Ask the Taxgirl: Mitigating Tax by Investing
Can you avoid taxes on lawsuit proceeds by using the money to buy a home? Here’s how civil suit and punitive damages are treated for tax purposes.
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IRS Puts Hold on Some Automated Return and Collection Notices
Earlier this month, the IRS announced it would temporarily pause automated collection notices, unfiled tax return notices, and balance due notices it sends to taxpayers. The IRS said the stop would last until the existing backlog is “worked through.” However, the timing is anyone’s guess since, as of early this month, the IRS still had…
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Making Sense of Tax Season in 2022
The pandemic has brought many changes in the last few years, and these changes have affected the 2022 tax season. What challenges and updates should people be aware of this tax season? On today’s episode of the Taxgirl podcast, Kelly is joined by Amber Gray-Fenner to talk about challenges impacting taxpayers and tax professionals this…
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Returns and Refunds During the 2022 Tax Filing Season
Next week, hopeful taxpayers will begin checking bank accounts for tax refunds. Tax season opened on January 24, 2022, and the IRS says most taxpayers who file a tax return with no issues should expect a refund within 21 days if they file electronically and choose direct deposit. But with backlogs and bad information, some…
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How to Understand, Mitigate, and Defend Tax Penalties
In September, about 17.6 million tax returns were still awaiting processing, and the IRS expects to receive over 4 million more in October. The delay has left many taxpayers frustrated, especially those grappling with error notices and being charged penalties and interest for alleged mistakes. Those penalties add up. For the fiscal year 2020, the…
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IRS Churning Out Math Error Notices, Frustrating Taxpayers
Over the past year, the IRS has been slow to process tax returns but has appeared to continue to issue notices – especially math error notices. While the IRS made 628,997 math error corrections last year through July 15, 2020, the IRS made about 9 million math error corrections on returns filed by taxpayers in…
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How to Shrink the $1.4 Trillion Tax Gap
The IRS estimates that around 85% of taxes are paid voluntarily and on time. But the tax gap, the difference between the taxes paid on time and those still owed, means hundreds of billions of dollars are missing every year. While politicians often look to increase or decrease taxes as a part of their platform,…
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Working From Home Tax Issues: How COVID Complicates Tax Filing
The COVID pandemic has impacted everyone in different ways. While the last year has been difficult, filing your taxes could be yet another hurdle. If you’ve been telecommuting, you may face working-from-home tax complications. Potential working from home tax problems On this episode of the Taxgirl podcast, Kelly is joined by Timothy Speiss, the co-leader…
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Tax Whistleblowers and Reporting Tax Fraud
Tax fraud is serious business, and the IRS is looking for help to crack down on it. Paying IRS whistleblowers a reward is one tool the government uses to find and prosecute those cheating on their taxes. It can be lucrative for both the IRS and whistleblowers, who helped the government recover more than $6…
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Free Tax Help Will Be Available in 2021
Free tax preparation help is still available in 2021. Here’s how taxpayers can get assistance through VITA, TCE, AARP Tax-Aide, and IRS Free File.
