TaxConnections


 

Tag Archive for IRS Notice

Get Ready For Taxes: Tax Reform Changes Likely To Reduce Number Of Taxpayers Who Itemize

IRS - Itemized Deductions

The Internal Revenue Service advised taxpayers that the doubling of the standard deduction due to tax law changes is likely to reduce the number of taxpayers who normally itemize.

This is the sixth in a series of reminders to help taxpayers Get Ready for the upcoming tax filing season. The IRS has recently updated  its Get Ready page with steps to take now for the 2019 tax filing season.

In previous years, about one out of three taxpayers itemized. The IRS expects that number to be less for tax year 2018. The Tax Cuts and Jobs Act (TCJA) passed in December 2017, significantly affects deductions in several ways, impacting those taxpayers who normally itemize.

Read more

How To Turn IRS Notices Into A Marketing Opportunity

Well, last week Nina Olson, who’s the National Taxpayer Advocate at IRS, came out and stated that the real audit rate in the United States is 6.2%, not 7/10 of 1%. Just to put that in perspective, 7/10 of 1% equates to just over a million audits, and 6.2% equates to nearly 7 million audits. So who’s right? Who’s wrong?

How do you turn that into a marketing opportunity? Here is what the IRS is doing. Their headcount has been decimated over the last 3 or 4 years. It’s down by 23%. So more and more, the IRS is relying on technology, and their computers are generating automatic notices. 70% of the time they’re incorrect. Read more

Get Ready To File Taxes

With the tax filing season right around the corner, the IRS encourages taxpayers to visit IRS.gov for tax tools and resources. Taxpayers can resolve nearly every tax issue on the IRS website.

IRS.gov provides many self-service tools and features, including these six: Read more

Don’t Panic If You Receive An IRS Notice

Complications If it is not your refund check in the mailbox, that letter from the IRS will probably increase your heart rate a little. Don’t panic; many of these letters can be dealt with simply and painlessly.

Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account, or to request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what needs to be done to satisfy the inquiry.

However, the letters also must advise you of your rights and other information required Read more

How The IRS Selects Returns For Examination

I must say that the overwhelming majority of taxpayers file returns and make tax payments timely and accurately. As such taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily.

Four Ways That Returns Are Selected for Examination

1. Potential participants in abusive tax avoidance transactions — Some returns are selected based on information obtained by the IRS through efforts to identify promoters and participants of abusive tax avoidance transactions. Examples include information received from “John Doe” summonses issued to foreign and domestic banks, credit card companies, businesses and participant lists from promoters ordered by the courts to be Read more

Meet Tax Experts At TaxConnections...