One of the big sticks that the Internal Revenue Service wields is penalties for our mistakes or willful disregard of tax laws. Some of the penalties were increased in 2016 thanks to law changes. Others are hiked each year if inflation so warrants. Here’s a roundup of some major tax penalties changes ahead in 2017.…
The Internal Revenue Service announced Monday that the nation’s tax season will begin Monday, Jan. 23, 2017 and reminded taxpayers claiming certain tax credits to expect a longer wait for refunds. The IRS will begin accepting electronic tax returns that day, with more than 153 million individual tax returns expected to be filed in 2017.…
Had a great year last year and suddenly enjoyed a surge in income? You could have a target on your back for an IRS audit. While getting audited is no fun, you can survive! The key to remember is you need to have solid documentation to back up any claims you make about your overall…
As the holidays approach, the Internal Revenue Service today reminded taxpayers to remember that a new law requires the IRS to hold refunds until mid-February each year for people claiming the Earned Income Tax Credit or the Additional Child Tax Credit. In addition, new identity theft and refund fraud safeguards put in place by the…
The Internal Revenue Service has launched the second year of its public awareness campaign aimed at improving taxpayer security in partnership with tax software companies, tax preparation chains, and state tax authorities. The campaign from the IRS and its partners in its Security Summit program includes a series of security awareness tax tips, a set…
IRS Wasted $12 Million Dollars on Unusable Email System A report released by the Treasury Inspector General for Tax Administration (TIGTA) revealed that the IRS (Internal Revenue Service) spent $12 million on an email system that it couldn’t use. The agency purchased two years’ worth of email software subscriptions from Microsoft before finding out that…
The information being stolen is a big problem for taxpayers. At first, they thought that this was only a rumor until the rumors became reality when the IRS was staggered by a number of complaints from taxpayers, stating that they were somewhat abused by criminals who are using their own tax identities for an unrighteous…
IRS Account Transcripts Transaction Codes Transaction Codes (TC) can be found on your account transcript and consist of three digits. They are used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer’s account on the Master File. Every transaction processed must contain a Transaction Code to maintain…
An Update on IRS Funding Patterns As of this morning, the IRS has paid approximately 70% of refunds related to taxpayers who filed within the first weeks of the season. That leaves approximately 30% of these taxpayer refunds yet to be paid by the IRS.This year, the IRS has generally paid refunds on a weekly…
The 2016 tax season is starting off badly for the Internal Revenue Service The agency on Tuesday said hackers last month used malware to automatically generate E-file personal identification numbers that could help them steal tax refunds. The attack involved 464,000 Social Security numbers that had already been stolen, of which 101,000 were used to…
