IRS Tax News

  • 14 Apr 2022 4:15 PM | Anonymous

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    WASHINGTON — Today’s Internal Revenue Service website provides millions with the tax solutions they need 24 hours a day and eliminates unnecessary calls or trips to an IRS office. On IRS.gov, waiting in line is never a problem and there’s no appointment needed.

    The many online tools and resources range from tax preparation and refund tracking to tax law research tools like the Interactive Tax Assistant and answers for Frequently Asked Questions on dozens of subjects.

    File taxes, view accounts, make payments – all online!

    Taxpayers can use the “File” tab on the IRS.gov home page for most federal income tax needs. The IRS Free File program offers 70% of all taxpayers the choice of several brand-name tax preparation software packages to use at no cost. Those who earned less than $73,000 in 2021 can choose which package is best for them. Some even offer free state tax return preparation.

    To see their tax account, taxpayers can use the View Your Account tool. They'll find information such as a payoff amount, the balance for each tax year owed, up to 24 months of their payment history and key information from their current tax year return as originally filed.

    Taxpayers can find the most up-to-date information about tax refunds using the "Where's My Refund?" tool on IRS.gov and on the official IRS mobile app, IRS2Go. Within 24 hours after the IRS acknowledges receipt of an e-filed return taxpayers can start checking on the status of their refund.

    Those who owe can use IRS Direct Pay to pay taxes for the Form 1040 series, estimated taxes or other associated forms directly from a checking or savings account at no cost.

    Taxpayers can also use the Get Transcript tool to view, print or download their tax transcripts after the IRS processes their return or payment.

    File complete and accurate returns to avoid processing delays

    To avoid situations that can slow a refund, taxpayers should be careful to file a complete and accurate tax return. If a return includes errors or is incomplete, it may require further review.

    Taxpayers should be sure to have all their year-end statements in hand before filing a return. This includes Forms W-2 from employers, Form 1099-G from state unemployment offices, Forms 1099 from banks and other payers, and Form 1095-A from the Health Insurance Marketplace for those claiming the Premium Tax Credit.

    Individuals should refer to Letter 6419 for advance Child Tax Credit payments and Letter 6475 for third Economic Impact Payment amounts they received– or their Online Account – to prepare a correct tax return. Claiming incorrect tax credit amounts can not only delay IRS processing, but can also lead to adjusted refund amounts.

    Assistive technology options

    At the online Alternative Media Center (AMC), taxpayers will find a variety of accessible products like screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications that can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print. Please note that every product is not available in all formats. For example, tax forms are not available as HTML documents.

    Prevent fraud with an Identity Protection PIN

    An Identity Protection PIN (IP PIN) is a six-digit number that prevents someone from filing a tax return using another taxpayer's Social Security number. The IP PIN is known only to the real taxpayer and the IRS and helps the IRS verify the taxpayer's identity when they file their electronic or paper tax return.

    Starting in 2021, any taxpayer who can verify their identity can voluntarily opt into the IP PIN program. See Get an IP PIN for details and to access the online tool. There are options for those who cannot verify their identities online.

    Find free, local tax preparation

    The IRS's Volunteer Income Tax Assistance (VITA) program has operated for over 50 years. It offers free basic tax return preparation to qualified individuals:

    • People who generally make $58,000 or less,
    • People with disabilities and
    • Limited English-speaking taxpayers.

    The Tax Counseling for the Elderly (TCE) program also offers free tax help for taxpayers, particularly those age 60 and older.

    The VITA/TCE Site Locator can help eligible taxpayers find the nearest community-based site staffed by IRS-trained and certified volunteers. Demand is high for this service so taxpayers may experience longer wait times for appointments. Taxpayers can use the locator tool to find an available site near them. It’s updated throughout the tax season, so individuals should check back if they don't see a nearby site listed.

    And MilTax, Military OneSource’s tax service, offers online software for eligible military members, veterans and their families to electronically file a federal return and up to three state returns for free.

    Adjust withholding now to avoid tax surprises next year

    Now is a perfect time for taxpayers to check their withholding and avoid a tax surprise next filing season. Life events like marriage, divorce, having a child or a change in income can all impact taxes.

    The Withholding Estimator on IRS.gov helps employees assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate. Taxpayers should remember that, if needed, they should submit their new W-4 to their employer, not the IRS.

    Phone assistance and in-person appointments during COVID-19

    The IRS works hard to provide quality service to taxpayers while actively responding to the impacts of the pandemic and focusing on the safety and health of taxpayers and employees.

    The IRS encourages people to use existing electronic tools available on IRS.gov as much as possible before calling and continues its efforts to develop more resources to help meet taxpayer needs.

    For example, voice bots helped people calling the Economic Impact Payment (EIP) toll-free line, providing general procedural responses to frequently asked questions. As of April 9, 2022, nearly 2.5 million taxpayers had their questions answered through electronic assistance. The IRS also added voice bots for the Advanced Child Tax Credit (AdvCTC) toll-free line this year to provide similar assistance to callers who need help reconciling the credits on their 2021 tax return. As of April 9, 2022, almost 200,000 taxpayers’ queries were answered through these bots.

    The IRS also continues to provide face-to-face tax assistance at Taxpayer Assistance Centers by appointment when necessary and at walk-in Saturday events. The IRS follows Centers for Disease Control social distancing guidelines for COVID-19 at all office appointments.


  • 13 Apr 2022 4:11 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit.

    These FAQs (FS-2022-27) updated Questions 1, 5, 8 and 9 in Topic F: Receiving the Credit on a 2021 Tax Return.

    Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information.  Individuals may have received their third Economic Impact Payment through initial and “plus-up” payments in 2021.

    Note:  Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021.

    Most eligible people already received their Economic Impact Payments and won’t include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021.

    To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes.  Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit.  They should review the Recovery Rebate Credit page to determine their eligibility.

    The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. 

    People can locate this information on Letter 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them beginning in late January 2022.  Individuals can also view this information in their online account later in January.

    The FAQ’s cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible.

    File for free and use direct deposit

    Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.

    More information about reliance is available.


  • 13 Apr 2022 3:11 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2020 Recovery Rebate Credit.

    These FAQs (FS-2022-26) update Topic E, Receiving the Credit on a 2020 tax return:

    • Modifies Questions 1, 4, 5, 8 and;
    • Adds new Questions 9 and 10.

    Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information.  Individuals may have received their third Economic Impact Payment through initial and “plus-up” payments in 2021.

    Note:  Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021.

    Most eligible people already received their Economic Impact Payments and won’t include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021.

    To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes.  Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit.  They should review the Recovery Rebate Credit page to determine their eligibility.

    The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. 

    Individuals can now view this information in their online account.

    People can also locate this information on Letter 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them  through March 2022. 

    The FAQ’s cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible.

    File for free and use direct deposit

    Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.

    More information about reliance is available.


  • 13 Apr 2022 11:29 AM | Anonymous

    WASHINGTON – The Internal Revenue Service today urged any taxpayer, now finishing up their 2021 tax return, to use the IRS Tax Withholding Estimator to make sure they’re having the right amount of tax taken out of their pay during 2022.

    This online tool offers workers, self-employed individuals and retirees who have wage income a user-friendly resource for effectively tailoring the amount of income tax withheld from wages.

    2021 refund too big? Too small? Surprise tax bill? If any of these apply, the Tax Withholding Estimator can help anyone make sure it doesn’t happen again by having the right amount of taxes taken out for 2022.

    Benefits of using the Estimator
    For employees, withholding is the amount of federal income tax taken out of their paycheck. Taxpayers can use the results from the Tax Withholding Estimator to determine if they should complete a new Form W-4 and submit it to their employer. For example, checking withholding can:

    •  Ensure the right amount of tax is withheld and prevent an unexpected tax bill or penalty at tax time and
    •  Determine whether to have less tax withheld up front, thereby boosting take-home pay and reducing any refund at tax time.

    When should taxpayers use this tool?
    The IRS recommends checking withholding at least once a year. For anyone who has just finished filling out their 2021 return, now is a particularly good time to do it. It’s also a good idea to use this tool right after a major life change, such as marriage, divorce, home purchase or the birth or adoption of a child.

    What records are needed?
    The Tax Withholding Estimator’s results are only as accurate as the information entered. To help prepare, the IRS recommends that taxpayers gather:

    • Their most recent pay statements and if married, for their spouse,
    • Information for other sources of income and 
    • Their most recent income tax return, 2021, if possible.

    While the Tax Withholding Estimator works for most taxpayers, people with more complex tax situations should instead use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends.

    Still working on a 2021 return?
    The IRS urges anyone still working on their 2021 return to make sure they have all their year-end statements in hand before filing. Besides all W-2s and 1099s, this includes two new letters issued by the IRS.

    People who received advance payments of the Child Tax Credit will need to reconcile, or compare, the total received in advance with the amount they’re eligible to claim. Letter 6419 shows their total advance Child Tax Credit payments to help taxpayers reconcile and receive the full amount of  the 2021 Child Tax Credit.

    While most eligible people already received their stimulus payments, people who are missing a third stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2021 federal tax return. Letter 6475 shows their total third round of Economic Impact Payments.

    Alternatively, anyone can securely sign in to their Online Account to access information on their advance Child Tax Credit payments and Economic Impact Payments.

    Taxpayers should also e-file and choose direct deposit to avoid processing delays and help with faster delivery of their refund.

    For most Americans, the tax-filing deadline is April 18, 2022. For residents of Maine and Massachusetts, the deadline is April 19, 2022. Americans who live and work abroad have until June 15, 2022. Those who need more time to file can get an automatic extension to file until Oct. 17, 2022. These extensions don't change the April 18 payment deadline. It is not an extension to pay. More information is available at IRS.gov.

    Then, after they file, taxpayers can use the Tax Withholding Estimator to help them update their withholding for 2022.

    Additional information
    Tax Withholding Estimator FAQs
    Paycheck Checkup


  • 12 Apr 2022 2:09 PM | Anonymous

    WASHINGTON ― With the April 18 tax-filing deadline closing in for most taxpayers, the Internal Revenue Service wants to dispel some new and common myths about getting refund details or speeding up tax refunds. A number of these myths circulate on social media every tax season.

    The IRS continues to process 2021 tax returns and deliver refunds, with nine out of 10 refunds issued in less than 21 days. As of the week ending April 1, the IRS has sent out more than 63 million refunds worth over $204 billion. The average refund is $3,226.

    The IRS reminds taxpayers the easiest way to check on a refund is “Where’s My Refund?,” an online tool available on IRS.gov and through the IRS2Go mobile app. “Where’s My Refund?” provides taxpayers the same information and issue date information that IRS assistors and tax professionals have.

    “Where’s My Refund?” can be used to check the status of a tax return within 24 hours after a taxpayer receives their e-file acceptance notification. The “Where’s My Refund?” tool is updated only once every 24 hours, usually overnight, so there’s no need to check the status more than once a day. Taxpayers should only call the IRS tax help hotline to talk to a representative if it has been more than 21 days since their tax return was e-filed, or more than six weeks since mailing their return.

    For those awaiting processing of a 2020 tax return, the IRS continues to make progress in this area and has taken numerous steps to help address this issue, including stopping the mailing of key notices and adding more IRS employees as part of surge teams to continue working tax returns, as well as amended returns and correspondence from last year.

    Seven common myths about tax refunds:

    Myth 1: Calling the IRS or visiting an IRS office speeds up a refund
    Many taxpayers mistakenly believe the commonly held myth that speaking with the IRS by phone or visiting in-person at an IRS Taxpayer Assistance Center will expedite their tax refund. The best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app. Alternatively, those without internet access can reach “Where’s My Refund?” by calling the automated refund hotline at 800-829-1954. IRS Taxpayer Assistance Centers operate by appointment and inquiring about a tax refund’s status does not expedite the process.

    Myth 2: Taxpayers need to wait for their 2020 return to be processed before filing their 2021 return, or that all refunds are delayed due to the number of 2020 returns the IRS still needs to process.
    The reality is that taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns. They should file when they’re ready. People with unprocessed 2020 tax returns, should enter $0 (zero dollars) for last year's AGI on their 2021 tax return when electronically filing.

    Myth 3: Taxpayers can get a refund date by ordering a tax transcript
    Ordering a tax transcript will not inform taxpayers of the timing of their tax refund, nor will it speed up a refund being processed. Taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation. But the “Where’s My Refund?” tool is the fastest and most accurate way to check the status of a refund.

    Myth 4: “Where’s My Refund?” must be wrong because there’s no deposit date yet
    While the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a variety of reasons, including when a return is incomplete or needs further review. Delays can be caused by simple errors like an incomplete return, transposed numbers or when a tax return is affected by identity theft or fraud. The “https://www.irs.gov/refunds” tool only updates data once a day – usually overnight.

    Myth 5: “Where’s My Refund?” must be wrong because a refund amount is less than expected
    Different factors can cause a tax refund to be larger or smaller than expected. Situations that may decrease a refund can include corrections to any Recovery Rebate Credit or Child Tax Credit amounts, delinquent federal taxes or state taxes and past due child support. The IRS will mail the taxpayer a letter of explanation if these adjustments are made. The Department of Treasury's Bureau of the Fiscal Service may also send a letter if all or part of a taxpayer’s refund was used to pay certain financial obligations.

    Myth 6: Calling a tax professional will provide a better refund date
    Contacting a tax professional will not speed up a refund. Tax professionals cannot move up a refund date nor do they have access to any "special" information that will provide a more accurate refund date. The “Where’s My Refund?” tool provides taxpayers with the same accurate and timely information that a tax professional, or even an IRS telephone assistor can access.

    Myth 7: Getting a refund this year means there's no need to adjust tax withholding for 2022
    Taxpayers should continually check their withholding and adjust accordingly. Adjusting tax withholding with an employer is easy, and using the Tax Withholding Estimator tool can help taxpayers determine if they are withholding the right amount from their paycheck. Taxpayers who experience a life event like marriage or divorce, childbirth, an adoption, home purchase or major income change are encouraged to check their withholding. Withholding takes place throughout the year, so it's better to take this step as soon as possible.


  • 12 Apr 2022 12:09 PM | Anonymous

    WASHINGTON — The Internal Revenue Service announced today that taxpayers who may need to take additional actions related to Qualified Opportunity Funds (QOFs) should begin receiving letters in the mail in April.

    Taxpayers who attached Form 8996, Qualified Opportunity Fund, to their return may receive Letter 6501, Qualified Opportunity Fund (QOF) Investment Standard. This letter lets them know that information needed to support the annual certification of investment standard is missing, invalid or the calculation isn’t supported by the amounts reported. If they intend to maintain their certification as a QOF, they may need to take additional action to meet the annual self-certification of the investment standard requirement.

    To correct the annual maintenance certification of the investment standard, these taxpayers should file an amended return or an administrative adjustment request (AAR). If an entity that receives the letter fails to act, the IRS may refer its tax account for examination. Investors who made an election to defer tax on eligible gains invested in that entity may also be subject to examination.

    Additionally, taxpayers may receive Letter 6502, Reporting Qualified Opportunity Fund (QOF) Investments, or Letter 6503, Annual Reporting Of Qualified Opportunity Fund (QOF) Investments. These letters notify them that they may not have properly followed the instructions for Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, since it appears that information is missing, invalid or that they may not have properly followed the requirements to maintain their qualifying investment in a QOF with the filing of the form.

    If these taxpayers intend to maintain a qualifying investment in a QOF, they can file an amended return or an AAR with a properly completed Form 8997 attached. Failure to act will mean those who received the letter may not have a qualifying investment in a QOF and the IRS may refer their tax accounts for examination. This may result in letter recipients owing taxes, interest and penalties on gains not properly deferred.

    For general information, visit the Opportunity Zones page on IRS.gov.


  • 11 Apr 2022 1:42 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today reminded all taxpayers – particularly those who are identity theft victims – of an important step they should take to protect themselves from tax fraud. 

    Some identity thieves use taxpayers’ information to file fraudulent tax returns. By requesting Identity Protection PINs from the Get an IP PIN tool on IRS.gov, taxpayers can prevent thieves from claiming tax refunds in their names. 

    Identity Protection PINs and how to get one

    An IP PIN is a six-digit number the IRS assigns to an individual to help prevent the misuse of their Social Security number or Individual Taxpayer Identification Number (ITIN) on federal income tax returns. The IP PIN protects the taxpayer’s account, even if they’re no longer required to file a tax return, by rejecting any e-filed return without the taxpayer’s IP PIN

    Taxpayers should request an IP PIN:

    • If they want to protect their SSN or ITIN with the IRS,
    • If they want to protect their dependent’s SSN or ITIN with the IRS,
    • If they think their SSN, ITIN or personal information was exposed by theft or fraudulent acts or
    • If they suspect or confirm they’re a victim of identity theft.

    Taxpayers can go to IRS/getanippin to complete a thorough authentication check. Once authentication is complete, an IP PIN will be provided online immediately. A new IP PIN is generated every year for added security. Once an individual is enrolled in the IP PIN program, there’s no way to opt-out. 

    The IRS may automatically assign an IP PIN if the IRS determines the taxpayer’s a victim of tax-related identity theft. The taxpayer will receive a notification confirming the tax-related ID theft incident along with an assigned IP PIN for future tax-return filings. 

    Taxpayers will either receive a notice with their new IP PIN every year in early January for the next filing season or they must retrieve their IP PIN by going to IRS/getanippin. 

    Tax-related identity theft and how to handle it

    Tax-related identity theft occurs when someone uses a taxpayer’s stolen SSN to file a tax return claiming a fraudulent refund. In the vast majority of tax-related identity theft cases, the IRS identifies a suspicious tax return and pulls the suspicious return for review. The IRS then sends a letter to the taxpayer and won’t process the tax return until the taxpayer responds. 

    Depending on the situation, the taxpayer will receive one of three letters asking them to verify their identity:

    • Letter 5071C, asks them to use an online tool to verify their identity and tell the IRS if they filed the return in question.
    • Letter 4883C, asks the taxpayer to call the IRS to verify their identity and tell the IRS if they filed the return.
    • For those who have been a victim of a data breach, they may receive Letter 5747C and be asked to verify their identity in-person at a Taxpayer Assistance Center. 

    If the taxpayer receives any of these letters, they don’t need to file an https://www.irs.gov/newsroom/when-to-file-an-identity-theft-affidavit(Form 14039). Instead, they should follow the instructions in the letter.

    When to file an Identity Theft Affidavit

    If a taxpayer hasn’t heard from the IRS but suspects tax-related identity theft, they should complete and submit a Form 14039, Identity Theft Affidavit. Signs of possible tax-related identity theft include: 

    • A taxpayer can’t e-file their tax return because a duplicate tax return was filed using their Social Security number. (Check that there’s no error in the SSN, such as transposed numbers.)
    • A taxpayer can’t e-file because a dependent’s Social Security number or ITIN was already used by someone on another return without the taxpayer’s knowledge or permission. (Also check that the SSN or ITIN is correct and be sure the dependent hasn’t filed a separate tax return.)
    • A taxpayer receives a tax transcript in the mail they did not request.
    • A taxpayer receives a notice from a tax preparation software company confirming an online account was created in their name, and they did not create one.
    • A taxpayer receives a notice from their tax preparation software company that their existing online account was accessed or disabled when they took no action.
    • A taxpayer receives an IRS notice informing them that they owe additional tax, or their refund was offset to a balance due, or that they have had collection actions taken against them for a year they did not earn any income or file a tax return.
    • The IRS sends a taxpayer a notice indicating that the taxpayer received wages or other income from an employer for whom they didn’t work.
    • The taxpayer was assigned an Employer Identification Number (EIN), but they did not request or apply for an EIN. 

    The IRS will work to verify the legitimate taxpayer, clear the fraudulent return from the taxpayer’s account and, generally, place a special marker on the account that will generate an IP PIN each year for the taxpayer who is a confirmed victim. 

    For information about tax-related identity theft, see Identity Protection: Prevention, Detection and Victim Assistanceand IRS Identity Theft Victim Assistance: How It Works on IRS.gov. The Federal Trade Commission website also includes information about tax-related identity theft. 

    Signs of non-tax-related identity theft; no need to file form 14039

    Non-tax-related identity theft occurs when someone uses stolen or lost personal identifiable information (PII) to open credit cards, obtain mortgages, buy a car or open other accounts without their victim’s knowledge. 

    Potential evidence of non-tax-related identity theft can include:

    • An individual receives balance due bills from companies with whom they didn’t conduct business, magazine subscriptions they didn’t order, notifications of a mortgage statement and/or credit cards for which they didn’t apply.
    • An individual receives notices of unemployment benefits for which they didn’t apply.
    • An individual receives a Notice CP 01E, Employment Identity Theft.
    • An individual receives a Form W-2 or 1099 from a corporation or employer from whom they did not receive the income reported and they have not received a notice or letter from the IRS questioning them about that income.
    • A taxpayer can’t e-file because a dependent’s SSN or ITIN was already used by someone who is known to the taxpayer but is not the parent or legal guardian, and the taxpayer did not provide permission for that person to claim the dependent. For additional information about this issue, see Publication 1819, Divorce and non-custodial, separated, or never married parents

    Victims of non-tax-related identity theft don’t need to report these incidents to the IRS but should take steps to protect against the type of identity theft they’ve experienced.


  • 11 Apr 2022 8:00 AM | Anonymous

    WASHINGTON — The Internal Revenue Service today reminds those who make estimated tax payments such as self-employed individuals, retirees, investors, businesses, corporations and others that the payment for the first quarter of 2022 is due Monday, April 18.

    The 2022 Form 1040-ES, Estimated Tax for Individuals, can help taxpayers estimate their first quarterly tax payment.

    Income taxes are a pay-as-you-go process. This means, by law, taxes must be paid as income is earned or received during the year. Most people pay their taxes through withholding from paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

    Most often, those who are self-employed or in the gig economy need to make estimated tax payments. Similarly, investors, retirees and others often need to make these payments because a substantial portion of their income is not subject to withholding. Other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income. Paying quarterly estimated taxes will usually lessen and may even eliminate any penalties.

    Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers and fishers, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. See Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and its instructions for more information.

    How to pay estimated taxes
    Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. The best way to make a payment is through IRS Online Account. There taxpayers can see their payment history, any pending payments and other useful tax information. Taxpayers can make an estimated tax payment by using IRS Direct Pay; Debit Card, Credit Card or Digital Wallet; or the Treasury Department's Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. If paying by check, taxpayers should be sure to make the check payable to the "United States Treasury."

    Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can be especially helpful to those who have dividend or capital gain income, owe alternative minimum tax or self-employment tax, or have other special situations.

    IRS.gov assistance 24/7
    Tax help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions.

    The IRS is continuing to expand ways to communicate to taxpayers who prefer to get information in other languages. The IRS has posted translated tax resources in 20 other languages on IRS.gov. For more information, see We Speak Your Language.


  • 11 Apr 2022 7:59 AM | Anonymous

    WASHINGTON – As the federal tax filing deadline approaches later this month, the Internal Revenue Service today announced that many Taxpayer Assistance Centers will be open around the country this Saturday, April 9 for face-to-face help.

    This special Saturday help is available from 9 a.m. to 4 p.m., and no appointment is needed. Normally, TACs are only open by appointment on weekdays.

    “We are inviting anyone who wants or needs some assistance to stop by,” said IRS Wage & Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin. “We designed these extra weekend hours to make it easier for taxpayers to resolve an issue, inquire about their account or work with the IRS if they have an obligation they cannot meet. Whatever the case, face-to-face help will be available on this special day without an appointment.”

    People can also ask about reconciling advance Child Tax Credit or third round Economic Impact Payments or inquire about various other services available while at an IRS office. If assistance from IRS employees specializing in these services is not available, the individual will receive a referral for these services. IRS staff will schedule appointments for a later date for deaf or hard of hearing individuals who need sign language interpreter services. Foreign language interpreters will be available.

    While no tax return preparation will be available at any IRS TAC, the IRS.gov webpage, Contact your local office, lists all services provided. Taxpayers can make payments by check or money order. The IRS will not accept cash during these events.

    Come prepared with paperwork
    The IRS urges individuals to bring the following information:

    • Current government-issued photo identification
    • Social Security cards and/or ITINs for members of their household, including spouse and dependents (if applicable)
    • Any IRS letters or notices received and related tax and financial documents

    During the visit, IRS staff may also request the following information:

    • A current mailing address, and
    • Bank account information, to receive payments or refunds by Direct Deposit.

    The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. It’s mandatory for people to wear face masks and social distance at these events when required by CDC guidance, such as in high transmission counties.

    Most taxpayers can get help preparing and filing their 2021 federal tax returns using these free, safe and convenient resources:

    • Any individual or family earning $73,000 or less in 2021 can use tax software from providers who make their online products available through IRS Free File at no cost. There are products in English and Spanish.
    • Free help preparing tax returns is available at a Volunteer Income Tax Assistance Center (VITA) or Tax Counseling for the Elderly location (TCE) sites. The income limit for VITA assistance is $58,000. To find the closest free tax return preparation help, use the VITA Locator Tool or call 800-906-9887. To find a TCE AARP Tax-Aide site, use the AARP Site Locator Tool or call 1-888-227-7669.

    More information:


  • 11 Apr 2022 7:58 AM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced that the application period for Low Income Taxpayer Clinic (LITC) matching grants for calendar year 2023 will open on or around May 2, 2022.

    The LITC Program is a federal grants program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. The Taxpayer Advocate Service operates as an independent organization within the IRS.

    “LITCs play an important role in ensuring the voices of low-income and English as a second language-taxpayers are heard,” Collins said. “The work they do is strengthened and enhanced by the many volunteers who give their time to help. I strongly encourage interested organizations and volunteers to join the LITC program to assist those in need.”

    Under Internal Revenue Code Section 7526, the IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain an LITC. Qualified organizations that are awarded grants ensure the fairness and integrity of the tax system for taxpayers who are low-income or speak English as a second language (ESL) by providing pro bono representation on their behalf in tax disputes with the IRS, educating them about their rights and responsibilities as taxpayers, and identifying and advocating on issues that impact them.

    When the application period opens, the IRS will consider applicants from all areas, but is particularly interested in receiving applications from organizations that will provide coverage in unserved areas. Presently, there are no LITCs operating in the states of Montana, Nevada, North Dakota and the territory of Puerto Rico. In addition, there are a few states that have uncovered counties that are in need of LITC representation.

    Underserved counties in need of LITC services

    • Arizona- Apache, Coconino and Navajo
    • Florida- Baker, Bradford, Brevard, Citrus, Clay, Columbia, Dixie, Duval, Flagler, Hamilton, Hernando, Lafayette, Lake, Madison, Nassau, Orange, Osceola, Seminole, St. John’s, Sumter, Suwanee, Taylor and Volusia
    • Idaho- Ada, Adams, Bannock, Bear Lake, Bingham, Boise, Bonneville, Butte, Canyon, Caribou, Clark, Clearwater, Custer, Franklin, Freemont, Gem, Idaho, Jefferson, Latah, Lemhi, Lewis, Lincoln, Madison, Nez Perce, Oneida, Owyhee, Payette, Power, Teton, Valley and Washington
    • North Carolina- Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gates, Granville, Greene, Guilford, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Sampson, Scotland, Stokes, Tyrrell, Vance, Wake, Warren, Washington, Wayne and Wilson
    • Pennsylvania- Bradford, Clinton, Monroe, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Union and Wyoming

    Who qualifies as an LITC
    Applicants must meet key requirements to be eligible for an LITC grant such as:

    • Be an organization, not an individual.
    • Provide representation to low-income taxpayers and education to ESL taxpayers.
    • Not charge more than a nominal fee for services (except for reimbursement of actual costs incurred).
    • Have an approved IRS Employer Identification Number.
    • Be an organization registered in the System for Award Management (SAM).

    In 2020, LITCs represented nearly 20,000 taxpayers dealing with an IRS tax controversy and provided consultations or advice to another 18,000 taxpayers. They helped taxpayers secure more than $5.8 million in tax refunds and reduced or corrected taxpayers' liabilities by over $116 million. They also brought more than 2,900 taxpayers back into payment compliance.

    Through outreach and education activities, LITCs strived to ensure individuals understood their rights as U.S. taxpayers by conducting more than 1,000 educational activities that were attended by nearly 134,000 individuals. Some 1,500 volunteers contributed to the success of LITCs by volunteering over 42,000 hours of their time. Nearly 65% of the volunteers were attorneys, certified public accountants or enrolled agents.

    More information about LITCs and the work they do to represent, educate and advocate on behalf of low-income and ESL taxpayers is available in IRS Publication 5066.

    A complete overview of the requirements to be an LITC can be found in Publication 3319, LITC Grant Application Package and Guidelines. If individuals or organizations have questions or would like additional information about the LITC Program, they can contact Karen Tober at Karen.Tober@irs.gov.


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