TaxMama’s® TaxQuips IRS Improvements Summer of 2021

It’s TaxQuips time from TaxMama.com® –
today TaxMama® wants to tell you about resources that are opening up for you on the IRS website.

Dear Family,

The IRS was busy last week, issuing announcements people have been waiting for about the advance payment of the Child Tax Credit this summer. The IRS will pay half the total credit amount in advance monthly payments. You will claim the other half when you file your 2021 income tax return.

Eligible families who already filed or plan to file 2019 or 2020 income tax returns should not use the non-filer tool. You will get the funds distributed automatically, starting July 15^th.

Non-Filer Sign-Up Tool – https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool . This tool has two purposes:

Use this tool to report your qualifying children born before 2021 if you:
Are not required to file a 2020 tax return, didn’t file one and don’t plan to; and
Have a main home in the United States for more than half of the year.
Also, if you did not get the full amounts of the first and second Economic Impact Payment, you may use this tool if you:
Are not required to file a 2020 tax return, didn’t file and don’t plan to, and
Want to claim the 2020 Recovery Rebate Credit and get your third Economic Impact Payment.

In addition, we expect to see another Opt-In tool for people whose children were born in 2021, or who got custody of children in 2021.

And here IS the Opt out tool!

Not everyone will want to get these payments in advance – for a variety of reasons. Taxpayers have expressed a desire to opt out. The IRS will be adding the new tools to this page.
https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

In other news, the IRS held a very informative Digital Day webinar on July 17^th. (The IRS will be posting the video here, in a couple of months.) Meanwhile, if you missed it, you will want to read this handout. FINAL_HANDOUT_Online_Services_Digital_Day_508_June2021

Some highlights:

For Taxpayers – you will have an expanded online account:
- You will be able to access many more IRS tools, transcripts, records and payment plans.
- You will also be able to see all the payments you have submitted to the IRS – and any scheduled payments.
- You will also be able to see and approve powers of attorney that you have given to tax professionals. It will accept an electronic signature.
For Tax Professionals – you will also have an expanded online account:
- Most importantly, when it comes to powers of attorney (POA) (Form 2848) and information authorization forms (Form 8821), you will be able to fill in the client’s (and your) information directly into the system – and sign electronically.
  - When your client logs into their account and approves it, you will have instant access to their account. (Instead of the current `10-12 week wait to get into the CAF unit).
  - You can add multiple representatives to the POA, but only the first two will get copies of notices sent to the taxpayer.

This will work for people who have access to their own cell phone accounts and have credit accounts. The IRS is making some changes to make this more accessible for seniors and others who don’t necessarily have active credit accounts. But this will still not be useful for many of the people who need our help the most – non-filers – people who haven’t filed a tax return for a year or more. They won’t have any information about last year’s adjusted gross income.

Regardless, these are additional systems – they don’t replace the old ways to reach the IRS. The IRS designed them to be accessible to the largest possible number of taxpayers in compliance. More improvements will be added in the coming year.

And remember, you can find answers to all kinds of questions about taxes and business issues, and EA Education, free. Where? Where else? At https://iTaxMama.com/AskQuestion

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