Internal Revenue Service (IRS)

 

Scheduling Passport Services

congressionalpassportservices.pdf  (121.34 KB)

 

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Filing Your 2021 Tax Return

This year, it’s especially important for individuals to electronically file a complete and accurate 2021 tax return any time before the October deadline, even if they requested a filing extension. They should not mail a paper return if they don’t have to.

 The IRS is continuing to process a high volume of returns and expects taxpayers to file millions more 2021 tax returns around the Oct. 17 extension deadline. Filing electronically is fast, secure, convenient and the best way to avoid errors. Using e-file helps the IRS process returns, apply tax payments and issue refunds faster.

Still need to file a 2021 tax return?Click here.

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For Taxpayers — 8/26/22 Update

Because of delays and problems processing 2019 and 2020 returns, the IRS is waiving late-filing penalties for a broad range of returns. This waiver includes most Form 1040 and 1120 series returns, Forms 1041, 1065, 1066, 990-T, and 990-PF and accompanying information forms.  Please note, however, this waiver does not cover penalties for late payment of tax.  For a complete list of the affected returns and exceptions, see IRS Notice 2022-36 on IRS.gov.

Taxpayers must file their federal tax returns by September 30, 2022, to be eligible for this relief. Therefore, please urge any of your constituents who have not yet filed their 2019 and/or 2020 federal income tax returns to do so by that date.  Late filing penalties will be charged on returns filed on or after October 1, 2022.

Taxpayers who are eligible for this relief don’t need to do anything. The IRS will automatically remove all eligible late-filing penalties on their 2019 and 2020 returns. If they previously paid a penalty eligible for removal, the IRS will automatically issue a refund (probably by mailing a check) and send a notice to the taxpayer’s last known address.  Although the relief is not all inclusive, the IRS estimates well over 4 million penalties will be abated and over 1.5 million refunds will be generated.

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Tips For 2021 Tax Season 

This will be a challenging filing season for many. The IRS has issued the following Fact Sheets to help people prepare complete and accurate 2021 returns:

IRS Fact Sheets can be found at Fact Sheets | Internal Revenue Service (irs.gov).

More resources and information on IRS.gov can be found at:

  • On February 9, the IRS announced a suspension of more than a dozen additional letters. This includes the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return.
  • This filing season began with several million original and amended returns filed by individuals and businesses that had not been processed. The IRS is suspending these letters to help avoid confusion for taxpayers and tax professionals.
  • These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices.
  • Important information and a list of the additional notices/letters being suspended is in IRS News Release 2022-31, IRS continues work to help taxpayers; suspends mailing of additional letters. 

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Information On Economic Impact Payments (EIP)

Key Points:

  • The eighth batch of Economic Impact Payments disbursed under the American Rescue Plan are now being delivered
  • This batch includes over 1.1 million payments totaling over $2 billion
  • More than 585,000 payments, with a value of over $1.2 billion, went to eligible individuals for whom the IRS did not previously have information to issue an Economic Impact Payment but who recently filed a tax return
  • More than 570,000 “plus up” payments, with a value of nearly $1 billion, went to people who earlier this year received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns
  • This brings total EIPs disbursed under the ARP so far to approximately 164 million payments, with a total value of approximately $386 billion

The IRS will continue to make Economic Impact Payments on a weekly basis. Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for “plus-up” payments.

Individuals can check the Get My Payment tool on IRS.gov to see the payment status of these payments.

Additional information on Economic Impact Payments is available on IRS.gov.

For additional questions about the IRS or our services, please contact one of our offices!

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Advance Child Tax Credit Payments in 2021

The IRS is sending letters to more than 36 million families who may qualify for monthly Child Tax Credits; payments start July 15.

Key Points:

  • The IRS has begun sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July.
  • The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March.
  • Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15.
  • Most families do not need to take any action to get their payment. Normally, the IRS will calculate the payment amount based on the 2020 tax return.  If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS will instead determine the payment amount using the 2019 return.
  • Eligible families will begin receiving advance payments, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17.
  • The IRS will issue advance Child Tax Credit payments on July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
  • The IRS urges individuals and families who haven’t yet filed their 2020 return – or 2019 return – to do so as soon as possible so they can receive any advance payment they’re eligible for.
  • Filing soon will also ensure that the IRS has their most current banking information, as well as key details about qualifying children. This includes people who don’t normally file a tax return, such as families experiencing homelessness, the rural poor, and other underserved groups.
  • For most people, the fastest and easiest way to file a return is by using the Free File system, available only on IRS.gov.
  • Throughout the summer, the IRS will be adding additional tools and online resources to help with the advance Child Tax Credit. One of these tools will enable families to unenroll from receiving these advance payments and instead receive the full amount of the credit when they file their 2021 return next year.
  • The IRS has created a special Advance Child Tax Credit 2021 page at IRS.gov/childtaxcredit2021, designed to provide the most up-to-date information about the credit and the advance payments.  In the next few weeks, the page will include an online Child Tax Credit Update Portal.

You can find the currently available information and more details at Advance Child Tax Credit Payments in 2021 on IRS.gov. As noted above, information on this IRS.gov page will be updated as more details are available.

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Offer In Compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. The IRS may consider your unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

The IRS generally approves an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.

Use this tool to see if you may be eligible for an offer in compromise (OIC).

For more information on the Offer in Compromise program, visit IRS.gov.