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Daily News 2018

Below please find daily updates pertaining to the latest in financial, business, and tax news:

Is it really the IRS calling?

Many taxpayers have encountered individuals impersonating IRS officials – in person, over the telephone and via email. Don’t get scammed. We want you to understand how and when the IRS contacts taxpayers and help you determine whether a contact you may have received is truly from an IRS employee.

The IRS initiates most contacts through regular mail delivered by the United States Postal Service.

However, there are special circumstances in which the IRS will call or come to a home or business, such as when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or during criminal investigations.

To understand how and when the IRS contacts taxpayers and determine if it’s truly the IRS see: How to know it’s really the IRS calling or knocking on your door.

 

Consumer Alerts on Tax Scams

‪Note that the IRS will never:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
  • Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  • Ask for credit or debit card numbers over the phone.

For more information on tax scams, please see Tax Scams/Consumer Alerts. For more information on phishing scams, please see Suspicious e-Mails and Identity Theft.

 

 

 

Are Pennsylvania Lottery prizes taxable?

Updated 08/25/2016 01:19 PM

Yes. Beginning with prizes paid January 1, 2016, Pennsylvania Lottery monetary prizes are taxable income and should be reported by winners when filing federal and state taxes.

Under law, Lottery cash prizes over $5,000 are subject to withholding. This means that the Lottery will withhold 25 percent in federal taxes and 3.07 percent in state taxes before paying the prize.

For all prizes of $600 or more, winners will receive a W-2G form from the Lottery to submit with their tax returns. These forms usually arrive by mail in February for prizes awarded in the preceding calendar year.

A winner's total tax liability on Lottery prizes depends on factors including income, deductions, exemptions and other factors, so please consult a qualified tax professional with any questions before filing a tax return. The Lottery cannot provide tax filing advice to individuals.

For more information about Pennsylvania's Personal Income Tax, visit the Pennsylvania Department of Revenue online at www.revenue.pa.gov. A page specifically pertaining to Lottery winnings is found here:  www.revenue.pa.gov/lotterywinnings

 

Taxpayer Advocate Service Feed

Success Story: Taxpayer Advocate Service’s persistence reduces tax debt

Thu, Nov 08, 2018

Every year, the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer’s tax issues. All personal details are removed to protect the taxpayer’s privacy. Sometimes taxpayers contact TAS for help with one issue and, in resolving that issue, multiple issues arise – some of them quite c...

NTA Blog: When Evaluating its Pilot Program on the Participation of Counsel and Compliance in Conferences, Appeals Should be Transparent and Should Consider Both Objective and Subjective Data

Wed, Nov 07, 2018

Subscribe to the NTA’s Blog and receive updates on the latest blog posts from National Taxpayer Advocate Nina E. Olson. Additional blogs from the National Taxpayer Advocate can be found at www.taxpayeradvocate.irs.gov/blog. Over the years, I have expressed significant concern with the continuing erosion of taxpayers’ right to appeal an IRS decision in an independent forum. (IRC &s...

The 2018 Nationwide Tax Forums a Success for TAS

Fri, Nov 02, 2018

Each year, the IRS sponsors the Nationwide Tax Forums, a three-day series of tax education and networking conferences for tax professionals in cities around the country. The 2018 Tax Forums featured the latest information from the IRS, news about tax law changes, a chance to meet with software vendors, and the opportunity to attend seminars presented by IRS and TAS employees in addition to memb...

NTA Blog: Now is the Perfect Time for the IRS to Make Improvements to the Individual Taxpayer Identification Number Program

Wed, Oct 31, 2018

Subscribe to the NTA’s Blog and receive updates on the latest blog posts from National Taxpayer Advocate Nina E. Olson. Additional blogs from the National Taxpayer Advocate can be found at www.taxpayeradvocate.irs.gov/blog. For years, I’ve been writing about the problems with how the IRS runs the Individual Taxpayer Identification Number (ITIN) program.  ITINs are required fo...

National Taxpayer Advocate Nina E. Olson honored in Accounting Today’s top 100 list

Wed, Oct 31, 2018

Accounting Today magazine honored National Taxpayer Advocate Nina E. Olson by selecting her for its annual list of Top 100 Most Influential People in Accounting. According to the magazine, the honor is “a clear-eyed assessment by our editors of the individuals who are having the biggest impact on the current state and the future direction of the profession.” As part of its selection...

NTA Special Blog: Taxpayer Advocate Service Launches Tax Reform Website in Spanish

Fri, Oct 26, 2018

Subscribe to the NTA’s Blog and receive updates on the latest blog posts from National Taxpayer Advocate Nina E. Olson. Additional blogs from the National Taxpayer Advocate can be found at www.taxpayeradvocate.irs.gov/blog. I’m proud to announce the launch of Cambios en la Reforma de Impuestos, the Spanish-language version of the Taxpayer Advocate Service’s recently launched...

NTA Blog: Form 1023-EZ Now Elicits Additional Information, But It’s Not Clear That IRS Reviewers Are Considering It

Wed, Oct 24, 2018

Subscribe to the NTA’s Blog and receive updates on the latest blog posts from National Taxpayer Advocate Nina E. Olson. Additional blogs from the National Taxpayer Advocate can be found at www.taxpayeradvocate.irs.gov/blog. Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, introduced in the summer of 2014, has been i...

NTA Blog: Announcing the 4th International Taxpayer Rights Conference and Requesting Presentation and Paper Proposals

Wed, Oct 17, 2018

Subscribe to the NTA’s Blog and receive updates on the latest blog posts from National Taxpayer Advocate Nina E. Olson. Additional blogs from the National Taxpayer Advocate can be found at www.taxpayeradvocate.irs.gov/blog. I’m pleased to announce the 4th International Taxpayer Rights Conference to be held May 23 and 24, 2019, in Minneapolis, Minnesota, U.S.A. Convened by the Nati...

NTA Blog: The IRS Refuses to Provide Mandatory Employee Training on Taxpayer Rights

Wed, Oct 10, 2018

Subscribe to the NTA’s Blog and receive updates on the latest blog posts from National Taxpayer Advocate Nina E. Olson. Additional blogs from the National Taxpayer Advocate can be found at www.taxpayeradvocate.irs.gov/blog. For many years, I urged the IRS to adopt a Taxpayer Bill of Rights (TBOR) and for Congress to add the list of fundamental taxpayer rights to the Internal Revenue Cod...

Nuevo Sitio Web Sobre Cambios en la Reforma de Impuestos que Explica qué está Cambiando y qué no

Thu, Oct 04, 2018

English Puede saber que el Congreso aprobó una importante reforma tributaria en la Ley de Recortes y Empleos (TCJA, por sus siglas en inglés) el 22 de diciembre de 2017. El IRS actualmente está trabajando en la implementación de esta compleja legislación tributaria que afectará tanto a individuos como a empresas. A la luz de la extensa lista de art&iacu...