IRS Feed

These West Texas cattle don't appear worried about much. Their owners, however, have a lot of concerns, including severe weather that could hurt their ranches' profitability. If drought has caused problems, the IRS is offering them some tax relief. (Photo by Kay Bell) When we city folks think of disaster preparation and animals, we're worrying about how to keep our pets safe during and after a major Mother Nature event. It's a bit more complicated when the animals are part of your livelihood. That's why farmers and ranchers in the path of potential disasters, like the flooding that now's across... Read more →


If you're hoping for a second COVID-19 stimulus check, it's looking like you're going to have to wait until after the November election for Congress to act. However, there is better financial pandemic payment news for millions of folks who didn't get the first coronavirus economic impact payment (EIP). Non-filers left out of first payments: Nearly 9 million individuals missed out on the first payment, notes the Internal Revenue Service, because they didn't file a tax return for the 2018 or 2019 tax year. That was the info the IRS used to send out the EIPs that were authorized back... Read more →


Taxpayers and their tax pros have faced many and new hassles this filing season, primarily because of COVID-19 challenges. Do any of these 2020 tax season situations qualify as an acceptable reason to waive associated filing penalties? Maybe. Technology, and especially tax tech, is great. Until it isn't. That was my reaction when I learned that a lot of tax professionals were left in the lurch yesterday when their tax software provider's e-file system crashed just as they were submitting — or trying to — businesses clients' tax returns that were due Sept. 15. The issue, as you can imagine,... Read more →


Man signing papers (Photo by Andrea Piacquadio via Pexels.com) The Internal Revenue Service continues to go more digital, at least temporarily to make filings easier as we continue to deal with the effects of the coronavirus pandemic. Late last month, the IRS announced 10 forms that previously had to be signed in ink on their printed paper version. You can read about this first group of forms to be granted digital signature status in my Aug. 28 post. On Sept. 10, the tax agency added another six forms to the digital signer list. They are: Form 706, U.S. Estate (and... Read more →


More than 160 million people have received the COVID-19 economic impact payment (EIP) that was approved in late March. Still, says the Internal Revenue Service, that's not everyone who's eligible for the relief money. In fact, the tax agency says around nine million Americans still are due the stimulus. But to get it this year, they need to contact the IRS. And the IRS will be sending them a special letter later this month to encourage them to file for the relief payment, prefer ally by Oct. 15. Don't have to file, but qualify for COVID cash: These nine-or-so million... Read more →


Louisiana National Guard members help clear roadways and assess damages on Aug. 27, 2020, in Lake Charles, Louisiana after Hurricane Laura made landfall the night before. (Courtesy of the Louisiana National Guard via Wikipedia Commons) Louisiana residents hard hit by major Hurricane Laura's landfall in that state last month now are getting some tax relief. The Internal Revenue Service has announced updated on Sept. 10 its list providing residents in 16 18 parishes until Dec. 31, 2020, to file various individual and business tax returns and make tax payments. The eligible parishes are Acadia, Allen, Beauregard, Calcasieu, Cameron, Grant, Jackson,... Read more →


Donald J. Trump's payroll tax deferral for employees technically took effect this week. But most employees shouldn't expect to see a minimal raise in their next paychecks. The reason is that few businesses jumped right in there on Sept. 1, the effective date of Trump's Aug. 8 White House memo, to stop withholding their workers' 6.2 percent portion of pay that goes toward the Social Security trust fund. Employers' reluctant choice: Yes, the decision to temporarily stop this segment of payroll withholding is voluntary on the part of companies. Employees, however, don't have the choice of opting in or, if... Read more →


Tax revenue is critical. It's even more important during a global pandemic when governments worldwide are facing shortfalls due to COVID-19 economic effects. So it's no surprise that tax officials are taking closer looks at possible tax scofflaws. And in many instances, they're getting help from their citizenry. Recent cases in point come from across the pond. Irish tax officials are getting record numbers of so-called good citizen reports of tax evaders. The United Kingdom's HM Revenue & Customs has boosted payments to those tipping it off about tax dodgers. Part of the reason for Ireland's impressive increase in tax... Read more →


COVID-19 has forced taxpayers and their hired preparers to maintain social distance during return completion this year. Electronic tax processes have helped, but some forms require real signatures, meaning in-person contact. Until now. The IRS is temporarily accepting electronic signatures on certain documents that still must be snail mailed. Photo by Andrea Piacquadio via Pexels.com Some, including me and many in the tax professional community, have long argued that the Internal Revenue Service has been its own worst enemy when it comes to moving the agency into electronic era. Sure, Uncle Sam's tax collector has been encouraging, and in some... Read more →


Are your spouse's debts are costing you? The IRS has a bit of good news for some husbands and wives. They'll be getting back the coronavirus payment portion they were shorted due to their spouses' unpaid child support. (Photo by Kat Jayne via Pexels) Congress and the White House may be struggling to reach a deal on additional COVID-19 economic relief payments, but the Internal Revenue Service has stepped up to get some of the original stimulus money to few more folks. The agency says that next month it will send catch-up Economic Impact Payments (EIPs) to about 50,000 individuals.... Read more →


UPDATED, Thursday, Sept. 3, 2020: More Iowa counties now eligible for relief. Details below. Photo courtesy Cal Fire Mother Nature is in one foul, destructive mood. California wildfires have killed seven people, destroyed more than 1,400 buildings destroyed and ravaged 1.25 million acres in the Golden State. Blazes also have burned more than 1.8 million acres in 14 states, according to the National Interagency Fire Center. Hurricane Laura, which is shown in a National Hurricane Center satellite image below (updated 10 a.m. CDT, Wednesday, Aug. 26, 2020) gaining strength in the Gulf of Mexico, is expected to swamp East Texas... Read more →


The growing acceptance of electronic financial transactions has pretty much put an end to paper checks. Pretty much, but not totally. Some people still send old-school paper checks. And some of them sent such pen-to-paper payments to the Internal Revenue Service earlier this year to cover their due taxes. Unfortunately for the payers, their checks arrived at IRS offices that were closed as part of the agency's coronavirus pandemic precautions. And now that the IRS is digging those payments out of its massive mail backlog, there's a possibility that some of the months-old checks could bounce. But the agency is... Read more →


Almost 14 million U.S. taxpayers are getting a few extra dollars from Uncle Sam. If you're one of them, you can thank the Internal Revenue Service and the COVID-19 changes to the 2020 filing season. Pandemic tax season timing tweaks mean that these regular refund recipients also will be getting some interest — an average of $18 — in addition to their expected tax-back amounts. Interesting deadline days: The IRS announced the upcoming interest payments back in late June. Now it's making good on that promise, which was necessitated by this year's Tax Day delay. The postponing of the filing... Read more →


The Internal Revenue Service heard the complaints about incorrect unpaid tax notices and has acted. It announced yesterday, Aug. 21, afternoon that it is temporarily halting the mailing of three nonpayment notices. The decision came on the heels of public outcry, some of it among taxpayers and the professional tax community on social media, as well as letter from the chairman of the House Ways and Means Committee. COVID-19 mail complications: The notice problem was the result of, what else, the coronavirus pandemic. The IRS closed most of its physical operations in March, but mail kept coming. That was because... Read more →


Ways and Means Chairman Richard Neal (D-Massachusetts), right, and his colleague, the late Rep. John Lewis (D-Georgia), conduct a hearing in pre-pandemic days. (W&M Committee photo) In a recent post about the Internal Revenue Service sending out nonpayment notices that it knew were wrong, I asked now what? Ways and Means Committee Chairman Rep. Richard Neal has one answer. The Massachusetts Democrat is calling on the IRS to stop sending tax bills until the agency catches up on its huge mail backlog. Stop the notices: In a letter to IRS Commissioner Chuck Rettig, Neal noted that this summer, following IRS... Read more →


Times are tough for Uber and Lyft operations in California. Both ride-hailing services are threatening to temporarily shut down in the wake of a Golden State law that took effect in January and, more notably, a recent San Francisco Superior Court order that the companies classify their drivers as employees instead of contractors. This battle between the popular transportation option and California officials is playing out as the Internal Revenue Service continues its efforts to educate gig workers about their tax responsibilities. A recent Government Accountability Office (GAO) report has some ideas on how to make sure more freelance workers... Read more →


We all should learn from our mistakes. That's especially true of tax mistakes. And now that learning — and correcting — process is getting easier. The Internal Revenue Service now will accept some electronically filed amended returns. There's just one hitch. This long-awaited electronic filing process, which the IRS promised earlier this summer, is available for making corrections only to tax year 2019 Form 1040 and Form 1040-SR returns. Those were the ones you filed (or got an extension file) this year by July 15. If you have an earlier filing you need to fix, you'll still have to use... Read more →


Photo via Office of the U.S. Postal Service Inspector General And the crazy that is COVID-19 tax season 2020 keeps on coming. The recent buzz on tax social media was/is about Internal Revenue Service balance-due notices that arrived in folks' mailboxes. However, the people who got the notices did file on time and did pay when they filed. So what gives? The problem, in most cases, is that the payments were/are stuck in the agency's huge — 10 million pieces — U.S. Postal Service mail backlog. Since those initial concerns were aired on social media (thank you #TaxTwitter!), things seem... Read more →


Attention parents who rely on government program payments to help care for your families. If you missed out on the extra $500 per dependent child coronavirus economic impact payment (EIP), the Internal Revenue Service is giving you one last chance to get this supplemental money this year. The tax agency announced this afternoon that it is reopening registration for the added COVID-19 stimulus amounts. The IRS' online Non-Filers tool , which debuted back in mid-April, again will be available starting tomorrow, Saturday, Aug. 15. It will be open through Sept. 30 to allow affected individuals to enter their qualifying children's... Read more →


The U.S. Postal Service (USPS) has become a flash point in the coming election. On Capitol Hill, the constitutionally decreed national delivery service has been at the center of it's become a battle highlighting Republican claims of mail-in voter fraud (largely unsubstantiated) and Democratic concerns about Postal Service funding (not enough) and slowing down of services (too much). The mail also is a practical issue for the Internal Revenue Service and taxpayers. Despite increasing efforts to shift to digital tax transactions, the federal tax agency still relies on old fashioned snail mail for many of its tasks and those that... Read more →