Multiply this computer trouble by 150 million taxpayers and you'll get an idea of the scope of the IRS' new plan to upgrade its technology systems. The Internal Revenue Service made it relatively unscathed through the 2019 main tax filing season. That's pretty amazing when you consider the agency: had sworn in a new commissioner just a few months earlier, had to tailor the season's opening around the longest-ever federal government shutdown, was still working on implementation of and guidance for the first major tax reform bill in more than 30 years and did it all using antiquated computer systems.... Read more →
Web/Tech
One of my favorite recent TV shows was The Americans, FX's series on embedded Russian spies during the 1980s Cold War. For six seasons, we fans watched the couple known to their suburban Washington, D.C. neighbors as Phillip and Elizabeth Jennings raise their two U.S.-born children, run their small travel agency and spy, sometimes in deadly fashion, for their native U.S.S.R. One of the underlying themes was how well and easily the Jennings assimilated into the America they were trying to bring down. It's a common trope, but one done well and with nuance by the television program. A radio... Read more →
Electronic gadgets are on a lot of Dear Santa lists. If you're planning to play the Jolly Old Elf and get a family member or friend a phone, tablet, speaker or TV that depends mobile reception, also might want to slip a few extra bucks into the gift recipient's stocking. They'll need it to cover the taxes, fees and governmental surcharges on wireless services that have increased dramatically. Wireless service costs drop, but taxes increase: A typical American household with four wireless phones paying $100 per month for taxable wireless service can expect to pay about $229 per year in... Read more →
Are you an Instagram fan? I have an account, but it's not my go-to social media platform. That's not too surprising since, according to various data, I'm not part of the app's primary demographic. The digital marketing firm Omnicore says 59 percent of internet users between the ages of 18 and 29 use Instagram. The Internal Revenue Service has found other research that shows an even larger slice of young Instagrammers. The tax agency says more than 70 percent of U.S. young adults age 18 to 24 are active on the photo and video sharing app. And since young people... Read more →
Did you get all your shopping done on Cyber Monday? A lot of us did. Adobe, which tracks the multitude of transactions among major U.S. retailers, projects that online sales this Cyber Monday will be $7.8 billion. That's an 18.3 percent increase from the $6.6 billion spent last year on the Monday after Thanksgiving. If that figure is reached (or bettered), it would make Cyber Monday the highest-selling day of the 2018 holiday season. Those sales amounts seem to support the argument made by online sales tax advocates that the levies wouldn't materially deter cyber shoppers. Court opens door for... Read more →
The post-Thanksgiving shopping ad inserts, stacked at left, consumed more newsprint than my local newspaper in which they were stuffed! Welcome to the first holiday shopping season after the U.S. Supreme Court's Wayfair decision. That ruling last June OK'ed states' efforts to collect sales tax from companies even if they don't have a physical presence, aka nexus, in the locales. Some states were champing at the bit and quickly enacted or tweaked laws mandating at least some sellers, generally those of larger size, start collecting from their customers and sending the tax cash to the appropriate offices. Others are being... Read more →
It's International Podcast Day! Why are you reading (although thank you for stopping by)? You should be listening. That's why on this day celebrating the internet's audio offerings, this Shout Out Saturday goes to seven of my favorite financial podcasts. 1. Money Girl Laura Adams is the Money Girl of the title, offering her self-described "quick and dirty tips for a richer life." This one caught my ear because Adams' typically short and sweet 'casts often include comments about my favorite financial subject, taxes. Even better, her tips typically are pretty actionable, so as soon as you're through listening, you... Read more →
Marvel's reluctant superhero Jessica Jones, portrayed by Kristyn Ritter on the eponymous Netflix series, is back this month in The Defenders. She's why I subscribe. But will I, and millions of others, keep watching if streaming services are taxed? It's the weekend, so that means binge watching. Especially with The Defenders — gotta get me some more Jessica Jones! — now out on Netflix. I'm not alone in subscribing to a streaming service or two. It's a relatively cheap entertainment option, especially when you consider that the 10 or so bucks a month are still less than one night's price... Read more →
The Internal Revenue Service has expanded its digital options, offering email notification for some e-paying taxpayers and web video conferencing for appealing tax disputes. You have IRS email: Yes, this time that email really could be from the IRS. But only in certain circumstances. The IRS announced its new email notification for folks who pay via Direct Pay and Electronic Federal Tax Payment System (EFTPS) in, what else, an email. The July 21 electronic message to tax professionals let them know that their clients who use those two payment options can sign up to get notifications about those payments in... Read more →
Happy World Emoji Day! It's held on July 17 each year as a way to promote the use of emojis — like we need to do that! — and, according to Emojipedia (really!), spread the enjoyment that the colorful icons bring. The enjoyment goal got me thinking of how emojis might make one of our worst tax tasks more pleasant. I'm talking, of course, about our annual filing of returns. Most of us already use tax software. Surely it wouldn't be that difficult to incorporate the option of adding emojis to the lines we fill electronically complete. Dressing up your... Read more →
Lots of taxpayers today, June 15, are making their second estimated tax payment electronically. That makes the Internal Revenue Service very happy, as it works to get the majority of taxpayers dealing with tax matters online. Ultimately, the IRS is looking to fully implement its Future State with its mostly electronic tax transactions. To that increasingly electronic end, the IRS this week announced expansions to its online taxpayer account tool. This e-option debuted last December and lets taxpayers have online access to their IRS accounts. Expanded account options: Initially, the Taxpayer Online Account online tool let those who registered for... Read more →
The Internal Revenue Service is continuing its Future State efforts to get more of us digitally involved with our taxes. The latest move is a new an online way to check on our tax balances. Essentially, each of us has a taxpayer account with the IRS based on our filings. The online access option introduced last week lets us view our tax account balances, including what we owe in tax and any added penalties and interest. The IRS is hoping that when we digitally discover that we owe Uncle Sam some money, we'll then take advantage of the agency's various... Read more →
Computer users, which nowadays means almost everyone, used to be told to follow the X-file's advice when it came to cyber security: Trust No One. IRS is moving to two-step authentication for more of its online services beginning in late October. That's still true, but unfortunately, it's not enough. Crooks cracking everyone's computer codes: Nowadays, as First Lady Michelle Obama, Democratic White House hopeful Hillary Clinton and millions of Yahoo email account owners know, in today's increasingly hackable electronic world, the operable phrase for online life is No One is Safe. And Uncle Sam's tax collector is not immune from... Read more →
It's official. Or as official as anything ever is with Donald J. Trump's run for the White House. The Republicans' 2016 presidential nominee will not be releasing his personal income tax returns. Click image to view the full interview. Tax question/response at 1 minute, 27 seconds. Paul Manafort, Trump's campaign chairman, appeared today on CBS This Morning and, in response to a query by Norah O'Donnell, reiterated his candidate's position on keeping the returns private. "Mr. Trump has said that his taxes are under audit and he will not be releasing them," said Manafort said. Trump originally indicated he would... Read more →
Attention Pennsylvania digital aficionados, your electronic addictions are about to cost you a bit more. Gov. Tom Wolf on July 13 signed into law his state's fiscal 2017 revenue package. Among its provisions is an extension of the Keystone State's 6 percent sales and use tax to digital downloads of books, music, satellite radio and video and audio streaming. The new tax collection will take effect Aug. 1. It's expected to bring in nearly $47 million in its first year. Those millions of dollars in extra revenue are tempting targets for this week's By the Numbers honor. So is the... Read more →
Sports fans tend to be, well, fanatic. To many, it's what a player does during the game, not his or her off-field antics that matter. Moment of the Champions League final with FC Barcelona's Leo Messi, left, going against Patrice Evra of Juventus at Olympiastadion in Berlin on June 6, 2015. (Photo by Biser Todorov via Wikimedia Commons) That kind of no-questions-asked support was what the Barcelona football -- or soccer, as most Americans call the sport -- team was counting on in the wake of its star player's tax evasion conviction. Public outreach, tax backlash: Last week after Lionel... Read more →
Hackers continue to assault the Internal Revenue Service's online options, forcing the agency to shut down yet another website tool. Another automated bot hacking attempt by identity thieves has forced the IRS to stop issuing e-file PINs. On Thursday, June 23, the IRS announced that taxpayers can no longer obtain an electronic filing personal identification number, or e-file PIN, at either IRS.gov or even via phone. And due to growing identity theft and tax refund fraud threats, the shutdown of the e-file ID option might be permanent. Who needs an e-file PIN? Some taxpayers use an e-file PIN to verify... Read more →
A few years back, the Internal Revenue Service revamped its website and did a pretty good job. IRS.gov won some awards and is better than many other federal agency online presences. Andrew Miller's winning redesign of IRS.gov via the Tax Design Challenge. (Image courtesy Miller's Organizer Sandbox) But the IRS decided that as more of us taxpayers are online every day, it wanted to make sure it was remains part of our cyber interaction. Getting public design input: In March, the IRS announced the Tax Design Challenge, its first foray into crowdsourcing. The competition offered a variety of cash prizes,... Read more →
Get Transcript is back. The Internal Revenue Service's online tool where taxpayers can download copies of their prior year filing data had been effectively out of service for more than a year after it was hacked in in early 2015. The online service still worked as long as you were willing to request your old filing data online, but wait for the actual information to be mailed to you in paper form. IRS efforts to upgrade the site's security recently progressed to the point where it was allowing some transcript requests to be randomly downloaded. Today, June 7, the IRS... Read more →
It's been more than a year since hackers were able to get into the Internal Revenue Service's online database of taxpayer transcripts. The agency initially thought that cyber crooks got data on around 104,000 filers when they broke into the Get Transcript tool. The hack, which apparently started in February 2015 and was made public three months later, was accomplished by criminals using personal information that they got from sources outside the IRS. By August, the IRS investigation revealed that the hacked tax account tally was closer to 334,000. Your tax life in an alternate form: Tax transcripts aren't just... Read more →