Latest Internal Revenue Service News

IRS collects milestone $1 billion in back taxes from high-wealth taxpayers

Jul. 11, 2024 05:11 AM EDT

WASHINGTON (AP) — The IRS announced Thursday that it has collected $1 billion in back taxes from high-wealth tax cheats — a milestone meant to showcase how the agency is making use of the money it received as part of the Biden administration's signature climate, health care, and tax package...

IRS delays in resolving identity theft cases are 'unconscionable,' an independent watchdog says

Jun. 26, 2024 16:22 PM EDT

WASHINGTON (AP) — An independent watchdog within the IRS reported Wednesday that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases with delays that are “unconscionable." Overall, the 2024 filing season went smoothly,...

IRS says 'vast majority' of 1 million pandemic-era credit claims show a risk of being improper

Jun. 20, 2024 18:34 PM EDT

NEW YORK (AP) — The Internal Revenue Service said Thursday a review of 1 million claims for the Employee Retention Credit representing $86 billion shows the “vast majority” are at risk of being improper. The ERC was designed to help businesses retain employees during...

The IRS wants to end another major tax loophole for the wealthy and raise $50 billion in the process

Jun. 17, 2024 15:16 PM EDT

WASHINGTON (AP) — The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the U.S. Treasury Department says. The proposed rule and guidance announced Monday includes plans to essentially stop...

IRS decides people who got money from Norfolk Southern after Ohio derailment won't be taxed on it

Jun. 05, 2024 17:43 PM EDT

Most people who received money from Norfolk Southern in the wake of last year's fiery train derailment in eastern Ohio won't have to pay taxes on millions of dollars in aid payments after all. The Internal Revenue Service said Wednesday that most of the payments people who live near...

IRS makes free tax return program permanent and is asking all states to join in 2025

May. 30, 2024 19:39 PM EDT

WASHINGTON (AP) — The IRS said Thursday it will make permanent the free electronic tax return filing system that it experimented with this year and is asking all 50 states and the District of Columbia to help taxpayers file their returns through the program in 2025. The IRS tried...

Your tax refund could be bigger this year. Here's what to do with it

May. 10, 2024 06:03 AM EDT

NEW YORK (AP) — The average taxpayer is getting a $2,852 refund, $75 more than last year, based on the most recent IRS data. So what should you do with that money? Experts generally advise putting it toward debt and savings, but, for many people, that's unrealistic. ...

The $230 billion donor-advised fund industry gets an IRS hearing

May. 08, 2024 14:19 PM EDT

WASHINGTON (AP) — Congress and the Biden administration are considering what, if anything, should be done to tighten restrictions on donor-advised funds, an increasingly popular way for donors to set aside money to spend on charitable causes. Driving the debates are questions about...

IRS acts to address wide disparity in audit rates between Black taxpayers and other filers

May. 02, 2024 15:15 PM EDT

WASHINGTON (AP) — The IRS said Thursday that it has taken steps to address a wide disparity in audit rates between Black taxpayers and others filers, and is more closely examining the returns of larger numbers of wealthy people and major companies. “We are overhauling compliance...

140,000 people did their taxes with the free IRS direct file pilot. But program's future is unclear

Apr. 26, 2024 17:06 PM EDT

WASHINGTON (AP) — The IRS said Friday that more than 140,000 taxpayers filed their taxes through its new direct file pilot program and participants saved roughly $5.6 million in fees they would have otherwise spent with commercial tax preparation companies. The government pilot...