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This filing season, many taxpayers will — for the first time ever — receive a Form 1099-K, Payment Card and Third Party Network Transactions. The IRS now requires certain payment apps and online marketplaces to send you this form if you received more than $5,000 total for the sale of goods or services, regardless of…

Celebrating 50 Years of the Earned Income Tax Credit Tax year (TY) 2025 marks the 50th anniversary of the Earned Income Tax Credit (EITC). The Tax Reduction Act of 1975 introduced the EITC as a modest tax break to provide financial help to economically challenged working families. Over the years, the EITC has grown into…

Earlier today, Senator Mike Crapo, chairman of the Senate Finance Committee, and Senator Ron Wyden, the committee’s ranking member, jointly released a discussion draft of a broad and sweeping bill titled the Taxpayer Assistance and Service, or “TAS,” Act. The draft bill runs 163 pages and contains 68 provisions – about 40 of which reflect…

Identity theft is a constant threat that can happen to anyone. As the saying goes: an ounce of prevention is worth a pound of cure. With the annual filing season beginning this week, it is a good time to highlight resources available to help mitigate the potential of becoming a tax-related identity theft victim. Generally,…

This year’s report focuses on the taxpayer impact of processing delays.   Title: National Taxpayer Advocate delivers 2023 Annual Report to Congress National Taxpayer Advocate Erin M. Collins today released her 2023 Annual Report to Congress, describing 2023 as a year of “extraordinary transition for the IRS and therefore for taxpayers.” The report credits the IRS…

Tax Tip 1 – Energy Efficient Home Improvement Credit    The Inflation Reduction Act of 2022 amended the credits available for energy efficient home improvements and residential clean energy property. Here are some tips to help you determine if you’re eligible for the energy efficient home improvement credit.     For property that is ready for…

The Taxpayer Advocate Service (TAS) wants to help you be prepared for the tax filing season. One way to avoid tax processing or refund delivery delays is to wait until you’ve received all of your final wage and income statements, such as Forms W-2 or 1099. IRS cross-checks these income amounts The IRS checks the…

This year’s report focuses on the taxpayer impact of processing delays.   Title: National Taxpayer Advocate delivers 2023 Annual Report to Congress National Taxpayer Advocate Erin M. Collins today released her 2023 Annual Report to Congress, describing 2023 as a year of “extraordinary transition for the IRS and therefore for taxpayers.” The report credits the IRS…

Season’s greetings from everyone at the Taxpayer Advocate Service (TAS)! ’Twas the night before tax season, and all through the land, tax professionals were working, each with pen in hand. The forms were all sorted with numbers just right, who says tax accounting can’t thrill and excite? Tax professionals nestled all snug in their chairs,…

What to do if you receive an Employee Retention Credit recapture letter   Background As part of its ongoing Employee Retention Credit compliance work, the IRS announced on August 15, 2024, that they will be sending up to 30,000 Employee Retention Credit (ERC) recapture letters throughout the fall months. These Letters 6577-C, Employee Retention Credit…