IRS Challenges

Challenges faced by the IRS last year continue, said the Government Accountability Office (GAO). Recently, a GAO Director, Jessica Lucas-Judy, listed some of the issues in a testimony before the U.S. Senate Finance Committee. Issues include soaring telephone demand, rising correspondence inventory, limited online information, and a decline in in-person services. “The outcome,” said Lucas-Judy, […]

TAP seeking new members

Here’s your chance to tell the IRS what you really think. The Taxpayer Advocacy Panel (TAP) is seeking new members now through April 8. Members serve a three-year term and represent all 50 states, as well as Washington D.C. and Puerto Rico. They provide an ordinary taxpayer perspective to the IRS and recommend ways to […]

Where’s my refund

If you’re a “box checker” and have already checked off “filing my taxes” from your to-do list, congratulations. Now you may be wondering, “where’s my refund?” To find out, pull out your smart phone and download the IRS’s mobile app, IRS2GO. The IRS says your refund status should be available within 24 hours after it […]

Premium Tax Credits

The IRS has posted a fact sheet to its website containing new and updated FAQs on the Premium tax credit (PTC). A PTC is available to certain low and moderate income individuals enrolling in a qualified health plan through the Health Insurance Marketplace. Taxpayers enrolling in Marketplace insurance may choose to have an estimated credit […]

Tax News on the OIC

Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) with the IRS to settle the debt for less than the amount owed. In one case, the IRS rejected a taxpayer’s request for an OIC and proceeded to collect his outstanding liabilities. After performing a financial analysis, the IRS […]

Tax News on tips

Like most income, tips in the service industry are taxable. It doesn’t matter if tips are paid directly in cash or added to payments by credit, debit or gift cards, or shared with coworkers. Noncash tips, such as tickets or passes are also taxable. To correctly report tip income, the IRS advises taxpayers to keep […]

Tax News

Having “seriously delinquent tax debt” could put your passport at risk (unless an exception applies). This generally means that the assessed tax debt is at least $55,000 in 2022, a lien has been filed and other remedies have been exhausted. If such conditions exist, the U.S. State Dept. can deny, revoke or limit a passport. […]

Ukraine in Tax News

Just before Russia invaded Ukraine on Feb. 23, President Biden announced sanctions against two Russian banks and those doing business in the so-called “Donetsk People’s Republic” and “Luhansk People’s Republic” regions of Ukraine. More sanctions are expected now that the invasion is underway. U.S. individuals and companies with overseas business are encouraged to review reporting […]

Tax News

Along with seemingly everything else, interest rates for federal tax overpayments and underpayments are going up. The IRS has announced that, starting in 2022’s second quarter (April 1), the new rates are 4% for overpayments and underpayments. For corporations, the rate for overpayments is 3% (1.5% for any amount exceeding $10,000) and 6% for underpayments […]

Tax News

If you want to register for an IRS Online Account, you’ll no longer be subjected to the use of biometric data, including facial recognition. According to the IRS, taxpayers now have the option of verifying their identity during live, virtual interviews with IRS agents. With an Online Account, taxpayers can, among other things, access tax […]