Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer filed an offer in compromise (OIC) because they were unable to pay their IRS debts. They included the required processing fee, which the IRS applied to the outstanding balance, and the application fee. The OIC was rejected, but the payment was not returned.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A business’s authorized representative contacted TAS for assistance with a notice of federal tax lien (NFTL). The business filed some amended returns with the IRS to eliminate the tax liability on which the NFTL was filed, and needed the lien released before the end of the year so they could sell some property. TAS immediately began working with the authorized representative and the IRS to get the amended returns considered, using effective communication and negotiation skills with both the authorized representative and the IRS throughout the process.

TAS successfully negotiated with the IRS to have the amended returns accepted and the lien released in time for the taxpayer to move forward with the sale.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer who became disabled after working as a first responder contacted TAS for help after the IRS denied the taxpayer’s claim for refund. The taxpayer had filed Form 1040-X, Amended U.S. Individual Income Tax Return, to properly report their pension income as non-taxable. Upon receipt of the taxpayer’s inquiry, TAS asked the IRS to reconsider the taxpayer’s claim and provided documentation that the pension income was not taxable. However, the IRS again denied the claim. TAS continued to advocate in the best interest of the taxpayer by explaining their appeal rights and encouraging them to request an appeal. Empowered by TAS, the taxpayer filed an appeal, and the Independent Office of Appeals overturned the IRS’s decision and removed the non-taxable pension from income.

TAS will launch a Pre-Filing Season Awareness outreach campaign in January.  It is a nationwide effort to help millions of taxpayers who self-prepare federal tax returns to avoid common return processing issues that cause refund delays.

Did you know that if you’re an eligible educator, you can deduct up to $300 of unreimbursed business expenses? And if you and your spouse are both teachers and file jointly, that number goes up to $600.

In addition, filers of tax year 2019 information returns (other than IIRs) filed on or before August 3, 2020, will have any portion of an information return penalty that is the result of late filing abated. Information reporting penalties assessed for reasons other than lateness, such as incorrect information or non-compliance with e-file requirements, will not be waived. For tax year 2020 information returns (other than IIRs), the same relief applies to returns filed on or before August 2, 2021.

TAS has launched a nationwide Pre-Filing Season Awareness outreach campaign to help millions of taxpayers who self-prepare federal tax returns to avoid common return processing issues that cause refund delays. 

When a taxpayer requests a Collection Due Process (CDP) hearing, they may want to argue that they do not owe the tax the IRS is trying to collect. Sometimes the law allows them to raise that issue, but it does not if the taxpayer has already received a notice of deficiency or otherwise had an opportunity to challenge the underlying liability, including through the Independent Office of Appeals (Appeals). When taxpayers are allowed to challenge the underlying liability in CDP, it is natural to expect a decision on the merits, either at the Appeals CDP hearing or if necessary from the Tax Court. But after the Supreme Court’s decision in Commissioner v. Zuch, that expectation no longer holds. Under Zuch, a taxpayer can do everything the statute requires and still leave court without a judicial determination as to what they owe. Such a result violates a taxpayer’s rights to pay no more than the correct amount of tax and to challenge the IRS’s position and be heard.

TAS is happy to report that the IRS has issued guidance on these special state tax payments. The guidance is complex. Because the taxability of these state payments varies depending on the type of payment and your state of residence, TAS urges you to carefully review the IRS-issued guidance

An authorized representative contacted TAS for assistance with an Employee Retention Credit claim filed by a small business they represented. After significant delays, the business was still waiting for the IRS to process their claim.  

The assigned case advocate’s hard work, organization, and follow through prompted the IRS to process the claim and release the refund. The refund allowed the business to stay open and continue providing important services to members of its community.  

The authorized representative commended the assigned employee, stating the Case Advocate “is a credit to your organization and…closure of the issue couldn’t have come at a better time!” 

With the filing season underway, many taxpayers are gathering their tax documents, including Forms W-2 and 1099, and figuring out exactly how they will prepare their income tax returns. Some taxpayers choose to prepare their own tax returns using tax return preparation software. However, last year, over 54 percent of all individual income tax returns were prepared by paid return preparers. Choosing the right return preparer is an important decision with significant financial consequences, but selecting the right return preparer can be confusing. It may be difficult to understand the differences between the various preparer credentials and which type of credential best fits your needs.