The IRS is warning Americans ahead of a “frustrating” tax season about two letters they must keep in their hands.
The federal agency is warning Americans it is dealing with a backlog of profits, staff shortages and a massive increase in phone calls from taxpayers.
The Internal Revenue Service (IRS) warns that it is still working on “incompletely processed previous year’s individual tax returns.”
“In many areas, we are unable to provide the amount of service and enforcement that our taxpayers and tax system deserve and need.
“This is frustrating for taxpayers, for IRS employees, and for me,” IRS Commissioner Chuck Rettig said in a statement Monday.
“IRS employees want to do more and we will continue into 2022 to do everything we can with the resources available to us.”
The agency said it will begin accepting individual tax returns for 2021 on January 24, with an April 18 filing deadline for most taxpayers.
However, applicants should be aware of the two main documents that they must present when filing a tax return.
6475 . ONLY
The The IRS has said that households should watch out for Letter 6475, “Your Tuesday Economic Impact Payment”, in the coming days and weeks.
It says in a release: “These letters can help taxpayers, or their tax professionals, prepare their 2021 federal tax return.”
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The letter details how much you will receive in stimulus money in 2021, including any “plus” payments.
About 36 million families will be mailed.
“Letter 6475 applies only to the third round of economic impact payments issued starting in March 2021 and continuing through December 2021,” the IRS said.
“The third round of economic impact payments, including ‘plus’ payments, are prepayments for 2021 Refund Credit will be declared on the 2021 tax return.”
The letter can also be used for settlement if you are entitled to claim the Recovery Reimbursement Credit on your 2021 tax return.
This credit will be the difference between the amount of the third stimulus check you are eligible to receive and the amount you receive.
While stimulus test are not taxable, they still need to be declared on a 2021 tax return, which must be filed this spring.
This letter contains important information about the number of eligible children and the total amount of tax credit payments received in 2021.
Experts have warned that failing to pay taxes without a letter could lead to delays.
https://www.the-sun.com/money/4439500/irs-warning-tax-season-key-letters/ Urgent IRS warning ahead of ‘frustrating’ tax season – why you MUST keep these two letters