IRS urges taxpayers to update addresses and prepare for upcoming tax season

In the United States, taxpayers are being reminded by the Internal Revenue Service (IRS) about the importance of preparing for tax season as the deadlines approach. The IRS encourages individuals to inform them of any changes in their addresses, a critical step for ensuring that correspondence is received in a timely manner. The challenges faced in reaching the IRS via phone have been recognized, with evidence showing that improvements are still needed in the overall communication process. Meanwhile, the IRS claims progress has been made regarding the level of service provided to taxpayers over the phone. In addition, there are pressing topics such as foreign income tax credits and exclusions that taxpayers need to keep in mind. The IRS outlines how U.S. citizens must report their income, even if it has been taxed abroad. The foreign-earned income exclusion amount is expected to increase to $130,000 by 2025. This exclusion can significantly impact an expatriate's tax liability, but taxpayers must ensure they approach their claims correctly by using different income sources for both the foreign tax credit and exclusion. Taxpayers might also want to take advantage of credits available for clean residential energy. Recent IRS updates indicate that there may be a rush among individuals looking to claim this particular credit, which reflects the growing emphasis on energy efficiency and sustainability. Furthermore, information on these topics may not be readily accessible in all IRS communications, as the service has advised that FAQs and other materials on its website are not official legal authorities. This highlights the need for individuals to do thorough research and seek advice from tax professionals to navigate the complexities of tax preparation effectively. As the tax landscape continues to change, it is essential for taxpayers to stay informed about the evolving regulations and opportunities that may arise.