Jane F Smith CPA

07/16/2026

Identity Protection PINs help taxpayers guard against tax-related identity theft

One of the best ways taxpayers can protect themselves from identity theft is by requesting an Identity Protection Personal Identification Number.

What taxpayers should know about an IP PIN

Anyone with a Social Security number or an Individual Taxpayer Identification Number can request a free IP PIN, including taxpayers living abroad.
It’s a unique six-digit number known only to the taxpayer and the IRS.
It helps verify a taxpayer's identity when they file a federal tax return. It also protects the taxpayer's account, even if they aren't required to file a return.
Taxpayers must verify their identity before receiving an IP PIN.
Tax professionals cannot request an IP PIN for a client but may use the number provided by the taxpayer when preparing and filing a return.
A new IP PIN is issued each year for added security.
Taxpayers who request an IP PIN online will need to retrieve their new one annually, starting mid to late January.
Taxpayers who receive an IP PIN must include it on all federal tax returns they file during the year, including prior-year and amended returns.
The IRS will never call, email, text, or message a taxpayer through social media channels to request their IP PIN.
The fastest way to get an IP PIN
The quickest and easiest way to request an IP PIN is through an IRS Individual Account. After signing in, taxpayers can select the IP PIN option under their profile. Those who do not already have an account will need to complete the identity verification process before requesting an IP PIN.

Options for taxpayers who can't verify their identity online
Taxpayers who are unable to verify their identity online may still be able to get an IP PIN.

Eligible taxpayers with an adjusted gross income below $84,000 for individuals or $168,000 for married filing joint may apply by submitting Form 15227, Application for an Identity Protection Personal Identification Number.
Taxpayers who cannot verify their identity online or by phone, are not eligible to use Form 15227, or experience technical issues can make an appointment at a Taxpayer Assistance Center to complete the process in person.

07/09/2026

Marriage means making changes before next filing season

Marriage is an exciting milestone, but it can also affect a couple's tax situation. Here are some simple steps after the wedding that can help make filing next year's tax return easier.

Report a name change
If either person changes their name, it should be reported to the Social Security Administration prior to filing a tax return. The name on the tax return must match Social Security records to avoid processing delays.

Submit a change of address, if needed
If either or both spouses moved to a new home, they should notify their local post office, employers, financial institutions and the IRS of any address change. Taxpayers can officially change their mailing address with the IRS by completing and submitting Form 8822, Change of Address.

Check tax withholding
Marriage may change a couple’s tax responsibilities. Newlyweds should give their employers a new Form W-4, Employee's Withholding Certificate, within 10 days. If both people work, this could move them into a higher tax bracket or they may be affected by the additional Medicare tax. The IRS Tax Withholding Estimator can be used to estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year.

Review filing status
A taxpayer's marital status as of December 31 determines their tax filing options for the entire year. Married people can choose to file their federal income taxes jointly or separately. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense.

Keep tax records together
Combining important tax documents, such as Forms W-2, Forms 1099 and prior-year tax returns, can help make tax filing easier and ensure all income is reported.

Explore tax credits and deductions
Marriage may affect eligibility for certain tax credits and deductions. Couples should review available tax benefits before filing their return.

07/08/2026

IRS simplifies penalty relief, introduces automatic process for eligible taxpayers
IR-2026-83, July 8, 2026

WASHINGTON — The Internal Revenue Service today announced a new automatic process to provide penalty relief for taxpayers with a history of filing and paying on time, reducing the need for them to request assistance.

The new Automatic Exemption from Penalty will replace the long-standing First Time Abate administrative relief and is designed to simplify the process and reduce burden for those with a timely compliance history.

“Automatic Exemption from Penalty reflects the IRS’ commitment to making the payment of taxes owed simpler and more consistent,” said IRS Chief Executive Officer Frank J. Bisignano. “By automatically applying penalty relief, the IRS recognizes that taxpayers who historically pay on time should not have to make a formal request for relief that is routinely granted.”

New automatic penalty relief begins in summer 2026
The new Automatic Exemption from Penalty, or AEP, is a systemic administrative relief program expected to begin this summer. AEP applies to eligible original returns beginning with tax year 2025 and 2026 quarterly returns, as well as future tax periods. Taxpayers qualify if they have a history of timely filing the return and paying any tax due in the three prior years (or 12 consecutive quarters for quarterly returns). When taxpayers qualify, penalties are not assessed during processing for:

Failure to file.
Failure to pay.
Failure to deposit.
Taxpayers do not need to take action to receive this relief. If eligible, the IRS will apply AEP and issue a notice confirming that the relief was granted.

Not all returns are eligible for AEP. For example, information returns and returns that are filed only in response to specific transactions or infrequent events (such as Form 706, U.S. Estate Tax Return or Form 709 Gift Tax Return) generally are not eligible.

First Time Abate phased out
First Time Abate has been the most common form of administrative penalty relief, allowing eligible taxpayers with a history of timely compliance to request the removal of certain penalties.

The IRS will begin phasing out First Time Abate and transitioning to AEP during the summer of 2026. During this transition, some qualifying taxpayers may still receive penalty notices for eligible tax year 2025 and 2026 quarterly returns. Taxpayers who believe they qualify may contact the IRS to request First Time Abate.

AEP provides relief automatically and will replace First Time Abate for eligible returns with original due dates on or after Jan. 1, 2027. Please visit Administrative penalty relief for more information.

What to expect
Taxpayers who do not qualify for AEP may still request penalty relief based on reasonable cause. The IRS will review those requests and notify taxpayers of the outcome. See Penalty relief for reasonable cause for more information.

While AEP prevents the assessment of certain penalties, taxpayers must still pay any tax and interest due, as well as any penalties not eligible for relief.

Supporting fairness and voluntary compliance
The IRS is making this change to promote fairness and consistency in the application of penalty relief while encouraging voluntary compliance.

By automatically recognizing taxpayers with a strong compliance history, AEP reduces taxpayer burden and ensures penalty relief is applied fairly and equitably to all taxpayers, thereby observing their Taxpayer Rights.

For more information about penalty relief eligibility and requirements, visit IRS.gov.

07/07/2026

Some Americans are getting a COVID tax refund — here’s who is eligible and how much they’ll get NY Post

Updated Mon, July 6, 2026 at 1:42 PM EDT

Eligible Americans may be in line for some extra cash, but time is running out to claim.

The refunds stem from IRS penalties and interest that some taxpayers paid during the COVID-19 emergency after the IRS had postponed many tax deadlines.

A recent federal court ruling — Kwong v. United States — found that the COVID-era deadline extensions may have also delayed when the IRS was allowed to begin charging certain late-filing penalties and interest. This means those who paid during that period may be entitled to a refund.

To get the COVID-era checks, all claims must be filed by July 10.
It’s not entirely clear how much taxpayers will receive but some experts feel it could be a large sum.

Simply put, the IRS may owe you money, but you’ll only get it if you file a claim by July 10. Plus, you must meet specific eligibility requirements.

To qualify, taxpayers must meet one of the following, according to Taxpayer Advocate:

-Filed a return during the COVID-19 disaster relief period and were given penalties or interest

-Paid or still owe penalties or interest for filing or paying late during that period

-Filed late international information returns

-Missed a refund, refundable credit, withholding credit, estimated tax payment credit or other tax benefit for tax years affected by the COVID-19 period

Dates to check are from January 20, 2020, through July 10, 2023, or for tax years that may have been affected by that period.

The funds may also extend to some folks who missed refund opportunities for tax years 2019 through 2022.

Remember that not everyone will get a refund. The IRS could approve, deny or not respond to your claim. If approved, two things may happen, according to the site.

Either your balance is reduced or you will get a refund if you’ve already paid.

If denied, you may protest or file a refund suit. If the IRS doesn’t respond within six months, you can take them to court, as the Kwong ruling supports claims in those scenarios.

However, those who do not file by July 10 will automatically lose the right to claim.

Individuals and businesses may preserve their rights is by filing a “protective claim” with the IRS. This allows the claim to stay valid even if the case remains tied up in court for years, according to experts.

Taxpayers can head to several law firms publishing guidance on claiming and eligibility like covidtaxrefunds.com. On July 1, the IRS added a new online option for taxpayers to file their Form 843 electronically through the IRS website, although you must have an online account.

For those wishing to file a claim old-school style, complete the current paper version of Form 843 and mail it to:

Internal Revenue Service1973 N. Rulon White Blvd.Ogden, UT 84201

Those sending by mail must identify the submission as being related to Kwong v. United States by writing “Kwong v. United States” across the top.

06/30/2026

Treasury, IRS provide safe harbor for certain contributions to Trump Accounts under the Working Families Tax Cuts

IR-2026-80, June 29, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2026-25 providing a gift tax reporting safe harbor for certain contributions to Trump accounts created under the Working Families Tax Cuts.

Under this safe harbor, if certain requirements are met, contributions made by individual donors to Trump accounts in a given year will not be subject to gift tax reporting requirements for that year.

“By granting this relief, the IRS has responded to concerns raised by taxpayers who planned to make contributions to a Trump account but worried such donations would trigger the gift tax reporting rules,” said IRS Chief Executive Officer Frank J. Bisignano. “The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account.”

Sign up for a Trump Account and the pilot program

Parents, guardians, and other authorized individuals, can use IRS Individual Online Account to complete Form 4547, Trump Account Election(s) to elect to open the initial Trump account for a child with a Social Security number if the election to open the initial Trump account is made before the calendar year in which the child turns age 18. In addition, if that child is a U.S. citizen born in 2025 through 2028, the parent or other individual who qualifies to do so may check a box on Form 4547 to elect a $1,000 pilot program contribution to the child’s Trump account.

Visit trumpaccounts.gov for more information on Trump Accounts. For more information on the provisions of the new legislation, see Working Families Tax Cuts Provisions on IRS.gov.

06/27/2026

Mid-year is the perfect time for a quick tax check

It’s halfway through the year, which is a great time for taxpayers to do a quick check to make sure they’re on a smooth track to next filing season. Here are some tips:

Keep good tax records. Taxpayers should keep all important tax records in one place. They can use electronic recordkeeping software or clearly labeled paper folders and add documents as they receive them. Organized records make tax return preparation easier and may help taxpayers identify deductions or credits they might otherwise miss.

Identify filing status. A taxpayer’s filing status affects their tax requirements, deductions, credits, and tax liability. Life changes such as marriage, divorce, birth, or death may affect filing status and eligibility for certain tax benefits. Taxpayers can use the IRS’s Interactive Tax Assistant, What is my filing status? to get help choosing the best one for their tax situation.

Understand adjusted gross income. AGI is income from all sources minus any adjustments. A higher AGI generally means a higher tax rate. Tax planning may help lower AGI and reduce taxes owed.

Check withholding. Taxpayers need to pay their tax as they receive their income, and they do this through withholding. The IRS Tax Withholding Estimator is a free, easy-to-use tool that helps workers and retirees estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year.
The estimator now reflects the changes to credits and deductions under the One, Big, Beautiful Bill. This includes the deductions for tips, overtime, car loan interest and enhanced deduction for seniors. It also accounts for updates tied to family-related credits, homeownership, and charitable giving.

Make address and name changes. Taxpayers should promptly report address changes to the USPS, employers, and the IRS using Form 8822, Change of Address. They should also report name changes to the Social Security Administration. Keeping this information current can make filing a tax return easier.

Save for retirement. Saving for retirement can also lower a taxpayer's AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income.

06/25/2026

Social Security is making a change to debit card used by millions
USA TODAY
Mike Snider, USA TODAY
Wed, June 24, 2026 at 2:21 PM EDT
42

A major change to Social Security is coming for recipients who get their benefits sent to a debit card.

Most of the 70.6 million Americans who get Social Security and Supplemental Security Income benefits – more than 99% – get their payments electronically, via direct deposit to their checking accounts and to Direct Express prepaid debit cards. Those who get paper payments should know the Social Security Administration plans to fully transition to electronic payments for all beneficiaries by the end of the year.

Recipients who use the Direct Express debit cards have a change coming, too. The Treasury Department is changing the bank that handles recipient debit cards – Fifth Third Bank is replacing Comerica Bank as the financial agent for the Direct Express card program, the SSA said in a May 18 notice.

New Direct Express card enrollees are already getting Fifth Third Bank cards, the SSA says. The transition of current beneficiaries with existing Direct Express cards from Comerica to Fifth Third Bank will begin later this year or early next year, according to the agency. The change will affect about 3.6 million cardholders, according to The Motley Fool.

Social Security: Why women may bear the brunt if benefits get cut

When will Social Security send new Direct Express cards?

The Treasury Department will begin sending current Direct Express cardholders a new Fifth Third Bank card to replace their current Comerica card later this year. When the current card expires, beneficiaries will get a new Fifth Third Bank-issued card, the agency says.

Cardholders will be notified before their new card arrives. Meanwhile, your current card will remain fully functional, the agency says. New cards will work just the same as current cards have, with benefits arriving on the same schedule, Direct Express says.

However, recipients may want to take some action before their new card comes. "If you've moved recently, make sure the Social Security Administration has your updated contact information so it knows where to send your new debit card," suggests Motley Fool contributing retirement analyst Kailey Hagen.

Beneficiaries should keep all their contact information up to date to ensure they get all communications, the SSA says.

06/23/2026

IRS to offer final Saturday hours at Taxpayer Assistance Centers nationwide June 27

IR-2026-78, June 22, 2026

WASHINGTON — The Internal Revenue Service today announced select Taxpayer Assistance Centers will be open Saturday, June 27, for the final Saturday service event of 2026.

Participating TACs will be open from 9 a.m. to 4 p.m. to provide in-person assistance on a range of tax-related issues. Taxpayers are encouraged to visit IRS.gov/SaturdayHours before going to an office to confirm participating locations, available services, and appointment times.

During this one-day event, participating TACs in multiple states, the District of Columbia, and Puerto Rico will offer many of their regular services. Cash payments will not be accepted.

Since launching this year’s Saturday hours, the IRS has helped more than 13,000 taxpayers receive in-person assistance at TACs across the country. The June 27 event gives taxpayers one last opportunity this year to visit a participating TAC outside of the traditional workweek.

Appointments fill quickly, so taxpayers are encouraged to make an appointment at their local TAC as soon as possible.

The IRS Taxpayer Assistance Center (TAC) hosts special Saturday help events. Check back frequently for updated information on event dates and locations. Availability can change without notice.

06/22/2026

Tax return filed: Here are ways to check the status of a tax refund

Taxpayers who filed their federal tax returns and are owed a refund may be wondering about the status. There are several options for people to check.

A new feature in Individual Online Account lets taxpayers opt in to receive email notifications when there’s an update to their refund status. Taxpayers still have the option to check their refund status without signing in with Where’s my Refund?

Other ways to check refund status

IRS mobile app
Automated hotline- refunds: 800-829-1954 or amended returns 866-464-2050
Refund statuses are available as soon 24 hours after the current filing year tax return is e-filed. The IRS issues most refunds in less than 21 days.

In some cases, a refund could be delayed. A few reasons for this are:

Making a common mistake. These include forgetting to sign the return or making a math error.
Claiming the Additional Child Tax Credit. This credit can be complicated and requires more time to review.
Failing to include bank account information for direct deposit.
Filing an amended return. The IRS must compare the two returns as well as review both.
Requesting injured spouse relief which requires the IRS to manually process the case.