Federal Tax Posts

More than 130 million individuals have already received Economic Impact Payments (EIPs) worth more than $200 billion, according to the IRS. “Millions more are on the way every week,” said IRS Commissioner Chuck Rettig, to help offset economic damage caused by the novel coronavirus (COVID-19) crisis. The U.S. Treasury Dept. and the IRS have just released a state-by-state breakdown showing how payments made in the [...]

The U.S. House has passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The bill would provide more than $1 trillion of aid to state, local, territorial and tribal governments to pay first responders and health care workers. It would also provide an additional recovery rebate, similar to the CARES Act economic impact payment. The recovery rebate would be $1,200 per eligible taxpayer [...]

The federal government logged an estimated budget deficit of $1.48 trillion for the first seven months of fiscal year 2020, which a Congressional Budget Office (CBO) report said “appears to be unprecedented.” The deficit was $949 billion more than the same period last year, as receipts fell $200 billion and outlays rose $749 billion. “That substantial difference stems from the economic disruption caused by the [...]

May 13 is the deadline to provide the IRS with information to get an Economic Impact Payment (EIP) via direct deposit. The IRS has stated that taxpayers who qualify for, but haven’t received their EIP, should provide the direct deposit bank information on the IRS’s “Get My Payment” website by noon on May 13. The tax agency said this step will help avoid the delay [...]

Some people have reported receiving Economic Impact Payments from the federal government that were sent in error. These are the payments the IRS is sending to Americans who meet certain requirements to help mitigate the effects of the novel coronavirus (COVID-19) pandemic. What should you do if you receive a payment and you’re not entitled to it or the amount is more than you’re entitled [...]

The IRS has announced that recipients of Veterans Affairs (VA) benefits will automatically receive Economic Impact Payments (EIPs). It noted that the timing of the payments is still being determined. If individuals who receive VA benefits have dependent children and haven’t filed federal taxes in 2018 or 2019, they must register with the IRS “Non-filers” website. Enter payment information, such as a bank account, to [...]

The Social Security Administration has provided guidance for Social Security recipients using the IRS “Non-filers” website to report information needed to receive Economic Impact Payments (EIPs). Specifically, those with Direct Express debit cards who enter information at the IRS’s website must complete all of the mandatory questions, but they may leave the bank account information blank as the U.S. Treasury already has their Direct Express [...]

What might the price tag for the Coronavirus Aid, Relief and Economic Security (CARES) Act be? In a letter to the U.S. Senate Budget Committee, the Congressional Budget Office and the Joint Committee on Taxation estimated that the CARES Act will add more than $1.8 trillion to the federal deficit in the period of 2020-2030. The estimate included: a $988 billion rise in mandatory outlays; [...]

The IRS workload continues, in spite of added challenges. A Treasury Inspector General for Tax Administration (TIGTA) audit estimated that for 2020, the IRS will receive and process roughly 155.1 million individual income tax returns. But, TIGTA said, “unlike any other filing season, the IRS is having to take unprecedented and drastic actions to address Coronavirus Disease 2019 (COVID-19) to protect the health and safety [...]

Do you know someone who receives Supplemental Security Income (SSI)? If so, that person should automatically receive a $1,200 Economic Impact Payment (EIP) “no later than early May,” according to the IRS. No further action is required on his or her part, even though SSI recipients typically aren’t required to file tax returns. The SSI program provides monthly payments to people with limited income. Moving [...]

Not everyone is successful using the IRS’s new Get My Payment tool. The tool is meant to help taxpayers check on the status of their Economic Impact Payments, which were sent to help ease the coronavirus (COVID-19) crisis. But a lot of people report they are getting a “Status Not Available” message when they try to use it. The IRS says the message could be [...]

The IRS says its new Get My Payment tool is now up and running. It allows taxpayers to check on the status of their Economic Impact Payments (EIPs), which are being sent to help ease the coronavirus (COVID-19) crisis. If you filed a 2018 or 2019 tax return, you can use the application to find out the projected date for when your payment will be [...]

The 5th U.S. Circuit Court of Appeals has held that an individual who successfully challenged in bankruptcy court a $40 million penalty assessed against him by the IRS wasn’t entitled to recover attorneys’ fees and costs. The individual failed to file his fee petition within 30 days of the final judgment in his favor, and the filing period wasn’t suspended. According to the court, viewing [...]

Under the tax code, “eligible individuals” can claim a refundable Health Coverage Tax Credit (HCTC). The credit is for a part of the premiums they paid for qualified health insurance coverage for themselves and qualifying family members. The IRS has provided election information about filing the HCTC form. The tax agency emphasizes that a taxpayer participating in the HCTC Advance Monthly Program must still file [...]