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Thursday, June 28, 2018, 11:29 | No Comments »

Taxpayers who make an effort to comply with the law, but are unable to meet their tax obligations due to circumstances beyond their control may qualify for relief from penalties.

After receiving a notice stating the IRS assessed a penalty, taxpayers should check that the information in the notice is correct. Those who can resolve an issue in their notice may get relief from certain penalties, which include failing to:

  • File a tax return
  • Pay on time
  • Deposit certain taxes as required

The IRS offers the following types of penalty relief:

Reasonable cause
 This relief is based on all the facts and circumstances in a taxpayer’s situation. The IRS will consider this relief when the taxpayer can show they tried to meet their obligations, but were unable to do so. Situations when this could happen include a house fire, natural disaster and a death in the immediate family.

Administrative Waiver and First Time Penalty Abatement
 A taxpayer may qualify for relief from certain penalties if he or she:

  • Didn’t previously have to file a return or had no penalties for the three tax years prior to the tax year in which the IRS assessed a penalty.
  • Filed all currently required returns or filed an extension of time to file.
  • Paid, or arranged to pay, any tax due.

Before asking for First Time Abatement relief, taxpayers can request that the IRS first consider the reasonable cause relief provision. This preserves access to the First Time Abatement, which taxpayers may only use every three years.

Statutory Exception
 In certain situations, legislation may provide an exception to a penalty. Taxpayers who received incorrect written advice from the IRS may qualify for a statutory exception.

Taxpayers who received a notice or letter saying the IRS didn’t grant the request for penalty relief may use the Penalty Appeal Online Self-help Tool.

More Information:
Common Penalties for Individuals
Penalty Relief
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum

Share this tip on social media -- #IRSTaxTip: Here’s what taxpayers should know about penalty relief https://go.usa.gov/xUazr

IRS Tax Tip 2018-100

Monday, March 12, 2018, 11:52 | No Comments »

When a taxpayer changes their name, that change can affect their taxes. All the names on a taxpayer’s tax return must match Social Security Administration records. A name mismatch can delay a tax refund. Here’s what a taxpayer should do if anyone listed on their tax return changed their name:

  • Reporting Taxpayer’s Name Change. Taxpayers who should notify the SSA of a name change include:
    • Taxpayers who got married and use their spouse’s last name.
    • Recently married taxpayers who now use a hyphenated name.
    • Divorced taxpayers who now use their former last name.
  • Reporting Dependent’s Name Change. Taxpayers should notify the SSA if a dependent’s name changed.  This includes an adopted child who now has a new last name. If the child doesn’t have a Social Security number, the taxpayer may use a temporary Adoption Taxpayer Identification Number on the tax return. Taxpayers can apply for an ATIN by filing a Form W-7A.
  • Getting a New Social Security Card. Taxpayers who have a name change should get a new card that reflects a name change. File Form SS-5, Application for a Social Security Card. Taxpayers can get the form on SSA.gov or by calling 800-772-1213.


More Information: 
Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions

 

IRS YouTube Videos: 
Changed Your Name after Marriage or Divorce? – English| Spanish | ASL

IRS Tax Tip 2018-36

 


Wednesday, March 7, 2018, 14:01 | No Comments »

The Where's My Refund? tool gives taxpayers access to their tax return and refund status anytime. All they need is internet access and three pieces of information:

  • Their Social Security number.
  • Their filing status.
  • The exact whole dollar amount of their refund.  

Taxpayers can start checking on the status of their return within 24 hours after the IRS received their e-filed return, or four weeks after they mail a paper return. Where’s My Refund? includes a tracker that displays progress through three stages: the IRS receives the tax return, then approves the refund, and sends the refund.

Where’s My Refund? updates once every 24 hours, usually overnight. Taxpayers should remember that checking the status more often will not produce new results. Taxpayers on the go can track their return and refund status on their mobile devices using the free IRS2Go app. Those who file an amended return should check out the Where’s My Amended Return? tool. 

Generally, the IRS issues most refunds in less than 21 days, but some may take longer. IRS phone and walk-in representatives can research the status of refunds only if it's been 21 days or more since a taxpayer filed electronically, or more than six weeks since they mailed a paper return. Taxpayers can also contact the IRS if Where's My Refund? directs them to do so.

There is a misconception that a tax transcript can help taxpayers determine the status of their refund. The information included on a transcript does not necessarily reflect the amount or timing of a refund. Transcripts are best used to validate past income and tax filing status for loan applications, and to help with tax preparation.

 IRS Tax Tip 2018-35

Wednesday, January 24, 2018, 14:55 | No Comments »

The IRS encourages taxpayers who are “seriously delinquent” on their taxes – those who owe more than $51,000 in back taxes, penalties and interest -- to pay what they owe or enter into a payment agreement with the IRS. Seriously delinquent taxpayers risk losing their passports or having their passport applications or renewals denied.

IRS e-News for Tax Professionals - Issue 2018-3

Thursday, January 18, 2018, 16:58 | No Comments »

The Internal Revenue Service this week released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps the IRS will take to help improve the accuracy of withholding following major changes made by the new tax law.

IRS e-News for Tax Professionals - Issue 2018-2

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