What happens when a tax-exempt agency seems to be skirting tax laws? On its website, the IRS explains the process of filing a complaint when violations of laws or IRS rules are suspected. Agencies that apply for and are granted a tax-exemption can generally operate free of most tax as long as they meet the […]

The tax code provides a credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks. The IRS has added Ford, Hyundai and Porsche models to the list of vehicles eligible for the credit. They are the 2021: Ford Mustang Mach-E GT ($7,500); Hyundai Ioniq Plug-In Hybrid EV ($4,543); Hyundai […]

The IRS is providing more information about the advance payments of the Child Tax Credit (CTC) that will begin being made on July 15 to eligible families. On its website, the IRS explained that it will send “Letter 6417” to recipients before it disburses advance payments to them. The letter will inform taxpayers of the […]

Taxpayers who skirt tax rules could be banned by the IRS from claiming certain tax credits, according to the National Taxpayer Advocate (NTA). These taxpayers could lose the ability to claim: the Earned Income Tax Credit, the Child Tax Credit, the American Opportunity Tax Credit and the credit for other dependents. Most taxpayers act responsibly […]

Cybersecurity challenges continue at the IRS, according to a Government Accountability Office (GAO) report. The GAO noted that, in May 2019, they’d given the IRS eight recommendations for tightening cybersecurity, and the IRS agreed with them. But a more recent look showed “inaction” on six of those issues, including having a comprehensive cybersecurity strategy and […]

In April 13 testimony before the U.S. Senate Finance Committee, IRS Commissioner Charles Rettig said that he believes the annual “tax gap” may total $1 trillion annually. The tax gap is the difference between taxes owed the U.S. government and taxes paid. He noted that this amount was more than double the $441 billion amount […]

Spouses filing a joint federal income tax return generally are both liable for the tax owed. But those who qualify may seek “innocent spouse relief” from joint liability. In one case, the ex-wife of an attorney-turned-physician was denied this relief relating to tax returns filed for 2008-2010. She signed the returns and said she assumed […]

More than $1.3 billion in unclaimed tax refunds from 2017 are waiting at the IRS, but they won’t be available much longer. Taxpayers generally have a three-year window to claim tax refunds, and for 2017 that window slams shut on May 17th. The IRS estimates that 1.3 million taxpayers are owed refunds, but they haven’t […]