July IRS News
It’s summer, many people are not thinking about taxes, but there are still important things happening in and around the IRS. Here are some important updates you should notice.
Data Security Updates
A new awareness campaign has been launched by the IRS and its Security Summit partners.is primarily aimed at tax professionals and includes updated information to help protect taxpayers’ data and help prevent the filing of fraudulent returns. Criminal entities obtain and use stolen identity information and to combat this the newly-revised , Safeguarding Taxpayer Data, outlines basic steps tax professionals should take and how to take them. It also provides details on how to comply with requirements for a data security plan. The IRS also created , Data Security Resource Guide for Tax Professionals, which includes additional resources for tax preparers.
Veterans May Be Owed Refunds
The IRS has announced that veterans who claimed disability severance payments after January 17, 1991 as income should file an amended return to claim refunds. This is a result of the Combat-Injured Veterans Tax Fairness Act of 2016. Veterans should receive a letter from the US Department of Defense explaining how to claim their refund, which will expire one year from the date of the letter. More information and special instructions can be found.
Summer Tax Tips
Summer workers may be exempt from income tax withholding, but will still pay social security and Medicare tax. Check your withholding with theand make adjustments if necessary. Also ensure that your worker classification is accurate; independent contractors are responsible for paying their own taxes, including Social Security and Medicare, while employees have their taxes withheld from their paychecks. Know your and plan accordingly.
Summer is wedding season and newly-married couples should not waste time in filing any name changes with the Social Security Administration and adjusting their withholding.
If you’re clearing out old or unused belongings, donating them to amay provide you with tax deduction. You can also deduct mileage if you use your personal vehicle for any charity work.
Summer day camp (not overnight camp) expenses may qualify as a Child and Dependent Care Credit. See IRS Publication 503,, for more information.
More details are.