This is our brand new and refreshed website. Check it out!
About 3 million Form 1040-X, Amended U.S. Individual Income Tax Return, are filed annually. The IRS announced that Form 1040-X can now be filed electronically using commercial tax-filing software (IR-2020-182, 8/17/20). This filing option should simplify the process of amending returns and speed up IRS responses (e.g., refunds claimed on amended returns). Initially, only 2019 [...]
Federal law limiting the itemized deduction for state and local taxes to $10,000 ($5,000 for married persons filing separately) prompted a number of states, including Connecticut, New Jersey, and New York, to create “workarounds.” These are designed to help certain residents maintain their write-offs. One such workaround involves making charitable contributions in exchange for state [...]
The IRS reports statistics on its filing season (https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-july-24-2020). Through July 24, 2020, 152,875 income tax returns were filed for individuals, compared with 146,342,000 through July 27, 2019. Of these returns, there was a 23% increase in self-prepared returns filed electronically. The number of refunds, however, fell 3.1% as compared with last year. The average [...]
The statute of limitations is the period in which the IRS has to audit your return or in which you can file a claim for refund. If this period expires, the IRS usually can’t audit you (there is an exception for fraud) and you can’t obtain a refund even though otherwise eligible for it. What [...]