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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

NTA Blog: Inadequate Training of IRS Employees Harms Taxpayers, Creates IRS Rework, and Erodes IRS Employee Morale

Wed, Feb 21, 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. As part of my recently released Annual Report to Congress, I identified IRS employee training as one of the Most Serious Problems facing taxpayers.  It may seem...

NTA Blog: Nonresident Aliens Still Facing Hardships In Obtaining Refunds of Withheld Tax

Fri, Feb 16, 2018

Nonresident Aliens’ Ability to Receive Credit for Certain Taxes Withheld at Source Continues to Be Jeopardized 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. Imagine how you would feel if you were expecting...

Success Story: TAS helps taxpayer validate eligibility for Earned Income Tax Credit

Mon, Feb 12, 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 issues. All personal details are removed to protect the privacy of the taxpayer. A taxpayer filed returns for three tax years as head of household and claimed the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) for t...

Government Shutdown

Fri, Feb 09, 2018

As of February 9, 2018, all Taxpayer Advocate Service offices have resumed normal operations. Please be aware that due to the lack of an approved federal budget, all Taxpayer Advocate Service offices across the country are closed. No staff will be available to assist you during this time.  Please check your local media for news about when our offices will reopen. We apologize for the inc...

TAS assistance offered at local Problem Solving Days

Fri, Feb 09, 2018

  The Taxpayer Advocate Service (TAS) will conduct Problem Solving Day events in communities throughout the country in the coming months and year. During these events, TAS employees from a local office will be available to assist taxpayers in person with tax problems they have not been able to resolve with the IRS. Generally, TAS can assist taxpayers whose problems with the IRS are causin...

NTA Blog: Telephone Service in an Omnichannel Environment (Part 2 of 2)

Thu, Feb 08, 2018

Telephone Service in an Omnichannel Environment - The IRS Must Ensure Taxpayers Are Getting the Assistance They Need Over the Telephone (Part 2 of 2) 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. In last week&rs...

The first in a series of NTA Conversations is now available for online viewing

Wed, Feb 07, 2018

The NTA is hosting a series of conversations that bring together experts to discuss relevant issues that impact and influence tax administration. The first NTA Conversation panel discussion "An International Ethnographic Perspective on Tax Administration and Tax Compliance" was held on Dec. 1, 2017. The discussion included five international tax researchers who shared their approach to tax...

NTA Blog: Telephone Service in an Omnichannel Environment (Part 1 of 2)

Thu, Feb 01, 2018

Telephone Service in an Omnichannel Environment - Communicating with the IRS Over the Phone Must Be Made Easier for Taxpayers (Part 1) 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. Jan. 29th marked the start of ...

NTA Blog: IRS Rolls out Passport Certification Program, Refusing to Adopt Taxpayer Protections and Exclude Taxpayers Working with TAS

Thu, Jan 25, 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. On Jan. 22, 2018, the IRS began implementation of the passport certification program. IRC § 7345 authorizes the IRS to certify a taxpayer’s seriously deli...

Government Shutdown

Mon, Jan 22, 2018

As of January 23, 2018, all Taxpayer Advocate Service offices have resumed normal operations. Please be aware that due to the lack of an approved federal budget, all Taxpayer Advocate Service offices across the country are closed. No staff will be available to assist you during this time.  Please check your local media for news about when our offices will reopen. We apologize for the inc...