Every year, the IRS accepts several batches of tax returns to test in a Controlled Launch before they are officially open. Every tax season about a week in advance the IRS routinely runs a Controlled Release Process(“HUB Testing”) from various e-file providers (including free online e-file services) every year to test their systems. A small…
Most of us would not intentionally commit tax fraud. Being convicted of filing fraudulent tax returns can put a crimp in your professional life, not to mention the possibility of going to prison. Yet, some people commit tax crimes without even knowing it. When US tax returns are filed, you sign on the bottom line…
As tax season approaches, many individuals find themselves wondering when they can file their taxes. While the official tax filing deadline is typically April 15th in the United States, the good news is that you can file your taxes much earlier than that. In fact, the earliest you can file your taxes each year is…
2023 IRS E-File Refund Cycle Charts The IRS will begin accepting 2022 tax returns on January 23, 2023, with nearly 165 million individual tax returns expected to be filed in 2023. The nation’s tax deadline will be April 18 this year. Many tax software companies and tax professionals will be accepting tax returns before Jan. 23 and then…
The IRS watchdog reported this week that the agency is unlikely to eliminate a huge backlog of tax returns this year, again leaving many U.S. taxpayers waiting for their returns and their tax refunds to be processed. “The delays in processing backlogged tax returns continue to burden taxpayers,” the report released Thursday from the Treasury…
As a result of taxpayer confusion, lack of clear guidance, concerns about the existing backlog, and impact on the upcoming filing season, industry and stakeholders urged the IRS to postpone the implementation of the new reporting requirements of Forms 1099-K. Good news: The IRS listened, and on Friday, December 23, the IRS issued Notice 2023-10 delaying the…
The 2022 tax season is right around the corner, and now is a great time to start thinking about your upcoming tax return and refund. There have been many tax changes in 2022 that could have an impact on your return in 2023. Preparing ahead is the best way to ensure you can save money…
Several tax changes are effective in 2022. Some of the more significant changes are: Child Tax Credits Charitable Contribution Limitations Health Savings Accounts Expired Tax Benefits Standard Deduction and Capital Gains Adjustments Retirement Matters Business Matters New 1040 Form for 2022 For information about any additional changes to the 2022 tax law or any other…
With tax season approaching, the Internal Revenue Service (IRS) is again warning consumers and companies to avoid “ghost” tax return preparers. Are you a ghost preparer? Tax preparer fraud is a perennial issue and one which the IRS takes very seriously. All tax preparers in the U.S. are required to identify their role in preparing a return…
IRS Reference Code 1242
IRS Reference Code 1242 is a processing code the IRS uses to review tax returns it thinks might be fraudulent. The IRS will hold your return until they can validate certain information on it. The IRS has standard operating procedures for every tax account that is processed. The IRS system collects tax returns, and also…