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Need To Correct or Amend Your Form 1040?

Taxpayers needing to amend or correct a 1040 Form – including Forms 1040-SS, 1040-NR and others, can now do so electronically.  Until recently, to do so required the filing of the amended or corrected returns on paper.  Changes not only regarding income or deductions, but changes to filing status or to add a dependent not previously claimed by the taxpayer can be made.

Not only does this make the filing of such returns easier for the taxpayers, it also enables the IRS to more quickly process the returns and avoid the backlogs experienced, especially since COVID.  There are approximately 3 million amended returns filed each year.

A new, electronic checkbox has been added for Forms 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being filed electronically. A superseded return is one that is filed after the originally filed return but submitted before the due date, including extensions.

Very similar to the “Where’s My Refund” option on irs.gov, there is an option of “Where’s My Amended Return” that can be utilized to check the status of an electronically filed Form 1040-X.

Forms 1040, 1040-NR and 1040-SR can still be amended electronically for tax years 2019, 2020 and 2021 along with corrected Forms 1040-SS and Form 1040-PR for tax year 2021.

Bottom line, file any returns electronically if the option is available.  Visit irs.gov to see if the return you’re filing is available for electronic filing.  Be on the alert for new electronic filing options as the IRS moves forward with expanding digital services.

SCAM SEASON, ‘ER, I MEAN TAX SEASON

We are in the first half of January and the scamming has already begun with scammers claiming to be from the IRS.  This is the prime time of the year when thieves posing as the IRS call people and threaten them by saying that taxes are owed. 

Please don’t fall for these scams.  Stay vigilant.  Remember that the IRS will never:

  • Call and demand immediate payment using a specific payment method.  You CANNOT pay any tax obligations using a gift card. 
  • Demand that payment be made without giving taxpayers the opportunity to question or appeal the amount owed.
  • Call you unexpectedly about a refund.

Should you get a call like this, record the number and hang up immediately.  You can report the call by calling the Treasury Inspector General for Tax Administration number – 800-366-4484 or by using the IRS Impersonation Scam form found on the Hotline page of the Treasury Inspector General for Tax Administration. 

Don’t let your guard down and please impress upon any elderly loved ones that should they get such a call, the best thing is to hang up. 

2023 Energy Credits

Are you thinking about making some improvements to your home in 2023?  Those improvements may bring you energy credits from the IRS if they meet certain criteria. 

Among the list of improvements that can qualify for credits are solar panels, solar water heaters, heat pumps, air conditioners, water heaters, hot water boilers, exterior doors, exterior windows, exterior skylights and insulation.  Also, if you are building a new home, there are credits available for new construction. 

Each of the improvements has its own credit amount and criteria. 

Prior to 2023, there was a lifetime credit limit.  However, that lifetime credit limit has been lifted and has been broadened to benefit more homeowners. 

If you are considering any of the improvements mentioned above, you can visit irs.gov and search for residential clean energy property credits to find more detailed information.  Some of the credit amounts are substantial and should not be missed.  While you may not see the benefits of the credits or the overall energy savings immediately, you will see them eventually. 

Happy home improving.  And best wishes for the new year.

Everyone Should Know the Facts About How the IRS Communicates With Taxpayers

Knowledge is a taxpayer’s first line of defense against scammers who pretend to be from the IRS with the goal of stealing personal information.

Here are some facts about how the IRS communicates with taxpayers:

  • The IRS doesn’t normally initiate contact with taxpayers by email. Do not reply to an email from someone who claims to be from the IRS because the IRS email address could be spoofed or fake. Emails from IRS employees will end in IRS.gov.
  • The agency does not send text messages or contact people through social media. Fraudsters will impersonate legitimate government agents and agencies on social media and try to initiate contact with taxpayers.
  • When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service. Debt relief firms send unsolicited tax debt relief offers through the mail. Fraudsters will often claim they already notified the taxpayer by U.S. Mail.
  • Depending on the situation, IRS employees may first call or visit with a taxpayer. In some instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always. Taxpayers can search IRS notices by visiting Understanding Your IRS Notice or Letter. However, not all IRS notices are searchable on that site and just because someone references an IRS notice in email, phone call, text, or social media, does not mean the request is legitimate.
  • IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit. The IRS encourages taxpayers to review, How to Know it’s Really the IRS Calling or Knocking on Your Door: Collection.
  • Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice. Private debt collection should not be confused with debt relief firms who will call, send lien notices via U.S. Mail, or email taxpayers with debt relief offers. Taxpayers should contact the IRS regarding filing back taxes properly.
  • IRS revenue officers and agents routinely make unannounced visits to a taxpayer’s home or place of business to discuss taxes owed, delinquent tax returns or a business falling behind on payroll tax deposits. IRS revenue officers will request payment of taxes owed by the taxpayer. However, taxpayers should remember that payment will never be requested to a source other than the U.S. Treasury.
  • When visited by someone from the IRS, the taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.

Beware Of Texting Scams

We have all gotten those annoying emails that we know are scams and, hopefully, we have not taken the bait.  Also, many have received phone calls that are scams claiming to be the IRS, a law enforcement agency or even claiming they have a loved one captive and are holding them for ransom.  Recently, someone I know who is a grandfather received a call saying that his high school age granddaughter was being held ransom and he needed to send $500 immediately.  He called the granddaughter’s mother, who reassured him that the granddaughter was safe at home, but he couldn’t be convinced and felt it necessary to send the money.  So, yes, he was scammed out of concern for his granddaughter. 

But, now we are getting these nuisance messages via text and the IRS has warned that there has been a recent increase in IRS-themed texting scams which are aimed at stealing personal and financial information.  They look like they are coming from the IRS, but are not and if you receive one, you should report them to phishing@irs.gov.  The IRS has reported that hundreds of thousands of IRS-themed messages have been delivered in a matter of a few days.

Remember that the IRS will not contact you by email or text or phone, but by USPS.  They are working hard to stop these scams, but it is a difficult task and criminals are sly.  So, beware and don’t fall for scams received by text, email or phone.  Don’t give out your personal information unless you can validate who you are providing it to. 

Report any attempts to the IRS using the following process: 

  • Create a new email to phishing@irs.gov.
  • Copy the caller ID number (or email address).
  • Paste the number (or email address) into the email.
  • Press and hold the SMS/text message and select “copy”.
  • Paste the message into the email.
  • If possible, include the exact date, time, time zone and telephone number that received the message.
  • Send the email to phishing@irs.gov.

You can also report the message to the Treasury Inspector General for Tax Administration using the IRS Impersonation Scam Reporting form, which can be found on irs.gov.  Also, all incidents should be reported to the Internet Crime Complaint Center at www.ic3.gov. 

Think football – the best offense is a good defense!

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