Helping hand photo by Lalesh Aldarwish via Pexels.com I'm a big fan of the Taxpayer Advocate Service. Part of that, as long-time readers know, is because I was fortunate enough to serve on the Taxpayer Advocacy Panel (TAP), a volunteer group created to help the Internal Revenue Service meet and improve on the promise of the final word in the agency's name. My years with TAP let me see how TAS and the IRS work to help solve taxpayer problems. And yes, the people committed to this process really do care and do all they can to help taxpayers within... Read more →
Taxpayer Advocacy
Photo via Unsplash+ in collaboration with Getty Images College football fans are in heaven. The 2023 NCAA bowl season is underway. The first of the 42 games kicked off this morning in with Georgia Southern meeting Ohio in the Myrtle Beach Bowl. The event's sponsoring name notwithstanding, the event is actually more inland, at Brooks Stadium in Conway, South Carolina. There are six more games today, all as appetizers to the main menu meal, the College Football Playoff National Championship Game in Houston on Monday, Jan. 8, 2024. The one downside this year is the number of notable players —... Read more →
Hunter Biden hugging his father Joe and stepmother Jill after the elder Biden was sworn in as President of the United States on Jan. 20, 2021. (Photo by Chairman of the Joint Chiefs of Staff via Wikimedia Commons) One of the 10 guarantees in the Internal Revenue Service's Taxpayer Bill of Rights is the right to privacy. Hunter Biden says the tax agency failed to follow its rule, and has filed a federal lawsuit against the IRS alleging that it illegally disclosed information about his taxes. The core of Biden's legal action is the public testimony of two IRS agents.... Read more →
Unsplash+ in collaboration with Getty Images The Internal Revenue Service Taxpayer Bill of Rights includes the right to challenge the tax agency's position and be heard when it comes to what it says you owe. But that's not always as easy as the official IRS stance might make it seem. True, the IRS has several alternative dispute resolution, or ADR, programs in place. These programs use an IRS mediator to resolve taxpayer-IRS differences, and may be faster and less costly than the often-lengthy traditional tax appeals process. GAO issues with IRS ADR options: However, a U.S. Government Accountability Office (GAO)... Read more →
Many businesses that stayed open during the height of the coronavirus pandemic were able to do so thanks to the Employee Retention Credit (ERC). Some companies, however, subsequently filed for the 2020-2021 tax benefit at the urging of unscrupulous ERC promoters, and now are finding the IRS is looking into their claims. The Internal Revenue Service earlier this summer warned businesses about Employee Retention Credit (ERC) promotions that could land the companies in tax trouble. The ERC was created in 2020 as part of the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act to help businesses and their... Read more →
Photo by Christa Dodoo on Unsplash The National Taxpayer Advocate has some good news for taxpayers and the Internal Revenue Service. But it's not great news. "The taxpayer experience vastly improved during the 2023 filing season," wrote National Taxpayer Advocate Erin M. Collins in her mid-year report to Congress issued today. The main reason for the improvement, she noted, was that the IRS caught up in its processing of paper 1040 forms. The tax agency also did a better job this year in dealing with various business returns, generally issued refunds quickly, and upgraded its phone assistance lines so that... Read more →
Photo by Tim Mossholder Once this year's April tax filing deadline passed, most Americans were done with their annual Internal Revenue Service interaction. Some taxpayers, however, are still dealing with other, non-filing federal tax issues. They might be able to get some in-person help resolving those tax matters from IRS staff at one the agency's Taxpayer Assistance Centers (TACs) across the country. Such help usually requires taxpayers to make a weekday appointment. But on May 13, the IRS' final walk-in Saturday of 2023 will mean that filers whose local TAC is open can come in, no appointment needed, for some... Read more →
Photo by Porapak Apichodilok The Internal Revenue Service on Saturday held its third of four walk-in days at its Taxpayer Assistance Centers across the country. The final one will be on May 13. These special no-appointment-needed weekend events are great for taxpayers living in the United States and Puerto Rico. But what if you're a U.S. taxpayer abroad? IRS service for international taxpayers that formerly was offered at foreign posts of duty is no longer available. Now if you're a U.S. taxpayer abroad with specific individual or business account questions, you must contact the International Taxpayer Service Call Center by... Read more →
The Treasury Department and Internal Revenue Service today released an extensive plan on how the tax agency will spend the nearly $80 billion in added funds it received in the Inflation Reduction Act (IRAct). New IRS Commissioner Daniel Werfel, in the introduction to the 150-page Strategic Operating Plan, said the plan is structured to achieve the following five objectives — Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible. Quickly resolve taxpayer issues when they arise. Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address... Read more →
Photo by Amina Filkins Lots of folks have taxes on their minds as Tax Day 2023 nears. It's April 18, in case you forgot. But some people aren't necessarily focusing on their 2022 returns. They're dealing with other worrisome tax matters. They might be able to get some help this Saturday. That day, the Internal Revenue Service is offering assistance to folks who have unresolved non-filing tax issues. Fifty IRS Taxpayer Assistance Centers (TACs) will be open on April 8 in 29 states and 2 U.S. territories. These facilities usually are open only on weekdays, and taxpayers must make appointments... Read more →
Photo by Tim Mossholder If you need some help with a tax that's NOT filing your annual return, Internal Revenue Service staff might be able to provide some in-person help this weekend. The second round of the agency's Saturday walk-in hours at certain Taxpayer Assistance Centers (TACs) nationwide will take place on March 11. IRS TACs normally are open on weekdays only, and taxpayers must make appointments to receive services. TAC help options: But during these special Saturday hours, walk-ins are welcome to get the help that the centers usually provide, except for making cash tax payments. If you need... Read more →
Photo by RODNAE Productions Last year, as the country started emerging from COVID-19 closures, the Internal Revenue Service joined the resocialization. It opened some of its Taxpayer Assistance Centers (TACs) across the country so individuals could get some face-to-face tax help, no appointments needed. That resumption of more-normal taxpayer interaction was such a success, the agency is doing it again this 2023 filing season. For one Saturday a month, beginning in February and continuing through May, TACs in 46 states, the District of Columbia, and Puerto Rico will be open on four upcoming Saturdays, from 9 a.m. to 4 p.m.... Read more →
The Earned Income Tax Credit, or EITC, is one of the most beneficial tax breaks for lower- and moderate-income workers. It's also one of the most under-claimed. The reasons are many, starting with its complexity. You have to work to be able to claim the EITC. But if you make too much money, you're ineligible. Your marital status comes in the calculation of the final credit, as does the size of your family. And many single people ignore the EITC because they think it's only available to filers with dependent children. "This is an extremely important tax credit that helps... Read more →
Photo by Pixabay The Internal Revenue Service is slowly but slowly becoming more electronic. The pace should pick up once the agency starts spending some of the new money it got this year to upgrade its operating systems. It's also looking for volunteers to offer suggestions on how the IRS can be a better e-agency. Specifically, the IRS is looking for applicants for the Electronic Tax Administration Advisory Committee (ETAAC). Ongoing electronic efforts: The ETAAC was established by Congress as part of 1998's IRS Restructuring and Reform Act. Its primary goal is to help the IRS meet that law's targets... Read more →
Image by Ag Ku from Pixabay There's some good news for taxpayers and the Internal Revenue Service as we near the new year and 2023 tax filing season. The IRS is making progress in working through its backlog of paper tax returns. In a Nov. 10 update on IRS Operations During COVID-19: Mission-Critical Functions Continue webpage, the agency reports that it is "opening mail within normal time frames," and has "processed all paper and electronic individual returns" that had no errors or didn't require further review "in the order received if they were received prior to April 2022." As of... Read more →
Photo by Nick Fewings on Unsplash One of the outcomes of an audit is that the Internal Revenue Service finds no reason to demand changes to a return. That's obviously a welcome result. None of us want to end up paying Uncle Sam more taxes, plus penalty and interest charges. But there's still is a cost. We've likely paid a tax professional to help us through the process. And as the old credit card ad says, our time is priceless. Some audits end up OK for filers: The generally good news, according to the Aug. 4 Kiplinger Tax Letter, is... Read more →
A constant and continual message from the Internal Revenue Service is that more of us should electronically file our returns. But, says the National Taxpayer Advocate, the agency isn't making e-filing easy enough. The Internal Revenue Service IRS offers more electronic amended filings, just day after Taxpayer Advocate says agency's e-filing options are lacking Among the many issues National Taxpayer Advocate Erin M. Collins cited in her latest report to Congress is limited e-filing options, for both annual returns and amended ones, The IRS answered that charge at least a little today, announcing that it has expanded e-filing options for... Read more →
TAP members grace the cover of the federal advisory panel's 2021 Annual Report. As the annual tax filing (and payment) deadline nears, complaints about the process increase. It's a natural reaction to the frustration of dealing with our complex tax code, especially these last three years that have been complicated by COVID-created deadline changes, delays, and new laws. Some folks, however, want to do more than grumble. They want to be a part of making the tax system better. They are the volunteer members of the Taxpayer Advocacy Panel, or TAP. And that group now has some new members. 2022... Read more →
Taxpayer Advocacy Panel members provide information on how to improve the IRS at the agency's annual Tax Forums. (Photo courtesy TAP News) That old saying about everybody talks about the weather, but nobody does anything about it applies to most things. If you substitute "complains" for "talks," then it definitely applies to taxes. But with taxes, unlike the weather, there is a possibility for change. Really. The Internal Revenue Service is looking for volunteers to serve on the Taxpayer Advocacy Panel (TAP). The TAP is a federal advisory committee whose members look for ways the IRS can improve services and... Read more →
The 2022 tax filing season officially begins on Monday, Jan. 24. Some people, however, are not convinced the Internal Revenue Service is ready. The concern isn't just about the millions of 2021 returns that will be flooding the IRS' system, but also the millions of returns the agency is still processing from the previous COVID-affected filing seasons. That backlog and continuing challenges prompted a coalition of tax practitioners and advocacy groups to write the IRS and Treasury Department, urging those leaders to "take steps to ameliorate the situation." Specifically, the representatives from 11 tax and public advocacy organizations want the... Read more →
There aren't any surprises in National Taxpayer Advocate Erin M. Collins' annual report to Congress on the 2021 filing season. Something else that's not surprising is that Collins warns that things aren't likely to get any better for taxpayers, tax pros, or the Internal Revenue Service this year. Unprecedented tax annus horribilis: "Calendar year 2021 was surely the most challenging year taxpayers and tax professionals have ever experienced," wrote Collins in the prologue of the required report issued today, Jan. 12. The problems included long processing and refund delays, difficulty reaching the IRS by phone, correspondence that went unprocessed for... Read more →