All income is taxable, including gig economy and tip income
It’s important for taxpayers to file a federal tax return that has a complete and correct reporting of their income – which may mean including income from sources other than regular wages from an employer. Income from gig economy activities and tip income are two...
Taxpayers should avoid these common mistakes when they file their tax return
Most of the common errors taxpayers make on their tax returns are easily avoidable. By carefully reviewing their return, taxpayers can save time and effort by not having to correct it later. Filing electronically also helps prevent mistakes. Tax software does the...
Tax tips for gig economy entrepreneurs and workers
In recent years, the gig economy has changed how people do business and provide services. Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig. The IRS’ Gig Economy Tax Center...
IRS completes automatic corrections of tax year 2020 accounts related to unemployment compensation exclusion; 12 million refunds issued
WASHINGTON – The Internal Revenue Service recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation they received in 2020. The American Rescue Plan Act of 2021, which became law in March...
National Tax Security Awareness Week: Giving Tuesday highlights that scammers may use phony charities to trick taxpayers
WASHINGTON – On Giving Tuesday, the Internal Revenue Service and its Security Summit partners warned taxpayers to be on alert for scammers using fake charities to commit fraud not just during the holiday season but year-round. On day two of Nationwide Tax Security...
Taxpayers shouldn’t let gift card scammers ruin the holidays
During the holiday season, taxpayers should be aware of gift card scams thieves commonly use this time of year. Con artists will target taxpayers by asking them to pay a fake tax bill with gift cards. They may also use a compromised email account to send emails...
Everyone should know the facts about how the IRS communicates with taxpayers
Knowledge is a taxpayer’s first line of defense against scammers who pretend to be from the IRS with the goal of stealing personal information. Here are some facts about how the IRS communicates with taxpayers: The IRS doesn't normally initiate contact with taxpayers...
Taxpayers should know what they’re getting when they choose a tax preparer
It’s filing extension crunch time, but people rushing to get their tax return filed should be cautious when choosing a tax preparer. Anyone can be a paid tax return preparer if they have an IRS preparer tax identification number. However, tax pros have different...
Got a letter or notice from the IRS? Here are the next steps
When the IRS needs to ask a question about a taxpayer’s tax return, notify them about a change to their account, or request a payment, the agency often mails a letter or notice to the taxpayer. Getting mail from the IRS is not a cause for panic but, it should not be...
$1.2 billion in IRS penalty relief refunds coming for certain 2019 and 2020 tax returns
To help struggling taxpayers affected by the COVID-19 pandemic, the IRS recently issued Notice 2022-36, which provides penalty relief to most people and businesses who filed certain 2019 or 2020 returns late. To qualify for this relief, any eligible income tax return,...