Whether it’s something they’ve been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year’s tax return. What the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or…
I sent a payment to the IRS. Why did I get a bill? If you mailed payment to the IRS on or before July 15, it may still be unopened in the backlog of mail the IRS is processing due to COVID-19. The IRS will process your payment with the date the IRS received it. Do…
Few things can generate as much taxpayer concern, confusion and controversy as an IRS audit. Tax audits are a critical compliance tool to help ensure fairness in the tax system, and the IRS works hard to ensure the agency’s audit selection process is fair and impartial. Decisions to conduct audits are based on the financial…
The Taxpayer Advocate Service (TAS) reintroduces its website with a new design and layout featuring a new digitally interactive Taxpayer Roadmap. The digital Taxpayer Roadmap features an interactive experience which allows taxpayers and tax professionals to navigate through the IRS tax process and view notices along the way. The newly designed website continues to provide valuable…
In today’s world of electronic streamlining and technological advances, there is an app for everything. And thanks to a forward thinking team at the IRS, the IRS now has one too. In fact, many users agree that utilizing the new IRS2Go App allows for a less challenging tax season experience. If you are one of…
The Internal Revenue Service today encouraged taxpayers to take necessary actions in the final weeks of the year to help file federal tax returns timely and accurately in 2021. This is the third in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on…
When filing a tax return, most married couples choose to use the status of Married Filing Jointly. There are typically few downsides to choosing this filing status and it can reduce the amount of income tax owed every tax season. However, something to keep in mind is that whenever you choose to file jointly with your…
No one likes filing their taxes, but not filing them at all is never a good idea. The IRS is a powerful collection agency, and an unforgiving one. Getting on the bad side of the tax agency is not fun, and having years of unfiled returns is one of the worst moves you can make.…
Taxpayers are reminded that if they have yet to file their federal income tax return, they still have a variety of options that are available to them. Not only is the IRS website accessible to taxpayers, but also provides a customer helpline where IRS agents are able to assist individuals who are seeking options to pay…
Tax professionals are being asked to increase efforts to inform clients about the Identity Protection PIN Opt-In Program that can protect against tax-related identity theft. The IRS, state tax agencies, and the nation’s tax industry need assistance from tax professionals to spread the word to clients that the IP PIN is now available to anyone…
