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IRS

This information is from the IRS website.

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IRS Waives Penalties for Many on 2018 Withholding, Estimated Tax Payments

Posted by IRS on Thu, Jan 17, 2019

The IRS this week announced it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act, the far-reaching tax reform law enacted in December 2017. 

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Topics: Individual tax planning, 2017 Federal Tax Reform

Vacation Rental Homeowners: The Tax and Deduction Rules (Video)

Posted by IRS on Thu, May 24, 2018

During the summer, taxpayers often rent out their property. They usually think about things such as cleanup and maintenance, but owners also need to be aware of the tax implications of residential and vacation home rentals.

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Topics: Individual tax planning

IRS: New Withholding Calculator Especially Useful for Complicated Tax Situations

Posted by IRS on Thu, Mar 8, 2018

The IRS has released an updated Withholding Calculator and a new version of Form W-4 to help taxpayers check their 2018 tax withholding following passage federal tax reform.

The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets.

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Topics: Individual tax planning

IRS Enacts Safeguards to Further Curb Tax Refund Fraud

Posted by IRS on Thu, Oct 26, 2017

The IRS is enacting additional safeguards for the 2018 tax filing season to help further curb refund fraud.

Working with state tax agencies and private-sector industry leaders, the IRS also reported fewer identity theft returns, fewer fraudulent refunds and fewer taxpayers who were victims of identity theft.

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Topics: Scam warnings

How Taxpayers Can Reconstruct Records Following a Disaster

Posted by IRS on Tue, Oct 10, 2017

Taxpayers who are victims of a disaster might need to reconstruct records to prove their loss. Doing this may be essential for tax purposes, getting federal assistance, or insurance reimbursement.

Here are 12 tips from the IRS taxpayers can do to help reconstruct their records after a disaster:

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Topics: Individual tax planning

Deducting Disaster Losses: 10 Tips Taxpayers Should Know

Posted by IRS on Tue, Aug 22, 2017

As we enter the height of hurricane season here on the Atlantic Coast, it's a good time to review what losses can and can't be deducted in the case of a natural disaster.

If a taxpayer suffers damage to their home or personal property, they may be able to deduct the loss they incur on their federal income tax return. If their area receives a federal disaster designation, they may be able to claim the loss sooner.

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Topics: Individual tax planning

IRS Warns Taxpayers of New Scam Involving Phony Certified Letters

Posted by IRS on Tue, Jun 20, 2017

The IRS last week issued a warning about a new nationwide phone scam involving phony certified letters.

The fraud attempts involve phone calls where the caller claims to be from the IRS and tells the victim about two certified letters sent to them in the mail but returned as undeliverable. The caller then threatens arrest if a payment is not made through a prepaid debit card they claim is linked to the Electronic Federal Tax Payment System, or EFTPS.

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Topics: Scam warnings

Taxes Won’t be Done by April? The Easy Way to get an Extension

Posted by IRS on Thu, Mar 23, 2017

Don’t think you can get your taxes done by April 18? Even the IRS says not to worry.

The Internal Revenue Service reminded taxpayers this week that if they are unable to file their tax returns by this year’s April 18 deadline there is an easy, online option to get more time to complete their return.

Taxpayers who need more time to complete their return can request an automatic six-month extension. An extension allows for extra time to gather, prepare and file paperwork with the IRS, however, it does not extend the time to pay any tax due.

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Topics: Individual tax planning

IRS Warns Businesses About W-2 Email Scam

Posted by IRS on Fri, Jan 27, 2017

The IRS, along with state tax authorities and the tax preparation industry, is warning businesses of an email phishing scam using a corporate officer’s name asking for employee W-2 forms from payroll and human resources departments at companies.

The IRS said Wednesday it has been hearing complaints this week the email scam is making its way across the country for a second time. The IRS urges company payroll officials to double check any executive-level or unusual requests for lists of Forms W-2 or Social Security number.

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Topics: Scam warnings

2017 Tax Season to Start; IRS Warns of Some Delays

Posted by IRS on Thu, Jan 19, 2017

With the 2017 tax season opening Monday, Jan. 23, the IRS is warning taxpayers claiming certain tax credits to expect a longer wait for refunds.

A new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15.

“For this tax season, it’s more important than ever for taxpayers to plan ahead,” IRS Commissioner John Koskinen said in a press release.

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Topics: Individual tax planning

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