admin

“The Internal Revenue Service is replacing its old online tax withholding calculator with a new Tax Withholding Estimator that it says will make it easier for taxpayers to determine how much in taxes they should withhold from their paychecks next year.

The move comes after widespread complaints from many taxpayers this year that they ended up unexpectedly owing taxes to the IRS after passage of the Tax Cuts and Jobs Act at the end of 2017. In many cases, the problem stemmed from taxpayers not adjusting the withholding for their paychecks because the tax overhaul eliminated the traditional personal and dependent exemptions. The IRS had publicized the need last year to go online and do a “paycheck checkup” using the online tax withholding calculator to adjust their withholding, but the process was cumbersome and confusing, and relatively few taxpayers followed the IRS’s advice.” ~Michael Cohn, Accounting Today

The Tax Withholding Estimator can be found at https://www.irs.gov/individuals/tax-withholding-estimator

“A caller says that he’s from the government and your Social Security number (SSN) has been suspended. He sounds very professional. So you should do exactly what he says to fix things…right? Wrong.”

The Federal Trade Commission has an excellent article HERE with information about your Social Security number and a recent scam.

*originally broadcast on March 15, 2019*

WASHINGTON — The Internal Revenue Service today warned the public about a new twist on the IRS impersonation phone scam whereby criminals fake calls from the Taxpayer Advocate Service (TAS), an independent organization within the IRS.

Similar to other IRS impersonation scams, thieves make unsolicited phone calls to their intended victims fraudulently claiming to be from the IRS. In this most recent scam variation, callers “spoof” the telephone number of the IRS Taxpayer Advocate Service office in Houston or Brooklyn. Calls may be ‘robo-calls’ that request a call back. Once the taxpayer returns the call, the con artist requests personal information, including Social Security number or individual taxpayer identification number (ITIN). (read more by clicking HERE

Taxpayers should keep copies of their tax returns for at least three years. Those who need a copy of their tax return should check with their software provider or tax preparer. Prior year tax returns are available from IRS for a fee.

For those that need tax transcripts, however, IRS can help. Transcripts are free.

Tax Transcripts

A transcript summarizes return information and includes Adjusted Gross Income (AGI). They are available for the most current tax year after the IRS has processed the return. People can also get them for the past three years.

When applying for home mortgages or college financial aid, transcripts are often necessary.

Taxpayers can get two types of transcripts from the IRS:

• Tax Return Transcript.  A tax return transcript shows most line items including AGI from an original tax return (Form 1040, 1040A or 1040EZ) as filed, along with any forms and schedules. It doesn’t show changes made after the filing of the original return. This transcript is only available for the current tax year and returns processed during the prior three years. A tax return transcript usually meets the needs of lending institutions offering mortgages and student loans.
• Tax Account Transcript.  A tax account transcript shows basic data such as return type, marital status, adjusted gross income, taxable income and all payment types. It also shows changes made after the filing of the original return.

Visit https://www.irs.gov/newsroom/how-to-get-tax-transcripts-and-copies-of-tax-returns-from-the-irs for information on the three options for getting your tax transcript: online, by phone, or by mail.

The Interactive Tax Assistant (ITA) is a tool that provides answers to a number of tax law questions. It can determine if a type of income is taxable, if you’re eligible to claim certain credits, and if you can deduct expenses on your tax return. It also provides answers for general questions, such as determining your filing status, if you can claim dependents, if you have to file a tax return, etc.