If your client receives a letter from the IRS requesting information to reconcile Advance Payments of the Premium Tax Credit, (Letter 0012C), as per the IRS: the Health Insurance Marketplace notified the IRS that advance payments of the premium tax credit were made on behalf of the taxpayer or their…

QuickAlerts for Tax Professionals, October 30, 2015: The IRS recently sent Earned Income Tax Credit Due Diligence letters to tax preparers who submitted incorrect or highly questionable EITC tax returns this past year. The letters are for information purposes only. However, IRS will continue to monitor the EITC returns prepared…

Publication 4557 “Safeguarding Taxpayer Data – A Guide for Your Business” has been revised and the updated version is now available in Web content on the e-file for Tax Professional page. The targeted audience for this publication is non-government businesses involved in the preparation and filing of income tax returns. The…

Military personnel and their families face unique life challenges with their duties, expenses and transitions. The IRS wants active members of the U.S. Armed Forces to be aware of all the special tax benefits that are available to them.   Here are 10 of those special tax benefits:   Moving…

Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area.  Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes.  Both individuals and…

WASHINGTON – The Internal Revenue Service announced today that guidance will soon be issued outlining a new voluntary program designed to encourage education and filing season readiness for paid tax return preparers.  The program will be in place to help taxpayers during the 2015 filing season.   The Annual Filing…

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.  The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes…

Refund Inquiry The IRS notifies the Electronic Return Originator (ERO) when the return is accepted, usually within 48 hours.  If the return was not accepted, the IRS notifies the ERO of the reasons for rejection.  If it has been more than three weeks since the IRS accepted the return and…

If a taxpayer’s refund comes in for less than the amount that was submitted with the tax return, the refund may have been offset for a past due obligation. IRS Tax Topic 203 explains refund offsets for unpaid child support and certain federal, state and unemployment compensation debts.  The Department of Treasury’s…

Regulations under Internal Revenue Code Section 7216, Disclosure or Use of Tax Information by Preparers of Returns, became effective January 1, 2009.  This regulation updated previous regulations that had been substantially unchanged since the 1970s, giving taxpayers greater control over their personal tax return information.  The statute limits tax return preparers’…