Here’s what taxpayers should do if they have missing or incorrect documents
IRS Tax Tip 2021-26, March 1, 2021
Taxpayers should double-check to make sure they have all their documents before filing a tax return.
IRS reminds businesses to report large cash transactions; e-file encouraged
IR-2021-47, February 26, 2021
The Internal Revenue Service today reminds businesses of their responsibility to file Form 8300, Report of Cash Payments Over $10,000, and encourages e-filing to help them file accurate, complete forms.
All taxpayers have the right to pay no more than the correct amount of tax
IRS Tax Tip 2021-23, February 23, 2021
When taxpayers complete their tax returns, they may discover they will owe taxes. By law, they have the right to pay no more than the correct amount of tax.
Virtual currency transactions are taxable by law just like transactions in any other property. Taxpayers transacting in virtual currency may have to report those transactions on their tax returns.
IRS Notice 2014-21, IRB 2014-16
In 2014, the IRS issued Notice 2014-21, 2014-16 I.R.B. 938 PDF, explaining that virtual currency is treated as property for Federal income tax purposes and providing examples of how longstanding tax principles applicable to transactions involving property apply to virtual currency.
Taxpayers have the right to representation when working with the IRS
IRS Tax Tip 2020-152, November 10, 2020
The IRS grouped all of the rights taxpayers have under the law into the Taxpayper Bill of Rights. Included in the list is the right to retain representation.
IR-2020-248, November 2, 2020
The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS assessed its collection activities to see how it could apply relief for taxpayers who owe but are struggling financially because of the pandemic, expanding taxpayer options for making payments and alternatives to resolve balances owed.
Taxpayers should know and understand their correct filing status
Tax Tip 2020-130, October 1, 2020
Taxpayers need to know their correct filing status and be familiar with each option. Generally, the taxpayer's filing status depends on whether they are single or married on Dec. 31 and that determines their status for the whole year. However, more than one filing status may apply in certain situations. If this is the case, taxpayers can usually choose the filing status that allows them to pay the least amount of tax. Click the link above for more information about filing status.
IRS reminds taxpayers of the home office deduction rules during Small Business Week
IR-2020-220, September 23, 2020
During Small Business Week, Sept. 22-24, the Internal Revenue Service wants individuals to consider taking the home office deduction if they qualify. Click the link above for more information about the home office deduction.
Terms to help taxpayers better understand Individual Retirement Arrangements
Tax Tip 2020-129, September 30, 2020
Many taxpayers may have heard of Individual Retirement Arrangements, or IRAs, but some don't know how IRAs help them save for retirement. People can set up an IRA with a bank or other financial institution, a life insurance company, mutual fund or stockbroker. Click the link above for a list of basic terms to help people better understand their IRA options.
Here’s how to get the status of an Economic Impact Payment
COVID Tax Tip 2020-128, September 29, 2020
Eligible individuals can visit IRS.gov and use the Get My Payment tool to find out the status of their Economic Impact Payment. This tool will show if a payment has been issued and whether the payment was direct deposited or sent by mail. In certain situations, this tool will also give people the option of providing their bank account information to receive their payment by direct deposit. Information is updated once a day, usually overnight, so there's no need to check it more than once a day.
How people can reconstruct records lost in a natural disaster
Tax Tip 2020-127, September 28, 2020
Reconstructing records after a disaster is important for several reasons including insurance reimbursement and taxes. Most importantly, records can help people prove their disaster-related losses. More accurately estimated losses can help people get more recovery assistance like loans or grants. Whether it's personal or business property that has been lost or destroyed, click on the link above for some steps that can help people reconstruct important records.
Deadlines to register for an Economic Impact Payment are just around the corner
COVID Tax Tip 2020-126, September 25, 2020
Federal benefit recipients who don't normally have a filing requirement but do have qualifying children must register by Wednesday, Sept. 30 to receive a $500 catch-up payment per child. Other non-filers have until Thursday, October 15 to register for their Economic Impact Payment. Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those who don't choose direct deposit will get a check.
Six tips for people starting a new business
Tax Tip 2020-124, September 23, 2020
Understanding the tax responsibilities that come with starting a business venture can save taxpayers money and help set them up for success. IRS.gov has the resources and answers to help people through the process of starting a new business.
Click the link above for six tips for new business owners.
All taxpayers have the right to be informed
Tax Tip 2020-119, September 15, 2020
When something happens to a taxpayer's account, that taxpayer has the right to be informed about the activity. In fact, this right is one of ten outlined in the Taxpayer Bill of Rights. Click the link above to learn more about your rights.
Some taxpayers may need to make estimated tax payments
Tax Tip 2020-115, September 8, 2020
Some taxpayers earn income not subject to withholding. For small business owners and self-employed people this can mean making quarterly estimated tax payments. Click the link above for some important things taxpayers should know about estimated tax payments:
Tips for taxpayers who need to file an amended tax return
Tax Tip 2020-114, September 3, 2020
The IRS will correct common errors during processing. However, there are certain situations in which a taxpayer may need to file an amended return to make a correction. Taxpayers can now file amended returns electronically. Here are some tips for anyone who discovered they made a mistake or forgot to include something on their tax return. Click the link above to help determine if you should file an amended tax return.
Choosing a trustworthy payroll service provider can protect employers from fraud
Tax Tip 2020-112, September 1, 2020
When hiring a company to handle payroll and payroll tax, employers should carefully choose their payroll service provider. This can help a business avoid missed deposits for employment taxes and other unpaid bills. Most of these businesses provide quality service but there are some who don't have their clients' best interests in mind. Each year, there are a few payroll service providers who don't submit their client's payroll taxes and close down abruptly. The damage hits their unsuspecting clients hard. Typically, these clients remain legally responsible for paying the taxes due, even if the employer sent funds to the payroll service provider for required deposits or payments. Employers should understand their payroll and employment tax responsibilities and choose a trusted payroll service to handle this important job. Click the link above for your options.
The Internal Revenue Service today issued a memorandum that provides interim guidance to the agency’s compliance staff on requests to designate issues for litigation. Designation of issues for litigation, a decision that is made with the Office of Chief Counsel, limits a taxpayer's opportunity to administratively resolve their case with the IRS Independent Office of Appeals. Disputes between the IRS and taxpayers over designated issues must be resolved through litigation. The IRS took this step to update and clarify its designation procedures as part of its implementation of the Taxpayer First Act (TFA) enacted in July 2019. Click the link above for more information.