December watch: IRS spotlights tax security; automatic penalty relief on deck

by | Dec 3, 2025 | Tax Tips and News

It’s holiday shopping season. It’s also the warm-up for tax season. Two quick updates to know this December.

Security push this week

The IRS and state tax agencies are using early December to promote National Tax Security Awareness Week. The message is simple: thieves want your tax refund and your identity. Don’t make it easy.

  • Be suspicious of emails and texts claiming to be from the IRS. The IRS doesn’t start contact by email, text, or social media DMs about a bill or refund.
  • Turn on two-factor authentication for tax software and financial accounts.
  • Use strong, unique passwords. Consider a password manager.
  • Avoid public Wi‑Fi for anything sensitive. Hotspot or wait until you’re on a secure network.
  • Update your phone, computer, and apps to patch security holes.
  • Watch for “smishing” and “vishing.” Don’t click unknown links, and don’t read off codes to callers.

Bonus: If you choose to use an Identity Protection PIN, store it somewhere safe. You’ll need it to e-file.

Automatic first-time penalty relief coming in 2026

The IRS says it plans to start applying First-Time Abate Relief automatically next year for about 1 million taxpayers. That means certain late-filing or late-payment penalties may be removed without you having to ask, if you have a clean recent history.

What to expect: If a qualifying penalty posts, the system should reverse it. Keep any IRS notices you receive, and watch your account for updates.

For small businesses

  • Security tips apply to payroll and bookkeeping systems, too. Protect access to payroll portals and cloud accounting tools.
  • January brings tight filing windows for W‑2s and 1099s. Start gathering info now to avoid last‑minute scrambles.

This article is for general information only and is not legal, financial, or tax advice.

– Article provided by Tax News.

What is an IP PIN?

by | Jul 11, 2025 | Tax Tips and News

An Identity Protection PIN (IP PIN) is a six-digit number issued by the IRS to safeguard your federal tax return from identity theft and fraud. It ensures that only you, or someone you authorize, can file a tax return using your Social Security Number or Individual Taxpayer Identification Number.

Why is an IP PIN Important?

Tax-related identity theft is on the rise, and fraudsters are constantly looking for ways to file false returns to claim refunds. An IP PIN acts as a lock on your tax account, blocking unauthorized returns. Without the correct IP PIN, the IRS will reject any e-filed return or delay the processing of paper returns with your SSN.

Who Should Get an IP PIN?

  • Victims of tax-related identity theft
  • Anyone who wants to proactively protect their tax return
  • Taxpayers who want extra peace of mind during tax season

How to Get an IP PIN

You can obtain an IP PIN through the IRS’s Get an IP PIN tool. The process requires identity verification, including access to your tax and financial records. Once enrolled, you will receive a new IP PIN each calendar year.

Important Things to Remember

  • Never share your IP PIN with anyone other than your trusted tax preparer.
  • Keep your IP PIN in a secure place – it is valid for one year only.
  • The IRS will never ask for your IP PIN via phone, email, or text.
  • An IP PIN is not mandatory for most taxpayers but is available for added protection.

Adding an IP PIN to your tax filing routine is a simple step that provides strong protection against fraud. If you have not already, consider applying for one today!

The post What is an IP PIN? appeared first on taxPRO Websites.

– Article provided by Tax News.

Just Married? Here’s Your Tax Checklist for a Smooth Start

by | Jul 10, 2025 | Tax Tips and News

Summer wedding bells may have just finished ringing, but tax season will be here before you know it. As newlyweds, it’s important to make a few key updates now to ensure a hassle-free tax filing experience next year. Here’s a quick IRS-backed checklist to help you start married life on a financially smart note.

1. Update Your Name with the SSA

If either of you changed your name, be sure to report it to the Social Security Administration (SSA). Your name and Social Security number must match on your tax return to avoid processing delays.

2. Update Your Address

Moved in together? Let the IRS and the U.S. Postal Service know your new address. Use IRS Form 8822 to notify the IRS directly.

3. Notify Employers

Make sure your employers update your name and address on W-2s. This ensures accurate reporting of your income.

4. Check Your Withholding

Your combined income may bump you into a higher tax bracket. Use the IRS Tax Withholding Estimator to make adjustments via Form W-4. Doing this now can prevent an unexpected tax bill later.

5. Decide How to File

Most couples benefit from filing jointly, but it’s worth considering both options. Filing separately might make sense if one spouse has significant medical expenses or miscellaneous deductions.

6. Consider the Bigger Picture

Buying a home? Starting a business? Adding dependents? All of these life changes come with tax implications. It’s a good time to speak with a tax professional to make a plan tailored for your new life together.

7. Protect Your Identity

Consider signing up for an IRS Identity Protection PIN (IP PIN). This extra step helps prevent tax-related identity theft.

Getting married is a huge milestone. Make sure your taxes reflect your new status to avoid surprises and potentially save money down the road. Congrats, and may your future be as financially smooth as your honeymoon was sweet!

The post Just Married? Here’s Your Tax Checklist for a Smooth Start appeared first on taxPRO Websites.

– Article provided by Tax News.

IRS Extends Tax Deadline to January 10, 2025, Following National Day of Mourning

by | Jan 10, 2025 | Tax Tips and News

The IRS has announced a one-day extension for taxpayers with federal tax deadlines originally set for Thursday, January 9, 2025. The new deadline is Friday, January 10, 2025.

This extension comes in response to a  Presidential Proclamation issued on December 29, 2024, declaring January 9 as a National Day of Mourning to honor James Earl Carter, Jr., the 39th President of the United States.

Here’s what the extension covers:

  • Tax Returns: Any federal tax return that would have been due on January 9, 2025.
  • Tax Payments: Federal tax payments, including income, payroll, or excise taxes, originally required by that date.
  • Tax Deposits: Federal tax deposits, including those processed through the Electronic Federal Tax Payment System (EFTPS).

The extension provides taxpayers an extra day to ensure compliance with their federal tax obligations without facing penalties.

If you have returns or payments due on January 9, take advantage of this extended deadline to file or pay by January 10, 2025.

The post IRS Extends Tax Deadline to January 10, 2025, Following National Day of Mourning appeared first on taxPRO Websites.

– Article provided by Tax News.

Reminder: Make Estimated Tax Payments by Jan. 15 to Avoid Penalties

by | Jan 10, 2025 | Tax Tips and News

If you underpaid taxes in 2024, consider making a fourth-quarter estimated tax payment by Jan. 15, 2025, to avoid penalties.

The U.S. tax system requires payments throughout the year via paycheck withholdings or quarterly estimated payments. Missing a quarterly payment may lead to penalties when filing your 2025 return.

Who Needs to Pay?

  • Self-employed individuals or independent contractors.
  • Those who owed taxes last year and may owe again.
  • Households with two earners or additional income sources like dividends.
  • Taxpayers with complex financial situations or inadequate withholding.

What Income is Taxed?
Taxable income includes side jobs, gig work, unemployment benefits, digital assets (e.g., cryptocurrency), year-end bonuses, stock dividends, and capital gains.

How to Pay
Payments can be made through the IRS Online Account, Direct Pay, EFTPS, or by check to “United States Treasury.”

Making a payment now may reduce or eliminate penalties. Use tools like the IRS The Tax Withholding Estimator or Form 1040-ES to calculate your estimated payment.

Plan ahead and take steps to avoid surprises during the upcoming tax season.

The post Reminder: Make Estimated Tax Payments by Jan. 15 to Avoid Penalties appeared first on taxPRO Websites.

– Article provided by Tax News.