IRS Feed

Uncle Sam is always on the lookout for people who try to evade taxes by hiding money in foreign accounts. To keep track of taxable money abroad, the federal government relies on two agencies, the Internal Revenue Service and its sister agency within the U.S. Treasury, the Financial Crimes Enforcement Network, usually referred to as FinCEN. FinCEN requires a special filing from some of Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. FBAR filings have long been a pain for Americans who hold assets abroad. A couple of years ago, Treasury tried to make... Read more →


Robert Smith surprised the 2019 class of Morehouse College graduates with a pledge to pay off their student loans. Watch the happy moment via Bloomberg Quick Take on YouTube. It was one of last year's best feel-good stories. On May 19, 2019, billionaire entrepreneur and philanthropist Robert F. Smith promised graduates of Morehouse College listening to his commencement address that he would pay off their college debt. The approximately 400 grads at the historically black college in Atlanta were stunned. Then delighted. And the country cheered Smith's benevolence and commitment to making at least a little bit of the United... Read more →


My local H-E-B Grocery smartphone app's barcode reader helps me discover the price of a product if it's not shown on the item packaging or store shelf. I love the technology almost as much as I love potato chips! I love my grocery store app. Not only does it offer digital coupons, it lets me make shopping lists, find the aisles where the products I want are located and if there's no price sticker on the item the shelf, I can use the app to scan the package's barcode code for that info. Now the Internal Revenue Service is becoming... Read more →


It's a bit hard to keep track if you're still isolating due to the coronavirus pandemic, but welcome to another Monday federal holiday. Today is Columbus Day. Yes, it's still an official federal holiday. The White House issued an announcement lauding namesake Christopher Columbus that's getting a lot of pushback on social media from folks who prefer to use this October day to celebrate the United States' indigenous populations. We should use this day to learn about the history of indigenous people. #IndigenousPeoplesDay so for the next 24 hours this account will be a flood of me RTing Native excellence,... Read more →


There's been one positive for the Internal Revenue Service this coronavirus-affected tax filing season. The agency says that Free File has hit a record percentage increase in new users. And there's still just more than a week before the partnership between the IRS and tax software manufacturers shuts down on Oct. 16. Free, but previously not that popular: The online tax preparation and e-filing products that, as the Free File moniker indicates, allows eligible filers to complete and electronically transmit their tax returns at no cost, has been available since 2003. However, despite the growing popularity of do-it-yourself tax filing... Read more →


An impending tax deadline just got a little less imposing. The Internal Revenue Service is giving people who've yet to register for a COVID-19 economic impact payment (EIP) until Nov. 21 to supply their tax information. The November date is five weeks later than the Oct. 15 deadline the IRS set when it originally sent out letters to the almost 9 million potential stimulus recipients. These individuals didn't file a 2018 or 2019 tax return because they didn't make enough money to require them to do so. However, they still could qualify for some coronavirus relief. But to get the... Read more →


The Tonight Show host Jimmy Fallon tousles Donald J. Trump's hair during the Republican candidate's Sept. 15, 2016, appearance on the late-night television program. That hair. He spent $70,000 on that hair. Yes, I — and you and everybody — is talking about that $70,000 tax deduction claim by Donald J. Trump on his taxes, which were obtained by The New York Times and detailed in an expansive story this past weekend. Trump's hair has long been a point of curiosity and comedy. He knows it. He even has played it up with voters and on non-Apprentice television appearances. I... Read more →


Depending on your personal situation, your deadline to claim any or additional coronavirus stimulus money is Sept. 30 or Oct. 15. Miss the deadline, and you'll have to wait until next year for much-needed COVID-19 cash. Since it's still unclear if or when we might get another COVID-19 relief payment, it's even more important that every person who's eligible get all they can from the first stimulus payout. And to do that, a lot of folks need to officially touch base with the Internal Revenue Service. Soon. Like in a couple of days for some families. Wednesday, Sept. 30, is... Read more →


Earlier this month, the Internal Revenue Service implemented a push to encourage folks who didn't get COVID-19 economic relief payments to touch base with the tax agency to see if they're due any of this money. Overall, nearly 9 million individuals, or 8,863,344 to be exact, might be eligible for the stimulus help. That's a maximum of $1,200 per person, double that for married couples filing joint tax returns, plus $500 for each qualifying child. Millions of these economic impact payments, or EIPs, were sent automatically to qualifying individuals who had filed tax returns for the 2018 or 2019 tax... Read more →


National Small Business Week 2020, like much everything else this year due to the coronavirus pandemic, is going mostly virtual. Small businesses always face a lot of challenges. This year, with the coronavirus pandemic posing myriad new operational and financial problems, things are even more difficult. During the Small Business Administration's (SBA's) celebration of this year's National Small Business Week, which runs through Sept. 26, the Internal Revenue Service has been highlighting some tax breaks for these companies. Key among those breaks are credits that can help smaller employers. Tax credits are particularly welcome because they provide dollar-for-dollar tax savings.... Read more →


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, preferably by Oct. 15. Don't have to file, but qualify for COVID cash: These nine-or-so million folks... 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 →