The IRS has announced that Monday, January 29, 2024 is the official start date of the nation’s 2024 Tax Season. It is when the agency will begin accepting and processing 2023 tax returns. However, people can start working on their taxes prior to that, either with a tax professional or software company. January 29th is the first day that the 2023 individual tax returns can be electronically filed with the IRS.
The income tax filing deadline is now July 15. Treasury Secretary Steven Mnuchin announced in a tweet that all taxpayers and businesses will have additional time to file income tax returns and make any payments, without facing interest on payments or penalties for late filing.
Taxpayers may delay filing and paying 2019 Federal income taxes that would have been due on April 15. The new due date is July 15, 2020. This delay applies to taxes due of up to $1 million. This relief applies to all taxpayers, including trusts and estates. Corporations may also delay paying taxes of up to $10 million. Many states, including Massachusetts, have announced that they will follow Federal relief guidelines.
On the MA DOR website, it says: “In the event the Internal Revenue Service (IRS) issues tax relief to taxpayers with federal filing obligations, DOR is prepared to follow the IRS in offering similar relief for taxpayers with Massachusetts tax filing obligations. “
The due date for Federal estimated tax payments that would have been due on April 15 for 2020 is also postponed to July 15.
These measures are being enacted to help Taxpayers navigate through the economic effects of COVID-19 (coronavirus). Individual Taxpayers and Businesses will be able to use the money they would have paid to the IRS to meet other needs during the economic crisis related to COVID-19 containment measures.
The IRS issued a Tax Tip (Issue Number 2020-25) on reasons taxpayers should electronically file (e-file) their taxes.
The IRS top reasons why taxpayers should file electronically are:
It’s safe and secure.
E-file is often free.
It’s available through many convenient options.
It’s accurate and easy.
People who e-file get faster refunds.
It can be used whether a taxpayer is getting a refund or needs to make a payment.
See the IRS Issue Number: Tax Tip 2020-25 for more details.
The Tax Cuts and Jobs Act (TCJA) significantly changed the U.S. tax code. As a result of TCJA, the new tax withholding tables, which tell employers how much to withhold from employee’s paychecks, were issued to incorporate the changes. In the first year, the IRS probably had employers not withhold enough from employees, as the Administration wanted taxpayers to see an increase in their paychecks throughout the year, due to the tax law change. Many taxpayers probably did not really notice the increase, but they did notice getting less of a refund, or owing money when they filed their 2018 tax returns. Unknowingly, many taxpayers did not have enough money withheld from their wages, which is why they received less of a refund or owed money.
All taxpayers should review their withholdings to make sure that they are paying in enough. The IRS has a Tax Withholding Estimator that they recommend all taxpayers use. The IRS has been promoting their estimator and the new Form W-4, Employee’s Withholding Certificate, so that taxpayers do not have the same unexpected surprises when they file their 2019 tax returns.
Check Your Withholding
IRS Paycheck Checkup – Taxpayers should use the IRS Tax Withholding Estimator to perform a Paycheck Checkup and adjust their withholdings by filing a new Form W-4 with their employer, if needed.
Many tax professionals have been working with their clients to make sure their withholding for the year is enough to cover their expected tax liability. Taxpayers can also make quarterly estimated tax payments to cover the payment of additional tax expected to be owed.
Check your annual withholding using the IRS Tax Withholding Estimator or checking in with your tax professional.
Refunds may be delayed due to the partial government shutdown. Many IRS employees have been recalled, but some employees are claiming hardship exemptions. After not getting paid for a month, employees can actually not afford to go to work without pay, because they have no money to commute to work and pay for child care.
Under their union contract, IRS employees are allowed to miss work, if they suffer a hardship during a shutdown. The hardship exemption allows IRS employees not to have to use sick days to be absent from work.
With many employees claiming hardship and not working, the government’s ability to process refunds timely may be affected. We recommend filing returns electronically with direct deposit as a way to mitigate any possible delays.
The Internal Revenue Service has announced that the tax season will officially begin Monday, January 28, 2019. This is the day that the IRS will begin accepting electronic tax returns and processing paper tax returns. Most software companies and tax professionals will be accepting tax returns before January 28, and then will submit the returns when IRS systems open.
To prepare for filing your tax return, as you receive your 2018 tax documents, please collect them and keep them with your tax organizer. These documents include such items as your W-2s, Form 1099s, K-1s, brokerage statements, health insurance tax documents, etc. Your check register may also include pertinent information. When you have gathered all your tax information, please set-up an appointment or mail/submit the tax organizer, along with your various tax forms to us.
Be aware of these phishing and phone scams and do not fall for them!
Phishing schemes lead the IRS “Dirty Dozen” List of Tax Scams for 2017. The Internal Revenue Service warned taxpayers to watch out for fake emails or websites looking to steal personal information. See IR-2017-15.
In these email schemes, criminals pose as a person or organization the taxpayer trusts or recognizes. They may hack an email account and send mass emails under another person’s name. They may pose as a bank, credit card company, tax software provider or government agency. Criminals go to great lengths to create websites that appear legitimate but contain phony log-in pages. These criminals hope victims will take the bait and provide money, passwords, Social Security numbers and other information that can lead to identity theft.
The IRS saw a big spike in phishing and malware incidents during the 2016 tax season. New and evolving phishing schemes have already been seen this month as scam artists work to confuse taxpayers during filing season. The IRS has already seen email schemes in recent weeks targeting tax professionals, payroll professionals, human resources personnel, schools as well as average taxpayers.
Form W-2 scam targeting Payroll and Human Resource departments is one of the known phishing scams
This email scam uses a corporate officer’s name to request employee Forms W-2 from company payroll or human resources departments.
The IRS already has received new notifications that the email scam is making its way across the nation for a second time. The IRS urges company payroll officials to double check any executive-level or unusual requests for lists of Forms W-2 or Social Security number.
The W-2 scam first appeared in 2016. Cybercriminals tricked payroll and human resource officials into disclosing employee names, SSNs and income information. The thieves then attempted to file fraudulent tax returns for tax refunds.
This phishing variation is known as a “spoofing” e-mail. It will contain, for example, the actual name of the company chief executive officer. In this variation, the “CEO” sends an email to a company payroll office or human resource employee and requests a list of employees and information including SSNs.
The following are some of the details that may be contained in the emails:
Kindly send me the individual 2016 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review.
Can you send me the updated list of employees with full details (Name, Social Security Number, Date of Birth, Home Address, Salary).I want you to send me the list of W-2 copy of employees wage and tax statement for 2016, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.
Phone scams are a serious threat and remain on the IRS “Dirty Dozen” List of Tax Scams for 2017. Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers. See IR-2017-19.
An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.
Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.
Or, victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request.
The IRS will never:
Tax Deadline Extended to April 18th For Filing 2016 Tax Returns
The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. See IRS’s Tax Calendar here.
Generally, April 15 of each year is the due date for filing your federal individual income tax return. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday, April 17. However, Emancipation Day, a legal holiday in the District of Columbia, will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017.
Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.
The 2017 Tax Filing Season, for filing 2016 tax returns, begins January 23, 2017.
The Internal Revenue Service recently announced that the tax season will officially begin Monday, January 23, 2017. This is the day that the IRS will begin accepting electronic tax returns and processing paper tax returns.
Most software companies and tax professionals, including us, will be accepting tax returns before January 23, and then will submit the returns when IRS systems open.
To prepare for filing your tax return, as you receive your 2016 tax documents, please collect them and keep them with your tax organizer. These documents include such items as your W-2s, Form 1099s, K-1s, brokerage statements, health insurance tax documents, etc. Your check register may also include pertinent information.
When you have gathered all your tax information, please set-up an appointment or mail/submit the tax organizer, along with your various tax forms to us.
Our office is on Cape Cod on Route 28 in West Harwich. The address is 72 Route 28, Suite 2, West Harwich, MA 02671-1112. We’re on the first floor.
We can be reached by phone at (774) 237-0691 or by FAX at (774) 237-0835. Use our contact form to send us an email.
IRS Lowers Mileage Rates for 2017
The Internal Revenue Service has issued the 2017 optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning, January 1, 2017, standard mileage rates for the use of an automobile will be: