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As highlighted earlier this week in the Taxpayer Bill of Rights feature, taxpayers have the right to appeal a decision in an independent forum. If a taxpayer disagrees with an IRS determination, they can ask the Independent Office of Appeals to review their case. Appeals operates separately from the IRS office that made the original determination and provides a fair and unbiased review of the applicable tax matter.
Here's what taxpayers need to know to appeal their case:

Requesting an Appeal
Taxpayers who meet the criteria to request an appeal must do so in writing.


They must complete the written request and mail it to the IRS office that sent the letter with their appeal rights. The IRS office that receives the request will attempt to resolve the disputed tax issues. If that office can't resolve the issues, they will forward the case to Appeals.
It is important that taxpayers do not send their requests directly to Appeals; this will only delay the process and may prevent Appeals from considering the case.
Generally, once a case is received in Appeals, an Appeals officer will contact the taxpayer via letter and will propose a conference date for the appeal to be heard.
If a taxpayer hasn't heard about their appeal and it's been more than 120 days, taxpayers can contact the IRS office they worked with last for a status update.


What to expect during the Appeals conference

Appeals conferences may be completed by phone, in person, mail or by video. Taxpayers may choose which type of conference they prefer.
Taxpayers can use secure digital tools to send and receive documents quicker. Learn more on the What to expect from Appeals FAQs.
If the taxpayer submits new information that was not reviewed by the original IRS office, Appeals may send the case back to that office review. Appeals will not raise new issues or reopen issues agreed to by the taxpayer or the IRS, except in cases of potential fraud.
During the conference, the Appeals officer reviews the facts, law, and information provided by both the taxpayer and the IRS. The reasons for the decision and the taxpayer’s available options will be explained. Usually, an appeal ends in one of these ways:


IRS position upheld: If the facts and law support the IRS’s position.
In taxpayer’s favor: If the facts and law support the taxpayer's position or courts have ruled in favor of taxpayers in similar cases.
Compromise: If the facts or law are unclear, or courts have made different rulings in similar cases, the Appeals officer may suggest a compromise. In this case, the taxpayer may pay part of the tax that is due.



Source: IRS.gov

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Taxpayers with a history of filing and paying on time may now have an easier path to receive penalty relief.
This summer, the IRS’s new Automatic Exemption from Penalty or AEP will replace the long-standing First Time Abate administrative relief. AEP is designed to eliminate the need to contact the IRS to request relief and reduce burden for those with a timely compliance history.

Eligibility
AEP applies to eligible original returns beginning with tax year 2025 and 2026 quarterly returns and future tax periods. Taxpayers qualify if they have a history of filing on time and paying any tax due in the previous 3 years (or 12 consecutive quarters for quarterly returns).
When eligible, penalties are not assessed during processing for:


Failure to file
Failure to pay
Failure to deposit


Eligible taxpayers do not need to take action to receive this relief. If the IRS applies AEP, the taxpayer will receive a notice that the relief was granted. Not all returns are eligible for AEP. Some returns like ones filed only in response to specific transactions or infrequent events (such as Form 706, U.S. Estate Tax Return or Form 709 Gift Tax Return) generally are not eligible.
As First Time Abate phases out and transitions to AEP, some qualifying taxpayers may still receive penalty notices for eligible tax year 2025 and 2026 quarterly returns. Taxpayers who believe they qualify may contact the IRS to request First Time Abate during this transition. AEP will replace First Time Abate for eligible returns with original due dates on or after Jan. 1, 2027. Please visit Administrative penalty relief for more information.

Other penalty relief options
Taxpayers who do not qualify for AEP may still request penalty relief based on reasonable cause and they will be notified of the outcome. See Penalty relief for reasonable cause for more information. While AEP prevents the assessment of certain penalties, taxpayers must still pay any tax and interest due, as well as any penalties not eligible for relief.


Source: IRS.gov

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Taxpayers who have made or plan to make charitable donations during the year should keep good records of all their contributions. Organized records can make tax filing easier and help support a deduction if it's claimed on a federal tax return.
Here are some tips to help taxpayers keep track of charitable donations:
General deduction rules. Generally, taxpayers must itemize deductions on Schedule A (Form 1040), Itemized Deductions to claim a deduction for charitable contributions. However, beginning with tax year 2026, taxpayers who do not itemize may be able to deduct up to $1,000 in cash contributions, or $2,000 for married taxpayers filing jointly, made to certain qualified organizations.
Know what qualifies. Donations to individuals are not deductible. Examples of this include gifts or individual fundraising accounts. Taxpayers can use the Tax Exempt Organization Search tool on IRS.gov to verify whether an organization is eligible to receive tax-deductible contributions.
Keep proof of all cash donations. For any cash, check or other monetary gifts, taxpayers should keep a bank record or written communication from the charitable organization showing the organization's name, the date of the contribution and the amount donated.
Get a written acknowledgment for larger donations. Contributions of $250 or more, cash or property, require a written acknowledgment from the qualified organization before the deduction can be claimed. The documentation must include the amount of cash or description of the property. It also must state if the organization provided any goods or services in exchange for the gift. If so, description and a good faith estimate of the value of those goods or services must be provided.
Maintain records for non-cash donations. Taxpayers should keep records describing donated property and its fair market value. Additional documentation, including Form 8283, Noncash Charitable Contributions, and a qualified appraisal may be required for larger noncash donations.
Special rules apply to donations of certain types of property such as automobiles, inventory and certain other readily valued property. For more information, refer to Publication 526. For information on determining the value of noncash contributions, refer to Publication 561.


Source: IRS.gov

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One of the best ways taxpayers can protect themselves from identity theft is by requesting an Identity Protection Personal Identification Number.
What taxpayers should know about an IP PIN


Anyone with a Social Security number or an Individual Taxpayer Identification Number can request a free IP PIN, including taxpayers living abroad.
It’s a unique six-digit number known only to the taxpayer and the IRS.
It helps verify a taxpayer's identity when they file a federal tax return. It also protects the taxpayer's account, even if they aren't required to file a return.
Taxpayers must verify their identity before receiving an IP PIN.
Tax professionals cannot request an IP PIN for a client but may use the number provided by the taxpayer when preparing and filing a return.
A new IP PIN is issued each year for added security.
Taxpayers who request an IP PIN online will need to retrieve their new one annually, starting mid to late January.
Taxpayers who receive an IP PIN must include it on all federal tax returns they file during the year, including prior-year and amended returns.
The IRS will never call, email, text, or message a taxpayer through social media channels to request their IP PIN.

The fastest way to get an IP PIN
The quickest and easiest way to request an IP PIN is through an IRS Individual Account. After signing in, taxpayers can select the IP PIN option under their profile. Those who do not already have an account will need to complete the identity verification process before requesting an IP PIN.

Options for taxpayers who can't verify their identity online
Taxpayers who are unable to verify their identity online may still be able to get an IP PIN.


Eligible taxpayers with an adjusted gross income below $84,000 for individuals or $168,000 for married filing joint may apply by submitting Form 15227, Application for an Identity Protection Personal Identification Number.
Taxpayers who cannot verify their identity online or by phone, are not eligible to use Form 15227, or experience technical issues can make an appointment at a Taxpayer Assistance Center to complete the process in person.


Source: IRS.gov

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Every taxpayer has certain rights when working with the IRS. These 10 fundamental rights are collectively known as the Taxpayer Bill of Rights. Let’s get a better understanding of what the right to challenge the IRS's position and be heard means.
Taxpayers have the right to:


Raise objections and to have them considered timely.
Provide additional documentation to the IRS in response to formal or proposed actions and have it considered promptly and fairly.
Receive a response if the IRS does not agree with their position.

What taxpayers can expect
In some cases, the IRS will notify a taxpayer that their tax return has a math or clerical error. If this happens, the taxpayer:


Has 60 days to tell the IRS they disagree.
Should provide copies of any records that may help correct the error.
May call the number listed on the letter or bill for assistance.
Can expect the agency to make the necessary adjustment to their account and send a correction if the IRS agrees with the taxpayer's position.

If the IRS does not agree with the taxpayer's position:


The agency will send a notice proposing a tax adjustment.
This notice provides the taxpayer with a right to challenge the proposed adjustment in U.S. Tax Court before paying it.
If the taxpayer chooses to do this, they must file a petition within 90 days of the date of the notice, or 150 days if it is addressed outside the United States.

Taxpayers can submit documentation and raise objections during an examination or audit. If the IRS does not agree with the taxpayer's position, the agency issues a notice explaining why it is increasing the tax. Prior to paying the tax, the taxpayer has the right to petition the U.S. Tax Court and challenge the agency's decision.

In some circumstances, the IRS must provide a taxpayer with an opportunity to have a hearing with the Independent Office of Appeals before taking enforcement actions to collect tax debt. These actions can include levying the taxpayer's bank account or other property, or filing a notice of federal tax lien in the appropriate state filing location. If the taxpayer disagrees with the Appeals decision, they can petition the U.S. Tax Court.

Source: IRS.gov

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Many people have hobbies - things they enjoy doing in their spare time - and some even make a little extra money from them. However, there’s a difference between a hobby and a business, especially how each is treated when it comes to filing taxes.
Businesses operate to make a profit while hobbies are for pleasure or recreation. Here are some common questions people should ask themselves when deciding if what they’re doing is a hobby or business. No single thing is the deciding factor.

Questions to help taxpayers decide if they have a hobby or business
 


Is there an intent to make a profit?
If the activity makes a profit, how much is it?

Can they expect to make a future profit from the appreciation of the assets used in the activity?
Do they depend on income from the activity for their livelihood?
Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
Are operations adjusted to improve profitability?
Is the activity carried out like a business with complete and accurate books and records kept?
Do the taxpayers and their advisors have the knowledge needed to carry out the activity as a successful business?



Taxpayers should review all the factors to make the best decision. Regardless of the decision, if they’re paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. These payments are taxable income and must be reported on federal tax returns.
Additionally, if they received payment in the form of digital assets, they may also get a Form 1099-DA. Whether taxpayers have a hobby or run a business, good recordkeeping throughout the year will help when they file taxes.
Source: IRS.gov

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WASHINGTON — The Internal Revenue Service today announced new features in IRS Individual Accounts that allow taxpayers to view and submit Trump Account elections, making it easier to invest in these tax-advantaged accounts.

Through IRS Individual Account, taxpayers can securely access their tax information and complete common tasks online, including:

View the latest submission status of their Form 4547, Trump Account Election(s), including next steps.
Submit Form 4547, Trump Account Election(s), electronically.
“These new features reflect our continued focus on transforming the IRS into a digital-first agency that delivers a faster, more seamless experience for taxpayers and provides a new tax-advantaged investment account for children to save for college, retirement, and building generational wealth,” said IRS Chief Executive Officer Frank J. Bisignano. “By expanding the IRS Individual Account to include this new status, we are providing taxpayers with this tool in addition to features for managing their tax accounts, tracking important transactions, and completing key actions quickly and securely.”

Taxpayers benefit from greater transparency through real-time visibility into the Trump Account election process. Electronic submissions also improve accuracy, speed up processing times, and reduce delays associated with paper forms.

Trump Account election
Through the One, Big, Beautiful Bill, enacted on July 4, 2025, Trump Accounts allow parents, guardians, and other authorized individuals to establish a new type of individual retirement account for their children.

An account can be established for a child who has not reached age 18 by the end of the calendar year in which the election is made and who has a valid Social Security number.

A one-time $1,000 pilot program contribution from the Department of the Treasury is available for eligible children born between Jan. 1, 2025, and Dec. 31, 2028, who are U.S. citizens with a valid Social Security number. The IRS continues to provide updates and additional information about the tax benefits under the One, Big, Beautiful Bill. For details, see One, Big, Beautiful Bill Provisions on IRS.gov.
Source: IRS.gov

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There are options available to taxpayers if they can’t pay their tax debt in full or if doing so would cause financial hardship. One of them is called an offer in compromise. Factors such as income, expenses, asset equity and ability to pay are considered when a taxpayer applies for this option.

What’s an offer in compromise
This is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed.
The goal is a compromise that's in the best interest of both the taxpayer and the IRS. The OIC application requires a fee of $205 and an initial payment. Qualifying low-income taxpayers don't have to pay either the fee or the initial payment. Taxpayers should review the instructions for Form 656-B, Offer in Compromise, to see if they meet the qualifications to have these initial costs waived.

Who’s eligible
Taxpayers can use the Offer in Compromise Pre-Qualifier Tool to check their eligibility to file an OIC and prepare a preliminary proposal. Individual taxpayers can  make OIC payments online through their Individual Online Account. Eligible taxpayers who use Business Tax Account can now make their OIC payments through BTA. However, they can’t apply or submit an offer through BTA.  

Review the Offer in Compromise Booklet
Eligible taxpayers should download and review the latest version of the OIC Booklet to avoid processing delays. This booklet covers everything a taxpayer needs to know about submitting an OIC including:


Eligibility
Costs to apply
Application process
Forms


Beware of “OIC mills”
“OIC mills” are aggressive or misleading marketing schemes that often overpromise results and charge high fees to taxpayers who don’t qualify for an OIC. They’re also on the 2026 IRS Dirty Dozen List. Taxpayers can check OIC eligibility using free IRS tools to avoid high-pressure sales tactics. For assistance filing an OIC from a legitimate representative, taxpayers are encouraged to check for a licensed enrolled agent or a reputable accountant in their area.
Source: IRS.gov

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Taxpayers who filed their federal tax returns and are owed a refund may be wondering about the status. There are several options for people to check.
A new feature in Individual Online Account lets taxpayers opt in to receive email notifications when there’s an update to their refund status. Taxpayers still have the option to check their refund status without signing in with Where’s my Refund?

Other ways to check refund status


IRS mobile app
Automated hotline- refunds: 800-829-1954
or amended returns 866-464-2050


Refund statuses are available as soon 24 hours after the current filing year tax return is e-filed. The IRS issues most refunds in less than 21 days.
In some cases, a refund could be delayed. A few reasons for this are:



Making a common mistake. These include forgetting to sign the return or making a math error.
Claiming the Additional Child Tax Credit. This credit can be complicated and requires more time to review.
Failing to include bank account information for direct deposit.
Filing an amended return. The IRS must compare the two returns as well as review both.
Requesting injured spouse relief which requires the IRS to manually process the case.

Source: IRS.gov

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Before filing a federal tax return, taxpayers should make sure they have the necessary and correct documents. 
Here’s what taxpayers should do if they haven't received their Form W-2 or Form 1099 yet.

Taxpayer options for missing documents


Contact the employer, payer or issuing agency and request the missing or corrected documents.
Taxpayers who have an IRS Individual Online Account can view and download their available wage and income transcripts for 2025. In some cases, a transcript may not populate and a message of “No record of return filed” may show. This is because the IRS has not received the data from the employer. Other tax documents can be downloaded and include:

Form W-2, Wage and Tax Statement
Form 1095-A, Health Insurance Marketplace Statement
Form 1099-NEC, Nonemployee Compensation
Form 1099-DIV, Dividends and Distributions
Form 1099-INT, Interest Income
Form 1099-MISC, Miscellaneous Information


If needed, taxpayers can estimate the wages or payments made to them, as well as any taxes withheld. To avoid filing an incomplete return, they should use Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.
If they receive the missing or corrected Form W-2 or Form 1099-R after filing their tax return and the information differs from their previous estimate, they must file Form 1040-X, Amended U.S. Individual Income Tax Return.

What to do if a Form 1099-G for unemployment benefits is incorrect
Unemployment benefits are considered taxable income; therefore, taxpayers must report any unemployment compensation on their tax return.


Taxpayers who receive an inaccurate Form 1099-G should contact the issuing state agency to request a revised Form 1099-G showing their correct benefits. If they are unable to get a timely, corrected form from the state, they should still file an accurate tax return, reporting only the income received.
If the taxpayer didn’t receive unemployment benefits but did receive a Form 1099-G for unemployment compensation, this may be a sign that the taxpayer’s identity was stolen.

Source: IRS.gov

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WASHINGTON ― The Internal Revenue Service today announced that over 1.3 million people across the nation have unclaimed refunds for tax year 2022 and face an April 15 deadline to submit their tax returns.

The IRS estimates that approximately $1.2 billion in refunds remains unclaimed for taxpayers who have not filed their Form 1040 Federal income tax return for the 2022 tax year. The IRS estimates the median refund amount is $686 for 2022, which means that half of the refunds are more than $686. This estimate does not include credits that may be applicable.

Under the law, taxpayers usually have three years to file and claim their tax refunds. If they do not file within three years, the money becomes the property of the U.S. Treasury.

The table below shows the number of taxpayers potentially eligible for these refunds and the estimated median refund amount by state.

By not filing a tax return, taxpayers stand to lose more than just their refund of taxes withheld or paid during 2022. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit in 2022, the EITC was worth up to $6,935 for taxpayers with qualifying children. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2022 were:



$53,057 ($59,187 if married filing jointly) for those with three or more qualifying children;
$49,399 ($55,529 if married filing jointly) for people with two qualifying children;
$43,492 ($49,662 if married filing jointly) for those with one qualifying child, and;
$16,480 ($22,610 if married filing jointly) for people without qualifying children.


The IRS reminds taxpayers seeking a 2022 tax refund that their funds may be held if they have not filed tax returns for 2023 and 2024. In addition, any refund for 2022 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts, such as student loan debts.

Current and prior year tax forms, such as the tax year 2022 Forms 1040 and 1040-SR, and instructions are available on the IRS.gov Forms & Instructions page or by calling toll-free 800-TAX-FORM (800-829-3676).

Need to file a 2022 tax return? There are several options to get key documents

Although it’s been a few years since 2022, the IRS reminds taxpayers that there are ways they can still gather the information they need to file the 2022 tax return. But taxpayers should ensure they have enough time to file before the April deadline for 2022 refunds. Here are some options:



Request copies of key documents: Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years, 2022, 2023 or 2024 can request copies from their employer, bank or other payers.
Use Get Transcript Online at IRS.gov. Taxpayers who are unable to get missing forms from their employer or other payers can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. For many taxpayers, this is by far the quickest and easiest option.
Request a transcript. Another option is for people to file Form 4506-T with the IRS to request a “wage and income transcript.” A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. Plan ahead, written transcripts requests using Form 4506-T can take several weeks. Taxpayers are strongly urged to try other options first.

State-by-state estimates of individuals who may be due 2022 income tax refunds

Based on the tax information currently available, the IRS estimated how many taxpayers in each state may be entitled to a tax refund.
 























State or District
Estimated number of individuals
Median potential refund
Total potential refunds*


Alabama
 22,500
$674
$19,490,000


Alaska
 4,100
$721
$3,745,800


Arizona
 35,700
$627
$29,675,100


Arkansas
 12,600
$658
$10,655,400


California
 143,200
$680
$124,700,500


Colorado
 22,000
$697
$19,480,500


Connecticut
 12,800
$732
$11,710,500


Delaware
 5,100
$686
$4,568,200


District of Columbia
 3,000
$744
$2,831,200


Florida
 89,000
$638
$74,481,300


Georgia
 45,100
$645
$38,369,000


Hawaii
 6,600
$784
$6,263,800


Idaho
 7,200
$641
$5,897,400


Illinois
 47,800
$714
$43,017,600


Indiana
 29,500
$678
$25,531,600


Iowa
 13,700
$709
$12,090,700


Kansas
 12,800
$694
$11,211,500


Kentucky
 17,700
$669
$15,078,200


Louisiana
 19,900
$694
$17,589,700


Maine
 5,100
$733
$4,608,600


Maryland
 25,400
$739
$23,698,200


Massachusetts
 27,300
$786
$25,909,300


Michigan
 41,400
$707
$36,919,000


Minnesota
 19,400
$711
$17,116,300


Mississippi
 11,800
$635
$9,909,700


Missouri
 29,400
$654
$24,810,500


Montana
 4,700
$661
$3,991,400


Nebraska
 6,300
$703
$5,498,500


Nevada
 16,100
$652
$13,751,000


New Hampshire
 5,800
$745
$5,284,300


New Jersey
 33,400
$746
$30,821,100


New Mexico
 7,600
$700
$6,779,300


New York
 67,100
$757
$62,403,200


North Carolina
 46,200
$638
$38,329,000


North Dakota
 3,000
$774
$2,776,300


Ohio
 46,300
$669
$39,342,300


Oklahoma
 19,000
$672
$16,366,700


Oregon
 19,900
$670
$16,975,900


Pennsylvania
 48,400
$703
$42,949,800


Rhode Island
 3,600
$740
$3,243,200


South Carolina
 16,800
$642
$14,205,900


South Dakota
 3,400
$692
$2,890,100


Tennessee
 27,000
$644
$22,514,900


Texas
 126,000
$687
$111,700,000


Utah
 11,000
$659
$9,509,400


Vermont
 2,600
$719
$2,246,400


Virginia
 34,900
$695
$31,135,700


Washington
 37,500
$738
$34,728,800


West Virginia
 5,700
$756
$5,217,200


Wisconsin
 17,600
$658
$14,871,400


Wyoming
 2,600
$714
$2,352,800


Totals
 1,322,600
$686
$1,159,244,200



* Excluding credits.






















Source: IRS.gov

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Taxpayers may see a reduction in their tax bill or an increase in refunds this year. The One, Big, Beautiful Bill makes several changes for this tax filing season.
New deductions have been added, and certain credits have been updated. Some of these changes are retroactive to the start of 2025, which suggests that taxpayers may not have adjusted their withholding or recalculated their estimated income tax obligations.

Key additions and changes that may affect taxable income or a refund
New deductions


Seniors age 65 and older may be eligible to claim an additional deduction of up to $6,000. This is in addition to the current higher standard deduction for seniors under existing law.
Tipped workers may be eligible to deduct up to $25,000 for qualified tips. This limit applies per return for single filers and married couples filing jointly.
Individuals may be eligible to deduct up to $12,500; $25,000 for joint filers for qualified overtime.
Individuals may deduct up to $10,000 in qualified passenger vehicle loan interest.

It’s important for taxpayers to know that each of these deductions phase out based on income level for individual and joint filers and have specific eligibility requirements.

Updates to credits


A portion of the Adoption Credit is now refundable up to $5,000 per eligible child beginning in tax year 2025 and indexed for inflation annually.


Indian Tribal governments are now recognized to have the ability to determine whether a child has special needs for purposes of the adoption tax credit.


For taxpayers claiming the Child Tax Credit, they (or their spouse if filing jointly) and each qualifying child must have a Social Security number valid for employment and issued before the return’s due date, including extensions, to claim the CTC.


Taxpayers should maintain records to show their eligibility for any tax deductions or credits they claim. They shouldn’t be tempted by scam promoters who share misleading information while trying to promote large refunds.
The IRS Interactive Tax Assistant can help a person decide if they're eligible for many popular tax credits and deductions.
Source: IRS.gov

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