Filing Feed

The only thing worse than getting a notice from the Internal Revenue Service, is getting a wrong one. And the absolutely worst IRS communication scenario is getting a mailing that says you owe Uncle Sam when you are sure you paid your tax bill on time. That happened recently to some taxpayers. Now the IRS is trying to ease these individuals’ concerns. Wrong automatically issued notices: “The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return,” said the agency in... Read more →

Childcare is a must for working parents, but the costs keep rising. A couple of tax credits could help both businesses and parents. (Unsplash+ in collaboration with Getty Images) Youngsters are school-free for the next few months. That means working parents are searching for ways to keep their children occupied. And supervised. Many teenagers get summer jobs. Parents of pre-teens often turn to day camps to fill a few hours each workday. But when it comes to preschoolers, childcare is a year-round concern, and an increasingly expensive one. Rising childcare costs: A recent report from Child Care Aware of America... Read more →

It’s not even officially summer yet, and already taxes are intruding on seasonal fun for taxpayers across the United States. Specifically, June 17 is Tax Day for individuals who are in one of three special categories. Since that’s less than a week away, they need to get to work now so they meet the fast approaching deadline. In most cases, missing it will mean owing even more to Uncle Sam thanks to tax penalties and inters that will be added to any tax due next Monday. Estimated taxes: Millions of taxpayers make estimated tax payments every year on income that’s... Read more →

Unsplash+ in collaboration with Getty Images School’s out for the summer. That means many young people are working summer jobs. If it’s your first time in the workplace, congratulations on your earnings effort. And good luck with the tax lessons you’re about to learn. Here’s a quick CliffsNotes on paychecks and taxes. Income Tax Withholding: Getting your first paycheck is reason for celebration. That joy, however, tends to be offset a bit when you realize that Uncle Sam, and probably your state tax collector, too, took some off the top. That’s the income tax withholding that all wage-earning workers face.... Read more →

There’s good news for the Internal Revenue Service’s efforts to get rid of as much paper as possible. The agency’s Document Upload Tool, or DUT, recently received its 1 millionth taxpayer submission. The online option lets taxpayers and tax professionals respond digitally to a wide range of tax issues. One of those issues is potentially underreported income, which prompts the IRS to issue Notice CP2000. With the DUT, taxpayers or their preparers can easily scan the material that answers the notice’s questions and electronically submit it to the agency, said the IRS. DUT growth: The upload tool was launched in... Read more →

June is here! Summer officially arrives in a few weeks. And many of us already are making vacation plans. Great! Have fun. But also make some time this month to deal with tax tasks. Really. Taxes definitely aren’t a day at the beach, but some summer tax moves can help make next year’s filing easier, and potentially less costly. Here are five tax moves to make, or at least consider, this June. 1. Pay your estimated taxes. Millions of us must make these extra tax payments each year. The payments cover income we get that’s not subject to withholding, such... Read more →

The 2024 hurricane season has just begun, but some people are still dealing with disasters from last and earlier this year. Some of them now are facing a June 17 tax filing and payment deadline. Mother Nature has been Mommy Dearest across much of the United States so far this year. Way too many federal announcements and media reports have included the phrase “A historic severe weather outbreak occurred” in 2024, meaning that millions of Americans have found themselves in major disaster areas. And the current hurricane season has just begun! Unfortunately, the disastrous start to this year was a... Read more →

Photo by Chris on Unsplash The tax code is complicated. Even for the most basic situations, there are income levels that determine whether you must file, and if so, what your tax rate is. As your life and finances get more complicated, so do your taxes. That’s why most of us depend on tax software to meet our annual filing needs. Even the tax professionals we turn to for added support go electronic, mostly at the Internal Revenue Service’s insistence. But it never hurts to have a least a rudimentary understanding of our tax system. It is our money that’s... Read more →

The Internal Revenue Service recommended, and the U.S. Treasury agreed, that the free tax software program created and operated directly by the IRS will be a permanent tax preparation and electronic filing option. Federal tax officials are encouraging all 50 states and Washington, D.C., to join the expanded Direct File program in filing season 2025. All U.S. taxpayers next year could have another no-cost option to prepare and e-file their federal tax returns. The U.S. Treasury Department and Internal Revenue Service today announced they found this tax season’s Direct File pilot program successful enough to expand to taxpayers across the... Read more →

It seems the Internal Revenue Service, or at least its Direct File program, has a new public relations agency. It’s a group of Capitol Hill Democrats and Independents. The U.S. Senators and Representatives signed a May 15 letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel lauding the IRS free online tax preparation and e-filing option. The Direct File pilot program, created and run by the IRS, was rolled out this filing season in 12 states. When it wrapped on April 15, almost 141,000 taxpayers had used it. Direct File users received more than $90 million in refunds.... Read more →

The tornado that struck Afton, Iowa, in Union County on April 26, 2024. That county is one of eight that have been declared major disaster areas, meaning residents are eligible for a variety of federal assistance, including tax relief. (Photo by Dean Baron via National Weather Service) Iowans in eight Hawkeye State counties that were struck by severe storms and tornadoes last month now have until Oct. 15 to file various federal individual and business tax returns and make tax payments. This latest Internal Revenue Service disaster relief applies to individuals and households that live or have a business in... Read more →

Free File, the Internal Revenue Service’s partnership with the tax software industry that allows millions of taxpayers to prepare their returns and e-file them for free, is still open for this year’s procrastinating filers. Private-sector companies will help those who filed for an extension (or who are just late filing) complete and submit their 1040s through the Oct. 15 extension deadline. And that no-cost filing service also will be around at for the next five filing seasons, the tax agency announced today. Extended through 2029: This year’s Free File program was its 22nd season at Under this public-private... Read more →

Some of the March 14 tornado damage in Indian Lake, Logan County, Ohio. (Photo credit: Indian Lake Chamber via Facebook) During the evening of March 14, supercell thunderstorms dropped numerous strong tornadoes across western and central Ohio. By the time things cleared, the deadly twisters also had left trails of destruction across the Buckeye State. The National Weather Service (NWS) confirmed three EF1 twisters, two reaching EF2, and an EF3 across Ohio. The NWS office in Wilmington, just north of Cincinnati, reported a total of 145 miles of combined tornado tracks across the state. Federal Emergency Management Agency’s (FEMA) investigation... Read more →

The Internal Revenue Service is holding refunds sought by thousands of filers it suspects inflated those amounts by improperly claiming some tax credits. While the IRS sorts through these questionable claims, those taxpayers aren’t going to see any refund money. Not even that amount unconnected to the questionable credit claims. The dubious claims delaying the refunds involve the Fuel Tax Credit, Sick and Family Leave Credit, and household employment taxes. “Scam artists and social media posts have perpetuated a number of false and misleading claims that have tricked well-meaning taxpayers into believing they’re entitled to big, windfall tax refunds. These... Read more →

Photo by Karolina Grabowska The Internal Revenue Service is about to turn out the lights on the 2020 tax refund party. The chance to get your part of more than $1 billion in unclaimed tax money ends on Friday, May 17. The eligible refund recipients are an estimated 938,800 folks nationwide who didn’t, for a variety of reasons, file a 2020 tax return during the 2021 filing season. Tax law says nonfilers have three years to file and collect their refund money. So why didn’t their deadline come and go on this past April 15? You might recall that three... Read more →

The bulk of tax season wrapped up on April 15. Many taxpayers will be getting the refunds those filings showed. But some individuals will get a less welcome letter from the Internal Revenue Service. The IRS sends notices and letters when it needs has ask a question about a taxpayer’s federal tax return. The correspondence also could be to let filers know about a change the agency made to their account. Or it could be notification that the taxpayers owes Uncle Sam and needs to make a payment. Regardless of the reason for the IRS mail, there are some general... Read more →

Among the nearly 141.4 million tax returns that the Internal Revenue Service had received by the week ending April 26, were 140,803 Form 1040s that arrived via the tax agency's Direct File pilot program. The IRS and Treasury Department in separate releases said these Direct File taxpayers claimed more than $90 million in refunds, and saved an estimated $5.6 million in tax preparation fees on their federal returns alone. OK, those Direct File returns were a minuscule part — 0.09960386 percent — of the more than 141 million 1040s filed as of last month. But it’s a start. And it... Read more →

Almost a year ago, the man dubbed Bitcoin Jesus because he made a fortune as an early advocate of the digital currency, was indicted on mail fraud, tax evasion, and filing false tax return charges. We found out about the $48 million tax evasion and other charges this week when the Department of Justice (DoJ) unsealed the June 2023 indictment naming Roger Keith Ver. He was arrested in Spain based on the criminal charges, and U.S. law enforcement officials are seeking Ver’s extradition. The indictment, announced by DoJ on April 30, alleges that Ver formerly of Santa Clara, California, owned... Read more →

Just days after tax season 2024 wrapped on April 16 for most filers, the Internal Revenue Service already alerted some taxpayers of changes coming for certain future filings. Specifically, the tax agency is expanding its efforts to track taxable digital asset transactions. That will be done in part via Form 1099-DA, with the appended initials designating digital assets. The IRS on April 19 released a draft version of the information return, dated 2025, for reporting digital asset transactions that will be furnished by brokers. The draft form is based on proposed IRS digital asset regulations issued last year. Tied to... Read more →

Photo by Leeloo The First You didn’t file a tax return on April 15 and you’re still avoiding the task because you owe more than you can pay. That’s a terrible reason. You actually are making things worse. Penalty and interest charges automatically started running as soon as your tax filing and nonpayment became delinquent on April 16. So you need to act now, first by filing a return, and then by exploring ways to eventually pay Uncle Sam what you owe. Failure to file and/or pay penalty costs: Even if you can't afford to immediately pay the full amount... Read more →