2023-06-22 A bankruptcy discharge relieves a debtor of personal liability for a debt, but a creditor with a lien can collect in rem against the debtor's property. If the Debtors successfully complete their Chapter 13 plan by making five years of payments, the taxes are arguably dischargeable. If the taxes are discharged, the IRS would be prevented from taking any action to collect the tax debt owed by the Debtors…
2023-06-14 A taxpayer who disagrees with an IRS decision may be able to avoid the time and expense of a court trial by asking the IRS Independent Office of Appeals to review their case. IRS Appeals is separate from the rest of the IRS. When Appeals officers review cases submitted by taxpayers, they meet with taxpayers informally and consider their position and the IRS’s position in a fair and unbiased…
2023-05-31 Scammers sometimes use stolen Social Security numbers to file fraudulent tax returns and collect refunds. To prevent this, the IRS scans every tax return for signs of fraud. If the system finds a suspicious tax return, the IRS reviews the return and sends a letter to the taxpayer letting them know about the potential ID theft. The IRS won’t process the suspicious tax return until the taxpayer responds to…
2023-05-23 IRS Tax Tip 2023-70 An Identity Protection PIN helps shield taxpayers from tax-related identity theft Identity Protection PINs stop identity thieves from filing fraudulent tax returns. Taxpayers who participate in this program are assigned a six-digit number that they use to prove their identity when they file their federal tax return. The IRS’s Identity Protection PIN is an added layer of security for taxpayers. In the recent past, the…
2023-05-17 The Internal Revenue Service plans to start re-issuing collections notices to taxpayers that were suspended during the COVID-19 pandemic. The IRS will "communicate vigorously" with taxpayers, tax professionals and Congress on the timing of the plans so no one will be caught off guard by the generation of notices. The IRS does not plan to start re-issuing every notice on an unannounced day, but will stagger the issuance of…
2023-05-10 Taxpayers should use the current form to avoid delay.
2023-03-15 Notice 2023-23 provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2023 after the amendment to Code Sec. 401(a)(9) made by the “SECURE 2.0 Act of 2022” (SECURE 2.0 Act), P. L. 117-328, enacted on December 29, 2022. See IRS FAQ page. Division T included a number of retirement savings provisions. Section 107 amended section 401(a)(9)(C) of the Code to delay the required beginning date applicable…
2023-03-07 IR-2023-29, Feb. 16, 2023 WASHINGTON — The Internal Revenue Service announced today that taxpayers who receive certain notices requiring them to send information to the IRS now have the option of submitting their documentation online through IRS.gov. This new secure step will allow taxpayers or their tax professional to electronically upload documents rather than mailing them in, helping reduce time and effort resolving tax issues. In this stage of…
2023-03-02 IRS information to help all business travelers properly claim travel expense tax write-offs. Business travel deductions are available when employees must travel away from their tax home or main place of work for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day's work and they need to sleep to meet the demands of their work while away. Travel expenses must be ordinary and necessary,…
2023-01-13 The IRS website notes that as of December 9, 2022, it had 2.5 million individual returns received during the 2022 calendar year that are still unprocessed, including returns from 2021 tand late returns filed from previous years. An estimated one million of these returns are paper returns that are awaiting review and processing. The IRS backlog reported there were about 7.6 million unprocessed individual returns along with nearly 6.7…