Top 5 things to remember when filing income tax returns in 2022
IR-2022-16, January 20, 2022
WASHINGTON — With filing season beginning January 24, the Internal Revenue Service reminded taxpayers about several key items to keep in mind when filing their federal income tax returns this year.
Given the unprecedented circumstances around the pandemic and unique challenges for this tax season, the IRS offers a 5-point checklist that can help many people speed tax return processing and refund delivery while avoiding delays.
1. File an accurate return and use e-file and direct deposit to avoid delays. Taxpayers should electronically file and choose direct deposit as soon as they have everything they need to file an accurate return. Taxpayers have many choices, including using a trusted tax professional. For those using e-file, the software helps individuals avoid mistakes by doing the math. It guides people through each section of their tax return using a question-and-answer format.
2. For an accurate return, collect all documents before preparing a tax return; make sure stimulus payment and advance Child Tax Credit information is accurate. In addition to collecting W-2s, Form 1099s and other income-related statements, it is important people have their advance Child Tax Credit and Economic Impact Payment information on hand when filing.
3. Avoid lengthy phone delays; use online resources before calling the IRS. Phone demand on IRS assistance lines remains at record highs. To avoid lengthy delays, the IRS urges people to use IRS.gov to get answers to tax questions, check a refund status or pay taxes. There's no wait time or appointment needed — online tools and resources are available 24 hours a day.
Additionally, the IRS has several ways for taxpayers to stay up to date on important tax information:
5. Free resources are available to help taxpayers file. During this challenging year, the IRS reminds taxpayers there are many options for free help, including many resources on IRS.gov. For those looking to avoid the delays with a paper tax return, IRS Free File is an option. With Free File, leading tax software providers make their online products available for free as part of a 20-year partnership with the Internal Revenue Service. This year, there are eight products in English and two in Spanish. IRS Free File is available to any person or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
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FRANCHISE TAX BOARD
Beware of Scams as New Tax Season Begins
1/12/2022
Sacramento — With a new tax season under way, the Franchise Tax Board (FTB) reminds taxpayers to take steps to protect themselves from scam artists seeking to steal refunds and identities.
“As a new tax year begins, it is important that taxpayers stay vigilant and be aware of the latest tactics scammers use, so they can avoid falling victim to fraud or identity theft,” said State Controller Betty T. Yee, who chairs the FTB.
Scammers often prey on taxpayers by impersonating Internal Revenue Service (IRS) or FTB employees. The most common fraud-related complaints FTB sees tend to involve a taxpayer receiving a phone call, letter, or email asking for their personal information to either release their refund or process their tax return.
While some of these complaints turn out to be based on legitimate requests or calls from the IRS or FTB, taxpayers are encouraged to remain on high alert whenever they receive a request for personal information.
If FTB or IRS needs to reach a taxpayer to verify a return or discuss a bill, both agencies begin by sending a letter via postal mail. If the taxpayer does not respond, the FTB or IRS may reach out by phone, with courteous agents clearly identifying themselves. Further, neither agency will threaten a taxpayer nor demand immediate tax payment over the phone.
Taxpayers should be suspicious of the following:
If you receive a letter purporting to be from FTB or the IRS that appears suspicious, contact the FTB at 800-852-5711 or the IRS at 800-829-1040 to verify authenticity. Taxpayers may also check the “Letters” webpage at ftb.ca.gov or the “Understanding Your IRS Notice or Letter” webpage at irs.gov.
If you receive a suspicious inquiry regarding a tax settlement program with FTB, please contact us at 916-845-4787. You can also find additional information at the Offer In Compromise webpage.
Taxpayers are urged to report suspected tax scams and identity theft schemes to FTB as soon as possible, preferably online. The IRS offers a list of common scams and encourages taxpayers to forward phishing scam emails to the IRS at [email protected].
Unfortunately, tax preparers have increasingly become targets for cybercriminals. Sophisticated scammers steal personal data from tax preparers and businesses. Preparers and business owners who believe they have been targeted should contact FTB at 916-845-7088 and select option “1.”
FTB administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit: taxes.ca.gov.
IR-2022-16, January 20, 2022
WASHINGTON — With filing season beginning January 24, the Internal Revenue Service reminded taxpayers about several key items to keep in mind when filing their federal income tax returns this year.
Given the unprecedented circumstances around the pandemic and unique challenges for this tax season, the IRS offers a 5-point checklist that can help many people speed tax return processing and refund delivery while avoiding delays.
1. File an accurate return and use e-file and direct deposit to avoid delays. Taxpayers should electronically file and choose direct deposit as soon as they have everything they need to file an accurate return. Taxpayers have many choices, including using a trusted tax professional. For those using e-file, the software helps individuals avoid mistakes by doing the math. It guides people through each section of their tax return using a question-and-answer format.
2. For an accurate return, collect all documents before preparing a tax return; make sure stimulus payment and advance Child Tax Credit information is accurate. In addition to collecting W-2s, Form 1099s and other income-related statements, it is important people have their advance Child Tax Credit and Economic Impact Payment information on hand when filing.
- Advance CTC letter 6419: In late December 2021, and continuing into January, the IRS started sending letters to people who received advance CTC payments. The letter says, "2021 Total Advance Child Tax Credit (AdvCTC) Payments" near the top and, "Letter 6419" on the bottom righthand side of the page. Here's what people need to know:
- The letter contains important information that can help ensure the tax return is accurate.
- People who received advance CTC payments can also check the amount of the payments they received by using the CTC Update Portal available on IRS.gov.
- Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return.
- Third Economic Impact Payment letter 6475: In late January 2022, the IRS will begin issuing letters to people who received a third payment in 2021. The letter says, "Your Third Economic Impact Payment" near the top and, "Letter 6475" on the bottom righthand side of the page. Here's what people need to know:
- Most eligible people already received their stimulus payments. This letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit (RRC) for missing stimulus payments.
- People who are eligible for RRC must file a 2021 tax return to claim their remaining stimulus amount.
- People can also use IRS online account to view their Economic Impact Payment amounts.
3. Avoid lengthy phone delays; use online resources before calling the IRS. Phone demand on IRS assistance lines remains at record highs. To avoid lengthy delays, the IRS urges people to use IRS.gov to get answers to tax questions, check a refund status or pay taxes. There's no wait time or appointment needed — online tools and resources are available 24 hours a day.
Additionally, the IRS has several ways for taxpayers to stay up to date on important tax information:
- Follow the IRS' official social media accounts and email subscription lists to stay current on the latest tax topics and alerts.
- Download the IRS2Go mobile app, watch IRS YouTube videos, or follow the IRS on Twitter, Facebook, LinkedIn and Instagram for the latest updates on tax changes, scam alerts, initiatives, products and services.
- Taxpayers can also get information in their preferred language. The IRS translates tax resources into several languages and currently has basic tax information in 20 languages. People can also file Schedule LEP, Request for Change in Language Preference, to receive written communications from the IRS in their preferred language.
5. Free resources are available to help taxpayers file. During this challenging year, the IRS reminds taxpayers there are many options for free help, including many resources on IRS.gov. For those looking to avoid the delays with a paper tax return, IRS Free File is an option. With Free File, leading tax software providers make their online products available for free as part of a 20-year partnership with the Internal Revenue Service. This year, there are eight products in English and two in Spanish. IRS Free File is available to any person or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
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FRANCHISE TAX BOARD
Beware of Scams as New Tax Season Begins
1/12/2022
Sacramento — With a new tax season under way, the Franchise Tax Board (FTB) reminds taxpayers to take steps to protect themselves from scam artists seeking to steal refunds and identities.
“As a new tax year begins, it is important that taxpayers stay vigilant and be aware of the latest tactics scammers use, so they can avoid falling victim to fraud or identity theft,” said State Controller Betty T. Yee, who chairs the FTB.
Scammers often prey on taxpayers by impersonating Internal Revenue Service (IRS) or FTB employees. The most common fraud-related complaints FTB sees tend to involve a taxpayer receiving a phone call, letter, or email asking for their personal information to either release their refund or process their tax return.
While some of these complaints turn out to be based on legitimate requests or calls from the IRS or FTB, taxpayers are encouraged to remain on high alert whenever they receive a request for personal information.
If FTB or IRS needs to reach a taxpayer to verify a return or discuss a bill, both agencies begin by sending a letter via postal mail. If the taxpayer does not respond, the FTB or IRS may reach out by phone, with courteous agents clearly identifying themselves. Further, neither agency will threaten a taxpayer nor demand immediate tax payment over the phone.
Taxpayers should be suspicious of the following:
- Any phone call or email requesting passwords or information about credit cards or bank accounts.
- FTB and IRS agents never ask for these details.
- Threats to contact local police or other law enforcement if a tax debt is not paid.
- Demands for payment via third-party or pre-paid debit cards.
- Claims that they can settle tax debt for pennies on the dollar.
- There are legitimate tax professionals that can help you make a valid offer or settlement request.
- Ghost Preparers.
- A ghost preparer does not sign a tax return they prepare. They will print the return and tell the taxpayer to sign and mail it to the IRS or FTB. For e-filed returns, the ghost will prepare but refuse to digitally sign as the paid preparer, which should raise suspicions.
If you receive a letter purporting to be from FTB or the IRS that appears suspicious, contact the FTB at 800-852-5711 or the IRS at 800-829-1040 to verify authenticity. Taxpayers may also check the “Letters” webpage at ftb.ca.gov or the “Understanding Your IRS Notice or Letter” webpage at irs.gov.
If you receive a suspicious inquiry regarding a tax settlement program with FTB, please contact us at 916-845-4787. You can also find additional information at the Offer In Compromise webpage.
Taxpayers are urged to report suspected tax scams and identity theft schemes to FTB as soon as possible, preferably online. The IRS offers a list of common scams and encourages taxpayers to forward phishing scam emails to the IRS at [email protected].
Unfortunately, tax preparers have increasingly become targets for cybercriminals. Sophisticated scammers steal personal data from tax preparers and businesses. Preparers and business owners who believe they have been targeted should contact FTB at 916-845-7088 and select option “1.”
FTB administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit: taxes.ca.gov.