Thursday, 19 April, 2018

Triggering a Tax Audit from the IRS

Annette Kraft               CBS News Annette Kraft CBS News
Nellie Chapman | 16 April, 2018, 06:26

Crypto Taxes - As April 17th closes in Credit Karma, the highly used Tax platform in the United States, announced that less than 100 people have reported capital gains from cryptocurrency investments in 2017.

Then there's "tax relief scams": Watch for deceptive advertisements claiming to reduce a person's tax liability greatly.

Although this is generally referred to as a six-month extension, note that although Tax Day this year is April 17, 2018, rather than April 15, your 2017 tax return will be due on October 15, 2018. But you can do yourself a huge favor by aiming to get everything done at least a day or two in advance, Greene-Lewis said.

Almost 1 in 10 tax filers takes advantage of an even further delay that IRS automatically grants: The 6-month extension.

Maagero added not to forget about the new tax system beginning next year, "This is the last year of the tax laws that were in effect for '17, ' so a lot the deductions and credits that were available to you, are going to be going away".

If you're getting a refund, the IRS would like you to file on time. If you're working in the gig economy or as a freelancer, you're allowed to take advantage of business expense deductions that you may not be eligible for as a W-2 employee, such as start-up costs, computers, auto expenses and so on, according to Greene-Lewis.

Per the IRS, there are more than 90,000 volunteers around the country, who can help you correctly complete your return.

"The IRS will work with you", he said.

And the turn-around time to get your refund is pretty fast: The IRS issues 9 out of 10 refunds in less than 21 days after a return is filed.

However, if you can't find a way to pay - file anyway. If your income is above that, multiply what you paid previous year by 1.1 (to get to 110%).

Taxes are due on Tuesday.

Sanford from the IRS said it order to be considered timely it must bear that postmark of the final day of filing - in this case this year April 17.