The IRS is also sending clear warnings to people who used payment apps like PayPal, Venmo or Cash App, as well as guidance on a surprise $1,776 payment that many families received. Some changes are meant to prevent fraud, while others are designed to clarify tax rules. But if you are not prepared, they could…
Many student loan borrowers who get their debt forgiven in 2026 can expect a hefty tax bill next year. That’s because a law that shielded the relief from taxation at the federal level — part of the American Rescue Plan Act of 2021 — expired in December. READ MORE
After shedding more than a quarter of its employees last year, the IRS is looking for opportunities to eliminate and consolidate office space. Before the Trump administration, the IRS workforce had about 100,000 employees, but now has fewer than 75,000 full-time staff. Most employees either accepted voluntary separation incentives or retired. READ MORE
Holly Paz, a former top tax compliance leader at the IRS, reached an agreement with the agency this week after she sued over the leak of her employment data to media outlets. Paz is no longer employed by the IRS, according to a person familiar with the situation. She filed a voluntary dismissal of the…
The IRS is reminding taxpayers that if their 2025 tax return claims either the Earned Income Tax Credit or the Additional Child Tax Credit, it could be subject to delays. That’s because of a provision that prevents the IRS from issuing any refunds tied to those claims until after mid-February, no matter when you file…
Americans are expecting hundreds of billions in tax refunds this year, with the average refund expected to be about $3,800 for the 2026 tax season, according to recent reports. And, with millions of people carrying record levels of debt right now — household debt now exceeds $18.5 trillion — the tax refunds issued by the…
The IRS said in a statement that it will continue operations under the current lapse in appropriations until further notice, using funding from 2022 legislation. Taxpayers can expect IRS operations to continue as normal, with offices maintaining regular hours, online self-service help tools available and other services continuing as usual. READ MORE
The Internal Revenue Service is asking seasoned employees without any direct tax experience to perform entry-level tasks of answering phones and processing tax returns, a step impacted staff call unprecedented as the agency scrambles to prepare for filing season. The reassigned workers, who are being detailed out on an involuntary basis, are coming from the…
The Internal Revenue Service (IRS) deadline for filing certain tax forms—January 31, 2026—has now passed, and penalties may apply for filings that are either late, incorrect, or not sent to recipients on time. Read More
The tax cut isn’t coming from the federal government, but a handful of states. Eight states, including Kentucky, lowered their income tax rate, effective Jan. 1, according to the nonprofit thinktank Tax Foundation. Read more
