Some taxpayers will receive a letter from the #IRS this summer. Taxpayers should not panic and remember that they have fundamental rights when interacting with the agency.

These rights are in the Taxpayer Bill of Rights. Among other things, these rights dictate that letters from the IRS must include:

• Details about what the #taxpayer owes, such as tax, interest and penalties.
• An explanation about why the taxpayer owes the taxes.
• Specific reasons about why the IRS may have denied a refund claim.

Taxpayers who receive a letter from the IRS can do some simple things when it arrives. Taxpayers should remember to:

• Read the entire letter carefully. Most letters deal with a specific issue and provide specific instructions on what to do.
• Compare it with the tax return. If a letter indicates a changed or corrected tax return, #taxpayer should review the information and compare it with their original return.
• Respond. Taxpayers should:
  • Respond to a letter with which they do not agree.
  • Mail a letter explaining why they disagree.
  • Mail their response to the address listed at the bottom of the letter.
  • Include information and documents for the IRS to consider.
  • Allow at least 30 days for a response.
• Reply timely if necessary. If a taxpayer agrees with the information, there’s no need to contact the IRS. However, when a specific response date is in the letter, there are two main reasons a taxpayer should respond by that date:
  • To minimize additional interest and penalty charges.
  • To preserve appeal rights if the taxpayer doesn’t agree.
• Pay. Taxpayers should pay as much as they can, even if they can’t pay the full amount they owe. They can pay online or apply for an Online Payment Agreement or Offer in Compromise.
• Contact the IRS if necessary. For most letters, there’s no need to call the IRS or make an appointment at a taxpayer assistance center. If a call seems necessary, the taxpayer can call the phone number in the upper right-hand corner of the letter. They should have a copy of the tax return and letter on hand when calling.
• Keep the letter. A taxpayer should keep copies of any IRS letters or notices received with their tax records.

Share this tip on social media — #IRSTaxTip: IRS Tax Tip 2018-101:What taxpayers can do when a letter arrives this summer. https://go.usa.gov/xUCSj

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More than 2 million Individual Taxpayer Identification Numbers are set to expire at the end of 2018. Affected taxpayers who expect to file a tax return in 2019 must submit their renewal applications as soon as possible to beat the rush and avoid refund delays next year.

Here are several facts about which ITINs are expiring and how taxpayers renew them:

• ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire Dec. 31, 2018.
• ITINs with middle digits 73, 74, 75, 76, 77, 81 or 82 will also expire at the end of the year. An example of this is 9NN-73-NNNN. These numbers need to be renewed even if the taxpayer has used it in the last three years.
• This summer, the IRS is sending the CP-48 Notice, You must renew your Individual Taxpayer Identification Number to file your U.S. tax return, to affected taxpayers with expiring ITINs that have been used at least once in the past three years.
• The notice explains the steps for taxpayers to take to renew the ITIN if they will include it on a U.S. tax return filed in 2019.
• Taxpayers who receive the notice after renewing their ITIN do not need to take further action unless another family member is affected.
• Taxpayers with an ITIN that has middle digits 73, 74, 75, 76, 77, 81 or 82, as well as all previously expired ITINs, have the option to renew ITINs for their entire family at the same time.
• ITINs with middle digits of 70, 71, 72, 78, 79 or 80 have previously expired. Taxpayers with these ITINs can still renew at any time.
• To renew an ITIN, a taxpayer must complete Form W-7 and submit all required documentation.

ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. ITIN holders who have questions should visit the ITIN information page on IRS.gov and take a few minutes to understand the guidelines.

More Information:
ITIN renewal media release

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While many people take summer vacations, data thieves do not. Phishing emails and telephone scams continue to pop up around the country. The IRS reminds everyone to be vigilant to avoid becoming a victim.

Here are some things for taxpayers to remember so they can keep their personal data safe:

• The IRS does not leave pre-recorded, urgent messages asking for a call back. In one scam, the victim is told if they do not call back, a warrant will be issued for their arrest. Other variations may include the threat of other law-enforcement agency intervention, deportation or revocation of licenses. The IRS will never threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
• Criminals can fake or “spoof” caller ID to appear to be anywhere in the country, including from an IRS office. This prevents taxpayers from being able to verify the true call number. If a taxpayer gets a call from the IRS, they should hang up and call the agency back at a publicly-available phone number.
• If a taxpayer receives an unsolicited email that appears to be from the IRS, they should report it by sending it to phishing@irs.gov. Some people might also receive an email from a program closely linked to the IRS, such as the Electronic Federal Tax Payment System. Recipients should also send these emails to phishing@irs.gov.
• The IRS does not initiate contact with taxpayers by email to request personal or financial information. The IRS initiates most contacts through regular mail delivered by the United States Postal Service.

There are special circumstances when the IRS will call or come to a home or business. This includes situations when a taxpayer has an overdue tax bill or when the IRS needs to secure a delinquent tax return or a delinquent employment tax payment.

More Information:

• Report Phishing and Online Scams
• Avoid scams: Know the facts on how the IRS contacts taxpayers

Share this tip on social media — #IRSTaxTip: https://go.usa.gov/xQfrE

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Now that school’s out, many students will be starting summer jobs…from working at a summer camp to being an office intern. The IRS reminds students that not all the money they earn may make it to their pocket. That’s because employers must withhold taxes from the employee’s paycheck. Here are a few things these workers need to know when starting a summer job:

• New employees. Students and teenage employees normally have taxes withheld from their paychecks by the employer. When a taxpayer gets a new job, they need to fill out a Form W-4. Employers use this form to calculate how much federal income tax to withhold from the employee’s pay. The Withholding Calculator on IRS.gov can help a taxpayer fill out this form.
• Self-employment. Students who do odd jobs over the summer to make extra cash – like baby-sitting or lawn care – are considered self-employed. They should remember that money earned from self-employment is taxable. Workers who are self-employed may be responsible for paying taxes directly to the IRS. One way to do that is by making estimated tax payments during the year. Taxpayers who do this should keep good records of all money they receive.
• Tip income. Someone working as a waiter or a camp counselor who receives tips as part of their summer income should know that tip income is taxable income and subject to federal income tax. They should keep a daily log to accurately report them, as they will report tips of $20 or more received in cash in any single month.
• Payroll taxes. This tax pays for benefits under the Social Security system. While taxpayers may earn too little from their summer job to owe income tax, employers usually must still withhold Social Security and Medicare taxes from their pay. If a taxpayer is self-employed, then Social Security and Medicare taxes may still be due and are generally paid by the taxpayer.
• Reserve Officers’ Training Corps pay. If a taxpayer is in an ROTC program, active duty pay, such as pay for summer advanced camp, is taxable. Other allowances the taxpayer may receive – like food and lodging allowances paid to ROTC students participating in advanced training – may not be taxable. The Armed Forces’ Tax Guide on IRS.gov has more details.

More Information:
Tax rules for students.
Is My Tip Income Taxable?
Do I Have Income Subject to Self-Employment Tax?

IRS YouTube Videos:
Part-Time and Summer Jobs

Share this tip on social media — #IRSTaxTip: Tips for teenage taxpayers starting a summer job. https://go.usa.gov/xQVeb