Tax News

Taxes are constantly in the news! Check out the latest tax headlines from the United States.

U.S. IRS Federal Income Tax News

U.S. Treasury Eliminates Tax Penalties for Taxpayers Confused About Withholding - posted March 26, 2019

Due to tax withholding confusion related to Tax Reform, the U.S. Treasury is cutting tax penalties for taxpayers who did not have enough tax withheld throughout 2018 via paycheck withholding or estimated tax payments. This applies to taxpayers who paid at least 80% of their tax liabilities. The Treasury will release a form for these taxpayers to attach to their 2018 Tax Returns exempting them from penalties. Taxpayers that already filed their returns and paid the penalties may request a refund from the IRS for the amounts they paid to the IRS. Learn More About IRS Tax Penalties

2015 Tax Refunds Worth $1.4 Billion Waiting to Be Claimed - posted March 13, 2019

The IRS reported that there are unclaimed tax refunds worth almost $1.4 billion for about 1.2 million taxpayers who have not filed a 2015 Tax Return. In order to claim the refunds, these taxpayers must paper file a 2015 Tax Return (previous year tax returns can no longer be e-filed) by April 15, 2019 (April 17, 2019 for taxpayers who live in Massachusetts and Maine) See More Deadlines to File Tax Returns for Unclaimed Refunds

House Democrats Propose to Extend 2018 Tax Return Deadline - posted March 11, 2019

Democrat House Representatives Sean Casten and Lauren Underwood introduced The Taxpayer Extension Act, which proposes to extend the April 15, 2019 Federal Tax Return deadline to May 20, 2019. This provides 35 additional days for taxpayers to file their returns due to recent tax reform and the government shutdown. They suggest that the extended deadline would give the IRS more time to prepare their filing systems to avoid computer system breakdowns on Tax Day. Find Current 2018 Tax Return Filing Deadlines

Over 46,000 IRS Employees Reported Back to Work Without Pay - posted January 17, 2019

Though the government shutdown is still ongoing, the IRS called more than 46,000 employees back to work to process tax refunds. They will also answer phone calls in the coming days, but taxpayers should expect longer wait times. No audits or identity theft cases will be reviewed at this time. The IRS recommends preparing and e-filing 2018 Tax Returns to process refunds faster and minimize errors. Learn How to e-File Your Tax Return Now

IRS Announces Start of Tax Filling Season, Will Issue Tax Refunds Despite Government Shutdown - posted January 8, 2019

The IRS confirmed that they will be open for accepting and processing 2018 Tax Returns on January 28, 2019. It also announced that there will be no delay in issuing refunds to taxpayers despite the government shutdown. See 2018 Tax Return Filing Deadlines

House Panel Releases New Tax Bill - posted November 28, 2018

The House Ways and Means Committee released the Retirement, Savings, and Other Tax Relief of 2018 tax bill. The bill proposes to renew tax breaks that expired on December 31, 2017 (i.e. the Tuition and Fees Deduction) and provide retirement saving tax help (i.e. eliminate required minimum distributions for savers with less than $50,000 in retirement plans). Since it is not legislation yet, some of these changes might affect 2018 tax returns if Congress passes it. Read New House Tax Bill

30 Million Americans Not Withholding Enough Taxes from Paychecks - posted August 2, 2018

According to a report by the Government Accountability Office, over 2 in 10 taxpayers will owe money to the IRS next year when they file their 2018 Tax Returns. Learn more about withholding report

IRS Begins Sending Information of U.S. Citizens With Unpaid Tax Debt to State Department for Passport Denial - posted July 18, 2018

The IRS reported that 362,000 Americans with over $51,000 in unpaid taxes will be denied for passports or passport renewals as a result of Congress passing the Fixing America's Surface Transportation (FAST) Act in December 2015. Learn more about passports and tax debt

IRS Working on New Income Tax Form 1040 for Tax Year 2018 or Tax Season 2019 - posted June 29, 2018

The IRS released a draft of the 2018 1040 tax form based on the Tax Cuts and Jobs Act. The shorter form is half the size of the current 1040 form and combines all three current 1040 forms (1040, 1040-A, and 1040-EZ). During the 2019 Tax Season (Tax Year 2018), this will simplify the 1040 form so that all taxpayers can use the same form. The IRS will still obtain tax information (income, deductions etc.) from each taxpayer needed to determine their tax liability or refund. This new 1040 Form uses a “building block” approach and the form can be supplemented with additional tax schedules as needed. Some lines for several tax credits and deductions (i.e. deduction for teacher expenses and energy tax credits) are moved to one of six new schedules that can be attached to the 1040. See new 1040 form

National Taxpayer Advocate Releases IRS Private Tax Debt Collectors Report - posted June 22, 2018

As a result of the IRS reactivating a private tax debt collection program, the National Taxpayer Advocate released a report stating that taxpayers assigned to the program are entered into installment programs that they cannot afford. The Advocate also reports that the program costs the U.S. Treasury more money that it collects from the program. Due to increased IRS impersonating phone scams, the IRS warns taxpayers that they will first contact them via a letter in the mail first. Learn more about IRS scam calls

IRS Releases Drafts for 2019 W-4 Form and Instructions - posted June 19, 2018

The IRS released a draft of the 2019 W-4 Form that is based on tax code updates from the Tax Cuts and Jobs Act. The 2019 W-4 would be less than two pages. Efile.com is prepared to help you complete this new W-4. Details on 2019 W-4

U.S. State Income Taxes

Minnesota Might Have Messy Tax Season Due to Updated Federal Tax Code - posted June 22, 2018

The Minnesota Department of Revenue did not update their tax code to align with the current federal tax code. CPA's in the state predict that this would result in more taxpayers claiming standard deductions on their federal and state returns. Learn more about Minnesota income taxes

Rhode Island Passes Bill to Require Presidential Candidates to Release Returns - posted June 22, 2018

The Rhode Island Senate passed a bill requiring presidential and vice presidential candidates to release five years of tax returns to stay on state ballots. While some senators state that releasing tax returns would disclose any possible conflicts of interest, others think this is unnecessary if Rhode Island lawmakers are not required to release returns. More on historical 1040 tax forms

Updated Federal Tax Code May Give Virginia Millions of Dollars in Revenue - posted June 19, 2018

According to Nicole Kaeding at the Tax Foundation, taxpayers may claim fewer state deductions due to the Virginia standard deduction restriction and updated federal tax code. State officials predict that the government would receive about $300 million. Learn more about Viriginia income taxes

Tax Statistics, Tax History and other Tax Facts