IRS launches Identity Theft Central

IRS launches Identity Theft Central
Focuses on needs of taxpayers, tax professionals and businesses

The Internal Revenue Service today launched Identity Theft Central, designed to improve online access to information on identity theft and data security protection for taxpayers, tax professionals and businesses.

Located on IRS.gov, Identity Theft Central is available 24/7 at irs.gov/identitytheft. It is a resource on how to report identity theft, how taxpayers can protect themselves against phishing, online scams and more.

Improving awareness and outreach are hallmarks of initiatives to combat identity theft coordinated by the IRS, state tax agencies and the nation's tax industry, all working in partnership under the Security Summit banner.

Since 2015, the Security Summit partners have made substantial progress in the fight against tax-related identity theft. But thieves are still constantly looking for ways to steal the identities of individuals, tax professionals and businesses in order to file fraudulent tax returns for refunds.

The partnership has taken a number of steps to help educate and improve protections for taxpayers, tax professionals and businesses. As part of this effort, the IRS has redesigned the information into a new, streamlined page − Identity Theft Central − to help people get information they need on ID theft, scams and schemes.

From this special page, people can get specific information including:

• Taxpayer Guide to Identity Theft, including what to do if someone becomes a victim of identity theft
• Identity Theft Information for Tax Professionals, including knowing responsibilities under the law
• Identity Theft Information for Businesses, including how to recognize the signs of identity theft
• The page also features videos on key topics that can be used by taxpayers or partner groups. The new page includes a video message from IRS Commissioner Chuck Rettig, warning signs for phishing email scams – a common tactic used for identity theft – and steps for people to protect their computer and phone.

Tax professionals and others may want to bookmark Identity Theft Central and check their specific guidance periodically for updates.

This is part of an ongoing effort by the IRS to share identity theft-related information with the public. The IRS continues to look for ways to raise awareness and improve education and products related to identity theft for taxpayers and the tax professional community.

IRS launches Identity Theft Central

"It’s that time again" - IRS has started processing tax returns

From the Milford Daily News, articles of interest for Franklin:

"The IRS began accepting and processing tax returns for individuals on Monday.

Last year’s filing season was an adjustment for taxpayers and industry professionals alike as it was the first under a massive overhaul of federal tax law. While this year’s season is expected to be more sedate, there are a few tweaks to be aware of.

Standard deduction

The standard deduction doubled under the new tax law that took effect in 2018. In turn, the number of taxpayers who took that instead of itemizing on their taxes jumped sharply. An estimated 90% of taxpayers are expected to take the deduction this year.

While the standard deduction usually increases each year for inflation, it’s worth keeping the figure in mind as taxpayers adjust to the new system. Some people may still want to run through the exercise of deciding whether to itemize or not. The decision comes down to whether your deductible expenses are greater than the standard deduction. Tax preparation software or a tax professional can walk you through this with ease."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20200128/what-to-know-for-year-two-of-trump-tax-plan

"The Internal Revenue Service today reminded active duty military personnel that IRS Free File offers them multiple options for free federal tax preparation.

Free File is for individuals or families whose adjusted gross income was $69,000 or less last year. Free File is a private-public partnership between the IRS and the Free File Inc."

https://www.franklinmatters.org/2020/01/irs-free-file-offers-free-tax-prep.html

To make sure you are using the IRS Free File system, go to IRS.gov/freefile to review your choices

Get up-to-date information this tax filing season with redesigned IRS e-News Subscriptions

As the 2020 tax season approaches, the Internal Revenue Service today encouraged taxpayers, businesses, tax professionals and others to take advantage of a variety of improved e-mail subscription services.

The e-News Subscription Service has been redesigned and updated in recent months to make it easier to subscribe to specific areas that people and organizations are interested in. Among others, the IRS offers subscription services tailored to tax exempt and government entities, small and large businesses and individuals.

The IRS currently has 20 registration-based e-News options, including:

• IRS Tax Tips – These brief, concise tips in plain language that cover a wide-range of topics of general interest to taxpayers. They include the latest on tax scams and schemes, tax reform, tax deductions, filing extensions and amending a return. IRS Tax Tips are distributed daily during tax season and periodically throughout the year. https://service.govdelivery.com/accounts/USIRS/subscriber/topics
• IRS Newswire − Subscribers to IRS Newswire receive news releases the day they are issued. These cover a wide range of tax administration issues ranging from breaking news to details related to legal guidance. 
• IRS News in Spanish (Noticias del IRS en Español) − Readers get IRS news releases, tax tips and updates in Spanish as they are released. Subscribe at Noticias del IRS en Español. https://service.govdelivery.com/accounts/USIRS/subscriber/new
• e-News for Tax Professionals − Includes a weekly roundup of news releases and legal guidance specifically designed for the tax professional community. Subscribing to e-News for Tax Professionals gets tax pros a weekly summary, typically delivered on Friday afternoons.
• IRS Outreach Connection − This newest IRS subscription offering delivers up-to-date materials for tax professionals and partner groups inside and outside the tax community. The material for Outreach Connection is specifically designed so subscribers can share the material with their clients or members through email, social media, internal newsletters, e-mails or external websites. Subscribe by visiting IRS.gov/outreachconnect.

For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions  https://www.irs.gov/newsroom/e-news-subscriptions. 
The resources will help taxpayers and organizations keep up with the latest information during and after filing season.

For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions

IRS Free File offers free tax prep options for military personnel

The Internal Revenue Service today reminded active duty military personnel that IRS Free File offers them multiple options for free federal tax preparation.

Free File is for individuals or families whose adjusted gross income was $69,000 or less last year. Free File is a private-public partnership between the IRS and the Free File Inc.

"The IRS takes special steps to help military members and their families with their taxes, and the Free File program is part of that effort," said IRS Commissioner Chuck Rettig. "Almost 10% of the IRS workforce are veterans. We greatly appreciate the service to the nation of every veteran and their supportive families, and we will do all we can to assist them."

For active duty military and their spouses, Free File has a special offer. Individuals and their families who meet the income limitation may choose from any of nine companies without regard to additional eligibility requirements.

The nine special offers are from 1040Now, Inc., FileYourTaxes.com, Free tax Returns.com, H&R Block, On-Line Taxes, Inc., Tax ACT, TaxHawk, Inc., TaxSlayer (English and Spanish) and TurboTax.

Active duty military stationed in combat zones also have more time to file their tax returns. However, those with spouses and families may opt to file as soon as they are able to claim various tax benefits for which they may be eligible. If only one spouse is present to file a joint return, they must have proper authorization to file a joint tax return on behalf of their spouse.

The IRS will begin processing tax returns on Jan. 27. With Free File, you can use any digital device, personal computer, tablet or smart phone. Free File products are mobile enabled so you can do your taxes on your smart phone or tablet and e-File with your hand-held device.

Here's how Free File works:

1. Go to IRS.gov/FreeFile to see all Free File options.
2. Military personnel who meet the income requirement can select from any of the nine providers that have "Free for Active Military for Adjusted Gross Income of $69,000 or less" in their offer. Nine of the 10 partners are making the offer. One product is in Spanish.
3. Select a provider and follow the links to their web page to begin your tax return.
4. Complete and e-File your tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options.

Generally, each Free File partner sets additional eligibility requirements that civilian taxpayers must meet. Non-military personnel should use the "look up" tool at IRS.gov/FreeFile to find the best match.

Military members can get more information on their special tax benefits at IRS.gov/military.

Free File is available now through October to accommodate extension filers.

IRS Free File offers free tax prep options for military personnel

IRS reminder: Taxpayers should do a Paycheck Checkup now

IRS reminder: Taxpayers can help determine the right amount of tax to withhold from their paychecks by doing a Paycheck Checkup now

The Internal Revenue Service encourages taxpayers to look at their tax withholding now to take charge of their tax situation and avoid a surprise at tax time next year. Doing a Paycheck Checkup now using the IRS Withholding Calculator means taxpayers have the majority of the year to spread out any changes they make to their withholding.



Paycheck Checkup:   https://www.irs.gov/paycheck-checkup
Withholding Calculator:  https://www.irs.gov/individuals/irs-withholding-calculator

The agency said the average tax refund was $2,729 for tax year 2018. While some taxpayers may find it advantageous to get a large tax refund, others may wish to have more of their money in their paychecks throughout the year. Whatever the goal, the IRS wants taxpayers to know that while taxes must be paid as income is earned during the year, either through withholding or estimated tax payments, they can make adjustments that will influence the size of their refund.

Tax reform changes

The Tax Cuts and Jobs Act of 2017 made significant changes that affected almost every taxpayer. Most changes took effect in 2018 and taxpayers first noticed them on the tax return they filed earlier this year.

The new law increased the Child Tax Credit from $1,000 to $2,000 per qualifying child, while also raising the income limits for the credit. This means more people will now qualify for the Child Tax Credit. There is also a new $500 credit for older dependent children and qualifying relatives. While the tax-law changes nearly doubled the standard deduction, they also suspended personal and dependency exemptions that existed in the past. Because of these changes, fewer taxpayers itemize their deductions, and new limits apply to many of these deductions. These restrictions apply to state and local taxes, mortgage interest and miscellaneous itemized deductions, and higher limits apply to charitable contributions.

As a result, many taxpayers ended up receiving 2018 refunds that were larger or smaller than expected. Others found they owed additional tax when they filed. For that reason, taxpayers may need to raise or lower the amount of tax they have taken out of their pay.

While a withholding check is a good idea any year, the IRS also encourages taxpayers who have a change in life circumstances to do a Paycheck Checkup. Personal changes that may affect taxes include marriage or divorce, birth or adoption of a child, or the ‘aging out’ or loss of a dependent.

Using the Withholding Calculator

The Withholding Calculator helps taxpayers get their tax withholding right by making sure these and other tax changes are taken into account. Taxpayers enter their deductions and credits into the online tool, as well as estimate income from other sources, such as a spouse, bank interest, second jobs and gig-economy employment. To use the Withholding Calculator most effectively, taxpayers should have a copy of their 2018 tax return, as well as a recent paystub for themselves and their spouse if married and filing jointly.

The Withholding Calculator will recommend the number of allowances that a taxpayer should claim on a Form W-4. In some instances, it will recommend that the employee also have an additional flat-dollar amount withheld from each paycheck.

Form W-4  https://www.irs.gov/forms-pubs/about-form-w-4

While the Withholding Calculator is primarily designed for taxpayers who earn wages, it can also benefit those with pension and annuity income.

If the Withholding Calculator suggests a change, the employee should fill out a new Form W-4 and give it to their employer as soon as possible. Similarly, recipients of pensions and annuities can make a change by filling out Form W-4P and giving it to their payer. They should not send these forms to the IRS. For more information, visit the Withholding Calculator, available on IRS.gov

Form W-4P  https://www.irs.gov/forms-pubs/about-form-w-4-p

Estimated taxes

Some workers are considered self-employed and are responsible for paying taxes directly to the IRS. Often, this includes people involved in the gig or sharing economy. One way to pay taxes directly to the IRS is by making estimated tax payments during the year. The next deadline for tax year 2019 estimated taxes is June 17.

Gig or Sharing economy  https://www.irs.gov/businesses/small-businesses-self-employed/sharing-economy-tax-center

The TCJA also changed the way tax is calculated for those with substantial income not subject to withholding. As a result, many taxpayers may need to raise or lower the amount of tax they pay each quarter through the estimated tax system.

The revised estimated tax package, Form 1040-ES, on IRS.gov is designed to help taxpayers figure these payments correctly. The package includes a quick rundown of key tax changes, income tax rate schedules for 2019 and a useful worksheet for figuring the right amount to pay.

More information:

FS-2019-4: Tax withholding: How to get it right
https://www.irs.gov/newsroom/tax-withholding-how-to-get-it-right

FS-2019-6: Basics of estimated taxes for individuals
https://www.irs.gov/newsroom/basics-of-estimated-taxes-for-individuals

FTC Consumer Alert: Those (not really) IRS calls (video)

Franklin Police Chief Thomas Lynch had a voice message to all residents recently alerting us to avoid phone scams. This FTC video delivers the same message

Those (not really) IRS calls by Lisa Weintraub Schifferle Attorney, FTC, Division of Consumer & Business Education You've probably gotten one of these calls: They say it's the IRS and they're filing a lawsuit against you for back taxes. They may threaten to arrest or deport you. What do you do? Watch this video to learn more: Read more online https://www.consumer.ftc.gov/blog/2019/03/those-not-really-irs-calls?utm_source=govdelivery This is a free service provided by the Federal Trade Commission.

---

In the News: New tax law brings surprises

From the Milford Daily News, articles of interest for Franklin:

New tax law brings unpleasant surprise to filers

"Greg Tully is 71, and for the first time in his working life he will not receive a federal tax refund. 

“Last year we got $631 back. This year we owed around $1,500,” he said.
Like Tully, of Saugus, thousands of taxpayers across the state are learning their refunds are smaller than in years past, and some are finding they owe money. 

The IRS on Feb. 1 reported the average tax refund so far in 2019 had decreased by 8.4 percent – or $183 – to $1,901 compared to 2018. 

“A lot of people are very surprised with their refunds, or lack thereof,” said Paul Russo, tax director at The 1911 Trust Co. in Beverly."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190217/new-tax-law-brings-unpleasant-surprise-to-filers

IR-2017-206: Get Ready for Taxes: Filing Electronically a Safe, Easy Way to File

IRS Newswire December 19, 2017

News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts and Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Compliance and Enforcement Contact My Local Office Filing Options Forms and Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media

Issue Number:    IR-2017-206 Inside This Issue Get Ready for Taxes: Filing Electronically a Safe, Easy Way to File Note to Editor: This is the seventh in a series of reminders to help taxpayers prepare for the upcoming tax filing season. WASHINGTON – The Internal Revenue Service said today that it expects more than 90 percent of all 2017 individual tax returns to be prepared using tax software. The majority of those will be e-filed. Since 1986 when the IRS started accepting electronically filed tax returns, more than 1.8 billion have been securely processed. The IRS urges taxpayers to wait until they have all the forms and documents needed before preparing a tax return. Most documents arrive before the end of January. This includes Forms W-2 from employers and Forms 1099 from banks and other payers. Those claiming the Premium Tax Credit need Form 1095-A from the Marketplace. Not having all required documents may cause a return to have an error that delays processing and therefore, delays the refund. Taxpayers have options to prepare and e-file a return: IRS Free File, free brand-name software for taxpayers with incomes below $66,000 Commercial tax preparation software, Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs, sites with IRS-certified volunteers, or Tax professionals. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov. The IRS2Go Mobile App can help find free tax preparation assistance, check a refund status and more. Taxpayers should keep copies of their most recent tax returns. Taxpayers using a software product for the first time may need their Adjusted Gross Income amount from their prior-year return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return. Taxpayers concerned about identify theft should know the IRS continues to work with state tax authorities and the tax industry to increase security protections as part of the Security Summit‎. Summit efforts have led to a nearly 50 percent decline in the number of new reports of stolen identities on federal tax returns. While working to stop fraudulent refunds, the IRS remains focused on releasing legitimate refunds as quickly as possible in 2018. Faster Refunds with Direct Deposit Choosing e-file remains the safest way to file an accurate income tax return and combining it with direct deposit is the fastest way to receive a refund. In 2017, more than 88 million tax refunds worth over $260 billion were directly deposited into taxpayer's bank accounts. In 2018, the IRS again expects to issue more than nine out of 10 refunds in less than 21 days. However, by law the IRS cannot issue refunds if the return claims the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. The change applies to the entire refund and helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent tax fraud. The IRS has a special page on IRS.gov with steps to take now for the 2018 tax filing season. Back to Top   Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

IR-2017-193, National Tax Security Awareness Week, Online Security - 7 tips for safety

IRS Newswire Nov. 27, 2017

News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Compliance & Enforcement Contact My Local Office Filing Options Forms & Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media

Issue Number:    IR-2017-193 National Tax Security Awareness Week No. 1:  Online Security - Seven Steps for Safety IR-2017-193, Nov. 27, 2017 WASHINGTON – During the online holiday shopping season, the IRS, state tax agencies and the tax industry remind people to be vigilant with their personal information. While shopping for gifts, criminals are shopping for credit card numbers, financial account information, Social Security numbers and other sensitive data that could help them file a fraudulent tax return. Anyone who has an online presence should take a few simple steps that could go a long way to protecting their identity and personal information. The Internal Revenue Service, state tax agencies and the tax community, partners in the Security Summit, are marking "National Tax Security Awareness Week", Nov. 27-Dec.1, with a series of reminders to taxpayers and tax professionals. In part one, the topic is online security. Cybercriminals seek to turn stolen data into quick cash, either by draining financial accounts, charging credit cards, creating new credit accounts or even using stolen identities to file a fraudulent tax return for a refund. Here are seven steps to help with online safety and protecting tax returns and refunds in 2018: Shop at familiar online retailers. Generally, sites using the "s" designation in "https" at the start of the URL are secure. Look for the "lock" icon in the browser's URL bar. But remember, even bad actors may obtain a security certificate so the "s" may not vouch for the site's legitimacy. Avoid unprotected Wi-Fi. Beware purchases at unfamiliar sites or clicks on links from pop-up ads. Unprotected public Wi-Fi hotspots also may allow thieves to view transactions. Do not engage in online financial transactions if using unprotected public Wi-Fi. Learn to recognize and avoid phishing emails that pose as a trusted source such as those from financial institutions or the IRS. These emails may suggest a password is expiring or an account update is needed. The criminal's goal is to entice users to open a link or attachment. The link may take users to a fake website that will steal usernames and passwords. An attachment may download malware that tracks keystrokes. Keep a clean machine. This applies to all devices -- computers, phones and tablets. Use security software to protect against malware that may steal data and viruses that may damage files. Set it to update automatically so that it always has the latest security defenses. Make sure firewalls and browser defenses are always active. Avoid "free" security scans or pop-up advertisements for security software. Use passwords that are strong, long and unique. Experts suggest a minimum of 10 characters but longer is better. Avoid using a specific word; longer phrases are better. Use a combination of letters, numbers and special characters. Use a different password for each account. Use a password manager, if necessary. Use multi-factor authentication. Some financial institutions, email providers and social media sites allow users to set accounts for multi-factor authentication, meaning users may need a security code, usually sent as a text to a mobile phone, in addition to usernames and passwords. For added protection, some financial institutions also will send email or text alerts when there is a withdrawal or change to the account. Generally, users can check account profiles at these locations to see what added protections may be available. Encrypt and password-protect sensitive data. If keeping financial records, tax returns or any personally identifiable information on computers, this data should be encrypted and protected by a strong password. Also, back-up important data to an external source such as an external hard drive. And, when disposing of computers, mobile phones or tablets, make sure to wipe the hard drive of all information before trashing. There are also a few additional steps people can take a few times a year to make sure they have not become an identity theft victim. Receive a free credit report from each of the three major credit bureaus once a year. Check it to make sure there are no unfamiliar credit changes. Create a "My Social Security" account online with the Social Security Administration. There users can see how much income is attributed to their SSN. This can help determine if someone else is using the SSN for employment purposes. The IRS, state tax agencies and the tax industry are committed to working together to fight against tax-related identity theft and to protect taxpayers. But the Security Summit needs help. People can take steps to protect themselves online. Visit the "Taxes. Security. Together." awareness campaign or review IRS Publication 4524, Security Awareness for Taxpayers, to see what can be done.   Back to Top Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

---

This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to  by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535

IR-2017-182: 10 Million Taxpayers Face an Estimated Tax Penalty Each Year; Act Now to Reduce or Avoid it for 2017; New Web Page Can Help

IRS Newswire October 31, 2017

News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts and Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Compliance and Enforcement Contact My Local Office Filing Options Forms and Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media

Issue Number:    IR-2017-182 Inside This Issue 10 Million Taxpayers Face an Estimated Tax Penalty Each Year; Act Now to Reduce or Avoid it for 2017; New Web Page Can Help WASHINGTON — The Internal Revenue Service today reminded taxpayers assessed an estimated tax penalty for tax year 2016 that they still have time to take steps to reduce or eliminate the penalty for 2017 and future years. To help raise awareness about the growing number of estimated tax penalties, the IRS has launched a new "Pay as You Go, So You Don't Owe" web page. The IRS.gov page has tips and resources designed to help taxpayers, including those involved in the sharing economy, better understand tax withholding, making estimated tax payments and avoiding an unexpected penalty. Each year, about 10 million taxpayers are assessed the estimated tax penalty. The average penalty was about $130 in 2015, but the IRS has seen the number of taxpayers assessed this penalty increase in recent years. The number jumped about 40 percent from 7.2 million in 2010 to 10 million in 2015. Most of those affected taxpayers can easily reduce or, in some cases, eliminate the penalty by increasing their withholding or adjusting estimated tax payments for the rest of the year. With a little planning, taxpayers can avoid the penalty altogether. By law, the estimated tax penalty usually applies when a taxpayer pays too little of their total tax during the year. The penalty is calculated based on the interest rate charged by the IRS on unpaid tax. How to Avoid the Penalty For most people, avoiding the penalty means ensuring that at least 90 percent of their total tax liability is paid in during the year, either through income-tax withholding or by making quarterly estimated tax payments. Keep in mind exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishers, casualty and disaster victims, those who recently became disabled, recent retirees, those who base their payments on last year's tax and those who receive income unevenly during the year. For details, see Form 2210 and its instructions. Taxpayers may want to consider increasing their tax withholding in 2017, especially if they had a large balance due when they filed their 2016 return earlier this year. Employees can do this by filling out a new Form W-4 and giving it to their employer. Similarly, recipients of pensions and annuities can make this change by filling out Form W-4P  and giving it to their payer. In either case, taxpayers can typically increase their withholding by claiming fewer allowances on their withholding form. If that's not enough, they can also ask employers or payers to withhold an additional flat dollar amount each pay period. For help determining the right amount to withhold, check out the Withholding Calculator on IRS.gov. Taxpayers who receive Social Security benefits, unemployment compensation and certain other government payments can also choose to have federal tax taken out by filling out Form W-4V and giving it to their payer. But some restrictions apply. See the form and its instructions for details. For taxpayers whose income is normally not subject to withholding, starting or increasing withholding is not an option. Instead, they can avoid the estimated tax penalty by making quarterly estimated tax payments to the IRS. In general, this includes investment income —such as interest, dividends, rents, royalties and capital gains —alimony and self-employment income. Those involved in the sharing economy may also need to make these payments. Tips to Make Estimated Tax Payments Estimated tax payments are normally due on April 15, June 15, Sept. 15 and Jan. 15 of the following year. Any time one of these deadlines falls on a weekend or holiday, taxpayers have until the next business day to make the payment. Thus, the next estimated tax payment for the fourth quarter of 2017 is due Tuesday, Jan. 16, 2018. The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay  or the Treasury Department's Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. Taxpayers may also use Form 1040-ES to figure these payments. IRS Publication 505, Tax Withholding and Estimated Tax, is a resource on withholding and estimated payments. Back to Top   Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

---

This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535