Everyone is aware of what the Internal Revenue Service does, especially when they file their tax returns, but what exactly is an External Revenue Service and how would this impact you? Proposed Agency An External Revenue Service would be responsible for collecting tariffs from foreign goods that are sold in the U.S. Tariffs are expected […]
IRS
How Many Returns Are Unprocessed by the IRS?
Can you guess how many tax returns are unprocessed by the IRS as of the middle of March? The number is 7 million unprocessed individual returns. It is taking the IRS more than 21 days to issue any related refunds and in some cases it can take 90 to 120 days. If there are any […]
How Does the Recovery Rebate Credit Work?
The recovery rebate is a credit for taxpayers who either did not receive or received less than the full amount of their Economic Impact Payments. Here’s how it works for the 2021 tax year: Economic Impact Payments and plus-up payments were issued during 2021 from March through December. If you received the full amount of […]
Challenges at the IRS
The IRS is facing many challenges that have carried over from last year. According to the IRS, its workforce has shrunk by 17% from 2010, while its workload, as measured by the number of individual return filings, has increased by 19 percent. What are some issues and what can you do for this tax filing […]
Tax Deadline & Updates
You may have heard that the IRS extended the individual tax deadline by one month to May 17th, but there are important updates to know as follows: The deadline to file corporate taxes has not been extended and is still April 15th States are expected to extend their deadline, but we’ll have to wait and […]
Possible Extensions
There have been major challenges with being able to file tax returns, especially business returns, which are due soon on March 15th for s-corporations and partnerships. This relates to new tax laws, loan forgiveness, and delays with states approving tax forms and software. Additionally, New Jersey has new complexities with its new BAIT (Business Alternative […]
IRS Delays Tax Season Plus Important Deadline Reminders
With all of the last minute tax law changes the IRS needs more time to program their systems. Here are important filing dates: February 12th: IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins. February 22nd: Projected date for the IRS.gov Where’s My Refund tool being updated for those claiming […]
What’s Your Chance of an IRS Audit?
The IRS publishes statistics regarding the percentage of returns that have been examined by type of return. Not surprisingly, some taxpayers have a greater chance of being audited than others according to the latest statistics. Let’s take a look at some stats: The majority of audits, 74.8%, were conducted via correspondence, and the remaining 25.2% […]
What Should You Do When You Receive a Notice from the IRS?
Did you notice that the title states “when” and not “if” you receive a notice? The volume of notices received from the IRS, along with those from the states, has steadily increased over the years, which means that the odds of you receiving a notice are pretty high. What are some of the steps you […]
8 Red Flags That Could Trigger an IRS Small Business Audit
My colleague, Brad Paladini, has granted me permission to post this article that was originally posted on his blog: Last year, the Internal Revenue Service (IRS) audited just over one million returns. That’s a lot less than the 1.74 million returns they audited in 2010, but it’s still no fun for the millions of taxpayers that had […]