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IRS awards new contracts to private collection agencies

September 22, 2021 WASHINGTON — The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for collection of overdue tax debts. The new contracts begin Thursday following today’s expiration of the old contracts; taxpayers may be contacted by one of three groups. Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills […]

Understanding the tax responsibilities for starting a business

September 13, 2021 Small business owners have a variety of tax responsibilities. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new one. IRS.gov has the resources and information to help people through the process of starting a new business. Here are some tips for […]

IRS to let Child Tax Credit recipients update banking information

July 1, 2021 WASHINGTON — The Internal Revenue Service today upgraded a key online tool to enable families to quickly and easily update their bank account information so they can receive their monthly Child Tax Credit payment. The bank account update feature was added to the Child Tax Credit Update Portal, available only on IRS.gov. […]

The American Rescue Plan has retroactive tax benefits

May 25, 2021 The IRS reminds taxpayers who still haven’t filed, that several provisions of the American Rescue Plan affect their 2020 tax returns.   One provision excludes up to $10,200 in unemployment compensation from income. Another provision benefits many people who purchased subsidized health coverage through either federal or state Health Insurance Marketplaces. The law […]

Families to Automatically Receive Monthly Payment for each Child

May 17, 2021 WASHINGTON – The Internal Revenue Service and the U.S. Department of the Treasury announced today that the first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. Roughly 39 million households—covering 88% of children in the United States—are slated […]

IRS to recalculate taxes on unemployment; refunds start in May

March 31, 2021 WASHINGTON – To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. The legislation, signed on March 11, allows taxpayers […]

Check Get My Payment for status of third EIP and watch your mail 

March 29, 2021 The IRS continues to issue the third round of Economic Impact Payments to eligible individuals, with payments being issued as a direct deposit or by mail as a paper check or prepaid EIP debit card. No action is needed by most eligible people to receive a third Economic Impact Payment automatically. Check […]

Face masks and other PPE used for COVID-19 are tax deductible

March 26 2021 WASHINGTON — The Internal Revenue Service issued Announcement 2021-7 today clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. The amounts paid for personal protective equipment are also eligible to be […]

All first and second Economic Impact Payments have been issued

February 16, 2021 WASHINGTON – The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season. Beginning in April 2020, the IRS and Treasury Department began delivering the first round […]

Beware of ‘ghost’ preparers who don’t sign tax returns

February 6, 2021 WASHINGTON – The Internal Revenue Service reminds taxpayers to avoid “ghost” tax return preparers whose refusal to sign returns can cause a frightening array of problems. It is important to file a valid, accurate tax return because the taxpayer is ultimately responsible for it. Ghost preparers get their scary name because they […]