2022 – 02/09 The number of math error notices sent to taxpayers by the IRS increased exponentially in 2021, largely because of adjustments relating to the Recovery Rebate Credit (RRC). IRS data related to this fact was presented at a recent American Bar Association conference. Last year, there were nearly 14.6 million math errors reported compared to less than 1.3 million in 2020. Almost 11 million were related to the Recovery Rebate Credit, which eligible taxpayers can claim if they didn’t receive an Economic Impact Payment. The National Taxpayer Advocate recommended that math error notices explain in a simple manner why adjustments were made and inform taxpayers of their deadlines to request abatement.
Similar Posts
Advance Premium Tax Credit
2020- 12/18 The IRS announced that the U.S. Centers for Medicare & Medicaid Services (CMS), which verifies if an individual is eligible for payment of the advance premium tax credit (APTC), is deferring the verification process until early 2021. Individuals who are automatically re-enrolled in the Federal Health Insurance Exchange plan through HealthCare.gov will continue…
Timely Filing: Do You Want the IRS to File Your Tax Return?
2022 – 05/04 When taxpayers fail to timely file tax returns, the IRS may do it for them. One engineer had substantial income from various entities. For several years, he filed returns late or not at all and didn’t cooperate with the IRS. The IRS used third-party financial records to reconstruct his income and assess…
Teachers: Expenses May be Tax Deductible
2021 – 07/21 Schools will soon be reopening for the fall, and with that comes a nice tax deduction for certain educators. Eligible K-12 teachers, instructors, counselors, principals and aides who make qualified, unreimbursed purchases out of their own pockets can deduct up to $250 of the costs on their tax returns even if they…
Many tax amounts affecting businesses have increased for 2021
2021 – 02/08 A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a new law was enacted at the end of 2020. Here’s a rundown…
Unemployment Compensation Tax Refunds
2021 – 07/16 Direct deposit refunds began rolling out on July 14 to millions of taxpayers who overpaid taxes on their 2020 unemployment compensation. Paper check refunds are also being mailed out. Generally, unemployment compensation is taxable income. In response to COVID-19, the American Rescue Plan Act allows taxpayers to exclude up to $10,200 in…
Banned from Claiming Certain IRS Tax Credits
2021 – 04/16 Taxpayers who skirt tax rules could be banned by the IRS from claiming certain tax credits, according to the National Taxpayer Advocate (NTA). These taxpayers could lose the ability to claim: the Earned Income Tax Credit, the Child Tax Credit, the American Opportunity Tax Credit and the credit for other dependents. Most…