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IR-2020-139, July 6, 2020
WASHINGTON — With the federal income tax deadline just around the corner, the Internal Revenue Service wants to remind taxpayers that IRS.gov offers tips on finding a qualified tax professional.
Over 84 million tax returns were prepared by a paid return preparer last year. Though most tax professionals provide honest, high-quality service, taxpayers should keep in mind these basic tips when selecting a tax professional:
Choose a trusted preparer. Taxpayers entrust vital personal data with the person preparing their tax return, including Social Security numbers and information on income and investments.
Review the tax return carefully before signing. Taxpayers are legally responsible for what's on their tax return, regardless of whether someone else prepared it. If something does not look right, don't hesitate to ask questions.
Make sure the preparer signs the return and includes their Preparer Tax Identification Number (PTIN).
Never sign a blank tax return. Consider it a red flag when a taxpayer is asked to sign a blank tax return.
Ask about service fees. Avoid preparers who base fees on a percentage of their client's refund or boast bigger refunds than their competition.
Taxpayers can use several options to help find a tax preparer. One resource is Choosing a Tax Professional, which includes a wealth of consumer guidance for selecting a tax professional. There are various types of tax return preparers, including enrolled agents, certified public accountants, attorneys and some who don't have a professional credential.
The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications is a free searchable and sortable database. It includes the name, city, state and zip code of credentialed return preparers who are CPAs, enrolled agents or attorneys, as well as those who have completed the requirements for the IRS Annual Filing Season Program. A search of the database can help taxpayers verify credentials and qualifications of tax professionals or locate a tax professional in their geographic area.
The IRS requires anyone who prepares any federal tax return for compensation to have a PTIN. For 2020, the IRS has issued more than 773,000 PTINs.
There is also a page with IRS Tax Pro Association Partners that includes links to national nonprofit tax professional groups that can help taxpayers seek the right type of qualified help from a tax preparer.
More resources:
Things to remember when choosing a tax preparer
How to Choose a Tax Return Preparer
When, and how, do I file a complaint about a tax preparer?
Most taxpayers eligible for free federal and free state tax return preparation
IR-2020-138, July 2, 2020
WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations and temporary regulations that provide guidance for consolidated groups regarding net operating losses (NOLs).
The Tax Cuts and Jobs Act (TCJA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) amended the rules for NOLs. After amendment, the NOL deduction is the sum of:
The total of the NOLs arising before January 1, 2018 (pre-2018 NOLs) that are carried to that year; plus
The lesser of:
	The total of the NOLs arising after December 31, 2017; or
80% of taxable income less pre-2018 NOLs (the 80% limitation).

The TCJA generally eliminated NOL carrybacks and permitted NOLs to be carried forward indefinitely. The TCJA also provides special rules for nonlife insurance companies and farming losses. Nonlife insurance companies are permitted to carry back NOLs two years and forward 20 years, and the 80% limitation does not apply. Farming losses are permitted to be carried back two years and carried forward indefinitely, subject to the 80% limitation.
The CARES Act effectively delays the application of the TCJA amendments until January 1, 2021. Additionally, the CARES Act permits a five-year carryback for NOLs, including farming losses and NOLs of nonlife insurance companies, for taxable years beginning after December 31, 2017 and before January 1, 2021.
The proposed regulations provide guidance to consolidated groups on the application of the 80% limitation. Additionally, the proposed regulations would remove obsolete provisions from the rules for consolidated groups that contain both life insurance companies and nonlife insurance companies. 
Because the CARES Act allows certain NOLs to be carried back five years, the temporary regulations allow certain acquiring consolidated groups to make an election to waive all or a portion of the pre-acquisition portion of the extended carryback period for certain losses attributable to certain acquired members.
For more information about this and other TCJA provisions, visit IRS.gov/taxreform. Additional information about tax relief for businesses affected by the COVID-19 pandemic can be found on IRS.gov.
IR-2020-137, July 1, 2020
WASHINGTON ― The Internal Revenue Service today announced additional retail partners are accepting cash payments for federal taxes. This cash payment option is for individual and business taxpayers.
The IRS' continuing partnership with ACI Worldwide's OfficialPayments.com and the PayNearMe Company allows taxpayers to make a payment without a bank account or credit card at participating 7-Eleven stores, Ace Cash Express and Casey's General Stores nationwide.
"We continuously look for ways to enhance the services we provide for our taxpayers," said IRS Wage and Investment Division Commissioner Ken Corbin. "The IRS offers many ways for taxpayers to pay their tax bills including direct debit, credit card and through electronic funds withdrawal when filing electronically. This cash option lets people pay their taxes without having to make an appointment at an IRS Taxpayer Assistance Center."
Individuals wishing to take advantage of this payment option should visit the IRS.gov/payments, select the cash option in the "Other Ways You Can Pay" section and follow the instructions. There is a $1,000 payment limit per day and a $3.99 fee per payment.
Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges.
The IRS reminds individuals without the need to pay in cash that there are other ways to pay online, by phone or with a mobile device and the IRS2Go app. IRS Direct Pay is a secure online payment option that allows taxpayers to pay directly from their bank accounts for free. The IRS has been partnering with Official Payments since 1999 for taxpayers wanting to use a credit card to pay their taxes.
The IRS reminds taxpayers to watch out for email schemes. Taxpayers will only receive an email from OfficialPayments.com or PayNearMe if they have initiated the payment process.
IR-2020-136, July 1, 2020
WASHINGTON – In response to the ongoing COVID-19 pandemic, the Internal Revenue Service today issued Notice 2020-53 PDF to provide tax relief to issuers, operators, owners, and tenants of qualified low-income housing projects or qualified residential rental projects financed with exempt facility bonds, and state agencies that have jurisdiction over these projects.
For certain time-sensitive actions scheduled to be performed and requirements to be met on or after April 1, 2020 and before December 31, 2020, owners and operators now have until December 31, 2020 to perform the actions and satisfy the requirements.
Further, between April 1, 2020 and December 31, 2020, owners of qualified low-income housing projects are not required to perform certain income recertifications or reduce the eligible basis in a building because of the temporary closure of an amenity or common area due to the COVID-19 pandemic, and state agencies that have jurisdiction over the projects are not required to conduct compliance-monitoring.
Additionally, between April 1, 2020 and December 31, 2020, owners and operators of these projects, issuers, and state agencies may treat medical personnel and other essential workers providing services during the COVID-19 pandemic as if they were Displaced Individuals, as defined in Rev. Procs. 2014-49 and 2014-50, and therefore, may provide emergency housing for these persons as described in these revenue procedures.
Additional information about tax relief for those affected by the COVID-19 pandemic can be found on IRS.gov.
The Internal Revenue Service also is issuing proposed regulationsPDF relating to the compliance-monitoring duties of state agencies for purposes of the low-income housing credit. The proposed regulations relax the minimum compliance-monitoring sampling requirement for purposes of physical inspections and low-income certification review, providing flexibility and reduced burdens with respect to the requirements set forth in the final regulations published on February 26, 2019.
IR-2020-198, August 31, 2020
WASHINGTON — The Internal Revenue Service is holding a free webinar designed to give an overview of Opportunity Zones and to discuss related tax benefits for investors. Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.
This free 75-minute webinar will take place on Thursday, September 3 at 2 p.m. Eastern Time. It is open to investors, tax professionals, government agencies and anyone else interested in the tax rules that affect Opportunity Zones.
In addition to the overview, topics to be covered include:
Investor reporting elections
Annual investor reporting requirements
Impact of disaster relief on Opportunity Zones
The webinar will feature a live question and answer session and will be closed captioned for viewers who are deaf or hearing impaired. Anyone interested in attending can register online.
For more information on Opportunity Zones, visit the general Opportunity Zones page and the Opportunity Zones Frequently Asked Questions.
Archived versions of past IRS webinars are available at www.irsvideos.gov.
IR-2020-195, August 28, 2020
WASHINGTON — The Department of Treasury and Internal Revenue Service today issued guidance PDF implementing the Presidential Memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages are below a certain amount.
Notice 2020-65, posted today on IRS.gov, makes relief available for employers and generally applies to wages paid starting September 1, 2020, through December 31, 2020.
The employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.
Today's notice postpones the time for employers to withhold and pay employee Social Security taxes.
Additional tax relief related to the COVID-19 pandemic can be found on IRS.gov.
Note:  Additional forms have been added and the temporary-use period has been extended until December 31, 2021.
IR-2020-194, August 28, 2020
WASHINGTON — To protect the health of taxpayers and tax professionals, the Internal Revenue Service today announced PDF it will temporarily allow the use of digital signatures on certain forms that cannot be filed electronically.
The change will help to reduce in-person contact and lessen the risk to taxpayers and tax professionals during the COVID-19 pandemic, allowing both groups to work remotely to timely file forms.
"We take the health and safety of the nation's taxpayers, the tax professional community and our employees very seriously," said IRS Commissioner Chuck Rettig. "Expanding the use of digital signatures is an important step during COVID-19 to help tax professionals. We understand the importance of digital signatures to the tax community, and we will continue to review our processes to determine where long-term actions can help reduce burden for the tax community, while appropriately balancing that with critical security and protection against identity theft and fraud."
The Form 1040, U.S. Individual Income Tax Return, already uses an electronic signature when it is filed electronically, either by using a taxpayer self-selected PIN, if self-prepared, or a tax-preparer selected PIN, if using a tax professional. More than 90% of Form 1040s are filed electronically. The IRS recommends all taxpayers consider e-filing forms this year, whenever possible, because of COVID-19.
The below list of forms is available at IRS.gov and through tax professional's software products. These forms cannot be e-filed and generally are printed and mailed. The IRS will not specify which digital signature product tax professionals must use. There are several commercial products available.
The following forms can be submitted with digital signatures if mailed by or on December 31, 2020:
Form 3115, Application for Change in Accounting Method;
Form 8832, Entity Classification Election;
Form 8802, Application for U.S. Residency Certification;
Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit;
Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies;
Form 1120-C, U.S. Income Tax Return for Cooperative Associations;
Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts;
Form 1120-L, U.S. Life Insurance Company Income Tax Return;
Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return; and
Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.
The IRS will closely monitor this temporary option for e-signatures and determine if additional steps are needed.
IR-2020-193, August 27, 2020
WASHINGTON — The Internal Revenue Service announced today the opening of the application period for the 2021 Compliance Assurance Process program. The application period runs September 1 to November 13, 2020. The IRS will inform applicants if they're accepted into the program in February 2021.
Launched in 2005, CAP employs real-time issue resolution, through transparent and cooperative interaction between taxpayers and the IRS, to improve federal tax compliance by resolving issues prior to the filing of a tax return.
To be eligible to apply for CAP, new applicants must:
Have assets of $10 million or more,
Be a U.S. publicly traded corporation with a legal requirement to prepare and submit SEC Forms 10-K, 10-Q, and 8-K, and
Not be under investigation by, or in litigation with, any government agency that would limit the IRS's access to current tax records.
To be eligible to participate in CAP, taxpayers must adhere to CAP program limits on the number of open years. For 2021, the IRS modified the open-year criteria, updated its requirements for the Tax Control Framework Questionaire and established a limit on the duration of the Bridge phase.
Program details are available on the CAP webpage. A draft of the 2021 CAP Memorandum of Understanding has also been posted on the CAP webpage, and stakeholders can offer any feedback on the MOU by sending it to the CAP mailbox at lbi.irs.cap.program@irs.gov by November 13, 2020.
IR-2020-192, August 25, 2020
WASHINGTON — The Internal Revenue Service will soon send catch-up Economic Impact Payment checks to about 50,000 individuals whose portion of the EIP was diverted to pay their spouse's past-due child support.
These catch-up payments are due to be issued in early-to-mid-September. They will be mailed as checks to any eligible spouse who submitted Form 8379, Injured Spouse Allocation, along with their 2019 federal income tax return, or in some cases, their 2018 return. These spouses do not need to take any action to get their money. The IRS will automatically issue the portion of the EIP that was applied to the other spouse's debt.
The IRS is aware that some individuals did not file a Form 8379, Injured Spouse Allocation, and did not receive their portion of the EIP for the same reason above. These individuals also do not need to take any action and do not need to submit a Form 8379. The IRS does not yet have a timeframe but will automatically issue the portion of the EIP that was applied to the other spouse's debt at a later date.
Affected taxpayers can check the status of their Payment by using the Get My Payment tool, available only on IRS.gov.
For more information, see the Receiving My Payment section of the Frequently Asked Questions in the Economic Payment Information Center on IRS.gov.
IR-2020-188, August 24, 2020
WASHINGTON — The Internal Revenue Service today issued a memorandum PDF that provides interim guidance to the agency's compliance staff on requests to designate issues for litigation.
Designation of issues for litigation, a decision that is made with the Office of Chief Counsel, limits a taxpayer's opportunity to administratively resolve their case with the IRS Independent Office of Appeals. Disputes between the IRS and taxpayers over designated issues must be resolved through litigation. The IRS took this step to update and clarify its designation procedures as part of its implementation of the Taxpayer First Act (TFA) enacted in July 2019.
The IRS's approach of judiciously designating issues for litigation balances the need to soundly administer the tax law while recognizing the important role of Appeals in resolving tax controversies without litigation. The designation of issues for litigation has been and remains infrequent. The IRS recently submitted its first TFA annual report indicating that no issues have been designated for litigation. For perspective, the Office of Chief Counsel annually litigates between 25,000 and 30,000 cases in the United States Tax Court, many of them involving small dollar amounts and pro se litigants.
The process of designating an issue is exhaustive. It involves several written notices and opportunities for the taxpayer to avoid designation and is subject to the highest level of oversight within the IRS and Chief Counsel. It also includes the opportunity to personally meet with the Chief Counsel to make a case against designation. The TFA codifies this framework and high level of oversight. It also sets forth the specific elements for the written notice required to be provided to the taxpayer and grants taxpayers the right to administratively appeal designation determinations.
The designation procedures set out in the memorandum will be incorporated into the Internal Revenue Manual, and corresponding changes will be made to the Chief Counsel Directive Manual. This ensures that IRS and Chief Counsel employees adhere to the designation procedures and comply with the TFA provisions. As part of the IRS's ongoing implementation of the TFA with public input, comments on today's release may be sent to tfao@irs.gov.
IR-2020-187, August 24, 2020
WASHINGTON — The Internal Revenue Service today reminds IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) this year that they have until August 31 to rollover or repay the distribution to avoid paying taxes.
The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives RMDs during 2020 for IRAs and retirement plans, including for beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70 ½ in 2019 and took their first RMD in 2020. Roth IRAs don't require withdrawals until after the death of the owner.
Individuals who took RMDs in 2020, including those who turned 70 ½ during 2019, have the option of returning the distribution to their account or other qualified plan.
Since the RMD rule is suspended, RMDs taken in 2020 are considered eligible for rollover. Therefore, RMDs can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan by August 31, to avoid paying taxes on that distribution.
IRS Notice 2020-51PDF also provides that the one rollover per 12-month period limitation and the restriction on rollovers to inherited IRAs don't apply to this repayment.
The CARES Act provisions apply to most retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans and other defined contribution plans. The RMD suspension doesn't apply to qualified defined benefit plans.
Where can I find more information?
More information on the CARES Act and retirement plans, including FAQs, can be found on the Coronavirus-related relief for retirement plans and IRAs questions and answers page.
IR-2020-185, August 18, 2020
WASHINGTON — With millions of Americans now receiving taxable unemployment compensation, many of them for the first time, the Internal Revenue Service today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year.
By law, unemployment compensation is taxable and must be reported on a 2020 federal income tax return. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted this spring.
Withholding is voluntary. Federal law allows any recipient to choose to have a flat 10% withheld from their benefits to cover part or all of their tax liability. To do that, fill out Form W-4V, Voluntary Withholding RequestPDF, and give it to the agency paying the benefits. Don't send it to the IRS. If the payor has its own withholding request form, use it instead.
If a recipient doesn't choose withholding, or if withholding is not enough, they can make quarterly estimated tax payments instead. The payment for the first two quarters of 2020 was due on July 15. Third and fourth quarter payments are due on September 15, 2020, and January 15, 2021, respectively. For more information, including some helpful worksheets, see Form 1040-ES and Publication 505, available on IRS.gov.
Here are some types of payments taxpayers should check their withholding on:
Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
Railroad unemployment compensation benefits
Disability benefits paid as a substitute for unemployment compensation
Trade readjustment allowances under the Trade Act of 1974
Unemployment assistance under the Disaster Relief and Emergency Assistance Act of 1974, and
Unemployment assistance under the Airline Deregulation Act of 1978 Program
Recipients who return to work before the end of the year can use the IRS Tax Withholding Estimator to make sure they are having enough tax taken out of their pay. Available only on IRS.gov, this online tool can help any worker or pension recipient avoid or lessen their year-end tax bill or estimate the refund they want.
In January 2021, unemployment benefit recipients should receive a Form 1099-G, Certain Government PaymentsPDF from the agency paying the benefits. The form will show the amount of unemployment compensation they received during 2020 in Box 1, and any federal income tax withheld in Box 4. Taxpayers report this information, along with their W-2 income, on their 2020 federal tax return. For more information on unemployment, see Unemployment Benefits in Publication 525.
IR-2020-183, August 18, 2020
WASHINGTON — This week the Treasury Department and the Internal Revenue Service will send interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are receiving refunds.
The interest payments, averaging about $18, will be made to individual taxpayers who filed a 2019 return by this year's July 15 deadline and either received a refund in the past three months or will receive a refund. Most interest payments will be issued separately from tax refunds.
In most cases, taxpayers who received their refund by direct deposit will have their interest payment direct deposited in the same account. About 12 million of these payments will be direct deposited.
Everyone else will receive a check. A notation on the check − saying "INT Amount" − will identify it as a refund interest payment and indicate the interest amount.
By law, these interest payments are taxable and taxpayers who receive them must report the interest on the 2020 federal income tax return they file next year. In January 2021, the IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10.
This provision is different from the long-standing 45-day rule, generally requiring the IRS to add interest to refunds on timely-filed refund claims issued more than 45 days after the return due date.
Instead, this year's COVID-19-related July 15 due date is considered a disaster-related postponement of the filing deadline. Where a disaster-related postponement exists, the IRS is required, by law, to pay interest, calculated from the original April 15 filing deadline, as long as an individual files a 2019 federal income tax return by the postponed deadline − July 15, 2020, in this instance. This refund interest requirement only applies to individual income tax filers − businesses are not eligible.
Interest is paid at the legally prescribed rate that is adjusted quarterly. The rate for the second quarter ending June 30 was 5%, compounded daily. Effective July 1, the rate for the third quarter dropped to 3%, compounded daily.
Where the calculation period spans quarters, a blended rate applies, consisting of the number of days falling in each calendar quarter. No interest will be added to any refund issued before the original April 15 deadline.
For more information, visit IRS.gov.
Major IRS milestone helps taxpayers correct tax returns with fewer errors, speeds processing
IR-2020-182, August 17, 2020
WASHINGTON — Marking a major milestone in tax administration, the Internal Revenue Service announced today that taxpayers can now submit Form 1040-X electronically with commercial tax-filing software.
As IRS e-filing has grown during the past 30 years, the 1040-X, Amended U.S. Individual Income Tax Return, has been one of the last major individual tax forms that needed to be paper filed. Today's announcement follows years of effort by the IRS, and the enhancement allows taxpayers to quickly electronically correct previously filed tax returns while minimizing errors.
"The ability to file the Form 1040-X electronically has been an important long-term goal of the IRS e-file initiative for many years," said Sunita Lough, IRS Deputy Commissioner for Services and Enforcement. "Given the details needed on the form, there have been numerous challenges to add this form to the e-file family. Our IT and business operation teams worked hard with the nation's tax industry to make this change possible. This is another success for IRS modernization efforts. The addition helps taxpayers have a quicker, easier way to file amended returns, and it streamlines work for the IRS and the entire tax community."
Making the 1040-X an electronically filed form has been a goal for the tax software and tax professional industry for years. It's been a continuing recommendation from the Internal Revenue Service Advisory Council (IRSAC) and Electronic Tax Administration Advisory Committee (ETAAC).
Currently, taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form.
Since the tax-filing software allows users to input their data in a question-answer format, it simplifies the process for them. It also makes it easier for IRS employees to answer taxpayer questions since the data is entered electronically and submitted to the agency almost simultaneously.
"Adding the 1040-X to the e-filing portfolio provides a better experience for the taxpayer, all around. It makes submitting an amended return easier and it allows our employees to process it in a more efficient way," said Ken Corbin, the IRS Wage and Investment commissioner and head of the division responsible for processing these returns.
For the initial phase, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically. Additional improvements are planned for the future.
About 3 million Forms 1040-X are filed by taxpayers each year.
Taxpayers still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form. Those filing their Form 1040-X electronically and on paper can use the Where's My Amended Return? online tool to check the status of their amended return.
IR-2020-179, August 13, 2020
WASHINGTON — The Internal Revenue Service today reminded owners of most heavy highway vehicles of their responsibility to timely file Form 2290, Heavy Highway Vehicle Use Tax Return.
The highway use tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. This generally includes large trucks, truck tractors and buses. The tax is based on the weight of the vehicle. A variety of special rules apply. These special rules are explained in the instructions to Form 2290.
The deadline to file Form 2290 and pay the tax is August 31, 2020, for vehicles used on the road during July.
New feature
For owners who are unsure if they have a requirement to file this form, IRS offers a new online feature called Do I Need to Pay the Heavy Highway Vehicle Use Tax? This question and answer format will help owners determine if they are required to pay highway use tax.
IRS e-file for convenience, fast Schedule 1
The IRS encourages all owners to take advantage of the speed and convenience of e-file and paying any tax due electronically. Some taxpayers have the option of filing Form 2290 on paper, but for those with 25 or more taxed vehicles they must e-file Form 2290.
There is no need to visit an IRS office because the form can be e-filed, and any required tax payment can be made online. Visit IRS.gov for a list of IRS-approved e-file providers and to find an approved provider for Form 2290 on the 2290 e-file partners page.
Payment methods
There are two ways to pay the tax electronically:
Electronic funds withdrawal; authorize a direct debit as part of the e-file process.
Electronic Federal Tax Payment System; allow five to seven business days for new accounts.
Until further notice, paying the Heavy Highway Vehicle Use Tax by credit card or debit card is no longer available.
To pay the tax by mail, send a completed Form 2290 and check or money order with Form 2290-V, Payment Voucher, to:
Internal Revenue Service
P.O. Box 932500
Louisville, KY 40293-2500
Generally, e-filers receive their IRS-stamped Schedule 1 electronically minutes after filing and paying any Heavy Highway Vehicle Use Tax due online. They can then print the Schedule 1 and provide it to their state department of motor vehicles without visiting an IRS office.
In 2019, the IRS received approximately 941,000 Heavy Highway Vehicle Use Tax Returns.
For more information about the highway use tax, visit the Trucking Tax Center at IRS.gov/trucker.
IR-2020-177, August 10, 2020
WASHINGTON — The Joint Board for the Enrollment of Actuaries today provided enrolled actuaries with notice that it is waiving the physical presence requirement for continuing professional education (CPE) credit for any formal programs conducted from January 1, 2020, through December 31, 2022. The Joint Board made this decision due to the hardships that the COVID-19 pandemic has caused, particularly those involving traveling to and participating in gatherings requiring close contact with others.
This waiver applies to all enrolled actuaries, whether they are in active or inactive status. Joint Board regulations require that no less than 1/3 of the total hours of continuing professional education credit required for an enrollment cycle must be obtained by participation in a formal program or programs. Without this waiver, an enrolled actuary earning credit hours for a formal program would have to participate in the program in the same physical location with at least two other participants engaged in substantive pension service.
Enrolled actuaries are still required to earn the same number of credit hours under formal programs that would otherwise be required. Although the physical presence requirement is temporarily waived, the other requirements for a formal program continue to apply, including all requirements for a qualifying program under the Joint Board regulations, attendance by at least three participants engaged in substantive pension service, and an opportunity for participants to interact with the instructor during the program. In addition, the certificate of completion or instruction issued by a qualifying sponsor of the program must indicate that the program is a formal program.   
The Joint Board is committed to protecting the health and welfare of enrolled actuaries and understands the challenges that this health pandemic creates. By waiving the physical location requirement while retaining all other steps to earn credit hours in formal programs, the Joint Board feels these measures serve to protect the well-being of enrolled actuaries by encouraging social distancing and reducing person-to-person contact without compromising the integrity of the CPE requirements.
An active or inactive enrolled actuary who did not receive a waiver notice by email should contact the Joint Board at nhqjbea@irs.gov.
IR-2020-175, August 3, 2020
WASHINGTON — The Internal Revenue Service announced today that James Lee will become the new chief of IRS Criminal Investigation (CI) on October 1.
Lee, currently CI's deputy chief and a 25-year veteran of the organization, will succeed current Chief Don Fort, who announced last month he will retire on September 30.
"Jim brings a quarter-century of Criminal Investigation management and field experience into this key enforcement role," said IRS Commissioner Chuck Rettig. "Jim is highly respected throughout the IRS and will continue long-standing working relationships with the civil enforcement functions of the IRS as well as with the Department of Justice's Tax Division and tax prosecutors throughout the country. He understands the need to support compliant taxpayers by maintaining a strong, robust enforcement effort focused on those who are compliance challenged."
As Chief, CI, Lee will lead the IRS's criminal enforcement efforts to investigate tax code violations and other related financial crimes such as money laundering, public corruption, cybercrimes, identity theft, narcotics and terrorist-financing.
Prior to serving as Deputy Chief of CI, he served as the Director of Field Operations, Northern Area where he oversaw CI enforcement programs in the Boston, New Jersey, New York, Ohio and Philadelphia Field Offices. He also previously served in executive roles as the Director of Field Operations, Southern Area and the Director, Strategy.
Lee began his IRS CI career in 1995 as a special agent in Detroit. He moved into the CI leadership ranks and has held positions of increasing responsibility throughout his career including Supervisory Special Agent in the New Orleans Field Office; Headquarters Senior Analyst in the International and Financial Crimes Sections; Assistant Special Agent in Charge within the Boston Field Office; and Special Agent in Charge of the New Orleans Field Office and later the Chicago Field Office.
Lee has a Bachelor of Business Administration Degree with a concentration in Accounting from Tiffin University in Ohio.
He will follow Fort into CI's top position. Fort, who was named CI Chief in June 2017 will retire after a long career, which began in 1991 as a special agent in CI's Baltimore District.
"Don has been a remarkable leader and champion for IRS Criminal Investigation," Rettig said. "He has a distinguished career and the entire IRS leadership team appreciates everything he has done to uphold the law and support tax administration. We look forward to Don's remaining time at the IRS as well as Jim taking on a new role and building on the great tradition in CI."
IR-2020-225, September 30, 2020
WASHINGTON — The Internal Revenue Service issued final regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA).
The 2017 TCJA generally eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. However, taxpayers may still deduct business expenses related to food and beverages if certain requirements are met.
These final regulations address the disallowance of the deduction for expenditures related to entertainment, amusement or recreation activities, including the applicability of certain exceptions to this disallowance. They also provide guidance to determine whether an activity is considered entertainment. The final regulations also address the limitation on the deduction of food and beverage expenses.
Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.
IR-2020-224, September 30, 2020
WASHINGTON – The Internal Revenue Service today launched a redesigned page on IRS.gov to help business owners navigate the federal tax steps when closing a business.
During this difficult and challenging time, the IRS streamlined the "Closing a Business" page into simple steps, so business owners and self-employed individuals can quickly find the information they need.
"The IRS realizes small businesses and self-employed individuals are facing challenges in their personal and business lives during these uncertain times," said Eric Hylton, Commissioner, Small Business/Self-Employed Division. "Closing a business is a difficult decision and we want to help ease the burden for people making this tough choice. We redesigned the closing a business page on IRS.gov to help businesses comply with final tax responsibilities."
The information includes what forms to file and how to report revenue received in the final year of business and expenses incurred before closure.
File a Final Return and Related Forms. The type of return to file depends on whether the business is a sole proprietorship, partnership or corporation. The page features a section for each business type. Business owners can click on the section that applies to them to get the returns and forms they need.
Take Care of Employees. Business owners with one or more employees must make final federal tax deposits and report employment taxes.
Pay the Taxes Owed. Even if the business closes now, tax payments may be due next filing season.
Report Payments to Contract Workers. Businesses that pay contractors at least $600 for services (including parts and materials) during the calendar year in which they go out of business, must report those payments.
Cancel EIN and Close IRS Business Account. The IRS cannot close out an account until the business has filed all necessary returns and paid all taxes owed.
Keep Business Records. How long a business needs to keep records depends on what's recorded in each document.
The page also has information to help business owners who are declaring bankruptcy, selling their business and terminating retirement plans. For easy access, they can reach the page at IRS.gov/closingabiz.
More information
How to close a sole proprietorship
	fact sheet 
e-posterPDF (Spanish versionPDF)

How to close a partnership
	fact sheet
e-posterPDF (Spanish versionPDF)

How to close a corporation
	fact sheet
e-posterPDF (Spanish versionPDF)
IR-2020-223, September 28, 2020
WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service today issued final regulations updating the federal income tax withholding rules for certain periodic retirement and annuity payments made after December 31, 2020.
Prior to the Tax Cuts and Jobs Act (TCJA), if no withholding certificate was in effect for a taxpayer's periodic payments, the amount to be withheld from the payments was determined by treating the taxpayer as a married individual claiming three withholding exemptions.
The TCJA amended this rule to provide that the rate of withholding on periodic payments when no withholding certificate is in effect (the default rate of withholding) would instead be determined under rules prescribed by the Secretary of the Treasury.
The final regulation issued today provides guidance for 2021 and future calendar years. This guidance specifies that the Treasury Department and the IRS will provide the rules and procedures for determining the default rate of withholding on periodic payments in applicable forms, instructions, publications and other guidance.
In July 2020, the IRS released a draft of a redesigned 2021 Form W-4P and instructions intended to align with the redesigned Form W-4, Employee's Withholding Certificate.
The draft 2021 Form W-4P also proposed a new default rate of withholding on periodic payments that begin after Dec. 31, 2020. Based on comments received on the draft Form W-4P, regarding the time required by payors to implement the new form and a new default rate of withholding, the IRS will postpone issuance of the redesigned form. Instead, the 2021 Form W-4P will be similar to the 2020 Form W-4P.
The IRS also intends to provide in the instructions to the 2021 Form W-4P and related publications that the default rate of withholding on periodic payments will continue to be determined by treating the taxpayer as a married individual claiming three withholding allowances.
The Treasury and IRS will continue working closely with the tax community on the redesign of Form W‑4P, with the intention of making the withholding system more accurate and transparent for taxpayers.
For more information about this and other TCJA provisions, visit IRS.gov/taxreform.
IR-2020-219, September 22, 2020
WASHINGTON — Farmers and ranchers who were forced to sell livestock due to drought may have an additional year to replace the livestock and defer tax on any gains from the forced sales, according to the Internal Revenue Service.
To qualify for relief, the farm or ranch must be in an applicable region. This is a county or other jurisdiction designated as eligible for federal assistance plus counties contiguous to it. Notice 2020-74PDF, posted today on IRS.gov, lists applicable regions in 46 states, the District of Columbia and four U.S. territories.
The relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry, are not eligible.
To qualify, the sales must be solely due to drought, flooding or other severe weather causing the region to be designated as eligible for federal assistance. Livestock generally must be replaced within a four-year period, instead of the usual two-year period. The IRS is also authorized to further extend this replacement period if the drought continues.
The one-year extension, announced in the notice, gives eligible farmers and ranchers until the end of the tax year after the first drought-free year to replace the sold livestock. Details, including an example of how this provision works, can be found in Notice 2006-82PDF, available on IRS.gov.
The IRS provides this extension to farms and ranches located in the applicable region that qualified for the four-year replacement period if any county that is included in the applicable region is listed as suffering exceptional, extreme or severe drought conditions during any week between September 1, 2019, and August 31, 2020. This determination is made by the National Drought Mitigation Center. All or part of 46 states, plus the District of Columbia and four U.S. territories are listed in the notice.
As a result, qualified farmers and ranchers whose drought-sale replacement period was scheduled to expire at the end of this tax year, December 31, 2020, in most cases, 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 2016. The replacement periods for some drought sales before 2016 are also affected due to previous drought-related extensions affecting some of these localities.
More information on reporting drought sales and other farm-related tax issues can be found in Publication 225, Farmer's Tax Guide, available on IRS.gov.
IR-2020-218, September 22, 2020
WASHINGTON — In support of National Small Business Week – September 22 to 24 – the Internal Revenue Service is emphasizing the many IRS online resources available to help small business owners and self-employed individuals handle the tax aspects of their business.
Resources in multiple languages
The IRS has a long history of providing resources in Spanish and also provides products in Chinese, Korean, Vietnamese, Russian, and Haitian-Creole such as the Small Business and Self-Employed Tax Center.
The Small Business and Self-Employed Tax Center features links to a variety of useful tools and common forms with instructions. The Center has information ranging from how to get an employer identification number online to tips about IRS audits.
To help more people, the IRS is translating other tax resources into more languages. In the meantime, the IRS is offering basic tax information in 20 languages, including a section on filing for a business.
Resources for coronavirus tax relief
The IRS has a dedicated page on IRS.gov on Coronavirus Tax Relief for Businesses and Tax-Exempt Entities. Here, business owners can get information about credits that may apply to them, such as employer tax credits, and answers to questions frequently asked about the credits.
Other small business resources
IRS Social Media
On Thursday, September 24 at 2 p.m. Eastern, join a Twitter chat, "IRS Tips for Small Business Owners," hosted by #IRS (@IRSnews). Get tips to help small businesses navigate the unique challenges brought forth by COVID-19. Follow along using #IRSsmallbiz
Information for small businesses is also available through all IRS social media channels, including tax tips and other resources. Spread these messages by sharing the @IRSsmallbiz, @IRSnews, @IRSTaxPros and @IRSenEspanol tweets.
Self-Employed Individual Tax Center
A resource for sole proprietors and others who are in business for themselves. This Center has many useful tips and references to tax rules a self-employed person may need to know.
Gig Economy Tax Center
A resource for people who earn income providing on-demand work, services or goods. Often, it's through a digital platform like an app or website.
Online Learning and Educational Products
A page with tools to help taxpayers learn about taxes on their own time and at their own pace. For example, the IRS Tax Calendar for Businesses and Self-Employed has important tax dates for businesses.
IRS YouTube Video Channel
Watch videos for small businesses on the Small Business playlist.
E-News for Small Businesses
A free, electronic mail service that offers tax information for small business owners and self-employed individuals, including reminders, tips and special announcements.
IR-2020-217, September 21, 2020
WASHINGTON — The Internal Revenue Service today issued final regulations that provide guidance for decedents' estates and non-grantor trusts clarifying that certain deductions of such estates and non-grantor trusts are not miscellaneous itemized deductions.
The Tax Cuts and Jobs Acts (TCJA) prohibits individuals, estates, and non-grantor trusts from claiming miscellaneous itemized deductions for any taxable year beginning after December 31, 2017, and before January 1, 2026.
Specifically, the final regulations clarify that the following deductions are allowable in figuring adjusted gross income and are not miscellaneous itemized deductions:
Deductions for costs paid or incurred in connection with the administration of the estate or trust which would not have been incurred if the property were not held in such estate or non-grantor trust.
The deduction concerning the personal exemption of an estate or non-grantor trust.
The distribution deductions for trusts distributing current income.
The distribution deductions for trusts accumulating income.
 
In addition, the final regulations provide guidance on determining the character and amount of, as well as the manner for allocating, excess deductions that beneficiaries succeeding to the property of a terminated estate or non-grantor trust may claim on their individual income tax returns.
For more information about this and other TCJA provisions, visit IRS.gov/taxreform.