Today's Accounting & Tax Services

10/21/2022

Issue Number: IR-2022-186
Inside This Issue
Adjust tax withholding now to pay the proper amount of tax

WASHINGTON — The Internal Revenue Service today urged taxpayers to check their tax withholding while there’s time left in 2022 to benefit from any necessary changes.

An adjustment made now will help people avoid a big surprise, such as a big refund or a balance due, at tax time in 2023.

Life brings constant changes to individual financial situations. Events like marriage, divorce, new tax law, a new child or home purchase can all be reasons to adjust withholding.

Tax Withholding Estimator
The Tax Withholding Estimator, also available in Spanish, can help people determine if they have too much income tax withheld and how to make an adjustment to put more cash into their own pocket. In other cases, it can help taxpayers see that they should withhold more or make an estimated tax payment to avoid a tax bill when they file their tax return next year.

The tool offers workers, retirees, self-employed individuals and other taxpayers a user-friendly, step-by-step tool for effectively tailoring the amount of income tax they should have withheld from wages and pension payments based on their complete set of facts and circumstances.

Pay as you go
Taxes are generally paid throughout the year whether from salary withholding, quarterly estimated tax payments or a combination of both. About 70% of taxpayers, however, withhold too much every year. This typically results in a refund. The average refund in 2022 is just under $3,000.

12/13/2021

https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes

Get ready to file your taxes. See tips that can make filing taxes easier next year. Learn about tax law changes, how to view your tax account information online, and ways to get help.

11/30/2021

4. Billionaire tax out, corporate minimum tax in: Where the White House landed on tax plans

Administration officials say the plan would raise $2 trillion over 10 years to pay for climate and social programs.

11/29/2021

9. New Biden plan would give e-bike buyers up to $1,500 in tax credits

The credit was restored to 30 percent.

11/26/2021

10. Who Could Pay More With a 15% Corporate Minimum Tax? Not Just Amazon

Democrats want the biggest U.S. companies to pay at least 15% of profits in taxes. Amazon, Pfizer and dozens more S&P 500 firms reported tax rates lower than that last year.

11/24/2021

5. IRS unemployment tax refund update: Are checks finally coming in October?

Some taxpayers are waking up to surprise direct deposits this week. The Internal Revenue Service hasn’t said much about what’s happening.

11/17/2021

8. Billionaires' wealth has soared 70% in the pandemic. That's one reason why Democrats wanted to tax them.

Already massively wealthy, America's billionaires saw their collective fortunes soar more than 70% to more than $5 trillion during the pandemic.

11/15/2021

7. Elon Musk to Congress: Drop the billionaire tax. It will only mess with ‘my plan to get humanity to Mars’

The divisive proposal would treat billionaires’ fortunes like business income, subjecting the unrealized gains to a new annual tax.

11/10/2021

3. Trump urges judge to block IRS from handing over his tax returns to Congress

The Biden administration has reversed course after the previous regime denied the congressional requests.

11/08/2021

2. 'Stupid' and 'insane': Some billionaires vent over tax plan

Elon Musk isn’t happy

11/04/2021

Common tax scams and tips to help taxpayers avoid them

In recent years, tax schemes and scams have been on the rise. Con artists work year-round which means taxpayers must remain vigilant to avoid being victimized. Here are some tips to help people recognize and avoid some of the most common tax-related scams.

Email phishing scams

The IRS does not initiate contact with taxpayers by email to request personal or financial information. Generally, the IRS first mails a paper bill to the person who owes taxes. In some special situations, the IRS will call or come to a home or business.

Taxpayers should report IRS, Treasury or tax-related suspicious phishing scams by saving the email and then sending that file as an attachment to [email protected]. They should not open any attachments, click on any links, reply to the sender, or take any other actions that could put them at risk.

Phone scams

The IRS generally first mails a bill to the taxpayer who owes taxes. There are specific ways to pay taxes. The agency and its authorized private collection agencies will not:

• Leave pre-recorded, urgent, or threatening messages on an answering system.
• Threaten to immediately bring in local police or other law enforcement groups to arrest the taxpayer for not paying, deport them or revoke their licenses.
• Call to demand immediate payment with a prepaid debit card, gift card or wire transfer.
• Ask for checks to third parties.
• Demand payment without giving the taxpayer an opportunity to question or appeal the amount owed.

Criminals can fake or spoof caller ID numbers to appear to be anywhere in the country. Scammers can even spoof an IRS office phone number or the numbers of various local, state, federal or tribal government agencies.

If a taxpayer receives an IRS or Treasury-related phone call, but doesn't owe taxes and has no reason to think they do, they should:

• Not give out any information. Hang up immediately.
• Contact the Treasury Inspector General for Tax Administration to report the IRS impersonation scam call.
• Report the caller ID and callback number to the IRS by sending it to [email protected]. The subject line should include "IRS Phone Scam."
• Report the call to the Federal Trade Commission.

If a taxpayer wants to verify what taxes they owe the IRS, they should:

• View tax account information online at IRS.gov.
• Review their payment options.

More information:
IRS Dirty Dozen Tax Scams
Avoiding Social Engineering and Phishing Attacks - Department of Homeland Security
Security Awareness for Taxpayers

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Tax Tip 2021-164, November 4, 2021