5 Things You Need to Know About What to do in 2022.
1. Tax Returns Processing started on January 24th. Your returns can be accepted right now.
Taxpayers in America need to file their tax returns by April 18, 2022 (normally April 15th, but due to the Emancipation Holiday in Washington DC, it’s April 18th).
Filing early using E-filing is the fastest way to get a refund! Filing an accurate return ensures avoiding delays.
2. The IRS is Ramping Up Enforcement Efforts:
The IRS has been instructed by Congress to beef up enforcement of the 2021 tax code, and they have been given new tools to do so. Including a new criminal restitution program that will allow for more aggressive collection actions against those who fail to pay their taxes. If taxes are not paid timely, and the IRS is not notified why the taxes cannot be paid, the law requires that enforcement action be taken, which could include the following: issuing a notice of levy, or a summons or other actions. To avoid extra trouble, make sure you contact a professional tax advisor who can help you if you are in arrears with the IRS. If you are having trouble getting your taxes done contact Pinpointe Accounting Services at +1 520–795–7505
3. Child Tax Credit: Earned Income Tax Credit or Additional Child Tax Credit refunds: By law, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, though eligible people may file their returns beginning on January 24. The law provides this additional time to help the IRS stop fraudulent refunds from being issued. Here is the fact sheet that may help you to understand the Child Tax Credit and how to apply for it. https://www.irs.gov/pub/newsroom/fs-2022-06.pdf
4. Relief has Been Requested of the IRS:
Due to increased funding and staffing levels, taxpayers should notice a real difference this year. Taxpayer service requests are up over 40% in the last 5 years, with over 80 million queries to the IRS about their tax filings this year alone. This fact alone should be an indication of why its important to get help when filing your taxes, to ensure accuracy and avoid difficulties with the IRS.
The IRS website and tax professionals continue to be the most valuable sources for tax advice/information
• The most valuable sources of getting tax advice and information are the IRS website (88%), paid tax professionals (88%), IRS representatives (85%), and an IRS personal online account (84%).
• IRS printed publications (78%), IRS applications on mobile devices (69%), reference materials from sources other than the IRS (68%), family and friends (59%) and IRS tax sources on social media (45%) are viewed as the least valuable. However, online and mobile sources show more variation by age, with younger taxpayers finding them more valuable than older. Additionally, friends or family are especially valuable to those 18–24 years.
• 34% of taxpayers contacted the IRS at some point over the past year. The IRS website and the toll-free number were the most used methods of initiating contact with the IRS in the last year, excluding the filing of tax returns (22% and 13%, respectively).
• Half of taxpayers used a paid tax professional. Usage of a paid tax professional increases with age and income. (Excerpt from https://www.irs.gov/pub/irs-pdf/p5296.pdf)
5. Enforcement Resources Focus on Small Businesses and Self-Employed:
The IRS is focusing its enforcement efforts on small businesses and self-employed workers. A new office for small business tax fraud investigation opened in 2020. Here’s another reason if you are a small business owner, it makes sense to get help in filing your tax returns. When in doubt, get professional help.
Pinpointe Accounting Services is ready if you are — just call us at +1 520–795–7505. We are hard at work. With some early planning and timely help, you’ll be finished with your taxes (and getting your tax refund) soon.