A backdoor Roth contribution is used by taxpayers whose MAGI is too high for a direct Roth IRA contribution because the MAGI limit does not apply to Roth conversions. When this occurs, taxpayers can still make a nondeductible traditional IRA contribution by April 15 of the following tax year to be treated as a contribution…… Read More

Compliance efforts continue involving high-wealth groups, corporations, partnerships    WASHINGTON – As part of continuing compliance efforts under the Inflation Reduction Act, the Internal Revenue Service today announced the agency has surpassed the $1 billion mark in collections from high-wealth taxpayers with past-due taxes. As part of larger efforts taking place, the IRS has stepped…… Read More

New IRS teams being established; new guidance designed to stop partnerships from using sophisticated tax-free transactions that lack economic substance IR-2024-166, June 17, 2024 WASHINGTON — As part of ongoing efforts to focus more attention on high-income compliance issues, the Internal Revenue Service announced today a new series of steps to combat abusive partnership transactions…… Read More

The Internal Revenue Service today highlighted a number of options available to help taxpayers who missed the April deadline to file their 2023 federal income tax return. To help struggling taxpayers, the IRS has important payment programs that can help those who have trouble paying the amount owed and special first-time penalty relief for those…… Read More

Summer wedding season has arrived, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer’s marital status as of December 31 determines their tax filing options for the entire year, but that’s not all newlyweds need to know. Report a name change Report any name changes to the Social…… Read More

The maximum credit amount is 30% of the cost of an energy efficient qualifying home improvements, up to certain annual limits for each type of improvement. Further details on the limits for specific improvements and categories of improvements can be found in the column to the right. The total annual credit that can be claimed…… Read More

Here are some simple things taxpayers can do throughout the year to make filing season less stressful. Organize tax records. Create a system that keeps all important information together. Taxpayers can use a software program for electronic recordkeeping or store paper documents in clearly labeled folders. They should add tax records to their files as…… Read More

Every taxpayer has fundamental rights when working with the IRS. Collectively their rights are known as the Taxpayer Bill of Rights. One of these is the right to challenge the IRS’s position and be heard. Here’s what this right means for taxpayers. Taxpayers have the right to: Raise objections. Provide additional documentation in response to formal…… Read More

El IRS envía avisos y cartas cuando necesita hacer una pregunta acerca de la declaración de impuestos federales de un contribuyente, informarle acerca de un cambio a su cuenta, o solicitar un pago. No entre en pánico si recibe algo por correo del IRS: están aquí para ayudarle. Cuando un contribuyente recibe correo del IRS,…… Read More

E Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. This is one of 10 basic rights known collectively as the Taxpayer Bill of Rights. The right to pay no more than the correct amount of tax means…… Read More