Many taxpayers are hesitant about calling the IRS for several reasons, including the long wait time to speak with a representative. A phone call could take hours that you may not have to spare in your day to get answers to simple questions. The IRS launched what they believe to be the answer to this problem: voice bot options.
How the IRS Voice Bot Works
Generally, voice bots are artificial intelligence that allow callers to interact using verbal responses. Taxpayers with simple questions about payments, notices and other tax related inquiries can now avoid waiting for a live person to become available.
The voice bot offers services in both English and Spanish, aiding a large percentage of Americans.
Which Lines Have a Voice Bot?
While the IRS states that numerous lines now have voice bot options, it seems this feature will best be suited for Automated Collection System toll-free lines, Accounts Management, discussing payment plan options, and frequently asked questions.
So far, the voice bot has answered over 3 million calls. The IRS continues to add functions to help more taxpayers resolve their issues quickly.
Future Voice Bot Enhancements
Upcoming 2022 enhancements for the automated feature includes:
Account and return transcripts
Payment history
Current balance owed
The Economic Impact Payment line will also have responses for frequently asked questions.
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With the rise of gas prices and the decline of the housing market, it’s no secret that the United States is experiencing inflation. Inflation doesn’t stop at gas and housing, though, as the state of the economy also impacts your taxes. The IRS updates certain tax provisions annually to account for inflation, so your tax and investment plans should change accordingly.
Inflation and Standard Deductions
Standard deductions rise during inflated tax years. For 2022, the deduction for joint filers is expected to rise to $25,900; an $800 difference. Single filers and married taxpayers filing separately now have a standard deduction of $12,950. This is a $400 difference from last year. Heads of households now have a standard deduction of $19,400 for 2022, which is a $600 difference. The 401(k) limit has been increased as well, making it $20,500.
2022 Marginal Rates During Inflation
The marginal rates (based on income level) are as follows:
Incomes greater than $539,900 ($647,850 for joint filing) have a rate of 37%
Incomes greater than $215,950 ($431,900 for joint filing) have a rate of 35%
Incomes greater than $170,050 ($340,100 for joint filing) have a rate of 32%
Incomes greater than $89,075 ($178,150 for joint filing) have a rate of 24%
Incomes greater than $41,775 ($83,550 for joint filing) have a rate of 22%
Incomes greater than $10,275 ($20,550 for joint filing) have a rate of 12%
Incomes of $10,275 or less ($20,550 or less if filing jointly) have a rate of 10%
Alternative Minimum Tax During Inflation
The AMT tax exemption for the 2022 tax year has also increased due to the economy. It is now $75,900 and begins to phase out when your income reaches $539,900. Married couples filing jointly have a minimum of $118,100 and begins to phase out at $1,079,800.
What You Can Expect
Although the IRS has made some inflation adjustments, several provisions of the tax code have yet to be amended. This means that taxpayers will pay more for the 2022 tax year.
You should review your spending and update your financial plans and investment accounts to avoid problems with the IRS in the future. Not all taxpayers may be affected by the inflation, but some state and federal provisions have not been updated to reflect the times. A tax professional can help you plan according to your state provisions and your current income level.
For Assistance with Tax Debt During Inflation
Our tax professionals will review your case and inform you on how to move forward in your tax relief journey. Optima Tax Relief has a team of dedicated and experienced tax professionals with proven track records of success.
A new study shows that the IRS may be able to complete nearly half of the nation’s tax returns automatically. The study proves that over 60 million pre-populated tax returns can be correctly auto filled with information that the IRS previously collected.
In this episode of The Tax Show for People Who Owe, the hosts discuss solutions to unaffordable payment plans. What should you do if you can’t make a payment? Tune in for suggestions.
There are instances where income will not be taxed, whether or not you report it during tax season. Understanding which earnings are taxable versus non-taxable could save you a lot of time and trouble when you file your tax returns.
There is no shame in needing professional help during tax season. In fact, if you’re able to afford tax assistance or find community resources, you’ll have a better likelihood of accurate returns. Getting your return completed correctly the first time means fewer delays and getting your refund faster. Choosing the wrong tax professional, however, could hurt you in the long run. The IRS has shared several tips for choosing a tax professional.
Certified public accountants are licensed by state boards of accountancy in the District of Columbia and U.S. territories. They must pass the Uniform CPA Examination and have completed a study in accounting at a college level. To maintain an active CPA license, it is required that a CPA completes specified levels of continued education.
Tax attorneys are licensed by state courts, the District of Columbia, or designees such as the state bar. If you’re considering hiring an attorney specializing in tax prep, they should still have a degree in law and passed a bar exam.
Tax Professional History
Conducting your own research is crucial to choosing a tax professional. Sources such as the Better Business Bureau can give you some history on the professional that you’re considering. Notable things in their background would be disciplinary actions and the status of their license. The State Board of Accountancy is used for CPAs, the State Bar Association for attorneys, and the IRS verifies enrolled agent status here.
Service Fees for Tax Professionals
The goal of the tax preparer should not be larger refunds than their competitors. Tax preparers that charge by taking a percentage of your refund may not have your best interest in mind. More money sounds great at first, but compliance with the IRS is the ultimate goal. You want to be sure that the tax pro is not using deductions you don’t qualify for, or other means to increase your refund and make more money.
There is never a reason to show your personal documents or Social Security number to a tax preparer when you’re asking about a quote.
Book a Tax Professional Early
You don’t want to wait until the last minute to find a tax professional. As soon as the tax season ends, it’s a good idea to contact a tax preparer for next year. Fly-by-night preparers are high risk investments.
Providing Documentation
Keep records and receipts handy for filing season. This will make the tax preparer’s job a lot easier, and increase the likelihood of accuracy for your return. A good tax preparer should ask questions to figure out your total income and tax deductions, or credits.
Blank Tax Returns, Signing, and Filing
You should never sign a blank tax form, even if the preparer sent it to you. Always review your return thoroughly and ask questions if you’re confused. This is important, you want to make sure the refund is going directly to you, and not through the preparer. They should also provide you with a copy of the completed return.
You also want to make sure that your tax professional e-files your return. Filing electronically and choosing direct deposit is the quickest way for you to get your refund.
Preparer Tax Identification Number
All paid tax preparers must sign returns and include their PTIN, or Preparer Tax Identification Number by law. If your preparer does not have a PTIN, do not move forward with their paid services.
Optima’s Tax Services
Now that you know these tips for choosing a tax professional, you can get help. Optima Tax Relief has a team of dedicated and experienced tax professionals with proven track records of success.
CEO David King and Lead Tax Attorney Phil Hwang reconvene to continue the discussion on IRS installment agreements. In this episode of The Tax Show for People Who Owe, the hosts discuss solutions to unaffordable payment plans. What should you do if you can’t make a payment? Tune in for suggestions.
