Tag Archives: non-profit

IRS Updates End of June

Expanded Voice Bot Assistance

To help improve taxpayers’ experiences with the department, the IRS has expanded the voice bot capabilities of their customer service phone lines. Now, in addition to general and procedural answers to Economic Impact Payment (EIP) or Advance Child Tax Credit queries and other toll-free lines, voice bots will be able to help eligible taxpayers verify their identity to set up or modify a payment plan – without the long wait times. More functions are planned to be rolled out this year, including the ability to get account and return transcripts, payment history and current balance information. 

Processing Backlog Progresses

The IRS is finally wrapping up the last of the paper individual tax returns (Form 1040, error-free) filed in 2021. Due to the pandemic and staffing limits, there are about twice as many returns awaiting processing at this point compared to a typical year. Steps have been taken to address this backlog and keep up with returns filed this year. Business paper returns filed in 2021 are next, while the IRS continues to work on the remaining individual returns that need corrections or additional information. Taxpayers are encouraged to file their returns electronically to avoid future processing delays.

Electronic Corrections, Amendments Expanded

The IRS has announced that more forms can now be amended electronically, including Form 1040-NR (US Nonresident Alien Income Tax Return), Forms 1040-SS (US Self-Employment Tax Return) and Forms 1040-PR (Self-Employment Tax Return – Puerto Rico). This development will assist the IRS in avoiding continued processing backlogs. Forms 1040-X and other corrected forms have had electronic filing options in place in recent years, and paper versions of the forms may still be submitted.

Reinstated Superfund Chemical Tax FAQ

The IRS issued frequently asked questions (FAQs) regarding the reinstated Superfund chemical excise tax. Thanks to the Infrastructure Investment and Jobs Act (IIJA), beginning July 1, 2022, excise taxes on certain chemicals and imported chemical substances will be reinstated. The FAQs detail what the Superfund chemical excise tax is, how the tax is computed, and who may be liable for the tax. Currently 151 substances are listed as taxable, though that number will likely change.

 

Tax Updates April 27

Properly Withhold for 2022

The IRS is urging taxpayers to use the Tax Withholding Estimator to ensure they’re having the right amount of tax taken out of their earnings. Now that 2021 returns have been completed, workers can use that information to adjust their withholding to more accurately reflect their tax burden. A large refund or surprise tax bill suggest that withholding needs to change. Those who have recently experienced a major life change such as marriage, divorce, birth of a child, or purchase of a home should also use the Estimator.

Nationwide Tax Forum In July

The IRS has announced that the 2022 IRS Nationwide Tax Forum will be held virtually over five weeks starting July 19. Live-streamed webinars will occur every Tuesday, Wednesday, and Thursday over the weeks. This summer event, held for more than 30 years, is an outreach to the tax professional community, and while many other events and organizations are meeting in person this year, the Nationwide Tax Forum will be online. Early bird registration is available, and tax professionals are encouraged to register soon. Topics will include tax law, ethics, virtual currency, and more, and will confer up to 28 continuing education credits upon attendees.

Missed April 18 Filing Deadline?

The IRS is encouraging taxpayers who missed the April 18 deadline to file as soon as possible. Taxpayers who are owed refunds will not be penalized for filing late, but those who owe taxes should file quickly to limit penalties and interest. Additionally, families can still claim the Child Tax Credit for 2021 if they have not received it. This year also marks the first time that families in Puerto Rico can claim the Credit, up to $3600 for each child.

May 16 Deadline For the Tax-Exempt

The IRS reminds tax-exempt organizations that May 16 is the deadline for filing certain returns, including Forms 990, 990-EZ, 990-PF, 990-N, 990-T, and Form 4720. Electronic filing is mandatory, and there are pre-recorded online workshops to help exempt organizations comply with filing requirements, if needed.

Are Your Donations Tax Deductible?

The year is wrapping up and tax time is on the horizon. Taxpayers have hopefully been proactive throughout the year in preparing for filing the year’s taxes, and perhaps they are considering ways they might lighten their tax burden. It’s also the holiday season and giving is on our minds. Making donations to tax-exempt charities can be a win-win: It certainly benefits the charitable organization (and those whom they help) and can be helpful to the taxpayer in the coming year.

Qualified Charities

It’s important to make sure your donations accomplish those things, especially in this era of fraudulent charities and financial scams. Is your preferred charity tax-exempt and eligible to receive tax-deductible charitable contributions? Has it had its tax-exempt status revoked? What is its federal tax filing status? Perhaps you’re looking for a charity to give to and would like to see who is operating in your state. The IRS has a tool that can help.

Tax Exempt Organization Search

The Tax Exempt Organization Search (TEOS) on IRS.gov can assist in answering these questions, and more. It’s mobile device friendly, and you can sort results by various criteria. The Interactive Tax Assistant can also help you determine if a charitable contribution you’d like to make is deductible. So before you make your year-end giving decisions, double-check to ensure your donations will be doing the most good, for everyone involved.