It’s official – IRS releases this notice affecting all taxpayers

By Lucas

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It’s official – IRS releases this notice affecting all taxpayers

Calculating what you owe the IRS is not an easy task. Especially if you want to take advantage of the various credits, tools, and other benefits that come with implementing a strong tax strategy, it is a time-consuming process that requires your complete attention.

Choosing the best method for submitting your tax returns will affect how much you pay and whether you pay according to federal and state rules. Making a mistake during this process will result in more time and, worse, significant fines that may have a long-term impact on your finances.

Although it is best to consult with a specialized professional, such as a tax accountant, you can (and should) educate yourself on how the process works and what types of supporting documents, forms, and steps are required to complete your taxes and comply with IRS regulations.

If you are unfamiliar, join us as we explore the resources made available by the IRS to help you navigate this process more smoothly.

What are the first steps the IRS wants you to take when filing taxes?

The first step is to create or access your IRS account. The IRS has created a portal where you can obtain important information about your tax history, such as your most recent tax return or adjusted gross income. It will also give you access to records of your previous salary and other earnings.

You can also read the most recent IRS communications to keep up with how the filing process has evolved. Once you’ve gathered all of the necessary information, you can proceed with your tax payments or request a payment plan modification.

If you have hired a specialized professional, he can use the account to manage your tax affairs and be granted power of attorney. Finally, you can choose how you want to be contacted by the IRS and track the status of your return.

The second step is to organize your entire taxpayer record. They include Form W-2 from your employer, Form 1099 from banks (which may be related to unemployment compensation, dividends, pensions, or retirement plan distributions), Form 1099-K or 1099-MISC for gig economy income, Form 1099-INT for interest, and other documents or records pertaining to your digital asset transactions.

It’s official – IRS releases this notice affecting all taxpayers
Source (Google.com)

How does the IRS connect all your information?

If you live in the United States, you have a Social Security Number (SSN), which is a code that summarizes your entire financial history. If you are not eligible for one, obtaining an Individual Taxpayer Identification Number (ITIN) is your best option.

It is critical to remember that an ITIN expires if it is not used on a tax return for three years in a row. For example, if you did not use it in the returns for 2021, 2022, or 2023, it would have expired by December 31, 2024.

Having an ITIN will make other daily tasks easier, such as opening a bank account or receiving a tax refund. If your ITIN has expired, you may still be able to file your tax return.

However, your tax credits may take longer, causing your tax refunds to be delayed. Whether you use your SSN or ITIN to file your taxes, you should protect your IRS account by obtaining an IP PIN, a six-digit number that serves as an additional security measure to prevent an unauthorized party from filing a federal tax return on your behalf. To obtain one, log into your IRS online account.

If you want to expedite your tax return, the best option is to file it electronically and use direct deposit rather than an outdated paper check.

Assume you do not have a bank account to receive your tax return. In that case, you can open one, enroll in the Veterans Benefits Banking program (if you are a veteran), or use prepaid debit cards or mobile applications.

Also See:- Social Security confirms – Here’s how you can get the back retirement benefits you’re owed – before this deadline

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