The IRS has released helpful information for the 2022 tax filing season at IRS.gov. The information includes the start date of January 24th as the filing season start date as well details on items specific to the tax season such as the advance Child Tax Credit and the Recovery Rebate Credit. Click here to find out what the IRS wants you to know about filing your 2021 tax return.
BOLO (Be On the Lookout)
The IRS will be mailing out letters in January that everyone needs to be looking for and placing with their 2021 tax documents. The letters specify the amounts the IRS has on record that was sent to taxpayers for the stimulus payments in early 2021 and the Child Tax Credit from July to December. Letter 6475 will be issued for those that received the stimulus payment. Letter 6419 will be issued to those that received the Child Tax Credit. The amounts reported on these letters need to match the amounts reported on the taxpayer's return or the processing of the return will be delayed.
As the year enters its final two months, the IRS recommends checking your withholding to eliminate any surprises at tax time early next year. The IRS offers items to consider when determining your tax liability for 2021 and also provides a handy calculator to determine if too much is being withheld. Click here to access the IRS site and check your withholdings.
The IRS has released it's "Dirty Dozen" tax scams for 2021 at IRS.gov. The IRS changed the format this year by categorizing the scams into four main groupings and then giving more detail on how the scams are executed. Click here to visit the IRS page with links to each category of scams for more information.
The IRS has released information about the upcoming Advanced Child Tax Credit Payments (CTC) that will begin in July explaining that more details are still to come. According to the IRS website, "For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021." An important detail yet to be announced is how eligible taxpayers can opt out of receiving advance payments if they choose. To read the full IRS release click here.
Looking For Your Stimulus Payment?
If you are still checking your mailbox or bank account every day anticipating a stimulus check from the government, the IRS has provided a tool to ease the suspense. The tool can tell you when your payment was mailed or submitted for deposit or if a payment wasn't issued at all. If you are due a payment but didn't receive one, you must file a 2020 return to claim the credit and thus have a payment issued to you. Click here to access the IRS tool.
What Is This 1099-NEC?
The IRS has announced a new form to report non-employee compensation named the 1099-NEC. It's actually an old form being revived to report service providers. Accountingweb has a summary of the particulars for the form including a different due date than the other 1099 forms. Click here to view the summary.
What Will Joe Biden Do
Now that Joe Biden is the President-elect, we can surmise what policies he will direct his focus to put his fingerprints on . Well we can't but Kiplinger can. Although most are not tax specific, many are tax influencing so we have some some curiosity, correct? Click here to see what policies we can expect a focus on according to Kiplinger.
Where's My Stimulus Check Part 3
The IRS recently announced the latest tool they are enacting to reach those who have yet to receive their stimulus payment. The IRS will be sending letters to those they believe may be eligible to receive an Economic Impact Payment but have not received a payment yet. The announcement stipulates that receiving a letter does not indicate eligibility. The announcement provides a copy of the letter that will be sent from an IRS address and instructions on how to check your eligibility for a payment using the tool on the IRS website. Be aware that their is an October 15 deadline to apply for your payment. Click here to see the announcement.
The IRS Has Your Back
Recently, the IRS released it's annual "Dirty Dozen" of methods scammers use to take advantage of the public's apprehension in dealing with the IRS. Due to the COVID-19 pandemic, scammers have additional opportunities with the Economic Impact Payments and other pandemic specific tax relief. Click here to visit the IRS website and prepare yourself to be on guard for these scams.
J. Alan Hayes