The Internal Revenue Service (IRS) recently announced that it will automatically waive the estimated tax penalty for over 400,000 eligible taxpayers whose withholding and estimated tax payments fell short of their 2018 tax liability, and it removed the requirement that estimated payments be made in four equal installments (if paid by January 15, 2019).
The IRS recently announced a letter campaign, issuing one of three letters to taxpayers regarding virtual currency. Two of the letters are informational, sent to taxpayers who may have had a requirement to report virtual currency transactions but did not do so (Letter 6174), or taxpayers who reported transactions with virtual currency but may have made a mistake (Letter 6174-A). Neither of these letters require a response to the IRS. It is the third letter that gives tax professionals pause for concern.
If you dealt in virtual currency in recent years, you may soon receive a letter from the IRS regarding a potential failure to report income and pay related taxes, according to a recent IRS announcement. The federal tax agency is beginning to reach out to taxpayers as part of the virtual currency compliance campaign it announced last year.
The Taxpayer First Act signed into law by President Trump requires the IRS to make important changes that will benefit taxpayers and improve tax administration.
The Treasury Inspector General of Tax Administration (TIGTA) recently released its interim report on the 2019 federal tax filing season. As of March 1, 2019, the Internal Revenue Service (IRS) had received over 59 million tax returns and issued approximately $142 billion in refunds on over 46 million of those returns. A vast majority - 95 percent - of filers e-filed their returns this season.
The Internal Revenue Service (IRS) estimates that it has nearly $1.4 billion in unclaimed income tax refunds due to about 1.2 million taxpayers who failed to file a 2015 Form 1040. The deadline to claim these funds is this year's return filing deadline, April 15, 2019.
Nevada-based tax preparer and former IRS employee Thomas Bidegary was recently sentenced to five years in prison for conspiring to commit tax fraud, causing a tax loss of nearly $260,000 to the federal government. Between 2009 and 2014, Bidegary prepared false tax forms claiming fictitious business losses that he used to obtain larger refunds than were due to his clients who "invested" in his businesses.
The IRS recently released its annual report to Congress on the Whistleblower Program, which awarded over $312 million to whistleblowers and collected $1.4 billion in FY 2018. Awards in this period represent 21.7% of total proceeds collected based on whistleblower claims, a significant increase of nearly 4 percentage points as compared to FY 2017. The IRS generally waits at least 8 years before issuing awards to ensure a final determination of proceeds can be made first.
Employees of the Internal Revenue Service (IRS) returned to work just in time for the 2019 tax-filing season to begin. By mid-day Monday, several million tax returns had already been received for processing, and the IRS expects about 150 million individual tax returns by the April 15th deadline. As a reminder, a new Form 1040 is being used for tax year 2018. Details about this change and other information for the 2019 federal filing season can be found here.