Tax Help

07/13/2022

Issue Number: Tax Tip 2022-105
IRS online account makes it easy for taxpayers to view their tax info anytime
Taxpayers who want to check their account information including balance, payments, tax records and more, can log into their IRS online account. It’s a simple and secure way to get information fast.
Taxpayers can view:
• Their payoff amount, which is updated for the current day
• The balance for each tax year for which they owe taxes
• Their payment history
• Key information from their most current tax return as originally filed
• Payment plan details if they have one
• Digital copies of select IRS notices
• Economic Impact Payments if they received any
• Their address on file
Taxpayers can also use their online account to:
• Select an electronic payment option.
• Set up an online payment agreement.
• Access tax records and transcripts.
• Approve and electronically sign Power of Attorney and Tax Information Authorization requests from their tax professional.
Taxpayer's balance will update no more than once every 24 hours, usually overnight. Taxpayers should also allow 1 to 3 weeks for payments to show up in the payment history.
Share this tip on social media -- : IRS online account makes it easy for taxpayers to view their tax info anytime

Tax Tip 2022-105, July 12, 2022 — Taxpayers who want to check their account information including balance, payments, tax records and more, can log into their IRS online account. It’s a simple and secure way to get information fast.

07/13/2022

Issue Number: Tax Tip 2022-103
Companies who promise to eliminate tax debt sometimes leave taxpayers high and dry
As the old saying goes: When something sounds too good to be true, it probably is. Taxpayers with outstanding tax bills might be tempted by businesses who advertise and offer to help them reduce their tax debt. These businesses, often called Offer in Compromise mills, make huge claims about reducing unpaid taxes for pennies on the dollar. Unfortunately, these companies sometimes don’t deliver and charge large fees.
An Offer in Compromise with the IRS can help some taxpayers who can’t pay their tax bill.

An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The offer program gives eligible taxpayers a path toward paying off their debt when they otherwise couldn’t or would face financial hardship.
The OIC mills that are dishonest take advantage of taxpayers’ lack of knowledge to make a quick buck.

These OIC mills urge people to hire their company to file an OIC application, even though the taxpayer won't qualify. They often charge big fees to prepare applications that they know the IRS will deny. This unfair practice wastes taxpayers’ time and money.
Taxpayers who do qualify for an OIC can get the same deal working directly with the IRS, without the extra fees.
The OIC mills that are dishonest are a problem all year long, but they step up their advertising after the filing season ends, when taxpayers are trying to resolve their tax issues.
Here’s what taxpayers considering an OIC should know:
• Individual taxpayers can use the IRS's Offer in Compromise Pre-Qualifier tool to see if they're eligible.
• When a taxpayer is ready to apply, they can watch an OIC video playlist that will lead them through the steps and forms to calculate an appropriate offer based on their assets, income, expenses and future earning potential.
• Taxpayers must make an offer based on their true ability to pay.
• Applying does not guarantee that the IRS will accept the taxpayer’s offer.
Finding reputable tax help

People who want help from a reputable tax profession can review Choosing a Tax Professional page on IRS.gov to find information about tax preparer credentials and qualifications. They can then use IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find a preparer by type of credential or qualification.

More information:
Offer in Compromise
Offer in Compromise Pre-Qualifier Tool
Offer in Compromise - IRS Video Portal
Form 656, Offer in Compromise

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Tax Tip 2022-103, July 7, 2022 — As the old saying goes: When something sounds too good to be true, it probably is. Taxpayers with outstanding tax bills might be tempted by businesses who advertise and offer to help them reduce their tax debt.

06/29/2022

Here are some things gig economy workers should know about their tax responsibilities
Many people take up gig work on a part-time or full-time basis, often through a digital platform like an app or website. Gig work, such driving a car for booked rides, selling goods online, renting out property, or providing other on-demand work, is taxable and must be reported as income on the worker’s tax return.
Here are some things gig workers should know to stay on top of their tax responsibilities:
Gig work is taxable:
• Earnings from gig economy work is taxable, regardless of whether an individual receives information returns. The reporting requirement for issuance of Form 1099-K changed for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions. This means some gig workers will now receive an information return. This is true even if the work is full-time or part-time.
• Gig workers may be required to make quarterly estimated tax payments.
• If they are self-employed, gig workers must pay all their Social Security and Medicare taxes on their income from the gig activity
Proper worker classification:
While providing gig economy services, it is important that the taxpayer is correctly classified.
• This means the business, or the platform, must determine whether the individual providing the services is an employee or independent contractor.
• Taxpayers can use the worker classification page on IRS.gov to see how they should be classified.
• Independent contractors may be able to deduct business expenses, depending on tax limits and rules. It is important for taxpayers to keep records of their business expenses.
Paying the right amount of taxes throughout the year:
• An employer typically withholds income taxes from their employees' pay to help cover income taxes their employees owe.
• Gig economy workers who aren’t considered employees have two ways to cover their income taxes:
o Submit a new Form W-4 to their employer to have more income taxes withheld from their paycheck if they have another job as an employee.
o Make quarterly estimated tax payments to help pay their income taxes throughout the year, including self-employment tax.
The Gig Economy Tax Center on IRS.gov answers questions and helps gig economy taxpayers understand their tax responsibilities.

More information:
Publication 5369, Gig Economy and your taxes: things to know
Publication 1779, Independent Contractor or Employee
Is My Residential Rental Income Taxable and/or Are My Expenses Deductible?

04/26/2022

Anxious to know when you’re going to get your refund? You can start checking on the status 24 hours after you have e-filed your tax return at https://www.irs.gov/refund.