etrent17/irs-articles huggingface dataset:
IR-2016-99, August 2, 2016
WASHINGTON — The Internal Revenue Service today warned taxpayers to stay vigilant against an increase of IRS impersonation scams in the form of automated calls and new tactics from scammers demanding tax payments on iTunes and other gift cards.
The IRS has seen an increase in “robo-calls” where scammers leave urgent callback requests through the phone telling taxpayers to call back to settle their “tax bill.” These fake calls generally claim to be the last warning before legal action is taken. Once the victim calls back, the scammers may threaten to arrest, deport or revoke the driver’s license of the victim if they don’t agree to pay.
“It used to be that most of these bogus calls would come from a live-person. Scammers are evolving and using more and more automated calls in an effort to reach the largest number of victims possible,” said IRS Commissioner John Koskinen. “Taxpayers should remain alert for this summer surge of phone scams, and watch for clear warning signs as these scammers change tactics.” 
In the latest trend, IRS impersonators are demanding payments on iTunes and other gift cards. The IRS reminds taxpayers that any request to settle a tax bill by putting money on  any form of gift card is a clear indication of a scam.
Some examples of the varied tactics seen this year are:
Demanding payment for a “Federal Student Tax.” See IR-2016-81.
Demanding immediate tax payment for taxes owed on an iTunes or other type of gift card
Soliciting W-2 information from payroll and human resources professionals. See IR-2016-34.
“Verifying” tax return information over the phone. See IR-2016-40.
Pretending to be from the tax preparation industry. See IR-2016-28
Since these bogus calls can take many forms and scammers are constantly changing their strategies, knowing the telltale signs is the best way to avoid becoming a victim.  
The IRS will never:
Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.
Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
Require you to use a specific payment method for your taxes, such as a prepaid debit card, gift card or wire transfer.
Ask for credit or debit card numbers over the phone.
If you get a phone call from someone claiming to be from the IRS and asking for money and you don’t owe taxes, here’s what you should do:
Do not give out any information. Hang up immediately.
Contact TIGTA to report the call. Use their “IRS Impersonation Scam Reporting” web page or call 800-366-4484.
Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.
If you think you might owe taxes, call the IRS directly at 800-829-1040.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2016-127, Sept. 30, 2016
WASHINGTON — Farmers and ranchers who previously were forced to sell livestock due to drought, like the drought currently affecting much of the nation, have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales, the Internal Revenue Service announced today.
Farmers and ranchers who due to drought sell more livestock than they normally would may defer tax on the extra gains from those sales. To qualify, the livestock generally must be replaced within a four-year period. The IRS is authorized to extend this period if the drought continues.
The one-year extension of the replacement period announced today generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes due to drought. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, and poultry are not eligible.
The IRS is providing this relief to any farm located in a county, parish, city, or district, listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center (NDMC), during any weekly period between Sept. 1, 2015, and Aug. 31, 2016. All or part of 37 states and Puerto Rico are listed. Any county contiguous to a county listed by the NDMC also qualifies for this relief.
As a result, farmers and ranchers in these areas whose drought sale replacement period was scheduled to expire at the end of this tax year, Dec. 31, 2016, in most cases, will now have until the end of their next tax year. Because the normal drought sale replacement period is four years, this extension immediately impacts drought sales that occurred during 2012. But because of previous drought-related extensions affecting some of these localities, the replacement periods for some drought sales before 2012 are also affected. Additional extensions will be granted if severe drought conditions persist.
Details on this relief, including a list of NDMC-designated counties, are available in Notice 2016-60PDF, posted today on IRS.gov. Details on reporting drought sales and other farm-related tax issues can be found in Publication 225, Farmer’s Tax Guide, also available on the IRS web site.
Follow the IRS on Social MediaSubscribe to IRS Newswire
Update: April 6, 2017
See also: IR-2017-74, Private Collection of Some Overdue Federal Taxes Starts in April; Those Affected Will Hear First From IRS; IRS Will Still Handle Most Tax Debts
IR-2016-125, Sept. 26, 2016
WASHINGTON — The Internal Revenue Service announced today that it plans to begin private collection of certain overdue federal tax debts next spring and has selected four contractors to implement the new program.
The new program, authorized under a federal law enacted by Congress last December, enables these designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. As a condition of receiving a contract, these agencies must respect taxpayer rights including, among other things, abiding by the consumer protection provisions of the Fair Debt Collection Practices Act. The IRS has selected the following contractors to carry out this program:
CBE Group
1309 Technology Pkwy
Cedar Falls, IA 50613
Conserve
200 CrossKeys Office park
Fairport, NY 14450
Performant
333 N Canyons Pkwy
Livermore, CA 94551
Pioneer
325 Daniel Zenker Dr
Horseheads, NY 14845
These private collection agencies will work on accounts where taxpayers owe money, but the IRS is no longer actively working their accounts. Several factors contribute to the IRS assigning these accounts to private collection agencies, including older, overdue tax accounts or lack of resources preventing the IRS from working the cases.
The IRS will give each taxpayer and their representative written notice that their account is being transferred to a private collection agency. The agency will then send a second, separate letter to the taxpayer and their representative confirming this transfer.
Private collection agencies will be able to identify themselves as contractors of the IRS collecting taxes. Employees of these collection agencies must follow the provisions of the Fair Debt Collection Practices Act and must be courteous and respect taxpayer rights.
The IRS will do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities, particularly in light of continual phone scams where callers impersonate IRS agents and request immediate payment.
Private collection agencies will not ask for payment on a prepaid debit card. Taxpayers will be informed about electronic payment options for taxpayers on IRS.gov/payments. Payment by check should be payable to the U.S. Treasury and sent directly to IRS, not the private collection agency. 
The IRS will continue to keep taxpayers informed about scams and provide tips for protecting themselves. The IRS encourages taxpayers to visit IRS.gov for information including the “Tax Scams and Consumer Alerts” page.
For more information visit the Private Debt Collection page on IRS.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
YouTube Video
How to Use Get Transcript Online: English (obsolete)
IR-2016-124, Sept. 22, 2016
WASHINGTON — The Internal Revenue Service has an important reminder for taxpayers who filed for an extension and face an Oct. 17 filing deadline: the adjusted gross income (AGI) amount from your 2014 return may be needed to electronically file a tax return.
The IRS reminds all taxpayers that they should keep a copy of their tax returns and supporting documents for a minimum of three years. Going forward, keeping copies of tax returns is even more important as the IRS makes changes to protect taxpayers and authenticate their identity.
The IRS recommends extension filers using a software product for the first time plan ahead. They should locate a copy of their 2014 tax return or alternatively, order a tax transcript, a process that may take five to 10 calendar days. The adjusted gross income (AGI) is clearly labeled on both the tax return and the transcript
Taxpayers who prepare their own electronic tax returns are required to electronically sign their return by using a five-digit, self-selected personal identification number (PIN). In order to authenticate their identities, taxpayers will now also need to enter either of two items: their prior-year AGI or their prior-year self-select PIN and their date of birth. If married filing jointly, both taxpayers must authenticate their identities with this information.
The IRS is phasing out the use of the Electronic Filing PIN, which is no longer available as an alternative except for those taxpayers who had obtained an e-file PIN earlier this year. The IRS emphasizes that those filers may use their e-file PIN for this year only.
Generally, tax-preparation software automatically generates the prior-year AGI and/or self-select PIN for returning customers. However, taxpayers who are new to a software product must enter the prior-year AGI or prior-year self-select PIN themselves.
How to find AGI
The adjusted gross income is gross income minus certain adjustments. On the 2014 tax returns, the AGI is found on line 37 of Form 1040; line 21 on Form 1040A and line 4 on Form 1040EZ. Taxpayers who e-filed and did not keep a copy of their original 2014 tax return may be able to return to their prior-year software provider or tax preparer to obtain a copy.
Taxpayers who lack access to their prior-year tax returns also may go to irs.gov/transcript and use Get Transcript Online or Get Transcript by Mail. A transcript is a summary of the tax return or tax account. There are various types of transcripts, but the Tax Return Transcript works best. Look for the “Adjusted Gross Income” amount on the transcript.
Taxpayers must pass Secure Access authentication in order to access Get Transcript Online and immediately access their transcripts. Taxpayers who cannot pass Secure Access authentication should use Get Transcript by Mail or call 800-908-9946, and a transcript will be delivered to the home address within five to 10 calendar days.
Related Item:         
Special Edition Tax Tip 2016-14
	 
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-122, September 20, 2016
WASHINGTON — With a key certification deadline fast approaching, the Internal Revenue Service today urged employers to take advantage of a valuable tax credit designed to help those who hire long-term unemployment recipients, certain veterans, recipients of various kinds of public assistance and other workers who face significant barriers to employment.
The Protecting Americans from Tax Hikes (PATH) Act, enacted last December, retroactively extended the Work Opportunity Tax Credit (WOTC) for nine categories of workers hired on or after Jan. 1, 2015. For the first time, the legislation also added a tenth category for long-term unemployment recipients hired on or after Jan. 1, 2016, who had been unemployed for a period of at least 27 weeks and received state or federal unemployment benefits during part or all of that time. The special Sept. 28, 2016, certification deadline applies to eligible workers hired between Jan. 1, 2015, and Aug. 31, 2016.
Normally, to qualify for the credit, an employer must first request certification by filing IRS Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But due to the late enactment of the legislation extending the WOTC and its retroactive impact, the IRS is giving employers extra time, until Sept. 28, to make requests related to eligible workers hired any time in 2015 and during the first eight months of 2016. The regular 28-day rule will again apply for any eligible worker hired after Aug. 31, 2016. Other requirements and further details can be found in the instructions to Form 8850, Notice 2016-22PDF and Notice 2016-40PDF, available on IRS.gov.
The 10 categories of WOTC-eligible workers include:
Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients
Unemployed veterans, including disabled veterans
Ex-felons
Designated community residents living in Empowerment Zones or Rural Renewal Counties
Vocational rehabilitation referrals
Summer youth employees living in Empowerment Zones
Food stamp (SNAP) recipients
Supplemental Security Income (SSI) recipients
Long-term family assistance recipients
Qualified long-term unemployment recipients (for people who begin work after 2015).
Eligible businesses claim the WOTC on their income tax return. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800.
Though the credit is not available to tax-exempt organizations for most categories of new hires, a special rule allows them to get the WOTC for hiring qualified veterans. These organizations claim the credit on Form 5884-C. Visit the WOTC page on IRS.gov for more information.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2016-121, Sept. 14, 2016  
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2016.  The rates will be:  
four (4) percent for overpayments (three (3) percent in the case of a corporation);
1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
four (4) percent for underpayments; and
six (6) percent for large corporate underpayments.  
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.  
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during July 2016 to take effect Aug. 1, 2016, based on daily compounding.
Revenue Ruling 2016-23 PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2016-39, dated Sept. 26, 2016.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2016-138, Oct. 21, 2016
WASHINGTON —The Internal Revenue Service today announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Matthew and members of their families. This is similar to relief provided this summer to Louisiana flood victims.
Participants in 401(k) plans, employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities, as well as state and local government employees with 457(b) deferred-compensation plans may be eligible to take advantage of these streamlined loan procedures and liberalized hardship distribution rules. Though IRA participants are barred from taking out loans, they may be eligible to receive distributions under liberalized procedures.
Retirement plans can provide this relief to employees and certain members of their families who live or work in disaster area localities affected by Hurricane Matthew and designated for individual assistance by the Federal Emergency Management Agency (FEMA). Currently, parts of North Carolina, South Carolina, Georgia and Florida qualify for individual assistance. For a complete list of eligible counties, visit https://www.fema.gov/disasters. To qualify for this relief, hardship withdrawals must be made by March 15, 2017.
The IRS is also relaxing procedural and administrative rules that normally apply to retirement plan loans and hardship distributions. As a result, eligible retirement plan participants will be able to access their money more quickly with a minimum of red tape. In addition, the six-month ban on 401(k) and 403(b) contributions that normally affects employees who take hardship distributions will not apply.
This broad-based relief means that a retirement plan can allow a victim of Hurricane Matthew to take a hardship distribution or borrow up to the specified statutory limits from the victim’s retirement plan. It also means that a person who lives outside the disaster area can take out a retirement plan loan or hardship distribution and use it to assist a son, daughter, parent, grandparent or other dependent who lived or worked in the disaster area.
Plans will be allowed to make loans or hardship distributions before the plan is formally amended to provide for such features. In addition, the plan can ignore the reasons that normally apply to hardship distributions, thus allowing them, for example, to be used for food and shelter. If a plan requires certain documentation before a distribution is made, the plan can relax this requirement as described in the announcement.
Ordinarily, retirement plan loan proceeds are tax-free if they are repaid over a period of five years or less.  Under current law, hardship distributions are generally taxable. Also, a 10 percent early-withdrawal tax usually applies.
Further details are in Announcement 2016-39PDF, posted today on IRS.gov. More information about other relief related to Hurricane Matthew can be found on the IRS disaster relief page.
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-137, Oct. 21, 2016
WASHINGTON — As international compliance efforts pass several new milestones, the Internal Revenue Service reminds U.S. taxpayers with undisclosed offshore accounts that they should use existing paths to come into full compliance with their federal tax obligations.
Updated data shows 55,800 taxpayers have come into the Offshore Voluntary Disclosure Program (OVDP) to resolve their tax obligations, paying more than $9.9 billion in taxes, interest and penalties since 2009. In addition, another 48,000 taxpayers have made use of separate streamlined procedures to correct prior non-willful omissions and meet their federal tax obligations, paying approximately $450 million in taxes, interest and penalties.
“The IRS has passed several major milestones in our offshore efforts, collecting a combined $10 billion with 100,000 taxpayers coming back into compliance,” said IRS Commissioner John Koskinen. “As we continue to receive more information on foreign accounts, people’s ability to avoid detection becomes harder and harder. The IRS continues to urge those people with international tax issues to come forward to meet their tax obligations.”
Under the Foreign Account Tax Compliance Act (FATCA) and the network of inter-governmental agreements (IGAs) between the U.S. and partner jurisdictions, automatic third-party account reporting has entered its second year. More information also continues to come to the IRS as a result of the Department of Justice’s Swiss Bank Program. As part of a series on non-prosecution agreements, the participating banks continue to provide information on potential non-compliance by U.S. taxpayers.
OVDP offers taxpayers with undisclosed income from foreign financial accounts and assets an opportunity to get current with their tax returns and information reporting obligations. The program encourages taxpayers to voluntarily disclose foreign financial accounts and assets now rather than risk detection by the IRS at a later date and face more severe penalties and possible criminal prosecution.
The IRS developed the Streamlined Filing Compliance Procedures to accommodate taxpayers with non-willful compliance issues. Submissions have been made by taxpayers residing in the U.S. and from those residing in countries around the globe. The streamlined procedures have resulted in the submission of more than 96,000 delinquent and amended income tax returns from the 48,000 taxpayers using these procedures. A separate process exists for those taxpayers who have paid their income taxes but omitted certain other information returns, such as the Report of Foreign Bank and Financial Accounts (FBAR).
Form Updates and Change in Phone Numbers
The IRS recently revised the certification forms used for the Streamlined Filing Compliance Procedures. The most current versions of Forms 14653PDF and 14654PDF are available on IRS.gov.
Commonly used telephone numbers relating to the Offshore Voluntary Disclosure Program (OVDP) and the Streamlined Filing Compliance Procedures have also changed.
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-136, October 19, 2016
WASHINGTON — The Internal Revenue Service recently awarded over $21.5 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants to organizations that provide free federal tax return preparation.
This year, the IRS awarded grants to 25 TCE and 246 VITA applicants.  The TCE grants cover one year and the VITA grants cover two years. The IRS received 330 applications requesting $54.6 million.
The TCE program, established in 1978, provides tax counseling and return preparation nationwide to people who are 60 or older. Volunteers receive training and technical assistance.
The VITA program, created in 1969, assists underserved communities, such as low and moderate income individuals and limited English proficient taxpayers. VITA grant recipients provide free federal tax return preparation and electronic filing. Congress first appropriated funds in 2007 to establish a grant program. The grant program helps expand VITA services to underserved populations and increases the number of taxpayers able to file electronically.
Volunteers continue to provide tremendous support to the two programs since they began. This year, volunteers prepared or facilitated the self-preparation of over 3.7 million returns. For more details on how to become a VITA or TCE volunteer, visit IRS Tax Volunteers.
Related Item:
2017 Grant RecipientsPDF
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-134, Oct. 17, 2016
WASHINGTON — The Internal Revenue Service today reminded tax professionals that they can earn continuing education credits online through seminars filmed at the 2016 IRS Nationwide Tax Forums. The forums are three-day events that provide tax professionals with the most up-to-date information on federal and state tax issues; in 2016, they were held in five cities across the nation.
More than a dozen self-study seminars are now available on the IRS Nationwide Tax Forums Online (NTFO). Self-study seminars provide information to participants through interactive videos, PowerPoint slides and transcripts.
The 2016 online forum seminars cover many topics of interest to tax professionals including:
Is Your Case Ready for Appeals? (Examination Edition)
Foreign Tax Credit for Individuals
Emerging Issues in Tax Practice Due Diligence
ACA Employer and Coverage Provider Information Reporting Requirements
The online seminars are registered with the IRS Return Preparer Office and the National Association of State Boards of Accountancy (NASBA) as a qualified sponsor of continuing education. For a fee, CPAs, Enrolled Agents and Annual Filing Season Program participants taking NTFO seminars can earn continuing education credits. To earn credit, users must create an account, answer review questions throughout the seminar and pass short tests at the end of the seminars.
The seminars can also be audited for free. Individuals who choose to audit seminars will not have access to the review questions or final examination and will not receive credit for the seminar.
In addition to the recently added seminars, NTFO also offers many seminars from prior-year IRS Nationwide Tax Forums. For more information, please visit www.irstaxforumsonline.com. 
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-133, Oct. 14, 2016
WASHINGTON –– The Internal Revenue Service today announced that U.S. taxpayers with maquiladora operations in Mexico will not be exposed to double taxation if they enter into a unilateral advance pricing agreement (APA) with the Large Taxpayer Division of Mexico’s Servicio de Administración Tributaria (SAT) under terms discussed in advance between the U.S. and Mexican competent authorities. 
Maquiladoras typically operate in Mexico as contract manufacturers of foreign multinationals. 
This announcement represents the culmination of two years of collaboration between the competent authorities to address SAT’s current inventory of approximately 700 pending unilateral APA requests in the maquiladoras industry.  It is an important step forward in strengthening ties between the two governments and providing certainty in the taxation of multinationals.
In 1999, the U.S. and Mexican competent authorities reached an agreement on transfer pricing and other aspects of the tax treatment of maquiladoras of U.S. multinational enterprises.  The new agreement updates and expands upon the 1999 agreement in order to reflect recent revisions to Mexican domestic tax rules governing transfer pricing rules, documentation requirements and other tax attributes of maquiladoras.     
The centerpiece of the discussions between the competent authorities is an election SAT would extend to qualifying taxpayers with pending unilateral APA requests.  These taxpayers may elect to apply a transfer pricing framework that the U.S. and Mexican competent authorities have agreed in advance will produce arm’s length results.  Qualifying taxpayers that decline the election may apply the safe harbors provided by the 1999 Agreement or file a request for a bilateral APA with the U.S. and Mexican competent authorities. (See Rev. Proc. 2015-41PDF, 2015-35 IRB 263, for further information on filing a bilateral APA request with APMA.)   
SAT will release details shortly about the election and will directly notify qualifying Mexican taxpayers.  The notification will include details on the steps the taxpayers must take with regard to their pending unilateral APA requests.
Because the transfer pricing framework adopted under SAT’s program was discussed and agreed upon with the U.S. competent authority in advance, the transfer pricing results set forth in unilateral APAs executed between SAT and Mexican affiliates of U.S. taxpayers pursuant to this program will be regarded as “arm’s length” under section 482 of the Internal Revenue Code.
In conjunction with the 1999 agreement, this announcement will provide certainty for U.S. taxpayers regarding double taxation, foreign tax credits and permanent establishments in relation to transactions with their maquiladoras. Further guidance on the U.S. taxable years and tax consequences of these unilateral APAs will be included in a forthcoming IRS practice unit. 
Taxpayers with questions about this announcement should contact Greg Spring, Senior Manager, APMA (202-317-8751), or John Hughes, Acting Director, APMA (202-317-8983).
Follow the IRS on Social MediaSubscribe to IRS Newswire
Updated 10/14/16 to include IRS Gives Tax Relief to Victims of Hurricane Matthew; Many Extension Filers in North Carolina Now Affected; Relief for Other States Expected Soon
Updated 10/14/16 to include Tax Relief for Victims of Hurricane Matthew in North Carolina
IR-2016-132, Oct. 13, 2016
WASHINGTON  — The Internal Revenue Service today advised taxpayers affected by Hurricane Matthew but not yet covered by a federal disaster declaration with individual assistance that they may qualify for relief from penalties if they are unable to meet Monday’s extended deadline for filing 2015 tax returns.
The IRS noted that additional individual assistance areas could be added to the federal disaster area in coming days based on continuing damage assessments by the Federal Emergency Management Agency (FEMA). These additional disaster declarations will pave the way for additional extensions and other relief from the IRS. This means that the IRS will automatically provide retroactive extensions and other relief to any locality added to the federal disaster area at a later date. In areas with disaster declarations for individual assistance, taxpayers will have until March 15, 2017 to file returns otherwise due on Monday, October  17.
“The hurricane and flooding have hit many different states hard, and the timing of this is especially tough for taxpayers and tax professionals planning to file by the Oct. 17 extension deadline,” said IRS Commissioner John Koskinen. “We have been watching this situation unfold and remain in close touch with FEMA. We will do everything we can to work with taxpayers who are in affected areas.”  
The IRS reminds taxpayers that there is no penalty for filing a late return qualifying for a refund. This means, for example, that a taxpayer who received a valid extension and overpaid any expected tax due before April 18 will not face a late penalty, even if they file after Oct. 17.
Taxpayers affected by Hurricane Matthew who owe tax should file when they are reasonably able. If they live outside the federally-declared disaster area, they may receive a penalty notice from the IRS. If this happens, they can request abatement of the penalties, based on reasonable cause, by replying in writing to the penalty notice and explaining that they’re impacted by the hurricane.
A complete up-to-date rundown of relief being provided to victims of Hurricane Matthew can be found on the tax relief in disaster situations page on IRS.gov. As of Thursday, 17 counties in North Carolina are eligible for relief.
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-153, Nov. 23, 2016
Note to Editor: This is the third in a series of reminders to help taxpayers prepare for the upcoming tax filing season.
WASHINGTON – As tax filing season approaches, the Internal Revenue Service wants taxpayers who are self-employed or involved in the sharing economy to know about free resources that are available to help them with their taxes.
Sole proprietors and independent contractors can get helpful information from the IRS Small Business and Self-Employed Tax Center. This resource includes online tools such as the Tax Calendar for Businesses and Self-Employed, which has key tax dates and necessary actions for each month of the year.
For those who provide services to consumers, such as rides in personal vehicles for a fee or the use of property, such as apartments or homes for rent, the IRS created the Sharing Economy Resource Center. It has tips such as:
Income is generally taxable, even if the recipient does not receive a Form 1099, W-2 or some other income statement, but some or all business expenses may be deductible.
There are some simplified options available for deducting many business expenses.
People involved in the sharing economy often need to make estimated tax payments during the year to cover their tax obligation.
Alternatively, people involved in the sharing economy who are employees at another job can often avoid needing to make estimated tax payments by having more tax withheld from their paychecks. The Withholding Calculator on IRS.gov can also be a helpful resource.
The IRS also holds Small Business Events, workshops and seminars, at many locations throughout the country. Topics include paying self-employment and income tax on any net  profit, how to make estimated tax payments on income that is not subject to withholding, which expenses can be deducted as business expenses, and much more. The IRS Video Portal also has videos and webinars on many tax topics that may be helpful.
Visit the Small Business and Self-Employed Tax Center on IRS.gov and remember, IRS tax forms are available any time on IRS.gov/forms.
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-151, November 16, 2016
WASHINGTON — The Internal Revenue Service and its Security Summit partners today began the second year of their “Taxes. Security. Together.” campaign aimed at encouraging taxpayers to take stronger measures to protect their financial and tax data.
The campaign features a series of security awareness tax tips, a round-up of suggestions at the Taxes. Security. Together. webpage and a one-page Publication 4524, Security Awareness for TaxpayersPDF.
“These are common sense tips to help taxpayers ensure the security of their information,” said IRS Commissioner John Koskinen. “The Security Summit partnership between the IRS, states and industry has made great strides but we need taxpayers to ensure their information is secure as well.”
The IRS, state tax agencies and the tax community came together in 2015 to combat tax-related identity theft as a coordinated partnership. But they immediately saw that one partner was missing: taxpayers.
The IRS and its partners need the help of all taxpayers. The Security Summit also needs the help of tax preparers and businesses to share information and help educate clients and employees about security measures. For example:
Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Encrypt sensitive files such as tax records you store on your computer. Use strong passwords.
Learn to recognize and avoid phishing emails, threatening calls and texts from thieves posing as legitimate organizations such as your bank, credit card company and even the IRS. Do not click on links or download attachments from unknown or suspicious emails.
Protect your personal data. Don’t routinely carry your Social Security card, and make sure your tax records are secure. Treat your personal information like you do your cash; don’t leave it lying around.
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-149, Nov. 16, 2016
WASHINGTON — The Internal Revenue Service Advisory Council (IRSAC) held its annual public meeting today and released its annual report for 2016 to IRS Commissioner John Koskinen. The report includes recommendations on a wide range of tax administration issues.
"IRSAC members play an important role in tax administration by providing insights from outside the agency on the most pressing tax issues of the day," said Koskinen. "They volunteer their time and energy for the benefit of all taxpayers."
The IRSAC is an advisory group to the entire agency. The IRSAC’s primary purpose is to provide an organized public forum for the Commissioner, senior IRS executives and representatives of the public to discuss relevant tax administration issues.
Advisory council members convey the public’s perception of professional standards and best practices for tax professionals and IRS activities, offer constructive observations regarding current or proposed IRS policies, programs and procedures, as well as suggest improvements to IRS operations.
Based on its report findings and discussions over the last year, the IRSAC made several recommendations on a broad range of issues and concerns including:
Evaluating the Effects of Penalties on Voluntary Compliance;
Promoting Confidentiality of Treaty-Exchanged Information;
Improving Fraud Prevention through Individual Taxpayer and Business Master File (BMF) Authentication;
Enhancing the IRS2Go Mobile Application and Online Accounts;
Revising and Updating Circular 230.
Commissioner Koskinen congratulated and thanked four IRSAC members ending their three-year terms this year:
Jennifer MacMillan, IRSAC Chair – Jennifer MacMillan, EA, Santa Barbara, Calif.
Ronald Aucutt – McGuireWoods, LLP, Tysons Corner, Va.
F. Robert Bader – Baltimore CASH Campaign, Baltimore, Md.
Cheri Freeh – Hutchinson, Gillahan & Freeh, P.C., Quakertown, Pa.
The IRSAC is administered by the Office of National Public Liaison and draws its members from the taxpaying public, the tax professional community, small and large businesses and the payroll community.
The 2016 Internal Revenue Service Advisory Council Public Report PDF can be found on IRS.gov.
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-148, Nov. 15, 2016
WASHINGTON – The Internal Revenue Service has opened the new registration and enrollment process for qualified taxpayers to receive the benefit of the Health Coverage Tax Credit (HCTC) on an advance monthly basis during 2017.
Eligible taxpayers can have 72.5 percent of their qualified health insurance premiums paid in advance directly to their health plan administrator each month. Each payment made on their behalf to the health plan administrator lowers their out-of-pocket premium costs.
Taxpayers may be eligible to elect the HCTC only if they are one of the following:
An eligible trade adjustment  assistancePDF (TAA) recipient, alternative TAA recipient or reemployment TAA recipient,
An eligible Pension Benefit Guaranty Corporation (PBGC) payee, or
The family member of an eligible TAA, ATAA, or RTAA recipient or PBGC payee who is deceased or who finalized a divorce with them.
Taxpayers can now begin the process of registering with the IRS and providing required information to participate in the 2017 Advance Monthly Payment program for the HCTC. This includes completing and mailing Form 13441-A, HCTC Monthly Registration and UpdatePDF, with all required supporting documents to the IRS. 
Once the registration is complete and they are enrolled in the Advanced Monthly Payment HCTC program, the taxpayer must pay 27.5 percent of their health insurance premiums in advance to the HCTC program. Payments are due by the 10thday of each month and must be madethrough the US Bank Lockbox system. The HCTC program then adds the 72.5 percent advance portion of the HCTC and sends the full payment to the health plan or third party administrator each month.
For more information, including a helpful set of questions and answers, visit IRS.gov/HCTC.
 
Follow the IRS on Social MediaSubscribe to IRS Newswire
Note to Editor: This is the first in a series of reminders to help taxpayers prepare for the upcoming tax filing season.
IR-2016-147, Nov. 10, 2016
WASHINGTON – As tax filing season approaches, the Internal Revenue Service wants members of the military and their families to know about the special tax benefits available to them.
IRS Publication 3, Armed Forces Tax Guide, is a free booklet packed with valuable information and tips designed to help service members and their families take advantage of all tax benefits allowed by law. Here are some of those tax benefits.
Combat pay is partially or fully tax-free. Service members serving in support of a combat zone may also qualify for this exclusion.
Reservists whose reserve-related duties take them more than 100 miles from home can deduct their unreimbursed travel expenses, even if they don’t itemize their deductions.
The Earned Income Tax Credit may be worth up to $6,269 for low-and moderate-income service members. A special computation method is available for those who receive nontaxable combat pay. Choosing to include it in taxable income may boost the EITC, meaning owing less tax or getting a larger refund.
An IRA or 401(k)-type plan might mean saving for retirement and cutting taxes too. Service members who contribute to a plan, such as the Thrift Savings Plan, may also be able to claim the Retirement Savings Contributions Credit.
An automatic extension to file a federal income tax return is available to U.S. service members stationed abroad. Also, those serving in a combat zone typically have until 180 days after they leave the combat zone to file and to pay any tax due. For more information see Miscellaneous Provisions — Combat Zone Service.
Most military bases offer free tax preparation and filing assistance during the tax filing season. Some also offer free tax help after the April deadline. Service members who prepare their own return qualify to e-file their federal return for free using IRS Free File.
Both spouses normally must sign a joint income tax return, but if one spouse is absent due to certain military duty or conditions, the other spouse may be able to sign for him or her. A power of attorney is required in other instances. A military installation’s legal office may be able to help.
Those leaving the military and looking for work may be able to deduct some job search expenses, such as the costs of travel, preparing a resume and job placement agency fees. Moving expenses may also qualify for a tax deduction.
The IRS has a special page on IRS.gov with Tax Information for Members of the U.S. Armed Forces.
IRS YouTube Videos:
   Military Tax Tips – English | Spanish (obsolete)
   Moving Expenses – English | Spanish (obsolete)
  Job Search Expenses – English | ASL (obsolete)
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-146, Nov. 10, 2016
WASHINGTON – The Internal Revenue Service today announced special relief designed to support leave-based donation programs to aid victims of Hurricane Matthew.
Under these programs, employees may forgo their vacation, sick or personal leave in exchange for cash payments the employer makes, before Jan. 1, 2018, to charitable organizations providing relief for the victims of this disaster. 
Under this special relief, the donated leave will not be included in the income or wages of the employees. Employers will be permitted to deduct the cash payments as business expenses.
This relief is similar to that provided following Hurricane Katrina in 2005, Hurricane Sandy in 2012, the Ebola outbreak in West Africa in 2014 and this summer’s severe flooding in Louisiana. Details of this relief are in Notice 2016-69PDF, posted today on IRS.gov.
Information on other relief available to victims of Hurricane Matthew can be found on the disaster relief page of IRS.gov.
 
Follow the IRS on Social MediaSubscribe to IRS Newswire
IR-2016-145, Nov. 4, 2016
WASHINGTON – The Internal Revenue Service today issued an urgent alert to tax professionals who use IRS e-services to beware of an email asking them to update their accounts and directing them to a fake website.
The subject line for the fraudulent email is “Security Awareness for Tax Professionals.” The “From” line is “Your e-Services Team.” It has both an IRS logo and an e-services logo that hyperlinks to a URL verified as a phishing site. The spoofing site poses as an e-services registration page.
The scammers are attempting to exploit current IRS efforts to strengthen the e-services authentication process and its ongoing communications with tax professionals about their accounts. Scammers are attempting to steal e-services usernames and passwords or even more personal data through a registration page.
If e-services users have already clicked on the fake logo and provided their username and password, they should contact the e-services help desk to reset their accounts. If the same password is used for other accounts, they should be changed as well. As an extra precaution, users should perform a deep security scan on their computers, re-evaluate their security controls and be alert to any other signs of identity theft or data compromise.
Tax professionals should always go directly to IRS.gov to access e-services, never click on any links provided in emails.
Tax professionals who receive a suspicious email should send it as an attachment to Phishing@irs.gov and then delete it. Recipients should not click on any links.
The scammer email tells recipients that information was stolen from certain user accounts in 2015 from a state-sponsored actor. It says users are being asked to upgrade their e-service account to ensure protection of their information. It asks them to click on the login to access their accounts for security upgrade.
The IRS is in the process of upgrading e-services security and has been in communication with tax professionals about updating their accounts.
The IRS, state tax agencies and tax industry partners working together through the Security Summit have an awareness campaign underway called Protect Your Clients; Protect Yourself. The objective is to remind tax professionals they increasingly are the targets of identity thieves seeking ever larger amounts of taxpayer data to file fraudulent tax returns.
Security Summit partners recommend tax professionals:
Always use robust security software
Use encryption software to protect taxpayer data
Use strong passwords and change them often
Learn to recognize phishing emails attempting to steal data
Never click on links or download attachments from suspicious emails
Beware of any communications claiming to be the IRS that are outside normal channels
Review Protect Your Clients, Protect Yourself for various steps you can take to protect your customers’ information and your business.
Follow the IRS on Social MediaSubscribe to IRS Newswire
Note to Editor: This is the ninth in a series of reminders to help taxpayers prepare for the upcoming tax filing season.
IR-2016-175, December 29, 2016
WASHINGTON — As tax filing season approaches, the Internal Revenue Service is reminding taxpayers free tax help is available online, by phone and in-person. The IRS encourages taxpayers to take advantage of the online tools and resources at IRS.gov. Many taxpayers, who don’t want to wait, can get answers to tax questions right away at IRS.gov.
IRS.gov has services that include:
Where’s My Refund? You can check on a refund and the estimated delivery date.
Free File. This free tax software includes preparation and e-file.
Get Transcript. You can get various transcript types online or by mail.
Direct Pay. You can make tax payments directly from a checking or savings account.
Electronic Federal Tax Payment System. You can use this for various types of federal tax payments.
Online Payment Agreement. Eligible taxpayers can set up installment payments.
Answers to tax law questions. The interactive tax assistant takes you through a series of questions and provides you with responses
All IRS Forms and Publications. Taxpayers can download and view popular tax publications and 1040 Instructions on mobile devices as an eBook at no charge. PDF and HTML versions are also available. Tax products are usually available on IRS.gov six to eight weeks before the paper versions.
Where’s My Amended Return? Taxpayers can track the status of an amended return
Taxpayers who can’t find an answer on IRS.gov can call the IRS at 800-829-1040 Monday through Friday from 7 a.m. until 7 p.m. Telephone assistance is also available for individuals with TTY equipment at 800-829-4059.
Nearly every tax issue can now be resolved online or by phone from the convenience of your home or office. Those taxpayers who can’t resolve their issue on-line or by phone can schedule an appointment at an IRS Taxpayer Assistance Center (TAC). All IRS TACs now provide face-to-face service by-appointment. Use the Contact Your Local Office tool on IRS.gov to find the closest IRS TAC and a list of services provided. To schedule an appointment, call 844-545-5640. A trained IRS representative will either help resolve the issue or schedule an appointment for the taxpayer to get the help they need.
Taxpayers needing assistance with an expiring Individual Taxpayer Identification Number (ITIN) should visit the ITIN information page on IRS.gov and see the list of TACs designated to handle ITIN applications.
IRS YouTube Videos
Making an Appointment for IRS Tax Help (Obsolete)
Individual Taxpayer Identification Number (ITIN) (Obsolete)
Follow the IRS on Social MediaSubscribe to IRS Newswire