Just because it’s summer vacation, it doesn’t mean the IRS won’t come after you. The IRS will still send letters out to taxpayers that are behind on their taxes. It’s important to remember when you get these letters not to panic. First of all, not every letter you receive will require action or mean that you owe anything and if it does, you usually have a frame of time to respond.
One of the biggest struggles we see with our clients is them trying to deal with a revenue officer by themselves. A revenue office is an IRS civil enforcement employee who works cases that involve an amount of money owed by a taxpayer or a delinquent tax return. Their job is to collect tax debts on those cases the IRS has deemed significant. Usually individuals who owe more than $250,000 to the IRS will be assigned a revenue officer.
The states of New York, Connecticut, Maryland and New Jersey have all sued the U.S. government in federal court over a part of the Tax Cuts and Jobs Act. The states are suing the government saying that the new $10,000 cap on state and local tax deductions (SALT) is an “unconstitutional assault on states’ sovereign choices.”
Veterans could be getting a few extra dollars in their pockets. The Internal Revenue Service announced that tax relief is available for veterans who received disability severance pay after January 17th, 1991 and included that payment as income on their taxes. This is a result of the Combat-Injured Veterans Tax Fairness Act passed in 2016.
With almost every type of scam taking over the country, it seems to be impossible to know for sure if it’s really the IRS calling or if it is someone else. You should always remember how the IRS will contact you, so you can avoid becoming a victim of identity theft. Here are a few facts to know about how the IRS communicates with taxpayers.
As the US continues to undergo major tax reform changes, there is one in particular that might catch your eye. The IRS released a draft of a new post-card sized Form 1040 that will streamline tax returns and allow all American taxpayers to use the same form. The updated form will replace and consolidate the 1040 with the 1040A and 1040EZ as well, eliminating the latter two. The IRS plans to complete the streamlined Form 1040 over the summer with the help of the tax professional community. The 1040 forms are the most common tax forms and this will be the first major change to the forms in decades.
If you’re a truck driver, you have an upcoming tax deadline that you don’t want to miss! The Highway Use Tax Return must be filed by August 31, 2018. Owners of most heavy highway vehicles must file Form 2290 by the deadline. Form 2290 applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more.
It’s that time of year! Every August, several states across the U.S. dedicate an entire weekend to tax free shopping! For those of you in Oklahoma, the annual sales tax holiday is this coming weekend, August 3 – 5. Retailers are required to participate and may not collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday.
Time is running out for taxpayers to disclose offshore financial assets to the IRS. The IRS is ending its Offshore Voluntary Disclosure Program (OVDP). The IRS will officially end the program on September 28th, giving taxpayers a little under two months to come forward with previously undisclosed foreign financial assets.