Some of us get our taxes done early and cross it off our to-do list. However, there is a sizable number of procrastinators out there who wait until the 11th hour (sometimes literally) to file their taxes. With the major changes due to the Tax Cuts and Jobs Act, waiting this year is even a bigger mistake than ever. Nevertheless, we have your back with some last-minute tips on how taxpayers can determine their obligations.
There is more than the usual amount of confusion this tax season with 2017’s Tax Cuts and Job Creation Act going into effect. Addressing this issue, the IRS said that it would be more lenient if filers were close to tax liability for the year.
There have been extensive budget cuts at the IRS and the average audit rate is just .6 percent. The president has bragged and been cagey about how little he paid in taxes. Nevertheless, an annual IRS survey claims that nine out of ten Americans believe that it is their civic duty to pay taxes.
Austin and the state of Texas have a lot of assets that add up to a great quality of life for many. To start with: theres are the food and music, the weather, the tech industry, and of course the fact that we do not pay income taxes. Many would seem to agree with this assessment, and the moving trucks seem to arrive daily, helping grow what was once a college town with the capital to a thriving and economically metropolis.
The IRS has taken many steps to modernize the way it processes tax returns and pays its refunds. It all happens much more quickly now than it once did. This is good news for those who are hoping that their refund arrives before their big spring vacation – having extra cash on hand would reduce the costs incurred or enable some nice upgrades. However, waiting for a check in the mail is seemingly exponentially harder than watching grass grow and certainly longer than waiting for a pot to boil.
Small business owners are working towards the filing deadline, which is March 15 or April 17 for many of them. Ideally, they are poring over the books and seeing some positive numbers. Nevertheless, there is always room for improvement in all areas. Now with a year under our belts with the new tax system, we offer a few tax tips for small businesses to adjust as they move forward into the second year of the Tax Cuts and Jobs Act.
The 2019 tax season is now officially upon us. Plus, the federal government is at least temporarily reopened, although the IRS workers had been called back to work. The season will be noteworthy for the above issues as well as the 2017 Tax Cut and Jobs Act that revamped the rules for determining one’s tax obligation. Nonetheless, one trend that continues is the fact that the IRS continues its downward trend of auditing fewer and fewer filers.
The government shutdown continues with many of the 880,000 federal workers still on furlough. Many news reports claim, however, that the IRS is preparing for the beginning of the tax filing season on January 28 by recalling 46,052 workers (or 57 percent of the 80,265 workers on staff) to work. Much to the consternation of many including the National Treasury Employees Union (NTEU), most of these workers will not be paid until the government reopens. The IRS has previously been operating with only 12.5 percent of its staff, which is less than 10,000 employees.
The federal government remains in a partial shutdown as the president and congress go toe to toe over border security. This means that 880,000 federal employees are currently on furlough, including seven in eight of those at the Internal Revenue Service. Experts believe that there will be no delays in the processing and issuing of returns as long as the shutdown does not drag on past the middle of January. It should also be noted that tax payers can file online or submit them via the mail even if the government is shut down.
Most of us think of the IRS as that government organization that collects taxes from individuals and organizations. However, the IRS does other work as well. This includes keeping tax information safe from fraudsters and thieves. Thus the IRS has a new press release from the Security Summit during Tax Security Week (Dec. 3-7) entitled “It’s shopping season for identity thieves, too.”