This year, we are celebrating the 25th anniversary of the Low Income Taxpayer Clinic (LITC) grant program. Since 1999, LITCs have been changing lives, leveling the playing field, and standing up for low-income and English as a second language (ESL) taxpayers across the nation. Imagine facing a tax audit, tax debt, or dispute without the resources to hire expert help. That’s intimidating to almost anyone, but especially to low-income individuals who can’t afford to get help. That’s where the LITC Program steps in to save the day!

LITCs have been empowering vulnerable taxpayers and strengthening the fairness and integrity of our tax system. LITCs provide expert legal assistance, education, and advocacy, for free or for a small fee, to taxpayers who need it most, helping them navigate the complex world of tax controversies with confidence. Let’s look back, celebrate the successes of our dedicated clinicians, and explore ways you can be part of this amazing journey and make a real difference.

Want the best advice for faster tax return processing without encountering delays? It’s as easy as 1-2-3!

#1 – Verify your information is accurate. Check the accuracy of everything you enter on that tax return, not just once but two or three times before you hit that submit button Find out more in our Tax Tip: Avoid Tax Return Errors & Refund Delays.

#2 – e-File your tax return. There are lots of options that let you file your return electronically. Some are even free. If you’ve been hesitant until now to make that leap from filing a paper return, now is the time to make that move. See our Options for Filing a Tax Return or IRS’s Electronic Filing Options for Individuals for information you can use to switch to e-filing.

#3 – Request Direct Deposit. The IRS is moving away from paper checks, so to help you get your refund faster, tell the IRS to direct deposit it into a bank account. You can even have them directly deposit your money in up to three different accounts.

All Paid Return Preparers Must Have a Preparer Tax Identification Number

A Preparer Tax Identification Number (PTIN) generally is required for anyone who is paid to prepare or help to prepare all, or substantially all, of a federal tax return, claim for refund, or other tax form submitted to the IRS, unless specifically excepted. In addition, all enrolled agents are required to obtain a PTIN. For more information on who needs a PTIN, see the frequently asked questions on IRS.gov.

Sadly, we have all heard stories of people falling victim to financial scams. Scams can take many forms and often harm our most vulnerable citizens. For example, many of us have received phone calls or other types of messages from fraudsters impersonating IRS or law enforcement officials threatening jail time if a fabricated tax debt is not immediately paid. Other scammers convince victims to liquidate their assets and pay them to the scammers, effectively stealing their life’s savings and leaving them with large tax liabilities to boot. Yet another type of scam involves the scammers convincing the victims to take fraudulent positions on their tax returns with the promise of a large tax refund, often under the guise of friendship or assistance. Many of these fraudulent tax schemes are posted to social media and are unfortunately reaching a wide audience.

You have a balance on your tax account which you have not paid and the IRS has filed a public document, the Notice of Federal Tax Lien (NFTL), with the local and/or state authorities to alert creditors that the government has a right to your interests in any current and future property and assets.

Effective July 24, most unannounced visits by revenue officers will stop.

National Taxpayer Advocate Erin M. Collins joins the American Institute of Certified Public Accountants Town Hall Series to discuss pressing issues facing the accounting industry.

I’ve written several blogs discussing how the IRS continues to be mired in processing backlogs following pandemic-related office closures in 2020. But it’s not just unprocessed tax returns piling up. The IRS is also experiencing unprecedented delays in processing Forms 2848, Power of Attorney and Declaration of Representative, and 8821, Tax Information Authorization, (collectively “authorizations,” for practitioners). These forms are required for taxpayers to grant someone either the authority to represent them in IRS matters or otherwise assist them with tax matters. Practitioners cannot assist taxpayers without the proper authorization. The IRS Centralized Authorization File (CAF) units process authorizations allowing a taxpayer’s designated representative(s) or designees to access their clients’ IRS records, receive copies of correspondence, and, pursuant to a Form 2848, perform other duties during representation to resolve or avoid issues with the IRS. With the unusual backlog, the IRS needs to provide specific information on processing delays to manage expectations, reduce frustrations, and decrease the possibility of filing duplicative authorizations.

Your tax return may show you’re due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, or a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.

Preparing and filing tax returns can be stressful and confusing, especially if your financial situation has changed or you are filing for the first time. The good news is that free resources are available to help you timely and accurately meet your filing requirements. Taxpayers can receive assistance through the Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), Free File, and MilTax programs. Taxpayers may also seek IRS assistance electronically using online accounts or the Interactive Tax Assistant (ITA), or in person at a Taxpayer Assistance Center (TAC). Each method of assistance, as discussed below, has different qualifications and features, and taxpayers should look at each one before deciding which is best for them.

Economic Impact Payments (EIPs) are considered advanced payments against a new credit, called the Recovery Rebate Credit (RRC), that can be claimed when you file your 2020 individual tax return. You must file Form 1040 or Form 1040-SR to claim the RRC even if you are normally not required to file a tax return. EIPs were paid in two rounds – one during 2020, and one during early 2021.