News

 
December 13, 2021 (updated December 16, 2021)

IRS Revising Form 1024 to Allow for Electronic Submission

As part of an ongoing effort to improve service for the tax-exempt community, the IRS is revising Form 1024, Application for Recognition of Exemption Under Section 501(a), and its instructions to allow electronic filing for the first time.

Additionally, organizations requesting determinations under subsections 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and Section 501(d) that currently submit letter applications will use the electronic Form 1024. Organizations requesting determination under Section 521 will also be able to use the electronic Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code. Form 1024 will be revised accordingly.

The IRS expects electronic filing to be available early in 2022, at which point applications for recognition of exemption on Form 1024 must be submitted electronically online at Pay.gov. The IRS will provide a grace period during which it will continue to accept paper versions of Form 1024.

Stay tuned to IRS.gov for more details regarding the release of the revised Form 1024.

New Technical Guides Published

Exempt Organizations and Government Entities has published eight new Technical Guides (TG). These guides are comprehensive, issue-specific documents. TGs combine and update the Audit Technique Guides (ATG) available on IRS.gov with other technical content and will replace corresponding ATGs as they are completed. The newest TGs are:


TG 3-21 Private Operating Foundations  PDF
TG 22 Termination of Private Foundation Status IRC 507 PDF
TG 45 Suspension of Tax-Exempt Status of Terrorist Orgs under IRC 501(p) PDF
TG 57 Taxes on Net Investment Income IRC 4940 PDF
TG 59 Taxes on Foundation Failure to Distribute Income IRC 4942 PDF
TG 60 Taxes on Excess Business Holdings IRC 4943 PDF
TG 64 Foreign Organizations PDF
TG 61 Taxes on Investments which Jeopardize Charitable Purposes IRC 4944 PDF


LLCs Applying for Tax-exempt Status under Section 501(c)(3) Must Submit Information Described in Notice 2021-56

Notice 2021-56 PDF sets forth current standards that a limited liability company (LLC) must satisfy to receive a determination letter recognizing it as tax-exempt under Internal Revenue Code Section 501(c)(3). Accordingly, an LLC applying for recognition of exemption on Form 1023, Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code, must submit the following information as part of its completed application. Otherwise, LLCs continue to complete Form 1023 as described in the instructions for Form 1023 PDF.

1. Submit both the LLC's state-approved articles of organization and its adopted operating agreement. Both your articles of organization and your operating agreement must contain the following:


Provisions requiring that each member of the LLC be either (i) an organization described in Section 501(c)(3) and exempt from taxation under Section 501(a) or (ii) a governmental unit described in Section 170(c)(1) (or wholly owned instrumentality of such a governmental unit).
An acceptable contingency plan (such as suspension of its membership rights until a member regains recognition of its Section 501(c)(3) status) in the event that one or more members cease to be Section 501(c)(3) organizations or governmental units (or wholly owned instrumentalities thereof).
The charitable purposes and charitable dissolution clauses described in Part III, lines 1 and 2 of Form 1023.
The express Chapter 42 compliance provisions described in Section 508(e)(1) if the LLC is a private foundation. See Part VII, line 1a of the Instructions for Form 1023 for more information on these provisions.


 



 




NOTE: If you are formed under a state LLC law that prohibits the addition of provisions to articles of organization other than certain specific provisions required by the state LLC law, you may include the provisions above only in your operating agreement. Include an explanation if you are prohibited from including the provisions in your articles of organization under your state's LLC law.

2. Submit the following representation, signed and dated by an officer, director, trustee or other governing body member (not an authorized representative):

"We represent that all provisions in our articles of organization and operating agreement are consistent with applicable state LLC law and are legally enforceable." 

New Form 4506-B and Revised Form 4506-A

Exempt Organizations (EO) has developed and released a new Form 4506-B, Request for a Copy of Exempt Organization IRS Application or Letter PDF. Use the new Form 4506-B to request copies of an exempt organization's exemption application or determination letter. You can submit Form 4506-B by mail, fax or email. Tax Exempt Organization Search (TEOS) can be used to directly access copies of determination letters issued to exempt organizations in 2014 or later.

EO has also revised Form 4506-A, Request for a Copy of Exempt or Political Organization IRS Form PDF. Form 4506-A is used to request copies of an exempt or political organization's return, report or notice. You can mail or fax Form 4506-A to the IRS. Use TEOS for copies of Form 990‑N, Electronic Notice (e-Postcard), and for direct access to Form 990-series returns received by the IRS in 2017 or later. Check TEOS to see if the return you're requesting is available there before submitting Form 4506-A.

Please review the instructions for Form 4506-A PDF (Rev. 11-2021) and instructions for Form 4506-B PDF (11-2021) before you submit the form. Submitting incomplete or incorrect information or sending to the incorrect mailing, fax or email address will cause delays.

Taxable Unrelated Business Income: Online Course

Even though your organization is tax exempt, it may generate taxable income. The Unrelated Business Income course explains how to determine if you have taxable income and how to report it. Organizational leadership and volunteers should complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations. 

Source : https://www.irs.gov/e-file-providers/e-file-for-charities-and-non-profits
US TAX, U.S. TAX

There are steps people, including those who received stimulus payments or advance child tax credit payments, can take now to make sure their tax filing experience goes smoothly in 2022. They can start by visiting the Get Ready page on IRS.gov. Here are some other things they should do to prepare to file their tax return.

Gather and organize tax records

Organized tax records make preparing a complete and accurate tax return easier. They help avoid errors that lead to processing delays that slow refunds. Having all needed documents on hand before taxpayers prepare their return helps them file it completely and accurately. This includes:


Forms W-2 from employers
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
Form 1099-INT for interest received
Other income documents and records of virtual currency transactions


Taxpayers should also gather any documents from these types of earnings. People should keep copies of tax returns and all supporting documents for at least three years.

Income documents can help taxpayers determine if they're eligible for deductions or credits. People who need to reconcile their advance payments of the child tax credit and premium tax credit will need their related 2021 information. Those who did not receive their full third Economic Impact Payments will need their third payment amounts to figure and claim the 2021 recovery rebate credit.

Taxpayers should also keep end of year documents including:


Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments
Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance premium tax credits for Marketplace coverage


 


 
Confirm mailing and email addresses and report name changes

To make sure forms make it to the them on time, taxpayers should confirm now that each employer, bank and other payer has their current mailing address or email address. People can report address changes by completing Form 8822, Change of Address and sending it to the IRS. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or their local post office. They should also notify the Social Security Administration of a legal name change.


View account information online

Individuals who have not set up an Online Account yet should do so soon. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers can use Online Account to securely access the latest available information about their federal tax account.

Review proper tax withholding and make adjustments if needed

Taxpayers may want to consider adjusting their withholding if they owed taxes or received a large refund in 2021. Changing withholding can help avoid a tax bill or let individuals keep more money each payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also be reasons to change withholding. Taxpayers might think about completing a new Form W-4, Employee's Withholding Certificate, each year and when personal or financial situations change.

People also need to consider estimated tax payments. Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2021 is due on Jan. 18, 2022.

Source : https://www.irs.gov/newsroom/what-taxpayers-can-do-now-to-get-ready-to-file-taxes-in-2022

 

Here you'll find items of current interest — new programs, recent guidance or timely reminders.

American Rescue Plan Act (ARPA) of 2021

Several ARPA provisions affect the 2020 tax return people are filing in 2021, including exempting up to $10,200 in unemployment compensation from tax and another benefiting people who purchased subsidized health coverage through federal or state Health Insurance Marketplaces. The law also includes the third round of Economic Impact Payments, now going out to eligible Americans, that are generally equal to $1,400 per person for most people and advance payments of the Child Tax Credit, paid monthly from July to December 2021. Keep up with tax law developments by regularly checking IRS.gov.

2020 Unemployment Compensation

The Internal Revenue Service is issuing refunds throughout the summer to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income.

Advanced child tax credit (CTC) payments in 2021

The first monthly payment of the expanded and newly-advanceable CTC will be made on July 15. Eligible families are slated to begin receiving monthly payments without any further action required.

Normally, the IRS will calculate the payment based on a person's 2020 tax return. If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020.

For people who don’t normally file a tax return, the IRS offers the Non-filer Sign-up tool. It’s for people who did not file a tax return for 2019 or 2020 and who did not use the IRS Non-filers tool last year to register for Economic Impact Payments. The tool enables them to provide required information about themselves, their qualifying children age 17 and under, their other dependents, and their direct deposit bank information so the IRS can quickly and easily deposit the payments directly into their checking or savings account.

To help people understand and receive this benefit, the IRS has created a special Advance Child Tax Credit 2021 webpage to provide the most up-to-date information about the credit and the advance payments. The page features links to the Non-filer Sign-up Tool, the Child Tax Credit Eligibility Assistant, and the Child Tax Credit Update Portal.

Coronavirus Tax Relief

For the latest information about coronavirus tax relief, see the Coronavirus Tax Relief and Economic Impact Payments page. 

Visit our Coronavirus and Economic Impact Payments: Resources and Guidance page for our latest content including news releases, Tax Tips, frequently asked questions, multilingual partner materials and more. 

To learn about IRS operations during COVID-19, visit our operations page for up-to-date status on affected IRS operations and services.
 

Outreach Connection

Get free tax content to share  with your staff, clients, customers or colleagues that you can include in your:


Website
e-Newsletter
Twitter, Instagram or other social media


Taxpayer First Act

On July 1, 2019, The Taxpayer First Act of 2019 was signed into law, which aims to broadly redesign the Internal Revenue Service. Generally, the legislation aims to expand and strengthen taxpayer rights and to reform the IRS into a more taxpayer friendly agency by requiring it to develop a comprehensive customer service strategy, modernize its technology and enhance its cyber security.

See the Taxpayer First Act page for the latest updates.
 

Taxpayer Bill of Rights

All taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them.


The Right to Be Informed
The Right to Quality Service
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Finality
The Right to Privacy
The Right to Confidentiality
The Right to Retain Representation
The Right to a Fair and Just Tax System




 




Tax Reform

The Tax Cuts and Jobs Act included major tax legislation that affects both individuals and businesses. Check the Tax Reform page for the latest updates.

Tax Withholding

The Tax Cuts and Jobs Act changed the way tax is calculated. The IRS encourages taxpayers to perform a quick “paycheck checkup” by using the Withholding Estimator to check if they have the right amount of withholding for their personal situation.

Consumer Alerts on Tax Scams

‪Note that the IRS will never:

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.


Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
Ask for credit or debit card numbers over the phone.


For more information on tax scams, please see Tax Scams/Consumer Alerts. For more information on phishing scams, please see Suspicious emails and Identity Theft.

A Message from James C. Lee, Chief Criminal Investigation

IRS Criminal Investigation Marks International Fraud Awareness Week Highlighting Successes from FY20

In recognition of International Fraud Awareness Week, the IRS is highlighting the many successes in combating fraud and protecting taxpayers. This year was different as half of the year was spent under the new realities that COVID-19 has brought us. Through all the COVID challenges, the IRS was still able to attain many results. For example, we opened more investigations in FY20 than we did in FY19 in most of our program areas, our conviction rate is still the highest in federal law enforcement, and we are the go-to agency for complex financial investigations in the world.

A Message from Damon Rowe, Executive Director, IRS Office of Fraud Enforcement

Observing International Fraud Awareness Week

As part of a continuing focus on tax compliance issues, the IRS created the Office of Fraud Enforcement to support IRS efforts to detect and deter fraud while strengthening the national fraud program. 

In observation of International Fraud Awareness Week, we will promote the incredible investment the IRS has made in the area of fraud enforcement. This week, we will take part in a global effort to minimize the impact of fraud, including tax fraud, by promoting fraud awareness and education. The IRS’s efforts to combat tax and other financial fraud help protect taxpayers around the world and highlight how important fraud prevention is to society. 

Foreign Account Tax Compliance Act (FATCA)

FATCA refers to the Foreign Account Tax Compliance Act that requires reporting on specified foreign accounts by U.S. taxpayers and foreign financial institutions. In general, federal law requires U.S. citizens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts.

Source :　https://www.irs.gov/newsroom/whats-hot
US TAX, U.S. TAX

 
The IRS recently launched a new feature in its Child Tax Credit Update Portal, allowing families receiving monthly advance child tax credit payments to update their income.

Families should enter changes by November 29, so the changes are reflected in the December payment. Once the update is made, the IRS will adjust the payment amount to ensure people receive their total advance payment for the year. For married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses' future monthly advance payments of the child tax credit.

Who should use the income feature 

The new income feature can help families make sure they are getting the right amount of advance child tax credit payments during 2021. It is especially useful to any family who wants to raise or lower their monthly payments because their 2021 income changed substantially from 2020.

In many cases a big income swing can raise or lower a family's monthly payments. Normally, this means that small changes in income will not impact the payment amount and need not be entered into the CTC UP.

Changes made before midnight on November 29 will only impact the December 15 payment, which is the last scheduled monthly payment for 2021. Payments in 2021 could be up to $1,800 for each child under age 6 and up to $1,500 for each child ages 6 through 17.

Families need to claim the remaining portion of their child tax credit on their 2021 tax return.

Who may qualify for a bigger payment

In some cases, families currently receiving monthly payments that are below the maximum may qualify to have their payments increased. For example, they experienced job loss during 2021, or for some other reason are receiving substantially less income this year. If the reduction in income is large enough, reporting that change now may increase the amount of their advance CTC payments for the rest of this year.

For any family already receiving the maximum payment, a drop in income will not increase the payment amount.

Most families are receiving half of the total CTC through monthly payments. This means any changes they enter in the CTC UP will increase or decrease their monthly payments to ensure they receive half of their total expected credit before the end of 2021.


 
Who should have their payments reduced

Any family whose income rose substantially in 2021 should consider using the Child Tax Credit Update Portal to update their income and have their payments reduced. This is especially true if they are now receiving the maximum monthly payment, and they expect to qualify for less than the full credit when they file their 2021 federal income tax return. For more information on calculating the CTC, see Topic C of the agency's frequently asked questions. Families who qualify for less than the full amount should see QC 4 and QC 5.

Using the portal to report income changes

Only families who are already eligible for and receiving advance CTC payments based on their 2020 tax return can use the CTC UP to update their income. Someone who filed a joint return for 2020 can only update their income if they plan to file a joint return for 2021 with the same spouse. IRS representatives cannot process income changes over the phone or at Taxpayer Assistance Centers.

After a family completes an income update, the CTC UP will acknowledge the change but will not display the change. Likewise, IRS representatives won't be able to confirm an update.

Source :　https://www.irs.gov/newsroom/families-can-now-report-income-changes-using-the-child-tax-credit-update-portal
US TAX, U.S. TAX

 
WASHINGTON — The Internal Revenue Service today encouraged taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, to take important steps this fall to help them file their federal tax returns in 2022.

Planning ahead can help people file an accurate return and avoid processing delays that can slow tax refunds.

This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to prepare to file a 2021 tax return next year.

Gather and organize tax records

Organized tax records make preparing a complete and accurate tax return easier. It helps avoid errors that lead to processing and refund delays. Individuals should have all their tax information available before filing to ensure the return is complete and accurate. They should notify the IRS if their address changes and notify the Social Security Administration of a legal name change.

Remember, most income is taxable. Recordkeeping for individuals includes:


Forms W-2 from employer(s)
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
Form 1099-INT for interest received
Other income documents and records of virtual currency transactions


Income documents can help individuals determine if they're eligible for deductions or credits. Additionally, people who need to reconcile their advance payments of the Child Tax Credit and Premium Tax Credit will need their related 2021 information. Those who received third Economic Impact Payments and think they qualify for an additional amount will need their stimulus payment and plus-up amounts to figure and claim the 2021 Recovery Rebate Credit.

Taxpayers should also keep end of year documents including:


Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance Child Tax Credit payments
Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage


Online Account securely provides tax account information on IRS.gov; helps provide important filing information

Taxpayers who access Online Account can securely gain entry to the Child Tax Credit Update Portal to see their payment dates and amounts. Taxpayers will need this information to reconcile their advance Child Tax Credit payments with the Child Tax Credit they can claim when they file their 2021 tax returns.

Eligible individuals claiming a 2021 Recovery Rebate Credit can log in to their online account to see their Economic Impact Payment amounts so they can accurately claim the credit when they file.

Individuals who have not set up an Online Account yet should act soon to create an account. People who have already set up an Online Account should make sure they can still log in successfully.





 
Taxpayers who have an Online Account may:


View the amounts of their Economic Impact Payments
Access Child Tax Credit Update Portal for information about their advance Child Tax Credit payments
View key data from your most recent tax return and access additional records and transcripts
View details of your payment plan if you have one
View 5 years of payment history and any pending or scheduled payments


Taxpayers should make sure they've withheld enough tax

Individuals may want to consider adjusting their withholding if they owed taxes or received a large refund the previous year. Changing withholding can help avoid a tax bill or let individuals keep more money each payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also be reasons to change withholding. Taxpayers might think about completing a new Form W-4, Employee's Withholding Certificate, each year and when personal or financial situations change.

People also need to consider estimated tax payments. Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2021 is due on Jan. 18, 2022.

Individuals can log in to their Online Account to make a payment online or go to IRS.gov/payments.

ITINs need to be renewed only if expired and if needed on a U.S. federal tax return

If an Individual Taxpayer Identification Number (ITIN) was not included on a U.S. federal tax return at least once for tax years 2018, 2019 and 2020, the ITIN will expire on Dec. 31, 2021.

As a reminder, ITINs with middle digits 70 through 88 have expired. In addition, ITINs with middle digits 90 through 99, IF assigned before 2013, have expired. Individuals who previously submitted a renewal application that was approved, do not need to renew again.

Want a faster refund? Getting banked speeds tax refunds with direct deposit

Direct deposit gives individuals access to their refund faster than a paper check. Those without a bank account can learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool.

Veterans should see the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks.

Volunteer to help eligible taxpayers file their returns

The IRS and its community partners are preparing for the upcoming filing season and are looking for people around the country to become IRS-certified volunteers. Join the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. VITA/TCE volunteers provide free tax return preparation for eligible taxpayers. With many people experiencing financial changes this year, additional volunteers are needed to assist them.

Visit IRS.gov/volunteers to learn more and sign up. After signing up, more information about attending a virtual orientation will be provided.

Source :　https://www.irs.gov/newsroom/get-ready-for-taxes-easy-steps-taxpayers-can-take-now-to-make-tax-filing-easier-in-2022

US TAX, U.S. TAX

Taxpayers can find answers to most questions about tax payments and penalties on IRS.gov. The Let Us Help You page, features links to information and resources on a wide range of topics related to penalties and payments.

Payments

Payment options


This page lays out the different ways taxpayers can pay what they owe, from having the payment taken directly from their bank account to using a credit card.


Payment plan


Taxpayers who cannot pay what they owe in full can learn their options on this page.


View balance and payment history


Individual taxpayers can use this tool to check their account and see things like the total amount they owe and their payment history.


Liens and levies

These links explain what a lien and a levy are, and the effect of each legal action. 


Understanding a federal tax lien
Understanding a levy


 





 



Resolve a dispute

The Office of Appeals is an independent organization within the IRS that helps taxpayers resolve their tax disputes. This page has links to information that will help taxpayers who received a notice saying their case qualifies to be reviewed by Appeals.


Office of Appeals


Prevent future tax bill

Taxpayers who owed more than expected when they filed this year have a couple options to help them avoid that when they file next year. These pages have more info about the options.


Tax Withholding Estimator
Estimated payments


Penalties

These links take the user to information where they can find out more about topics related to penalties and penalty relief.


Penalties
Penalty relief/abatement
Penalty relief for under withholding
Help for struggling taxpayers 


Source :
https://www.irs.gov/newsroom/taxpayers-can-find-answers-to-questions-about-payments-and-penalties-on-irsgov
US TAX, U.S. TAX

Taxpayers have the right to challenge the IRS's position and be heard. This is part of the Taxpayer Bill of Rights, which clearly outlines the fundamental rights every taxpayer has when working with the IRS.

Taxpayers have the right to:


Raise objections.
Provide additional documentation in response to formal or proposed IRS actions.
Expect the IRS to consider their timely objections.
Have the IRS consider any supporting documentation promptly and fairly.
Receive a response if the IRS does not agree with their position.


Here are some specific things this right affords taxpayers.


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 that 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 upholds the taxpayer's position.





 

Here's what will happen if the IRS does not agree with the taxpayer's position:

The agency will issue a notice proposing a tax adjustment. This is a letter that comes in the mail.
This notice provides the taxpayer with a right to challenge the proposed adjustment.
The taxpayer makes this challenge by filing a petition in U.S. Tax Court. The taxpayer must generally file the 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 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 for a hearing before an independent Office of Appeals. The agency must do this:

Before taking enforcement actions to collect a tax debt. These actions include levying the taxpayer's bank account. Immediately after filing a notice of federal tax lien in the appropriate state filing location. If the taxpayer disagrees with the decision of the Appeals Office, they can petition the U.S. Tax Court.



Source :
https://www.irs.gov/newsroom/all-taxpayers-have-the-right-to-challenge-the-irss-position-and-be-heard
US TAX, U.S. TAX

 


[安插點]

Our filing season statistics present data from all Forms 1040 processed by the IRS at three critical points during the year: late May, mid-July, and mid-November.

The late-May filing season statistics by adjusted gross income (AGI) summarize the data from all individual income tax returns filed with the IRS by late May. These tables primarily reflect income earned in the year preceding the filing year, and reported to the IRS by the April 15 filing deadline. These data exclude taxpayers who requested a 6-month filing extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. The data represent approximately 90 percent of all returns that will be processed by the IRS in the calendar year. Because taxpayers who request an extension generally have more complex finances, on average, the data reflect 84 percent of the total AGI and 80 percent of the total tax liability that will be reported for all individual income tax returns filed during the year.
Statistics from returns processed by mid-July update the data from the late-May filing season statistics. These statistics represent approximately 95 percent of all individual filers, 87 percent of total AGI, and 82 percent of total tax liability.
Data in the last set of tables, the mid-November filing season statistics by AGI, reflect nearly all individual income tax returns that will be received and processed in the calendar year, including any returns filed by the April 15 deadline and granted a 6-month extension.


These filing season statistics are presented in two sections.


First section: Expanded tables present data for selected sources of income, deductions, credits, and taxes for returns filed for the prior tax year.
Second section: Includes distributional data for AGI, income tax after credits, and the share of income from the sale of capital assets for returns filed for the prior tax year and some late-filed returns for earlier tax years.


 



Filing Season Statistics

The statistics present data from the population of all Forms 1040 processed in Calendar Year 2018 for Tax Year 2017. Data are presented for select sources of income, deductions, credits, and individual income taxes. The tables are classified by AGI classifications. Data represent the three critical points in the annual filing season and form a baseline for comparison of year to year trends. 

Late-May Filing Season Statistics by AGI

These tables present data from the population of all Forms 1040 processed by the IRS on or before week 21 of the calendar year. Returns filed reflect income earned in the year preceding the filing year, but exclude taxpayers who requested a 6-month filing extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

2018    2019    2020   2021*

* Due to the new filing deadline for 2021 and delays in return processing caused by the Covid-19 pandemic, for 2021 data are presented for returns filed on or before week 26 (end of June) instead of week 21.

Mid-July Filing Season Statistics by AGI

These tables present data from the population of all Forms 1040 processed by the IRS on or before week 30 of the calendar year. Returns filed reflect income earned in the year preceding the filing year, but exclude taxpayers who requested a 6-month filing extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

2018   2019   2020  2021 

Mid-November Filing Season Statistics by AGI

These tables present data from the population of all Forms 1040 processed by the IRS on or before week 47 of the calendar year. Returns filed reflect income earned in the year preceding the filing year.

2018  2019  2020*

* Due to delays in return processing caused by the Covid-19 pandemic, for 2020 data are presented for returns filed on or before week 53 (late-December) instead of week 47.


Distributional Data Presented for Adjusted Gross Income, Income Tax After Credits, and Share of Income From Sales of Capital Assets

These data have been developed as part of a research program to provide authoritative data for use by researchers that would avoid the inaccuracies that may occur by using incomplete data. The statistics primarily represent income earned in the prior year, but will include some late-filed returns for earlier tax years.

The final column in each table indicates the share of income from the sale of capital assets represented in the income presented. By comparing the data presented in these tables over time, they can be used to develop early estimates of changes in the economy or to update forecasts of economic activity that were developed using older data.

Late-May Statistics by AGI

These tables present information from the population of all Forms 1040 processed by the IRS on or before week 21 of the calendar year. Returns filed primarily reflect income earned in the year preceding the Filing Year, but exclude taxpayers who requested a 6-month filing extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

2010      2011      2012      2013      2014      2015      2016      2017      2018      


Mid-July Statistics by AGI

These tables present information from the population of all Forms 1040 processed by the IRS on or before week 30 of the calendar year. Returns filed primarily reflect income earned in the year preceding the Filing Year, but exclude taxpayers who requested a 6-month filing extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

2010      2011      2012      2013      2014      2015      2016      2017      2018 


Mid-November Statistics by AGI

These tables present information from the population of all Forms 1040 processed by the IRS on or before week 47 of the calendar year. Returns filed primarily reflect income earned in the year preceding the Filing Year.


Source :
https://www.irs.gov/statistics/filing-season-statistics

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If the IRS does call a taxpayer, it should not be a surprise because the agency will generally send a notice or letter first. Understanding how the IRS communicates can help taxpayers protect themselves from scammers who pretend to be from the IRS with the goal of stealing personal information.
Here are some facts about how the IRS communicates with taxpayers:


The IRS doesn't normally initiate contact with taxpayers by email. Do not reply to an email from someone who claims to be from the IRS because the IRS email address could be spoofed or fake. Emails from IRS employees will end in IRS.gov.
The agency does not send text messages or contact people through social media. Fraudsters will impersonate legitimate government agents and agencies on social media and try to initiate contact with taxpayers.
When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service. Debt relief firms send unsolicited tax debt relief offers through the mail. Fraudsters will often claim they already notified the taxpayer by U.S. Mail.
Depending on the situation, IRS employees may first call or visit with a taxpayer. In some instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always. Taxpayers can search IRS notices by visiting Understanding Your IRS Notice or Letter. However, not all IRS notices are searchable on that site and just because someone references an IRS notice in email, phone call, text, or social media, does not mean the request is legitimate.
IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit. The IRS encourages taxpayers to review, How to Know it's Really the IRS Calling or Knocking on Your Door: Collection.





Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice. Private debt collection should not be confused with debt relief firms who will call, send lien notices via U.S. Mail, or email taxpayers with debt relief offers. Taxpayers should contact the IRS regarding filing back taxes properly.
IRS revenue officers and agents routinely make unannounced visits to a taxpayer's home or place of business to discuss taxes owed, delinquent tax returns or a business falling behind on payroll tax deposits. IRS revenue officers will request payment of taxes owed by the taxpayer. However, taxpayers should remember that payment will never be requested to a source other than the U.S. Treasury.
When visited by someone from the IRS, the taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.



Source :
https://www.irs.gov/newsroom/taxpayers-can-protect-themselves-from-scammers-by-knowing-how-the-irs-communicates

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Individual Retirement Arrangements, or IRAs, provide tax incentives for people to make investments that can provide financial security for their retirement. These accounts can be set up with a bank or other financial institution, a life insurance company, mutual fund or stockbroker.
Here's a basic overview to help people better understand this type of retirement savings account.


Contribution. The money that someone puts into their IRA. There are annual limits to contributions depending on their age and the type of IRA. Generally, a taxpayer or their spouse must have earned income to contribute to an IRA.
 
Distribution. The amount that someone withdraws from their IRA.
 
Withdraws. Taxpayers may face a 10% penalty and a tax bill if they withdraw money before age 59 ½, unless they qualify for an exception.
 
Required distribution. There are requirements for withdrawing from an IRA:

Someone generally must start taking withdrawals from their IRA when they reach age 70½.
Per the 2019 SECURE Act, if a person's 70th birthday is on or after July 1, 2019, they do not have to take withdrawals until age 72.
Special distribution rules apply for IRA beneficiaries.







Traditional IRA. An IRA where contributions may be tax-deductible. Generally, the amounts in a traditional IRA are not taxed until they are withdrawn.
 
Roth IRA. This type of IRA that is subject to the same rules as a traditional IRA but with certain exceptions:

A taxpayer cannot deduct contributions to a Roth IRA.
Qualified distributions are tax-free.
Roth IRAs do not require withdrawals until after the death of the owner.
 


Savings Incentive Match Plan for Employees. This is commonly known as a SIMPLE IRA. Employees and employers may contribute to traditional IRAs set up for employees. It may work well as a start-up retirement savings plan for small employers.
 
Simplified Employee Pension. This is known as a SEP-IRA. An employer can make contributions toward their own retirement and their employees' retirement. The employee owns and controls a SEP.
 
Rollover IRA. This is when the IRA owner receives a payment from their retirement plan and deposits it into a different IRA within 60 days.


Source :
https://www.irs.gov/newsroom/retirement-and-taxes-understanding-iras
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Every year the IRS mails letters or notices to taxpayers for many different reasons. Typically, it's about a specific issue with a taxpayer's federal tax return or tax account. A notice may tell them about changes to their account or ask for more information. It could also tell them they need to make a payment. This year, people might have also received correspondence about Economic Impact Payments or an advance child tax credit outreach letter.
Here are some do's and don'ts for anyone who receives mail from the IRS:


Don't ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do
 
Don't throw it away. Taxpayers should keep notices or letters they receive from the IRS. These include adjustment notices when an action is taken on the taxpayer's account, Economic Impact Payment notices, and letters about advance payments of the 2021 child tax credit. They may need to refer to these when filing their 2021 tax return in 2022. In general, the IRS suggests that taxpayers keep records for three years from the date they filed the tax return.
 
Don't panic. The IRS and its authorized private collection agencies do send letters by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take the appropriate action.
 
Don't reply unless instructed to do so. There is usually no need for a taxpayer to reply to a notice unless specifically instructed to do so. On the other hand, taxpayers who owe should reply with a payment. IRS.gov has information about payment options.
 
Do take timely action. A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return. Acting timely could minimize additional interest and penalty charges.





Do review the information. If a letter is about a changed or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should make notes about the corrections on their personal copy of the tax return and keep it for their records.
 
Do respond to a disputed notice. If a taxpayer doesn't agree with the IRS, they should mail a letter explaining why they dispute the notice. They should mail it to the address on the contact stub included with the notice. The taxpayer should include information and documents for the IRS to review when considering the dispute.
 
Do remember there is usually no need to call the IRS. If a taxpayer must contact the IRS by phone, they should use the number in the upper right-hand corner of the notice. The taxpayer should have a copy of their tax return and letter when calling the agency.
 
Do avoid scams. The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure if they owe money to the IRS can view their tax account information on IRS.gov.



Source :
https://www.irs.gov/newsroom/what-people-should-and-should-not-do-if-they-get-mail-from-the-irs

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The advance Child Tax Credit allows qualifying families to receive early payments of the tax credit many people may claim on their 2021 tax return during the 2022 tax filing season. The IRS will disburse these advance payments monthly through December 2021. Here some details to help people better understand these payments.
Who is a qualifying child for the purposes of the advance Child Tax Credit payment?

For tax year 2021, a qualifying child is an individual who does not turn 18 before January 1, 2022, and meets these requirements:


The individual is the taxpayer's son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or a descendant such as a grandchild, niece, or nephew.
The individual does not provide more than one-half of his or her own support during 2021.
The individual lives with the taxpayer for more than one-half of tax year 2021. For exceptions to this requirement, see Publication 972, Child Tax Credit and Credit for Other Dependents PDF.
The individual is properly claimed as the taxpayer's dependent. For more information about how to do this, see Publication 501, Dependents, Standard Deduction, and Filing Information PDF.
The individual does not file a joint return with the individual's spouse for tax year 2021 or files it only to claim a refund of withheld income tax or estimated tax paid.
The individual was a U.S. citizen, U.S. national, or U.S. resident alien. For more information on this condition, see Publication 519, U.S. Tax Guide for Aliens PDF.


What should someone do if they don't want to receive advance Child Tax Credit payments?

Anyone who does not want to receive monthly advance Child Tax Credit payments because they would rather claim the full credit when they file their 2021 tax return, or because they know they will not be eligible for the credit in 2021 can unenroll through the Child Tax Credit Update Portal. People can unenroll at any time, but deadlines apply each month for the update to take effect for the next payment.

For people married and filing jointly, they and their spouse must unenroll using the Child Tax Credit Update Portal. If only one person unenrolls, they will still receive half the normal payment. Similarly, if you are changing bank account information, both of you must make the update so both halves of your payment go to the new account.



Will receiving advance Child Tax Credit payments affect other government benefits?

No. Advance child tax credit payments cannot be counted as income when determining if someone is eligible for benefits or assistance, or how much they can receive, under any federal, state or local program financed in whole or in part with federal funds. These programs cannot count advance child tax credit payments as a resource when determining eligibility for at least 12 months after payments are received.

Are advance Child Tax Credit payments taxable?

No. These payments are not income and will not be reported as income on a taxpayer's 2021 tax return. These payments are advance payments of a person's tax year 2021 child tax credit.

However, the total amount of advance Child Tax Credit payments someone receives is based on the IRS's estimate of their 2021 Child Tax Credit. Generally, the IRS uses information from previous tax returns to calculate a person's estimate. If the total is greater than the child tax credit amount, they can claim on their 2021 tax return, they may have to repay the excess amount on their 2021 tax return. For example, if someone receives advance Child Tax Credit payments for two qualifying children claimed on their 2020 tax return, but they no longer have qualifying children in 2021, the advance payments they received are added to their 2021 income tax unless they qualify for repayment protection.



Source :
https://www.irs.gov/newsroom/common-questions-about-the-advance-child-tax-credit-payments

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