IRS makes it easier for taxpayers struggling with tax debts

On November 5, 2020   /   IRS  

Announced today the IRS has made numerous changes designed to help struggling taxpayers impacted by COVID-19. Taxpayers who owe always had options to seek help through payment plans and other tools from the IRS, but the new IRS Taypayer Relief Initiative is expanding on those tools even more.

The revised COVID-related collection procedure will be helpful to taxpayers, especially those who have a record of filing their returns and paying their taxes on time. Among the highlights of the Taxpayer Relief Initiative:

  • Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities.
  • The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
  • To reduce burden, certain qualified individual taxpayers who owe less than $250,000 may set up Installment Agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient. 
  • Some individual taxpayers who only owe for the 2019 tax year and who owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS.

Installment Agreement options are available for taxpayers who cannot full pay their balance but can pay their balance over time. The IRS expanded Installment Agreement options to remove the requirement for financial statements and substantiation in more circumstances for balances owed up to $250,000 if the monthly payment proposal is sufficient. The IRS also modified Installment Agreement procedures to further limit requirements for Federal Tax Lien determinations for some taxpayers who only owe for tax year 2019.

In addition to payment plans and Installment Agreements, the IRS offers additional tools to assist taxpayers who owe taxes:

Temporarily Delaying Collection — Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves.

Offer in Compromise — Certain taxpayers qualify to settle their tax bill for less than the amount they owe by submitting an Offer in Compromise. To help determine eligibility, use the Offer in Compromise Pre-Qualifier tool. Now, the IRS is offering additional flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted offer in compromise.

Relief from Penalties — The IRS is highlighting reasonable cause assistance available for taxpayers with failure to file, pay and deposit penalties. First-time penalty abatement relief is also available for the first time a taxpayer is subject to one or more of these tax penalties.

“If you’re having a tax issue, don’t go silent. Please don’t ignore the notice arriving in your mailbox. These problems don’t get better with time. We understand tax issues and know that dealing with the IRS can be intimidating, but our employees really are here to help.”

Darren Guillot, IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support

For clients and non clients alike we urge you to contact your local office or preparer so we may help you with any notices you receive. For more information or explanation of Taxpayer Relief Initiative please contact your local office or visit www.IRS.gov

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QR code technology on the rise

On November 2, 2020   /   IRS  

A QR code is shot for “quick response” and is a type of barcode. This barcode can be scanned by using a QR scanner or a smartphone with a built in camera. Once scanned the device uses the barcode to bring up a link. Have you seen the QR code at your favorite restaurant to access a menu recently?

Now try using the same technology to go directly to IRS.gov and securely access your account, set up a payment plan or contact the Taxpayer Advocate Service. These QR codes will start appearing in 2021 on all CP14 notices. These notices are used to inform taxpayers that they owe money on unpaid taxes.

These codes will give taxpayers immediate access to the most important information for them to pay their balances, set up payment agreements, and reach out for help… We understand there’s lots of information on the web, and we want to give taxpayers more secure tools that can more easily help them resolve their tax situations”

Darren Guillot, IRS Small Business/ Self-Employed Deputy Commissioner for Collection and Operations Support

This is an exciting development in technology use for the IRS. The IRS is assessing the possibility of adding other QR codes to other balance due notices in the future.

At ATS we still advise all taxpayers to provide a copy of the notice to their preparer before paying any fees.

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The Health Care Law and Taxes: Reporting Coverage, Exemptions and Payments

On March 27, 2015   /   IRS  

Under the Affordable Care Act, you will need to report minimum essential coverage, report or claim a coverage exemption, or make an individual shared responsibility payment when you file your 2014 federal income tax return. If you are not required to file a tax return and don’t want to, you do not need to file a return solely to report your coverage or to claim an exemption.

If you and your dependents all had minimum essential coverage for each month of the tax year, you will indicate this on your 2014 tax return by simply checking a box on Form 1040, 1040A or 1040EZ; no further action is required.

If you obtained a coverage exemption from the Marketplace or you qualify for an exemption that you can claim on your return, you will file Form 8965 with your tax return.

For any month you or your dependents did not have coverage or a coverage exemption, you will have to make a shared responsibility payment. The payment will be reported on Form 1040, line 61 in the Other Taxes section and on the corresponding lines on Form 1040A and 1040EZ.

See the Claiming and Reporting an Exemption and Individual Shared Responsibility Provision – Reporting and Calculating the Payment pages on IRS.gov for more information about figuring and reporting the payment. 

For tax help or more information contact one of our offices:
   Plymouth 734.454.4100,    Allen Park 313.388.7180,    Grayling 989.348.4055,
Royal Oak 248.399.7331,    Saginaw 989.782.1985,    St. Clair Shores 313.371.6600

 

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IRS Has Refunds Totaling $1 Billion for People Who Have Not Filed a 2011 Federal Income Tax Return

On March 11, 2015   /   IRS  

Federal income tax refunds totaling $1 billion may be waiting for an estimated one million taxpayers who did not file a federal income tax return for 2011, the Internal Revenue Service announced today. To collect the money, these taxpayers must file a 2011 tax return with the IRS no later than Wednesday, April 15, 2015.

“Time is running out for people who didn’t file a 2011 federal income tax return to claim their refund,” said IRS Commissioner John Koskinen. “People could be missing out on a substantial refund, especially students or part-time workers. Some people may not have filed because they didn’t make much money, but they may still be entitled to a refund.”

The IRS estimates half of the potential refunds for 2011 are more than $698.

In cases where a tax return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. For 2011 tax returns, the window closes on April 15, 2015. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.

The law requires the tax return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return that qualifies for a refund.

The IRS reminds taxpayers seeking a 2011 refund that their checks may be held if they have not filed tax returns for 2012 and 2013. In addition, the refund will be applied to any amounts still owed to the IRS, or their state tax agency, and may be used to offset unpaid child support or past due federal debts, such as student loans.

Current and prior year tax forms and instructions are available on the IRS.gov Forms and Publications page, or by calling toll-free: 800-TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years: 2011, 2012 or 2013 should request copies from their employer, bank or other payer.

If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by going to IRS.gov. Taxpayers can also file Form 4506-T to request a transcript of their tax return.

Need help?  Contact one of our offices.

 

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What to Know About Tax Filing Statuses

On February 13, 2015   /   IRS  

The IRS gives 8 important facts about filing statuses. These will help you choose the best status option for your particular situation.

#1: Your marital status on the last day of the year determines your marital status for the entire year, for tax purposes.

#2: If more than 1 filing status applies to you, you may choose the one that gives you the lowest amount of tax due.

#3: The “Single” filing status generally applies to anyone who is unmarried, divorced, or legally separated according to state law.

#4: A married couple may file a joint tax return together. The couple’s filing status would be “Married Filing Jointly.”

#5: If your spouse passed away and you did not remarry during that year, usually you may still file a joint tax return with that spouse for the year of death.

#6: A married couple may elect to file their tax returns separately. Each person’s filing status would generally be “Married Filing Separately.”

#7: The “Head of Household” status generally applies to taxpayers who are unmarried. You must also have paid more than half the cost of maintaining a home for you and a qualifying person to be able to use this filing status.

#8: You may be able to choose “Qualifying Widow(er) with Dependent Child” as your filing status if your spouse died within the past two years, you have a dependent child, and you meet certain other conditions.

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Where is my tax refund?

On February 11, 2015   /   IRS  

Want to know where your refund is?

More than 90 percent of refunds are issued in less than 21 days. IRS representatives will not provide individual refund information before then. Taxpayers can easily find information about their refund by using the Where’s My Refund? tool. It’s available on IRS.gov and on the Smartphone app, IRS2Go. Where’s My Refund? provides taxpayers with the most up-to-date information available. Taxpayers must have information from their current, pending tax return to access their refund information. Refund information is updated just once a day, generally overnight, so there’s no need to check more than once a day.

 

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Know your rights when dealing with the IRS

On February 6, 2015   /   IRS  

The IRS has adopted a Taxpayer Bill of Rights as proposed by National Taxpayer Advocate Nina Olson. It applies to all taxpayers in their dealings with the IRS. The Taxpayer Bill of Rights groups the existing rights in the tax code into ten fundamental rights, and makes them clear, understandable, and accessible.

They include:

For more information visit the Taxpayer Advocate Service.

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