Kelley Tax Prep

01/23/2025

01/23/2025

Tax season starts Jan. 27 this year. It's time to to file your tax return. Take a look at all your filing options on the website to make the choice that's right for you. You can choose free filing options like Free File or Direct File, work with a tax professional or choose from many other ways to file. Whatever you choose--it's helpful to plan ahead. We have enhanced features on our website to help answer your questions any time of day or night.

Get started at https://ow.ly/sVTm50UEwQN.

01/23/2025

IRS.gov has answers to taxpayer questions

As people prepare to file their 2024 tax return, the IRS reminds taxpayers they can find answers to their tax questions from the comfort of their home using IRS online tools and resources. These IRS.gov tools are easy to use, available 24 hours a day and help taxpayers get ready to file.

IRS Free File: Nearly everyone can file their tax return electronically for free. The software does all the work of finding deductions, credits and exemptions. It's free for those who earned $84,000 or less in 2024. Some of the Free File packages also offer free state tax return preparation.

Choosing a preparer: The IRS has several options for finding a tax preparer. One resource is Choosing a Tax Professional, which offers a wealth of information for selecting a tax professional. This resource can help taxpayers find preparers in their area who currently hold professional credentials recognized by the IRS or who have an Annual Filing Season Program Record of Completion.

Interactive tax assistant: This tool answers even more tax questions and help find credits and deductions. It can also help a taxpayer determine if a type of income is taxable. Many people experienced changes to income and other life events in 2024.

Where's My Refund?: Taxpayers who filed a return and are waiting for their refund can use “Where's My Refund?” to check the status of a refund payment. Updates are available within 24 hours after the IRS receives an e-filed return or four weeks after the agency receives a mailed paper return.

View federal tax account information online: Individuals can visit IRS.gov to set up their account. If they already have a username and password, they can log in to view their federal tax account balance, payment history and key information from their most recent tax return as originally filed. Before accessing their account for the first time, taxpayers must authenticate their identity through the secure access process.

Paying a tax bill: The IRS offers several ways for taxpayers to pay their taxes including online or by phone. Direct Pay and IRS Online Account are free and safe ways to pay taxes or estimated tax directly from a checking or savings account. Pay by debit, credit card or digital wallet options are available, providers change a fee, not the IRS.
Taxpayers can check out many other tools and resources online at IRS.gov

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

09/12/2024

Taxpayer Advocate Service: A taxpayer’s voice at the IRS

The Taxpayer Advocate Service is an independent organization within the IRS. TAS protects taxpayers' rights by striving to ensure that all taxpayers are treated fairly and know and understand their rights under the Taxpayer Bill of Rights.

Here's what all taxpayers should know about their rights and the role of the Taxpayer Advocate Service.

The Taxpayer Bill of Rights
The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. The TAS Taxpayer Rights webpage can help taxpayers understand what these rights mean to them and how they apply. All taxpayers should know these rights.

What the Taxpayer Advocate Service can do for taxpayers
TAS can help taxpayers resolve problems that they haven't been able to resolve with the IRS on their own. The service is free. TAS helps all taxpayers and their representatives, including individuals, businesses and exempt organizations. If taxpayers qualify for TAS help, an advocate will be with them at every turn and do everything possible to assist throughout the process. Taxpayers can use the qualifier tool to determine if they are eligible for TAS assistance.

Taxpayers may be eligible for TAS help if:

Their IRS problem is causing financial difficulty.
They've tried and been unable to resolve their issue with the IRS.
They believe an IRS system, process or procedure just isn't working as it should.
Taxpayers can request assistance by completing and submitting Form 911, Request for Taxpayer Advocate Service Assistance. Full instructions are on the TAS website.

TAS also handles large-scale problems that affect many taxpayers. Those who know about these broad issues can report them using the Systemic Advocacy Management System on IRS.gov. Taxpayers should not include any personal tax information when reporting these issues.

How to contact a local Taxpayer Advocate Service office
TAS has offices in every state, the District of Columbia and Puerto Rico.

There are several ways taxpayers can find their local TAS office phone number.

Visit the contact us section of the TAS website.
Download Publication 1546, Taxpayer Advocate Service - We Are Here to Help You.
Call the IRS toll-free at 800-TAX-FORM (800-829-3676) and ask for a copy of Publication 1546.
Call TAS toll-free at 877-777-4778

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

08/27/2024

IRS shares new warning signs of incorrect claims for Employee Retention Credit

The IRS recently shared five new warning signs of incorrect claims by businesses for the Employee Retention Credit. The new list comes from common issues the IRS has seen while reviewing and processing ERC claims.

Aggressive promoters convinced many businesses to claim this pandemic-era credit when they’re not eligible. The IRS urges businesses to carefully review their filings to confirm their eligibility and ensure their claim doesn’t include these warning signs or other mistakes.

Businesses should talk to a trusted tax professional and resolve incorrect claims through the IRS’s claim withdrawal program or the second ERC Voluntary Disclosure Program to avoid issues such as audits, repayment, penalties and interest.

The five new red flags cover these areas:

Essential businesses during the pandemic that could fully operate and didn’t have a decline in gross receipts. Promoters convinced many essential businesses to claim the ERC when, in many instances, essential businesses weren’t eligible because their operations weren’t fully or partially suspended by a qualifying government order.
Businesses unable to support how a government order fully or partially suspended business operations. Whether a business was fully or partially suspended depends on its specific situation. When asked for proof on how the government order suspended more than a nominal portion of their business operations, many businesses haven’t provided enough information to confirm eligibility.
Businesses reporting family members’ wages as qualified wages. If business owners claimed the ERC using wages paid to related individuals, those claims are likely for the wrong amount or ineligible.
Businesses using wages already used for Paycheck Protection Program loan forgiveness. Businesses can’t claim the ERC on wages that they reported as payroll costs to get PPP loan forgiveness.
Large employers claiming wages for employees who provided services. Large eligible employers can only claim wages paid to employees who were not providing services. Many large employers’ claims incorrectly included wages for employees who were providing services during these periods.
The IRS previously issued warnings involving these seven areas:

Too many quarters being claimed.
Government orders that don’t qualify.
Too many employees and wrong calculations.
Businesses citing supply chain issues.
Businesses claiming ERC for too much of a tax period.
Businesses didn’t pay wages or didn’t exist during eligibility period.
Promoter says there’s nothing to lose.
For details on all of these warning signs, check new and previously shared signs ERC claims may be incorrect.
Businesses can also use the IRS’s ERC Eligibility Checklist or review Frequently Asked Questions about ERC Eligibility to help identify incorrect claims.

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08/27/2024

Truckers: Heavy Highway Vehicle Use Tax deadline is Sept. 3

The Heavy Highway Vehicle Use Tax is an annual federal excise tax on heavy highway motor vehicles that operate on public highways. The deadline to file and pay this tax for 2024 is September 3.

Deadline to file and pay
Taxpayers with vehicles in use on a public highway during the month of July must file Form 2290 and pay the appropriate tax between July 1 and Sept. 3, 2024. The usual Aug. 31 deadline is delayed until the next business day because it falls on a Saturday this year.

If vehicles are placed on the road during any month other than July, the tax is prorated for the months the vehicle was in service. IRS.gov has a table to help determine the filing deadline.

How to file Form 2290
All taxpayers who need to file Form 2290 are encouraged to e-file, and taxpayers with 25 or more taxed vehicles registered in their name are required to e-file Form 2290. Visit IRS.gov for a list of IRS-approved e-file providers.

If they e-file Form 2290, taxpayers can receive a stamped Schedule 1 of Form 2290 within minutes from their e-file provider. If taxpayers file by mail, they will receive their stamped Schedule 1 within six weeks after the IRS receives the form. Taxpayers who file by mail should use the correct IRS mailing address. Taxpayers use Schedule 1 of Form 2290 to report all taxable vehicles and as proof of payment when they register their vehicles in any state.

Who is subject to this tax
Anyone who has registered or is required to register large trucks and buses with a taxable gross weight of 55,000 pounds or more must report the Heavy Highway Vehicle Use Tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Taxpayers must file Form 2290 and pay the tax by the last day of the month following the month the vehicle was first used on public highways during the taxable period.

If they expect to use a vehicle for 5,000 miles or less (7,500 for farm vehicles), they're required to file a tax return, but they don’t owe the tax. If the vehicle exceeds the mileage use limit during the tax period, then tax becomes due on that vehicle.

The IRS is here to help
The IRS Form 2290 call center is available weekdays between 8 a.m. and 6 p.m. ET. The toll-free number from within the U.S. is 866-699-4096. The number for Canada and Mexico is 859-320-3581. Calls outside the U.S. are not toll free.

More Information

Trucking Tax Center
Frequently Asked Questions for Truckers who e-file
FAQs for Indian Tribal Governments regarding Highway Use Tax
Do I Need to Pay the Heavy Highway Vehicle Use Tax?

08/27/2024

IRS encourages people to do an end-of-summer tax checkup to avoid tax surprises next year

IR-2024-225, Aug. 27, 2024

WASHINGTON – The Internal Revenue Service today encouraged taxpayers to consider using the end of the summer to make tax withholding or payment updates to avoid a potential surprise next year at tax time.

While most taxpayers get a refund after filing their taxes, many also find they unexpectedly owe taxes. This can be due to a life or job change for which they did not make the necessary tax adjustment during the year.

Those who should be especially careful are:

• Gig economy workers.
• Those with a “side hustle.”
• Anyone earning income not subject to withholding.

These individuals should check the amount they pay, or the amount of tax they have withheld throughout the year, to bring the tax they pay closer to what is owed. The IRS has a special Tax Withholding Estimator that can help taxpayers align their tax withholding or tax payments with what they owe.

The IRS reminds taxpayers that tax planning done now can save time and frustration later. Here are some important things to keep in mind:

How refunds work

The federal tax system is pay-as-you-go. Taxpayers pay tax as they earn wages or receive income during the year. For many, taxes are withheld from their paycheck by their employer and then given over to the IRS on their behalf. Others, such as gig economy workers, make or should make quarterly estimated tax payments throughout the year to stay current. A refund normally results when too much is withheld or paid throughout the year.

Recent IRS statistics show that two-thirds of taxpayers received a refund so far in 2024. As of mid-May, nearly $270 billion in refunds went to taxpayers with the average refund just under $2,900.

Avoid an unexpected bill

On the other hand, many taxpayers end up with estimated tax penalties because they underpay throughout the year. The penalty amount varies but for some it can be several hundred dollars. Adjusting withholding on paychecks or the amount of estimated tax payments can help prevent penalties. This is especially important for self-employed people, including those in the gig economy, those with more than one job and those with major changes in their life, like a recent marriage or a new child.

With that in mind, the IRS encourages taxpayers to use the IRS Tax Withholding Estimator this summer to help better align their tax withholding or tax payments with what they owe.

Tax Withholding Estimator

This handy tool on IRS.gov helps people figure the amount of federal income tax they should pay during the year. All that’s needed for taxpayers to use it are paystubs for all their jobs or other income information, such as from side jobs, self-employment or investment income, and a copy of their 2023 tax year return.

People can use the Tax Withholding Estimator to:

• Estimate their federal income tax withholding.
• See how a refund, take-home pay or tax due are affected by withholding amounts.
• Choose an estimated withholding amount that works for them and their family.

If a withholding change is needed upon completion, taxpayers should adjust their withholding by submitting a new Form W-4 to their employer or pension provider. They can also adjust quarterly estimated tax payments as appropriate.

IRS also reminds people to use the Tax Withholding Estimator if there’s a major life change such as a:

• New job or other paid work.
• Major income change.
• Marriage.
• Childbirth or adoption.
• New home purchase.

While the Tax Withholding Estimator works for most taxpayers, people with more complex tax situations should instead use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe Alternative Minimum Tax or certain other taxes, and people with long-term capital gains or qualified dividends.

Additional information

• Tax Withholding Estimator FAQs
• Paycheck Checkup

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

04/27/2024

When a taxpayer should file an amended federal tax return

When a taxpayer realizes that their federal tax return has a math error, missing income or other mistake, they should file an amended tax return.

A taxpayer must file an amended return if they need to correct:

Filing status
Income
Deductions
Credits
Tax liability
Math errors and missing schedules
Taxpayers usually do not need to file an amended return to fix a math error or if they forgot to attach a form or schedule. The IRS will correct the math error while processing the tax return and notify the taxpayer by mail. The agency will send a letter to request any missing forms or schedules.

The IRS Interactive Tax Assistant can help taxpayers decide if an amended return is necessary
Taxpayers can use the Should I File an Amended Return? tool in the Interactive Tax Assistant on IRS.gov to help decide if they should file an amended return to correct an error or make other changes if they already filed.

How to file an amended tax return
Taxpayers should use Form 1040-X, Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040-series return or to change amounts previously adjusted by the IRS. Taxpayers can file Form 1040-X electronically for their 2020, 2021, 2022 and 2023 Forms 1040 or 1040-SR. Additionally, they can electronically amend Form 1040-NR and Form 1040-SS/PR for tax years 2021, 2022 and 2023.

Check the status of an amended return
Taxpayers can check the status of their Form 1040-X with the Where's My Amended Return online tool or by calling 866-464-2050 three weeks after filing it. They can also check the status of their refund with the Where’s My Refund tool.

When using either tool, taxpayers will need to enter their Social Security or Taxpayer Identification number along with their date of birth and ZIP code to prove their identity. Once authenticated, they can view the status of their amended return across three processing stages: received, adjusted and completed.

Some tax returns may take longer to process
The IRS issues most refunds in fewer than 21 days for taxpayers who filed electronically and chose direct deposit. Some returns have errors or need more review and may take longer to process.

More information
Form 1040-X, Amended U.S. Individual Income Tax Return, Frequently Asked Questions

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

11/02/2023

e-News for Clean Vehicle Industry November 2, 2023
News Essentials
What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions

The Newsroom Topics
Credits and Deductions Under the Inflation Reduction Act of 2022

Clean Vehicle Tax Credits

Frequently Asked Questions About the New, Previously Owned and Qualified Commercial Clean Vehicles Credit

Multimedia Center

Noticias en Español

Tax Scams

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News Home

IRS Resources
Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

IRS Social Media

Welcome to the first edition of e-news for clean vehicles. This bulletin will be used to get important updates and relevant information to you quickly.

Yesterday, the IRS launched the IRS Energy Credits Online tool, available for free from the IRS. Car dealers can now register to submit time-of-sale reports and receive payments from the IRS for the clean vehicle tax credits. Dealers expecting to sell clean vehicles next year should register as soon as possible.

Buyers will not be able to claim or transfer a clean vehicle tax credit if the dealer has not registered and does not successfully submit a time of sale report to IRS Energy Credits Online.

Initially, only one individual representative of the dealer or seller who is currently authorized to legally bind the dealer or seller can complete the initial registration through IRS Energy Credits Online. Starting December 2023, dealers and sellers will be able to authorize more than one employee to submit Time of Sale reports and advance payment requests.

The IRS is dedicated to helping you with this process. If your dealership runs into difficulty at any point in the registration process, you can contact [email protected].

In the coming weeks, the IRS will be establishing “office hours” that will give dealers and sellers an opportunity to ask questions or resolve problems. We will continue to send important updates and information through this bulletin.

The IRS has release additional resources that can be found here:

Publication 5862: Energy Credits Online: Register for Energy Credits Online

Publication 5867: Clean Vehicle Dealer and Seller Energy Credits Online Registration User Guide

Publication 5863: A Step-By-Step Guide for New and Used Clean Vehicle Dealers and Sellers for the Energy Credits Online

Publication 5864: New and Previously Owned Clean Vehicle Credit Time of Sale Reporting with Energy Credits Online

Publication 5865: Clean Vehicle Credit Transfer

Publication 5866: New Clean Vehicle Tax Credit Checklist

Publication 5866a: Used Vehicle Tax Credit Checklist

Dealer Registration Frequently Asked Questions

Video: How to Dealers and Sellers Register for Energy Credits Online

Fact Sheet 2023-22: Frequently Asked Questions About the New, Previously Owned and Qualified Commercial Clean Vehicles Credit

03/17/2023

IRS addresses questions about medical expenses related to nutrition, wellness and general health

WASHINGTON — The Internal Revenue Service today posted frequently asked questions that address whether certain costs related to nutrition, wellness and general health are medical expenses that may be paid or reimbursed under a health savings account (HSA), health flexible spending arrangement (FSA), Archer medical savings account (Archer MSA) or health reimbursement arrangement (HRA).

These FAQs are part of the National Strategy on Hunger, Nutrition and Health. The National Strategy provides a roadmap of actions the federal government will take to end hunger and reduce diet-related diseases by 2030.

Generally, a deduction is allowed for expenses paid during the taxable year for medical care if certain requirements are met. Alternatively, medical expenses are eligible to be paid or reimbursed under an HSA, FSA, Archer MSA or HRA. The FAQs address issues such as whether the cost of nutritional counseling, weight-loss programs, gym memberships and treatment for substance use disorders are considered medical expenses that may be paid or reimbursed under an HSA, FSA, Archer MSA or HRA.

For more information about whether costs related to nutrition, wellness and general health are medical expenses, see Publication 502, Medical and Dental Expenses, and Tax Topic 502, Medical and Dental Expenses.

For more information about HSAs, FSAs, Archer MSAs and HRAs, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.

03/15/2023

All taxpayers should know their rights, especially when they’re working with the IRS on a tax matter. IRS employees should also be familiar with knowing, observing and protecting taxpayers’ rights. The Taxpayer Bill of Rights lists and defines 10 fundamental rights of every taxpayer. On this list is the Right to Quality Service. Let’s take a closer look at the Right to Quality Service and what it means for taxpayers.

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:

IRS representatives will listen objectively. They will consider all relevant information prior to giving the taxpayer an answer.
IRS representatives will answer questions promptly, accurately and thoroughly, and will give the taxpayer information on recourse and applicable appeal rights.
When collecting tax, IRS representatives will treat people with courtesy.
When contacting taxpayers, the IRS usually only contacts taxpayers between 8 a.m. and 9 p.m.
IRS representatives won't contact the taxpayer's employer if they know the employer doesn't allow such contact.
IRS representatives won't make aggressive phone calls that threaten arrest or prison time.
IRS representatives 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 assistance from a 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.

More information
Taxpayer Advocate Service
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund
Forms and Publications About Your Appeal Rights
Publication 594, The IRS Collection Process