Comprotax

02/14/2024

Inside This Issue
Presidents Day period marks peak time for IRS phone lines; first try IRS online tools and resources for help

WASHINGTON — With the 2024 filing season in full swing, the Internal Revenue Service encourages taxpayers to visit IRS.gov and use online tools to get answers quickly and avoid phone delays during the anticipated peak demand for IRS phone lines around the Presidents Day holiday.

New this year, people can easily find step-by-step help to file their personal federal income tax return. The IRS also has a variety of information available on IRS.gov to help taxpayers, including a special “free help” page.

“We’ve worked hard to provide better taxpayer service for people this filing season with more options to reach the IRS in convenient ways,” said IRS Commissioner Danny Werfel. “We want taxpayers to have access to the help they need around the clock. IRS.gov’s expanded tools and information make that easier for taxpayers, especially during this peak period for IRS phone lines around Presidents Day.”

Presidents Day holiday marks busy time for calls to the IRS

Presidents Day weekend, when many people prepare their taxes, historically marks a peak period for IRS phone lines. During the two-week February period following Presidents Day, the IRS recommends turning first to the self-help tools available online on IRS.gov to avoid delays.

Do you know 98% of taxpayers file their federal income tax returns electronically?

The IRS encourages people to file their tax returns electronically and choose direct deposit for faster refunds. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information.

The IRS offers free online and in-person tax preparation options for qualifying taxpayers through the IRS Free File program and the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

Taxpayers with income of $79,000 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.

Through a network of community partnerships, the VITA and TCE programs offer free tax return preparation to eligible people in the community by IRS certified volunteers.

The Direct File pilot gives eligible taxpayers a new choice to file their 2023 federal tax returns online, for free, directly with the IRS. It will be rolled out in phases and is expected to be widely available in mid-March. Find more about Direct File pilot eligibility, scope and the 12 participating states on Direct File.

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

Do you know you can get access to your personal tax account information by creating or signing into your IRS Online Account?

Individuals with Social Security numbers or Individual Taxpayer Identification Numbers (ITIN) can securely access their IRS Online Account and get the latest information about their federal tax account.

With an IRS online account they can:

Get virtual assistance for balance due and payment-related questions.
View balance, payment history and create a payment plan.
Make a payment and schedule or cancel future payments.
Manage their communication preferences.
Access their tax records, including their Adjusted Gross Income, from their most recently filed tax return.
View, approve and sign authorizations from their tax professional.
Validate and save bank accounts.
Do you know you can use the “Where’s My Refund?” tool on IRS.gov to check the status of your refund?

The “Where’s My Refund?” tool on IRS.gov has the most up-to-date information available about a taxpayer’s refund status. Recent improvements to the “Where’s My Refund?” tool allow taxpayers to see more detailed refund status messages in plain language, reducing the need for taxpayers to call the IRS.

Most EITC or Additional Child Tax Credit (ACTC) related funds should be available in bank accounts or on debit cards by February 27 if taxpayers chose direct deposit and there are no other issues with their tax return. Taxpayers can check Where’s My Refund? for their personalized refund date. Where's My Refund? will be updated with projected deposit dates for most early EITC/ACTS refund filers by February 17.

Do you know you can use the Interactive Tax Assistant on IRS.gov to answer tax law questions specific to your individual circumstances?

The Interactive Tax Assistant (ITA) tool provides answers to several tax law questions specific to individual circumstances. Based on input, ITA determines if a person should file a tax return, their filing status, if someone is an eligible dependent, if a type of income is taxable, if a filer is eligible to claim a credit or if an expense is deductible.

Do you know you can find out what tax paperwork and records you need to file an accurate and complete return on IRS.gov?

Taxpayers should have all their important and necessary documents before preparing their return. This will help file a complete and accurate tax return. Errors and omissions slow down tax processing, including refund times.

If a taxpayer receives Form 1099-K, they should visit What to do with Form 1099-K to help them determine if that money should be reported as income on their federal tax return.

Do you know the Earned Income Tax Credit (EITC) helps low-to moderate-income workers and families get a tax break?

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. The IRS estimates that about one in five EITC eligible taxpayers don’t claim this valuable credit. If a taxpayer qualifies, they can use the credit to reduce the taxes they owe – and maybe increase their refund.

The Earned Income Tax Credit Assistant on IRS.gov can help individuals determine:

If they are eligible to claim the EITC.
If they have any qualifying children or relatives.
The estimated amount of their credit
The filing status they should use.
Do you know an Identity Protection PIN (IP PIN) is a proactive way to protect you against tax-related identity theft?

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.

An Identity Protection PIN (IP PIN) is a six-digit number known only to the taxpayer and the IRS that prevents someone else from filing a tax return using their Social Security number or Individual Taxpayer Identification Number. It helps the IRS verify a person’s identity when they file their electronic or paper tax return. The fastest way to receive an IP PIN is by using the Get an IP PIN online tool. If someone wishes to get an IP PIN and they don’t already have an account on IRS.gov, they must register to validate their identity.

Do you know you can visit IRS.gov to find a reputable tax professional?

The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find a preparer who is skilled in tax preparation and accurately files income tax returns.

Most tax return preparers provide outstanding and professional tax service. However, choosing the wrong tax return preparer hurts taxpayers financially every year. Be sure to check tips for choosing a tax preparer and how to avoid unethical "ghost" return preparers.

Tax professionals are required to list their preparer tax identification number (PTIN) and sign the return. Although the tax return preparer always signs the return, the taxpayer is ultimately responsible for the accuracy of every item reported on their return.

Do you know the Tax Withholding Estimator can help you determine the right amount of tax to have withheld from your paycheck?

Taxpayers should check their tax withholding every year, especially if they experience a major life change. The Tax Withholding Estimator tool allows taxpayers to estimate the federal income tax they want their employer to withhold from their paycheck. By using the Tax Withholding Estimator, taxpayers can adjust their tax withheld up front, so they can protect against having too little tax withheld and prevent an unexpected tax bill or penalty at tax time next year. Taxpayers should submit a new Form W-4 to their employer to make any adjustments.

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

01/31/2024

WASHINGTON — With the start of filing season the Internal Revenue Service today reminded employers of the Jan. 31 deadline to file Forms W-2 and other wage statements with the Social Security Administration (SSA).

Filing these documents timely prevents late-filing penalties for employers, helps employees file their income tax returns and prevents tax fraud.

Employers must file copies of their 2023 Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the SSA by Jan. 31, whether filing electronically or by paper forms.

Employers must also provide copies B, C and 2 of Form W-2 to their employees by Jan. 31. For more information on filing Form W-2, see General Instructions for Forms W-2 and W-3.

The Jan. 31 deadline also applies to Forms 1099-NEC filed with the IRS to report non-employee compensation to independent contractors. Employers and payers can review the Instructions for Forms 1099-MISC and 1099-NEC for details and other due dates.

Employer Identification Numbers
Employers need to make sure the employer identification number (EIN) on their wage and tax statements (Forms W-2, W-3, etc.) and their payroll tax returns (Forms 941, 943, 944, etc.) match the EIN the IRS assigned to their business.

Do not use a Social Security number (SSN) or Individual Taxpayer Identification number (ITIN) on forms that ask for an EIN, and never truncate EINs or SSNs on any forms.

Extensions
Employers may request a 30-day extension to file Forms W-2 with SSA by submitting Form 8809, Application for Extension of Time to File Information Returns, by Jan. 31. Additionally, extensions of time to furnish Forms W-2 to employees must also occur by Jan. 31.

For detailed information and instructions on how to file an extension of time to furnish Forms W-2 to employees or to request a 30-day extension with the SSA, see Form 8809 and General Instructions for Forms W-2 and W-3.

Electronic filing
Beginning Jan. 1, 2024, the electronic filing threshold for information returns reduced from 250 to 10 for filing season 2024. Filers need to combine all information return types they file to determine if they meet the 10-return threshold and if the requirement to file electronically applies to them.

The IRS offers a free e-file service for the Form 1099 series, the Information Returns Intake System (IRIS) Taxpayer Portal. IRIS is a web-based platform that is accurate, convenient, easy to use, secure and doesn't require any additional software. Learn more about e-filing information returns with IRIS and its features.

For help with filing information returns electronically, review Publication 1220, Specification for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G and the Filing Information Returns Electronically (FIRE) webpage.

E-filing is the most secure and accurate method to file returns and saves taxpayers time and prevents delays in processing returns.

01/27/2024

How can ComproTax Orlando serve you today?

01/27/2024

Form 944 vs. Form 941

Every employer who pays compensation for services performed by employees must report to the IRS the wages paid. Additionally, employers must report related employment taxes including income tax withholding, social security tax, Medicare tax and, if applicable, Additional Medicare Tax. Generally, employers must report wages, tips and other compensation paid to an employee by filing Form 941, Employer’s Quarterly Federal Tax Return. But small employers (those with annual employment tax liabilities of $1,000 or less) may instead be eligible to file Form 944, Employer's Annual Federal Tax Return, if approved by the IRS.

Eligibility to File Form 944

If your employment taxes for the calendar year will be $1,000 or less, you could be eligible to file Form 944. Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.

When applying for your Employer Identification Number (EIN), you will receive a notice listing the employment tax forms you are required to file. Form 944 cannot be filed unless you receive written notification that you are eligible to do so. If you are unsure of your current filing requirement, call 800-829-4933 (toll free) or 267-941-1000 (toll call).



In general, if the IRS has notified you to file Form 944, you must file Form 944 instead of quarterly Forms 941 to report certain amounts, including:

Wages you have paid
Tips your employees reported to you
Federal income tax you withheld
Both (employer and employee) shares of social security and Medicare taxes
Once your annual employment tax liability exceeds $1,000, the IRS will notify you that you're no longer eligible to file Form 944 in future years and that you must file Form 941 quarterly. However, until you receive the notice, continue to file Form 944 annually.

If you haven't received notification to file Form 944 for 2024 but estimate your employment tax liability for calendar year 2024 will be $1,000 or less and would like to file Form 944 instead of Forms 941, you can contact the IRS to request to file Form 944 for 2024. To file Form 944 for calendar year 2024, you must call the IRS at 800-829-4933 (267-941-1000 (toll call) if you're outside the United States) between January 1, 2024, and April 1, 2024, or send a written request to the correct mailing address postmarked between January 1, 2024, and March 15, 2024. The IRS will send you a written notice that your filing requirement has been changed to Form 944. If you don't receive this notice, you must file quarterly Forms 941 for calendar year 2024.

Form 944 is due by Jan. 31

For 2023, file Form 944 by Jan. 31, 2024. However, if you made timely deposits in full payment of your taxes due for the year, you may file the return by Feb. 12, 2024.

For further information, see Instructions for Form 944 (2023).

Series summary

Today concludes our week-long series. The main goal of this series was to provide general guidelines on reporting, filing and deposit requirements of an employer.

01/22/2024

The IRS Never Goes Phishing

Phishing is the practice of sending fraudulent communications disguised to appear to be from a reputable source. These attacks, usually through email but increasingly through text messages, are an attempt to try to steal personal and financial information.

The IRS does not request personal or financial information from taxpayers by email. This includes any type of electronic communication, such as text messages and social media channels.

If you receive a suspicious IRS-related communication:

Don’t reply to the sender.
Don't click, save, or open any attachments. They can contain malicious code that may infect your computer or mobile phone.
Don't click on any links. Visit our identity protection page if you clicked on links in a suspicious email or website and entered confidential information.
Immediately forward the entire message, with the full email headers, to [email protected]. Don't forward scanned images because this removes valuable information.
Delete the original email.

10/02/2022

Out of many, one people..!

12/28/2021

Much love and blessings from the ComproTax Orlando TEAM. Peace and blessings!

ComproTax Orlando and the TEAM sends love, abundance, health, joy and happiness to you now and always. Peace!

07/29/2021

IRS cautions taxpayers about fake charities and scammers targeting immigrants

The IRS continues to observe criminals using a variety of scams that target honest taxpayers. In some cases, these scams will trick taxpayers into doing something illegal or that ultimately causes them financial harm. These scammers may cause otherwise honest people to do things they don't realize are illegal or prey on their good will to steal their money.

Here are a couple of this year's Dirty Dozen scams.

Fake charities
Taxpayers should be on the lookout for scammers who set up fake organizations to take advantage of the public's generosity. Scammers take advantage of tragedies and disasters.

Scams requesting donations for disaster relief efforts are especially common over the phone. Taxpayers should always check out a charity before they donate, and they should not feel pressured to give immediately.

Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return by reducing the amount of their taxable income. However, to receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the IRS Tax Exempt Organization Search tool. It's also important for taxpayers to remember that they can't deduct gifts to individuals or to political organizations and candidates.

Here are some tips to help taxpayer avoid fake charity scams:

Individuals should never let any caller pressure them. A legitimate charity will be happy to get a donation at any time, so there's no rush. Donors are encouraged to take time to do their own research.
Confirm the charity is real. Potential donors should ask the fundraiser for the charity's exact name, website and mailing address, so they can confirm it later. Some dishonest telemarketers use names that sound like well-known charities to confuse people.
Be careful about how a donation is made. Taxpayers shouldn’t work with charities that ask for donations by giving numbers from a gift card or by wiring money. That's a scam. It's safest to pay by credit card or check — and only after researching the charity.
For more information about fake charities see the Federal Trade Commission web site.

Immigrant fraud
IRS impersonators and other scammers often use threats and intimidation to target groups with limited English proficiency.

The IRS phone impersonation scam remains a common scam. This is where a taxpayer receives a phone call threatening jail time, deportation or revocation of a driver's license from someone claiming to be with the IRS. Recent immigrants often are the most vulnerable. People need to ignore these threats and not engage the scammers.

A taxpayer’s first contact with the IRS will usually be through mail, not over the phone. Legitimate IRS employees will not threaten to revoke licenses or have a person deported. These are scare tactics.

07/27/2021

Tax tips for students working summer jobs

During the summer many students focus on making money from a summer job. They may want to gain work experience, earn some spending money or help pay for college. Here are some facts all student workers should know about summer jobs and taxes.

Not all the money they earn will make it to their pocket because employers must withhold taxes from their paycheck.

New employees: Employees – including those who are students – normally have taxes withheld from their paychecks by their employer. When anyone gets a new job, they need to fill out a Form W-4, Employee's Withholding Allowance Certificate, and submit it to their employer. Employers use this form to calculate how much federal income tax to withhold from the new employee’s pay. The Withholding Estimator on IRS.gov can help a taxpayer fill out this form.

Self-employment: Students who take on jobs like baby-sitting, lawn care or gig economy work are generally self-employed. Money earned from self-employment is taxable, and these workers may be responsible for paying taxes directly to the IRS. One way they can do this is by making estimated tax payments during the year.

Tip income: Students who earn tips as part of their summer income should know tip income is taxable. They should keep a daily log to accurately report tips. They must report cash tips to their employer for any month that totals $20 or more.

Payroll taxes: This tax pays for benefits under the Social Security system. While students may earn too little from their summer job to owe income tax, employers usually must still withhold Social Security and Medicare taxes from their pay. If a student is self-employed, Social Security and Medicare taxes may still be due and are generally paid by the student.

Reserve Officers' Training Corps pay: If a student is in an ROTC program, and receives pay for activities such as summer advanced camp, it is taxable. Other allowances the student may receive – like food and lodging – may not be taxable. The Armed Forces' Tax Guide on IRS.gov provides details.

07/15/2021

Things people do during the summer that might affect their tax return next year

It's summertime and for many people, summertime means change. Whether it’s a life change or a typical summer event, it could affect incomes taxes. Here are a few summertime activities and tips on how taxpayers should consider them during filing season.

Getting married
Newlyweds should report any name change to the Social Security Administration. They should also report an address change to the United States Postal Service, their employers, and the IRS. This will help make sure they receive documents and other items they will need to file their taxes.

Sending kids to summer day camp
Unlike overnight camps, the cost of summer day camp may count towards the child and dependent care credit.

Working part-time
While summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return. They’ll need to file early next year to get a refund for taxes withheld from their checks this year.

Gig economy work
Taxpayers may earn summer income by providing on-demand work, services or goods, often through a digital platform like an app or website. Examples include ride sharing, delivery services and other activities. Those who do are encouraged to visit the Gig Economy Tax Center at IRS.gov to learn more about how participating in the sharing economy can affect their taxes.

Normally, employees receive a Form W-2, Wage and Tax Statement, from their employer to account for the summer’s work. They’ll use this to prepare their tax return. They should receive the W-2 by January 31 next year. Employees will get a W-2 even if they no longer work for the summertime employer.

Summertime workers can avoid higher tax bills and lost benefits if they know their correct status. Employers will determine whether the people who work for them are employees or independent contractors. Independent contractors aren’t subject to withholding, making them responsible for paying their own income taxes plus Social Security and Medicare taxes.