In January, 2020, the IRS reported that tax return refunds which included the earned income tax credit (EITC) would not be sent until around March 2nd, 2020. Early filers would have to wait until that date until they would receive a direct deposit of their expected refund. On February 13, 2020, the IRS announced that, on [...]
Each year, the IRS National Taxpayer Advocate (NTA) issues their Annual Report to Congress. This report is great reading for taxpayers who want to know common disagreements and issues between the IRS and taxpayers. Included in the report are the ten most serious problems (MSP) at the IRS as it relates to taxpayer rights. Many [...]
By law, the IRS cannot release refunds for tax filers with refundable credits (i.e. earned income tax credit, additional child tax credit) until February 15th. That means taxpayers who file early and likely need the refund the most have to wait. For tax season 2020 (2019 tax returns), the IRS stated that these refunds will [...]
For taxpayers and tax professionals who are trying to resolve tax problems/issues, these days are trying times. The IRS is extremely backlogged in processing and resolving most post-filing issues. IRS resources provide little help in understanding what is going on with your case at the IRS. IRS transcripts that are available to taxpayers and their [...]
The IRS does issue an annual press release of its latest enforcement priorities. However, taxpayers can glean IRS compliance enforcement interest areas based on many IRS statements and studies over the past few years. IRS compliance enforcement actions have decreased significantly since 2010. However, those days appear to be over. In fact, in 2019, the [...]
When taxpayers owe the IRS and are not in an arrangement to pay (extension to pay, payment plan, currently not collectible status, or an offer in compromise), they can be subject to a levy of their income and assets. One of the most common forms of levy is the “wage garnishment.” Since July 2018, the [...]
In 2018, the IRS assessed over 20 million failure to file (FTF) and failure to pay (FTP) penalties to individuals. The FTF and FTP penalty make up almost 2/3rds of all penalties assessed and they are the frequent subject of the most penalty abatement requests. IRS Penalties Assessed on Individual Taxpayers: 2018 The problem: abatement [...]
It is no secret that the number of IRS auditors have slipped over the past decade. IRS data shows the decline in the personnel doing examinations of tax returns: IRS auditors are on the decline The obvious result is that taxpayers are experiencing less IRS audits. IRS audit data shows the drop off of IRS [...]
Is the IRS getting more serious about enforcing collection of back taxes through levies? After years of less IRS Collection enforcement activity, the answer appears to be "yes." On July 17, 2018, the IRS announced that they restarted issuing levies from its automated collection systems. The last 9 years have seen an overall reduction in levies [...]
IRS audits are rare these days. But if you are subject to an audit, how long does it take to resolve? Audits and the Assessment Statute of Limitations Audits are almost never resolved in one day. From the time you receive an audit notice – to final resolution, including any appeal – can take up [...]
