ASAP: Taxpayers should check withholding

NSTPInternal Revenue Service (IRS), Paycheck Checkup

ASAP: Taxpayers Should Check Withholding

ASAP: Taxpayers should check withholding All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important: Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP. Taxpayers should also check their withholding when life changes occur. These changes include things like: Marriage or divorce Birth or adoption of a child Purchase of a home Retirement Chapter 11 bankruptcy New job or loss of job Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like: Interest Dividends Capital gains Self-employment and gig economy income IRA distributions, including … Read More

IRS Re: Disclosure to Spouses Who Filed Joint Returns and then Divorced or Separated

NSTPInternal Revenue Service (IRS), Taxpayer

Disclosure to Apouses Who Filed Joint Returns and then Divorced or Separated

IRS’s Small Business/Self-Employed Division has issued guidance to its employees regarding what collection activity information can and cannot be disclosed with respect to a couple’s joint return, where the couple has subsequently divorced or are separated and no longer reside in the same household. (IRS Memo SBSE-05-0419-0010; Interim Guidance on Disclosure of Collection Activities on Joint Returns for Divorced or Separated Spouses) Background. If any tax deficiency with respect to a joint return is assessed, the couple are no longer married or no longer reside in the same household, and either joint filer makes a request in writing, IRS must disclose in writing to the individual making the request whether it has tried to collect the deficiency from the other filer, the general nature of those collection activities, and the amount collected. (Code Sec. 6103(e)(8)) IRS guidance to its employees . Upon receipt of either a verbal or written request from a taxpayer or his authorized representative, IRS may disclose limited information related to the collection of the tax from the other individual with whom the taxpayer filed a joint return when the taxpayer and the other individual are no longer married or are separated and no longer reside in … Read More

IRS Warns of New Phone Scam Using Taxpayer Advocate Service Numbers

NSTPInternal Revenue Service (IRS), Scams

IRS Warns of New Phone Scam Using Taxpayer Advocate Service Numbers

The Internal Revenue Service is warning the public about a new phone scam.  A twist on the IRS impersonation phone scam, criminals fake calls from the Taxpayer Advocate Service (TAS), an independent organization within the IRS. Similar to other IRS impersonation scams, thieves make unsolicited phone calls to their intended victims fraudulently claiming to be from the IRS. In this most recent scam variation, callers “spoof” the telephone number of the IRS Taxpayer Advocate Service office in Houston or Brooklyn. Calls may be ‘robo-calls’ that request a call back. Once the taxpayer returns the call, the con artist requests personal information, including Social Security number or individual taxpayer identification number (ITIN). TAS can help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. TAS does not initiate calls to taxpayers “out of the blue.” Typically, a taxpayer would contact TAS for help first, and only then would TAS reach out to the taxpayer. In other variations of the IRS impersonation phone scam, fraudsters demand immediate payment of taxes by a prepaid debit card … Read More

Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

NSTPInternal Revenue Service (IRS), Passports

Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

Taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. To avoid delays in travel plans, taxpayers need to take prompt action to resolve their tax debt. In January of last year, the IRS began implementing new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act. The law requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt, which is $52,000 or more. The law also requires State to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit ability to travel outside the United States. When the IRS certifies a taxpayer to the State Department as owing a seriously delinquent tax debt, they receive a Notice CP508C from the IRS. The notice explains what steps a taxpayer needs to take to resolve the debt. Please note, the IRS doesn’t send copies of the notice to powers of attorney. IRS telephone assistors can help taxpayers resolve tax debt, for example, they can help taxpayers … 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

ICYMI – TAX FILING SEASON SCHEDULED TO BEGIN JANUARY 28, 2019

NSTP2018 Tax Season

The tax filing season will begin on January 28, in line with previous year’s start dates, despite a partial government shutdown that has only a fraction of the IRS’s staff working, the agency said January 7. The IRS has been testing computer systems during the shutdown, which began Dec. 22, with a bare-bones staff. About 12.5 percent of the agency’s employees are working during the shutdown. Tax refunds will be issued during the shutdown, a reversal of the agency’s policy in recent years, Russell Vought, acting director of the White House Office of Management and Budget, said January 7. In previous shutdown contingency plans, the IRS would accept tax returns during the filing season, but refunds would be delayed until the government was funded. Vought said the administration is fixing what he called a problem faced by past administrations. In the past, the IRS has said it couldn’t issue refunds during a shutdown based on its interpretation of the Anti-deficiency Act, the rules governing what type of government work is permissible during a shutdown to protect life and property. In light of the political popularity of allowing refunds to be processed during the shutdown, it is unlikely OMB would challenge … Read More