ALERT: IRS Services

The IRS mails letters or notices to taxpayers for a variety of reasons including:

• They have a balance due.
• They are due a larger or smaller refund.
• The agency has a question about their tax return.
• They need to verify identity.
• The agency needs additional information.
• The agency changed their tax return.

If a taxpayer receives an IRS letter or notice, they should:

• Not ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. The notice or letter will explain the reason for the contact and gives instructions on what to do.

• Not panic. The IRS and its authorized private collection agencies generally contact taxpayers by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take the appropriate action.

• Read the notice carefully and completely. If the IRS changed the tax return, the taxpayer should compare the information provided in the notice or letter with the information in their original return. In general, there is no need to contact the IRS if the taxpayer agrees with the notice.

• Respond timely. If the notice or letter requires a response by a specific date, taxpayers should reply in a timely manner to:

• avoid delays in processing their tax return.
• minimize additional interest and penalty charges.
• preserve their appeal rights if they don’t agree.

• Pay amount due. Taxpayers should pay as much as they can, even if they can’t pay the full amount. People can pay online or apply online for a payment agreement, including installment agreements, or an Offer in Compromise.

• Keep a copy of the notice or letter. It’s important that taxpayers keep a copy of all notices or letters with other tax records. They may need these documents later.

• Remember, there is usually no need to call the IRS. If a taxpayer must contact the IRS by phone, they should use the number in the upper right-hand corner of the notice. The taxpayer should have a copy of their tax return and letter when calling. Typically, taxpayers only need to contact the agency if they don’t agree with the information, if the IRS requests additional information, or if the taxpayer has a balance due. Taxpayers can also write to the agency at the address on the notice or letter. Taxpayer replies are worked on a first-come, first-served basis and will be processed based on the date the IRS receives it.

While we may not like to deal with the IRS, we do have the right to receive quality service.  As taxpayers, it is important to know what our rights are to better enable the service we receive from the IRS. 

DID YOU KNOW:

Taxpayers have the right to:

• Receive prompt, courteous, and professional assistance from the IRS.
• Be spoken to in a way they can easily understand.
• Receive clear and easily understandable communications from the IRS.
• Speak to a supervisor about inadequate service.

Here are some things taxpayers can expect when working with the IRS:

Taxpayers can find answers to most tax questions on IRS.gov. Taxpayers can also contact the IRS directly by calling the number on the top right corner of all notices and letters.

• IRS representatives will listen objectively. They will consider all relevant information.
• The representative will answer questions promptly, accurately and thoroughly.
• When collecting tax, the IRS will treat people with courtesy.
• The agency usually only contacts taxpayers between 8 a.m. and 9 p.m.
• The IRS won’t contact the taxpayer’s employer if the agency knows the employer doesn’t allow such contact.
• The IRS won’t make aggressive phone calls that threaten arrest or prison.
• The agency must provide the taxpayer with information about how to get help from the Taxpayer Advocate Service in all statutory notices of deficiency.
• If someone is eligible for Low Income Taxpayer Clinic, the IRS will provide information about options for legal help.

Taxpayers can find answers to most tax questions on IRS.gov. Taxpayers can also contact the IRS directly by calling the number on the top right corner of all notices and letters.

Tis the season once again for filing our income tax returns.  This time of year can be the cause of much angst but the IRS has tips for lessening the stress of these next couple of months. 

To start, filing deadline is April 18, 2022 due to Emancipation Day in Washington, DC.  So, you have three extra days to file.  If you live in a declared disaster zone, you may have additional time to file.  In any event, the sooner you file, the sooner you don’t have to think about it and, if you are entitled to a refund, the sooner you will get it.

Speaking of refunds; if there are no issues with your return and you elect direct deposit, you should receive your refund within 21 days.  Filing on paper will delay your refund.

Be sure to file an accurate return.  If you know you are missing a tax statement, don’t file a return without it.  You could delay the processing of your return without reporting all information.  Remember, in our electronic world, the IRS knows what should be on your return.

If you have questions, visit irs.gov before trying to reach an agent on the phone.  The website is very user friendly.  There’s no wait time or appointment needed — online tools and resources are available 24 hours a day.

If you haven’t filed your 2020 Return, you can still work on filing your 2021 Return.  However, you may need your adjusted gross income (AGI) from 2020, so why not wrap up your 2020 and your 2021 return at the same time.

If your income qualifies you, consider using IRS Free File to prepare and file your return.  Check out the IRS website to determine your eligibility to use Free File.

If you have received Economic Impact Payments or advance Child Tax Credits in 2021, be cautious.  Make certain the information is correct so as not to delay the processing of your return.  To help in this regard, there will be IRS mailings about stimulus payments and Child Tax Credits.  If you have created an Online Account at irs.gov, you can check this information electronically.  Remember that if you have received Earned Income Tax Credit or Child Tax Credit, no refunds will be issued until mid-February.

And finally, if you don’t normally file a return you may want to consider filing for CTC, other valuable credits which are available for people who don’t normally file a tax return and didn’t file a 2020 return or use the Non-Filers tool.  You may be able to qualify for important credits including the Recovery Rebate Credit (stimulus payment), advance Child Tax Credit or the Earned Income Tax Credit. The IRS encourages people in this group to file a 2021 tax return so they can receive all the credits for which they’re eligible.

Happy filing.

Tax season 2022 has begun.  In the spirit of trying to make it as painless as possible, see the reprint of IR-2022-16, January 20, 2022 below.

WASHINGTON — With filing season beginning January 24, the Internal Revenue Service reminded taxpayers about several key items to keep in mind when filing their federal income tax returns this year.

Given the unprecedented circumstances around the pandemic and unique challenges for this tax season, the IRS offers a 5-point checklist that can help many people speed tax return processing and refund delivery while avoiding delays.

1. File an accurate return and use e-file and direct deposit to avoid delays. Taxpayers should electronically file and choose direct deposit as soon as they have everything they need to file an accurate return. Taxpayers have many choices, including using a trusted tax professional. For those using e-file, the software helps individuals avoid mistakes by doing the math. It guides people through each section of their tax return using a question-and-answer format.

2. For an accurate return, collect all documents before preparing a tax return; make sure stimulus payment and advance Child Tax Credit information is accurate. In addition to collecting W-2s, Form 1099s and other income-related statements, it is important people have their advance Child Tax Credit and Economic Impact Payment information on hand when filing.

• Advance CTC letter 6419: In late December 2021, and continuing into January, the IRS started sending letters to people who received advance CTC payments. The letter says, “2021 Total Advance Child Tax Credit (AdvCTC) Payments” near the top and, “Letter 6419” on the bottom righthand side of the page. Here’s what people need to know:
  • The letter contains important information that can help ensure the tax return is accurate.
  • People who received advance CTC payments can also check the amount of the payments they received by using the CTC Update Portal available on IRS.gov.
  • Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return.
• Third Economic Impact Payment letter 6475: In late January 2022, the IRS will begin issuing letters to people who received a third payment in late January 2021. The letter says, “Your Third Economic Impact Payment” near the top and, “Letter 6475” on the bottom righthand side of the page. Here’s what people need to know:
  • Most eligible people already received their stimulus payments. This letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit (RRC) for missing stimulus payments.
  • People who are eligible for RRC must file a 2021 tax return to claim their remaining stimulus amount.
  • People can also use IRS online account to view their Economic Impact Payment amounts.

Both letters – 6419 and 6475 – include important information that can help people file an accurate 2021 tax return. If a return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund. Using this information when preparing a tax return electronically can reduce errors and avoid delays in processing.

3. Avoid lengthy phone delays; use online resources before calling the IRS. Phone demand on IRS assistance lines remains at record highs. To avoid lengthy delays, the IRS urges people to use IRS.gov to get answers to tax questions, check a refund status or pay taxes. There’s no wait time or appointment needed — online tools and resources are available 24 hours a day.

Additionally, the IRS has several ways for taxpayers to stay up to date on important tax information:

• Follow the IRS’ official social media accounts and email subscription lists to stay current on the latest tax topics and alerts.
• Download the IRS2Go mobile app, watch IRS YouTube videos, or follow the IRS on Twitter, Facebook, LinkedIn and Instagram for the latest updates on tax changes, scam alerts, initiatives, products and services.
• Taxpayers can also get information in their preferred language. The IRS translates tax resources into several languages and currently has basic tax information in 20 languages. People can also file Schedule LEP, Request for Change in Language Preference, to receive written communications from the IRS in their preferred language.

4. Waiting on a 2020 tax return to be processed? Special tip to help with e-filing a 2021 tax return: In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those waiting on their 2020 tax return to be processed, here’s a special tip to ensure the tax return is accepted by the IRS for processing. Make sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance Child Tax Credit or third Economic Impact Payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year’s AGI from last year’s return. Remember, if using the same tax preparation software as last year, this field will auto-populate.

5. Free resources are available to help taxpayers file. During this challenging year, the IRS reminds taxpayers there are many options for free help, including many resources on IRS.gov. For those looking to avoid the delays with a paper tax return, IRS Free File is an option. With Free File, leading tax software providers make their online products available for free as part of a 20-year partnership with the Internal Revenue Service. This year, there are eight products in English and two in Spanish. IRS Free File is available to any person or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

Good Luck!

There are nice people who work for the IRS – pretty much a thankless job.  And, they would love to receive acknowledgment for their efforts, but let’s face it – if you were to receive a call from someone claiming to be from the IRS and telling you that you owe taxes which can be paid by way of a gift card, what would you think?  Hopefully, your immediate reaction would be that it is a scam.  How practical would it be for the IRS to receive a gift card from a retailer to credit to your tax obligation? 

Yep, it is happening – scammers are targeting taxpayers by asking them to pay a fake tax bill with gift cards. They may also use a compromised email account to send emails requesting gift card purchases for friends, family or co-workers. Gift cards make great presents for loved ones, but they cannot be used to pay taxes.

Here’s how this scam usually happens:

• The most common way scammers request gift cards is over the phone through a government impersonation scam. However, they will also request gift cards by sending a text message, email or through social media.
• A scammer posing as an IRS agent will call the taxpayer or leave a voicemail with a callback number, informing the taxpayer that they are linked to some criminal activity. For example, the scammer will tell the taxpayer that their identity has been stolen and used to open fake bank accounts.
• The scammer will threaten or harass the taxpayer by telling them that they must pay a fictitious tax penalty.
• The scammer instructs the taxpayer to buy gift cards from various stores.
• Once the taxpayer buys the gift cards, the scammer will ask the taxpayer to provide the gift card number and PIN.

Here’s how taxpayers can tell if it’s really the IRS calling. The IRS will never:

• Call to demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
• Demand that taxpayers pay taxes without the opportunity to question or appeal the amount they owe. All taxpayers should be aware of their rights.
• Threaten to bring in local police, immigration officers or other law enforcement to have the taxpayer arrested for not paying.
• Threaten to revoke the taxpayer’s driver’s license, business licenses or immigration status.

Any taxpayer who believes they’ve been targeted by a scammer should:

• Contact the Treasury Inspector General for Tax Administration to report a phone scam. Use the IRS Impersonation Scam Reporting webpage or call 800-366-4484.
• Report phone scams to the Federal Trade Commission. Use the FTC Complaint Assistant on FTC.gov. Add “IRS phone scam” in the notes.
• Report threatening or harassing telephone calls claiming to be from the IRS to phishing@irs.gov. Include “IRS phone scam” in the subject line.