Georgia residents who receive a letter from the IRS should respond to it as quickly as possible. This is generally true whether a person has received an audit notice or a request for more information. In some cases, the IRS is writing to let a person know that he or she used the wrong Social Security number or otherwise provided incorrect information on a return.
By April, everyone in Georgia and throughout America will be required to file their federal income tax return. Those who are considered to be employees of a company will receive a form W-2 and were supposed to get them by Jan. 31. The IRS is warning payroll departments that a scam could attempt to collect employee information through by way of phishing. In 2017, the targets were largely for-profit companies.
Individuals and business owners in Georgia naturally take communications from the Internal Revenue Service seriously, but the agency warns that cyber criminals often take advantage of people's willingness to comply with tax requests. Criminals will attempt to access personal and financial information or load malicious software onto computers.
Georgia residents may have heard about the crypto-currency called Bitcoin. Even if they haven't heard of it, the IRS certainly has, and the organization has won a court order to get the identities of those who own 14,355 accounts at Coinbase. Those accounts have accounted for roughly 9 million transactions between 2013 and 2015. A federal court judge ordered the information to be turned over in a ruling made on Nov. 28.
If a Georgia resident fails to pay a federal tax bill in a timely manner, the IRS may place a lien on that person's property. This helps to ensure that the government will get the money that it is owed. Tax liens are only imposed after a taxpayer has been notified of the existing balance and has been given a chance to pay it.
Some people in Georgia might receive a notice from the IRS about verifying a taxpayer's identity. According to one expert, these letters most often indicate that a taxpayer has been the victim of identity theft.
In 2015, 10 million people were hit with failure to pay estimated tax penalties in Georgia and across the nation. This was an increase from 7.2 million in 2010. While penalties differ for each taxpayer, it could add hundreds of dollars to a tax bill. Those who derive income both from an employer and side gigs may benefit by increasing their withholding or making payments throughout the year.
In 2018, Georgia employees and others in America will be able to contribute up to $18,500 into their 401(k) accounts. This is an increase of $500 from 2017 limits. Although an extra $500 per year may not seem like much, it could result in an extra $70,000 in a retirement account for a 30-year-old who contributes the maximum amount. A 40-year-old who contributes the maximum amount would have an extra $34,712.
Georgia residents and other taxpayers didn't have to disclose whether they had health coverage when filing their returns in 2017. However, the IRS says that it will not process electronically filed returns that don't address health care status in 2018. If a filer sends in a paper return, it may be suspended until adequate information is provided. Refunds may be delayed until a tax return has been processed.
Georgians who have trouble paying their taxes might want to take heed of actor Forest Whitaker's case. The actor sued the IRS because it refused to grant him an installment plan and instead demanded that he pay all of the taxes that he owed in a lump sum payment.