IRS Activities Following the Shutdown

NSTP2019 Tax Season, Internal Revenue Service (IRS)

IRS Activities Following the Shutdown

The IRS has reopened following the end of the government shutdown, and IRS employees are working hard to resume normal operations and help taxpayers as much as possible. As the IRS resumes operations, there are some important pieces of information for taxpayers and tax professionals to keep in mind in several areas: Audits. For taxpayers and tax professionals with questions about examinations affected by the shutdown, we have Frequently Asked Questions. The IRS also had advice for taxpayers who had planned to send material to their IRS auditor but didn’t because of the government shutdown. The IRS recommended that If taxpayers have already assembled the requested material, they can immediately send the material to their auditor. “You may call your auditor to discuss any items on your document request if you need clarification,” said the IRS. “Your auditor will also be reaching out to you to re-establish contact in the next several business days. During this contact, your auditor will be able to answer questions you have and will address the time frame on when the requested information is due.” Collections. For taxpayers and tax professionals with collection issue affected by the shutdown, visit the Frequently Asked Questions. This section … Read More

Note These Key 2019 Tax Filing (and Paying) Deadlines

NSTPFiling Dates, Internal Revenue Service (IRS)

Note These Key 2019 Tax Filing and Paying Deadlines

The 2019 tax filing season started on Monday, January 28. That’s when the Internal Revenue Service started accepting and, more importantly, processing tax returns. Mark your calendars for this year’s key filing dates: January 28, 2019: Filing season 2019 begins. If a taxpayer filed early, either using Free File, tax software on their own or with the help of a paid tax preparer, the returns have been on hold and should now be sent and enter the IRS processing system. January 31, 2019: This is the deadline for employers to mail their workers the Forms W-2 and for 1099 forms to be issued with details of contract payments, investment income and retirement plan distributions. Today also is important if a taxpayer did not make their last 2018 tax year estimated tax payment by January 15. If they file the full tax return for the year by January 31 and pay any tax due with the filing, they will avoid any penalty for late payment of the last installment. This is a little less pressing this year, since the IRS has announced it’s granting some underpayment leeway due to confusion created by the changes under the Tax Cuts and Jobs Act. February 15, 2019: For financial institutions, this … Read More

IRS Announces On-Time Tax Season Opening and Projected Refund Dates

NSTP2019 Tax Season, Internal Revenue Service (IRS)

IRS Announces On-Time Tax Season Opening and Refund Dates

IRS has announced that it successfully opened the 2019 tax-filing season on Monday, January 28, 2019, as planned. Projected timing of refund payments. IRS expects the first refunds to go out in the first week of February and many refunds to be paid by mid-to-late February like previous years. IRS expects to issue more than nine out of 10 refunds in less than 21 days. However, it’s possible a tax return may require additional review and take longer. IRS’s Where’s My Refund has the most up to date information available about refunds. The tool is updated only once a day, so taxpayers don’t need to check more often. IRS also notes that refunds, by law, cannot be issued before February 15 for tax returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). This applies to the entire refund—even the portion not associated with the EITC and ACTC. While IRS will process the EITC and ACTC returns when received, these refunds cannot be issued before February 15. Similar to last year, IRS expects the earliest EITC/ACTC related refunds to actually be available in taxpayer bank accounts or on debit cards starting on February 27, 2019, … Read More

IRS REOPENS INCOME VERIFICATION SERVICE DESPITE SHUTDOWN

NSTPIncome Verification Service (IVES), Internal Revenue Service (IRS)

Despite the partial government shutdown, the Internal Revenue Service has reopened the Income Verification Express Service used by mortgage lenders to verify borrowers’ income, relying on user fees to help pay the salaries of IRS employees working in the unit. The inability to process the tax transcript forms was holding up mortgage applications around the country. As a result, 400 furloughed IRS employees were called back to work on Monday in Cincinnati, Ohio; Ogden, Utah; Kansas City, Missouri; and Fresno, California. The IRS announced last Monday that it was calling back a number of employees to help with tax season, the new tax law, and to make sure tax refunds are processed in time. In a statement last week, the IRS explained its decision to reopen the IVES service. “While the IRS remains closed during the partial government shutdown, the agency recognizes the immediate hardship incurred if information is not available through the Income Verification Express Service (IVES) program as well as by taxpayers who have been unable to certify their residency in the United States for certain tax treaty benefits or by those who have been unable to obtain photocopies of tax returns,” said the IRS statement. “Following an extensive … Read More