WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. “This continues to be a tough…

WASHINGTON – The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week. Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients will start receiving as early as this weekend, and…

Identity theft has become a very serious problem. The Internal Revenue Services offers additional protection if you believe your identity has been stolen or compromised in any way. An Identity Protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayer’s Social Security number. The IP PIN is…

Social Security recipients got a 1.3% raise for 2021, compared with the 1.6% hike beneficiaries received in 2020. Maximum earnings subject to the Social Security tax also increased—from $137,700 a year to $142,800. Other changes for 2021 included an increase in how much money working Social Security recipients can earn before their benefits are reduced…

All taxpayers have fundamental rights when they’re interacting with the IRS. These rights apply all year long, not just during tax season. The Taxpayer Bill of Rights presents these rights in 10 categories. Here’s an overview of these rights and links to details about each one: The right to be informed Taxpayers have the right…

It is cold and dreary and the last thing you want to do is mess with taxes. The IRS opened for filing on February 12 so now is the time to schedule your appointment. Go go my website: pedersonaccountingservices.com. Next to my telephone number is the button that says Schedule. The times shown are when…

After a tumultuous year that has upended traditional employment, millions of Americans could face income-tax surprises. One way to reduce the odds of owing a big bill to Uncle Sam — or paying out too much and thus giving an interest-free loan to the government — is to check your withholding. More than a year…

Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential credit worthiness. Generally speaking, the higher your credit score, the less of a credit risk borrowers will perceive you to be. If you have a low FICO score, then you could be deemed…

WASHINGTON —The Internal Revenue Service is reminding taxpayers that organizing tax records is an important first step for getting ready to prepare and file their 2020 tax return. Taxpayers should keep all necessary records, such as W-2s, 1099s, receipts, canceled checks and other documents that support an item of income, or a deduction or credit,…

WASHINGTON – The Internal Revenue Service today urged people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov. The IRS and the…