21 de April de 2025
Gemini_Generated_Image_n2wzyzn2wzyzn2wz-1280x653.jpg

The Internal Revenue Service Whistleblower Office released its first-ever multi-year operating plan PDFoutlining guiding principles, strategic priorities, recent achievements and current initiatives to advance the IRS Whistleblower Program.

The IRS Whistleblower Office administers claims from whistleblowers that identify taxpayers who may not be complying with tax laws or other laws the IRS administers, enforces or investigates.

“The IRS Whistleblower Office Operating Plan incorporates extensive feedback received from whistleblowers, whistleblower practitioners, IRS employees, oversight bodies and other program stakeholders,” said IRS Whistleblower Office Director John Hinman. “Whistleblower information that the IRS can act on is an important component of effective tax administration as it bolsters the fair, efficient and effective enforcement of our nation’s tax laws, the success of our voluntary tax system and our efforts to reduce the tax gap.”

The plan reflects a multi-year approach to improving processes and operations, expanding collaboration and outreach and integrating valuable stakeholder feedback.

The operating plan is framed around six strategic priorities:

  1. Enhance the claim submission process to promote greater efficiency.
  2. Use high-value whistleblower information effectively.
  3. Award whistleblowers fairly and as soon as possible.
  4. Keep whistleblowers informed of the status of their claims and the basis for IRS decisions on claims.
  5. Safeguard whistleblower and taxpayer information.
  6. Ensure that our workforce is supported with effective tools, technology, training and other resources.

Within these six strategic priorities, there are 38 initiatives addressing short-term and long-term focus areas to advance the program. Some of the initiatives will require completion of detailed, specific activities while other initiatives are broad. The plan identifies areas of significant importance while allowing flexibility to address other concerns that may arise.

The IRS is committed to continuous improvement of the Whistleblower Program through ongoing collaboration with program stakeholders.

Assistance from whistleblowers

The IRS appreciates the valuable assistance it receives from whistleblowers and the whistleblower practitioner community. An effective whistleblower program provides an invaluable deterrence against non-compliance with tax laws, and whistleblower information significantly boosts revenues while improving tax fairness.

Since the inception of the IRS Whistleblower Office in 2007, the Whistleblower Office has made awards of over $1.3 billion based on the collection of more than $7 billion attributable to whistleblower information. In fiscal year 2024, the IRS paid awards totaling $123.5 million based on tax and other amounts collected of $474.7 million attributable to whistleblower information. The total dollar amount of awards paid in fiscal year 2024 was the third highest in the program’s history. The awards paid to whistleblowers generally range between 15% and 30% of the proceeds collected and attributable to their information.

Individuals with specific, timely, credible, relevant and significant information regarding non-compliance with any laws the IRS is authorized to administer, enforce or investigate are encouraged to consider filing a Form 211, Application for Award for Original Information PDF, to be considered for an award.

Source: IRS-2025-53, April 18, 2025


14 de April de 2025
124034-1-1280x564.jpg

The Internal Revenue Service reminds self-employed individuals, retirees, investors, businesses and corporations that April 15 is the deadline for first quarter estimated tax payments for tax year 2025.

Because federal income taxes are pay-as-you-go, the law requires individuals who don’t have taxes withheld to pay taxes as their income is received or earned throughout the year. Most people meet their tax obligations by having their taxes deducted from their paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

Taxpayers who are self-employed or in the gig economy are generally required to make estimated tax payments. Likewise, retirees, investors and others frequently need to make these payments because a significant portion of their income is not subject to withholding.

When estimating quarterly tax payments, taxpayers should include all forms of earned income, including part-time work, side jobs or the sale of goods or services, commonly reported on Form 1099-K.

Income such as interest, dividends, capital gains, alimony and rental income is normally not subject to withholding. By making quarterly estimated tax payments, taxpayers can avoid penalties and uphold their tax responsibilities.

Certain groups of taxpayers, including farmers and fishers, recent retirees, individuals with disabilities, those receiving irregular income and victims of disasters and terrorist attacks are eligible for exceptions to penalties.

Paying estimated taxes

Taxpayers can rely on Form 1040-ES, Estimated Tax for Individuals, for comprehensive instructions on computing their estimated taxes.

IRS Online Account streamlines the payment process for taxpayers making estimated payments. There, they can make and view their payment history, monitor pending payments and access pertinent tax information.

Taxpayers have several options to make an estimated tax payments, by mail or pay online with IRS Direct Pay, debit card, credit card, digital wallet or the Treasury Department’s Electronic Federal Tax Payment System.

To pay electronically and for more information on other payment options, visit Make a payment. If paying by check, be sure to make the check payable to the “United States Treasury”.

Publication 505, Tax Withholding and Estimated Tax, offers detailed information for individuals navigating dividend or capital gains income, alternative minimum tax or self-employment tax, or who have other special situations.

Source: IRS-2025-45, April 10, 2025


7 de April de 2025
2149094957-1280x853.jpg

The Internal Revenue Service today reminds individuals and businesses in areas covered by 2024 disaster declarations that their 2024 federal income tax returns and tax payments for tax year 2024 are due on Thursday, May 1, 2025. Taxpayers in three additional states face fall deadlines.

The IRS normally provides relief, including postponing various tax filing and payment deadlines for any area designated by the Federal Emergency Management Agency (FEMA). If a taxpayer’s address of record is in a disaster area locality, individual and business taxpayers automatically get the extra time without having to ask for it.

The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

What areas qualify for the May 1, 2025, deadline?

The May 1, 2025, deadline applies to taxpayers affected by FEMA disaster declarations issued during 2024. These include:

  • Taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina
  • Alaska – The City and Borough of Juneau
  • New Mexico – Chaves County
  • Tennessee – Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi and Washington counties
  • Virginia – Albemarle, Appomattox, Bedford, Bland and Botetourt counties; Bristol City; Buchanan, Buckingham, Carroll and Charlotte counties; Covington City; Craig County; Danville City; Dickenson and Floyd counties; Galax City; Giles, Grayson, Greene, Lee, Madison, Montgomery and Nelson counties; Norton City; Patrick, Pittsylvania and Pulaski counties; Radford City; Roanoke City; Roanoke, Russell, Scott, Smyth, Tazewell, Washington, Wise and Wythe counties

Further tax filing extensions available

Anyone who needs a tax filing extension beyond May 1, 2025, for tax year 2024 can get it, but they must request the extra time. This type of filing extension is not an extension of time to pay.

The IRS urges anyone who needs an extension to request it electronically by April 15, 2025. Though disaster-area taxpayers also qualify to request a tax filing extension between April 15 and May 1, 2025, these requests cannot be filed electronically. They can be filed only on paper using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

Whether filed electronically or on paper, the extension will give a taxpayers until Oct. 15, 2025, to file their 2024 return. The IRS emphasized that tax payments are still due by May 1, 2025. Visit IRS.gov/extensions for details.

Reminder for other disaster area taxpayers

In addition, individuals and businesses can wait until this fall to file their 2024 returns and pay any taxes due. This includes:

  • Oct. 15, 2025, for Los Angeles County in California, related to the January wildfires.
  • Nov. 3, 2025, for all of Kentucky and Boone, Greenbrier, Lincoln, Logan, McDowell, Mercer, Mingo, Monroe, Raleigh, Summers, Wayne and Wyoming counties in West Virginia.

Special relief for terrorist attacks in Israel

Taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel have until Sept. 30, 2025, to file and pay. This includes most returns and taxes due from Oct. 7, 2023, through Sept. 30, 2025, including Form 1040 and 1120 series returns.

What returns and payments qualify for automatic extension?

Eligible returns and payments include:

  • Calendar year 2024 partnership and S Corporation returns normally due on March 17.
  • 2024 individual income tax returns and payments normally due on April 15.
  • Quarterly estimated tax payments normally due on April 15.
  • Calendar year 2024 corporate and fiduciary income tax returns and payments normally due on April 15.

Other returns, payments and time-sensitive tax-related actions also qualify for the extra time. See the Disaster assistance and emergency relief for individuals and businesses page for details.

Other relief

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting with relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred or the return for the prior year. See Publication 547, Casualties, Disasters, and Thefts, for details.

Source: IRS-2025-41, April 4, 2025


31 de March de 2025
2150105056-1280x914.jpg

The Earned Income Tax Credit (EITC) has played a crucial role in helping millions of low-to-moderate income workers out of poverty. Saturday, March 29, 2025, marks the 50th anniversary of this important credit.

A component of the Tax Reduction Act, EITC was signed into law by President Gerald Ford on March 29, 1975. What began as a modest means to provide financial help to working families has evolved through a series of legislative changes into one of the federal government’s largest anti-poverty programs.

Over the past 50 years, the EITC has had a significant impact in the lives of eligible taxpayers claiming the credit. As of Dec. 2024, approximately 23 million workers and families received about $64 billion from EITC.

In 1975, the maximum credit amount for EITC was $400. For tax year 2024, the EITC can be up to $7,830. Today, the EITC continues to provide financial assistance to low-to-moderate income working families and individuals, with or without children, by helping them cover essentials, save for the future and build financial stability.

Taxpayers can use the EITC Assistant to determine their eligibility. Those that are eligible can learn how to claim the credit on IRS.gov.

Source: IRS-2025-38, March 28, 2025


26 de March de 2025
2151937261-1-1280x876.jpg

As the end of tax season approaches, the Internal Revenue Service reminds taxpayers that IRS Free File is a quick and easy way to file federal tax returns for free.

IRS Free File lets qualified taxpayers get free tax preparation, free electronic filing and free direct deposit of their federal tax refund, if they’re owed one, using guided tax preparation software available only at IRS.gov.

IRS Free File is available to taxpayers and families whose 2024 total adjusted gross income (AGI) was $84,000 or less. A taxpayer’s AGI includes wages, tips, business income, retirement income and other forms of taxable income. Through a public-private partnership between the IRS and the Free File Alliance, tax preparation and filing software providers make their online products available to eligible taxpayers. Each provider sets its own eligibility rules based on age, state residency and income. IRS Free File will guide taxpayers through choosing the provider that’s right for their needs

Benefits of IRS Free File

  • Using IRS Free File can help taxpayers find and calculate valuable tax credits like the Earned Income Tax Credit, Child Tax Credit and the Child and Dependent Care Credit.
  • Any individual or married couple that meets the income limitation is potentially eligible, and IRS Free File can also handle complex tax returns.
  • IRS Free File partner companies cannot disclose or use tax return information for purposes other than tax return preparation without the taxpayer’s informed and voluntary consent.
  • Taxpayers can use IRS Free File to file their taxes on any personal computer, tablet or smart phone.
  • All products are available in English, and one guided tax product is available in Spanish.

Easy way to file an extension

Need more time to file? IRS Free File is one of the easiest ways to request an extension. A tax filing extension guarantees the taxpayer six additional months to file, with an extended deadline of Oct. 15.

Although an extension grants extra time to file, it does not grant taxpayers extra time to pay if they owe. Taxpayers are still obligated to pay taxes due on April 15, 2025, to avoid penalties and interest. Taxpayers who owe should either pay their full tax bill or at least pay what they can afford by the April 15 deadline.

Other free tax filing options

In addition to IRS Free File, the IRS reminds taxpayers that there are other free programs available to help:

Free File Fillable Forms. All taxpayers regardless of their income can use the IRS’ Free File Fillable Forms. These are the electronic versions of IRS paper forms and are best for people who are comfortable preparing their own taxes using IRS forms and instructions.

Direct File. Taxpayers who lived and worked in one of 25 participating states for all of 2024 may use IRS Direct File to file federal tax returns online—for free—directly and securely with the IRS. Go to IRS Direct File to find more information, including eligibility requirements and updates to the list of tax situations added to IRS Direct File for the 2024 tax year.

VITA and TCE. People who generally make $67,000 or less, persons with disabilities, limited English-speaking taxpayers and those who are 60 years of age and older, can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. VITA/TCE sites are operated by IRS partners and staffed by IRS-certified volunteers who provide a trusted source for preparing tax returns.

MilTax. Offered through the Department of Defense, MilTax is a free tax resource available to members of the military, as well as qualifying veterans and family members. It is a suite of tax services designed to address the realities of military life—including deployments, combat and training pay, housing and rentals, and multi-state filings. MilTax includes tax preparation and electronic filing software, personalized support from tax consultants and current information about filing taxes. Eligible taxpayers can use MilTax to electronically file a federal tax return and up to three state returns for free.

For more on IRS Free File or other filing methods, check out the File your return page on IRS.gov.

Source: IRS-2025-37, March 25, 2025


21 de March de 2025
1742428001376.png

WASHINGTON — Gary Shapley has been named deputy chief for IRS Criminal Investigation (IRS-CI), starting March 19. In his new role, Shapley will oversee 20 field offices and 14 foreign posts, including more than 2,000 special agents investigating tax fraud and other financial crimes.

“Gary has been instrumental in many of our cases with an international nexus, and he brings a wealth of knowledge to the role of IRS-CI deputy chief,” said IRS-CI Chief Guy Ficco.

Shapley joined the IRS in 2009 as an IRS-CI special agent and has significant experience conducting international cases that involve foreign financial institutions and high-net worth individuals with complex financial assets. He was recently selected to serve as a senior advisor to Secretary Scott Bessent at the Department of Treasury.

Prior to that, Shapley served as a supervisory special agent for IRS-CI’s International Tax and Financial Crime group, an elite team of special agents who investigate fraudulent activity involving offshore tax holdings, financial institutions and foreign bank accounts. Shapley also served as the assistant special agent in charge of the Chicago Field Office from December 2021 to November 2022 and as the acting assistant special agent in charge of the New York Field Office from April 2021 to September 2021.

From 2013 to 2018, Shapley investigated foreign financial institutions that violated of U.S. law as part of the Department of Justice and IRS’ Swiss Bank Program. He also served as a task force officer on two of the FBI’s Joint Terrorism Task Forces where he pursued national security threats.

Shapley began his federal government career at the National Security Agency working in the Office of the Inspector General.

He holds a bachelor’s degree in accounting and business administration from the University of Maryland and a Master of Business Administration from the University of Baltimore.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 14 attaché posts abroad.

Source: IRS-2025-35, March 19, 2025


12 de March de 2025
90145-1280x731.jpg

The Internal Revenue Service today encouraged taxpayers to file a tax return or pay taxes they owe using electronic options on IRS.gov by April 15. These digital tools can help taxpayers avoid owing late filing and interest fees.

This announcement is part of the Tax Time Guide, a resource to help taxpayers file an accurate tax return.

File for a filing extension with IRS Free File

All taxpayers – regardless of income – can use IRS Free File to electronically file a six-month extension of time to file before April 15, 2025. There is no income limit for filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, through IRS Free File.

An extension gives taxpayers until Oct. 15, 2025, to file and helps them avoid penalties and interest for failing to file on time. An extension of time to file is not an extension of time to pay. Taxpayers must pay what they owe by the April 15 deadline, regardless of any extension to file a return not related to disaster relief. Interest and a late payment penalty will apply to any payments made after April 15. Making a timely payment, even a partial payment, will help limit those penalty and interest charges.

There are multiple options for electronic payments and for entering into a payment plan or an agreement with the IRS.

IRS Online Account

An IRS Online Account gives taxpayers access to important information that they may need when preparing to file a tax return, pay a balance or follow up on notices. That information includes their:

  • adjusted gross income.
  • payment history and any scheduled or pending payments.
  • payment plan details.
  • digital copies of select notices from the IRS.

Taxpayers can also use their Online Account to securely make a same-day payment for an outstanding 2024 tax balance, pay quarterly estimated taxes for the 2025 tax season or request an extension to file a 2024 return.

Other electronic payment options

Direct Pay, available at IRS.gov, is the fastest, easiest way to make a one-time payment without signing into an IRS Online Account.

  • Direct Pay is free and allows taxpayers to securely pay their taxes directly from their checking or savings account without any fees or registration. Taxpayers can schedule payments up to 365 days in advance. After submitting a payment through Direct Pay, taxpayers will receive immediate confirmation.
  • IRS2Go mobile app is the official mobile app of the IRS. Taxpayers can check their refund status, make a payment, find free tax preparation assistance, sign up for helpful tax tips and more. IRS2Go is available in both English and Spanish.
  • Electronic funds withdrawal (EFW) is a free option that allows taxpayers to file and pay electronically from their bank account when using tax preparation software or a tax professional. This option is free and available only when electronically filing a tax return.
  • Electronic Federal Tax Payment System is a free service that gives taxpayers a safe, convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can call 800-555-4477 or visit eftps.gov.
  • Debit or credit card and digital wallet lets individuals pay online, by phone or with a mobile device through any IRS authorized payment processor. Processors charge a fee for their services. The IRS doesn’t receive any fees for these payments. Authorized card processors and phone numbers are available at Make a payment.

Help for taxpayers who cannot pay in full

The IRS encourages taxpayers who cannot pay in full to pay what they can and consider the variety of payment options available for the remaining balance, including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties that the IRS must charge under federal law.

Taxpayers should act as quickly as possible and are urged not to wait to respond to a notice. Tax bills accumulate more interest and fees the longer they remain unpaid. For all payment options, visit Make a payment.

Online self-service payment plans

Most individual taxpayers qualify for a payment plan and can use the IRS online payment agreement to set up a payment plan to pay off an outstanding balance over time.

Once the online application is complete, the taxpayer receives immediate notification of whether their payment plan has been approved. Taxpayers can set up a plan using the Online Payment Agreement in a matter of minutes. There’s no paperwork and no need to call, write or visit the IRS. Setup fees may apply for some types of plans.

Online payment plan options for individual taxpayers include:

  • Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.
  • Simple payment plan – Criteria expanded for 2025 to make it easier and more accessible when the total balance owed is less than $50,000 in combined tax, penalties and interest. Taxpayer may pay in monthly payments for up to the collection statute (usually 10 years), in most cases. Payments may be set up using direct debit (automatic bank withdraw) which eliminates the need to send in a payment each month, saving postage costs and reducing the chance of default. Taxpayers should remember that extending the time to pay will increase the applicable penalties and fees.

Qualified taxpayers with existing payment plans may also be able to use the Online Payment Agreement to make changes including revising their payment dates, payment amounts or bank information for payments made by direct debit. Go to Online payment agreement application for more information.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay tax penalty rate is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on IRS.gov at Additional information on payment plans webpage.

Other payment options

Taxpayers struggling to meet their tax obligation may also consider these additional payment options:

  • Offer in compromise – Certain taxpayers qualify to settle their tax liabilities for less than the total amount they owe by submitting an offer in compromise. To help determine their eligibility, they can use the Offer in Compromise Pre-Qualifier tool.
  • Temporary delay of collection – Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves. Penalties and interest continue to accrue until the full amount is paid.
  • Other payment plan options – Taxpayers who do not qualify for online self-service should contact the IRS using the phone number or address on their most recent notice for other payment plan options. For individuals and out-of-business sole proprietors who are already working with IRS Campus Collection and who owe $250,000 or less, one available option is to propose a monthly payment that will pay the balance over the length of the collection statute (usually 10 years). These payment plans don’t require a financial statement, but they do require a determination for the filing of a Notice of Federal Tax Lien.

For more information about payments, see Topic no. 202, Tax payment options, on IRS.gov.

Non-digital payment options

  • Cash: For taxpayers who prefer to pay in cash, the IRS offers a way to pay taxes at one of its many retail partners. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, are at Pay with cash at a retail partner.
  • Check or money order: Payments made by check or money order should be made payable to the “United States Treasury.” To make sure the payment gets credited promptly, taxpayers should also enclose a 2024 Form 1040-V, Payment Voucher for Individuals PDF, and print the following on the front of the check or money order:
    • “2024 Form 1040.”
    • Name.
    • Address.
    • Daytime phone number.
    • Social Security number.

Taxpayer rights

The IRS reminds taxpayers that they have rights and protections throughout the collection process. For details, see Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer PDF.

Taxpayers should know before they owe. The IRS encourages all taxpayers to check their withholdings with the IRS Tax Withholding Estimator.

This information is part of the Tax Time Guide series, a resource to help taxpayers file an accurate tax return. Additional information and help are available in Publication 17, Your Federal Income Tax.

Source: IRS-2025-32, March 12, 2025


3 de February de 2025
2148101523-1280x853.jpg

The Internal Revenue Service and partners around the nation today celebrated the 50th anniversary of the Earned Income Tax Credit (EITC) with the launch of this year’s EITC Awareness Day campaign.

The annual campaign, now in its 19th year, helps increase awareness among the millions of working Americans with a low-to-moderate income who are eligible for the EITC. The IRS estimates that roughly one in five eligible taxpayers miss out on claiming this valuable credit.

EITC was signed into law on March 29, 1975. Through numerous legislative changes, the tax break has helped encourage work and lift many financially challenged families out of poverty.

As of December 2024, approximately 23 million workers and families had received about $64 billion total from the EITC, according to IRS statistics. On average, eligible taxpayers received $2,743 from the credit in tax year 2023.

For the past 19 years, the IRS has invited community organizations, elected officials, state and local governments, schools, employers and other interested parties to join this national grassroots effort to help reach workers eligible for the credit. IRS offers an online social media toolkit with sample text and downloadable graphics to help spread the word about the EITC.

Who is eligible to claim the EITC?

Workers may use the EITC Assistant, an online tool, to check their eligibility, which may be affected by changes in marital, parental or financial status. Workers also may visit the Child-related tax benefits comparison page to learn more about basic eligibility rules for the EITC and several other tax credits.

EITC is for workers whose income did not exceed the following limits in 2024:

No. of dependents Single filer income limit Married, filing jointly income limit
No children $18,591 $25,511
1 child $49,084 $56,004
2 children $55,768 $62,688
3+ children $59,899 $66,819

*Investment income limit: $11,600

Workers also must:

  • Be a U.S. citizen or resident alien all year.
  • File a tax return even if their income level doesn’t usually require them to file.
  • Have a valid Social Security number (SSN) for themselves, as well as for their spouse, if filing a joint return, and for each qualifying dependent claimed for the EITC.
  • File a return without Form 2555, Foreign Earned Income.

There are special rules for military personnel, clergy and ministers and taxpayers with certain types of disability income or a child who is disabled.

Eligible workers between the ages of 25 and 64 who have no dependents may receive up to $632 by claiming the EITC, while married but separated spouses who do not file a joint return may qualify for the EITC if they meet certain requirements.

Those with qualifying children can receive a maximum of $7,830 when claiming the EITC for tax year 2024, up from $7,430 in tax year 2023.

How to claim the EITC

To get the EITC, workers must file a tax return and claim the credit on that return. They can file in a variety of ways, including by using:

As a reminder, the quickest way for taxpayers to get their refund is by e-filing an accurate return and choosing to receive that refund via direct deposit.

New this year: Duplicate dependents

Starting this filing season, the IRS will accept an e-filed return even if a dependent has already been claimed on a separate, previously filed return as long as the primary taxpayer on the second return includes a valid identity protection personal identification number (IP PIN).

This change will reduce the time it takes for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns. In previous years, the second tax return had to be filed by paper.

Meanwhile, taxpayers who do not have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer.

Note that the use of an IP PIN does not exempt taxpayers from receiving notices questioning their right to claim certain dependents.

Claiming other valuable tax credits

Whether they qualify for the EITC, taxpayers may be eligible for other valuable tax credits, such as the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) or the Credit for Other Dependents (ODC). The Interactive Tax Assistant is a helpful tool for taxpayers to check their eligibility for those credits.

When to expect EITC refunds

The Where’s My Refund? tool, which allows taxpayers to monitor the status of their refunds, will be updated with projected deposit dates for most early EITC/ACTC refund filers by Feb. 22. Most EITC or ACTC related refunds should be available in bank accounts or on debit cards by March 3 if there are no issues with a taxpayer’s return and they chose to receive their refund by direct deposit.

Additional resources

Source: IRS-2025-20, Jan. 31, 2025


27 de January de 2025
2151937261-1280x876.jpg

The Internal Revenue Service opened the 2025 tax filing season today and is accepting and processing federal individual tax year 2024 returns.

During today’s early morning opening, IRS systems have already received millions of tax returns from across the nation for processing.

The IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the Tuesday, April 15 federal deadline. More than half of all tax returns are expected to be filed this year with the help of a tax professional, and the IRS urges people to use a trusted tax pro to avoid potential scams and schemes.

Taxpayers residing in a federally declared disaster area may have additional time to file and pay federal taxes.

Get free help preparing and filing taxes electronically

Taxpayers can visit IRS.gov to get answers to tax questions. IRS.gov is the quickest way for taxpayers to get help. The Interactive Tax Assistant (ITA) is a tool that provides answers to several tax law questions specific to individual circumstances. Based on input, it can determine a taxpayer’s filing status, if a person should file a tax return, if someone can be claimed as a dependent, if a type of income is taxable, if a filer is eligible to claim a credit or if an expense can be deducted.

The IRS encourages people to file their tax returns electronically and choose direct deposit for more secure and faster refunds. According to Treasury’s Bureau of the Fiscal Service, paper refund checks are 16 times more likely to have an issue, like the check being lost, misdirected, stolen or uncashed. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information.

Free tax filing options

The IRS offers free online and in-person tax preparation options for eligible taxpayers through IRS Free File, IRS Direct File and Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

IRS Free File. Taxpayers with income of $84,000 or less last year can use IRS Free File Guided Tax Software now through Oct. 15. IRS Free File Fillable forms, a part of this program, is available at no cost to any income level and provides electronic forms that people fill out and e-file themselves, also at no cost.

Direct File. Now open in 25 participating states, taxpayers can use Direct File to file online directly with the IRS for free. It is a free web-based service – available in English and Spanish – that works on mobile phones, laptops, tablets or desktop computers. It guides taxpayers through a series of questions to prepare their federal tax return step-by-step. Direct File automatically guides taxpayers to state tools to complete their state taxes. Get help from IRS customer service representatives through a live chat feature in English and Spanish. Interested taxpayers can go to directfile.irs.gov, where they can determine if they are eligible.

Volunteer Income Tax Assistance (VITA). The VITA program offers free tax help to people who generally make $67,000 or less, persons with disabilities and taxpayers whose preferred language is not English. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals.

In addition to VITA, the Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors.

MilTax. This is a Department of Defense program available to members of the military and some veterans with no income limit. MilTax generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns.

Most refunds issued in less than 21 days: EITC refunds for many available by March 3

The easiest way to check a refund’s status is by using Where’s My Refund? on IRS.gov or the IRS2Go app.

Many factors can affect refund timing after the IRS receives a tax return. Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer.

Under the federal Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) refunds before mid-February. Where’s My Refund? should show an updated status by February 22 for most early EITC/ACTC filers. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by March 3 if they chose direct deposit and there are no other issues with their tax return.

Report taxable income; don’t file before receiving key documents

People should report all taxable income on their tax return and wait to file until they receive all of their income and informational documents. Taxpayers may receive various income and information statements such as Forms 1099 from banks or other payers, unemployment compensation, dividends, pensions, annuities or retirement plan distributions. Taxpayers receiving Forms 1099-K, for payments on sale of goods and services through an online marketplace or payment app, can visit What to do with Form 1099-K to help them figure and report the correct amount of income on their tax return.

Choose a trusted tax professional

More than half of taxpayers turn to a tax professional for help filing a tax return. While most tax preparers deliver exceptional and professional service, selecting the wrong preparer can lead to financial harm.

Taxpayers should review the tips for choosing a tax preparer and learn how to avoid unethical “ghost” return preparers who don’t sign or include a valid preparer tax identification number (PTIN) on every tax return they prepare. Taxpayers can also use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find trusted professionals. The IRS also reminds taxpayers that choosing someone affiliated with a recognized national tax association is always a good option. Tax professionals accepted into the IRS electronic filing program are authorized IRS e-file providers, qualified to prepare, transmit and process electronically filed tax returns.

Be aware of tax scams

Be aware of scammers, who can become more active during tax season. They will attempt to mislead people about tax refunds, credits and payments. They pressure people for personal, financial, employment information or money.

Watch out for:

  • A big payday. If it sounds too good to be true, it probably is. Bad tax advice on social media may convince people to lie on tax forms or mislead them about credits they can claim.
  • Demands or threats. Impersonators want people to pay “now or else.” They threaten arrest or deportation. They don’t let people question or appeal the amount of tax they owe.
  • Odd or misspelled website links. Odd or misspelled web links can take people to harmful sites instead of IRS.gov.

Tax-related identity theft occurs when someone uses stolen personal information, including Social Security numbers, to file a tax return claiming a fraudulent refund. If a person suspects they are a victim of identity theft, they should continue to pay their taxes and file their tax return, even if they must file a paper return. Visit Identity Theft Central to find out more.

Know the signs of identity theft

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone and email to set up individuals, businesses, payroll and tax professionals. Check out the latest consumer alerts and read more about the most recent tax related scams identified by the IRS.

More help is now available

The IRS also provides taxpayers help in-person at Taxpayer Assistance Centers nationwide.

Some improvements taxpayers will see during the 2025 filing season are:

IRS Individual Online Account. The IRS continues to add more functionality to this important tool. Individuals can create or access their IRS Online Account at Online account for individuals. With an IRS Online Account, people can:

  • View key details from their most recent tax return, such as adjusted gross income.
  • Request an Identity Protection PIN.
  • Get account transcripts, to include wage and income records.
  • Sign tax forms like powers of attorney or tax information authorizations.
  • View and edit language preferences and alternative media.
  • Receive and view over 200 IRS electronic notices.
  • View, make and cancel payments.
  • Set up or change payment plans and check their balance.

New scam alert. To help protect taxpayers against emerging threats, there’s a new banner on the Online Account homepage that alerts taxpayers of potential scams and schemes, along with a link to their Digital Notices and Letters page to view correspondence sent to them from the IRS. The feature helps to educate taxpayers on common scams and fraudulent efforts to steal taxpayer information and provide taxpayers with more ability to validate the legitimacy of IRS communications.

Redesigned notices. The IRS successfully redesigned 284 notices in 2024, exceeding the agency’s 200 notice goal. It is important to note that 200 notices were redesigned and deployed in 2024 and an additional 84 redesigned notices are in line to be deployed in 2025. All notices will be added to Individual Online Account so taxpayers receiving a specific letter can see it.

Mobile-adaptive tax forms. Taxpayers can now access 67 forms on cell phones and tablets. The most recent forms feature “save and draft” capabilities, which allow the taxpayer to start a form, save it and return to it later. The addition of save and draft allows for future capabilities, including the ability for multiple spouses to sign a form.

Virtual assistants to help with refunds and other questions. Whether a taxpayer uses an online tool or calls the IRS, they will experience upgraded help features. During filing season 2025, the IRS will offer voicebot services to all taxpayers calling the IRS for refund information. The voicebot is available in English and Spanish and has helped thousands of callers without the need to wait for the next available representative. Taxpayers will have to authenticate their identity to gain access to their refund information by providing select information from their tax return.

Last year the IRS began using online chatbots for various functions. These chatbots use either guided help through choice buttons or an open text box for a customized question. The chatbots use natural language processing and understanding to interpret the input from the taxpayer to provide an appropriate response. To launch the chatbot, the taxpayer simply clicks on the “Chat” button in the lower right corner of the webpage. Currently taxpayers can use chatbots from eight webpages.

Source: IRS-2025-18, Jan. 27, 2025


24 de January de 2025
112982-1280x720.jpg

The Internal Revenue Service and partners in the Coalition Against Scam and Scheme Threats (CASST) today released changes for the 2025 filing season designed to help protect taxpayers from becoming victims of a scam or scheme and preventing tax professionals from having their credentials compromised.

The changes to protect taxpayers include a new form involving the Fuel Tax Credit that’s designed to make it harder for well-meaning taxpayers to be misled into claiming the credit by promoters. This specialized credit that’s been promoted on social media is designed for off-highway business and farming use. Taxpayers need a business purpose and a qualifying business activity such as running a farm or purchasing aviation gasoline to be eligible for the credit. Most taxpayers don’t qualify for this credit.

The IRS is also stepping up review on a variety of “other withholding” claims on Form 1040 that have been targets of scammers and schemers. And the IRS is reaching out to taxpayers who have potentially been using “ghost preparers” to prepare tax returns. These preparers don’t identify themselves on the tax return, which is a red flag for taxpayers to be misled into a scam or scheme.

Convened at the request of IRS Commissioner Danny Werfel, the CASST task force of federal and state tax agencies, software and financial companies, as well as key national tax professional associations, agreed to a new public private partnership in August focused on scams and schemes.

“Since its creation, this special group across the tax community has been working to take extra steps to protect taxpayers and the tax professional community,” Werfel said. “This effort includes expanding outreach and education on emerging scams, developing innovative approaches to identify potentially fraudulent returns at the point of filing and creating infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems. CASST partners have already worked together on important changes to protect taxpayers and tax professionals in the 2025 filing season, but this needs to be an ongoing effort given the continued expansion and threats from scams.”

CASST accomplishments that will improve the 2025 tax season
Highlights of the coalition’s accomplishments include:

  • New Fuel Tax Credit Statement – The IRS developed the “Statement Supporting Fuel Tax Credit (FTC) Computation – 1”, to educate taxpayers on eligibility requirements for claiming the credit.
    Here are key details:

    • Who should file the new statement? Individuals filing Form 1040, U.S. Individual Income Tax Return, for tax year 2024 who claim nontaxable use of gasoline, aviation gasoline, undyed diesel fuel or undyed kerosene on Form 4136, Credit For Federal Tax Paid On Fuels.
    • Where is the new statement located? “Statement Supporting Fuel Tax Credit (FTC) Computation – 1” is located in the instructions for Form 4136 for tax year 2024. The statement should be completed and attached to Form 1040 with Form 4136.
    • What information is the statement asking for? The statement asks for the business information, including name and Employer Identification Number or EIN (if applicable), and make, model and type of machinery or vehicle for which the fuel was purchased. The taxpayer will also be required to complete a table to show the relationship between the estimated purchase price of the fuel compared to the actual cost and gallons reported as being purchased on Form 4136. The IRS used Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA), when determining the average price of fuel for the year.
    • Should documentation to support the claim be included with the statement? No. Taxpayers should not include any receipts or explanation with their tax return but maintain them with their books and records for their tax return. Taxpayers may be asked at a later time to submit proof, such as receipts, of the actual costs paid for each fuel type.
    • What happens if the Fuel Tax Credit is claimed erroneously? Claims and filings that are based upon a position identified as frivolous by the IRS or reflect a desire to delay or impede tax administration are subject to the Internal Revenue Code (IRC) 6702(a) penalty. This penalty is $5,000 for each return (or copy of return) claiming an improper credit as defined above. The penalty is assessed against each spouse on a married filing joint return. (Notice 2010-33)
  • Increased Review of “Other Withholding” Claims – To protect taxpayers, the IRS is increasing its review of “Other Withholding” on Line 25C of Form 1040. To reduce potential delays in verifying the “Other Withholding” claimed, taxpayers are encouraged to attach the supporting documentation to their return. Key forms covered by Line 25c, “Other Withholding”, include Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding; Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax; Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests; Form W2G, Certain Gambling Winnings; Form 8959, Additional Medicare Tax; and Schedule K1, Partner’s Share of Income, Deductions, Credits, etc.
  • Increased “Ghost Preparer” Education – During the 2025 filing season, the IRS will send letters to taxpayers whose tax returns appear to have been completed by a paid tax preparer who did not sign or include their preparer tax identification number (PTIN) on the tax return. The letters are meant to educate the taxpayer about “ghost preparers” and to help the IRS identify those who are being paid to prepare returns and are not signing or including their PTIN on the return. The IRS continues to see instances where ghost preparers dupe taxpayers into filing inaccurate tax returns for bigger refunds. The preparers later vanish like a ghost, leaving the taxpayer exposed to inaccurate claims.
  • Preparer Tax Identification Numbers (PTIN) – During the 2025 filing season, the IRS will be working to add more protections for tax professionals. The protections will be aimed at protecting the tax professional’s electronic filing identification number or EFIN and PTIN from unauthorized use; more details on these will be available in the near future.

Stay vigilant
Threats are present year-round, but the IRS and CASST members anticipate that misinformation spread by influencers and outright scammers will intensify around the 2025 tax season in an effort to persuade the public to take their bad advice.

Instead of looking to ill-informed information on social media or from shady tax return preparers presenting themselves as reputable tax professionals, a better option for taxpayers is to learn what scams are trending and to speak to a trusted tax professional.

Additional information on tax scams can be found at Tax scams, and victims of tax-related identity theft can visit Identity Theft Central.

Other reliable tax information is available from the following trusted sources:

Pass it on
The IRS encourages the public to report improper and abusive tax schemes, as well as tax return preparers who knowingly prepare improper returns, including “ghost preparers.”

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or Preparers PDF, and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:
Internal Revenue Service
Lead Development Center MS7900
1973 N. Rulon White Blvd
Ogden, UT 84404
Fax: 877-477-9135

Alternatively, taxpayers and tax professionals may report the information to the IRS Whistleblower Office for possible monetary award.
Taxpayers can also report scams to the Treasury Inspector General for Tax Administration or the Internet Crime Complaint Center. The Report phishing and online scams page at IRS.gov provides complete details.

Source: IRS-2025-12, Jan. 14, 2025