etrent17/irs-articles huggingface dataset:
IR-2022-214, December 6, 2022
WASHINGTON — The Treasury Department and Internal Revenue Service today issued proposed regulations identifying certain syndicated conservation easement (SCE) transactions as "listed transactions" – abusive tax transactions that must be reported to the IRS.
In these transactions, investors typically acquire an interest in a partnership that owns land and then claim an inflated charitable contribution deduction based on a grossly overvalued appraisal when the partnership donates a conservation easement on the land.
The IRS previously identified certain SCE transactions as listed transactions in Notice 2017-10. Recent court decisions in the Sixth Circuit and the U.S. Tax Court ruled that the IRS lacks the authority to identify listed transactions by notices, such as Notice 2017-10, and must instead identify such transactions by following the notice and public comment procedures that apply to regulations.
Treasury and the IRS disagree with these decisionsPDF and continue to defend Notice 2017-10 and similar notices in litigation except in the Sixth Circuit. At the same time, however, Treasury and IRS issued the proposed regulations to eliminate any confusion regarding the need to report these transactions and to ensure that these decisions do not disrupt the IRS's ongoing efforts to combat abusive tax shelters throughout the nation.
Treasury and the IRS intend to finalize these proposed regulations, after due consideration of public comments, in 2023 and intend to issue proposed regulations identifying additional listed transactions in the near future.
IR-2022-212, December 2, 2022
The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2020 unemployment compensation exclusion in Fact Sheet 2022-39PDF. The updates are:
Topic D: Amended Return (Form 1040-X): Combined question 1 and 2, removed question 3 and renumbered question 4
Topic E: Impact to Income, Credits, and Deductions: Question 2
Topic G: Receiving a Refund, Letter, or Notice: Questions 2, 3, 5, 8 and 9
Topic H: Finding the Unemployment Compensation Amount: Question 2
More information about reliance is available. 
IRS-FAQ
IR-2021-27, January 29, 2021
WASHINGTON — The Internal Revenue Service today explained how corporations may qualify for the new 100% limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA of 2020), enacted December 27, temporarily increased the limit, to up to 100% of a corporation's taxable income, for contributions paid in cash for relief efforts in qualified disaster areas.
Under the new law, qualified disaster areas are those in which a major disaster has been declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. This does not include any disaster declaration related to COVID-19. Otherwise, it includes any major disaster declaration made by the President during the period beginning on January 1, 2020, and ending on February 25, 2021, as long as it is for an occurrence specified by the Federal Emergency Management Agency as beginning after December 27, 2019, and no later than December 27, 2020. For a list of disaster declarations, visit FEMA.gov.
Qualified contributions must be paid by the corporation during the period beginning on January 1, 2020 and ending on February 25, 2021. Cash contributions to most charitable organizations qualify for this increased limit. Contributions made to a supporting organization or to establish or maintain a donor advised fund do not qualify.
A corporation elects the increased limit by computing its deductible amount of qualified contributions using the increased limit and by claiming the amount on its return for the tax year in which the contribution was made.
Corporations must meet the usual recordkeeping requirements that apply to charitable contributions, including obtaining a contemporaneous written acknowledgment (CWA) from the charity. The CWA must be obtained before the corporation files its return, but no later than the due date, including extensions, for filing that return.
The TCDTRA of 2020 added an additional substantiation requirement for qualified contributions. For corporations electing this increased limit, a corporation's CWA must include a disaster relief statement, stating that the contribution was used, or is to be used, by the eligible charity for relief efforts in one or more qualified disaster areas.
Because of the timing of the new law, the IRS recognizes that some corporations may have obtained a CWA that lacks the disaster relief statement. Accordingly, the agency will not challenge a corporation's deduction of any qualified contribution made before February 1, 2021, solely on the grounds that the corporation's CWA does not include the disaster relief statement.
For additional details on the recordkeeping rules for substantiating gifts to charity, see Publication 526, Charitable Contributions, available on IRS.gov. More information about other coronavirus-related relief, can be found at IRS.gov.
IR-2021-26, January 29, 2021
WASHINGTON — The Internal Revenue Service today posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs.
The updates to the FAQs cover how the COVID-related Tax Relief Act of 2020, enacted December 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits.
The paid sick and family leave credits, which previously were available only until the end of 2020, have been extended for periods of leave taken through March 31, 2021.
The paid sick leave credit is designed to allow qualified businesses – those with fewer than 500 employees and who pay "qualified sick leave wages" – to get a credit for wages or compensation paid to an employee who is unable to work (including telework) because of coronavirus quarantine or self-quarantine or has coronavirus symptoms and is seeking a medical diagnosis. Eligible employers may claim credit for paid sick leave provided to an employee for up to two weeks (up to 80 hours) at the employee's regular rate of pay up to $511 per day and $5,110 in total.
In addition, an eligible employer can receive the paid sick leave credit for employees who are unable to work due to caring for someone with coronavirus or caring for a child because the child's school or place of care is closed, or the paid childcare provider is unavailable due to the coronavirus. Eligible employers may claim the credit for paid sick leave provided to an employee for up to two weeks (up to 80 hours) at 2/3 the employee's regular rate of pay, or up to $200 per day and $2,000 in total.
Employers are also entitled to a paid family leave credit for paid family leave provided to an employee equal to 2/3 of the employee's regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the family leave credit.
Eligible employers are entitled to immediately receive a credit in the full amount of the paid sick leave and family leave plus related health plan expenses and the employer's share of Medicare tax on the leave provided through March 31, 2021. The refundable credit is applied against certain employment taxes on wages paid to all employees.
Eligible employers may claim the credits on their federal employment tax returns (e.g., Form 941, Employer's Quarterly Federal Tax Return), but they can benefit more quickly from the credits by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, an eligible employer may request an advance payment of the credits from the IRS by submitting a Form 7200, Advance Payment of Employer Credits Due to COVID-19PDF.
IR-2021-17, January 19, 2021
WASHINGTON — The Internal Revenue Service today released Notice 2021-11PDF addressing how employers who elected to defer certain employees' taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year.
In response to a presidential memorandum signed August 8, 2020, Notice 2020-65 was issued on August 28, 2020, giving employers the option to defer certain employees' Social Security taxes from September 1, 2020, to December 31, 2020. This applied to employees paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately. The taxes, which are technically called Old Age, Survivors and Disability Insurance, or OASDI, are calculated at 6.2% of employees' wages.
Any taxes deferred under Notice 2020-65 are withheld and paid ratably from employee wages between January 1, 2021, until April 30, 2021. However, the Consolidated Appropriations Act, 2021, signed into law December 27, extended the period that the deferred taxes are withheld and paid ratably. The period is now for the entire year − from January 1, 2021, through December31, 2021. Notice 2021-11 makes changes to Notice 2020-65 to reflect this extended period. Payments made by January 3, 2022, will be considered timely because December 31, 2021, is a legal holiday. Penalties, interest and additions to tax will now start to apply on January 1, 2022, for any unpaid balances
Employees could see their deferred taxes being collected immediately. Employees should check with their organization's payroll point of contact on what their collection schedule will be.
Additional tax relief related to the COVID-19 pandemic can be found on IRS.gov.
IR-2021-14, January 14, 2021
WASHINGTON — The Internal Revenue Service today reminded businesses and other payors that the revised Form 1099-MISC, Miscellaneous IncomePDF, and the new Form 1099-NEC, Nonemployee CompensationPDF, must be furnished to most recipients by February 1, 2021.
Redesigned Form 1099-MISC
The IRS revised Form 1099-MISC for the 2020 tax year to accommodate the creation of a new Form 1099-NEC. The redesigned 1099-MISC has different box numbers for reporting certain income. Businesses must send Form 1099-MISC to recipients by February 1, 2021, and file it with the IRS by March 1 (March 31 if filing electronically).
If businesses are using Forms 1099-MISC to report amounts in box 8, Substitute Payments in Lieu of Dividends or Interest, or box 10, Gross Proceeds Paid to An Attorney, there is an exception to the normal due date. Those forms are due to recipients by February 16, 2021.
New Form 1099-NEC
Form 1099-NEC is a new form for tax year 2020 for nonemployee compensation of $600 or more to a payee. This form should be filed with the IRS, on paper or electronically, and sent to recipients by February 1, 2021.
There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions. Also, nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the Taxpayer Identification Number provided was incorrect.
Deadlines help fraud detection
The due dates for information returns, like Forms 1099-MISC and 1099-NEC help the IRS more easily detect refund fraud by verifying income that individuals report on their tax returns. Payors can help support that process, and avoid penalties, by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms.
For more information, the instructions for Forms 1099-MISC and 1099-NEC are available on IRS.gov.
IR-2021-08, January 11, 2021
WASHINGTON — The Internal Revenue Service is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC).
The ETAAC provides an organized public forum for discussion of electronic tax administration issues − such as prevention of identity theft and refund fraud − in support of the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. ETAAC members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and tax industry to fight electronic fraud.
The IRS is looking for qualified individuals who will serve three-year terms beginning in September 2021. Applicants should have experience in such areas as state tax administration, cybersecurity and information security, tax software development, tax preparation, payroll and tax financial product processing, systems management and improvement and implementation of customer service initiatives.
The IRS also encourages representatives from consumer groups with an interest in tax issues to apply. Applications will be accepted through March 1, 2021.
Nominations of qualified individuals may be made by letter and received from organizations or the individuals themselves. Applicants should complete the ETAAC application PDFand include a short statement of interest and a resume. Applicants should describe and document their qualifications, past and current affiliations, and involvement with cybersecurity and electronic tax administration.
In addition, applicants must successfully complete a tax compliance check, practitioner background check and FBI criminal background check.
ETAAC is a Federal Advisory Committee established by the Internal Revenue Service Restructuring and Reform Act of 1998.
Questions about the ETAAC and the application process can be e-mailed to publicliaison@irs.gov.
Recommendations aimed at providing greater ease, convenience to taxpayers and the tax community
IR-2021-07, January 11, 2021
WASHINGTON — The IRS today sent the Taxpayer First Act ReportPDF to Congress, a comprehensive set of recommendations that will reimagine the taxpayer experience, enhance employee training and restructure the organization to increase collaboration and innovation.
The IRS will continue conversations with key stakeholders and congressional committees to secure funding and begin to work toward implementation of these recommendations over the next several years.
"The way we interact with taxpayers and the tax community, the way that we train our employees and the way we structure our organizational structure are important foundations for our future success," said IRS Commissioner Chuck Rettig. "Guided by the law, we will fundamentally change the way we operate, building upon our strengths, with additional focus on areas to improve the important service we provide to our great country."
The Taxpayer First Act, signed into law in July 2019, was designed to improve taxpayer service and ensure the IRS continues to enforce the tax law in a fair and impartial manner. The report to Congress includes three integrated sets of recommendations required by the law, including:
A taxpayer experience strategy that focuses on creating a proactive, convenient, seamless, personalized and effective interaction with taxpayers and the tax professional community;
A comprehensive training strategy, a multi-faceted approach to empowering the workforce and equipping them with the skills and tools they need to advance their careers, provide high-quality service to taxpayers and enhance the taxpayer experience, and
A recommended organizational design that will increase collaboration, coordinate strategic implementation of large-scale initiatives, enhance innovation, strengthen communications and prioritize taxpayer rights, all with the aim of improving the taxpayer experience.
The IRS will begin work to implement several of the recommendations in the report as early as 2021, building upon work already underway to expand digital services, reach underserved communities and improve proactive outreach.
"Over the next 10 years, taxpayers will find expanded options for information and services and an increasingly better experience across all of their interactions with the IRS," Rettig said.
The report to CongressPDF is available on IRS.gov.
Note:
See IRS Statement — Update on Economic Impact Payments for additional information.



Updated: January 8, 2021
IR-2021-06, January 7, 2021
WASHINGTON — Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card.
These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments as rapidly as possible.
If Get My Payment on IRS.gov shows a date that your payment was mailed, watch your mail for either a paper check or debit card. To speed delivery of the payments to reach as many people as soon as possible the Treasury's Bureau of Fiscal Service is sending payments out by prepaid debit card.
IRS and Treasury urge eligible people who don't receive a direct deposit to watch their mail carefully during this period. The prepaid debit card, called the Economic Impact Payment card, is sponsored by the Bureau of the Fiscal Service and is issued by Treasury's financial agent, MetaBank®, N.A. The IRS does not determine who receives a prepaid debit card.
Taxpayers should note that the form of payment for the second mailed EIP may be different than the first mailed EIP. Some people who received a paper check last time might receive a prepaid debit card this time, and some people who received a prepaid debit card last time may receive a paper check.
More information about these cards is available at EIPcard.com.
EIP Cards are safe, convenient and secure. EIP Card recipients can make purchases online or in stores anywhere Visa® Debit Cards are accepted. They can get cash from domestic in-network ATMs, transfer funds to a personal bank account and obtain a replacement EIP Card if needed without incurring any fees. They can also check their card balance online, through a mobile app or by phone without incurring fees. The EIP Card provides consumer protections including certain protections against fraud, loss and other errors.
EIP Cards are being sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. The EIP Card has the Visa name on the front of the Card and the issuing bank name, MetaBank®, N.A. on the back of the card. Each mailing will include instructions on how to securely activate and use the EIP Card.

 


 

 



EIP Cards are being issued to eligible recipients across all 50 states and the District of Columbia. Residents of the western part of the United States are generally more likely to receive an EIP Card.
The swift issuance of this second round of payments follows the successful delivery of more than $270 billion in CARES Act Economic Impact Payments earlier this year. To check the status of a payment, visit IRS.gov/getmypayment. For more information about Economic Impact Payments visit IRS.gov/eip.
IR-2021-05, January 6, 2021
WASHINGTON – Today the Treasury Department and Internal Revenue Service issued final regulationsPDF regarding the credit for qualified carbon oxide captured using carbon capture equipment placed in service on or after February 9, 2018.
The final regulations help businesses understand how the credit for qualified carbon oxide sequestration may benefit those claiming two carbon capture credit amounts, which are:
Up to $50 per metric ton of qualified carbon oxide for permanent sequestration; and
Up to $35 per metric ton of qualified carbon oxide for Enhanced Oil or Natural Gas Recovery purposes. 
Neither of these new credit amounts, contained in the Bipartisan Budget Act of 2018, is subject to a limitation on the number of metric tons of qualified carbon oxide captured. The law also expanded carbon capture to include "qualified carbon oxide," a broader term than "qualified carbon dioxide." Prior to the change in law, carbon capture was limited to a total of 75,000,000 metric tons of qualified carbon dioxide.
These final regulations provide rules to determine:
Adequate security measures for the geological storage of qualified carbon oxide;
Exceptions to the general rule for determining to whom the credit is attributable;
Procedures for a taxpayer to make an election to allow third-party taxpayers to claim the credit;
The definition of carbon capture equipment; and
Standards for measuring utilization of qualified carbon oxide.
In addition, the final regulations allow smaller carbon capture facilities to be aggregated into one project for purposes of claiming the credit when certain factors are present, such as common ownership and location. The final regulations also provide guidance on recapture, including introducing a recapture period of three years. Under these rules, credits must be repaid if carbon oxide leaks into the atmosphere during a three-year period after the initial storage or injection.
The Treasury Department and IRS received written and electronic comments responding to the proposed regulations. A public hearing on the proposed regulations was held on August 26, 2020. Copies of written comments and the list of speakers at the public hearing are available at Regulations.gov.
IR-2021-04, January 6, 2021
WASHINGTON — The Treasury Department and the Internal Revenue Service issued guidancePDF today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).
Today's guidance, Revenue Ruling 2021-02PDF, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on December 27, 2020.
The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient's covered loan. This change applies for taxable years ending after March 27, 2020.
Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.
For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov.
IR-2021-02, January 5, 2021
WASHINGTON — As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), and its instructions to allow electronic filing.
"Electronic filing will make the Form 1024-A application easier to complete while reducing errors," said Edward Killen, Acting Commissioner of the IRS Tax Exempt and Government Entities division. "Electronic filing also shortens IRS processing time so applicants won't wait as long for a response."
Beginning January 5, 2021, IRS will make available the electronic version of the Form 1024-A that organizations seeking to be exempt under Section 501(c)(4) may use to submit online at Pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1024-A (Rev. 01-2018); however, after April 5 the Form 1024-A must be submitted electronically.
The required user fee for Form 1024 will remain $600 for 2021. Applicants must pay the fee through Pay.gov when submitting the form. Payment can be made directly from a bank account or by credit or debit card.
Subscribe to Exempt Organizations Update, a free IRS e-Newsletter, for form updates and other exempt organization news.
Additional information on how to apply for IRS recognition of tax-exempt status:
Applying for Tax-Exempt Status on IRS.gov
Form 1024-A Electronic Filing Overview presentation on StayExempt.irs.gov
Revenue Procedure 2021-08PDF
IR-2021-47, February 26, 2021
WASHINGTON — The Internal Revenue Service today reminds businesses of their responsibility to file Form 8300, Report of Cash Payments Over $10,000, and encourages e-filing to help them file accurate, complete forms.
Although many cash transactions are legitimate, information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. The government can often trace money from these illegal activities through payments reported on complete, accurate forms.
To help businesses prepare and file reports, the IRS created a video on How to Complete Form 8300 – Part I, Part II. The short video points out sections of Form 8300 for which the IRS commonly finds mistakes and explains how to accurately complete those sections.
Also, the IRS encourages businesses to electronically file completed forms. Although they have the option of filing Form 8300 on paper, electronic filing is more accurate and reduces the need for follow-up correspondence with the IRS.
Many businesses have already found the free and secure e-filing system is a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. They get free, automatic acknowledgment of receipt when they file. And, businesses can batch file their reports, which is especially helpful to those required to file many forms.
To file Form 8300 electronically, a business must set up an account with the Financial Crimes Enforcement Network's BSA E-Filing System. For more information, interested businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at BSAEFilingHelp@fincen.gov. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. Eastern time.
For more information about the reporting requirement, see FS-2021-3 available on IRS.gov.
IR-2021-45, February 25, 2021
WASHINGTON — IRS officials issued an alert today concerning amended returns and claims for the Domestic Production Activities Deduction (DPAD). This provision of tax law was repealed as part of the Tax Cuts and Jobs Act for taxable years after December 31, 2017. In the wake of the repeal, the IRS has received a wave of questionable amended returns and claims for tax benefits in the billions of dollars.
"We have no qualms with taxpayers claiming benefits allowed by law," said Doug O'Donnell, Commissioner, Large Business and International Division. "But a very high percentage of the claims for the now repealed Domestic Production Activities Deduction are not properly supported by those claiming it."
A large majority of the filings involve taxpayers who are claiming DPAD for the first time based on studies conducted after the fact, which contain unreasonable assumptions of facts and law.
In September of 2018, LB&I announced a campaign to risk assess claims or amended returns under the repealed section of the law. The IRS will continue to audit this issue even though the section was repealed.
Examiners are auditing these claims with the support of Chief Counsel, engineer specialists, and the Corporate Income and Losses Practice Network. In July 2020, the IRS issued a General Legal Advice Memorandum (GLAM)PDF addressing examples of meritless section 199 online software activity. In many examination cases, once challenged, taxpayers have conceded 100% of the claim. And, the IRS continues to litigate section 199 issues.
Examiners have been advised to consider Section 6676, Erroneous Claim for Refund or Credit, penalties, other applicable penalties, and referrals to the Office of Professional Responsibility (OPR), when appropriate. Taxpayers and their advisors should ensure they have documentation to support their position and should expect that the IRS may impose appropriate penalties unless taxpayers establish that they have reasonable cause. A study does not necessarily provide reasonable cause.
"Meritless claims are harmful to tax administration and voluntary compliance. Any corporate taxpayer who is considering filing such a claim should reconsider. Taxpayers who have already filed can withdraw prior to IRS audit contact to avoid penalties," said O'Donnell.
IR-2021-42, February 19, 2021
WASHINGTON — The Internal Revenue Service is reminding those with income from a farming or fishing business that they can avoid making any estimated tax payments by filing and paying their entire tax due on or before March 1.
This rule generally applies if farming or fishing income was at least two-thirds of the taxpayer's total gross income in either the current or the preceding tax year. Those who choose not to file by March 1 should have made an estimated tax payment by Jan. 15 to avoid an estimated tax penalty. For more information on estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.
Those in the farming business report income and expenses on Schedule F (Form 1040), Profit or Loss From Farming. They also use Schedule SE (Form 1040), Self-Employment Tax to figure self-employment tax if their net earnings from farming are $400 or more. For more information refer to Topic No. 554, Publication 225, Farmer's Tax Guide and Agriculture Tax Center.
Those in the fishing business report income and expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship). They also use Schedule SE (Form 1040) to figure self-employment tax if their net earnings from fishing are $400 or more. For general information about the rules applying to individuals, including commercial fishermen who file Schedule C, refer to Publication 334, Tax Guide for Small Business.
Those whose trade or business is a partnership or corporation see Publication 541, Partnerships or Publication 542, Corporations.
IRS Direct Pay is safe, fast and free
IRS Direct Pay is a free online service where people can make same day payments or schedule them up to 365 days in advance directly from a checking or savings account. There are no IRS fees and no pre-registration. IRS Direct Pay is available seven days a week, and users receive instant confirmation after they submit a payment or they can opt-in to receive email notifications.
IRS Direct Pay cannot be used to pay the federal highway use tax, payroll taxes or other business taxes. Anyone wishing to pay these business taxes electronically can enroll in the Electronic Federal Tax Payment System (EFTPS). EFTPS is also a free service.
For more information about these and other payment options visit IRS.gov/payments.
Related items
Tax Topic 416, Farming and Fishing Income
Publication 5034 (EN-SP), Need to Make a Tax Payment?PDF (English and Spanish)
IR-2021-37, February 12, 2021
WASHINGTON — The Internal Revenue Service will hold a free webinar, "How to Choose a Tax Pro," on Thursday, February 18 at 2 p.m. Eastern time.
Participants should register in advance for this hour-long event. The webinar will:
Provide tips for choosing a tax preparer
Explain the types of paid preparers
Describe how to use the IRS Directory of Federal Tax Return Preparers
Discuss how to avoid "ghost" tax return preparers
Review how to make a complaint about a tax return preparer
Explain the third-party authorization process
There will also be a question and answer period where participants can pose questions to the IRS presenters. The event is open to anyone who is interested.
The webinar will be offered with closed captioning for viewers who are deaf or hard of hearing. Questions before the webinar can be sent to: cl.sl.web.conference.team@irs.gov.
More information on choosing a tax professional can be found at IRS.gov, including a directory of tax return preparers with credentials and select qualifications.
Archived webinars are available at www.irsvideos.gov.
IR-2021-36, February 11, 2021
WASHINGTON — The Internal Revenue Service today reminded taxpayers they can securely access their IRS account information through their individual online account.
The IRS regularly adds features to online account. For example, people can now check the amounts of their Economic Impact Payments (EIPs) to help them accurately calculate any Recovery Rebate Credit they may be eligible for on their 2020 tax return. The EIP amounts can be found on the Tax Records tab. Amounts will show as "Economic Impact Payment" for the first payment and "Additional Economic Impact Payment" for the second payment. For married filing joint individuals, each spouse will need to sign into their own account to retrieve their portion of the payments. For more information regarding the credit, see Recovery Rebate Credit. Additionally, taxpayers can view:
The amount they owe, updated for the current calendar day
Their balance details by year
Their payment history and any scheduled or pending payments
Key information from their most recent tax return
Details about their payment plan, if they have one
Digital copies of select notices or letters from the IRS (under the Message Center tab)
They can also:
Make a payment online
See payment plan options and request a plan via Online Payment Agreement
Access their tax records via Get Transcript
Later in 2021, taxpayers will be able to digitally sign certain authorization forms, such as a power of attorney, initiated by their tax professional.
Here's how to get started for new users:
Select View Your Account at IRS.gov homepage
Select the "Create or View Your Account" button
Click "Create Account"
Pass "Secure Access" authentication. This is a rigorous process to verify that the taxpayers are who they say they are. They must be able to authenticate their identity to continue. See IRS.gov/secureaccess for details.
Create a profile.
Once the initial authentication process is complete, returning users can use the same username and password to access other IRS online services such as Get Transcript and Get An Identity Protection PIN (IP PIN) (if applicable).
All password-protected online IRS tools for taxpayers are protected by multi-factor authentication, offering extra security precautions.
IR-2021-33, February 9, 2021
WASHINGTON — With some areas seeing mail delays, the Internal Revenue Service reminds taxpayers to double-check to make sure they have all of their tax documents, including Forms W-2 and 1099, before filing a tax return.
The IRS reminds taxpayers that many of these forms may be available online. When other options aren't available, taxpayers who haven't received a W-2 or Form 1099 should contact the employer, payer or issuing agency directly to request the missing documents before filing their 2020 federal tax return. This also applies for those who received an incorrect W-2 or Form 1099.
Those who don't get a response, are unable to reach the employer/payer/issuing agency or cannot otherwise get copies or corrected copies of their Forms W-2 or 1099 must still file their tax return on time by the April 15 deadline (or October 15 if requesting an automatic extension). They may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. to avoid filing an incomplete or amended return.
If the taxpayer doesn't receive the missing or corrected form in time to file their tax return by the April deadline, they may estimate the wages or payments made to them, as well as any taxes withheld. Use Form 4852 to report this information on their federal tax return.
If the taxpayer receives the missing or corrected Form W-2 or Form 1099-R after filing their return and the information differs from their previous estimate, they must file Form 1040-X, Amended U.S. Individual Income Tax Return. For additional information on filing an amended return, see Topic No. 308 and Should I File an Amended Return?
Taxpayers should allow enough time for tax records to arrive in the mail before filing their 2020 tax return. In a normal year, most taxpayers should have received income documents near the end of January, including:
Forms W-2, Wage and Tax Statement
Form 1099-MISC, Miscellaneous Income
Form 1099-INT, Interest Income
Form 1099-NEC, Nonemployee Compensation
Form 1099-G, Certain Government Payments; like unemployment compensation or state tax refund
Incorrect Form 1099-G for unemployment benefits
Millions of Americans received unemployment compensation in 2020, many of them for the first time. This compensation is taxable and must be included as gross income on their tax return.
Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits. Taxpayers who are unable to obtain a timely, corrected form from states should still file an accurate tax return, reporting only the income they received.
Use IRS.gov
IRS tax help is available 24 hours a day on IRS.gov, the official IRS website, where people can find answers to tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide PDFlinks to other important IRS services.
IR-2021-32, February 9, 2021
WASHINGTON — The Internal Revenue Service announced today that Nancy Sieger has been selected as the Chief Information Officer. She has served as acting CIO since June 2019.
"Nancy has done an exemplary job as Acting CIO supporting delivery of two rounds of Economic Interest Payments totaling more than $420 billion along with individual tax refunds of more than $320 billion during the pandemic," said IRS Commissioner Chuck Rettig. "She is a remarkable person, enjoys tremendous support from our entire IT team and throughout the IRS. She excelled from every perspective during a very challenging time for our organization and we are extremely pleased that Nancy has agreed to continue leading the IT organization."
Sieger is responsible for all aspects of IT systems that operate the nation's tax infrastructure. She oversees the 7,000-person IT organization that maintains hundreds of systems and supports the processing of millions of tax returns annually.
Sieger previously served as the Deputy CIO for Filing Season and Tax Reform. In that capacity, she provided leadership for executing all technology changes needed to deliver the Tax Cuts and Jobs Act, in addition to ensuring IT delivered a seamless annual tax filing season and integrated software and operational solutions that aligned with modernization goals. She also previously served as the Acting Deputy CIO for Operations and the Associate CIO for Applications Development.
A graduate of the IRS 2004 Executive Development class, Nancy has a strong business background. Prior to joining the IT organization, she served in several headquarters and field positions in both Wage and Investment and Small Business/Self Employed Operating Divisions.
Throughout her career, Sieger has been committed to the principles of Equal Employment Opportunity and Diversity. She served as chair of the IT Diversity and EEO Advisory Committee and actively mentors employees at all levels.
Sieger is the recipient of Fed Scoop 50 awards for exemplary Federal Leadership, a Gears of Government President's Award, and was honored with a Presidential Rank Award for Meritorious Service.
Sieger is a graduate of the University of Maryland.
IR-2021-31, February 8, 2021
WASHINGTON — The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA).
Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed IndividualsPDF. They'll claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and December 31, 2020, and on their 2021 Form 1040 for leave taken between January 1, 2021, and March 31, 2021.
The FFCRA, passed in March 2020, allows eligible self-employed individuals who, due to COVID-19 are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax. The credits are equal to either their qualified sick leave or family leave equivalent amount, depending on circumstances. IRS.gov has instructions to help calculate the qualified sick leave equivalent amount and qualified family leave equivalent amount. Certain restrictions apply.
Who may file Form 7202
Eligible self-employed individuals must:
Conduct a trade or business that qualifies as self-employment income, and
Be eligible to receive qualified sick or family leave wages under the Emergency Paid Sick Leave Act or Emergency Family and Medical Leave Expansion Act as if the taxpayer was an employee. 
Taxpayers must maintain appropriate documentation establishing their eligibility for the credits as an eligible self-employed individual.
Resources:
Form 7202 and instructions
Coronavirus (COVID-19) tax relief
IRS Publication 5419, New COVID-19 Employer Tax Credits (obsolete)
FFCRA related Q&As
IR-2021-30, February 5, 2021
WASHINGTON — The Internal Revenue Service reminds taxpayers to avoid "ghost" tax return preparers whose refusal to sign returns can cause a frightening array of problems. It is important to file a valid, accurate tax return because the taxpayer is ultimately responsible for it.
Ghost preparers get their scary name because they don't sign tax returns they prepare. Like a ghost, they try to be invisible to the fact they've prepared the return and will print the return and get the taxpayer to sign and mail it. For e-filed returns, the ghost preparer will prepare but refuse to digitally sign it as the paid preparer.
By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund.
Unscrupulous tax return preparers may also:
Require payment in cash only and not provide a receipt.
Invent income to qualify their clients for tax credits.
Claim fake deductions to boost the size of the refund.
Direct refunds into their bank account, not the taxpayer's account.
The IRS urges taxpayers to choose a tax return preparer wisely. The Choosing a Tax Professional page on IRS.gov has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.
No matter who prepares the return, the IRS urges taxpayers to review it carefully and ask questions about anything not clear before signing. Taxpayers should verify both their routing and bank account number on the completed tax return for any direct deposit refund. And taxpayers should watch out for preparers putting their bank account information onto the returns.
Taxpayers can report preparer misconduct to the IRS using IRS Form 14157, Complaint: Tax Return PreparerPDF. If a taxpayer suspects a tax preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct AffidavitPDF.
IR-2021-28, February 4, 2021
WASHINGTON — Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to:
face masks;
disinfectant for use against COVID-19;
hand soap;
hand sanitizer;
disposable gloves;
tape, paint or chalk to guide social distancing;
physical barriers (for example, clear plexiglass);
air purifiers; and
other items recommended by the Centers for Disease Control and Prevention (CDC) to be used for the prevention of the spread of COVID-19.
Rev. Proc. 2021-15PDF, issued today, provides guidance related to educators and their expenses under the COVID-related Tax Relief Act of 2020, which was enacted as part of the Consolidated Appropriations Act, 2021. The new law clarifies that unreimbursed expenses paid or incurred after March 12, 2020, by eligible educators for protective items to stop the spread of COVID-19 qualify for the educator expense deduction.
The educator expense deduction rules permit eligible educators to deduct up to $250 of qualifying expenses per year ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each).
Eligible educators include any individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.
This deduction is for expenses paid or incurred during the tax year. Taxpayers claim the deduction on Form 1040, Form 1040-SR or Form 1040-NR (attach Schedule 1 (Form 1040) PDF).
For additional information regarding the deduction for certain expenses of an eligible educator, see the Instructions for Form 1040 and Form 1040-SRPDF or the Instructions for Form 1040-NR.
For more information about this, the COVID-related Tax Relief Act of 2020 and other tax changes, visit IRS.gov.
IR-2021-70, March 30, 2021
WASHINGTON — The Internal Revenue Service issued frequently asked questions today on how students and higher education institutions should report pandemic-related emergency financial aid grants.
Students
Emergency financial aid grants made by a federal agency, state, Indian tribe, higher education institution or scholarship-granting organization (including a tribal organization) to a student because of an event related to the COVID-19 pandemic are not included in the student's gross income.
Also, students should not reduce an amount of qualified tuition and related expenses by the amount of an emergency financial aid grant. If students used any portion of the grants to pay for qualified tuition and related expenses on or before December 31, 2020, they may be eligible to claim a tuition and fees deduction or the American Opportunity Credit or Lifetime Learning Credit on their 2020 tax return. See Higher Education Emergency Grants Frequently Asked Questions.
The tuition and fees deduction is not available for tax years beginning after December 31, 2020. For additional information on these credits and the tuition and fees deduction, see Publication 970, Tax Benefits for Education.
Higher Education Institutions
Because students don't include emergency financial aid grants in their gross income, higher education institutions are not required to file or furnish Forms 1099-MISC reporting the grants made available by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) or the COVID-related Tax Relief Act (COVID Relief Act) and do not need to report the grants in Box 5 of Form 1098-T.
But any amounts that qualify for the tuition and fees deduction or the American Opportunity Credit or Lifetime Learning Credit are considered "qualified tuition and related expenses" and trigger the reporting requirements of Internal Revenue Code section 6050S. Higher education institutions must include qualified tuition and related expenses paid by emergency financial aid grants awarded to students in Box 1 of Form 1098-T.