax software, either on their own or through the Free File program, which the IRS and its tax prep partners opened up a month ago. Those 1040 forms have been on hold. Now they've been transmitted to the IRS. Others, however, still have some work to do. We're waiting for some tax statements to straggle in, either to our snail mail or email... Read more →


Tax preparers nationwide already are working on clients' returns. Crooks also are working to steal info on and from those tax professionals. The Internal Revenue Service won't start accepting and processing 2020 tax returns until Feb. 12. Tax professionals, however, have been working of their clients returns since the new year arrived. That means tax criminals also doing their so-called jobs. The Internal Revenue Service, state tax agencies and tax industry today announced that there's a new scam email being sent to tax professionals. The phishing message impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs). While... Read more →


This might be a first. The Internal Revenue Service essentially is going to be every taxpayers' valentine this year. No, it's not because we love paying our taxes or the agency that collects them so much. It's because the IRS officially starts accepting and processing our 2020 tax returns on the Friday before St. Valentine's Weekend. That means many of us will be consumed by the Internal Revenue Code as we work to complete our 1040 forms and get them to the IRS ASAP. For many, the target date is the Feb. 12 official opening of this tax season. So... Read more →


The Earned Income Tax Credit (EITC) is the federal government's largest refundable federal income tax credit for low- to moderate-income workers. In 2020, more than 25 million taxpayers received over $62 billion in EITC. The average EITC amount received last year was $2,461 per return. The EITC also is regularly overlooked. The Internal Revenue Service estimates that one of five eligible taxpayers do not claim the credit. That oversight could change this filing season. The COVID-19 pandemic pushed millions of American workers into lower income brackets last year as their work was reduced. That could make them eligible for this... Read more →


Photo by Kay Bell The 2021 filing season won't start until Feb. 12 this year. That's frustrating for the millions of taxpayers who traditionally are early return filers. It's more frustrating for those taxpayers who, because of COVID-19 complications (which also created this year's filing delay), are really counting on their tax refunds to cover expenses. This year's later than usual filing start means it is even more important to get those 1040 forms into the Internal Revenue Service as soon as the agency will take them. If you're still debating about when to file your taxes, here are seven... Read more →


UPDATE, Jan. 21, 2021: Congratulations to the owner of the $730.1 million winning Powerball ticket purchased in Western, Maryland. But there's still a chance for all us dreamers. The next Mega Millions jackpot on Friday, Jan. 22, will be at least $970 million — which would be the United States' third-largest lottery jackpot ever. Picking lucky numbers from a lottery game dispenser. More than $1 billion is up for grabs in the two nationwide lotteries. The Powerball jackpot is at $550 million. A solo Mega Millions winner will walk away with $600 million. Since I know you've got your lotteries... Read more →


Photo by Olya Kobruseva via Pexels Happy New Year! Oh, sorry. Was I typing too loud? I'm glad you were able to festively, and I hope safely, ring in 2021. Now that it's here, it also brings a new tax filing season. The Internal Revenue Service's delivery of the second round of COVID-19 relief money shouldn't hamper its handling of 2020 returns, which should officially start later this month. So if the IRS can be ready, so can we. So here are a few tax things to think about and take care of, after, of course, you're fully recovered from... Read more →


Santa Claus, Indiana, is one of many merrily named communities across the country. However, this Christmas-year-round town is the only one with an official U.S. Postal Service Santa postmark. (Photo by tengrrl via Flickr CC) Ho! Ho! Ho! And Merry Christmas Eve from all the holiday themed towns across the United States. There are the municipalities dubbed North Pole in New York, Colorado, Alaska and yes, it's even OK in Oklahoma. For those who revel in the season's greenery we have up the road from me Garland, Texas, as well as virtual forest full of Evergreens. There's an Evergreen in... Read more →


OK, I can't confirm that the Greek dramatist Sophocles said this. But it's on the internet, so…. What is irrefutable is that bad advice is too often given and worse followed, especially when it comes to taxes. (Image by Quote Coyote) That cheering you hear is, well, everyone as 2020 finally is winding down. This mess of a year can't end too soon for most of us. But in our enthusiastic anticipation of the Year of COVID-19, we still must get ready for the upcoming tax season. At the start of the month, I offered some year-end tax moves that... Read more →


We need to follow Santa Claus' example this month. Just as he checks his naughty or nice list, we need to check on tax moves to make by Dec. 31. It's December. 2020 and its craziness is almost over! Are you ready? Specifically, are you ready for the holidays? For those of us still committed to pandemic precautions, it's going to be a different, and yes, a bit less jolly, season. But one thing is the same as in previous Decembers. We still need to make some tax moves before Jan. 1. Some December tax moves will demand a little... Read more →


A VITA volunteer talks with a taxpayer. Check out the IRS' video on VITA and TCE programs for more on them and how you can participate. Every November, millions of Americans take time around Thanksgiving to acknowledge all the things in their lives for which they are grateful. This year, the coronavirus pandemic is affecting not only how we celebrate Turkey Day, but our assessments of our blessings. It's also reshaped how many of us look at ways we can share our good fortunes. One option is donating to charitable groups that can help out those who have fewer thanks... Read more →


Welcome to Part 9 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at taxpayer penalties for filing (and paying) late, assessments on tax pros and how unpaid taxes could limit international travel. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that... Read more →


The coronavirus has affected the U.S. Tax Court again. Last week, the federal court that presides over taxpayer disputes with the Internal Revenue Service announced that it was going back to mail and other deliveries only. "Effective Friday, October 30, 2020, and until further notice, the United States Tax Court will be suspending its in-person acceptance of hand-delivered documents," according to a press release by the court. Timely mailings only: The announcement noted that in addition to the "timely mailing" of petitions or notices to "comply with statutory deadlines … of appeal," the Tax Court's eAccess and eFiling systems remain... Read more →


There's been one positive for the Internal Revenue Service this coronavirus-affected tax filing season. The agency says that Free File has hit a record percentage increase in new users. And there's still just more than a week before the partnership between the IRS and tax software manufacturers shuts down on Oct. 16. Free, but previously not that popular: The online tax preparation and e-filing products that, as the Free File moniker indicates, allows eligible filers to complete and electronically transmit their tax returns at no cost, has been available since 2003. However, despite the growing popularity of do-it-yourself tax filing... Read more →


Taxpayers and their tax pros have faced many and new hassles this filing season, primarily because of COVID-19 challenges. Do any of these 2020 tax season situations qualify as an acceptable reason to waive associated filing penalties? Maybe. Technology, and especially tax tech, is great. Until it isn't. That was my reaction when I learned that a lot of tax professionals were left in the lurch yesterday when their tax software provider's e-file system crashed just as they were submitting — or trying to — businesses clients' tax returns that were due Sept. 15. The issue, as you can imagine,... Read more →


Man signing papers (Photo by Andrea Piacquadio via Pexels.com) The Internal Revenue Service continues to go more digital, at least temporarily to make filings easier as we continue to deal with the effects of the coronavirus pandemic. Late last month, the IRS announced 10 forms that previously had to be signed in ink on their printed paper version. You can read about this first group of forms to be granted digital signature status in my Aug. 28 post. On Sept. 10, the tax agency added another six forms to the digital signer list. They are: Form 706, U.S. Estate (and... Read more →


COVID-19 has forced taxpayers and their hired preparers to maintain social distance during return completion this year. Electronic tax processes have helped, but some forms require real signatures, meaning in-person contact. Until now. The IRS is temporarily accepting electronic signatures on certain documents that still must be snail mailed. Photo by Andrea Piacquadio via Pexels.com Some, including me and many in the tax professional community, have long argued that the Internal Revenue Service has been its own worst enemy when it comes to moving the agency into electronic era. Sure, Uncle Sam's tax collector has been encouraging, and in some... Read more →