2023-07-05 The IRS has warned taxpayers against a new mailing scam trying to mislead them into believing they are owed a tax refund. The new scam can come in through email, text or mailing coming in a cardboard envelope from a delivery service including a letter with the IRS masthead and wording claiming that the notice is in relation to the taxpayer’s unclaimed refund. Taxpayers have been warned to look…
2023-06-29 The Court of Appeals for the 10th Circuit affirmed the district court’s decision, and held a Chapter 7 bankruptcy trustee may avoid corporate Debtor’s transfers to the IRS made while insolvent for personal tax debts of two of its principals three years before it filed for bankruptcy. Miller v. United States, No. 21-4135, 2023 BL 218070 (10th Cir. June 27, 2023), appealing In re All Resorts Group, Inc., 617…
2023-06-22 A bankruptcy discharge relieves a debtor of personal liability for a debt, but a creditor with a lien can collect in rem against the debtor's property. If the Debtors successfully complete their Chapter 13 plan by making five years of payments, the taxes are arguably dischargeable. If the taxes are discharged, the IRS would be prevented from taking any action to collect the tax debt owed by the Debtors…
2023-06-14 A taxpayer who disagrees with an IRS decision may be able to avoid the time and expense of a court trial by asking the IRS Independent Office of Appeals to review their case. IRS Appeals is separate from the rest of the IRS. When Appeals officers review cases submitted by taxpayers, they meet with taxpayers informally and consider their position and the IRS’s position in a fair and unbiased…
2023-05-31 Scammers sometimes use stolen Social Security numbers to file fraudulent tax returns and collect refunds. To prevent this, the IRS scans every tax return for signs of fraud. If the system finds a suspicious tax return, the IRS reviews the return and sends a letter to the taxpayer letting them know about the potential ID theft. The IRS won’t process the suspicious tax return until the taxpayer responds to…
2023-05-23 IRS Tax Tip 2023-70 An Identity Protection PIN helps shield taxpayers from tax-related identity theft Identity Protection PINs stop identity thieves from filing fraudulent tax returns. Taxpayers who participate in this program are assigned a six-digit number that they use to prove their identity when they file their federal tax return. The IRS’s Identity Protection PIN is an added layer of security for taxpayers. In the recent past, the…
2023-05-17 The Internal Revenue Service plans to start re-issuing collections notices to taxpayers that were suspended during the COVID-19 pandemic. The IRS will "communicate vigorously" with taxpayers, tax professionals and Congress on the timing of the plans so no one will be caught off guard by the generation of notices. The IRS does not plan to start re-issuing every notice on an unannounced day, but will stagger the issuance of…
2023-05-10 Taxpayers should use the current form to avoid delay.
2023-03-15 Notice 2023-23 provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2023 after the amendment to Code Sec. 401(a)(9) made by the “SECURE 2.0 Act of 2022” (SECURE 2.0 Act), P. L. 117-328, enacted on December 29, 2022. See IRS FAQ page. Division T included a number of retirement savings provisions. Section 107 amended section 401(a)(9)(C) of the Code to delay the required beginning date applicable…
2023-03-07 IR-2023-29, Feb. 16, 2023 WASHINGTON — The Internal Revenue Service announced today that taxpayers who receive certain notices requiring them to send information to the IRS now have the option of submitting their documentation online through IRS.gov. This new secure step will allow taxpayers or their tax professional to electronically upload documents rather than mailing them in, helping reduce time and effort resolving tax issues. In this stage of…