Monthly News: October 2019

October 15Th, is the deadline to file your tax return if you filed an extension.  If you fall in this category the IRS is urging you to do a “Paycheck Checkup” now.  This will help you to make sure the correct amount is being withheld from your paychecks following the tax reform.  You can use the IRS’s Tax Withholding Estimator at to check that you are having the right amount withheld.

Identity theft is a continued emphasis for the IRS.  The IRS is expanding the opt-in ID PIN (Identity Protection Personal Identification Number) to more taxpayers in an additional 10 states.  This program is designed for taxpayers who are NOT victims of identity theft or refund fraud. 

There is relief for Drought-Stricken Farmers and Ranchers if they were forced to sell off livestock due to drought.  They have an additional year to replace the livestock and defer tax on any gains.  This extension gives farmers and ranchers to the end of the tax year after the drought to replace sold livestock.

States that challenged the Tax Cuts Job Act that limited to $10,000, the state and local deductions lost their legal case.  The District court dismissed their constitutional claims on merits.

The IRS doesn’t seem to be reducing the amount of revenue lost due to tax cheating.  From 2011 to 2016 $381 billion per year was estimated to have been lost due to taxpayers not paying voluntarily and timely.