The IRS recently issued 430,000 refunds totaling more than $510 million to taxpayers who paid taxes on unemployment compensation excluded from income for tax year 2020. 1 Is unemployment income excluded from tax?2 How many taxpayers are impacted?3 How will you be notified? Is unemployment income excluded from tax? Per the American Rescue Plan, up … Read more
You may have received a letter from the IRS asking you to verify your identity after filing a tax return. These letters are sent by the IRS to prevent identity thieves from getting your refund. 1 When do you need to verify your identity?2 First, gather your supporting documents3 Second, verify your identification3.1 Online ID … Read more
An Audit Reconsideration is a process used by the Internal Revenue Service to help you when you disagree with the results of an IRS audit of your tax return, or a return created for you by the IRS because you did not file a tax return. 1 Reasons why you may want to request an … Read more
It’s hard to think of anything more stressful than dealing with IRS collections. If a taxpayer is unable to pay or make arrangements, what follows is a series of enforcement actions by the computerized notice system, automated collections system, and sometimes an IRS Revenue Officer knocking at their door. 1 Computerized notices and automated collections … Read more
Per IR-2021-59, the 2020 tax return deadline for individuals has been automatically extended from April 15, 2021 to May 17, 2021. This also extends the time to pay outstanding income taxes for the 2020 tax period to May 17, 2021. To extend the deadline from May 17 to October 15, 2021, taxpayers must file Form … Read more
On March 11, 2021 the $1.9 trillion American Rescue Plan was signed into law. Among other things, the Plan provides for additional Economic Impact Payment (aka stimulus payments). 1 When will you receive the 3nd stimulus check?2 How much stimulus will you get?3 Who will qualify for stimulus check #3?4 Which tax return will the … Read more
Follow these steps to claim the Recovery Rebate Credit on your 2020 Form 1040. Step 1: Get a copy of your Notice 1444 and 1444-b. These notices will indicate the amounts of stimulus payments (Economic Impact Payments) that you received. If you do not have these notices, you’ll need to know how much you received. … Read more
From IRS.gov. Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments. If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when … Read more
Congress recently voted to authorize another round of stimulus checks due to the economic fallout from Covid-19. The second stimulus check will be up to $600 per adult and $600 for each child dependent. A child dependent is defined as a child that is 16 years old or younger. There is no cap on the … Read more
In order to renew an ITIN, you must complete a new Form W-7 and submit all required identification documents to the IRS. See the Form W-7 instructions for details. While you do not need to submit a tax return with your ITIN application, you should file a return if you have a filing requirement. Your … Read more
