Stay informed on the latest tax news and developments, including legislation and rule changes, for effective tax planning and compliance.
Many complex tax returns can be processed via IRS Free File
The IRS Free File program enables millions of taxpayers to file federal and state tax returns for free, including those with complex returns. Taxpayers can report income from various sources, such as self-employment, business, hobby, and gig economy activities, and claim popular tax credits. Business expenses may also be deducted, subject to tax limits and rules. Eligible taxpayers, including those with an income of up to $73,000 for tax year 2022, can use the IRS Free File Lookup Tool to find a provider that meets their criteria. Offers are available in English and Spanish, with varying eligibility requirements based on age and state residency.
The IRS launches a new project for digital entry; the Form 940 scanning process is off to a solid start; other forms will follow soon
The IRS has successfully expanded its digital scanning initiative, with over 120,000 paper Forms 940 already scanned in 2023, a significant increase compared to last year. The IRS will soon expand scanning to include Forms 1040 and 941, as part of its multi-form, multi-solution Digital Intake initiative. The initiative is part of the IRS's larger effort to transform the agency and improve services for taxpayers. Digital scanning will allow the IRS to shorten the processing time for paper returns, creating efficiencies for taxpayers, tax professionals, and the agency. The IRS is working with Lockbox Financial Agents and industry partners to expand its scanning capabilities. The agency is also hiring new telephone assistors, adding staff to Taxpayer Assistance Centers, and expanding its Document Upload Tool to improve services for taxpayers.
The IRS provides simple and practical ways for taxpayers to pay federal taxes
The IRS offers various secure and convenient options for taxpayers to pay their federal taxes. These include paying directly from a bank account using electronic funds withdrawal, paying through an Online Account, using IRS Direct Pay, paying with a payment processor, making cash payments at participating retail locations, or applying for an online payment agreement. Individuals who need to make quarterly estimated tax payments can find more information on the IRS website.
IRS alerts taxpayers to Form W-2 wage frauds for the upcoming filing season; individuals who file false returns risk penalties and an inquiry
The IRS has issued a consumer alert warning taxpayers of new scams during the filing season, involving Form W-2 wages. Scammers are circulating schemes on social media to encourage taxpayers to use tax software to manually fill out Form W-2 with false income and withholding figures to claim false credits in hopes of getting a big refund. The IRS, together with the Security Summit partners, is actively watching for this and other schemes. Taxpayers should be cautious and not fall for these scams as they face potential penalties and investigation. Anyone who has participated in one of these schemes can amend their previous tax return or consult a trusted tax professional.
