IRS Tax News

  • 11 Apr 2022 8:00 AM | Anonymous

    WASHINGTON — The Internal Revenue Service today reminds those who make estimated tax payments such as self-employed individuals, retirees, investors, businesses, corporations and others that the payment for the first quarter of 2022 is due Monday, April 18.

    The 2022 Form 1040-ES, Estimated Tax for Individuals, can help taxpayers estimate their first quarterly tax payment.

    Income taxes are a pay-as-you-go process. This means, by law, taxes must be paid as income is earned or received during the year. Most people pay their taxes through withholding from paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

    Most often, those who are self-employed or in the gig economy need to make estimated tax payments. Similarly, investors, retirees and others often need to make these payments because a substantial portion of their income is not subject to withholding. Other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income. Paying quarterly estimated taxes will usually lessen and may even eliminate any penalties.

    Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers and fishers, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. See Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and its instructions for more information.

    How to pay estimated taxes
    Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. The best way to make a payment is through IRS Online Account. There taxpayers can see their payment history, any pending payments and other useful tax information. Taxpayers can make an estimated tax payment by using IRS Direct Pay; Debit Card, Credit Card or Digital Wallet; or the Treasury Department's Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. If paying by check, taxpayers should be sure to make the check payable to the "United States Treasury."

    Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can be especially helpful to those who have dividend or capital gain income, owe alternative minimum tax or self-employment tax, or have other special situations.

    IRS.gov assistance 24/7
    Tax help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions.

    The IRS is continuing to expand ways to communicate to taxpayers who prefer to get information in other languages. The IRS has posted translated tax resources in 20 other languages on IRS.gov. For more information, see We Speak Your Language.


  • 11 Apr 2022 7:59 AM | Anonymous

    WASHINGTON – As the federal tax filing deadline approaches later this month, the Internal Revenue Service today announced that many Taxpayer Assistance Centers will be open around the country this Saturday, April 9 for face-to-face help.

    This special Saturday help is available from 9 a.m. to 4 p.m., and no appointment is needed. Normally, TACs are only open by appointment on weekdays.

    “We are inviting anyone who wants or needs some assistance to stop by,” said IRS Wage & Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin. “We designed these extra weekend hours to make it easier for taxpayers to resolve an issue, inquire about their account or work with the IRS if they have an obligation they cannot meet. Whatever the case, face-to-face help will be available on this special day without an appointment.”

    People can also ask about reconciling advance Child Tax Credit or third round Economic Impact Payments or inquire about various other services available while at an IRS office. If assistance from IRS employees specializing in these services is not available, the individual will receive a referral for these services. IRS staff will schedule appointments for a later date for deaf or hard of hearing individuals who need sign language interpreter services. Foreign language interpreters will be available.

    While no tax return preparation will be available at any IRS TAC, the IRS.gov webpage, Contact your local office, lists all services provided. Taxpayers can make payments by check or money order. The IRS will not accept cash during these events.

    Come prepared with paperwork
    The IRS urges individuals to bring the following information:

    • Current government-issued photo identification
    • Social Security cards and/or ITINs for members of their household, including spouse and dependents (if applicable)
    • Any IRS letters or notices received and related tax and financial documents

    During the visit, IRS staff may also request the following information:

    • A current mailing address, and
    • Bank account information, to receive payments or refunds by Direct Deposit.

    The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. It’s mandatory for people to wear face masks and social distance at these events when required by CDC guidance, such as in high transmission counties.

    Most taxpayers can get help preparing and filing their 2021 federal tax returns using these free, safe and convenient resources:

    • Any individual or family earning $73,000 or less in 2021 can use tax software from providers who make their online products available through IRS Free File at no cost. There are products in English and Spanish.
    • Free help preparing tax returns is available at a Volunteer Income Tax Assistance Center (VITA) or Tax Counseling for the Elderly location (TCE) sites. The income limit for VITA assistance is $58,000. To find the closest free tax return preparation help, use the VITA Locator Tool or call 800-906-9887. To find a TCE AARP Tax-Aide site, use the AARP Site Locator Tool or call 1-888-227-7669.

    More information:


  • 11 Apr 2022 7:58 AM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced that the application period for Low Income Taxpayer Clinic (LITC) matching grants for calendar year 2023 will open on or around May 2, 2022.

    The LITC Program is a federal grants program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. The Taxpayer Advocate Service operates as an independent organization within the IRS.

    “LITCs play an important role in ensuring the voices of low-income and English as a second language-taxpayers are heard,” Collins said. “The work they do is strengthened and enhanced by the many volunteers who give their time to help. I strongly encourage interested organizations and volunteers to join the LITC program to assist those in need.”

    Under Internal Revenue Code Section 7526, the IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain an LITC. Qualified organizations that are awarded grants ensure the fairness and integrity of the tax system for taxpayers who are low-income or speak English as a second language (ESL) by providing pro bono representation on their behalf in tax disputes with the IRS, educating them about their rights and responsibilities as taxpayers, and identifying and advocating on issues that impact them.

    When the application period opens, the IRS will consider applicants from all areas, but is particularly interested in receiving applications from organizations that will provide coverage in unserved areas. Presently, there are no LITCs operating in the states of Montana, Nevada, North Dakota and the territory of Puerto Rico. In addition, there are a few states that have uncovered counties that are in need of LITC representation.

    Underserved counties in need of LITC services

    • Arizona- Apache, Coconino and Navajo
    • Florida- Baker, Bradford, Brevard, Citrus, Clay, Columbia, Dixie, Duval, Flagler, Hamilton, Hernando, Lafayette, Lake, Madison, Nassau, Orange, Osceola, Seminole, St. John’s, Sumter, Suwanee, Taylor and Volusia
    • Idaho- Ada, Adams, Bannock, Bear Lake, Bingham, Boise, Bonneville, Butte, Canyon, Caribou, Clark, Clearwater, Custer, Franklin, Freemont, Gem, Idaho, Jefferson, Latah, Lemhi, Lewis, Lincoln, Madison, Nez Perce, Oneida, Owyhee, Payette, Power, Teton, Valley and Washington
    • North Carolina- Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gates, Granville, Greene, Guilford, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Sampson, Scotland, Stokes, Tyrrell, Vance, Wake, Warren, Washington, Wayne and Wilson
    • Pennsylvania- Bradford, Clinton, Monroe, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Union and Wyoming

    Who qualifies as an LITC
    Applicants must meet key requirements to be eligible for an LITC grant such as:

    • Be an organization, not an individual.
    • Provide representation to low-income taxpayers and education to ESL taxpayers.
    • Not charge more than a nominal fee for services (except for reimbursement of actual costs incurred).
    • Have an approved IRS Employer Identification Number.
    • Be an organization registered in the System for Award Management (SAM).

    In 2020, LITCs represented nearly 20,000 taxpayers dealing with an IRS tax controversy and provided consultations or advice to another 18,000 taxpayers. They helped taxpayers secure more than $5.8 million in tax refunds and reduced or corrected taxpayers' liabilities by over $116 million. They also brought more than 2,900 taxpayers back into payment compliance.

    Through outreach and education activities, LITCs strived to ensure individuals understood their rights as U.S. taxpayers by conducting more than 1,000 educational activities that were attended by nearly 134,000 individuals. Some 1,500 volunteers contributed to the success of LITCs by volunteering over 42,000 hours of their time. Nearly 65% of the volunteers were attorneys, certified public accountants or enrolled agents.

    More information about LITCs and the work they do to represent, educate and advocate on behalf of low-income and ESL taxpayers is available in IRS Publication 5066.

    A complete overview of the requirements to be an LITC can be found in Publication 3319, LITC Grant Application Package and Guidelines. If individuals or organizations have questions or would like additional information about the LITC Program, they can contact Karen Tober at Karen.Tober@irs.gov.


  • 01 Apr 2022 1:11 PM | Anonymous

    WASHINGTON – The Internal Revenue Service today announced that it recommended, and the Department of the Treasury approved, the selection of 25 new members to serve on the Taxpayer Advocacy Panel (TAP) for 2022.

    The new members will join 10 TAP alternates who were approved in a prior year, for a total of 35 new active members. When added to returning members, these new TAP members will round out the panel with 69 volunteers for 2022. New members were selected from a pool of approximately 300 interested individuals who applied during an open recruitment period last spring and from alternate members who applied in previous years.

    “We are excited to welcome all of the new members to the Taxpayer Advocacy Panel,” said National Taxpayer Advocate Erin M. Collins. “These members volunteer hundreds of hours to help ensure that our tax system works for all Americans. The past few years have been extremely challenging for taxpayers and the IRS. The dedicated work of our TAP volunteers is more important than ever to help identify and prioritize initiatives to modernize the IRS, improve service and protect taxpayer rights.”

    Members of the TAP work on a variety of issues that impact taxpayers in key areas where the IRS and the public interact the most. Members also serve as a conduit for bringing grassroots concerns raised by the taxpaying public to the attention of the IRS.

    Each year, the TAP submits dozens of recommendations to the IRS. In 2021 alone, the TAP made 193 recommendations to the IRS, many of which have already been implemented. For example, the TAP’s recommendations have resulted in many improvements to IRS tax forms, instructions and publications to make them easier for taxpayers to understand.

    Another TAP recommendation that was successfully adopted ensured the IRS properly alerted impacted taxpayers when an IRS processing center was closed. Read more about the work and accomplishments of the TAP in its 2021 Annual Report.

    Martha J. Lewis, the 2022 National TAP Chair, recently stated, “If we look at the past and all that TAP has accomplished, it’s truly amazing. We still have a lot of work to do, especially in the area of taxpayers understanding what we do and how we can help them.”

    The TAP is a federal advisory committee that serves an important role in tax administration. TAP members are a diverse group of ordinary citizens who possess a sense of civic duty, patriotism and belief in an effective and well-regarded tax system.

    TAP members volunteer their time and energy to improve IRS services and taxpayer satisfaction by listening to taxpayers, identifying issues and making recommendations to improve IRS service and customer satisfaction.

    Oversight and program support for the TAP are provided by the Taxpayer Advocate Service, an independent organization within the IRS led by the National Taxpayer Advocate. TAS helps resolve taxpayer account problems and makes administrative and legislative recommendations to mitigate systemic problems with tax administration.

    TAP members volunteer to serve a three-year appointment and are expected to devote 200 to 300 hours per year to panel activities. To the extent possible, TAP members are demographically and geographically diverse, providing balanced representation from all 50 states, the District of Columbia and Puerto Rico. In addition, there is one TAP member representing the interests of taxpayers working, living or doing business abroad.

    The new TAP members by location:

     

    Sara

    Zanders

    AR

    Sarah

    Holtzclaw

    CA

    Debra

    Kurita

    CA

    Victoria

    Ramirez

    CA

    Richard

    Rodriguez

    CA

    Angela

    Madison

    CA

    Jean

    Miller

    CT

    Cheryl

    Crowe

    DE

    Kimberly

    Fox

    FL

    Aisha

    Earle

    GA

    Kimberly

    Pederzani

    IL

    Shelley

    McCracken

    IN

    Rebecca

    Lammers

    International

    Willis

    Keenan

    KY

    Anthony

    Jackson Jr.

    LA

    Steven

    Hoffman

    MA

    Conner

    McFarland

    ME

    Suzanne

    Trnka

    MN

    Doris

    Carpenter

    MO

    George Hampton

    Williams

    MS

    Jared

    Lefevre

    MT

    Ruth

    Guyon

    NE

    David

    Newingham

    NV

    Shequeila

    Birdsong

    NY

    Charles

    Harvey

    NY

    Kameelah

    Guthridge

    OH

    Robin

    Mosley

    OH

    Candace

    Smith

    OK

    Meagan

    Regina

    PA

    Patricia

    Thompson

    RI

    Marla

    Brown

    TN

    Richard

    Bell

    TX

    Omar

    Roman

    TX

    Susan

    LaBudde

    WI

    Melissa

    Harvey

    WV

     

     

     

     


    Taxpayers can contact the TAP representative for their geographic area by calling 888-912-1227 (toll-free) or online at www.improveirs.org. Those interested in serving on the 2023 panel beginning Dec. 1, 2022, may apply during the TAP’s current recruitment period, which is open through April 8.

    Taxpayers can also write to the TAP at:

    Taxpayer Advocacy Panel
    TA: TAP, Room 1509
    1111 Constitution Avenue, N.W.
    Washington, D.C. 20224


  • 31 Mar 2022 2:30 PM | Anonymous

    WASHINGTON – The Internal Revenue Service today reminded U.S. citizens, resident aliens and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is April 15. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network’s (FinCEN) website for further information.

    Filers missing the April deadlines will receive an automatic extension until Oct. 15, 2022, to file the FBAR. They don’t need to request the extension. See FinCEN’s website for further information.

    Who must file an FBAR
    The Bank Secrecy Act requires U.S. persons to file an FBAR if they have:

    1. Financial interest in, signature authority or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account in a foreign country, and
    2. The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.

    Because of this threshold, the IRS encourages U.S. persons or entities with foreign accounts, even relatively small ones, to check if this filing requirement applies to them.

    A U.S. person is a citizen or resident of the United States or any domestic legal entity such as a partnership, corporation, limited liability company, estate or trust.

    The FBAR must be filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is only available through the BSA E-Filing System website. Taxpayers who are unable to e-file their FBAR must contact FinCEN at 800-949-2732 (703-905-3975 if calling from outside the U.S.) or FRC@fincen.gov.

    Penalties for failure to file an FBAR
    Those who don't file an FBAR when required may be subject to significant civil and criminal penalties that can result in a fine and/or prison. The IRS will not penalize those who properly reported a foreign account on a late-filed FBAR if the IRS determines there was reasonable cause for late filing.

    More details and help available
    IRS.gov has several resources available 24 hours a day:

    To help avoid delays with tax refunds, taxpayers living abroad should visit Helpful Tips for Effectively Receiving a Tax Refund for Taxpayers Living Abroad on IRS.gov.


  • 30 Mar 2022 3:25 PM | Anonymous

    WASHINGTON – With the completion of special mailings of i all Letters 6475 to recipients of the third-round of Economic Impact Payments, the Internal Revenue Service reminds people to accurately claim any remaining third-round stimulus payment on their 2021 income tax return as the 2021 Recovery Rebate Credit.

    Through Dec. 31, 2021, the IRS issued more than 175 million third-round payments totaling over $400 billion to individuals and families across the country. Most of the third-round payments were issued in the spring and early summer of 2021. The IRS continued to send plus-up payments through December if, after their 2020 tax return was processed last year, the taxpayer was eligible for additional amounts.

    As required by law, the IRS is no longer issuing first-, second-, or third-round Economic Impact Payments. Instead, people who are missing a stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2020 or 2021 federal tax return.

    Most eligible people already received the full amount of their credit in advance and don't need to include any information about this payment when they file their 2021 tax return. This includes the additional payments – called “Plus-Up” Payments – the IRS issued to individuals who initially received a third-round Economic Impact Payment based on information on their 2019 tax return and were later eligible for a larger amount based on information on their 2020 tax return.

    Individuals may securely access their IRS Online Account to view the total amount of the third-round Economic Impact Payment issued to them. This information became available on January 15, 2022, under the Tax Records page in Online Account. For married individuals filing a joint return, each spouse will need to log into their own Online Account or review their own Letter 6475 for their portion of their joint total payment. See FAQs for Topic G: Finding the Third Economic Impact Payment Amount to Calculate the 2021 Recovery Rebate Credit, for more information.

    Third-Round Economic Impact Payment Not Received? Double-check records first
    Individuals are encouraged to double-check their bank accounts – especially in early spring and summer of 2021 – to see whether they received a third-round payment in advance last year.

    If an individual did not receive a third-round payment -- and their IRS Online Account shows a payment amount greater than $0, or they received Notice 1444-C or Letter 6475 indicating that a payment was issued to them -- they should contact the IRS as soon as possible to see if a payment trace is needed. Note that Online Account shows the most current EIP information, so if a payment was issued and returned to the IRS, the amount shown in Online Account may be less than what is shown in their Letter 6475.

    Taxpayers should not request a payment trace to determine if they were eligible for a payment or to confirm the amount of payment they should have received.

    Individuals do not need to wait until their trace is complete to file their 2021 tax return. When completing the Recovery Rebate Credit Worksheet or answering EIP questions in the tax software, taxpayers have two options:

    • Use the amount on the Letter 6475 (or EIP 3 Amount from Online Account) to calculate the RRC amount on line 30. Contact the IRS to trace the EIP amount. Once the EIP trace is completed, the IRS and the taxpayer will receive notification of the results of the EIP trace (the account it was sent to and the amount or a copy of the cashed check).
    If the trace indicates the taxpayer received the EIP amount, no further action is necessary.
    If the EIP amount was not received by the taxpayer, the IRS will adjust the RRC amount on the tax return and issue any refund.
    • Use the amount of EIP the taxpayer believes they received to calculate the RRC amount on line 30. If the taxpayer’s calculation does not match the IRS calculation, the processing of the tax return will be delayed, the RRC amount will be adjusted to match IRS records and the taxpayer will receive a notice that includes a telephone number to contact if they disagree with the change to the tax return. If the taxpayer contacts the IRS and disagrees with the changes made, IRS will conduct a trace of the EIP, if necessary. Once the EIP trace is completed, the IRS and the taxpayer will receive notification of the results of the EIP trace (the account it was sent to and the amount or a copy of the cashed check).
    If the trace indicates the taxpayer received the EIP amount, no further action is necessary.

    If the EIP amount was not received by the taxpayer, the IRS will adjust the RRC amount on the return and issue any refund.

    Correcting a mistake after the 2021 tax return is filed; no amended return needed

    Individuals who made a mistake calculating the Recovery Rebate Credit and claimed an amount on line 30 for the 2021 Recovery Rebate Credit should not file an amended return. The IRS will correct the amount of the 2021 Recovery Rebate Credit and send a notice identifying the changes made.

    If a correction is needed, there may be a delay in processing the return. If the taxpayer agrees with the changes made by the IRS, no response or action is required to indicate they agree with the changes. If the taxpayer disagrees, they can call the toll-free number listed on the top right corner of their notice.

    Amended return may be needed for those eligible to claim the credit and IRS records show no Economic Impact Payment was issued.
    For eligible individuals who didn't claim a Recovery Rebate Credit on their 2021 tax return (line 30 is blank or $0) and IRS records do not show the issuance of an Economic Impact Payment, they will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return, to claim the remaining amount of stimulus money for which they are eligible. This includes individuals who may not have received the full amount of their third-round Economic Impact Payment because their circumstances in 2021 were different than they were in 2020.

    Individuals can use the Interactive Tax Assistant, Should I File an Amended Return?, to help determine if they should amend their original tax return.

    Taxpayers who need to file an amended return to claim the 2021 Recovery Rebate Credit – even if they don’t usually file taxes - should use the worksheet in the 2021 instructions for Form 1040 and 1040-SR to determine the amount of the credit. Enter the amount on the Refundable Credits section of the Form 1040-X and include "Recovery Rebate Credit" in the Explanation of Changes section.

    Individuals who filed their 2021 return electronically and need to file an amended return, may be able to file Form 1040-X electronically.

    If a taxpayer did not file their 2021 return electronically, they’ll need to submit a paper version of the Form 1040-X and should follow the instructions for preparing and mailing the paper form.

    More information


  • 30 Mar 2022 2:48 PM | Anonymous

    Revenue Procedure 2022-21 provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with (1) nationwide average purchase prices for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam.

    Revenue Procedure 2022-21 will be in IRB 2022-16, dated April 18, 2022.


  • 30 Mar 2022 1:09 PM | Anonymous

    Announcement 2022-7 is issued pursuant to § 521(b) of Pub. L. 106-170, the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the Secretary of the Treasury to report annually to the public concerning advance pricing agreements (APAs) and the Advance Pricing and Mutual Agreement Program (APMA Program), formerly known as the Advance Pricing Agreement Program (APA Program). This twenty-third report describes the experience, structure, and activities of the APMA Program during calendar year 2021.

    Announcement 2022-7 will be in IRB: 2022-15, dated 04/11/2022.


  • 29 Mar 2022 2:13 PM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds taxpayers that if they’re unable to file their tax return by this year’s April 18 deadline, there’s an easy, online option to get more time to complete their return.

    Taxpayers who need more time to complete their return can request an automatic six-month extension to file. An extension allows for extra time to gather, prepare and file paperwork with the IRS; however, taxpayers should be aware that:

    • An extension to file their return doesn’t grant them an extension to pay their taxes,
    • They should estimate and pay any owed taxes by their regular deadline to help avoid possible penalties and
    • They must file their extension no later than the regular due date of their return.

    E-File an extension form for free
    Individual tax filers, regardless of income, can use IRS Free File to electronically request an automatic tax-filing extension. The fastest and easiest way to get an extension is through IRS Free File on IRS.gov. Taxpayers can electronically request an extension on Form 4868. Filing this form gives taxpayers until Oct. 17to file their tax return. To get the extension, taxpayers must estimate their tax liability on this form and should timely pay any amount due.

    Get an extension when making a payment
    Other fast, free and easy ways to get an extension include using IRS Direct Pay, the Electronic Federal Tax Payment System or by paying with a credit or debit card or digital wallet. There’s no need to file a separate Form 4868 extension request when making an electronic payment and indicating it’s for an extension. The IRS will automatically count it as an extension.

    Important reminders on extensions
    The IRS reminds taxpayers that a request for an extension provides extra time to file a tax return, but not extra time to pay any taxes owed. Payments are still due by the original deadline. Taxpayers should file even if they can’t pay the full amount. By filing either a return on time or requesting an extension by the April 18 filing deadline, they’ll avoid the late-filing penalty, which can be 10 times as costly as the penalty for not paying.

    Taxpayers who pay as much as they can by the due date, reduce the overall amount subject to penalty and interest charges. The interest rate is currently four percent per year, compounded daily. The late-filing penalty is generally five percent per month and the late-payment penalty is normally 0.5 percent per month.

    The IRS will work with taxpayers who cannot pay the full amount of tax they owe. Other options to pay, such as getting a loan or paying by credit card, may help resolve a tax debt. Most people can set up a payment plan on IRS.gov to pay off their balance over time.

    Other automatic extensions
    Certain eligible taxpayers get more time to file without having to ask for extensions. These include:

    • U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico get an automatic 2-month extension to file their tax returns. They have until June 15 to file. However, tax payments are still due April 18 or interest will be charged.
    • Members of the military on duty outside the United States and Puerto Rico also receive an automatic two-month extension to file. Those serving in combat zones have up to 180 days after they leave the combat zone to file returns and pay any taxes due. Details are available in Publication 3, Armed Forces’ Tax Guide.
    • When the President makes a disaster area declaration, the IRS can postpone certain taxpayer deadlines for residents and businesses in the affected area. People can find information on the most recent tax relief for disaster situations on the IRS website.

    The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states.


  • 29 Mar 2022 12:12 PM | Anonymous

    WASHINGTON – The Internal Revenue Service today reminded teachers and other educators planning ahead for 2022 that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses when they file their federal income tax return next year.

    This is the first time the annual limit has increased since the special educator expense deduction was enacted in 2002. For tax-years 2002 through 2021, the limit was $250 per year. This means for people currently filing their 2021 tax returns due in April, the deduction is limited to $250. The limit will rise in $50 increments in future years based on inflation adjustments.

    For 2022, an eligible educator can deduct up to $300 of qualifying expenses. If they are married and file a joint return with another eligible educator, the limit rises to $600. But in this situation, not more than $300 for each spouse.

    Who qualifies?
    Educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide in a school for at least 900 hours during the school year. Both public- and private-school educators qualify.

    What's deductible?
    Educators can deduct the unreimbursed cost of:

    • Books, supplies and other materials used in the classroom.
    • Equipment, including computer equipment, software and services.
    • COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers and other items recommended by the Centers for Disease Control and Prevention (CDC).
    • Professional development courses related to the curriculum they teach or the students they teach. For these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. For details, see Publication 970, Tax Benefits for Education, particularly Chapter 3.

    Qualified expenses don’t include expenses for home schooling or for nonathletic supplies for courses in health or physical education. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, cancelled checks and other documentation.

    Reminder for 2021 tax returns being filed now: Deduction limit is $250
    With the tax deadline just around the corner, the IRS reminds any educator still working on their 2021 return that they can claim any qualifying expenses on Schedule 1, Line 11. For 2021, the deduction limit is $250. If they are married and file a joint return with another eligible educator, the limit rises to $500. But in this situation, not more than $250 for each spouse.

    Whether a return is self-prepared or prepared with the assistance of a tax professional or trained community volunteer, the IRS urges everyone to file electronically and choose direct deposit for any refund. For details, visit IRS.gov/efile.

    In addition, the IRS urges anyone with tax due to choose the speed and convenience of paying electronically, such as with IRS Direct Pay, a free service available only on IRS.gov. For information about this and other payment options, visit IRS.gov/Payments.

    This year, the tax-filing deadline is:

    • Monday, April 18 for most taxpayers.
    • Tuesday, April 19 for residents of Maine and Massachusetts.
    • Wednesday, June 15 for most Americans who live abroad.


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