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The IRS is sending over 9 million letters to potentially eligible families who did not claim stimulus payments

The IRS is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation.

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Choosing a special Identity Protection PIN adds extra safety for taxpayers

The IRS reminds taxpayers they can get extra protection starting in January by joining the agency's Identity Protection Personal Identification Number (IP PIN) program. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number or Individual Taxpayer Identification Number on fraudulent federal income tax returns. The IRS has made recent changes to the program to make it easier for more taxpayers to join.

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What is an Offer in Compromise?

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.

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Identity Theft Related to Unemployment

Unemployment compensation fraud was one of the more common identity theft schemes that emerged in 2020 as criminals exploited the COVID-19 pandemic and the resulting economic impact.

The U.S. Department of Labor's Inspector General estimated approximately $89 billion in unemployment compensation was lost in 2020 due to fraud.

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All taxpayers now eligible for Identity Protection PINs

All Tax Payers are now eligible to voluntarily get an Identity Protection PIN that will help protect you from tax-related identity theft. The IP PIN is a 6-digit number assigned to eligible taxpayers. It helps prevent identity thieves from filing fraudulent tax returns with stolen Social Security numbers (SSNs). An IP PIN helps the IRS verify taxpayers’ identities and accept their electronic or paper tax returns for processing.

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Avoid delays: Use e-file with direct deposit for faster refunds

Although every year the IRS encourages taxpayers to e-file their returns and use direct deposit to receive refunds, to those taxpayers who have previously not used e-file, the IRS emphasizes using it this year to avoid paper-related processing delays. Taxpayers can file electronically by using a tax professional, IRS Free File or other commercial tax preparation software. The IRS cautioned paper-filed tax returns and paper checks will take even longer this year due to a variety of reasons.

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