As I recently stated in my February 27, 2023, blog (NTA Blog: Lookback Rule: The IRS Fixes the Refund Trap for the Unwary), the IRS issued Notice 2023-21 providing taxpayers a longer lookback period when determining the amount of a claim for credit or refund that can be allowed for tax years (TYs) 2019 and 2020. The issuance of this notice addressed the mismatch between the time for filing a claim for credit or refund and the three-year lookback period caused by postponing certain filing deadlines for filing seasons 2020 and 2021, which would result in the denial of timely claims for credit or refund for those taxpayers who took advantage of the postponed deadlines and who had withholding or estimated payments. (In response to the COVID-19 pandemic, the IRS postponed the filing deadlines for TY 2019 to July 15, 2020, and for TY 2020 to May 17, 2021.) This discussion largely focuses on the more esoteric and immediate issues of filing claims for credit or refund for TY 2019, but the same analysis will apply to individuals who file timely claims for credit or refund in 2024 for TY 2020.

Are you a U.S. citizen or resident living abroad?

If so, you are required to comply with U.S. tax laws and may have filing obligations even if you did not step foot in the United States last year.

These obligations can be a surprise to many, and, with increased globalization and post-COVID-19 remote work freedoms, they may be impacting more and more people. The term “accidental Americans” has even been coined to describe those who were born in the United States and only lived here for a brief time or were born outside the United States to a parent with U.S. citizenship and may not even be aware they are U.S. citizens with associated U.S. tax filing obligations.

Did you know the IRS has the authority to ban a taxpayer from claiming the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), the American Opportunity Tax Credit (AOTC) and the credit for other dependents (ODC) for two years if the IRS determines that the taxpayer improperly claimed the credit “due to reckless or intentional disregard of rules and regulations”?

Congress enacted the Patient Protection and Affordable Care Act (ACA) to “improve access to and the delivery of health care services for all individuals, particularly low income, underserved, uninsured, minority, health disparity, and rural populations” (Pub. L. No. 111-148, 124 Stat. 119 (2010)). The ACA provides subsidies to low- and middle-income taxpayers to help them purchase health insurance.

The tax year (TY) 2022 filing season kicked off on January 23, 2023. Each filing season, taxpayers face a variety of challenges, including choosing a qualified return preparer, locating a volunteer tax return preparation site, selecting tax preparation software, and understanding what they need to include on their income tax returns. One important tax benefit many low- and moderate-income taxpayers are eligible to claim on their tax returns is the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit that provides substantial financial support to many taxpayers, many of whom come to rely on the resulting tax refunds to pay for necessities. The Earned Income Tax Credit (EITC) Awareness Day is a one-day national education program to alert taxpayers to the importance of the EITC and teach them how to claim it properly.  The IRS partnered with more than 1,500 supporters for about  220 live events, social media and other activities such as news releases and articles for EITC Awareness Day to raise awareness.

Part I of this series addressed ten things that individuals should know about the Advance Child Tax Credit (AdvCTC), including qualification, reasons someone might want to unenroll from receiving monthly payments, and first-time parents. Part II will focus on issues experienced by taxpayers with Individual Taxpayer Identification Numbers (ITINs) and the issuance of paper checks versus direct deposits for the August payment. Part III will explain how AdvCTC tools work, including ID.me, and will discuss the struggles some taxpayers are facing in receiving their AdvCTC.

The IRS Nationwide Tax Forums are back and in full swing this summer, and the Taxpayer Advocate Service (TAS) just successfully concluded the first forum held in Chicago from July 9-11. There are many reasons to attend the IRS Nationwide Tax Forums, including getting continuing education credits, attending workshops, participating in focus groups and having your voice heard, networking, and learning from cutting-edge knowledge sessions. Each forum offers unique opportunities to gain access to key IRS executives and decision-makers and network with others in the practitioner community.

As your National Taxpayer Advocate, I look forward to the IRS Nationwide Tax Forums as one of the highlights of my calendar because I get to hear from you.

Your tax return may show that you’re due a refund from the Internal Revenue Service (IRS). However, if you owe a federal tax debt from a prior tax year, or debt to another federal agency, or certain debts under state law, the IRS is allowed to forward your refund to pay that debt. And depending on the type of debt, in many situations the IRS is legally required to forward your refund to pay the debt.

If you filed a  federal income tax return and are expecting a refund from the IRS, you may want to find out the status of the refund or at least get an idea of when you might receive it.

There are many options available to get your tax questions answered.

U.S. citizens and residents abroad are generally required to file income tax returns reporting their worldwide income in the same way as taxpayers residing in the United States. This includes U.S. military personnel serving overseas. I recently highlighted filing information and difficulties encountered by U.S. taxpayers living abroad, including IRS service deficiencies, in two of my blogs. This blog highlights information specific to taxpayers serving in the U.S. military.

Preparing and filing tax returns can cause anxiety and confusion. You have choices to help you timely and accurately meet your 2023 filing requirements for free. Free filing and assistance are available through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs, IRS Free File programs, IRS Direct File, MilTax, and many private software companies. Each program, discussed below, has different qualifications and features and taxpayers should be comfortable with their choice.

Taxpayers may use commercial tax preparation software to file and pay taxes electronically (for a fee). When you file your return, it will be securely transmitted through an IRS-approved secure electronic channel. The software generally uses a question and answer format that provides answers to tax law questions.