etrent17/irs-articles huggingface dataset:
IR-2015-29, Feb. 13, 2015
WASHINGTON —The Internal Revenue Service today made it easier for small business owners to comply with the final tangible property regulations.
Requested by many small businesses and tax professionals, the simplified procedure is available beginning with the 2014 return taxpayers are filling out this tax season. The new procedure allows small businesses to change a method of accounting under the final tangible property regulations on a prospective basis for the first taxable year beginning on or after Jan. 1, 2014.
Also, the IRS is waiving the requirement to complete and file a Form 3115 for small business taxpayers that choose to use this simplified procedure for 2014.
"We are pleased to be able to offer this relief to small business owners and their tax preparers in time for them to take advantage of it on their 2014 return,” said IRS Commissioner John Koskinen. “We carefully reviewed the comments we received and especially appreciate the valuable feedback provided by the professional tax community on this issue.”
The new simplified procedure is generally available to small businesses, including sole proprietors, with assets totaling less than $10 million or average annual gross receipts totaling $10 million or less. Details are in Revenue Procedure 2015-20PDF, posted today on IRS.gov.
The revenue procedure also requests comment on whether the $500 safe-harbor threshold should be raised for businesses that choose to deduct, rather than capitalize, certain capital expenses. 
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IR-2015-28, Feb. 12, 2015                                                  
WASHINGTON — The Internal Revenue Service says more taxpayers are visiting its Web site this year to get tax help and information.
According to the IRS, the number of visitors to IRS.gov is up almost 20 percent compared with last year. The IRS web site has been visited more than 100 million times so far this year compared with 85 million for the same time last year.
The IRS reminds taxpayers that the site contains a wealth of information and options, including tools that allow taxpayers to check the status of a refund,  access transcripts of their tax returns, request electronic filing personal identification numbers, find answers to tax law questions, and check the status of amended returns. Usage of the tool to check the status of a refund, “Where’s My Refund?” is up 91 percent, compared to the same time last year.
The IRS has issued 19.7 million refunds worth more than $66 billion, up slightly from last year’s totals. The average refund as of Feb. 6 is $3,366, slightly more than the average at this time last year. The vast majority of taxpayers are choosing to receive their refunds through direct deposit, which accounts for almost 95 percent of refunds so far this year.
In total, the IRS has received 27.5 million tax returns, slightly more than at the same time last year. Of those returns, more than 96 percent were e-filed.
 

2015 FILING SEASON STATISTICS


Cumulative statistics comparing 2/7/14 and 2/6/15


Individual Income Tax Returns:


2014


2015


% Change


Total Receipts


27,249,000


27,517,000


1.0


Total Processed


26,945,000


27,084,000


0.5


 


 


 


 


E-filing Receipts:


 


 


 


TOTAL           


26,081,000


26,472,000


1.5


Tax Professionals


12,699,000


12,135,000


-4.4


Self-prepared


13,382,000


14,337,000


7.1


 


 


 


 


Web Usage:


 


 


 


Visits to IRS.gov


85,095,129


101,441,679


19.2


 


 


 


 


Total Refunds:


 


 


 


Number


19,459,000


19,651,000


1.0


Amount


$64.546


billion


$66.139


billion


2.5


Average refund


$3,317


$3,366


1.5


 


 


 


 


Direct Deposit Refunds:


 


 


 


Number


16,976,000


18,647,000


9.8


Amount


$55.815


billion


$63.980


billion


14.6


Average refund


$3,288


$3,431


4.4

 
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IR-2015-25, Feb. 6, 2015
WASHINGTON — The 2015 tax filing season is off to a strong start with most taxpayers filing their returns electronically and choosing direct deposit for their refunds, according to the Internal Revenue Service.
As of Jan. 31, the IRS received more than 14 million tax returns this year. More than 13 million of those returns have been filed electronically, an indication that more taxpayers are realizing the benefits that e-filing offers.
“We encourage taxpayers to e-file their returns since it is the quickest, safest and most accurate way to file and the fastest way to get a refund,” said IRS Commissioner John Koskinen. “We also urge taxpayers to take advantage of the many online resources available through our web site.”
IRS.gov has been accessed more than 65 million times this year, up 49 percent from the same time last year.
Filing a complete and accurate return is more crucial than ever to prevent refund delays or discrepancies.
The IRS has issued 7.6 million refunds worth $26.8 billion; the average refund is worth $3,539. More than 96 percent of all refunds have been paid through direct deposit. In total, 7.3 million refunds worth $26.2 billion have been directly deposited to taxpayer accounts.
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2015 FILING SEASON STATISTICS


Cumulative statistics comparing 1/31/14[1] and 1/30/15

Individual Income Tax Returns:

2014


2015


% Change

Total Receipts

11,169,000


14,026,000


25.6

Total Processed

11,036,000


13,897,000


25.9

 

 


 


 

E-filing Receipts:

 


 


 

TOTAL           

10,418,000


13,327,000


27.9

Tax Professionals

4,212,000


5,857,000


39.1

Self-prepared

6,206,000


7,469,000


20.4

 

 


 


 

Web Usage:

 


 


 

Visits to IRS.gov

43,996,932


65,561,078


49.0

 

 


 


 

Total Refunds:

 


 


 

Number

3,838,000


7,595,000


97.9

Amount

$12.351

billion

$26.882

billion

117.7

Average refund

$3,218


$3,539


10.0

 

 


 


 

Direct Deposit Refunds:

 


 


 

Number

3,715,000


7,310,000


96.8

Amount

$12.053

billion

$26.213

billion

117.5

Average refund

$3,244


$3,586


10.5

[1] When comparing the tax filings as of Jan 31, 2015 and the same time last year it must be remembered that the 2014 filing season began ten days later — Jan. 30, 2014 — because the process for updating IRS systems saw significant delays in October 2013 as a result of the 16-day federal government closure.
IRS YouTube Video: IRS2Go:  English
IR-2015-24, Feb. 06, 2015
WASHINGTON — The Internal Revenue Service today announced the release of IRS2Go 5.0, an update to the only official IRS smartphone application, compatible with both Apple and Android devices.
Download IRS2Go free of charge for Android devices from the Google Play Store or from the Apple App Store for Apple devices.  Use it to check your refund status, watch the IRS YouTube channel, find free tax preparation help, get IRS news as soon as it's released, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs.
 “The new version of IRS2Go provides taxpayers another way to quickly get information and help around the clock,” said IRS Commissioner John Koskinen. “The IRS is focused on providing taxpayers with convenient self-service tools like IRS2Go, but it’s important to remind taxpayers to only use official IRS products to safeguard their personal information.”
Users who have already downloaded past versions of IRS2Go should make sure to update their devices with the most current official- and completely free-version of the app by visiting the Apple App or Google Play Store.
The newest version of the free mobile app offers a number of safe and secure ways for taxpayers to access other popular tools and the most up-to-date tax information, including:
Refund Status. Taxpayers can check the status of their federal tax refund through IRS2Go. People simply enter their Social Security number, which will be masked and encrypted for security purposes, then select their filing status and enter the amount of their anticipated refund for their 2014 tax return.
Free Tax Prep Providers. The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offer free tax help for taxpayers who qualify. This brand new tool on IRS2Go will help taxpayers find the nearest volunteer tax help site to their home by simply entering their zip code and selecting a mileage range. By clicking on the directions button within the results, the maps application on the device will load with the address, making it easy to navigate to your desired location.
Stay Connected. Taxpayers can interact with the IRS by following the IRS on Twitter, @IRSnews or @IRSenEspanol, watching helpful videos on YouTube, signing up for email updates, or by using the Contact Us feature.
For more information on IRS2Go, products and services through social media channels and other media products, visit www.IRS.gov.
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IR-2015-21, Feb. 5, 2015
WASHINGTON — The Internal Revenue Service today warned that taxpayers should watch for improper claims for fuel tax credits, one of the “Dirty Dozen” tax scams for the 2015 filing season.
“We will do everything we can to stop erroneous claims for the fuel tax credit and catch scammers promoting them,” said IRS Commissioner John Koskinen. “The IRS is also concerned about identity thieves trying to use this credit to inflate their bogus claims for refunds.”
Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time but many of these schemes peak during filing season as people prepare their returns or hire people to help with their taxes.
Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000. Furthermore, illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and prosecute the criminals behind them.
The fuel tax credit is generally limited to off-highway business use or use in farming. Consequently, the credit is not available to most taxpayers. But yet, the IRS routinely finds unscrupulous preparers who have enticed sizable groups of taxpayers to erroneously claim the credit to inflate their refunds.
Fuel Tax Credit Scams
The federal government taxes gasoline, diesel fuel, kerosene, alternative fuels and certain other types of fuel. Certain commercial uses of these fuels are nontaxable. Individuals and businesses that purchase fuel for one of those purposes can claim a tax credit by filing Form 4136PDF, Credit for Federal Tax Paid on Fuels.
The tax is on fuels used to power vehicles and equipment on roads and highways. Taxes paid for fuel to power vehicles and equipment used off-road may qualify for the tax credit and may include farm equipment, certain boats, trains and airplanes.
Improper claims for the fuel tax credit generally come in two forms. An individual or business may make an erroneous claim on their otherwise legitimate tax return. Or an identity thief may claim the credit in a broader fraudulent scheme.
The IRS has taken a number of steps to improve compliance processes involving fuel tax credits.
IRS compliance filters are preventing a significant number of questionable fuel tax credit claims from being processed. For example, new identity theft screening filters have also improved the IRS’s ability to identify questionable fuel tax credit claims during return processing, including preventing the issuance of $33 million in questionable credit claims in 2013.
For the upcoming filing season, the IRS has taken additional steps to identify returns for review that claim fuel tax credits, including broadening the identification criteria to ensure a more comprehensive compliance approach in selecting questionable tax returns.
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IR-2015-18, Feb. 2, 2015
WASHINGTON — Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against, the Internal Revenue Service said today. This scheme is one of those on the annual “Dirty Dozen” list of tax scams for the 2015 filing season.
“The mere suggestion of falsifying documents to reduce tax bills or inflate tax refunds is a huge red flag when using a paid tax return preparer.” said IRS Commissioner John Koskinen. “People should watch out for this type of scam especially when someone else prepares their returns.”
Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time but many of these schemes peak during filing season as people prepare their returns or hire people to help with their taxes.
Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.
Falsely Claiming Zero Wages
Filing a phony information return, such as a Form 1099 or W-2, is an illegal way to lower the amount of taxes an individual owes. These scofflaws use self-prepared, “corrected” or otherwise bogus forms that improperly report taxable income as zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a third-party payer to the IRS.
Taxpayers should resist any temptation to participate in any variations of this scheme. The IRS is well-aware of this scam, the courts have consistently rejected attempts to use this tax dodge and perpetrators have received significant penalties, imprisonment or both. Just filing this type of return may result in a $5,000 penalty.
Some people also attempt fraud using false Form 1099 refund claims. In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS.
In this scam, the perpetrator files a fake information return to justify a false refund claim on a corresponding tax return. Again, the IRS is well-aware of this scam, the courts have consistently rejected attempts to use this tax dodge and perpetrators have received significant penalties, imprisonment or both.
Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled. Do not allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.
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IR-2015-62, March 31, 2015
WASHINGTON — As April 1st approaches, the IRS warns taxpayers not to be fooled by the tricks scammers use to take advantage of those they target. Scammers use fake names, provide bogus IRS badge numbers and alter caller ID numbers to make it look like the IRS is calling.
With the final two weeks of the filing season about to begin and millions preparing their returns, taxpayers should be alert.
"This is no April Fool's joke. Everyone should be on the lookout for threatening calls from people faking IRS phone numbers and demands for immediate payment," IRS Commissioner John Koskinen said. "These are scams. I urge taxpayers to stay vigilant and remain aware of the constantly changing tactics used by these criminals.”
As the filing season nears its end, there has been a surge of phone scams where scam artists threaten police arrest, deportation, license revocation and other threats.
They often leave “urgent” callback requests and sometimes prey on the most vulnerable people, such as the elderly, newly arrived immigrants and those whose first language is not English. Scammers have been known to impersonate agents from IRS Criminal Investigation as well.
Here are five things the scammers often do but the IRS will not do.
The IRS will not:
Call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill.
Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
Require you to use a specific payment method for your taxes, such as a prepaid debit card.
Ask for credit or debit card numbers over the phone.
Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:
If you know you owe taxes or think you might owe, call the IRS at 1-800-829-1040. The IRS workers can help you with a payment issue.
If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or report it online at the IRS Impersonation Scam Reporting Page.
If you’ve been targeted by this scam, also contact the Federal Trade Commission and use their FTC Complaint Assistant at FTC.gov. If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.
Remember, too, the IRS does not use email, text messages or any social media to discuss your personal tax issue involving bills or refunds. For more information on reporting tax scams, go to IRS.gov and type “scam” in the search box.
Additional information about tax scams is available on IRS social media sites, including YouTube and Tumblr, where people can search “scam” to find the related posts.
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IR-2015-61, March 27, 2015
WASHINGTON — The Internal Revenue Service awarded approximately $10.25 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2015 grant year (Jan. 1, 2015, through Dec. 31, 2015).
LITCs are organizations that represent low income taxpayers in federal tax disputes with the IRS for free or for a nominal fee, organizations that provide tax education and outreach to taxpayers who speak English as a second language, or organizations that do both.
Through the LITC program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. The LITC program is a federal program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Nina E. Olson. However, LITCs, their employees and volunteers operate independently of the federal government.
More information about LITCs and the work they do to represent, educate and advocate on behalf of low income taxpayers is available in IRS Publication 5066PDF, LITC Program Report. IRS Publication 4134PDF, Low Income Taxpayer Clinic List, provides information about LITCs by geographic area, including contact information and details about the languages each LITC can accommodate in addition to English. Publication 5066 and Publication 4134 are available at IRS.gov. 
A list of the 132 organizations awarded LITC grantsPDF for the 2015 grant year is also available on IRS.gov.
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IR-2015-60, March 27, 2015
WASHINGTON — The Internal Revenue Service will hold a free webinar next week designed to offer tips to taxpayers, especially small business owners, on working  effectively with a paid tax preparer.
The webinar titled, Ten Things to Ask Your Accountant, will take place on Tuesday, March 31 from 2 p.m. to 2:45 p.m. Eastern Time.  It will discuss three important questions to ask before hiring a tax professional. The webinar will also describe seven common tax provisions that often apply to small business owners, including deductions for a home office, depreciation, and making quarterly estimated tax payments including e-paying using the agency’s new Direct Pay option.
To register or access archived versions of past webinars, visit the Webinars for Small Businesses page on IRS.gov. Topics of popular recent webinars have included tip income reporting and the home office deduction.
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IR-2015-59, March 26, 2015
WASHINGTON — With millions of taxpayers getting ready to file, the Internal Revenue Service today reminded taxpayers they can take advantage of daily tax tips, e-news subscriptions and email subscription services.
More than 670,000 people are getting useful, one-page IRS Tax Tips sent to their email inbox this tax season through a free subscription service available on IRS.gov. One Tax Tip is being sent each business day through the April 15 tax deadline, offering single-topic briefs on tax subjects affecting millions of people.
The easy-to-read tips cover a wide range of topics to help people with the 2015 tax filing season. Many tips offer information on money-saving tax credits and deductions that can be easy to overlook and could affect your refund. IRS Tax Tips are also available in Spanish for this filing season.
Topics for 2015 include:
Beware of filing season tax scams and phone scams.
Fastest and safest way to get your refund.
Child tax credit.
Education tax credits.
Home office deduction.
Tax-time errors to avoid.
IRS Free File.
Helpful tips for paying your taxes.
Top 10 tips.
Tax help ‘en Español.’
In addition to the various filing season tips, the IRS issues Health Care Tax Tips to help taxpayers understand the new tax provisions included in the health care law. Special Edition Tax Tips cover important new topics of interest to the public. To view the IRS Tax Tips online, visit the News section of IRS.gov or type “Tax Tips” into the search box.
Taxpayers can receive IRS Tax Tips automatically each day via email by signing up for a free service on IRS.gov. From the Subscriptions link on the top right of the IRS website, choose “IRS Tax Tips” on the drop-down menu, and then click on “Subscribe.” Click on “more” to subscribe to the IRS Tax Tips in Spanish.
The IRS also has a number of other e-subscriptions to which taxpayers, tax professionals and others may subscribe to receive tax information via email from the IRS during the tax-filing season and the rest of the year. As of last Friday, more than one third of the taxpayers who will file by the deadline had yet to do so; the average refund for those received one as of the March 20 was $2,893.
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2014 FILING SEASON STATISTICS


Cumulative statistics comparing 3/21/14 and 3/20/15

Individual Income Tax Returns:

2014


2015


% Change

Total Receipts

82,823,000


82,289,000


-0.6

Total Processed

81,149,000


80,439,000


-0.9

 

 


 


 

E-filing Receipts:

 


 


 

TOTAL           

75,610,000


76,022,000


0.5

Tax Professionals

43,953,000


42,711,000


-2.8

Self-prepared

31,657,000


33,311,000


5.2

 

 


 


 

Web Usage:

 


 


 

Visits to IRS.gov

207,734,597


231,552,756


11.5

 

 


 


 

Total Refunds:

 


 


 

Number

67,383,000


66,108,000


-1.9

Amount

$193.543

Billion

$191.233

Billion

-1.2

Average refund

$2,872


$2,893


0.7

 

 


 


 

Direct Deposit Refunds:

 


 


 

Number

57,101,000


57,944,000


1.5

Amount

$170.187

Billion

$176.058

Billion

3.4

Average refund

$2,980


$3,038


1.9
IR-2015-58, March 24, 2015
WASHINGTON — The Internal Revenue Service today released the 2014 IRS Data Book, a snapshot of agency activities for the fiscal year.
“Fiscal Year 2014 marked the fourth consecutive year IRS appropriations were reduced,” said IRS Commissioner John Koskinen. “These reductions required us to change our approach to taxpayer service and enforcement operations; with fewer resources, we saw decreases in the number of phone calls answered and the number of audits completed.”
The report describes activities conducted by the IRS from Oct. 1, 2013, to Sept. 30, 2014, and includes information about returns filed, taxes collected, enforcement, taxpayer assistance, and the IRS budget and workforce among others. The 2014 Data Book contains charts that show trends, such as the decline in the number of audits and the decline in telephone and in-person tax assistance and increases in the use of online resources and volunteer tax assistance.
During fiscal year 2014, the IRS collected almost $3.1 trillion in federal revenue and processed almost 240 million returns. About 65 percent of all returns were filed electronically. Of the 147 million individual income tax returns filed, 84 percent were e-filed. Over 116 million individual income tax return filers received a tax refund, which totaled over $330 billion. The IRS examined less than 1 percent of all tax returns filed. About 3 percent of all individual tax returns examined resulted in additional refunds.
The IRS provided taxpayer assistance through 437 million visits to IRS.gov and assisted over 69 million taxpayers through its toll-free telephone helpline or at walk-in sites. An electronic version of the 2014 Data Book can be found on the Tax Stats page of IRS.gov.
Printed copies of the IRS Data Book, Publication 55B, will be available by mid-April 2015 from the U.S. Government Printing Office. To obtain a copy, write to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954, or call (202) 512-1800 for voicemail, or fax a request to (202) 512-2250.
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IR-2015-57, March 20, 2015
WASHINGTON — As taxpayers are preparing their returns, they continue to turn to the information and tools on IRS.gov, which can assist anyone preparing a return.
Visits to IRS.gov have increased by 11 percent compared to the same time last year, totaling more than 215 million visits according to filing season statistics released today. There have been 15 million new visits in just the past week.
Taxpayers who have filed their returns and are waiting for their refunds can use the Where’s My Refund? tool, which has been accessed 164 million times as of March 13. The site enables taxpayers to track the status of their refund. Initial information will normally be available within 24 hours after the IRS receives the taxpayer’s e-filed return or four weeks after the taxpayer mails a paper return to the IRS. The system updates every 24 hours, so there’s no need to check more often. 
More than 11 million copies of previously filed tax information have been obtained online with the IRS Get Transcript application. In the past, these inquiries, which are now being answered online, would have required the taxpayer to order it by phone and wait up to 10 calendar days for it to arrive in the mail or visit an IRS office for a copy.
Four other frequently used tools on IRS.gov include: 
Request an Electronic Filing PIN
Find Answers to Your Tax Questions 
Check Status of Your Amended Return  
Renew or Obtain a PTIN for 2015
From access to tax forms, instructions and publications to online tools, such as the Interactive Tax Assistant, IRS.gov can answer most taxpayer questions — getting taxpayers the tax help they need, when they need it.
IRS information is also available through e-readers and other mobile devices as an eBook. If taxpayers still need printed forms or instructions, they can place their order online at IRS.gov/orderforms. Publication 17 is only available from the IRS online, and certain other products like Form 1040 EZ and Form 1099-Misc are not available at TACs this year. Similarly, the tax forms available from community partners, like libraries, have also been reduced. 
[The filing season statistics table follows.]
 

2014 FILING SEASON STATISTICS


Cumulative statistics comparing 3/14/14 and 3/13/15


Individual Income Tax Returns:


2014


2015


% Change

Total Receipts

75,101,000


74,455,000


-0.9

Total Processed

73,157,000


72,706,000


-0.6

 

 


 


 


E-filing Receipts:


 


 


 

TOTAL           

68,966,000


69,189,000


0.3

Tax Professionals

39,413,000


38,089,000


-3.4

Self-prepared

29,553,000


31,100,000


5.2

 

 


 


 


Web Usage:


 


 


 

Visits to IRS.gov

194,206,816


215,612,739


11

 

 


 


 


Total Refunds:


 


 


 

Number

61,645,000


60,320,000


-2.1

Amount

$179.793

Billion

$177.240

Billion

-1.4

Average refund

$2,917


$2,938


0.7

 

 


 


 


Direct Deposit Refunds:


 


 


 

Number

52,770,000


53,485,000


1.4

Amount

$158.983

Billion

$164.407

Billion

3.4

Average refund

$3,013


$3,074


2.0

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IR-2015-55, March 19, 2015
WASHINGTON — The Internal Revenue Service today reminded taxpayers who turned 70½ during 2014 that in most cases they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Wednesday, April 1, 2015.
The April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457 plans.
The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, a taxpayer who turned 70½ in 2014 and receives the first required payment on April 1, 2015, for example, must still receive the second RMD by Dec. 31, 2015. 
Affected taxpayers who turned 70½ during 2014 must figure the RMD for the first year using the life expectancy as of their birthday in 2014 and their account balance on Dec. 31, 2013. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Worksheets and life expectancy tables for making this computation can be found in the Appendices to Publication 590-B.
Most taxpayers use Table III (Uniform Lifetime) to figure their RMD. For a taxpayer who reached age 70½ in 2014 and turned 71 before the end of the year, for example, the first required distribution would be based on a distribution period of 26.5 years. A separate table, Table II, applies to a taxpayer married to a spouse who is more than 10 years younger and is the taxpayer’s only beneficiary.
Though the April 1 deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans, some people with workplace plans can wait longer to receive their RMD. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions. See Tax on Excess Accumulation in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.
The IRS encourages taxpayers to begin planning now for any distributions required during 2015. An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount in Box 12b on Form 5498. For a 2015 RMD, this amount would be on the 2014 Form 5498 that is normally issued in January 2015.
More information on RMDs, including answers to frequently asked questions, can be found on IRS.gov.
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Please see Taxpayer Guide to Identity Theft for updated information.
IR-2015-54, March 18, 2015
WASHINGTON — The Internal Revenue Service today reminded taxpayers who receive requests from the IRS to verify their identities that the Identity Verification Service website, idverify.irs.gov, offers the fastest, easiest way to complete the task. (NOTE: August 2016 — website no longer available. Refer to IDVerify for more information.)
Taxpayers may receive a letter when the IRS stops suspicious tax returns that have indications of being identity theft but contains a real taxpayer’s name and/or Social Security number. Only those taxpayers receiving Letter 5071C should access idverify.irs.gov.
The website will ask a series of questions that only the real taxpayer can answer.
Once the identity is verified, the taxpayers can confirm whether or not they filed the return in question. If they did not file the return, the IRS can take steps at that time to assist them. If they did file the return, it will take approximately six weeks to process it and issue a refund.
Letter 5071C is mailed through the U.S. Postal Service to the address on the return. It asks taxpayers to verify their identities in order for the IRS to complete processing of the returns if the taxpayers did file it or reject the returns if the taxpayers did not file it. The IRS does not request such information via email, nor will the IRS call a taxpayer directly to ask this information without you receiving a letter first. The letter number can be found in the upper corner of the page.
The letter gives taxpayers two options to contact the IRS and confirm whether or not they filed the return. Taxpayers may use the idverify.irs.gov site or call a toll-free number on the letter. Because of the high-volume on the toll-free numbers, the IRS-sponsored website, idverify.irs.gov, is the safest, fastest option for taxpayers with web access.
Taxpayers should have available their prior year tax return and their current year tax return, if they filed one, including supporting documents, such as Forms W-2 and 1099 and Schedules A and C.
Taxpayers also may access idverify.irs.gov through www.IRS.gov by going to Understanding Your 5071C Letter or the Understanding Your IRS Notice or Letter page. The tool is also available in Spanish. Taxpayers should always be aware of tax scams, efforts to solicit personally identifiable information and IRS impersonations. However, idverify.irs.gov is a secure, IRS-supported site that allows taxpayers to verify their identities quickly and safely.
IRS.gov is the official IRS website. Always look for a URL ending with “.gov” — not “.com,” “.org,” “.net,” or other nongovernmental URLs.
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Need More Time to File Your Tax Return?  English | Spanish | ASL
IR-2015-51, March 17, 2015
WASHINGTON — The Internal Revenue Service today reminded taxpayers who are unable to complete their tax returns on time that it’s easy to get more time to file their return. In fact, it can even be done online.
This is the ninth in a series of 10 daily IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as the April 15 deadline approaches. 
For taxpayers who haven’t yet filed their taxes, the IRS has this advice: don’t panic. Taxpayers who need more time to complete their tax return can request an automatic six-month extension.
The fastest and easiest way to get the extra time is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868.
Filing this form gives taxpayers until Oct. 15 to file a return. To get the extension, taxpayers must estimate their tax liability on this form and should also pay any amount due.
The IRS cautions taxpayers that a request for an extension will give extra time to file a tax return; not extra time to pay any taxes owed. By filing either a regular tax return or requesting an extension by the April 15 filing deadline, taxpayers will avoid a stiff penalty - the late-filing penalty. Taxpayers should file even if they can’t pay the full amount of taxes they owe.
The late-filing penalty, normally five percent per month based on the unpaid tax balance, applies to returns filed after the April 15 filing deadline. In addition, any payment made with an extension request will reduce or eliminate interest and late-payment penalties that apply to payments made after April 15. The interest rate is currently three percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month.
Besides Free File, taxpayers can choose to request an extension through a paid tax preparer, by using tax-preparation software or by filing a paper Form 4868 available on IRS.gov.
Some taxpayers get more time to file without having to ask for an extension. These include:
Taxpayers abroad. U.S. citizens and resident aliens who live and work abroad, as well as members of the military on duty outside the U.S., have until June 15 to file. Tax payments are still due April 15.
	 
Members of the military and others serving in Afghanistan or other combat zone localities. Typically, taxpayers can wait until at least 180 days after they leave the combat zone to file returns and pay any taxes due. For details, see Extensions of Deadlines in Publication 3, Armed Forces’ Tax GuidePDF.
	 
People affected by certain recent natural disasters.
Other tax tips in this Tax Time Guide series are available on IRS.gov.
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IR-2015-49, March 13, 2015  
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning April 1, 2015.  The rates will be: 
three (3) percent for overpayments [two (2) percent in the case of a corporation];
one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000
three (3) percent for underpayments; and
five (5) percent for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. 
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during January 2015 to take effect Feb. 1, 2015, based on daily compounding.
Revenue Ruling 2015-05PDF announcing the rates of interest is attached and will appear in Internal Revenue Bulletin 2015-13, dated March 30, 2015.
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IRS YouTube VideoSimplified Home Office Deduction: English | Spanish | ASL
IR-2015-47, March 12, 2015
WASHINGTON — The Internal Revenue Service today reminded people with home-based businesses filling out their 2014 federal income tax returns that they can choose a simplified method for claiming the deduction for business use of a home.
This is the sixth in a series of 10 daily IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as the April 15 deadline approaches. 
In tax year 2012, the most recent year for which figures are available, nearly 3.4 million taxpayers claimed deductions of more than $10 billion for business use of a home, which is commonly referred to as the home office deduction.
Introduced in tax year 2013, the optional deduction is designed to reduce the paperwork and recordkeeping burden for small businesses. The optional deduction is capped at $1,500 per year, based on $5 a square foot for up to 300 square feet.
Normally, home-based businesses are required to fill out a 43-line form (Form 8829) often with complex calculations of allocated expenses, depreciation and carryovers of unused deductions. Instead, taxpayers choosing the simplified method need only complete a short worksheet in the tax instructions and enter the result on their tax return. Self-employed individuals claim the home office deduction on Schedule C, Line 30; farmers claim it on Schedule F, Line 32; and eligible employees claim it on Schedule A, Line 21.
Though homeowners using the simplified method cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A. These deductions need not be allocated between personal and business use, as is required under the regular method.
Business expenses unrelated to the home, such as advertising, supplies and wages paid to employees, are still fully deductible. Long-standing restrictions on the home office deduction, such as the requirement that a home office be used regularly and exclusively for business and the limit tied to the income derived from the particular business, still apply under the simplified method.
Further details on the home office deduction and the simplified method can be found in Publication 587 on IRS.gov.
Other tips in the Tax Time Guide series are available on IRS.gov.
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IR-2015-46, March 12, 2015
WASHINGTON — Americans have turned to IRS.gov nearly 200 million times so far this tax filing season where they can find answers on topics ranging from tax preparation to checking their refund status. This is a 10 percent increase in comparison to the same time last year, according to IRS statistics released today.
In addition to various interactive tools, IRS.gov is the gateway to many more resources and answers about many tax matters. Try Interactive Tax Assistant, Tax Topics, Tax Trails, Frequently Asked Questions, and the IRS Tax Map.
Taxpayers can easily and quickly view or download any IRS form, publication or instruction booklet by visiting IRS.gov. If taxpayers still need printed forms or instructions, they can place their order online at IRS.gov/orderforms. Publication 17, and certain other products are not available at TACs this year. Similarly, the tax forms available from community partners, like libraries, have also been reduced.
Even after taxpayers file, there are more online tools that can provide them with valuable assistance long after tax season ends. One of the most popular is the Where’s My Refund? tool available on IRS.gov or IRS2Go that enables taxpayers to track the status of their refund. Initial information will normally be available within 24 hours after the IRS receives the taxpayer’s e-filed return or four weeks after the taxpayer mails a paper return to the IRS. The system updates every 24 hours, so there’s no need to check more often.
[The filing season statistics table follows.]
 

2014 FILING SEASON STATISTICS


Cumulative statistics comparing 3/07/14 and 3/06/15

Individual Income Tax Returns:

2014


2015


% Change

Total Receipts

67,183,000


66,700,000


-0.7

Total Processed

65,662,000


64,900,000


-1.2

 

 


 


 

E-filing Receipts:

 


 


 

TOTAL           

62,213,000


62,342,000


0.2

Tax Professionals

34,816,000


33,419,000


-4.0

Self-prepared

27,397,000


28,923,000


5.6

 

 


 


 

Web Usage:

 


 


 

Visits to IRS.gov

179,637,790 


198,440,750 


10.5

 

 


 


 

Total Refunds:

 


 


 

Number

55,434,000


54,258,000


-2.1

Amount

$164.586

Billion

$162.106

Billion

-1.5

Average refund

$2,969


$2,988


0.6

 

 


 


 

Direct Deposit Refunds:

 


 


 

Number

47,976,000


48,699,000


1.5

Amount

$146.305

Billion

$151.554

Billion

3.6

Average refund

$3,050


$3,112


2.0

 
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When Will I Get My Refund?: English | Spanish | ASL
IR-2015-45, March 11, 2015
WASHINGTON — The Internal Revenue Service today reminded taxpayers that they can quickly check the status of their tax return and refund through “Where’s My Refund?”
This is the fifth in a series of 10 daily IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as the April 15 deadline approaches. 
Taxpayers who have not yet received their refunds can use “Where’s My Refund?” on IRS.gov or on the smartphone application IRS2Go 5.0 to find out about the status of their income tax refunds.
Initial information will normally be available within 24 hours after the IRS receives the taxpayer’s e-filed return or four weeks after the taxpayer mails a paper return to the IRS. The system updates only once every 24 hours, usually overnight, so there’s no need to check more often.
"Where's My Refund? is the quickest and easiest way for taxpayers to get important information about their tax refund," said IRS Commissioner John Koskinen. "Taxpayers need to remember that the Where’s My Refund system is updated every 24 hours, usually overnight, so there's no need to check more than once a day."
So far this year, “Where’s My Refund?” has received more than 179 million hits on IRS.gov.
Taxpayers should have their Social Security number, filing status and exact refund amount when accessing Where’s My Refund?
Other tips in the Tax Time Guide series are available on IRS.gov.
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IRS YouTube VideoWelcome to Free File: English
IR-2015-40, March 6, 2015
WASHINGTON — The Internal Revenue Service today reminded the millions of taxpayers who have yet to file their taxes that Free File remains available.
Available only at IRS.gov/FreeFile, the Free File service makes brand-name tax software products and electronic filing available to most taxpayers for free.
This is the second in a series of 10 daily IRS tips called the Tax Time Guide These tips are designed to help taxpayers navigate common tax issues as the April 15 deadline approaches.
Taxpayers have the option to prepare their return at any time and schedule a tax payment as late as the April 15deadline. Taxpayers who cannot meet the April tax filing deadline can also use Free File to file a six-month extension.
Through a partnership between the IRS and the Free File Alliance, a consortium of 14 leading tax software companies make their branded products available for free. Since 2003, more than 43 million people have used Free File, saving $1.3 billion based on a conservative $30-fee estimate.
Anyone who earned $60,000 or less last year qualifies to choose from among 14 software products. Those who earned more than 60,000 are still eligible for Free File Fillable Forms, the electronic version of IRS paper forms. This more basic Free File option is best for people who are comfortable preparing their own tax return.
More than 70 percent of all taxpayers — 100 million people — are eligible for the software products. Each of the 14 companies has its own special offers, generally based on age, income or state residency. Taxpayers can review each company offer or they can use a “Help Me” tool that will find the software for which they are eligible.
Wondering How to Use Free File?PDF Free File offers easy-to-use products that ask questions and the taxpayer supplies the answers. The software will find the right forms, find the right tax credits and deductions and even do the math. Some companies also offer free state tax return preparation.
Free File also can help taxpayers with the new health carePDF requirements. Most people will simply have to check a box to report health care coverage for the entire year. Learn more at IRS.gov/aca.
Free File will be available through October 2015 only through IRS.gov/FreeFile.
Other tips in the Tax Time Guide series are available on IRS.gov.
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