New IRS Online Account Feature: Easier Access to Tax Documents

The IRS has introduced a new enhancement to the IRS Individual Online Account, making it easier for taxpayers to access key tax documents. With this update, individuals can now retrieve their Form W-2 (Wage and Tax Statement) and Form 1095-A (Health Insurance Marketplace Statement) directly through their Online Account. Currently, these forms will be available for tax years 2023 and 2024 under the Records and Status tab. The IRS has also announced plans to add more tax documents in the near future.

Why This Update Matters for Taxpayers

Having easy online access to tax forms can simplify the filing process, especially for those who need to quickly retrieve their documents for tax preparation. This feature can be particularly useful for taxpayers working with an accountant, as it allows them to share necessary tax documents faster and with greater accuracy.

However, it’s important to note that the availability of documents depends on who the form was issued to. If you are married, your spouse must log into their own IRS Online Account to access their respective tax documents—even if you file jointly.

Important Reminder: State and local tax information from Form W-2 will NOT be available in the Online Account. Taxpayers should always keep the original W-2s mailed to them by their employers for reference.

How to Create an IRS Online Account

If you haven’t set up your IRS Individual Online Account yet, follow these steps:

1. Visit the IRS Online Account page.

2. Click the blue button labeled “Sign in to your online account.”

3. Select the option “Create a new account.”

4. Follow the identity verification process, which includes either:

   • Uploading a photo of your government-issued ID and taking a selfie, or

   • Completing a live video call with an ID.ME agent (no biometric data required).
     
     
     

Need Help?

If you have any questions about this new IRS feature or need assistance setting up your account, our team is here to help.

Reach out to us at info@AmataAccountingFirm.com with the subject line “ID.ME”, and someone from our team will assist you.

Having an IRS Online Account can help taxpayers and their accountant streamline tax preparation, ensuring a smoother and more efficient filing process. Take advantage of this new feature today!

Special Tax Relief for California Wildfire Victims; Various Deadlines Postponed to Oct. 15th 

Here is the latest IRS bulletin (1/10/2025) regarding tax relief for California wildfire victims.

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds that began on Jan. 7, 2025. 

These taxpayers now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments. 

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief. 

The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov. 

Filing and payment relief 

The tax relief postpones various tax filing and payment deadlines that occurred from Jan. 7, 2025, through Oct. 15, 2025 (postponement period). As a result, affected individuals and businesses will have until Oct. 15, 2025, to file returns and pay any taxes that were originally due during this period. 

This means, for example, that the Oct. 15, 2025, deadline will now apply to: 

• Individual income tax returns and payments normally due on April 15, 2025.

• 2024 contributions to IRAs and health savings accounts for eligible taxpayers.

• 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.

• Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025.

• Calendar-year partnership and S corporation returns normally due on March 17, 2025.

• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.

• Calendar-year tax-exempt organization returns normally due on May 15, 2025.

In addition, penalties for failing to make payroll and excise tax deposits due on or after Jan. 7, 2025, and before Jan. 22, 2025, will be abated as long as the deposits are made by Jan. 22, 2025. 

The Disaster assistance and emergency relief for individuals and businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period. 

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief. 

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these kinds of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated. 

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. 

This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. 

Additional tax relief 

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2025 return normally filed next year), or the return for the prior year (2024). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2026. Be sure to write the FEMA declaration number – 4856-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details. 

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details. 

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow. 

The IRS may provide additional disaster relief in the future. 

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov. 

If you have any questions, please send us an email at “info@amataaccountingfirm.com” and put “tax relief” in the subject line of your email. 

We are here to support you.

IT’S NOT TOO LATE FOR TAX PLANNING

In the ideal world, we started tax planning on January 1st. However, in most cases, we don’t think about our tax liability until April 15th of the following year.

It’s not too late!

As we head into the last weeks of 2024, there is still time to make moves to lower your 2024 tax liability. However, you’ll need a game plan.

Here are my tips for end-of-year tax planning:

1. Make sure that you know what your business’ net profit is. You won’t be able to figure out your estimated tax liability if you don’t know how much taxable income you earned from your business. We offer an annual clean-up service for your books so that we can help you figure out that number. If you currently do not have your books on any kind of bookkeeping software, we recommend either Quickbooks Online, Xero, or Wave. On most platforms, you’ll be able to either link your business bank and credit card accounts directly to their platforms or have the ability to upload your transactions to their platforms. That saves you from manually entering an entire year’s worth of transactions.
   
   

2. Check the withholding on your most recent paystub. Did you withhold enough Federal and State tax from your W2 income? For example, if you are in a 22% tax bracket for Federal tax and your year-to-date withholding is only 12% of your taxable wages, then you may owe tax in April. It’s also a good practice to check your withholding every year so that you are in a better position for the next tax filing.
   
   

3. Calculate your estimated tax. I know that’s easier said than done. If you don’t have any experience, we offer quarterly estimated tax calculaton services. Quarter 4 2024 estimated tax isn’t due until January 15, 2025. So there’s still time to calculate your 2024 estimated tax liability after December 31st. However, if you’re concerned about having the funds to pay the estimated tax, it’s better to prepare your calculation before the year ends, so that you can pay in part of your estimated tax now, some at January 15th, and the balance by April 15th.
   
   

4. Sign up for tax planning. It’s not too late to reach out to us and request a free 2024/2025 tax plan quote.Included in this quote is an estimate of multi-year tax savings with advanced tax strategies.

MISLEADING SOCIAL MEDIA ADVICE

LEADS TO FALSE CLAIMS

FOR TAX CREDITS

Business Owners:

Beware of a series of scams and inaccurate social media advice. Social media schemes led to thousands of inflated refund claims during the past tax season including claims for the Fuel Tax Credit, Sick and Family Leave Credit and household employment taxes. The IRS increased its compliance efforts related to false and questionable credits and shared FAQs to address common questions and provide next steps for those receiving IRS letters.

Myths continue to persist that these schemes are ways to obtain a huge refund. Avoid them!

I understand that accounting/tax ads may show up in your Facebook, Instagram, TikTok, or Youtube feeds. However, not every accountant/tax professional gives the viewer the full picture. They usually just want the clicks.

If you have any questions on any topics you’ve watched online, please send us an email at “info@AmataAccountingFirm” so that we can confirm that what you watched is legitimate and if it will be a benefit to your business.

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