It is time to take stock of tax tips for the 2022 tax season. Tax season opened late last month on January 24, 2022, and according to recent media reports, it is going to be a doozy.
The services of the Internal Revenue Service (IRS) are already challenged by a processing backlog of millions of as-yet unprocessed returns from the previous tax year. Without sufficient funding, the IRS struggles to fulfill its primary mandate in addition to pandemic-related stimulus projects it has undertaken in the past two years. According to The Washington Post, the agency can afford about the same number of employees as it had in 1970—a shameful statement of an agency that is at the forefront of the United States Treasury.
At present, Tax Day is Monday, April 18, 2022. The IRS urges taxpayers to E-file and make use of direct pay or direct deposit, modes that allow returns to processed quickly, as well as reduce further backlog of paper-based tax returns. With that in mind, here are some tips to keep in mind as you put together your taxes this year:
- Watch your mail: The IRS is issuing two letters of interest to those who received a Child Tax Credit or the third economic income payment. The letter concerning the Child Tax Credit, Form 6419, helps taxpayers understand the advance Child Tax Credit payments received in 2021 and how much can be claimed on the 2021 return. The economic impact letter, Form 6475, will help taxpayers understand if they qualify for a Recovery Rebate Credit for 2021.
- Donations: If you do not itemize deductions, you may qualify for a deduction for certain charitable donations up to $600 for married taxpayers filing jointly, or $300 for single filers.
- Understand distributions required by retirement plans: If you are 70 or older, be sure to check out the fine print around your required minimum distribution (RMD).
- Check for typos and attachments: Whether or not you prepare your own return, make sure to proof your return. Check for misspellings, recheck birth and other important dates, check Social Security and the math. Be sure W-9s, 1099s and other necessary forms are attached. Electronically filed returns with errors can be diverted and delayed.
If you are using a new tax preparer this year, now is the time to be choosy. Preparing and filing fraudulent tax returns is a long-time scam for fraudsters. If you do not carefully review a return prepared for you, you may later be held responsible for a false tax return, even though you may not have noticed the subterfuge. If you sign it—you own it. If you have questions about compliance on individual and corporate tax filings, speak with a reputable tax attorney before you file.
Experienced legal representation on tax litigation or other controversy
From offices in Chicago and Cleveland, the tax group at Robert J. Fedor, Esq., LLC helps individuals and entities nationwide respond to allegations of criminal tax fraud, IRS audits, and other tax issues. When you need responsive, legal advice locally or abroad, contact us or call 800-579-0997.