Can the IRS disclose your personal information?

What can happen if the IRS discloses your personal information? It depends. In one case, a taxpayer involved in a collection due process hearing fired her representative and hired a new one. The IRS sent the determination to the fired rep, rather than her new one and then proceeded with collection activity against her. She […]

Need an Amended return?

The deadline to file 2021 tax returns is now in the rearview mirror for most people. But what if you owe tax and didn’t request a filing extension? You should file soon to limit interest and penalties. Here are some after-tax-day tips from the IRS: Make a full or partial payment online by debit or […]

Not-for-Profit deadline looms

Most tax-exempt organizations must file certain 2021 returns with the IRS by May 16, 2022. Last week, the IRS reminded calendar year not-for-profits of this deadline for submitting Forms 990, 990-N, 990-T and 4720 electronically. In fact, electronic filing is mandatory, generally through an IRS-authorized e-file provider. If organizations can’t meet the May 16 deadline, […]

Upgrade needed

The IRS desperately needs an IT upgrade. That, in a nutshell, was IRS Commissioner Charles Rettig’s recent message to a U.S. House subcommittee. As Rettig testified, the agency still uses some technology placed in service in the 1960s and 1970s. This means staffers can only slowly work their way through the IRS’s much-criticized backlog of […]

IRS Customer Service

Groups representing tax lawyers and accountants have repeated calls for the IRS to act immediately to improve customer service, including the suspension of automated notices. As you may know, the agency is struggling to process a huge backlog of returns. One group, the American Institute of Certified Public Accountants (AICPA), said the IRS should discontinue […]

Miss the deadline?

The IRS is encouraging individuals who missed last Monday’s tax filing deadline to file as soon as possible. If you’re due a refund, you won’t receive a penalty for filing late. If you owe the IRS and missed the deadline without requesting an extension, filing sooner can limit the amount of penalties or interest assessed. […]

Early withdrawal penalty for IRAs

At tax time, age matters. Taxpayers under age 59½ who take distributions from their retirement plans must generally pay an added tax penalty, equal to 10% of the distribution. Exceptions exist, including the need to pay documented medical bills (subject to statutory limitations). When one taxpayer under age 59½ lost his job, he took a […]

IRS notices on 1099s coming soon

If your business issued Forms 1099 for 2021, you may soon hear from the IRS. Twice a year, the IRS sends notices (CP2100 and CP2100A) informing financial institutions, businesses and other payers that issued Forms 1099 about errors or omissions. If the names and/or taxpayer ID numbers (TINs) on the 1099s are missing or don’t […]

Penalty relief for Employee Retention Credit

Relief is available to businesses if they owe penalties for additional income tax due to retroactive employee retention credit (ERC) claims. The ERC is a refundable credit claimed on employment tax returns. The IRS requires employers to reduce the income tax deduction for “ERC qualified wages” by the amount of ERC the employer received for […]

Child and Dependent Care Credits

The Treasury Inspector General for Tax Administration (TIGTA) has weighed in on the IRS’s implementation of the expanded Child and Dependent Care Credit (CDCC). The CDCC was expanded temporarily by the American Rescue Plan Act for Tax Year 2021 for certain taxpayers. But TIGTA, which provides independent oversight of the IRS, issued 11 alerts to […]