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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: TAS Successfully Advocates for Taxpayer Subjected to Repetitive Audits

Thu, Apr 19, 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. TAS assisted a taxpayer who had been audited for tax years 2013-2015. The taxpayer received notification of audit on his 2016 return for the same issu...

IRS provides additional day through Wednesday, April 18 to file and pay your 2017 taxes

Wed, Apr 18, 2018

Yesterday, the IRS experienced system issues and was unable to accept tax returns.  The processing systems are back online today. The IRS announced it will provide an additional day to file your federal income tax return and pay your balance due.  If your 2017 tax return was due on April 17, 2018, you now have until today, Wednesday, April 18 to timely file and pay your 2017 federal t...

NTA Blog: What’s wrong with IRS user fees?

Wed, Apr 18, 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. The IRS has been increasing user fees to fund its operations. It recently increased or proposed to increase a wide range of fees including the fees for installment a...

National Taxpayer Advocate Nina Olson testifies on Oversight before several House Subcommittees

Tue, Apr 17, 2018

National Taxpayer Advocate Nina E. Olson testified before the House Subcommittee on Health Care, Benefits, and Administrative Rules and Subcommittee on Government Operations Committee on Oversight and Government Reform on Oversight today at a hearing entitled, “Continued Oversight Over the Internal Revenue Service.” The following is an excerpt from her written testimony: Thro...

NTA Blog: The IRS Can Do a Better Job Providing Military Taxpayers With Accurate and Up-to-Date Information About Tax Issues They Are Facing

Wed, Apr 11, 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 we near the end of the 2018 filing season, it is worth reflecting on the challenges taxpayers face in complying with complex tax law provisions. In my 2017 Annual...

Colloquium on Tax and the Sharing Economy at Villanova University

Tue, Apr 10, 2018

National Taxpayer Advocate Nina Olson spoke to law students at Villanova University at an event sponsored by the Tax Law Society and the Women’s Law Caucus. A Pennsylvania native, Ms. Olson spoke about her unorthodox career path as a private practitioner, business-owner, social entrepreneur and public advocate. The following day, Nina Olson participated in a colloquium on Tax and the Shar...

Success Story: TAS Helps Disabled Veteran Receive Portions of Her Refunds from Three Years

Thu, Apr 05, 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. While participating in a Veterans’ Stand Down event, a married couple, both whom are disabled veterans, approached TAS employees about a tax pro...

NTA Blog: A Digital “Mailbox Rule” Is Required As the IRS Steers Taxpayers Toward Self-Help Digital Tools

Wed, Apr 04, 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 the IRS steers taxpayers toward self-help digital tools, it is necessary to bring the “statutory mailbox rule” into the 21st century. Currently, the s...

NTA Blog: An Analysis of Tax Settlement Programs as Amnesties: A Discussion of Belated Alternatives to the Offshore Voluntary Disclosure Program and Recommendations for Further Improvements (Part 3 of 3)

Fri, Mar 30, 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. In the first blog in this series we discussed how those who participate in amnesties also tend to be people who made inadvertent errors, that is, “benign&rdquo...

Disaster Relief: Many businesses have extra time to request a six-month extension due to winter storms

Mon, Mar 26, 2018

The IRS has a disaster assistance and emergency relief page for individuals and businesses, which includes special tax law provisions, to help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area. The IRS recently granted many businesses affected by severe winter storms additional t...