The deadline for taxpayers who requested an extension to file is Oct. 15, 2024, and some may choose to hire a tax return preparer. Those who do need to understand how to choose a tax preparer wisely and how to work with them. What to consider when choosing a tax return preparer Taxpayers should keep these things in mind when looking for a tax return preparer. • Make sure the […]

WASHINGTON — The Internal Revenue Service today announced tax relief for individuals and businesses in four states affected by Hurricane Debby. Affected taxpayers in South Carolina, North Carolina, Florida and Georgia now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, this applies to: […]

There are two education tax credits designed to help offset education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit. Eligibility requirements For both tax credits, to be eligible: The taxpayer, their spouse or their dependents must take post-high school coursework in tax year 2024. The student must have a Form 1098-T, Tuition Statement, from an eligible educational institution. There are exceptions for some students. Things taxpayers should know about the education tax […]

When a taxpayer can’t pay their full tax debt or if paying would cause financial hardship, they should consider applying for an Offer in Compromise. For assistance filing for an OIC from a legitimate representative, taxpayers are encouraged to check for a licensed enrolled agent or a reputable accountant in their area. How an Offer in Compromise works This is an agreement between a taxpayer and the IRS that settles a […]

WASHINGTON – In day seven of the Dirty Dozen tax scam series, the Internal Revenue Service and Security Summit partners today alerted taxpayers to be on the lookout for unscrupulous tax preparers who could encourage people to file false tax returns and steal valuable personal information. A common problem seen annually during tax season, “ghost preparers” pop up to encourage taxpayers to take advantage of tax credits and benefits for […]

Taxpayers can check the status of their refund easily and conveniently with the IRS Where’s My Refund tool at IRS.gov/refunds. Refund status is available within 24 hours after the taxpayer e-filed their current year return. The tool also gives the taxpayer a personalized refund date after the IRS processes the return and approves the refund. Where’s My Refund tool updates Recent updates to the tool mean fewer taxpayers will need to call […]

WASHINGTON – The Internal Revenue Service announced today that compliance efforts around erroneous Employee Retention Credit (ERC) claims have topped more than $1 billion so far since last fall as work continues on a number of efforts to counter questionable claims pushed by aggressive marketing, including an aggressive push on claims made for 2021. “The IRS has made important progress in our compliance efforts protecting more than $1 billion in […]

WASHINGTON – As the April 15 filing deadline approaches, the Internal Revenue Service issued a reminder to taxpayers on ways to prevent typical errors on their federal tax returns to help speed potential refunds. Collect all tax-related paperwork Taxpayers should collect all key documents, including Forms W-2 and 1099, as well as any supporting paperwork for tax deductions or credits such as educational credits or mortgage interest payments. Additionally, having […]

Inside This Issue Businesses: Review Employee Retention Credit claims by key March 22 deadline for incorrect credits; take action to avoid future issues Know the facts about receiving Form 1099-K in 2024 IRS improves Where’s My Refund? tool for 2024 What to know before completing a tax return Interest rates remain the same for the second quarter of 2024 Electronically filed returns rejected for missing Form 8962 Taxpayers impacted by […]

Some unscrupulous promoters have marketed misleading information about Employee Retention Credit eligibility rules to well-intentioned businesses. The IRS is highlighting seven suspicious signs and urging business to seek a trusted tax professional to resolve an incorrect claim while they still can without penalties or interest. There’s a deadline of March 22, 2024, for the ERC Voluntary Disclosure Program, which lets businesses who filed a claim in error and received a […]