etrent17/irs-articles huggingface dataset:
IRS YouTube Video: Tax Return Errors English | Spanish | ASL
Podcast: Tax Return Errors EnglishMP3 | SpanishMP3
IR-2014-47, April 8, 2014
WASHINGTON — The Internal Revenue Service today reminded taxpayers to review their tax returns for common errors that could delay the processing of their returns. Here are some ways to avoid common mistakes.
File electronically. Filing electronically, whether through e-file or IRS Free File, vastly reduces tax return errors, as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. And best of all, there is a free option for everyone.
Mail a paper return to the right address. Paper filers should check IRS.gov or their form instructions for the appropriate address where to file to avoid processing delays.
Take a close look at the tax tables. When figuring tax using the tax tablesPDF, taxpayers should be sure to use the correct column for the filing status claimed.
Fill in all requested information clearly. When entering information on the tax return, including Social Security numbers, take the time to be sure it is correct and easy to read. Also, check only one filing status and the appropriate exemption boxes.
Review all figures. While software catches and prevents many errors on e-file returns, math errors remain common on paper returns.
Get the right routing and account numbers. Requesting direct deposit of a federal refund into one, two or even three accounts is convenient and allows the taxpayer access to his or her money faster. Make sure the financial institution routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account.
Sign and date the return. If filing a joint return, both spouses must sign and date the return. E-filers can sign using a self-selected personal identification number (PIN).
Attach all required forms. Paper filers need to attach W-2s and other forms that reflect tax withholding, to the front of their returns. If requesting a payment agreement with the IRS, also attach Form 9465 to the front of the return. Attach all other necessary schedules and forms in the sequence number order shown in the upper right-hand corner.
Keep a copy of the return. Once ready to be filed, taxpayers should make a copy of their signed return and all schedules for their records.
Request a Filing Extension. For taxpayers who cannot meet the April 15 deadline, requesting a filing extension is easy and will prevent late filing penalties. Either use Free File or Form 4868. But keep in mind that while an extension grants additional time to file, tax payments are still due April 15.
Owe tax? If so, a number of e-payment options are available. Or send a check or money order payable to the “United States Treasury.”
Taxpayers may find additional help and resources on IRS.gov, including 1040 Central and the IRS Services GuidePDF.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-46 April 4, 2014
WASHINGTON — Taxpayers who make cash contributions on or before April 14, 2014, for Philippines typhoon relief can get an immediate tax benefit by choosing to claim them on their 2013 returns, according to the Internal Revenue Service.
Under special legislation enacted last week, taxpayers can choose to treat cash contributions made on or after March 26, 2014, and before midnight on Monday, April 14, 2014, as if made on Dec. 31, 2013. This special provision only applies to charitable cash contributions for the relief of victims of Typhoon Haiyan. It is similar to the accelerated relief provided following the January 2010 earthquake in Haiti.
Eligible contributions can be claimed on either a 2013 or 2014 return, but not both. Contributions made after April 14, 2014, but before the end of this year can only be claimed on a 2014 return.
Contributions made by text message, check, credit card or debit card qualify for this special option. Donations charged to a credit card before midnight on April 14, 2014, are eligible contributions even if the credit card bill isn’t paid until after that date. Also, donations made by check are eligible if they are mailed by April 14.
Taxpayers can benefit from their donations most quickly by filing their 2013 returns electronically and choosing direct deposit. Refunds can be directly deposited into a savings, checking or brokerage account, or used to purchase Series I U.S. savings bonds.
The Philippines Charitable Giving Assistance Act, enacted March 25, 2014, does not apply to contributions of property. Gifts made directly to individual victims are not deductible.
To get a tax benefit, individuals must itemize their deductions on Schedule A. Those who claim the standard deduction, including all short-form filers, are not eligible.
Taxpayers should be sure their contributions go to qualified charities. Most organizations eligible to receive tax-deductible donations are listed in a searchable online database available on   IRS.gov under Exempt Organizations Select Check. Some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov.
The IRS reminds donors that contributions to foreign organizations generally are not deductible. IRS Publication 526, Charitable Contributions, provides information on making contributions to charities.
Federal law requires that taxpayers keep a record of any deductible donations they make. For donations by text message, a telephone bill will meet the recordkeeping requirement if it shows the name of the charity, the date of the contribution and the amount of the contribution. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution. In addition, for donations of $250 or more, taxpayers must obtain a written acknowledgment by the charity.
Publication 526 has further details on the recordkeeping rules for cash contributions.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-45, April 4, 2014
WASHINGTON – The Internal Revenue Service announced today that victims of last month’s mudslides and flooding in Washington state will have until Oct. 15 to file their returns and pay any taxes due.
Following this week’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA), the IRS said that affected taxpayers in Snohomish County, including the Sauk-Suiattle, Stillaguamish and Tulalip tribes, will receive this and other special tax relief.
The tax relief postpones various tax filing and payment deadlines that occurred starting on March 22, 2014. As a result, affected individuals and businesses will have until Oct. 15, 2014 to file these returns and pay any taxes due.
This includes the regular April 15 deadline for filing 2013 individual income tax returns and making tax payments. It also includes the April 15 deadline for making 2013 contributions to an individual retirement account.
Also included are the April 15, June 16 and Sept. 15 deadlines for making quarterly estimated tax payments. A variety of business tax deadlines are also affected including the April 30 and July 31 deadlines for quarterly payroll and excise tax returns.
The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply. The agency automatically provides this relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers need not contact the IRS to get this relief.
Beyond the relief provided to taxpayers in the FEMA-designated localities, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at
866-562-5227.
Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either last year’s or this year’s return. Claiming these casualty loss deductions on either an original or amended 2013 return will get the taxpayer an earlier refund but waiting to claim them on a 2014 return could result in greater tax savings depending upon other income factors.
In addition, the IRS is waiving late deposit penalties for federal payroll and excise tax deposits normally due on or after March 22 and before April 7 if the deposits are made by April 7, 2014. Details on available relief can be found on the disaster relief page on IRS.gov.
The tax relief is part of a coordinated federal response to the damage caused by mudslides and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.
The IRS is actively monitoring the situation and will provide additional relief if needed.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-44, April 3, 2014
WASHINGTON — As of March 28, the Internal Revenue Service has received 82 million returns through e-file, about 91 percent of returns filed this year. Only about 9 percent, 8.3 million returns, were filed on paper.
The IRS expects to receive about 148 million individual income tax returns this year and projects that 23 million returns will be on paper, down 7 percent from last year’s total of 25 million paper returns.
IRS e-file has accomplished many goals, including reducing the amount of paper the government must process. This reduction of paper processing allows the agency to be more efficient and use valuable resources to address other critical work.
The IRS reminds taxpayers that e-file is the safest, fastest and easiest way to submit their individual tax returns. Since 1990, taxpayers have e-filed more than 1 billion Form 1040 series tax returns safely and securely.  
 [The filing season statistics table follows.]
 
Follow the IRS on New MediaSubscribe to IRS Newswire
 

2014 FILING SEASON STATISTICS


Cumulative statistics comparing 3/29/13 and 3/28/14

Individual Income Tax Returns:

2013


2014


% Change

Total Receipts

90,244,000


90,761,000


0.6

Total Processed

85,039,000


89,127,000


4.8

 

 


 


 

E-filing Receipts:

 


 


 

TOTAL           

80,991,000


82,440,000


1.8

Tax Professionals

49,214,000


48,787,000


-0.9

Self-prepared

31,777,000


33,654,000


5.9

 

 


 


 

Web Usage:

 


 


 

Visits to IRS.gov

247,990,560


222,397,053


-10.3

 

 


 


 

Total Refunds:

 


 


 

Number

72,231,000


73,035,000


1.1

Amount

$201.502

billion

$206.785

billion

2.6

Average refund

$2,790


$2,831


1.5

 

 


 


 

Direct Deposit Refunds:

 


 


 

Number

61,133,000


61,223,000


0.1

Amount

$180.868

billion

$180.687

billion

-0.1

Average refund

$2,959


$2,951


-0.2
IR-2014-41, April 2, 2014
WASHINGTON — The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee (IRPAC), a federal advisory committee that advises the IRS on various tax administration issues.
The IRPAC presents a report to the IRS Commissioner at a public meeting each fall. Members are appointed to three-year terms, but terms are staggered so that approximately one-third of the committee membership changes each year. Nominations are currently being accepted for up to six appointments that will begin in January 2015.
The deadline for submitting applications is May 30, 2014.
IRPAC members are drawn from diverse backgrounds. Members represent the taxpaying public, tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, insurance companies, foreign financial institutions, and the software and payroll industries.
Anyone interested in becoming a member of IRPAC may self-nominate or be nominated by a professional organization. All nominees must complete an application.
More information, including the application form, is available on IRS.gov. 
Questions about the nomination process may be sent to publicliaison@irs.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-67, May 22, 2014
Washington — The Internal Revenue Service announced the successful start of its new web-based system — IRS Direct Pay — on IRS.gov, which lets taxpayers pay their tax bills or make estimated tax payments directly from checking or savings accounts without any fees or pre-registration.
“IRS Direct Pay reflects our latest effort to add more online tools to provide additional service options to help taxpayers,” said IRS Commissioner John Koskinen. “IRS Direct Pay simplifies the payment process, and taxpayers can make a payment from the convenience of a home computer.”
To date, more than 150,000 taxpayers have paid more than $340 million in taxes through the new IRS Direct Pay system. With IRS Direct Pay, taxpayers receive instant confirmation that the payment has been submitted, and the system is available 24 hours a day, 7 days a week. Bank account information is not retained in IRS systems after payments are made.
From the “Pay Your Tax Bill” icon at the top of the IRS home page, taxpayers can access IRS Direct Pay, which walks the taxpayer through five simple steps. The steps include providing your tax information, verifying your identity, entering your payment information, reviewing and electronically signing and recording your online confirmation.
IRS Direct Pay offers 30-day advance payment scheduling, payment rescheduling or cancellations, and a payment status search. Future plans include an option for e-mailed payment confirmation, a Spanish version and one-time registration with a login and password to allow quick access on return visits.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-66, May 22, 2014
WASHINGTON — The Internal Revenue Service will begin a one-year pilot program in June to help small businesses with retirement plans that owe penalties for not filing reporting documents. By filing current and prior year forms during this pilot program, they can avoid penalties.
The IRS is reaching out to certain small businesses that maintain retirement plans and may have been unaware that they had a filing requirement. The IRS projects that this program will bring a significant number of small business owners into compliance with the reporting requirements.
Plan administrators and sponsors who do not file an annual Form 5500 series return can face stiff penalties — up to $15,000 per return. Those who have already been assessed a penalty for late filings are not eligible for this program. This program is open only to retirement plans generally maintained by certain small businesses, such as those in an owner-spouse arrangement or eligible partnership.
Multiple late retirement plan returns may be included in a single submission. If a retirement plan has delinquent returns for more than one plan year, penalty relief may be available for all of these returns. Similarly, delinquent returns for more than one plan may be included in a single penalty relief request. No filing fee will be charged during the pilot program.
More information on how to participate in the program can be found in Revenue Procedure 2014-32PDF.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-64, May 21, 2014
WASHINGTON — The Internal Revenue Service and the Free File Alliance, have signed a one-year extension for their partnership that makes free tax software available to the nation’s taxpayers.
Free File is the free federal tax preparation and e-file service offered through brand-name software or online fillable forms. The software is available for taxpayers who earn $58,000 or less, which is 70 percent of taxpayers. Free File Fillable Forms is available to taxpayers who earn more than $58,000 and who are comfortable preparing their own federal return.
More than 3 million taxpayers have used Free File so far this year — a nearly 10 percent increase and the first double-digit increase in program usage in several years. Much of this increase is attributable to a new look and feel for the IRS Free File website, redesigned to make it easier for taxpayers to find the information they need and route to the software they want.
"Free File has helped millions of taxpayers prepare their taxes, and we look forward to continuing this important program," said IRS Commissioner John Koskinen. "The Free File program saw increased use this year, a reflection of the value of this innovative effort."
The extension agreement includes specific language that a full renegotiation of the five-year Agreement/Memorandum of Understanding will begin in June. The IRS and the Free File Alliance currently intend to enter into a multi-year agreement prior to the expiration of this extension.
The current five year agreement expires in October. The one-year extension provides the IRS and FFA time to shape a longer term agreement to include innovations to the twelve-year-old Free File program in order to grow e-file, improve quality and reduce taxpayer burden.    
Free File has played a key role in IRS’ strategy for growing e-file. Nearly 43 million taxpayers have used Free File since it debuted in 2003. Using a conservative $30 tax prep fee, this means Free File users have saved nearly $1.3 billion.
Free File is still available through October 15 for extension filers at /freefile.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-61, May 5, 2014                                                                                        
WASHINGTON —  The Internal Revenue Service awarded nearly $10 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2014 grant year (Jan. 1, 2014, through Dec. 31, 2014).
LITCs are organizations that represent low income taxpayers in federal tax disputes with the IRS for free or for a nominal fee, organizations that provide tax education and outreach to taxpayers who speak English as a second language, or organizations that do both.
Through the LITC program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. The LITC program is a federal program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Nina E. Olson. However, LITCs, their employees, and volunteers operate independently of the federal government.
More information about LITCs and the work they do to represent, educate, and advocate on behalf of low income taxpayers is available in IRS Publication 5066PDF, the LITC Program Report. IRS Publication 4134PDF, Low Income Taxpayer Clinic List, provides information about LITCs by geographic area, including contact information and details about the languages each LITC can accommodate in addition to English. Publication 4134 and Publication 5066 are available at IRS.gov. 
A list of the 133 organizationsPDF receiving LITC grants for the 2014 grant year is also available on IRS.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
IRS YouTube VideosVolunteer Income Tax Assistance Recruitment: English | Spanish | ASL
IR-2014-60, May 5, 2014
WASHINGTON — The Internal Revenue Service announced today that it will accept applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs through June 2, 2014. Some organizations can apply to receive annual funding for up to three years.
Applications must be submitted through Grants.gov by June 2, 2014. Previous grant recipients have the option to apply for up to three years of annual funding, which reduces the amount of paperwork that must be completed annually, and helps recipients with budget planning.
Interested applicants can find TCE and VITA application packages on Grants.gov. Electronic versions of the grant application package instructions, Publication 1101PDF for TCE and Publication 4671PDF for VITA, can be found on the IRS.gov website. 
The TCE program was established in 1978 to provide tax counseling and return preparation to persons who are 60 or older. Volunteers who provide free federal income tax help to seniors nationwide receive free training and technical assistance.
The VITA program, created in 1969, provides free federal income tax filing assistance to underserved communities. The VITA Grant program was established in 2007 to supplement the VITA program. The grant program enables VITA to extend services to underserved populations in hard-to-reach urban and non-urban areas. It increases the taxpayer’s ability to electronically file returns, and enhances volunteer training to improve the accuracy rate of returns prepared at VITA sites.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-59, May 1, 2014
WASHINGTON — The Internal Revenue Service announced it is accepting applications for the Internal Revenue Service Advisory Council (IRSAC). Applications will be accepted through June 13, 2014.
IRSAC’s purpose is to provide an organized public forum for IRS officials and representatives of the public to discuss relevant federal tax administration issues. IRSAC members submit a report to the IRS Commissioner annually at a public meeting in the fall.
IRSAC is comprised of up to 35 members, who are appointed to three-year terms by the Commissioner. Applications are currently being accepted for approximately seven appointments that will begin in January 2015.
Nominations of qualified individuals may come from individuals or organizations. IRSAC members are drawn from substantially diverse backgrounds. Membership is balanced to include representation from the tax professional community, including but not limited to: tax attorneys, certified public accountants, enrolled agents, academia and the business community. Federally registered lobbyists cannot be members of IRSAC. 
Nominations should describe and document the proposed member’s qualification for IRSAC membership, including the applicant’s knowledge of Circular 230 regulations and the applicant’s past or current affiliations, as well as dealings with the particular tax segment or segments of the community that the applicant wishes to represent on the council.
More information, including application forms, is available on the Tax Professionals page on IRS.gov. Questions about the application process can be sent to the following e-mail address: publicliaison@irs.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-58, May 1, 2014
WASHINGTON – The Internal Revenue Service today announced its Office of Professional Responsibility obtained the disbarment of Charles M. Edgar, which revokes his authority to practice before the IRS. Edgar is a former certified public accountant (CPA) and former attorney in Massachusetts. He was disbarred for having his CPA license revoked and for falsely claiming to be a CPA on power of attorney forms submitted to the IRS.
CPAs, duly qualified by a state, and lawyers, in good standing with a state, are permitted to represent taxpayers before the IRS. As a result of the proceedings, Edgar is barred from representing taxpayers before the IRS for a minimum of five years.
In a formal disciplinary proceeding, an administrative law judge (“ALJ”) determined that Edgar had engaged in misconduct in violation of Circular 230, Regulations Governing Practice before the IRS. Edgar appealed the order of disbarment. However, the Treasury Appellate Authority upheld the order of disbarment on April 18, 2014.
“The representations made by practitioners on powers of attorney forms are not mere procedural niceties. The forms are signed under penalty of perjury. Claiming a nonexistent licensure status puts the IRS in the position of potentially discussing taxpayer information with an unauthorized or unqualified person,” said Karen L. Hawkins, Director of the Office of Professional Responsibility. “We will not tolerate that type of abuse of the tax administration process by anyone.”
Edgar was licensed as a CPA and lawyer in Massachusetts. In December 2010, the Massachusetts Board of Registration in Public Accountancy revoked his CPA license based, in part, on his 1995 federal conviction for making false statements to the government in connection with claims for disability benefits and mail fraud.  Edgar’s license to practice law in Massachusetts was suspended in 1995, based on the criminal convictions. His petition for reinstatement to the Massachusetts bar was denied in 2001. 
Subsequent to the CPA license revocation, in May 2011, Edgar attempted to represent two individual taxpayers under audit by the IRS. He filed two powers of attorney (Form 2848) in which he claimed to be a CPA duly qualified to practice in Massachusetts.
In an Initial Decision and Order, the ALJ determined that Edgar’s “conduct demonstrates he does not have the integrity or character to be trusted representing taxpayers before the IRS.” The Decision further stated: “The only appropriate sanction therefore is disbarment.” 
The Treasury Appellate Authority concurred finding the disciplinary proceeding was brought within the statute of limitations; that Edgar had given false and misleading information to a Treasury employee during the IRS examination process; and, that submitting false powers of attorney to the IRS was a “serious violation[s] that warrants a severe sanction.”
The text of the ALJ’s Initial Decision and Order of disbarment and the Treasury Appellate Authority’s Decision on Appeal can be found on OPR’s Final Agency Decisions page.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-76, June 30, 2014
WASHINGTON — Individual Taxpayer Identification Numbers (ITINs) will expire if not used on a federal income tax return for any year during a period of five consecutive years, the Internal Revenue Service announced today. That is, the IRS will not deactivate an ITIN that has been used on at least one tax return in the past five years. To give all interested parties time to adjust and allow the IRS to reprogram its systems, the IRS will not begin deactivating ITINs until 2016.
The new, more uniform policy applies to any ITIN, regardless of when it was issued. Only about a quarter of the 21 million ITINs issued since the program began in 1996 are being used on tax returns. The new policy will ensure that anyone who legitimately uses an ITIN for tax purposes can continue to do so, while at the same time resulting in the likely eventual expiration of millions of unused ITINs.
Developed in consultation with taxpayers, their representatives and other stakeholders, the new policy replaces the existing one that went into effect on Jan. 1, 2013.
Under the old policy, announced in November 2012, ITINs issued after Jan. 1, 2013 would have automatically expired after five years, even if used properly and regularly by taxpayers. Though ITINs issued before 2013 were unaffected by that change, the IRS said at the time that it would explore options for deactivating or refreshing the information relating to these older ITINs.
ITINs play a critical role in the tax administration system and assist with the collection of taxes from foreign nationals, resident and nonresident aliens and others who have filing or payment obligations under U.S. law. Designed specifically for tax administration purposes, ITINs are only issued to people who are not eligible to obtain a Social Security Number.
Under the new policy:
The IRS will deactivate an ITIN that has not been used on at least one tax return in the past five years.
Any ITIN will remain in effect as long as a taxpayer continues to file U.S. tax returns. This includes ITINs issued after Jan. 1, 2013. These taxpayers will no longer face mandatory expiration of their ITINs and the need to reapply starting in 2018, as was the case under the old policy.
To ease the burden on taxpayers and give their representatives and other stakeholders time to adjust, the IRS will not begin deactivating unused ITINs until 2016. This grace period will allow anyone with a valid ITIN, regardless of when it was issued, to still file a valid return during the upcoming tax-filing season. 
A taxpayer whose ITIN has been deactivated and needs to file a U.S. return can reapply using Form W-7.As with any ITIN application, original documents, such as passports, or copies of documents certified by the issuing agency must be submitted with the form. 
Further details, including information on how and when taxpayers with expired ITINs will be notified, will be posted on IRS.gov at a later date.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-74, June 24, 2014
WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) presented its 2014 Annual Report to CongressPDF during a public meeting today. The report discusses five groups of recommendations on issues in electronic tax administration.
Highlights of the report include 11 recommendations on the following key outcomes:
Remove barriers for e-filing employment tax series Form 94x
Increase efficiency and accuracy of the foreign financial institution registration portal
Provide one IRS-issued Personal Identification Number (PIN) as the authentication component of an electronic signature
Create an online IRS account for individual and business taxpayers and tax professionals
Increase accuracy and reduce burden in reporting the advance payments of the premium tax credit under the Patient Protection and Affordable Care Act (ACA)
“The IRS appreciates that the committee worked a compressed schedule to deliver a timely report. We welcome your industry expertise and thoughtful recommendations for consolidating PINs, creating online accounts and improving e-filing of the 94x. We will take these recommendations under advisement,” said Robert J. Bedoya, Director of e-File Services.
The 11-member committee provides an organized public forum for discussion of electronic tax administration issues and the overriding goal that paperless filing should be the preferred and most-convenient method of filing tax and information returns.
“ETAAC commends the IRS on another successful filing season and recognizes the IRS's continued efforts to achieve an 80 percent electronic tax return filing beyond individual returns. As the IRS manages the various electronic administrative initiatives, ETAAC recommends the IRS continue its effort on the successful implementation of the Affordable Care Act and the Foreign Account Tax Compliance Act,” said Cyrus Daftary, ETAAC Chair.
ETAAC submits an annual progress report to Congress each June. The IRS created the ETAAC in 1998 as required by the IRS Restructuring and Reform Act of 1998.
The report is the result of research and analysis as well as meetings with senior IRS executives.
Public comments on the report may be sent to etaac@irs.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
IRS YouTube VideosPreparing for Disasters: English | Spanish | ASL
PodcastDisaster Assistance: EnglishMP3 | SpanishMP3
IR-2014-71, June 5, 2014
WASHINGTON — With the start of hurricane season this week, the Internal Revenue Service encourages individuals and businesses to safeguard their records against natural disasters by taking a few simple steps.
Create a Backup Set of Records Electronically
Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.
Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can save them to the cloud, download them to a backup storage device, like an external hard drive or USB flash drive, or burn them to a CD or DVD.
Document Valuables
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584PDF, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.
Update Emergency Plans
Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
IRS Ready to Help
If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
Back copies of previously-filed tax returns and all attachments, including Forms W-2, can be requested by filing Form 4506, Request for Copy of Tax Return.PDF  Alternatively, transcripts showing most line items on these returns can be ordered on-line, by calling 1-800-908-9946 or by using Form 4506T-EZ, Short Form Request for Individual Tax Return TranscriptPDF  or Form 4506-T, Request for Transcript of Tax ReturnPDF.     
Related Items:
Tax Relief in Disaster Situations
Publication 583, Starting a Business and Keeping RecordsPDF
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-70, June 2, 2014  
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2014. The rates will be: 
three (3) percent for overpayments [two (2) percent in the case of a corporation];
three (3) percent for underpayments;
five (5) percent for large corporate underpayments; and
one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
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 April 2014 to take effect May 1, 2014, based on daily compounding.
Revenue Ruling 2014-14PDF announcing the rates of interest will appear in Internal Revenue Bulletin 2014-27, dated June 30, 2014.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-69, June 2, 2014
WASHINGTON — The Internal Revenue Service today announced the spring 2014 issue of the Statistics of Income Bulletin is now available, featuring information on high-income individual income tax returns filed for tax year 2011. 
Taxpayers filed almost 5 million returns with adjusted gross incomes of $200,000 or more for 2011, up over 9 percent from the prior year. These high-income returns represent about 3 percent of all returns filed for the tax year.
The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis.  Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue of the SOI Bulletin also includes articles on the following topics:
Individual Income Tax Rates and Shares, 2011: Of the 145 million individual tax returns filed in tax year 2011, almost 92 million were classified as taxable returns or returns with a total income tax greater than $0. Adjusted gross income (AGI) for taxable returns was nearly $7.7 trillion, up 6 percent from the prior year. Total income tax was more than $1 trillion. To be included in the top 1 percent of returns for 2011 required an AGI of $388,905.
	 
Individual Noncash Contributions, 2011: For tax year 2011, there were more than 22 million individual taxpayers who reported a total of $43.6 billion in deductions for noncash charitable contributions. About a third (7.5 million) of these taxpayers reported nearly $39 billion in deductions for charitable contributions of $500 or more.
	 
Individual Foreign-Earned Income and Foreign Tax Credit, 2011: Nearly 450,000 U.S. taxpayers reported $54 billion of foreign-earned income for tax year 2011. This represented growth in real terms of over 32 percent since the last study in 2006.
The Statistics of Income Bulletin is available for download at IRS.gov/taxstats. Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate is $67 ($93.80 foreign); single issues cost $44 ($61.60 foreign).
For more information about these data, write to the Internal Revenue Service (RAS:S), Director, Statistics of Income, 1111 Constitution Ave. NW, (K-Room 4160), Washington, DC 20224-0002.
Related Items:       
SOI Bulletin: Spring 2014
Historical Tables and Appendix
Tax Statistics
IRS YouTube VideoForm 1023-EZ: English | Spanish | ASL
IR-2014-77, July 1, 2014
WASHINGTON — The Internal Revenue Service today introduced a new, shorter application form to help small charities apply for 501(c)(3) tax-exempt status more easily.
“This is a common-sense approach that will help reduce lengthy processing delays for small tax-exempt groups and ultimately larger organizations as well,” said IRS Commissioner John Koskinen. “The change cuts paperwork for these charitable groups and speeds application processing so they can focus on their important work."
The new Form 1023-EZ, available today on IRS.gov, is three pages long, compared with the standard 26-page Form 1023. Most small organizations, including as many as 70 percent of all applicants, qualify to use the new streamlined form. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible.
"Previously, all of these groups went through the same lengthy application process -- regardless of size," Koskinen said. "It didn't matter if you were a small soccer or gardening club or a major research organization. This process created needlessly long delays for groups, which didn’t help the groups, the taxpaying public or the IRS.”
The change will allow the IRS to speed the approval process for smaller groups and free up resources to review applications from larger, more complex organizations while reducing the application backlog. Currently, the IRS has more than 60,000 501(c)(3) applications in its backlog, with many of them pending for nine months.
Following feedback this spring from the tax community and those working with charitable groups, the IRS refined the 1023-EZ proposal for today's announcement, including revising the $50,000 gross receipts threshold down from an earlier figure of $200,000.
"We believe that many small organizations will be able to complete this form without creating major compliance risks," Koskinen said. "Rather than using large amounts of IRS resources up front reviewing complex applications during a lengthy process, we believe the streamlined form will allow us to devote more compliance activity on the back end to ensure groups are actually doing the charitable work they apply to do."
The new EZ formPDF must be filed online. The instructionsPDF include an eligibility checklist that organizations must complete before filing the form.
The Form 1023-EZ must be filed using pay.gov, and a $400 user fee is due at the time the form is submitted. Further details on the new Form 1023-EZ application process can be found in Revenue Procedure 2014-40PDF, posted today on IRS.gov.
There are more than a million 501(c)(3) organizations recognized by the IRS.
Related Item:
Information on Form 1023-EZ
Follow the IRS on New MediaSubscribe to IRS Newswire
Please see IRS Tax Tip 2018-38, March 13, 2018, Don’t Fall for Scam Calls and Emails Impersonating IRS for updated information.
Update September 2016 — To file a complaint using the FTC Complaint Assistant, choose “Scams and Rip-Offs” and then “Impostor Scams.” 
IR-2014-84, Aug. 28, 2014
WASHINGTON — The Internal Revenue Service issued a consumer alert today providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS.
These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request.
“These telephone scams are being seen in every part of the country, and we urge people not to be deceived by these threatening phone calls,” IRS Commissioner John Koskinen said. “We have formal processes in place for people with tax issues. The IRS respects taxpayer rights, and these angry, shake-down calls are not how we do business.”
The IRS reminds people that they can know pretty easily when a supposed IRS caller is a fake. Here are five things the scammers often do but the IRS will not do. Any one of these five things is a tell-tale sign of a scam. The IRS will never:
Call to demand immediate payment, nor will we call about taxes owed without first having mailed you a bill..
	 
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.
	 
Ask for credit or debit card numbers over the phone.
	 
Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:
If you know you owe taxes or think you might owe, call the IRS at 1.800.829.1040. The IRS workers can help you with a payment issue.
	 
If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1.800.366.4484 or at www.tigta.gov.
	 
You can file a complaint using the FTC Complaint Assistant; choose “Other” and then “Impostor Scams.” If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.  [See update at top of page.]
Remember, too, the IRS does not use unsolicited email, text messages or any social media to discuss your personal tax issue. For more information on reporting tax scams, go to www.irs.gov and type “scam” in the search box.
Additional information about tax scams are available on IRS social media sites, including YouTube and Tumblr where people can search “scam” to find all the scam-related posts.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-83, Aug. 22, 2014
WASHINGTON — The Internal Revenue Service today announced the availability of Statistics of Income—2012, Individual Income Tax Returns Complete Report (Publication 1304). 
U.S. taxpayers filed 144.9 million individual income tax returns for tax year 2012, down 0.3 percent from 2011. The adjusted gross income less deficit reported on these returns totaled $9.1 trillion, which is an 8.7-percent increase from the prior year.
The report is based on a sample drawn from the 144.9 million individual income tax returns filed for tax year 2012 and provides estimates on sources of income, adjusted gross income, exemptions, deductions, taxable income, income tax, modified income tax, tax credits, self-employment tax, and tax payments.
Classifications include tax status, size of adjusted gross income, marital status, age, and type of tax computation. A brief text reviews the requirements for filing tax returns, explains the changes in tax law, and describes the sample used to produce the report. Publication 1304 is currently available for download at irs.gov/taxstats.
For more information about these data, please write to the Director, Statistics of Income Division, RAS:S, Internal Revenue Service, 1111 Constitution Avenue, K-Room 4122, Washington, DC 20224.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-82, Aug. 22, 2014
WASHINGTON — The Internal Revenue Service today reminded truckers and other owners of heavy highway vehicles that in most cases, their next federal highway use tax return is due on Tuesday, Sept. 2, 2014.
This year’s Sept. 2 due date, pushed back two days because the normal Aug. 31 deadline falls on a Sunday, generally applies to Form 2290 and the accompanying tax payment for the tax year that begins on July 1, 2014, and ends on June 30, 2015. Returns must be filed and tax payments made by Sept. 2 for vehicles used on the road during July. For vehicles first used after July, the deadline is the last day of the month following the month of first use.
Though some taxpayers have the option of filing Form 2290 on paper, the IRS encourages all taxpayers to take advantage of the speed and convenience of filing this form electronically and paying any tax due electronically. Taxpayers reporting 25 or more vehicles must e-file. A list of IRS-approved software providers can be found on IRS.gov.
Paper returns must be mailed and postmarked by midnight on Sept. 2. As usual, IRS offices will be closed on Labor Day, Monday, Sept. 1.
The highway use tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. This generally includes trucks, truck tractors and buses. Ordinarily, vans, pick-ups and panel trucks are not taxable because they fall below the 55,000-pound threshold. The tax of up to $550 per vehicle is based on weight, and a variety of special rules apply, explained in the instructions to Form 2290.
More information can be found in the Trucking Tax Center at IRS.gov/truckers.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2014-80, Aug. 12, 2014
WASHINGTON ― The Internal Revenue Service announced today that its cornerstone "Taxpayer Bill of Rights“ document is now available in six languages.
Newly-revised versions of Publication 1, Your Rights as a TaxpayerPDF, are now posted on IRS.gov in English, Spanish, Chinese, Korean, Russian and Vietnamese. By making this important publication available in multiple languages, the IRS hopes to increase the number of Americans who know and understand their rights under the tax law.
The Taxpayer Bill of Rights takes the multiple existing rights embedded in the tax code and groups them into 10 broad categories, making them easier to find and understand.
“We believe that these rights are critically important for people to know and understand, and translating them into additional languages helps us reach even more taxpayers,” IRS Commissioner John Koskinen said. “We encourage people to take a moment to read the Bill of Rights.”
The Taxpayer Bill of Rights contains 10 provisions. They are:
The Right to Be Informed
The Right to Quality Service
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Finality
The Right to Privacy
The Right to Confidentiality
The Right to Retain Representation
The Right to a Fair and Just Tax System
The IRS has created a special section of IRS.gov to highlight the 10 rights. The website will continue to be updated with information as it becomes available.
Follow the IRS on New MediaSubscribe to IRS Newswire