Internal Revenue Service

John Miller | iStock | Getty ImagesA group of House Republicans are revisiting the Fair Tax Act, which would replace certain federal levies with a national sales tax and decentralize the IRS.While the plan may not get a floor vote and wouldn't make it through the Democrat-controlled Senate, policy experts say the plan would make the tax system more regressive, meaning the burden decreases as income gets higher.Introduced in early January, the proposal would eliminate income, payroll, estate and gift taxes, to be replaced…

Bill Oxford | E+ | Getty ImagesIf you're banking on a tax refund, it may be "somewhat lower" than last year's payment, according to the IRS.Typically, you can expect a federal refund if you've overpaid yearly taxes or withheld more than what you owe. One of the big reasons for smaller payments this year is expiring pandemic relief, which was delivered via tax breaks for 2021 returns, experts say.More from Smart Tax Planning:Here's a look at more tax-planning news.Meanwhile, many Americans are still struggling financially,…

Drakula & Co. | Moment | Getty ImagesHow soon to expect a tax refund after filing your returnTypically, you will receive a refund within 21 days if you've filed an accurate, electronic return with direct deposit for the payment, according to the IRS. Paper filings and errors may extend the timeline. You can check the agency's refund portal for status updates. The timeline changes if you're claiming the earned income tax credit — a tax break for low- to moderate-income workers — or the additional child tax credit.…

If you're expecting a refund this season, it's critical to file a complete and accurate tax return to avoid "extensive processing" and delays, according to the IRS.   One of the keys to error-free filing is including all your required tax forms, known as information returns, which employers and financial institutions send yearly, with copies going to the IRS and taxpayer.If you skip tax forms received by the agency, the IRS systems may flag your return and mail you a notice, explained Sheneya Wilson, a certified public…

kate_sept2004 | E+ | Getty ImagesTax season kicked off for individual filers Monday with a bigger IRS customer service team and enhanced technology as the agency begins to deploy its nearly $80 billion in funding. Over the past several months, the IRS has hired 5,000 new customer service staff, aiming to "significantly increase" the number of answered calls, Deputy Secretary of the Treasury Wally Adeyemo told reporters Friday.IRS service was flagged as one of the agency's "most serious problems" in the National Taxpayer…

If you made a Roth individual retirement account conversion in 2022, you may have a more complicated tax return this season, experts say. The strategy, which transfers pretax or non-deductible IRA funds to a Roth IRA for future tax-free growth, tends to be more popular during a stock market downturn because you can convert more assets at a lower dollar amount. While the trade-off is upfront taxes, you may have less income by converting lower-value investments."You get more bang for your buck," said Jim Guarino, a…

Constantine Johnny | Moment | Getty ImagesThere's still time to avoid a penalty if you didn't pay enough taxes in 2022 — but the clock is ticking.If you are self-employed or receive income from gig economy work, investments and more, the deadline for your 2022 fourth-quarter estimated tax payment is Jan. 17.Your payment may reduce your 2022 tax bill and bypass extra penalties and interest, according to financial experts.More from Personal Finance:Tax season opens for individual filers on Jan. 23, says IRSHere are 3 key…

It's official: The tax season kicks off for individual filers on Jan. 23, the IRS announced Thursday.For most taxpayers, you must file your federal return and pay your balance by April 18 this year to avoid racking up penalties and interest."This filing season is the first to benefit the IRS and our nation's tax system from multi-year funding in the Inflation Reduction Act," said acting IRS Commissioner Doug O'Donnell. "With these new additional resources, taxpayers and tax professionals will see improvements in many…

mediaphotos | E+ | Getty ImagesEnlist tax prep helpOne of the first things to consider: Will you be filing your own taxes this year or tapping an expert to file a return on your behalf?If you're planning to hire a tax preparer, January is a good time to find someone, said certified financial planner Anna Sergunina, president and CEO of MainStreet Financial Planning in Los Gatos, California."Don't wait till March," she warned. "They most likely will not be taking on new clients that late in the tax season."For those eyeing…

New U.S. Speaker of the House Kevin McCarthy, R-Calif., speaks with reporters in Washington, Jan. 7, 2023.Jon Cherry | ReutersHouse Republicans on Monday night voted to slash funding for the IRS, following a pledge from newly-elected Speaker Kevin McCarthy to repeal the money approved by Congress last year.   Passing along party lines, the bill would rescind tens of billions allocated to the agency over the next decade through the Inflation Reduction Act passed in August.The measure doesn't have the support to pass in the…