Posts by Ruth Ann Michnay, P.A.
IRS Penalty Relief Information: Penalties Eligible for Relief – Failure to File Penalty (Part 1 – A)
The failure to file penalty applies if you don’t file your tax return by the due date (includingextensions). How you know you owe the penaltyThe IRS will send you a notice or letter if you owe the failure to file penalty. Penalty amountThe failure to file penalty amount depends on the type of tax return…
Read MoreIRS Penalty Relief Information (Part 1)
You may qualify for penalty relief if you tried to comply with tax laws but were unable due tocircumstances beyond your control. If you received a notice or letter, verify the information is correct. If the information is notcorrect, follow the instructions in your notice or letter. If you can resolve the issue, a penalty…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #10: Appeals
Problem #10: APPEALS – Despite Some Improvements, Many Taxpayers and TaxProfessionals Continue to Perceive the IRS Independent Office of Appeals as InsufficientlyIndependent EXPLANATION OF THE PROBLEMThe lack of independence and operational efficiency in the IRS Independent Office of Appeals(Appeals) process undermines taxpayer trust and prolongs dispute resolution. When taxpayersare unable to resolve their issue in…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #9: Compliance Challenges for Taxpayers Abroad
Problem #9: COMPLIANCE CHALLENGES FOR TAXPAYERS ABROADTaxpayers Abroad Continue to Be Underserved and Face Significant Challenges inMeeting Their U.S. Tax Obligations EXPLANATION OF THE PROBLEMTaxpayers abroad face vast difficulties in complying with their U.S. tax obligations. Many findthemselves trying to navigate a complex tax system they do not understand, and the IRS offerslimited assistance and…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #8: International
Problem #8: INTERNATIONAL – The IRS’s Approach to International InformationReturn Penalties Is Draconian and Inefficient EXPLANATION OF THE PROBLEMU.S. persons who receive money from abroad or who have certain foreign financial interests andcross-border business activities are potentially subject to a wide range of U.S. reportingrequirements. Many of these requirements come with significant penalty exposure when…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #7: Online Account Access
Problem #7: ONLINE ACCOUNT ACCESS FOR TAXPAYERS AND TAXPROFESSIONALS Digital Services Remain Inadequate, Impeding Efficient Case Resolution and Forcing Millionsof Taxpayers to Call or Send Correspondence to the IRS EXPLANATION OF THE PROBLEMTaxpayers and tax professionals lack a comprehensive online account with integrated digitalcommunication tools to access tax information and services that are essential for…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers
Problem #6: DENTITY THEFT (Part II) Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #6: DENTITY THEFT (Part II) EXPLANATION OF THE PROBLEM With enough identifying information, a criminal can fraudulently file an individual or company’s tax return. The U.S. Federal Trade Commission (FTC) received about 2.8 million fraud and identity…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers
Problem #6: DENTITY THEFT (Part I) Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #6: DENTITY THEFT (Part I) WHY THIS IS A SERIOUS PROBLEM FOR TAXPAYERS Individuals who are victims of tax-related identity theft are waiting an average of nearly 19 months for the IRS to process their returns and…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers
Problem #5: RETURN PREPARER OVERSIGHT Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #5: RETURN PREPARER OVERSIGHT WHY THIS IS A SERIOUS PROBLEM FOR TAXPAYERS Tax return preparers prepare over half of the individual income tax returns filed on an annual basis. Taxpayers, the IRS, and our voluntary tax system rely…
Read MoreTaxpayer Advocate Service – 10 Most Serious Problems Encountered by TaxpayersProblem #4: Telephone and In-Person Service (Part II)
Taxpayer Advocate Service – 10 Most Serious Problems Encountered by TaxpayersProblem #4: Telephone and In-Person Service (Part II) WHY THIS IS A SERIOUS PROBLEM FOR TAXPAYERS Taxpayers who need face-to-face service can make an appointment to visit Taxpayer AssistanceCenters (TACs) for free tax help to address their tax questions and receive support if they facelanguage…
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