Easy steps to avoid tax return errors that can delay processing or adjust refunds

Issue Number:​ ​ 2022-12

Inside This Issue

  1. Easy steps to avoid tax return errors that can delay processing or adjust refunds
  2. Reasons why some tax refunds filed electronically take longer than 21 days
  3. Electronic tax payment, agreement options available to taxpayers who owe
  4. Deadline reminder: IRS has $1.5 billion in refunds for people who haven’t filed a 2018 federal income tax return
  5. Remember to check a box on Form 1040, 1040-SR, 1040-NR on virtual currency transactions for 2021
  6. A Closer Look: Timing is right to consider a career at the IRS
  7. IRS finalizes FAQs for payment by Indian tribal governments and Alaska Native Corporations to individuals
  8. IRS revises FAQs on third-round EIPs, 2020 unemployment compensation exclusion
  9. News from the Justice Department’s Tax Division
  10. Technical Guidance

1.​ ​ Easy steps to avoid tax return errors that can delay processing or adjust refunds


This filing season, the IRS is seeing signs of a number of common errors, including some taxpayers claiming incorrect amounts of the Recovery Rebate Credit and Child Tax Credit. Visit IRS.gov for easy ways to avoid common mistakes being seen so far this tax season. This article is also available in Spanish and Simplified Chinese.

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2.​ ​ Reasons why some tax refunds filed electronically take longer than 21 days


Even though the IRS issues most refunds in less than 21 days for taxpayers who filed electronically and chose direct deposit, some refunds may take longer. The IRS shares many of the different factors that can affect the timing of a refund after the IRS receives a return. This article is also available in Spanish and Simplified Chinese.

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3.​ ​ Electronic tax payment, agreement options available to taxpayers who owe


If your client has a tax bill, remind them that there are several ways to make payments, and there are options for many people who can’t pay their tax bill in full by the​ April tax deadline. This article is also available in Spanish and Simplified Chinese.

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4.​ ​ Deadline reminder: IRS has $1.5 billion in refunds for people who haven’t filed a 2018 federal income tax return


Unclaimed income tax refunds totaling almost $1.5 billion may be waiting for an estimated 1.5 million taxpayers who did not file a 2018 Form 1040 federal income tax return, but people must act before the April tax deadline. In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. For 2018 tax returns, the window closes April 18, 2022, for most taxpayers. This article is also available in Spanish and Simplified Chinese.

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5.​ ​ Remember to check a box on Form 1040, 1040-SR, 1040-NR on virtual currency transactions for 2021


There is a virtual currency question at the top of Form 1040, Form 1040-SR and Form 1040-NR. It asks: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” All taxpayers filing Form 1040, Form 1040-SR or Form 1040-NR must check one box answering either “Yes” or “No” to the virtual currency question. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency in 2021. This article is also available in Spanish and Simplified Chinese.

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6.​ ​ A Closer Look: Timing is right to consider a career at the IRS


In the recent issue of “A Closer​ Look,” Ken Corbin, Commissioner, Wage & Investment Division and Chief Taxpayer Experience Officer, discusses why this is the right time to consider a career with the IRS. This article is also available in Spanish.

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7.​ ​ IRS finalizes FAQs for payment by Indian tribal governments and Alaska Native Corporations to individuals


The IRS issued final frequently asked questions (FAQs) for Payments by Indian Tribal Governments and Alaska Native Corporations to Individuals under COVID-Relief Legislation. These reflect updates to the draft FAQs, released in May 2021, based on input from tribal government and Alaska Native Corporations leaders.

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8.​ ​ IRS revises FAQs on third-round EIPs, 2020 unemployment compensation exclusion


The IRS revised the following frequently asked questions (FAQs):

FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.

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9.​ ​ News from the Justice Department’s Tax Division


Florida tax return preparer Fred Pickett Jr. was sentenced to 97 months in prison for preparing false tax returns for his clients. In addition to the term of imprisonment, Pickett has been ordered to serve one year of supervised release and pay approximately $169,639 in restitution to the IRS.

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10.​ ​ Technical Guidance


Notice 2022-14 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for March 2022 used under section 417(e)(3)(D), the 24-month average segment rates applicable for March 2022, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

Revenue Ruling 2022-7 updates Rev. Rul. 2004-53 in accordance with the Taxpayer First Act by explaining that all recipients of returns or return information pursuant to section 6103(c), including government employees, are subject to the disclosure restrictions of section 6103(a).

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