A recent report issued by the Treasury Inspector General for Tax Administration highlights the Internal Revenue Service’s efforts to combat tax evasion by “ghost employers” who fail to pay employment taxes. While the IRS has prosecuted over 30 cases since 2020 as part of its “Ghost Employer Project,” which aims to identify noncompliance with tax…… Read More
Senators Bill Cassidy and Elizabeth Warren have introduced the IRS MATH Act to address the confusion taxpayers face when receiving math error notices from the IRS, which often lack clarity and leave taxpayers unsure of how to respond. The legislation aims to improve these notices by requiring the IRS to specify the exact error, provide…… Read More
Rhode Island taxpayers impacted by severe storms and flooding since January 9, 2024, may be eligible for tax relief. On April 4th, the IRS extended the federal tax filing and payment deadline to July 15th, 2024, exclusively for Kent, Providence, and Washington counties residents (see more information on the following link). In response, the RI… Read More
The IRS has waived required withdrawals for some taxpayers who inherited retirement accounts since 2020, but experts warn it may not benefit heirs. The agency has extended relief for certain heirs facing changes in required minimum distributions (RMDs) rules for inherited retirement accounts, a move that experts argue may create confusion and potential financial risks.… Read More
With the recent conclusion of Tax season, IRS Commissioner Danny Werfel stated it was one of the best in years, attributing improvements to increased funding from the Inflation Reduction Act. Enhancements included expanded hours at walk-in sites, assistance to 170,000 more taxpayers in person, and a surge in IRS website visits, notably for the “Where’s… Read More
The IRS has alerted wealthy taxpayers to steer clear of three potential tax schemes perpetrated by “dishonest promoters and shady tax practitioners.” These scams involve art donations, where promoters advise taxpayers to purchase art at discounted prices, artificially inflate its value, and claim large charitable contribution deductions; Charitable Remainder Annuity Trusts (CRATs), where promoters encourage… Read More
The IRS issued guidance reminding taxpayers, including self-employed individuals, retirees, investors, businesses, and corporations, about the upcoming April 15 deadline for first-quarter estimated tax payments for the 2024 tax year. Since income taxes operate on a pay-as-you-go basis, individuals without taxes withheld are legally required to pay taxes as income is earned throughout the year.… Read More
This week, the IRS announced that nearly 940,000 individuals nationwide have unclaimed tax refunds for the 2020 tax year, with a looming deadline of May 17 for submitting their tax returns. Estimated at over $1 billion, the average median refund for 2020 stands at $932. IRS Commissioner Danny Werfel stressed the urgency, urging taxpayers not… Read More
The IRS has launched its annual Dirty Dozen list, cautioning taxpayers about evolving phishing and smishing scams aimed at stealing sensitive taxpayer data. With email and text scams persisting, the IRS and its Security Summit partners emphasize the need for continued vigilance among individuals and businesses. These scams often involve fraudsters coercing recipients into clicking… Read More
With tax season underway, the IRS has already issued over 43 million refunds totaling nearly $135.3 billion, with the average refund standing at $3,145 as of March 8, up from $2,972 compared to the same period in 2023. However, this average might fluctuate as the IRS anticipates receiving millions more returns. Despite expectations for a… Read More