May 2023 – Larson Accounting Group

22 de May de 2023

WASHINGTON — The Internal Revenue Service submitted a report today to CongressPDF evaluating a Direct File option for taxpayers and is taking steps to begin a pilot project for the 2024 filing season following a directive from the Treasury Department.

The report to Congress, required by the Inflation Reduction Act, evaluated the feasibility of providing taxpayers with the option of a free, voluntary, IRS-run electronic filing system, commonly referred to as “Direct File.”

The report finds that many taxpayers are interested in using a free IRS-provided tool to prepare and file taxes, and that the agency is technically capable of delivering a Direct File program. It also concludes that effective execution of a Direct File program would require sustained budget investment and careful management of the potential program’s operational complexity.

The report focuses on three areas: taxpayer opinions, cost and feasibility. The report also includes an analysis conducted by an independent third party, as required by the statute. The report also lays out the potential benefits and challenges associated with the IRS implementing a Direct File program.

“The IRS is committed to delivering significantly improved services by providing taxpayers with tools, information and assistance to make it easier to comply with their tax filing obligations. Direct File – used by numerous tax jurisdictions around the world – has long been discussed as an option for improving the customer experience for taxpayers in the U.S.,” said IRS Commissioner Danny Werfel. “The IRS review looked at the potential operational and administrative requirements of such a system. Ultimately, the results show there is taxpayer interest in an optional Direct file program and such a program is technically feasible. Any path forward should start with a limited pilot to assess operational factors described in this study.”

As directed by Treasury, the IRS will move to gather further information through the implementation of a scaled Direct File pilot in the 2024 filing season to further assess customer support and technology needs and the ability to overcome the potential operational challenges identified in the report. Additional details on the Direct File pilot will be available in coming months.

The IRS report relied on information from the agency’s Taxpayer Experience Survey (TES), which surveyed thousands of taxpayers on these topics. The IRS also reviewed and incorporated findings from an independently conducted survey by the MITRE Corporation.

The IRS supplemented data from these taxpayer surveys with user research and usability testing that was conducted using a basic internal prototype to better understand first-hand taxpayer perspectives.

Source: IRS-2023-103, May – 2023

by Larson Accounting

9 de May de 2023

WASHINGTON — Although the tax filing deadline has passed, some taxpayers may still need help with a tax concern or have questions about an IRS notice. To help, the IRS is opening many IRS Taxpayer Assistance Centers (TACs) across the nation during a special Saturday opening from 9 a.m. to 4 p.m. on May 13.

The IRS plans to open more than 40 locations in over 25 states, the District of Columbia and Puerto Rico on Saturday to provide additional face-to-face assistance for people who need help.

“IRS employees worked hard this tax season to provide more help for people, and the Saturday hours helped many taxpayers outside of normal business hours,” said IRS Commissioner Danny Werfel. “The special Saturday hours this weekend are part of a larger effort underway as we continue to improve and work on transforming the IRS to serve taxpayers and the nation.”

The IRS has added hundreds of employees to Taxpayer Assistance Centers across the nation following passage of the Inflation Reduction Act last year, and the IRS has reopened or opened more than 25 local TAC offices since last year. The IRS will continue to add more employees at these locations in the months ahead.

Normally, these IRS offices are open during the week, and people should have appointments in advance to receive services. But during these Saturday hours, walk-ins will be accepted for all services routinely offered at an IRS office, except for making cash payments.

Before visiting on Saturday, the IRS encouraged people to visit IRS.gov where they’ll find many online resources that are safe, secure, convenient and may help resolve some issues without a trip. This information is available in multiple languages.

The IRS noted that because appointments aren’t necessary for these special Saturday hours, some locations may see high demand and wait times can be longer than usual. To help with this and avoid delays, the IRS encourages people to plan ahead, review the key tips below and come prepared with needed information. IRS employees will be working hard to serve as many people as quickly as possible.

Services provided

The IRS Contact Your Local Office page lists all services provided at specific TACs.

If someone has questions about a tax bill or IRS audit or they need help resolving a tax problem, they’ll receive assistance from IRS employees specializing in those services. If these employees aren’t available, the individual will receive a referral for these services. IRS Taxpayer Advocate Service employees may also be available to help with some issues.

Professional foreign language interpretation will be available in many languages through an over-the-phone translation service. For deaf or hard of hearing individuals who need sign language interpreter services, IRS staff will schedule appointments for a later date. Alternatively, these individuals can call TTY/TDD 800-829-4059 to make an appointment.

For more information on the special Saturday openings, visit IRS.gov/saturdayhours. For a snapshot of the most requested customer service topics, see Publication 5136, IRS Services GuidePDF.

Come prepared

Individuals should bring the following documents with them:

Current government-issued photo identification,
Social Security cards or individual taxpayer identification numbers (ITINs) for themselves and all members of their household, including their spouse and dependents (if applicable),
Any IRS letters or notices received and related documents,
For identity verification services, two forms of identification and, if filed, a copy of the tax return for the year in question.

During the visit, IRS staff may also request the following information:

A current mailing address,
Proof of bank account information included on a tax return to receive payments or refunds by direct deposit.

Tax return preparation options

While tax return preparation is not a service offered at IRS TACs, help is available through community partners, IRS Free File and MilTax. Anyone who still needs to file a 2022 federal tax return, even though the April 18 tax deadline has passed, can use these free, safe and convenient resources:

Eligible individuals or families can get free help preparing their tax return at open Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find free tax return preparation help, use the VITA Locator Tool or call 800-906-9887.
Any individual or family earning $73,000 or less in 2022 can use tax software through IRS Free File at no cost. There are products in English and Spanish.
MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members, and some veterans, with no income limit through mid-October.

Low Income Taxpayer Clinics, known as LITCs, also may be available to help people.

Help available 24/7 at IRS.gov

The IRS encourages people to explore IRS.gov before traveling to an office. It’s the fastest and easiest way for people to get the help they need.

They can learn about the many self-service tools and resources available to resolve common tax concerns online. Some include IRS identity protection services, requesting Individual Taxpayer Identification Numbers (ITIN), refunds, transcripts and payment options.

Available resources include:

Where’s My Refund?, check refund status and estimated delivery date.
Direct Pay, make tax payments or estimated tax payments for free from a checking or savings account.
Electronic Federal Tax Payment System, individuals or businesses can make all types of federal tax payments.
Online Payment Agreement, set up installment payments to pay taxes owed.
Where’s My Amended Return, track the status of an amended return.
Interactive Tax Assistant and FAQs, get answers to many tax law questions.
All IRS Forms and Publications, find and download current tax forms, instructions and publications. Those without access to the internet can call 800-829-3676 to order tax forms by mail.