Income Tax News

The Trump administration has ordered employees who telework at the Internal Revenue Service to return to office this month, signaling it intends to ignore protections in the agency’s union contract.

The Treasury Department, which includes the IRS, issued a memo Friday saying it would “cancel” all regular telework agreements on March 8 for people who live within 50 miles of an office. They would be expected to report to work on March 10.

Many Treasury workers have remote-work protections in their collective-bargaining agreement. But the Treasury directive will require “100%” in-person work, “including members of a bargaining unit.”

In a subsequent phase of the plan, workers who live more than 50 miles from an office would be assigned to one, suggesting they would be required to commute long distances or move to keep their jobs.

There would only be “limited exceptions” to the plan, such as for military spouses, according to the memo.

“The White House has been using a complete return-to-office mandate as one of its cudgels to make people quit.”

The National Treasury Employees Union, which represents thousands of IRS workers and other Treasury employees, sent an email to members Friday calling the mandate a clear violation of its agreement. It described the policy as “outrageous.”

“We will file a national grievance and unfair labor practice charge that will cover each one of you, and we will vigorously fight to have this policy rescinded and restore the hard-earned contractual rights of our members,” the union said.

A Treasury employee, asking to speak on condition of anonymity for fear of retaliation, told HuffPost that workers across the agency were “furious.”

The return-to-office mandate is part of the White House’s sweeping attack on the federal workforce.

The administration has fired probationary employees en masse, effectively shut down agencies unilaterally and tried to push out tens of thousands of civil servants through a deferred resignation offer called “Fork in the Road.” All those actions are being challenged in court as illegal.

President Donald Trump talks with reporters before boarding Marine One on the South Lawn of the White House in Washington, Friday, Feb. 28, 2025. (AP Photo/Ben Curtis)

The White House has been using a complete return-to-office mandate as one of its cudgels to make people quit. It has said that anyone who resigns under the “Fork” program would be exempt from the return and paid through September.

Federal unions have warned that many agencies literally don’t have the space for a full return-to-the-office. Noting that remote-work arrangements in the federal government long predated the pandemic.

Workers at several agencies were able to secure or extend telework arrangements under the administration of President Joe Biden, setting up a fight with the new White House. Trump has said he hates the union contracts with such protections and intends to throw them out.

In an earlier memo, the administration claimed union telework agreements that conflict with its own plans are “unlawful and cannot be enforced.”

The NTEU recommended employees follow the IRS’ order, “even though it violates the CBA.”

“If you do not comply with such directives, you may be subject to potential disciplinary action from the agency,” the union said.

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PHOENIX – Arizona Lawmakers at the capitol are discussing ways to fund upgrades at Chase Field in downtown Phoenix.

What we know:

HB 2704, introduced by Rep. Jeff Weninger, would recapture sales and income taxes associated with the field and the Arizona Diamondbacks, and direct them to funding repairs and upgrades.

Not everyone’s on board with the proposed plans.

If you’re a Diamondbacks fan, you know Chase Field is old and needs a lot of repairs, and in order for this bill to pass, the city, county, and state all have to come to an agreement.

The backstory:

Chase Field is one step closer to getting $500 million worth of repairs after the House passed it 35-25. It now moves on to the Senate.

Rep. Weninger introduced the bill in January and has since made revisions after negotiations with the city and county.

“Recapture of revenue generated at Chase Field does not go to the team or ownership. These dollars go to the county for critical improvements, repairs and construction at the publicly owned Chase Field,” Rep. Weninger explained.

Derrick Hall, president and CEO of the Arizona Diamondbacks, is calling this a first step victory in this much-needed public-private partnership.

His full statement reads, “Today was a first step victory in this much-needed public/private partnership. It shows the momentum that has been behind this bill and we are grateful to Representative Wenninger and Governor Hobbs for the leadership and encouragement, as well as all House Representatives who supported it. Allowing this proud franchise to remain at Chase Field for continued economic and community impact is in the best interest of the City, County, State, and Major League Baseball.”

“There’s an intent clause in the bill that the team will contribute $250 million of their own to the repairs and construction of the stadium, that again, the stadium that they do not own,” Rep. Weninger said.

The other side:

Phoenix Mayor Kate Gallego posted on X on Feb. 25 explaining why she’s in opposition.

“Today, the State House will consider H.B. 2704, which subsidizes renovations to Chase Field with hundreds of millions hard-earned tax dollars. It takes $200 million from the City of Phoenix alone, which will have a real impact on our ability to pay for police and fire services,” she said, in part, before the House ultimately passed the bill.

Big picture view:

Rep. Weninger says he’s been working closely with the city.

“With the county, we did not touch the .2% county jail portion of the tax and what the city were did not touch the .3% that goes with first responders,” he explained. “We’re not pulling from the education, but the rest of the tax and income tax from within the envelope of the stadium would go into a fund that then would go back into the maintenance and improvements of that publicly owned asset.”

If passed, the deal would be good for 30 years.

The bill states that if the Diamondbacks leave in the first ten years, the team will have to pay a $10 million penalty and all funds left in the Maricopa County-controlled account revert back to the appropriate government entity.

“I support a solution that keeps Major League Baseball and the Diamondbacks here in Arizona, and I am really hopeful that the point of disagreement between the city, county and the state can get worked out so that we can get the deal done,” Arizona Gov. Kaite Hobbs said.

In a previous commerce committee, those in opposition explained why this bill isn’t beneficial to taxpayers.

“According to the team’s own estimates, the bill would take away 15 to 20 million dollars yearly from state and local general funds, diverting funds away from parks, roads and affordable housing,” said Margaret Schultz with Worker Power.

Diamondbacks fans say they’re ready to see improvements made at Chase Field this upcoming season.

Arizona DiamondbacksPhoenixNewsArizona PoliticsKatie HobbsKate Gallego
Originally Appeared Here

Tax filing season is upon us, and some people are worried it may take longer to get their refunds as President Trump says he intends to make significant cuts to the IRS during its busy period. 

Tax experts say these concerns are valid and that it’s more important than ever to file early this year, as Americans could encounter tax refund delays, particularly as they get closer to the filing deadline. The Internal Revenue Service began accepting tax returns on Jan. 27 and will continue to do so until April 15, unless a taxpayer asks for an extension.

Mr. Trump is expected to fire more than 6,000 IRS employees by the end of this week, as he doubles down on efforts to cut the size of the federal workforce. 

Tax accountant Terrance Hutchins, of Logos Financial Group, said taxpayers should expect longer hold times over the phone and slower customer service in general. He still expends refunds on relatively straightforward returns that are filed early and electronically, though, to appear in a timely manner. 

But many taxpayers could experience processing delays as a result of the anticipated cuts. 

“Your refund can be very fast indeed if you receive it by direct deposit, but those promises were made a few weeks ago before the agency knew of the cuts, so it’s very hard to say what the impact will be,” Vanessa Williams, a senior fellow at the Urban-Brookings Tax Policy Center told CBS MoneyWatch.

Will the IRS cuts affect how long it takes to get my refund?

Tax accountants say the advice they always give taxpayers — which is to file their returns early — is even more important this year, in light of the anticipated workforce reduction. If the IRS’ headcount is reduced, any errors on one’s tax return will take longer to remedy. 

If taxpayers file close to the deadline or make mistakes in their returns, Hutchins expects a reduced workforce at the agency would lead to one’s refund being delayed. 

Williams of the Tax Policy Center, said filers in need of assistance should expect slower refunds as a result of long wait times and worse customer service.  “You spend a lot of time on hold, and there are real consequences,” she said, recalling the 2010s when the IRS was understaffed.

Democratic Senators warned in a letter to the Trump administration Tuesday that potential staff cuts could lead to delayed tax refunds for Americans in 2025. 

“Staffing reductions at the IRS resulting from Trump’s hiring freeze and potential layoffs would likely delay tax refunds, harm taxpayer service and undermine law enforcement effort,” the senators wrote. It’s essential that the agency responsible for processing refunds be fully staffed to support Americans through tax season and “answer their questions, process their returns, send them refunds and keep IRS systems online and functional.”  

“I always advise people to do their taxes as early as they can, partly because hackers can get their social security numbers and file false tax returns,” Katie Brewer, a Texas-based financial adviser told CBS MoneyWatch. Brewer also expects cuts to lead to longer wait times to have tax-related questions answered by phone, a particularly burdensome for older filers, who aren’t as tech savvy and might not be inclined to turn to the IRS’ website for advice, she added. 

When will I get my tax refund?

The IRS says that most refunds are issued in fewer than 21 calendar days, if you file your taxes electronically. It can take longer to get a refund on paper returns.

Taxpayers filing electronically can view the status of their 2025 refund using the IRS’ Where’s My Refund? tool.

Returns that require corrections or extra review could result in a delayed refund, the IRS notes. That’s why Brewer says it’s extra important to ensure that there are no errors on your return. 

“Sometimes people don’t double check things until after they hit send. But I really encourage to make sure not to mix up any numbers or accidentally add a zero because those are the kinds of things that hinder refunds or make it hard to deal with the IRS to correct them,” Brewer said.

Who counts on timely refunds?

Millions of Americans count on receiving their refunds in a timely manner, so that they can repay debt, put money into savings, or make a big purchase. 

“Particularly for working families who receive a child tax credit, or the earned income tax credit, these are often essential supports for Americans,” Williams said. “Low-income people use their tax refunds to pay off their winter heating bills, or to put money aside to cover spring clothes for their kids.”

She added that working-class Americans rely on their tax credits for financial stability. “That’s the purpose. To give people stability when they are working and have kids,” she said. “It’s not a spare $20 someone might be excited to receive as gift or surprise. It’s real money that underwrites the economic security of a very large number of Americans.”

The IRS last year piloted a new, free electronic service called Direct File, that provides public tax preparation services. It’s currently available to 30 million Americans in 25 states, and pulls one’s personal tax filing information directly from the IRS. Using such a service is one way to increase one’s chances of receiving a refund in a timely manner, according to Williams. 

Why haven’t I received my tax refund yet?

The IRS’ Where’s My Refund? tool will tell electronic filers what the status of their 2025 tax refund is 24 hours after they file a return, according to the agency’s website. Those filing by mail can view the status of their refund four weeks after they mail in their return. 

To use the tool, taxpayers need to enter their Social Security number, or ITIN, their filing status and exact dollar amount of their refund rounded to the nearest whole number. 

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Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.

Originally Appeared Here

The Internal Revenue Service on Thursday began firing employees in a massive layoff ordered by the Trump administration, federal workers said, shaking the foundations of the tax agency during filing season.

About 7,000 employees were expected to lose their jobs, according to a person familiar with the decision, who spoke on the condition of anonymity to discuss sensitive information. That’s 7 percent of the roughly 100,000-person agency. Most of the cuts, about 5,000, came in the enforcement and collections section of the tax service, the person said.

Many of the laid-off employees were part of a recent hiring surge meant to improve service and update technology at the agency, which has seen its budget reduced repeatedly since 2010. Taxpayer advocates and Democrats said the loss of several thousand employees could hamstring the agency’s ability to help taxpayers during the filing season, which ends April 15. Losing those workers, critics said, also could jeopardize initiatives that the agency undertook to improve collections, such as increased audits of wealthy people and stricter enforcement of rules governing certain businesses.

The IRS and Treasury Department did not immediately respond to requests for comment.

Plans for IRS layoffs emerged last week. The job cuts are part of a sweeping effort steered by billionaire Elon Musk and the U.S. DOGE Service, which stands for Department of Government Efficiency, to remake the federal government and reduce its workforce. Thousands of probationary employees have been laid off at the National Park Service and at agencies that work on veterans affairs, health and human services, and disease prevention. About 75,000 employees accepted buyouts through a “deferred resignation” program that closed earlier this month. Administration officials have also dismantled the U.S. Agency for International Development and ordered the Consumer Financial Protection Bureau, created in the wake of the 2008 financial crisis, to stop nearly all its work.

Managers were crying Thursday at an IRS campus in New Orleans, said David Carrone, a revenue agent and president of the Louisiana/Arkansas National Treasury Employees Union chapter. Elsewhere, IRS workers who had been told to come to their offices and return their equipment sat and waited for termination notices, employees told The Washington Post.

Carrone’s daughter, Elizabeth, was one of those laid off.

She started as a revenue agent in New Orleans last year, a position she considered a dream job after seeing her dad’s nearly 40-year career with the agency, she said. She bought a house and never expected to be unemployed.

“I told multiple people [that] I thought this was my last job,” she said.

But on Thursday morning, she got a note well after she had been locked out of her work computer — saying she was terminated effective that day, she said. She doesn’t know what will happen to the roughly 30 cases she was working on, and she isn’t sure about what she will do next, though she said may go to work at an accounting firm.

Later Thursday, some probationary employees who still had not received a termination notice were told to go home and wait for a notice to be mailed to them, workers said.

Probationary workers had done nothing to justify losing their jobs and had little time to prepare, said Shannon Ellis, president of the National Treasury Employees Union’s Kansas City chapter, before the layoffs were announced. Some may not know how to get needed medications without health insurance or might struggle to make mortgage payments, she said.

Originally Appeared Here

The presence of Elon Musk’s cost-cutting task force, the Department of Government Efficiency, at the IRS is sparking fresh concerns from Democratic lawmakers about the safety of taxpayer information, and whether the group’s work could cause delays in taxpayers receiving their refunds. 

An IRS employee associated with DOGE is requesting access to the IRS’ Integrated Data Retrieval System, or IDRS, which would provide the group with access to tax data for individuals and businesses, according to a Trump administration official. 

“Waste, fraud, and abuse have been deeply entrenched in our broken system for far too long,” said White House spokesman Harrison Fields. “DOGE will continue to shine a light on the fraud they uncover as the American people deserve to know what their government has been spending their hard-earned tax dollars on.”

News of the request was first reported by the Washington Post. The IRS didn’t immediately return a request for comment.

In a Feb. 17 letter to the IRS, Senators Ron Wyden and Elizabeth Warren, both Democrats, cited reports that DOGE is “pressuring the IRS to agree to a memorandum of understanding (“the MOU”) which would give software engineers working for Elon Musk at DOGE broad access to IRS systems, property and datasets which include the private tax return information of hundreds of millions of American citizens and businesses.”

Supporters of DOGE view its efforts as a way to cut what they see as bloated federal spending at a time when the nation’s outlays are outstripping its tax revenue, pushing the federal debt to an all-time high of $36 trillion. But the group’s efforts have also sparked several lawsuits, with consumer advocates and Democratic lawmakers raising alarms earlier this month after DOGE gained access to the Treasury Department’s payment system, which stores personal data for most Americans. 

IRS data is particularly sensitive, given that it reflects financial details for millions of Americans and businesses, ranging from their income, employers, losses, investments, dependents and other items. Under the IRS taxpayers’ bill of rights, “information [taxpayers] provide to the IRS will not be disclosed unless authorized by the taxpayer or by law.” 

IRS reportedly planning to give DOGE staffer access to sensitive taxpayer data

02:35

“Software engineers working for Musk seeking to gain access to tax return information have no right to hoover up taxpayer data and send that data back to any other part of the federal government and may be breaking the law if they are doing so,” Wyden and Warren wrote in the Feb. 17 letter. 

The senators pointed to privacy regulations in the tax code that they said provide “strong legal protections” for taxpayer data, noting that violation of those laws can result in incarceration or other criminal penalties. They added that even if the DOGE employees are employed at the Treasury Department, which oversees the IRS, they may still be violating the law by accessing taxpayer data. 

“There are serious statutory and regulatory restrictions on when employees outside the Treasury Department may gain access to tax return information,” the letter said. 

It added, “To date, no information on DOGE employees or any others executing orders on Musk’s behalf have revealed any clear, stated purpose as to why they need access to return information, whether they have followed all required laws to gain access to IRS systems, and what steps the IRS has taken to ensure that inspection of tax return is contained to authorized personnel and not disclosed to any unauthorized parties.”

Protections for taxpayer data were increased in the 1970s after former President Nixon sought to use the IRS against his political opponents, according to New York University’s Tax Law blog. 

“Congress acted to put in place ironclad guarantees against such abuses and a bipartisan consensus emerged to ensure the privacy of every American’s tax information,” Robert Weissman, the co-president of consumer advocacy group Public Citizen, told CBS MoneyWatch. “Musk and DOGE’s attempt to gain access to IRS data raises profound questions about whether those protections are now being shredded.”

In an interview with Fox News, Stephen Miller, White House deputy chief of staff, said DOGE was seeking to find signs of tax fraud. 

“We are talking about performing a basic anti-fraud review to ensure that people are not engaging in large scale theft of federal taxpayer benefits,” he said. “I mean, for example, we pay billions of dollars a year in child tax credit payments to illegal aliens, billions with a B. So these are systematic, programmatic reforms that we’re talking about here.”

Delays to IRS tax refunds?

Wyden and Warren also raised concerns about DOGE’s impact on tax refunds this year. 

DOGE’s work at the IRS comes as the tax agency is in the middle of the current tax season, when about 140 million individual tax returns are expected to be filed before the April 15 deadline. For many households, their tax refund check — which last year averaged more than $3,100 — is often their biggest cash influx of the year.

“We are also extremely concerned that DOGE personnel meddling with IRS systems in the middle of tax filing season could, inadvertently or otherwise, cause breakdowns that may delay the issuance of tax refunds indefinitely,” the Feb. 17 letter said. “Any delay in refunds could be financially devastating to millions of Americans who plan their budgets around timely refunds every spring.”

In the meantime, the IRS is preparing to fire thousands of probationary workers in the middle of tax season, the Associated Press reported, citing two sources familiar with the agency’s plans. It’s unclear how many IRS workers could be impacted, however, the AP noted. Federal workers in a probationary period typically have less than one year on the job and have not yet gained civil service protection.

The cuts would come even as IRS employees were told they would not be able to participate in the Trump administration’s earlier “deferred resignation” offer until after the tax filing deadline had passed.

A letter sent earlier this month to IRS workers said that “critical filing season positions in Taxpayer Services, Information Technology and the Taxpayer Advocate Service are exempt” from the administration’s buyout plan until May 15. 

Taxpayers have until April 15 to file their taxes unless they are granted an extension.

—With reporting by Aaron Navarro. 

Aaron Navarro and

The Associated Press

contributed to this report.

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Aimee Picchi

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

Originally Appeared Here

New Income Tax Bill 2025 FAQs Answered New Income Tax Bill 2025: Finance Minister Nirmala Sitharaman introduced the New Income Tax Bill 2025 in Lok Sabha earlier this week. The New Income Tax Bill is expected to replace the decades old Income Tax Act 1961. It is less complicated and easier for the taxpayer to understand, says the government. The government has released a list of top 30 FAQs that taxpayers may have about the New Income Tax Bill 2025. We take a look:

New Income Tax Bill 2025: Top 30 FAQs Answered

1. When was the current Income-tax Act passed?
The current Income-tax Act was enacted in 1961 and came into existence with effect from 01.04.1962. It has been amended nearly 65 times with more than 4000 amendments, year on year through Finance Acts, based on the evolving requirements of modifications in taxation Policy.
Also Read | New Income Tax Bill 2025: Read full text of proposed new I-T Act
2. What concerns have been raised regarding the Income-tax Act 1961?
Tax administrators, practitioners and taxpayers have acknowledged the contribution of
the Income-tax Act, 1961 in overall tax governance and economy. However, over the time concerns have also been expressed over the accumulation of amendments, the intricate language, detailed provisions, redundancies and the heavy structure of the Income-tax Act.
3. What are the reasons for regular amendments in the Income Tax Act as against other Acts?
The Income-tax Act is dynamic legislation requiring regular updating and amendments to reflect the nation’s changing economic, social, and political realities. Criminal and other civil laws do not undergo such frequent updating and amendments whereas the Income-tax Act is regularly updated (on annual basis) to reflect the economic changes, fiscal policies, and government priorities. It, therefore, adapts to changes in the economy, business environments, inflation rates, income sources, and global financial trends. The government has introduced tax reforms to encourage specific sectors of the economy while balancing the same with requirements of revenue collection and widening/deepening of the tax base. Given its direct link to taxation and economic conditions, the Act needs to be more adaptable to reflect shifting economic policies, changing incomes, inflation, and emerging industries. The dynamic nature of the Income-tax Act provides it flexibility to accommodate new economic trends.
Examples:
i. To promote exports, specific provisions such as 80HH, 80HHC were brought into the statute. The same having served intended purpose have been since omitted or made inapplicable after sun set date.
ii. To promote infrastructure development, section 80IA was brought into Income-tax Act, 1961.
iii. Sections 80HHE, 10A and 10AA were introduced for facilitating software exports.
iv. Section 80IAC is yet another example of encouraging the start-ups.
4. Why has the Income-tax Act 1961, become bulky over time?
The income tax law has become increasingly bulky over time, with its traditional style of drafting and numerous amendments. The complexity of language in the present Act is a product of different factors. To keep pace with certain legal pronouncements, explanations and provisos were often inserted to clarify legislative intent. Changing taxation priorities also led to introduction of additional text to an otherwise simple provision. Further, certain provisions remained in the statute, despite becoming non-operational, in view of pending claims/issues from earlier years.
5. What simplification efforts have been made in the past?
Attempts have been made in the past, including those in 2009 and 2019 for simplification of the Income tax Act. The recommendations from these efforts, as regards policy, have been considered in the amendments carried out from time to time.
6. Has the present simplification exercise considered international experience of other countries who have undertaken similar exercise?
Simplification of tax laws has received attention globally. Countries have undertaken similar exercises to enhance clarity and compliance in their taxation laws. In the UK, the process was carried out during the period 1994 to 2010 for simplifying the language. Before simplification, the UK Income and Corporation Tax Act, 1988 comprised 960 pages. However, after simplification, it was divided into five separate Acts, with their page counts increased, resulting in a more segmented but overall larger body of tax law.
Also Read | New Income Tax Bill 2025 explained: 10 key takeaways for taxpayers – top points you should know
Similarly, Australia underwent a similar process during 1994 to 1997, where simplification of language also resulted in a longer tax code.
These international experiences emphasize the delicate balance between simplification and the need for clear, unambiguous legal language. Drawing from these lessons, effort has been made to focus not just on linguistic simplification but also on structural rationalization.
7. What is the scope of exercise undertaken for the new Income-tax Bill?
The Hon’ble Finance Minister in the budget speech in July 2024 stated that the purpose of the comprehensive review of the Income-tax Act, 1961, is to make the Act “concise, lucid, easy to read and understand”.
8. What ground rules are set for making the existing provisions concise, lucid, easy to read and understand?
Following ground rules have been considered for simplifying the existing provisions:
i. The Bill proposes to eliminate redundant provisions, reducing its length by nearly half.
ii. The drafting style of the new Bill is straightforward and clear, making the provisions easier to understand by incorporating more than 57 tables compared to 18 tables in the Income-tax Act, 1961. Sub-sections and clauses have been used, instead of relying on provisos and explanations for exceptions and carve-outs. This minimises cross references and conflict by aggregating all applicable provisions related to a single scenario in one place.
iii. All provisos (about 1200) and explanations (about 900) have been removed.
iv. The 1961 Act contains numerous cross-references to sections, sub-sections, clauses, sub-clauses, items, and sub-items, making the provisions challenging to interpret. The new Bill adopts a simplified reference system, allowing provisions to be cited by simply mentioning the section. For instance, section 133 (1)(b)(ii) in the new bill would indicate sub-clause (ii) of clause (b) of sub-section (1) of section 133 in the existing Act. This change makes the Act’s language easier to understand.
v. A significant aspect of the Bill is the elimination of the concepts of ‘previous year’ and ‘assessment year’. Prior to 1989, the concept of ‘previous year’ and ‘assessment year’ had been brought because the taxpayers could have different twelve-month previous years for each source of income. From 1st April 1989, previous year was aligned to a financial year in all cases. However, ‘assessment year’ continued to be used for various proceedings under the Act. Thus, a taxpayer was required to track two different periods, i.e., the ‘previous year’ as well as the ‘assessment year’. This presented difficulties in complying to the provisions of the Act especially for a new taxpayer who had to keep track of ‘previous year’, ‘assessment year’ as well as ‘financial year’.
Also Read | Income Tax Slabs FY 2025-26 explained: 20 FAQs individual taxpayers should check to understand tax rates, income tax benefit under new tax regime
9. Whether any consultations have been done with stakeholders, while drafting new Bill?
A comprehensive consultative process was undertaken for the simplification exercise. A total of 20,976 online suggestions for simplification and removal of redundancies were received, analysed and relevant suggestions were categorized into policy-related, language simplification, removal of redundant or obsolete provisions, etc. Meetings with industry and professional associations were held and field-level brainstorming sessions were held within the Income Tax Department, towards this exercise.
At the international level, consultations were held with some of the taxation authorities that had undertaken similar exercise in the recent past, viz. the Australian Tax Office and Treasury, and the UK’s Office of Tax Simplification.
The documents prepared in 2009 and 2019, were also referred, while undertaking the exercise. International and national guidance material such as ‘Drafting Guide for Simplification of Laws’ issued by Legislative Department, Ministry of Law and Justice, was studied for simplification of legal language.
10. What processes were followed in conducting the simplification exercise?
In addition to the stakeholder exercise mentioned in Q I.9, suggestions were sought from taxpayers, industry and professional associations, and field level officers of the Department. A committee of around 150 officers of the Department was actively involved in the entire exercise. The Committee prepared the draft text of various chapters, which was meticulously vetted by the Legislative Department of Ministry of Law and Justice, and consolidated in the form of the final Bill, after necessary approvals.
More than 60,000 man-hours were dedicated by the team for finalising the new Bill.
11. How has the readability improved in the new Bill?
The readability of tax law has been improved by using simpler language, as against traditional legal language. Where multiple situations are covered, the sections have been made enumerative. Wherever feasible, extensive use of table formats has been made. TDS provisions have been presented in a tabular form. Certain provisions such as section 10, which contained about 150 clauses has been placed in Schedules and presented in the form of tables.
As a result of the comprehensive exercise, the size of the new Bill has reduced by about half on one hand and one the other, the provisions have been consolidated and presented in a user friendly format.
12. What is the treatment of numerous ‘provisos’ and ‘explanations’ and procedural aspects in the existing Act?
Provisos (more than 1200) and Explanations (more than 900) have been removed, with their simplified content placed as sub-sections or clauses. Wherever feasible, procedural aspects and specific details are proposed to be provided by way of Rules.
13. Have the redundant provisions of the Income-tax Act 1961 been removed in the new Income-tax Bill?
Yes. Certain provisions became redundant due to numerous amendments and/or policy changes over the years. This resulted in large number of such provisions in the Act. For example, deduction under section 10A, which was a special provision for newly established industrial undertakings in the free trade zones, is no longer available from the Assessment Year 2012-13, onwards. Such obsolete provisions have been removed from the text of the Bill.
However, provisions applicable to earlier Assessment Years shall be governed by Repeal and Savings provisions.
14. What other steps have been taken to enhance clarity in the new Bill?
In addition to removal of ‘provisos’, ‘explanation’ and redundant provisions, formulae, tables, and structures have been used to enhance clarity in the new bill. To the extent possible, provisions involving the same issues, which were present in different chapters in the current Act, have now been consolidated. Redundancy has been removed and definitions at multiple places have been consolidated.
In case of provisions relating to Non-Profit organisations (NPOs), the entire text related to NPOs has been consolidated and structured into 7 sub-parts which contain provisions related to Registration, Income, Commercial activities, Compliances, Violations, Registrations for the purposes of eligibility of donations and Interpretations.
15. How have principles of Tax Certainty followed in drafting of the new Income Tax Bill?
The new Income-tax Bill is approximately half the length of the existing Income-tax Act 1961, with significant re-organisation of provisions in different sections. While undertaking simplification exercise, a conscious attempt has been made to minimise the scope of litigation and fresh interpretations. For this purpose:
a. Key words/phrases, especially where courts have given rulings, have been retained with minimal modifications.
b. Language has been simplified by use of short sentences to the extent possible.
c. Sections have been translated into row or sub-rows in tables, reducing the number of words and bringing clarity.
d. Provisions have been made clear to minimize scope for multiple interpretations. The provisos and explanations have been removed and simplified content has been placed as sub-sections and clauses.
e. Provisions related to international taxation have been dealt with, broadly, to ensure tax certainty.
f. NGO chapter has been made more comprehensive with use of plain language.
g. Exemption sections, for example section 10 in the present Act, has been made simpler through tables and placing large number of provisions in Schedules.
h. Formulae and tables have been used to enhance clarity, wherever feasible.
i. Provisions involving same issues and definitions, which were present in different chapters in the existing Act have been consolidated, to the extent possible.
Also Read | Latest income tax slabs 2025-26: How much tax do individuals earning slightly above Rs 12 lakh have to pay? Marginal relief calculations explained
16. How does the new Bill compare to the Income-tax Act, 1961 in terms of numbers of Chapters, sections and words?
There has been a significant reduction in the text of new Bill, in comparison to the existing Income Tax Act, as summarised below.

Particulars	Income-tax Act 1961	The proposed Act
Chapters	47	23
Sections	819*	536
Words	5.12 lakhs	2.60 lakh

* Effective Sections
Besides about 1200 Provisos and 900 Explanations have been removed.
17. What is the basis of the statement that the Income tax Act, 1961 consists of 819 sections, while the text of the Act only mentions sections till 298?
During the course of numerous amendments to the Income tax Act, 1961, several policy decisions were incorporated as separate provisions. Many a times such provisions were connected to already existing sections and accordingly the new sections were numbered in continuation to the existing sections. For example, several provisions relating to tax on special cases were inserted as sections starting with 115 series viz 115 AC,115AD, 115JB, 115VP etc.
As a result of such insertions, effective sections existing in the Income tax Act, 1961 are 819.
18. Why does the new Bill still contain 536 sections and 2.6 lakh words?
While the existing Income-tax Act contains 298 numbered sections, effective sections in the current Act are 819. This is because other than numeric section numbers there are large number of sections with alpha-numeric codes such as 115A to 115WM (117 sections) and so on. The Income-tax Act not only deals with levy of tax but it is a comprehensive document, which encompasses all aspects of tax administration. It also includes other aspects such as:
(a) laying down the administrative framework, assigning roles and responsibilities for assessing officers, taxpayers, tax deductors, and professionals etc;
(b) setting out the framework for income determination, timelines, appellate procedures, enforcement, assessments, and penalties; and
(c) taking into account the impact of interpretations on economic policy, affecting both domestic and international investments.
The new Bill proposes 536 sections to meet the above-mentioned requirements.
Further, several sections in the new Bill exist primarily to honour the commitments under the existing tax regime, including provisions relating to Minimum Alternate Tax (MAT), various deductions and exemptions, etc. These provisions will remain in force until their respective sunset clauses take effect. Therefore, these are required to be part of new Bill to ensure a smooth transition, while maintaining legal and policy continuity.
19. Whether the simplification exercise has led to no ‘material’ change?
The simplification exercise, inter-alia, encompasses following aspects:
i. Redundant provisions of the Income tax Act have been removed;
ii. Sub-sections and clauses have been used, instead of relying on provisos and explanations for exceptions and carve-outs;
iii. Simplified system for cross referencing of sections, sub-sections, clauses etc has been used;
iv. Extensive use of tables, formulae for enhanced clarity;
v. Consolidation of provisions scattered across various sections/ Chapters relating to a single issue; etc
Since there have been regular amendments to the Income Tax Act, 1961 including amendments proposed in Finance Bill, 2025, the Act stands updated from policy perspective. All amendments proposed upto Finance Bill 2025 have been duly incorporated in the new Income tax bill 2025. Therefore, while no major policy related changes have been made in the Bill, the above aspects have led to proposed ‘material’ changes in the existing law.
20. Whether any mapping of old and new sections will be available?
Section-wise mapping will be made available on the official website of the Income Tax Department.
21. How has ‘previous year’ and ‘assessment year’ been dealt with in the new bill?
The concept of ‘tax year’ has been introduced replacing ‘previous year’ and ‘assessment year’. The timelines and computation in the Bill are now with reference to the financial year for which the income is liable to be taxed. It is expected that the use of ‘tax year’ will make the new Bill easier to comprehend. Further, many of the comparable tax jurisdictions in the world are using one single term, for purpose of denoting the unit period of taxation. ‘Tax year’ is commonly used in many countries.
With the introduction of ‘tax year’, broadly the following principles have been adopted:
i. ‘Tax Year’: Unit period of taxation. This term shall be referred in respect of all transactions and income for that period.
ii. ‘Financial Year’: For purposes of timelines for compliance and for procedural issues.
Also Read | Budget 2025 Income Tax calculator explained: Save up to Rs 1.1 lakh! How income tax slab changes will benefit taxpayers at different salary levels under new regime
22. How have the provisions of TDS and TCS been simplified in the new bill?
TDS and TCS provisions have been made easier to comprehend by providing tables. There are separate tables for payment to residents and non-residents, and where no deduction at source is required. For example, the proposed provisions relating to TDS on rent are shown below:

2	Rent
S No.	Nature of income or sum	Payer	Rate/Threshold Limit
(i)	Income by way of rent	Person other than speciied person	Rate 2%; Threshold limit: Rs 50,000 for a month or part of a month

(Reference can be made to Table in proposed section 393 of the Bill)
23. What has been done to simplify the provisions related to Non-Profit Organizations?
The provisions related to Non-Profit Organizations were present at different places in the existing Act, in section 11, section 12, section 12A, section 12AA, section 12AB, section 13, section 115BBC, section 115BBI, section 115TD, section 115TE, section 115TF. The provisions related to approval are under the first and second proviso to section 80G (5). These have been simplified and consolidated into one chapter. All the provisions related to registered Non-Profit Organisations have now been arranged in Part B of Chapter XVII titled “B.–– Special Provisions for Registered Non-Profit Organisation” in the new Bill.
24. What simplification has been carried out for salaried employees in the new bill?
All the provisions pertaining to salary have been consolidated at one place for ease of understanding so that the taxpayer does not have to refer to separate chapters for filing his return of income. The deductions which were earlier allowed under section 10 of the Income Tax Act,1961, like gratuity, leave encashment, commutation of pension, compensation on VRS and retrenchment compensation, are now part of the salary chapter itself. Some of the allowances like HRA are now provided in Schedule II of the new Bill that finds reference in the provisions relating to salary. The objective was to improve readability by way of providing tables and formulas.
While the chargeability of all the perquisites has been retained in the Act, their valuation, conditions and exceptions have been shifted to Rules as they do not affect every taxpayer. Similarly, redundant and repetitive provisions have also been removed for better readability.
25. What changes are being made to exemptions for specific incomes and persons?
Provisions relating to exemptions for specific incomes and persons are being moved to separate schedules for easier reference and simpler compliance as follows:

Schedules

26. What are the next steps after the new Bill is introduced?
Stage 1: Bill is passed by the Parliament and becomes an Act
Stage 2: Operational and delegated legislation framework
i. Notification of new Rules and Forms.
ii. Simultaneous exercise of software development to set up the systems and processes for various administrative and quasi-judicial functions.
27. How will the old and new provisions co-exist?
Various facets of compliance for the respective years have been mentioned in the Repeals and Savings clause in the Bill, which will safeguard all rights and liabilities accrued under the old law.
28. What are the changes on rates and other policy in the new bill?
There are no changes related to rates. Since there have been regular amendments to the Income Tax Act, 1961 including amendments proposed in Finance Bill, 2025, the Act stands updated from policy perspective. All amendments proposed upto Finance Bill 2025 have been duly incorporated in the new Income tax bill 2025. Therefore, while no major policy related changes have been made in the Bill, the above aspects have led to proposed ‘material’ changes in the existing law.
29. Why is it that on comparison of new Income Tax Bill and earlier provisions, it is found that in some cases viz ‘virtual digital assets’, etc there are certain changes?
The Income Tax Bill 2025 also contains all amendments proposed in Finance Bill 2025. Therefore, the users are advised to compare the provisions of the Income Tax Act, 1961, as updated with proposed amendments in Finance bill 2025, while reading the Income Tax Bill, 2025. There is, therefore, no change in the scope of ‘virtual digital asset’ under the Income Tax Bill, 2025. The definition under the Bill incorporates the amendment already proposed under the Finance Bill, 2025.
30. Which Chapters of the Income tax Act, 1961 have seen large reduction of words, as a result of the simplification exercise?
As noted above, the total words in the new Income Tax Bill, 2025 are around 2.6 lakhs, as against 5.12 lakh words in the Income Tax Act, 1961. Some of the Chapters where substantial reduction of words have been achieved are as given below:

Reduction of words

Originally Appeared Here

Lawmakers and tax experts today emphasized the compelling need to upgrade outdated IT systems at the IRS and leverage emerging technologies like AI to enhance the taxpayer experience.

At the same time, many Democratic members on the House Ways and Means Oversight Subcommittee voiced near-term worries about the Department of Government Efficiency’s (DOGE) access to taxpayer data.

Debate at the Tuesday subcommittee hearing centered on the IRS’s modernization efforts, and witnesses shared potential solutions to upgrade the agency’s tech systems.

“Modernization isn’t a choice, it’s an economic necessity,” said Minesh Ladwa, a global solution manager for tax and revenue management at SAP. “The opportunity in front of us is to turn the IRS into the intelligent, AI-driven tax agency that provides unified taxpayer views internally and externally, uses AI and automation to enhance compliance, and delivers seamless digital taxpayer services.”

“By adopting proven, commercially available solutions, the opportunity is now for the IRS to modernize at scale,” Ladwa said, adding, that the agency can become “the global benchmark for technology-first tax administration.”

Ladwa is a United Kingdom-based expert with two decades of experience leading technology-driven transformations for global tax agencies. He explained that governments across Europe and Asia are leveraging commercially available, scalable IT solutions to increase efficiency – not building IT systems from scratch.

He offered similar advice to the United States, suggesting that the IRS transform “into a technology-first agency, moving beyond fragmented, custom-built IT solutions.”

Additionally, Ladwa recommended “leveraging AI automation and digital services to reduce administrative burdens whilst improving compliance.”

When asked by Chairman David Schweikert, R-Ariz., how difficult it would be to build an AI voicebot to help handle the IRS’s telephone assistance lines, Ladwa said, “I don’t think it’s that difficult.”

In fact, the IRS has already begun deploying such technology. During the 2024 filing season, the IRS said its new voicebot technology helped about two million taxpayers who called the IRS’s toll-free 1040 line get answers to their questions.

Nina Olson, the executive director at the Center for Taxpayer Rights, told the subcommittee that these type of technology upgrades were made possible by the 2022 Inflation Reduction Act (IRA). Congress provided the IRS with about $79 billion in additional funding over a 10-year period in the IRA to help with modernization efforts.

However, Congress rescinded $20 billion of that funding in 2023, and it recently repealed another $20 billion when it approved the latest continuing resolution funding bill in December.

“Through 2024, using IRA funding, there has been significant improvements to taxpayer service on the phones and online account to the fairness of the tax system by focusing on areas of complex non-compliance and to efficiency and effectiveness through digitalization,” Olsen said.

While Democrats and Republicans disagreed on the effectiveness of the IRA funding and whether more funding is needed, they did agree that more IT modernization is needed at the IRS.

“The IRS’s need for information technology modernization is critical,” said Rep. Nicole Malliotakis, R-N.Y. “With the potential to reallocate IRA funds from enforcement to IT improvements, it’s a key priority of the newly established Department of Government Efficiency.”

Democrats Voice DOGE Concerns

DOGE also took center stage at the hearing, where Democratic members expressed concerns that billionaire Elon Musk and his team have access to taxpayer data through the Treasury Department’s payment systems.

“DOGE’s takeover of the Federal payment system is an egregious invasion of the privacy of every American, especially every American taxpayer,” Ranking Member Terri Sewell, D-Ala., said.

“Federal tax law specifically ensures that Americans tax return information is confidential. As you know, unauthorized disclosure of this information is a felony,” she added. “Elon Musk and DOGE should not be rummaging around in the confidential information of private taxpayers and private citizens.”

Olsen explained that the American people don’t know if what the DOGE is doing is “actually pursuant to some legally authorized exception or it’s not.”

“We have to have greater transparency on this, and I think the question marks are creating uncertainty and concern among taxpayers about how their information is being used and who’s getting it,” Olsen said, adding, “That will erode trust in the tax system.”

Rep. Steven Horsford, D-Nev., added that this is “the largest data breach in U.S. history.”

“This should be the priority of this committee and every other committee until it’s resolved. It is not authorized. It’s illegal. Elon Musk and his hackers have caused the largest data breach in U.S. history, and they need to be held accountable now,” Rep. Horsford said.

A Federal judge in New York has temporarily blocked DOGE’s access to the Treasury Department systems, with a hearing set for Friday to further argue the order.

Originally Appeared Here

We are into 2025, and the tax-filing season is open.

Our firm has begun preparing both business and personal tax returns for 2024. However, despite the calendar year changing to a new year, there are still opportunities for taxpayers to reduce their 2024 income tax obligation. Being aware of these tax-savings opportunities and taking advantage of those that may be applicable for the particular taxpayer can help reduce the tax burden when the returns are ultimately filed.

One opportunity for those who are covered by a qualifying high deductible health insurance plan is to contribute to a Health Savings Account. The HSA limit is $4,150 for single coverage for the year and $8,300 for family coverage. Those taxpayers who are 55 and older can also make an additional $1,000 catchup contribution. This contribution must be made by April 15, 2025, for the 2024 tax year. If the employer has already made contributions on behalf of the employee, the additional amount that the employee can contribute is limited by these amounts. It is important to review the health insurance coverage and months under the coverage to properly determine the limits for a deductible HSA contribution as this can vary based on the specific circumstances.

Another opportunity to potentially reduce the 2024 tax obligation is to make a retirement contribution for 2024. If the taxpayer and spouse are not covered by a retirement plan through work, then they can each potentially contribute to a deductible individual retirement account for 2024.

The IRA contribution limits for 2024 are $7,000 for a taxpayer under 50 and $8,000 for those taxpayers aged 50 and older. It is important for a taxpayer to determine their eligibility for these types of retirement contributions as there are restrictions if the taxpayer or spouse is covered through a retirement plan from their employer. There are also restrictions based on income as well.

Likewise, if a taxpayer is self-employed, they have a much higher amount that they can possibly contribute to a retirement plan by using a plan such a SEP IRA, Solo 401K plan or Keogh plan. Depending on the type of plan that the individual chooses to put in place and the amount of their income, there can be significant contributions to these types of retirement plans. The traditional IRA plans are also available to self-employed individuals, but these other types of retirement plans offer a larger deferral option and therefore potential larger tax-savings opportunities.

Another lesser known and newer tax savings opportunity available to Ohio taxpayers is to contribute to the Ohio Angel Scholarship Fund. In 2024 the State of Ohio extended the deadline for these types of contributions to April 15 of the following year. A contribution of up to $750 per single taxpayer or $1,500 for a married couple is allowed. This contribution is a dollar-for-dollar tax credit on the taxpayer’s Ohio tax return. Find a list of the approved educational organizations to which taxpayers can contribute at www.charitable.ohioago.gov.

Another strategy to save money in regard to your taxes is to file and pay your taxes on time. Many taxpayers take an extension on their taxes. However, an extension to file is not an extension to pay. It is important that 100% of the taxes are paid by the April 15 tax-filing deadline for both federal, state and local taxes. If there is a tax balance after that date, the respective taxing agency will charge a late payment penalty which can amount to a significant amount of money.

Knowing all of the potential tax-savings opportunities and working with a tax professional to identify those opportunities that may be available to the specific taxpayer will help to reduce the tax burden. In addition, these may provide ancillary benefits like increased savings for healthcare costs, retirement savings or simply helping others.

Paul Pahoresky is the managing member of PRP & Associates. He can be reached at 440-974-1040×14 or at paul@prpassoc.com. Consult your tax advisor for your specific situation for additional information and guidance on these topics. 

Originally Appeared Here

HELENA — Gov. Greg Gianforte and Republican leaders in the Montana House and Senate have all talked about cutting state income taxes during the 2025 legislative session. This week, lawmakers are starting to look at possible plans to do that – but there are still a lot of different ideas on exactly how to structure the cuts.

(Watch the video for more on how Montana’s income tax structure could change)

Lawmakers considering different options for cutting Montana income taxes

Montana currently has two income tax brackets. An individual pays 4.7% on the first $20,500 of their income and 5.9% on everything above that. For married couples filing jointly, the brackets are below and above $41,000.

On Wednesday morning, the House Taxation Committee held a hearing on House Bill 337, sponsored by House Speaker Rep. Brandon Ler, R-Savage. By 2027, it would lower the top income tax rate from 5.9% to 5.4%, and it would raise the limit on the bottom bracket to $100,000 for individuals and $200,000 for joint filers.

“This is a bill I see that will help out everybody, from the low-income to your higher-income earners, and it will be spread across so that there’s, in my mind, no winners or losers here – every resident of the state of Montana will get an income tax break,” said Ler.

Ler said, once the bill is fully implemented, it will cut the state’s tax collections by about $300 million.

Jonathon Ambarian

House Speaker Rep. Brandon Ler, R-Savage, presented House Bill 337, which would cut Montana’s top income tax rate and widen the bottom tax bracket, Feb. 5, 2025.

During the hearing, opponents of HB 337 said too much of the benefit would go to wealthier Montanans, and that reducing revenues by that amount would threaten the stability of state services. Ler responded that he expected the reduction would be offset by attracting more businesses and income to Montana.

Senate President Sen. Matt Regier, R-Kalispell, has backed Senate Bill 203, sponsored by Sen. Mike Yakawich, R-Billings. That bill, set for a hearing on Thursday, wouldn’t change rates but would set the bottom bracket to the same level as HB 337 – making the change immediate instead of phasing it in over several years.

Yakawich said SB 203 was intended to target income tax relief to those in the middle class.

“A family with kids making $100,000, both working, paying for daycare and everything else – it’s really middle class, and they’re struggling, so I really want to help them,” he said.

According to a fiscal analysis by the governor’s budget office, SB 203 would reduce tax collections by about $220 million each of the first two years it’s fully in effect.

Jonathon Ambarian

Sen. Mike Yakawich, R-Billings, is sponsoring Senate Bill 203, which would allow Montanans to pay the state’s lower tax rate on more of their income.

Yakawich has touted his bill’s bipartisan support. Several Democrats, including House Minority Leader Rep. Katie Sullivan, D-Missoula, and Senate Minority Leader Sen. Pat Flowers, D-Belgrade, have signed on as co-sponsors.

Meeting with reporters this week, Sullivan said Republicans had made it clear they intended to pass some form of income tax reductions, and that endorsing SB 203 was a way to show where they’d like those reductions to be directed.

“our focus was is first and foremost property tax relief. Of course, income tax as well.We’d like to see everybody be able to receive a benefit if there’s an income tax plan that goes through, and not just have it focus on the wealthiest Montanans, which is what we see as the proposal right now,” said Sullivan.

Gov. Greg Gianforte has laid out his own proposal, which would drop the tax rate even farther to 4.9%, and wouldn’t change the boundary between the top and bottom tax bracket, but would allow Montanans to claim a larger earned income tax credit.

A legislative bill draft that incorporates Gianforte’s priorities was requested by Sen. Josh Kassmier, R-Fort Benton. Kassmier told MTN this week he expects that bill to be introduced soon, but that it hasn’t been determined yet who will be the lead sponsor.

“The governor has proposed the largest income tax cut in state history by reducing the rate most Montanans pay from 5.9% to 4.9%,” a spokesperson for Gianforte said in a statement to MTN. “Additionally, to help lower- and middle-income Montanans, the governor’s proposal also boosts the earned income tax credit. The governor is supportive of this measure, and will carefully consider any bill that makes it to his desk.”

When presenting his budget proposal in November, Gianforte estimated his income tax reductions would total $850 million.

Originally Appeared Here

As the 2025 tax season kicks off, many citizens are looking forward to their tax refunds. The Internal Revenue Service (IRS) has started to accept tax returns, and those who file early could receive their refunds as soon as mid-February. With the average tax refund last year reaching $3,004, this is seen by many as a considerable financial boost. If you are among the taxpayers anticipating a refund, here are some tips to help you optimize your filing experience and ensure a seamless refund process.

When can you expect your tax refund?

In the words of Mark Steber, chief tax officer at tax preparer Jackson Hewitt, “Tax refunds, for most Americans, are the single largest payday of the year.”

To ensure that you receive your tax refund promptly, it is important to file your returns in a timely manner. Most taxpayers can expect their refunds within 10 to 21 days after filing, especially if they opt for direct deposit. According to IRS data, if you e-file your return as soon as the IRS starts accepting submissions, you might see your refund as early as February 7, 2025.

However, if you are claiming specific credits, such as the Earned Income Tax Credit or Child Tax Credit, your refund may be delayed until March for verification purposes.

To track your refund, the IRS offers a useful tool called “Where’s My Refund?” which provides updates within 24 hours of e-filing. This tool is especially useful for electronic filers, as paper returns can take a month or more to process. The quickest and safest way to receive your refund is by using electronic filing along with direct deposit, which minimizes potential issues compared to paper checks.

For a smooth filing process, keep these important tips in mind

Before filing, make sure you have all the required documents, including W-2s, 1099s, and any relevant tax forms from financial institutions.

For those with more complicated circumstances—such as marriage, divorce, or multiple income streams—consider seeking advice from a tax professional. They can help you navigate potential deductions and credits, guaranteeing adherence to tax regulations while maximizing your refund.

If you are using tax software, many platforms—such as TurboTax and H&R Block—offer free filing options for qualifying taxpayers. For example, TurboTax allows first-time filers or those who have not used their service recently to file for free until February 18, 2025. This could lead to substantial savings while still ensuring a thorough filing process.

What you should do if you miss the filing deadline

Tax returns are due by April 15, 2025. If you cannot meet this deadline, you can request an extension by filing Form 4868. This will give you until October 15, 2025, to submit your return without needing to provide a justification.

However, if you owe taxes, you still need to pay by the April deadline to avoid penalties. If you’re unsure about the process or have outstanding debts with the IRS, it is advisable to consult a tax professional.

Remember, filing early can accelerate the refund process. As the IRS starts accepting returns, those who file promptly can avoid the rush and potential delays that often occur during peak filing season.

To recap: if you are expecting a tax refund, e-filing your taxes early and opting for a direct deposit can help you receive your money faster. Gather all your documents and consider seeking professional help if your tax situation is complex. By taking these steps, you can ensure an easier filing experience and maximize your refund, making this tax season a great opportunity for a financial windfall. Stay informed and organized, and you will be able to receive your refund without unnecessary delays.

Originally Appeared Here