Don't Mess With Taxes

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 →

If a new piece of legislation is enacted, these two youngsters might bring their classroom enthusiasm to the accounting profession. Tax professionals have been unsung heroes for the last two tax filing seasons. They've dealt with complicated and often last-minute tax law changes created to deal with the COVID-19 pandemic's economic problems. Not only did they have to decipher and apply the changes, tax pros had to explain them to their clients and, in many cases, hand hold taxpayers through the process more than usual. Plus, this all happened as tax deadlines were upended by the coronavirus and multiple major... Read more →

Crayons aren't just for kids any more. Adult coloring books abound, including one created just for accountants. With Tax Day 2017 just days away, perhaps no one is feeling the pressure more than tax professionals. Tax preparers, for the second consecutive filing season, are dealing not only with the regular rush of taxes, but also with new COVID-19 pandemic prompted laws. Multiply that by how many clients they have, add what's happening in their (and their clients') lives, and the solution equals, among other things, stress that's off the charts. Helpful timeouts: While it might seem counter intuitive to those... Read more →

One of the many reasons that people hate taxes is that after the hassle of filing, then comes the fear that a Form 1040 mistake will mean an audit. The sort-of good news for taxpayers is that the Internal Revenue Service hasn't been auditing as many people in recent years. The agency has had other things to worry about, like doing its myriad jobs with fewer staff and less money. Then there's COVID-19, with added pandemic payments that the IRS is tasked with distributing. Things could be changing, though. More people are getting vaccinated, meaning the end of the coronavirus... Read more →

Rather than heavy equipment, the IRS needs legislative and fiscal help to close its $1 trillion Tax Gap. If you've thought the $441 million figure that the Internal Revenue Service has for years cited as the Tax Gap is too low, you are not alone. None other than the IRS commissioner agrees that there is more tax money that's owed than the agency has been able to collect. A whole lot more. At an April 13 hearing before the Senate Finance Committee, IRS Commissioner Charles Rettig estimated that the actual Tax Gap could be as much as $1 trillion. That's... 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 →

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 →

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. 10, 2023: The two national lottery jackpots are huge. The next Powerball drawing on Wednesday, Jan. 11, will be at least $360 million ($188.7 million lump sum). Mega Millions is now mega billion-plus. The drawing Tuesday, Jan. 10 (that's tonight!) will pay out more than $1.1 billion ($568.7 million cash) to a single winner. If your numbers do come up, congratulations! After you recover from the shock and elation, check out these tips to help you cope with being a sudden millionaire. Picking lucky numbers from a lottery game dispenser. Benjamin Franklin wasn't wrong, but he was pre-national... 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 →