What Taxpayers Should Know About Tax Return Copies and Transcripts
From the IRS | IRS Tax Tip 2018-90 | June 12, 2018
The IRS recommends that taxpayers keep a copy of tax returns for at least three years. Doing so can help taxpayers prepare future tax returns or even assist with amending a prior year’s return. If a taxpayer is unable to locate copies of previous year tax returns, they should check with their software provider or tax preparer first. Tax returns are available from IRS for a fee.
Even though taxpayers may have a copy of their tax return, some taxpayers need a transcript. These are often necessary for a mortgage or college financial aid application.
Here is some information about copies of tax returns and transcripts that can help taxpayers know when and how to get them:
IRS Explains CP2000 Letters Sent to Taxpayers When Tax Return Information Doesn’t Match Information from Third Parties
From the IRS | FS-2018-11 | May 2018
When a tax return’s information doesn’t match data reported to the Internal Revenue Service by employers, banks and other third parties, the IRS will send a letter to the taxpayer. The letter is called an IRS Notice CP2000, and it gives detailed information about issues the IRS identified and provides steps taxpayers should take to resolve those issues.
Annual Electronic Filing Requirement for Small Exempt Organizations | Form 990-N (e-Postcard)
FROM THE IRS
Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ, must be submitted electronically.
Law Change Affects Moving, Mileage and Travel Expenses
From the IRS | IR-2018-127 | May 25, 2018
The Internal Revenue Service today provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act that affect:
- Move related vehicle expenses
- Un-reimbursed employee expenses
- Vehicle expensing
Missed the Tax Deadline and Owe Tax? File by June 14 to Avoid Higher Late-Filing Penalty
From the IRS | IR-2018-133 | June 7, 2018
Taxpayers who owe tax and file their federal income tax return more than 60 days after the deadline will usually face a higher late-filing penalty. For that reason, the Internal Revenue Service urges affected taxpayers to avoid the penalty increase by filing their return by Thursday, June 14.
Ordinarily, the late-filing penalty, also known as the failure-to-file penalty, is assessed when a taxpayer fails to file a tax return or request an extension by the due date. This penalty, which only applies if there is unpaid tax, is usually 5 percent for each month or part of a month that a tax return is late.
IRS Issues Notice on State and Local Tax Deductions
From the IRS | IR-2018-122 | May 23, 2018
The U.S. Department of the Treasury and the Internal Revenue Service issued a notice today stating that proposed regulations will be issued addressing the deductibility of state and local tax payments for federal income tax purposes. Notice 2018-54 also informs taxpayers that federal law controls the characterization of the payments for federal income tax purposes regardless of the characterization of the payments under state law.
The Tax Cuts and Jobs Act (TCJA) limited the amount of state and local taxes an individual can deduct in a calendar year to $10,000. In response to this new limitation, some state legislatures have adopted or are considering legislative proposals allowing taxpayers to make payments to specified entities in exchange for a tax credit against state and local taxes owed.