IRS announces tax relief for Arkansas storm victims; various deadlines postponed to Nov 3 Internal Revenue Service

In addition, the notice invites public comment on the matters discussed in the notice and suggestions for the future. For taxpayers who file a paper return, refund information is normally available four weeks after filing. The “Where’s My Refund?” tool updates overnight, so there’s no need to check it more than once a day.

How Do I Know If I Owe Money To The Irs From Past Taxes

• However, the usual interest and late-payment penalty charges will continue to accrue during this period.
• As part of the 2017 tax reform law, sole proprietors and owners of pass-through businesses like LLCs, S corporations, and partnerships may be eligible for a deduction of up to 20% to lower the tax rate for qualified business income.
• Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Los Angeles County qualify for tax relief.

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of California affected by wildfires and straight-line winds that began on Jan. 7, 2025. These taxpayers now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments. WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in Arkansas that were affected by severe storms, tornadoes and flooding that began on April 2, 2025.

• Employers who have paid ACA employer mandate penalties should engage qualified legal or tax professionals to evaluate whether the penalty was assessed without HHS certification and whether the ruling in Faulk Company applies to their specific situation.
• This will ensure people who unnecessarily get these forms don’t have to pay taxes they don’t owe.
• The payment on a Form 1099-K may be reported in different places on your tax return depending on what kind of payment it is.
• The Treasury Department and the IRS plan to issue future guidance to help taxpayers, and the notice describes several positions that are expected to be included.
• Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in all 78 municipalities qualify for tax relief.

Covered disaster area

The agency added that with about half of all returns expected to be filed with the help of a tax professional, taxpayers should use a trusted tax pro to avoid potential scams and schemes. The Form 1099-K could be sent to anyone who’s using payment apps or online marketplaces to accept payments for selling goods or providing services. This includes people with side hustles, small businesses, crafters and other sole proprietors. The agency is making 2023 another transition year to implement the new requirements under the American Rescue Plan that changed the Form 1099-K reporting threshold for payments taxpayers get selling goods or providing a service over $600. The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. The Treasury Department and the irs announces e IRS plan to issue future guidance to help taxpayers, and the notice describes several positions that are expected to be included.

Irs Internal Revenue Services Fax Number – Taxes Fax Machine

The IRS will waive the usual fees for requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned FEMA declaration number (4866-DR), in bold letters at the top of Form 4506, Request for Copy of Tax Return PDF, or Form 4506-T, Request for Transcript of Tax Return, as appropriate PDF, and submit it to the IRS. Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Cleveland, Creek, Lincoln, Oklahoma, Pawnee, and Payne counties qualify for tax relief. The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

For instance, certain deadlines falling on or after March 14, 2025, and before Nov. 3, 2025, are granted additional time to file. Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Each plan or IRA has specific rules and guidance for their participants to follow.

IRS statement on delay in processing some electronic payments

Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 4866-DR on any return. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 3624-EM on any return. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 3627-EM on any return.

However, it could also include casual sellers who sold personal stuff like clothing, furniture and other household items that they paid more than they sold it for. Selling items at a loss is not actually taxable income but would have generated many Forms 1099-K for many people with the $600 threshold. WASHINGTON — Today, the Internal Revenue Service announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher‑income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions. Direct File is similar to commercial tax software and allows taxpayers to opt in to a data import tool to automatically import information from their IRS account – such as personal information, the taxpayer’s IP PIN and certain information from their W-2 form.

Personal exemptions used to decrease your taxable income before you determined the tax due. You were generally allowed one exemption for yourself (unless you could be claimed as a dependent by another taxpayer), one exemption for your spouse if you filed a joint return, and one personal exemption for each of your dependents—but that’s no longer the case. Notably, this is one of the provisions that could be affected if the Tax Cuts and Jobs Act (TCJA) is allowed to “sunset” or expire at the end of 2025 (as the law is currently written). This tax filing season will also see new tools available to taxpayers amid the IRS’ modernization efforts. Among the improvements include more access to tax account information from text and voice virtual assistants, expanded features on the IRS individual online account, more access to dozens of tax forms for cell phone and tablet users, plus expanded alerts for scams and schemes targeting taxpayers.

For 2025, a high-deductible health plan (HDHP) is one that, for participants who have self-only coverage in an MSA, has an annual deductible that is not less than $2,850 (an increase of $50 from 2024) but not more than $4,300 (an increase of $150 from 2023). For participants with family coverage, an annual deductible that is not less than $5,700 (a boost from $5,550 in 2024) but not more than $8,550 in 2025 (up from $8,350 in 2024). For self-only coverage, the maximum out-of-pocket expense amount is $5,700 in 2024, an increase of $150 from 2024. For family coverage in 2025, the maximum out-of-pocket expense amount is $10,500 in 2025, an increase of $300 from 2024. In 2025, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $325, an increase of $10 from the 2024 amount. The AMT exemption amount for tax year 2025 for single filers is $88,100 and begins to phase out at $626,350 (in 2024, the exemption amount for single filers was $85,700 and began to phase out at $609,350).

Reminder about tax return preparation options

The Feb. 3, 2025, deadline also applies to any payment normally due during this period, including the quarterly estimated tax payments due on Sept. 16, 2024, and Jan. 15, 2025, and the quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 31, 2025. In addition, penalties on payroll and excise tax deposits due on or after Aug. 13, 2024, and before Aug. 28, 2024, will be abated as long as the tax deposits are made by Aug. 28, 2024. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 4867-DR on any return. In this instance, the 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election.