Council Tax Facts
๐ 2026 Update: Recent Changes in Taxes and Fees
Since the original article was published, several states have introduced new tax laws, particularly regarding Pass-Through Entity Taxes (PTET). These changes could affect taxpayers in those states and are important to understand. The earlier article continues further down the page, providing foundational tax information.
๐ New Pass-Through Entity Taxes
Recent legislation in various states has established PTETs similar to Illinoisโ entity-level tax.
- ๐๏ธ Hawaii enacted Act 50 on June 1, 2023.
- ๐๏ธ Iowa passed House File 352 on May 11, 2023.
- ๐ข Indiana introduced its PTET on February 22, 2023.
- ๐น Kentucky established its PTET with HB 360 on March 24, 2023.
- ๐ฒ Maine plans to implement a PTET starting January 1, 2026, through L.D. 2212.
These new taxes may impact how businesses and individuals report income.
๐ Updates on Forms and Filing
Several IRS forms have clear roles for taxpayers.
- ๐ Form 3911 helps track missing refunds.
- โณ Form 8716 allows businesses an extension to file certain tax returns.
- ๐ Form 1065 is for partnerships to report their income.
- ๐ Form 4506 is used to request copies of tax returns.
Understanding these forms can ease the filing process.
โฑ๏ธ Processing Times Matter
Processing times for tax forms can vary widely.
- ๐ Form 3911, Form 8716, Form 1065, and Form 4506 all have different timelines, and itโs best to check the IRS website for current information.
Knowing these times can help taxpayers plan better.
๐ Key Points to Remember
- ๐๏ธ New PTET laws in several states may change tax obligations.
- ๐ Important IRS forms include 3911, 8716, 1065, and 4506.
- โฑ๏ธ Processing times for forms can vary; check for updates.
- ๐ State tax changes may affect how income is reported.
๐ก Tips for Understanding Your Tax Situation
Reviewing the details of your tax situation with an attorney can provide clarity tailored to your needs.
๐ Keep Up with State Tax Changes
Stay informed about any new tax legislation in your state. Laws can change frequently, impacting your tax rate and filing requirements.
๐ป Utilize IRS Free Resources
Take advantage of IRS Free File for eligible taxpayers. This can help simplify the filing process and reduce costs.
๐ Contact Tax Assistance Services
Explore local services like Volunteer Income Tax Assistance (VITA) for free help. They can assist with tax preparation and answer your questions.
๐ Know Your Filing Deadlines
Be aware of tax form deadlines to avoid late fees. Each form has its own due date, and submitting them on time is essential.
๐ Familiarize Yourself with IRS Forms
Understand the purpose of common IRS forms. Knowing what each form does can streamline your filing process and help you avoid mistakes.
๐ Explore Free Tax Help Options
Look into programs like Tax Counseling for the Elderly (TCE). These programs offer free assistance, especially to seniors who may need extra support.
๐ Tax Services Ranked by User Reviews (2026)
This section highlights various tax services available to taxpayers, focusing on their user ratings and what they offer. The rankings are based on Trustpilot data as of October 2026, and scores can fluctuate. Ratings reflect user experiences, and unhappy customers often leave more reviews.
๐ฅ 1. Advanta Tax
Advanta Tax holds a Trustpilot score of 4.3. It is known for providing nationwide tax services, including IRS resolution and state tax debt assistance. Some clients report experiencing delays in service, which is worth considering when seeking help.
๐ฅ 2. SMAART Tax
SMAART Tax has a Trustpilot score of 4.4. This service offers virtual tax services across all 50 states. However, it is primarily online, and in-person consultations are limited, which may not suit everyoneโs needs.
๐ฅ 3. Libre Tax Service
Libre Tax Service has a Trustpilot score of 4.1. It is known for online tax preparation and IRS audit defense services. Some users find the website navigation challenging, which could affect their experience.
4๏ธโฃ Jackson Hewitt Tax Service
Jackson Hewitt Tax Service holds a Trustpilot score of 4.2. This service is recognized for its tax preparation and has locations nationwide. However, some users have complained about customer service responsiveness, which may impact satisfaction.
5๏ธโฃ TaxSlayer
TaxSlayer has a Trustpilot score of 4.0. It specializes in online tax preparation software with affordable pricing. Users have reported occasional issues with software glitches, which could affect the filing experience.
6๏ธโฃ KBO Tax & Accounting Services
KBO Tax & Accounting Services has a Trustpilot score of 4.5. This service offers nationwide tax preparation along with bookkeeping and accounting services. Its in-person office locations are limited, which might not appeal to everyone in need of direct assistance.
๐ Free Tax Assistance Options
Free tax assistance is available through programs like IRS Free File and Volunteer Income Tax Assistance (VITA). These services can help eligible taxpayers prepare and file their returns without cost.
๐ What to Compare When Choosing Tax Services
- ๐ท๏ธ Check Trustpilot ratings and review counts.
- ๐ข Look for service availability in your state or online.
- ๐ฌ Read about user experiences for insights.
- ๐ Consider processing times for tax forms.
- ๐ต Evaluate pricing and any potential hidden fees.
โ Frequently Asked Questions
โ What is a Pass-Through Entity Tax?
A Pass-Through Entity Tax (PTET) is a tax on income passed through to owners or shareholders of an entity. It is designed to simplify tax reporting for businesses.
๐ท๏ธ How do I file for an extension on my business taxes?
You can file for an extension by submitting Form 8716 to the appropriate IRS center by the due date of your return. This grants you additional time to file your taxes.
๐ What do I do if I havenโt received my tax refund?
If you haven't received your tax refund, you should fill out Form 3911 to request a trace. This form helps track the status of your refund with the IRS.
๐ Are there penalties for filing taxes late?
Yes, there are often penalties for filing taxes late. The penalties can add up over time, so itโs best to file on time or request an extension.
๐ป Can I use online tax services to file my taxes?
Yes, many online tax services offer user-friendly platforms for filing taxes. Make sure to choose a reputable service with good reviews to ensure a smooth experience.
๐ด Is there special help for seniors filing taxes?
Yes, programs like Tax Counseling for the Elderly (TCE) provide free tax assistance specifically for individuals aged 60 and older. This can be a great resource for senior taxpayers.
โ๏ธ Recent Court Cases Related to Taxes
Several recent court rulings could impact tax practices and regulations. These cases often clarify tax laws and set precedents for future tax issues.
- Court affirms tax deed validity in Jagnow v. Pekich rulingAppellate Division of the Supreme Court of the State of New York ยท September 23, 2026
- Court dismisses appeal in tax lien foreclosure caseAppellate Division of the Supreme Court of the State of New York ยท September 23, 2026
- Court rules in favor of DBW TL HOLDCO in tax lien caseAppellate Division of the Supreme Court of the State of New York ยท September 23, 2026
- Court reverses tax sale ruling affecting property owner rightsCommonwealth Court of Pennsylvania ยท September 29, 2026
For more information on recent rulings, visit the more rulings on the news page.
End of October 2026 Update
The council tax is the system of local taxation used in the United Kingdom nations of England, Scotland, and Wales. ย The council tax has been in effect in these places since 1993, when it replaced the community charge system of local taxation. ย The council tax is determined by residential property owned by the taxpayer. ย ย Calculating the Council Tax ย Council taxes are determined by the local rates for the ownership of property by the taxpaying individual. ย They are collected by the local collecting authority and distributed to various precepting authorities. ย These precepting authorities include strategic authorities, joint boards, public-owned utilities, lowest-tier authorities, and special purpose authorities. ย ย ย 1. Band Determination ย Every property within the council tax is given a band level, which is determined by the estimated value of the property. ย There are 8 bands (or 9 in Wales), which are listed from A to H. ย Each local authority establishes the rates for a โDโ property with two resident taxpaying adults. ย This basis will then formulate the tax rates for all bands, according to the per-established formula set by the council tax laws. ย Higher valued properties, identified as E, F, G, and H properties, will pay more from the base rate, while lower valued properties, identified as A, B, and C properties will pay less. ย ย ย 2. Tax rates by band classification ย While properties classified as band D will pay 100% of the determined taxes, each tax away from the D band in either the higher or lower value bands will pay a per-determined percentage amount. ย The lowest valued properties, in band A, will pay 67% of the standard rate. ย Band B properties will pay 78% of the full rate, while Band C properties will pay 89% of the full rate. ย Properties valued above band D properties will pay more, with the highest band, H properties, will pay 200% of the standard rate. ย ย ย ย 3. Exemptions ย Certain properties are not subject to the council tax for various reasons. ย The following are some of the most common exemptions: ย - Dwellings which are unoccupied and require extensive work or have recently been finished. ย ย - Dwellings owned by charities ย - Dwellings who have residents currently detained in jail or prisons. ย ย - Buildings occupied by ministers of any religion. ย - Halls or residences inhabited by students. ย - A home where all occupants are under 18.ย ย ย What the Council Tax is used for ย Council taxes only supply about 25% of the total local government budgets. ย Instead, 75% is paid for by central government grants and business taxes. ย These taxes help pay for police, fire, garbage collection, schools, parks and numerous local services for the benefit of the local residents. ย Many local governments must provide these services by the laws and regulations of the central governments. ย ย Many reforms have been suggested, especially as the taxes do not consider the income levels of the occupants of a residence. ย Instead, the sole basis for taxation rates for council taxes are the perceived property value of the building. ย Council taxes also apply to renters, who may be renting a building in which they could not afford to purchase.