Skip to content

IRS

TAXWATCH



a man wearing a suit and tie: IRS Commissioner Charles Rettig at a House Committee on Oversight and Reform hearing.


© Toni L. Sandys-Pool/Getty Images
IRS Commissioner Charles Rettig at a House Committee on Oversight and Reform hearing.

The Internal Revenue Service still has to process an estimated 2.5 million hard copy income tax returns within a pile of unopened mail that stands at 5.3 million pieces.

Loading...

Load Error

That’s according to IRS Commissioner Charles Rettig, who testified Wednesday on the agency’s efforts to dig out from a mountain of unopened mail that accumulated during coronavirus-related IRS office shutdowns in the spring.

Rettig spoke to lawmakers, who have been getting an earful about the backlog. “We are hearing from our constituents right and left” about the status of returns and refunds, said Rep. Jody Hice, a Republican from Georgia.

Though there’s still a ways to go, the IRS has come a long way from the spring.

There was a time in the March and April period when the IRS

Read More

WASHINGTON — During Small Business Week, Sept. 22-24, the Internal Revenue Service wants individuals to consider taking the home office deduction if they qualify. The benefit may allow taxpayers working from home to deduct certain expenses on their tax return.

The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy. However, the Tax Cuts and Jobs Act suspended the business use of home deduction from 2018 through 2025 for employees. Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home.

Qualifying for a deduction

There are two basic requirements to qualify for the deduction. The taxpayer needs to use a portion of the home exclusively for conducting business on a regular basis and the home must be the taxpayer’s principal place of business.

To claim

Read More
/quality/85/?url=http://media.beam.usnews.com/c2/4d7a2e79df40645966c469642be02b/media:1aced3fb336248cd805a2230b851843cVirus_Outbreak_Inmates_Checks_46109.jpg">

By REBECCA BOONE, Associated Press

BOISE, Idaho (AP) — A U.S. judge says the IRS can’t keep withholding coronavirus relief payments from incarcerated people, potentially clearing the way for at least 80,000 checks totaling more than $100 million to be sent to people behind bars across the United States.

The ruling from U.S. District Judge Phyllis J. Hamilton late last month gives the IRS until Oct. 24 to reconsider the payments for those who were denied or had their money intercepted solely because of their incarceration. But for those behind bars who didn’t file a tax return in 2018 or 2019, another deadline is looming — they have until Oct. 15 to send a written application for the relief checks, or they may not receive them at all.

The federal agencies have filed a “protective appeal” to the 9th U.S. Circuit — which appears to be a placeholder of sorts

Read More

BOISE, Idaho (AP) — A U.S. judge says the IRS can’t keep withholding coronavirus relief payments from incarcerated people, potentially clearing the way for at least 80,000 checks totaling more than $100 million to be sent to people behind bars across the United States.

The ruling from U.S. District Judge Phyllis J. Hamilton late last month gives the IRS until Oct. 24 to reconsider the payments for those who were denied or had their money intercepted solely because of their incarceration. But for those behind bars who didn’t file a tax return in 2018 or 2019, another deadline is looming — they have until Oct. 15 to send a written application for the relief checks, or they may not receive them at all.

The federal agencies have filed a “protective appeal” to the 9th U.S. Circuit — which appears to be a placeholder of sorts designed to give officials time

Read More

CLOSE

Nancy Pelosi told CNBC’s “Squawk on the Street” that the Democrats are “committed to staying” until a coronavirus stimulus deal is reached.

USA TODAY

If you haven’t received a stimulus check yet, the IRS has extended the deadline to register by five weeks.

The Internal Revenue Service announced Monday the new deadline to register for an Economic Impact Payment is Nov. 21, a move from Oct. 15.

“We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,” IRS Commissioner Chuck Rettig said in a news release.

The extended deadline is for those who don’t typically file a tax return, which includes millions of people, many living on limited incomes, who have yet to get their hands on money that could help pay the rent, cover grocery bills, handle car

Read More


Getty

October 15 marks the last day for you to file your 2019 taxes, if you requested an extension in the spring. If you want to receive a stimulus check and are eligible, you have to file on or before the October 15 deadline.

There are a select few people who will have more time to file taxes, even after the October 15 deadline. Per the IRS, here are those exceptions:

  • “Members of the military and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due.
  • Taxpayers in federally declared disaster areas who already had valid extensions. For details, see the disaster relief page on IRS.gov.”

Here’s what you need to know:


How to Provide Your Information to the IRS Before the October 15 Deadline

Read More

WASHINGTON —During Small Business Week, the Internal Revenue Service reminds business owners and self-employed individuals of the employer credits available to them during COVID-19.

These credits were specially created to help small business owners during this unprecedented time. During Small Business Week, the IRS wants to ensure all eligible people know about the relief these credits provide.

Employee Retention Credit

The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

Qualifying employers must fall into one of two categories

The employer’s business is fully or partially suspended

Read More

If you think you’re missing a $500 payment for your dependents, the window to claim the money is quickly closing. You have until Sept. 30 to submit information on your dependents and correct any errors from the first time around with the IRS’ Non-Filers tool. 



a hand holding a book: You can still get your missing $500 stimulus payment for child dependents. Sarah Tew/CNET


© Provided by CNET
You can still get your missing $500 stimulus payment for child dependents. Sarah Tew/CNET

The $500 sum should’ve been part of the stimulus checks the IRS started sending out last spring. If you’re unsure of the money you’re owed, try CNET’s stimulus check calculator and your AGI for an estimate. If the size of the check you received doesn’t seem as big as expected, you may need to request a catch-up payment.





© Sarah Tew/CNET


If you still haven’t received your stimulus check and you think it’s lost or missing, try this IRS phone number to file a report.

Second

Read More

Donald Trump speaks with President Barack Obama before being sworn in as the 45th president of the United States, Washington, D.C., January 20, 2017. (Lucy Nicholson/Reuters)

The New York Times’ big exposé on President Trump’s tax returns flags some things that may be dodgy but mainly it just confirms what everybody (including Trump) has always said — there are a lot of loopholes in the tax code that a savvy operator can exploit. Whose fault is that? The system long predates Trump’s political career. For me, one part of the story really stands out, though: “To turn that long arc of failure into a giant refund check,” says the Times, Trump “relied on some deft accounting footwork and an unwitting gift from an unlikely source — Mr. Obama.”

Huh? Obama’s stimulus policies led to the Obama IRS writing a check to Trump for $73 million. The Times explains that

Read More

In a rare moment of non-partisan politics, releasing a second round of stimulus checks was the one thing both Democrats and Republicans agreed upon. While the beginning of the month seemed hopeful, there is once again a bi-partisan fly in the ointment.

Although both parties are in support of a second stimulus bill, Democrats and Republicans remain divided on the relief programs included within its next iteration as well as the actual fiscal amount the payments should be. At September’s start, Senate Republicans introduced a financial relief bill that authorized small business loans and put money toward schools as well as COVID-19 testing, treatment and vaccines. It ended up being a no-go for the blue corners of the room.

The dealbreaker for Democrats was that the bill reduced the federal unemployment insurance rate from the original $600 to $300. Along with this, the GOP bill failed to include another $1,200

Read More

Designed using Magazine News Byte. Powered by WordPress.