IRS offers taxpayers convenient, secure ways to pay their taxes throughout the year. Taxpayers can pay:

• Online
• By phone
• With their mobile device using the IRS2Go app

Additionally, some taxpayers must make quarterly estimated tax payments throughout the year. These taxpayers may include sole proprietors, partners, and S-corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the sharing economy might also have to make estimated payments.

There are several options for taxpayers who need to pay their taxes. They can:

• Pay using their bank account when they e-file their return. Taxpayers can do this for free using electronic funds withdrawal.
• Use IRS Direct Pay to pay their taxes, including estimated taxes. Direct Pay allows taxpayers to pay electronically directly from their checking or savings account for free. Taxpayers can also choose to receive email notifications about their payments. Taxpayers should remember to watch out for email scams. IRS Direct Pay sends emails only to users who requested the service.
• Pay by credit or debit card through a card processor. There is a fee to pay this way. Taxpayers can make these payments online, by phone, or using their mobile device with the IRS2Go app.
• Make a cash payment at a participating 7-Eleven store. Taxpayers can do this at more than 7,000 store locations nationwide. To pay with cash, taxpayers can visit IRS.gov/paywithcash and follow the instructions.
• Spread out their payments over time by applying for an online payment agreement. Once the IRS accepts an agreement, the taxpayers can make their payment in monthly installments.

More information: 
Electronic payment options
Topic No. 202: Tax Payment Options

IRS YouTube Videos:
Owe Taxes but Can’t Pay  –  English | Spanish | ASL

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Here is a video tax tip from the IRS: 

100 Percent First Year Depreciation English | Spanish | ASL

Subscribe today: The IRS YouTube channels provide short, informative videos on various tax related topics in English, Spanish and ASL.

• www.youtube.com/irsvideos
• www.youtube.com/irsvideosmultilingua
• www.youtube.com/irsvideosASL 
                                       

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WASHINGTON — During National Small Business Week, the Internal Revenue Service wants small business taxpayers and the self-employed to know that, starting May 13, an important change will affect the way it issues employer identification numbers, or EINs.

With identity theft on the rise in the business community, the agency also offered business taxpayers tips and resources for protecting their data from theft.  

National Small Business Week is May 5-11. For more than 50 years, the week has recognized the important contributions of America’s entrepreneurs and small business owners.

EINs and responsible parties

Beginning May 13, only individuals with tax identification numbers – either a Social Security number (SSN) or an individual taxpayer identification number (ITIN) – may request an employer identification number. This new requirement, which was first announced by the IRS in March, will provide greater security to the EIN process by requiring an individual to be the responsible party and will also improve transparency.

An EIN is a nine-digit tax identification number assigned to sole proprietors, corporations, partnerships, estates, trusts, employee retirement plans and other entities for tax-filing and reporting purposes.

The change prohibits entities from using their own EINs to obtain additional EINs. The new requirement applies to both the paper Form SS-4, Application for Employer Identification Number, and online EIN applications.

Data security

Individuals are not the only ones who need to protect their identities. Businesses and other organizations, especially trusts, estates and partnerships, can also be victims of identity theft. For example, criminals may file Forms 1120 (corporations), 1120S (S corporations) or Schedules K-1 in their names. Last year, 2,450 businesses reported that they were victims of tax-related identity theft, a 10-percent increase over 2017.
 
Businesses and other organizations can help combat identity theft by educating their employees, clients and customers. They can share Publication 4524, Taxes. Security. Together: Security Awareness for Taxpayers, or create their own messages urging employees, clients or customers to protect their data and beware of phishing emails, the most common tactic used by criminals to steal data.

Businesses should also educate their payroll and human resources employees about a dangerous phishing scam. The Form W-2 scam tricks payroll and human resources employees into sharing employee wage and income information by posing as a company executive. See Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers.

Businesses that retain sensitive financial data should review and update their security plan. Publication 4557, Safeguarding Taxpayer Data, provides a good starting point and includes helpful recommendations.

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Just like taxpayers who file their taxes by the April deadline, those who filed an extension should also do everything to make sure their tax return is complete and accurate. Errors on a tax return can mean it will take longer for the IRS to process the return, which in turn, could delay a refund.

Taxpayers should remember they can avoid many common errors by filing electronically or by using IRS Free File. Filing electronically is the most accurate way to file a tax return.

Taxpayers who filed an extension and who are filing their taxes this summer should avoid making these common errors:

• Missing or inaccurate Social Security numbers. The taxpayer should be sure to enter each SSN on a tax return exactly as printed on the Social Security card.
• Misspelled names. Taxpayers should spell all names listed on a tax return exactly as listed on the individuals’ Social Security cards.
• Filing status.  Some taxpayers claim the wrong filing status, such as Head of Household instead of Single. The Interactive Tax Assistant on IRS.gov can help taxpayers choose the correct status. E-file software also helps prevent these mistakes.
• Math mistakes. Math errors are common on paper returns. These can range from simple addition and subtraction to more complex calculations. Taxpayers should always double check their math. Better yet, they should consider filing electronically. Tax preparation software does all the math automatically.
• Mistakes made when figuring credits. Taxpayers can make mistakes when figuring things like their Earned Income Tax Credit and Child and Dependent Care Credit. Taxpayers should follow the instructions carefully, and double check the information they enter when filing electronically. The IRS Interactive Tax Assistant can help determine if a taxpayer is eligible for certain tax credits.
• Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit as this will get their money right in their bank account. However, the IRS cautions taxpayers to use the right routing and account numbers on the tax return. It’s a good idea to double and triple check the numbers they enter.
• Unsigned forms. An unsigned tax return isn’t valid. Both spouses must sign a joint return. Taxpayers can avoid this error by filing their return electronically and digitally signing it before sending it to the IRS. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2017 tax return to file electronically. Taxpayers who are using the same tax software they used last year usually will not need to enter prior-year information to electronically sign their 2018 tax return.
• An expired ITIN. The IRS  treats  a return filed with an expired Individual Tax Identification Number as filed on time, but there may be delays in processing it. Taxpayers will receive a notice explaining that an ITIN must be current before the IRS will pay a refund. Once the taxpayer renews the ITIN, the IRS will process the tax return and pay any allowed refund.

More information:

• IRS Tax Map
• IRS Tax Trails
• Get Your Electronic Filing PIN

Share this tip on social media — #IRSTaxTip: Extension filers should avoid these errors when filing their tax return  https://go.usa.gov/xmbRm

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As they are preparing their 2018 tax returns, taxpayers should remember that personal exemptions are suspended for 2018. Taxpayers can’t claim a personal exemption for anyone on their tax return. This means that an exemption can no longer be claimed for a tax filer, spouse or dependents.

Here are some quick key things for these taxpayers to know about claiming dependents on their 2018 tax return:

Claiming dependents. 
A dependent is either a child or a qualifying relative who meets a set of tests. Taxpayers should remember to list the name and Social Security number for each dependent on their tax return.

Dependents cannot claim dependents. Taxpayers can’t claim any dependents if someone can claim the taxpayer – or their spouse, if filing jointly – as a dependent.

Dependents may have to file a tax return. This depends on certain factors like total income, whether they’re married and if they owe certain taxes.

Child Tax Credit. Taxpayers may be able to claim this credit for each qualifying child under age 17 at the end of the year, if the taxpayer claimed that child as a dependent.

Credit for Other Dependents. Taxpayers may be able to claim this credit for qualifying relatives and children who don’t qualify for the Child Tax Credit.

Taxpayers can get answers to questions about claiming dependents, such as Whom May I Claim as a Dependent, by using the Interactive Tax Assistant tool.

More Information:
Publication 17, Your Federal Income Tax
Publication 501, Exemptions, Standard Deduction and Filing Information.
Publication 972, Child Tax Credit.

Share this tip on social media — #IRSTaxTip: Things taxpayers should know about claiming dependents. https://go.usa.gov/xESNa.

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