5 Things The IRS Wants You To Know

5 things the IRS wants you to know

GK Tax and Accounting

1. File your 2021 tax return electronically with the option of direct deposit for any refunds due. In a system already severely backlogged, taxpayers who file paper returns and request a paper refund check will not be serviced any time soon. The last day to file (without extending) is April 18th, 2022.

2. Most people who file their returns electronically with direct deposit can expect a refund within 21 days of filing.

3. If you have questions for the IRS, the best way to find your answer is to go online to IRS.gov, create an online account (if you don’t have one already) and search for results. Phone lines are consistently jammed, and despite dedicated lines, even tax professionals are unable to get through.

4. New IRS Letters for 2021 - IRS Letter 6419 and IRS Letter 6475: IRS Letter 6419 is being sent to anyone that received an advanced child tax credit payment and reflects the amount paid out to the taxpayer. Reporting the correct amount is very important as it will determine whether the taxpayer is eligible for any additional child tax credits. IRS Letter 6475 is being sent to people who have received a third stimulus payment in 2021. The letter will help determine whether the taxpayer is eligible to claim the recovery rebate credit, a credit that will either reduce taxes owing or be included in your tax refund. An individual will qualify for this credit if it is determined that they did not receive the third stimulus payment but should have or that they received less than the full amount.

5. Form 1099-K – this form will be issued to taxpayers (or their small businesses) from each payment settlement entity from which they received payments in settlement of reportable payment transactions. A reportable payment transaction is defined as a payment card transaction or a third-party network transaction. It is important that a business’ books and records reflect business income, including amounts reported on this form.