IRS Tax News

  • 20 Jul 2022 9:15 AM | Anonymous

    WASHINGTON –– The Internal Revenue Service today released a new five-year Strategic Plan that outlines its goals to improve taxpayer service and tax administration.

    The IRS Strategic Plan FY2022-2026 will serve as a roadmap to help guide the agency’s programs and operations. The plan will also help meet the changing needs of taxpayers and members of the tax community.

    “Through the Strategic Plan, we want to share our priorities and how they shape the important work that takes place at the IRS, year in and year out, to help taxpayers,” said IRS Commissioner Chuck Rettig. “We serve and interact with more Americans than nearly any other public or private organization. The IRS has undergone tremendous change over the last five years, and we continue to evolve to better serve the nation’s taxpayers.”

    The Strategic Plan, developed with input from external partners as well as IRS employees, focuses on four goals that will help improve customer service:

    • Service – Provide quality and accessible services to enhance the taxpayer experience.
    • Enforcement – Enforce the tax law fairly and efficiently to increase voluntary compliance and narrow the tax gap.
    • People – Foster an inclusive, diverse and well-equipped workforce and strengthen relationships with our external partners.
    • Transformation – Transform IRS operations to become more resilient, agile and responsive to improve the taxpayer experience and narrow the tax gap.

    As the IRS works to achieve these goals, it will continue to uphold taxpayer rights and enforce the tax code fairly to improve the taxpayer experience. Under the Taxpayer Bill of Rights, every taxpayer has fundamental rights of which they should be aware when dealing with the agency.
      

  • 19 Jul 2022 2:31 PM | Anonymous

    WASHINGTON - The Internal Revenue Service is reminding the estimated 19 million taxpayers who requested an extension to file their 2021 tax return that they don’t have to wait until mid-October to file. If a taxpayer has all the necessary information to file an accurate return, they can file electronically at any time before the October deadline and avoid a last-minute rush to file.

    Taxpayers who requested more time to file an accurate return have until Oct. 17, 2022. Those who have what they need to file, however, should file as soon as possible to avoid delays in processing their return.

    Taxpayers who have questions can get help with most tax issues online or by phone. The IRS.gov website has free and easy to use online tools and resources to help taxpayers get answers 24 hours a day. Voice bots help callers navigate interactive voice responses to simple payment or notice questions, and quickly get responses to Frequently Asked Questions.

    The Interactive Tax Assistant is a tool that provides answers to several tax law questions specific to individual circumstances based on input. It can determine if an individual must file a tax return, their filing status, if they can claim a dependent, if an income type is taxable, and their eligibility to claim a credit or deduct certain expenses.

    Electronic filing options
    The IRS advises individuals who still need to file a 2021 tax return to file electronically and, if due a refund, to choose direct deposit.

    Filing electronically is fast, accurate and secure, and when an individual chooses direct deposit, their refund goes directly from the IRS into their bank or financial account getting them their refund in the fastest time possible. If they have a prepaid debit card, they may be able to have their refund applied to the card by providing the account and routing number to the IRS. The IRS processes most e-filed returns and issues direct deposit refunds in less than 21 days.

    Eligible individuals can use the IRS Free File program to prepare and file their 2021 federal tax return for free. Taxpayers can choose the brand-name tax preparation software company that is best for them. Some even offer free state tax return preparation. Those who earned more than $73,000 have the option to use IRS Free File Fillable Forms.

    MilTax online software is also available for members of the military and certain veterans, regardless of income. This software is offered through the Department of Defense. Eligible taxpayers can use MilTax to prepare and electronically file their federal tax returns and up to three state returns for free.

    Volunteer Income Tax Assistance
    The IRS's Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to people who generally make $58,000 or less and people with disabilities or limited English-speaking taxpayers. While the majority of these sites are only open through the end of the filing season, taxpayers can use the VITA Site Locator tool to see if there’s a community-based site staffed by IRS-trained and certified volunteers still open near them. 

    Tax professionals
    There are also various types of tax return preparers who can help, including certified public accountants, enrolled agents, attorneys and others who don't have a professional credential.

    Taxpayers should choose a tax preparer wisely. For individuals who want help with their taxes, the IRS online directory can assist in finding a tax professional in their area.

    Get current on taxes
    The IRS sends correspondence to a taxpayer’s last known address, usually the address from their most recently filed tax return. If the taxpayer moves and does not send a change of address to the IRS, they may not receive an IRS notice and could miss the deadline to respond.

    There's no penalty for not filing a return if due a refund, but there’s also no statute of limitations for assessing and collecting taxes due if no return has been filed.

    Interest is charged on any tax not paid by the April due date and will accrue until paid in full. Individual taxpayers are charged the federal short-term interest rate plus 3 percentage points, currently 5% per year, compounded daily. Penalties will accrue for each month tax remains unpaid until maxed out at 25% of the unpaid tax.

    Submitting a tax return and paying any amount owed as soon as possible can help taxpayers avoid further interest and penalties.

    Taxpayers who owe taxes can review all payment options online. These include paying taxes through an Online Account with IRS Direct Pay or paying by debit card, credit card or digital wallet. The IRS has options for people who can't pay their taxes, including applying for a payment plan on IRS.gov.

    For more information, see:


  • 19 Jul 2022 2:30 PM | Anonymous

    WASHINGTON – The Security Summit partners today encouraged tax professionals to increase their efforts to inform clients about the IRS Identity Protection PIN Opt-In Program to help protect people against tax-related identity theft.

    The IP PIN serves as a critical defense against identity thieves. The IRS, state tax agencies and the nation’s tax industry – working together as the Security Summit  – need assistance from tax professionals to let their clients know that IP PINs are now available to anyone who can verify their identity.

    Sharing information about the IP PIN Opt-In Program is the first in a five-part weekly summer series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data – and their businesses. The series is an effort to urge tax professionals to intensify efforts to secure their systems and protect client data during the summer and throughout the year. These alerts will be issued each Tuesday for five weeks to coincide with the IRS Nationwide Tax Forums, which helps educate tax professionals on security and other important topics.

    “These identity protection numbers provide an extra layer of safety to protect people against tax-related fraud tied to using stolen personal information,” said IRS Commissioner Chuck Rettig. “Following work by the IRS, the IP PIN program is now available to anyone who can verify their identity. We urge tax professionals to encourage their clients to protect themselves through the IP PIN program.”

    The Electronic Tax Administration Advisory Committee, or ETAAC, last month highlighted the importance of the IP PIN to taxpayers and tax professionals.

    “The IP PIN is the number one security tool currently available to taxpayers from the IRS,” the independent advisory group said in its annual report to Congress. “This tool is the key to making it more difficult for criminals to file false tax returns in the name of the taxpayer. In our view, the benefits of increased IP PIN use are many.”

    The ETAAC also recommended the IRS continue to highlight and promote the IP PIN through a public awareness effort. The IRS will be taking steps to do that, including building off awareness of special items including  Publication 5367, IP PIN Opt-In Program for Taxpayers, in English and Spanish, so that tax professionals could print and share the IP PIN information with clients. There are also special posters available in English and Spanish.

    For security reasons, tax professionals cannot obtain an IP PIN on behalf of clients. Taxpayers must obtain their own IP PIN.

    Summit partners urged taxpayers and tax professionals to be careful and protect the IP PIN from identity thieves. Taxpayers should share their IP PIN only with their trusted tax prep provider. Tax professionals should never store clients’ IP PINs on computer systems. Also, the IRS will never call, email or text either taxpayers or tax preparers to request the IP PIN.

    Tax professionals who experience a data theft can assist clients by urging them to quickly obtain an IP PIN. Even if a thief already has filed a fraudulent return, an IP PIN would still offer protections for later years and prevent taxpayers from being repeat victims of tax-related identity theft.

    Here are a few things taxpayers should know about the IP PIN:

    • It’s a six-digit number known only to the taxpayer and the IRS.
    • The opt-in program is voluntary.
    • The IP PIN should be entered onto the electronic tax return when prompted by the software product or onto a paper return next to the signature line.
    • The IP PIN is valid for one calendar year; taxpayers must obtain a new IP PIN each year.
    • Only taxpayers who can verify their identities may obtain an IP PIN.
    • IP PIN users should never share their number with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email or text a request for the IP PIN.

    To obtain an IP PIN, the best option is the Get an IP PIN, the IRS online tool. Taxpayers must validate their identities through Secure Access authentication to access the tool and their IP PIN. Before attempting this rigorous process, see Secure Access: How to Register for Certain Online Self-Help Tools.

    If taxpayers are unable to validate their identity online and if their income is $72,000 or less, they may file Form 15227, Application for an Identity Protection Personal Identification Number. The IRS will call the telephone number provided on Form 15227 to validate their identity. However, for security reasons, the IRS will assign an IP PIN for the next filing season. The IP PIN cannot be used for the current filing season.

    Taxpayers who cannot validate their identities online, or on the phone with an IRS employee after submitting a Form 15227, or who are ineligible to file a Form 15227 may call the IRS to make an appointment at a Taxpayer Assistance Center. They will need to bring one picture identification document and another identification document to prove their identity. Once verified, the taxpayer will receive an IP PIN via U.S. Postal Service within three weeks.

    The IP PIN process for confirmed victims of identity theft remains unchanged. These victims will automatically receive an IP PIN each year.

    Additional resources
    Tax professionals also can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data, and Small Business Information Security: The Fundamentals by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well.

    Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media.

    For more information, see go to IRS.gov.


  • 15 Jul 2022 11:19 AM | Anonymous

    Revenue Ruling 2022-14 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

    The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

    Revenue Ruling 2022-14 will be in IRB:  2022-31, dated August 1, 2022.


  • 14 Jul 2022 4:22 PM | Anonymous

    WASHINGTON — The IRS today issued a revised set of frequently asked questions for the 2021 Child Tax Credit. These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-32, July 14, 2022.

    The FAQ revisions are:

    Topic B — Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Removed question 7 and renumbered question 8.

    More information about reliance is available.


  • 14 Jul 2022 10:09 AM | Anonymous

    WASHINGTON — The Internal Revenue Service and the Federal Trade Commission will sponsor a free webinar designed to help everyone recognize and combat tax scams and tax-related identity theft.

    The webinar will also explain how any individual taxpayer can receive an added layer of identity protection by applying for an Identity Protection Personal Identification Number (IP PIN) from the IRS.

    The one-hour webinar will take place on Wednesday, July 20 at 2 p.m. Eastern Time. Open to all, the webinar will cover the following topics:

    • Common consumer and tax-related identity theft scams.
    • Methods for reporting and recovering from identity theft.
    • How identity thieves trick their victims into providing personally identifiable and financial information.
    • IRS’s Identity Protection Personal Identification Number Program.
    • How to avoid unscrupulous tax return preparers.
    • Resources to protect against identity thieves.
    • How the Security Summit is working to protect taxpayers.

    The webinar will be closed captioned and feature a question-and-answer session. To register for the webinar, visit the Internal Revenue Service Webinar Registration page on IRS.gov. For questions about the webinar, send an email to cl.sl.web.conference.team@irs.gov.

    Whether attending the webinar or not, anyone can get more information about recognizing and combating tax-related ID theft at IRS.gov/identitytheft. To apply for an IP PIN or for more information about the Identity Protection Personal Identification Number program, visit IRS.gov/ippin.


  • 13 Jul 2022 12:09 PM | Anonymous

    WASHINGTON — With millions of people still waiting to file their tax returns, the IRS reminds them to file as soon as possible and take advantage of special tools available on IRS.gov that can help them file.

    Summer may be a busy time for many, but it’s a great time to start tax planning - whether you still need to file a 2021 tax return or start planning for next year’s tax season. IRS.gov is the fastest and most convenient way to get tax-related information and help. The online tools are available any time, so taxpayers can use them at their convenience.

    Here are some important reasons for taxpayers to visit IRS.gov this summer.

    Get tax information 24/7
    Taxpayers can use IRS.gov to:

    • View the filing page to get information on most federal income tax topics.
    • Access the Interactive Tax Assistant tool for answers to many tax law questions.
    • Sign into their individual IRS online account to view their balance an tax records, manage communication preferences, make payments and more. 
    • Find the most up-to-date information about their tax refunds using the Where's My Refund? tool. Taxpayers can check the status of their refund 24 hours after the IRS acknowledges receipt of an e-filed return.

    Taxpayers can also download the official IRS mobile app, IRS2Go, to check their refund status, make payments, find free tax preparation assistance, sign up for helpful tax tips and more.

    Adjust withholding now to avoid tax surprises next year
    Summer is a great time for taxpayers to check their withholding to avoid a tax surprise next filing season. Life events like marriage, divorce, having a child or a change in income can affect taxes.

    The IRS Tax Withholding Estimator on IRS.gov helps employees assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding. If a change is recommended, the estimator will provide instructions to update their withholding with their employer either online or by submitting a new Form W-4, Employee's Withholding Allowance Certificate.

    File electronically
    Taxpayers who requested an extension to Oct. 17 or missed the April 18 deadline can still prepare and e-file returns for free with IRS Free File, if they qualify. The IRS accepts electronically filed returns 24/7. There’s no reason to wait until Oct. 17 if filers have all the information and documentation they need to file an accurate return today. They can get their refund faster by choosing direct deposit.

    Taxpayers who missed the April 18 deadline and owe should file and pay electronically as soon as possible to reduce penalties and interest. Taxpayers can make payments or set up payment plans online at IRS.gov/payments.

    Find a taxpayer assistance center
    The Taxpayer Assistance Center Locator tool has a new look and feel, featuring a dynamic map, a directions button and two tabs for inputting search criteria. It’s important to remember that Taxpayer Assistance Centers operate by appointment only. Taxpayers can make an appointment by calling the number for the office they want to visit.

    Read information in other languages
    Many pages on IRS.gov are now available in Spanish, Vietnamese, Russian, Korean, Haitian Creole and Chinese. Some of the multilingual resources include the Taxpayer Bill of Rights, e-file resources and many tax forms and publications.

    Access the Alternative Media Center
    At the online Alternative Media Center (AMC), taxpayers will find a variety of accessible products to help with the use of assistive technology such as 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 PDFs, 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. To request paper copies of tax forms or instructions or publications in Braille or large print, taxpayers can call the tax form telephone number at 800-829-3676. Taxpayers can complete Form 9000, Alternative Media Preference, to choose to receive their IRS tax notices in Braille, large print, audio or electronic formats. This includes notices about additional taxes or penalties owed. Taxpayers can include the completed form with their tax return, mail it as a standalone form to the IRS or they can call 800-829-1040.

    Keep current with IRS Tax Tips
    Taxpayers can subscribe to IRS Tax Tips to get easy-to-read articles sent directly to their e-mail from the IRS. Tax Tips are brief, to the point and cover various tax topics, like year-round tax planning and understanding taxpayer rights.

    More helpful links:


  • 13 Jul 2022 9:54 AM | Anonymous

    A recent legislative change requires taxpayers to submit all of their income tax payments electronically if:

    • Any estimated tax payment exceeds $1,500; or
    • Any extension payment exceeds $1,500; or
    • The total anticipated income tax liability in any taxable year exceeds $6,000.

    Individual taxpayers should start making all of their payments electronically if any of the above conditions apply to them. This includes all payments for estimated taxes, extension payments, and any other amounts due when a taxpayer files a return. 

    We’re sending letters to taxpayers who may meet this requirement with their estimated tax payment, which is due September 15.

    Visit the Virginia Tax website for more information on individual income tax payment options.  

    If you have questions, please call us at 804.367.8031. 


  • 12 Jul 2022 3:09 PM | Anonymous

    WASHINGTON — The Internal Revenue Service, one of the largest single employers of professional accountants, is now hiring 470 revenue agents who will specialize in auditing or examining both individual and business taxpayers nationwide.

    Known officially as Internal Revenue Agents, these positions are at Grades 5-12 in the federal civil service system with a base pay ranging from $31,083 to $68,299.

    New hires will join the agency’s Small Business Self Employed (SB/SE) division, where they will combine talents in accounting and tax law to examine and determine the correct tax liability for a variety of both individual and business taxpayers, including sole proprietorships, small corporations, partnerships, and fiduciaries. They will also be responsible for identifying potential fraud, tax schemes and abusive tax shelters.

    To qualify for one of these positions, an applicant must have a Bachelor's or higher degree in accounting from an accredited college or university that includes:

    • At least 30 semester hours (45 quarter hours) in accounting, or
    • 24 semester hours in accounting and an additional 6 semester hours in related subjects such as business law, economics, statistical/quantitative methods, computerized accounting or financial systems, financial management or finance, or
    • A combination of experience and education or a certificate as a Certified Public Accountant.

    Throughout July, The IRS is holding a series of virtual Information Sessions for interested applicants. These sessions provide an overview of the position, benefits of working at the IRS, how to apply for the position, and a Q&A session. Here is the schedule:

    • July 14, 2022 – 3:00PM (ET)
    • July 18, 2022 – 1:00PM (ET)
    • July 21, 2022 – 3:00PM (ET)
    • July 25, 2022 – 3:00PM (ET)

    To attend any of these events, register at USAJOBS - Events.


  • 12 Jul 2022 1:05 PM | Anonymous

    1.  2022 IRS Nationwide Tax Forum launches next week

    This Thursday, July 14, is the last day to register for the 2022 IRS Nationwide Tax Forum and have access to all 32 webinars, including the keynote address by IRS Commissioner Chuck Rettig. The five-week program, fully virtual this year, begins Tuesday, July 19 and runs through Thursday, Aug. 18.

    The IRS Nationwide Tax Forum is a once-a-year opportunity for tax professionals to:

    • Learn the latest in tax law along with hot topics like cybersecurity and virtual assets
    • Earn up to 28 continuing education (CE) credits
    • Get reliable information directly from the IRS
    • Visit industry-leading vendors in the Virtual Expo
    • Participate in IRS focus groups

    For a closer look at the tax forum, watch the Five Things to Know segment on Tax Talk Today.


    2.  Webinar schedule

    This year’s tax forum includes 32 livestreamed webinars, offered Tuesdays, Wednesdays and Thursdays from July 19 to Aug. 18. Visit the IRS Nationwide Tax Forum website for a detailed schedule and the topic descriptions for this year’s webinars. The live webinars are not recorded and only available on the date/time listed in the schedule.


    3.  Spanish language webinars

    This year, the IRS Nationwide Tax Forum is doubling its offering of Spanish webinars and will deliver the following:

    • Inmersión Profunda en Delitos Cibernéticos Emergentes y el Cumplimiento de Impuestos en Criptomonedas (Deeper Dive into Emerging Cyber Crimes and Crypto Tax Compliance)
    • Obligaciones de Responsabilidad Profesional al practicar delante del IRS: OPR y la Circular 230 (Professional Responsibility Obligations When Practicing Before the IRS: OPR and Circular 230)
    • Cambios en la ley tributaria para el año tributario 2022 (Tax Law Changes for TY2022)
    • Filtración de información de profesionales de impuestos y cómo los profesionales de impuestos pueden protegerse a sí mismos (Tax Professional Data Breaches and How Tax Pros Can Protect Themselves)


    4.  Virtual Expo

    Registration for the 2022 IRS Nationwide Tax Forum includes access to the Virtual Expo, where attendees can meet with commercial vendors, IRS tax professional association partners and representatives from many parts of the IRS itself. Hours for the expo are 12-2 p.m. ET and 3-5 p.m. ET, every Tuesday, Wednesday and Thursday during the five-week tax forum program.

    Exhibitors include:

    • Dozens of tax software and financial services firms
    • The American Bar Association Section of Taxation, American Institute of CPAs, National Association of Enrolled Agents, National Association of Tax Professionals, National Society of Accountants and National Society of Tax Professionals.
    • IRS program offices including the Taxpayer Experience Office, Multilingual Engagement and Services, and Return Preparer Office

    The expo also features bonus question and answer sessions with webinar presenters in the “Speaker’s Corner” and live webinars from tax forum sponsors.


    5.  Focus groups and digital product demonstrations

    Registered attendees can also participate in IRS focus groups. This year’s focus groups are arranged around the following topics:

    • Improving the Taxpayer Experience and IRS Services
    • Improving the Taxpayer Experience and IRS Outreach
    • Tax Pro Account and Business Online Account
    • Digital Asset Transactions
    • Tax Treatment of Retirement Distributions
    • Affordable Care Act Forms
    • IRS Online Accounts
    • Responding to IRS Correspondence Audit Notices
    • Taxpayer civil rights: Are your clients receiving the services they need?
    • Online tools and resources for refundable credits: The past, the present, and the future

    In addition, the IRS Office of Online Services will conduct demonstrations of IRS digital products.

    Check out the tax forum focus group descriptions for this year’s topics, dates and times, and qualifying criteria.


    6.  Continuing education credit

    Each live webinar will last for approximately 60 minutes and will qualify for one continuing education (CE) credit.* The maximum number of CE credits earned at the 2022 virtual tax forum is 28. While no knowledge-based test is required, attendees must fulfill the following requirements to receive credit for a webinar:

    • Be present for the entire 60-minute presentation
    • Respond to all attendance checks throughout the presentation
    • Complete the survey at the end of the presentation

    *Note: In the event a registrant attends both the English and Spanish language versions of a webinar, the registrant will receive one CE credit for that webinar.


    7.  Registration information

    For more information about this year’s IRS Nationwide Tax Forum and to register, visit www.irstaxforum.com.


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is a 501(c)6 non-profit organization.

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