etrent17/irs-articles huggingface dataset:
IR-2021-193, September 24, 2021
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, farmers or ranchers must have sold livestock on account of drought conditions in an applicable region. This is a county or other jurisdiction designated as eligible for federal assistance plus counties contiguous to it. Notice 2021-55PDF, posted today on IRS.gov, lists applicable regions in 36 states and one U.S. territory.
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.
The sales must be solely due to drought, causing an area 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 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 their first 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 eligible farmers and ranchers who sold livestock on account of drought conditions in an applicable region that qualified for the four-year replacement period, if the applicable region is listed as suffering exceptional, extreme or severe drought conditions during any week between September 1, 2020, and August 31, 2021. This determination is made by the National Drought Mitigation Center.
As a result, eligible farmers and ranchers whose drought-sale replacement period was scheduled to expire on December 31, 2021, in most cases now have until the end of their next tax year to replace the sold livestock. Because the normal drought-sale replacement period is four years, this extension impacts drought sales that occurred during 2017. The replacement periods for some drought sales before 2017 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-2021-192, September 22, 2021
WASHINGTON — The IRS today introduced a new webpage that provides information to taxpayers whose large refunds are subject to further review by the Joint Committee on Taxation (JCT or Joint Committee).
By law, when taxpayers claim a federal tax refund or credit of more than $2 million ($5 million for a C corporation), the IRS must review the refund or credit and provide a report to the JCT, a non-partisan committee of the U.S. Congress. Refunds subject to this review are known as “Joint Committee Refund Cases.”
Taxpayers can now find answers to most questions about Joint Committee case reviews and links to additional resources at Large Tax Refunds and Credits Subject to Review by the Joint Committee on Taxation – What to Expect.
The new webpage covers the following topics:
What is a Joint Committee Refund Case
How the IRS handles a Joint Committee Refund Case
What you need to do
A Joint Committee Refund Case may arise from the following:
A refund claim for previously assessed and paid taxes. A refund claim may be made on an amended return or be made by a claim submitted during an examination. A refund claim would be reviewed by the IRS and reported to the JCT before being paid.
A tentative refund from tentative carrybacks of net operating losses, capital losses or credits. The tentative refund would be claimed on Form 1139, Corporation Application for Tentative Refund, or on Form 1045, Application for Tentative Refund. A tentative refund would be paid prior to IRS and JCT review.
A refund or credit of income taxes due to certain losses relating to federally declared disasters.
The IRS estimates the new webpage will help hundreds of taxpayers. The agency notifies taxpayers who have Joint Committee Refund Cases that are subject to review. Taxpayers who have been contacted by an IRS agent should work with the agent assigned to their Joint Committee Refund Case.
IR-2021-191, September 22, 2021
WASHINGTON — The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for collection of overdue tax debts. The new contracts begin Thursday following today's expiration of the old contracts.
Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills may be contacted by one of the following three agencies:
CBE Group, Inc.
PO Box 2217
Waterloo, IA 50704
800-910-5837
Coast Professional, Inc.
PO Box 526
Albion, NY 14411
888-928-0510
ConServe
PO Box 307
Fairport, NY 14450
844-853-4875
Notification by IRS and the private collection agencies
The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA).
First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account was assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection AgencyPDF.
	 
Following IRS notification, the PCA will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer's privacy and security, both the IRS letter and the PCA's letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.
How it works
The private collectors will identify themselves as contractors collecting taxes on behalf of the IRS. Employees of these collection agencies must follow the provisions of the Fair Debt Collection Practices Act, and like IRS employees, must be courteous and must respect taxpayer rights.
Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy.
Payment options
The private firms are authorized to discuss payment options, including setting up payment agreements with taxpayers. But as with cases assigned to IRS employees, any tax payment must be made directly to the IRS. A payment should never be sent to the private firm or anyone besides the IRS or the U.S. Treasury. Checks should only be made payable to the United States Treasury. To find out more about available payment options, visit IRS.gov/payments.
More information
The IRS established the Private Debt Collection program in 2016, as authorized under federal law, and contracted with several agencies to collect certain unpaid tax debts on the government's behalf. To learn more about the private debt collection program, visit the Private Debt Collection page. Additional information can be found at the following links:
Private Debt Collection – Accounts Assigned to Private Collection Agencies
Questions and answers
Get Transcript 
Private Collection of Overdue Taxes YouTube Video
Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection AgencyPDF
Understanding Your CP40 Notice
Taxpayer Bill of Rights
IR-2021-187, September 15, 2021
WASHINGTON — The Internal Revenue Service, in response to the continued shortages of undyed diesel fuel caused by Hurricanes Ida and Nicholas, will extend the penalty relief provided in IR-2021-176 when dyed diesel fuel is sold or used on the highway.
In IR-2021-176, released September 1, 2021, the IRS announced that due to the impact of Hurricane Ida it would not impose a penalty when dyed diesel fuel is sold for use or used on the highway for the following parishes in the state of Louisiana: Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge and West Feliciana. That relief has been extended and is effective as of August 29, 2021 and will remain in effect through September 30, 2021.
In addition, due to the impact of Hurricanes Ida and Nicholas, the IRS is also providing penalty relief to the parishes of Acadia, Allen, Avoyelles, Beauregard, Calcasieu, Cameron, Evangeline, Jefferson Davis, Lafayette, Rapides, St. Landry, Vermilion, and Vernon. This additional relief is effective as of August 29, 2021 and will remain in effect through September 30, 2021.
This penalty relief is available to any person that sells or uses dyed fuel for highway use. In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for highway use. The IRS will not impose penalties for failure to make semimonthly deposits of this tax. IRS Publication 510, Excise TaxesPDF, has information on the proper method for reporting and paying the tax.
Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use and to local governments for buses.
Also, this waiver does not apply to the Internal Revenue Code penalty for using adulterated fuels that do not comply with applicable EPA regulations. Consequently, diesel fuel with sulfur content higher than 15 parts-per-million may not be used in highway vehicles.
The IRS is closely monitoring the situation and will provide additional relief as needed.
IR-2021-185, September 14, 2021
WASHINGTON — The Internal Revenue Service will close its paper return processing center in Fresno, California, permanently at the end of September this year. Originally announced in 2016, this closure is part of a larger, ongoing efficiency strategy as most taxpayers now file electronically.
The number of individual returns taxpayers filed electronically has grown from 90 million in 2008 to over 145 million in 2020, which is more than 90% of all returns filed. The IRS expects this trend to continue for both individual and non-individual returns.
Where to send returns
Taxpayers located in Alaska, California, Hawaii, Ohio and Washington state who previously filed their federal tax returns with Fresno should now mail their returns to the Ogden, Utah, processing center.
The Ogden address for filing paper individual returns is:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002
Fresno operations
The IRS will maintain a presence in Fresno with many other operations still working at full capacity. This planned consolidation, however, allows IRS to streamline operations and make better use of existing space.
When this consolidation was announced in September 2016, there were approximately 3,000 employees employed at the paper processing center in Fresno. Since that time, the IRS has taken steps to provide training and find continued employment opportunities for many of the impacted employees. Others have chosen to retire or separate from the IRS.
The agency also maintains a Fresno submission processing consolidation update page on IRS.gov.
IRS.gov assistance 24/7
The IRS reminds taxpayers that help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions.
The IRS is continuing to expand ways to communicate to taxpayers who prefer to get information in other languages. The IRS has posted translated tax resources in 20 other languages on IRS.gov. For more information, see We Speak Your Language.
IR-2021-181, September 10, 2021
WASHINGTON — The Internal Revenue Service reminds taxpayers today that the cost of home testing for COVID-19 is an eligible medical expense that can be paid or reimbursed under health flexible spending arrangements (health FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), or Archer medical savings accounts (Archer MSAs). That is because the cost to diagnose COVID-19 is an eligible medical expense for tax purposes.
The IRS also reminds taxpayers that the costs of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, HRAs, or Archer MSAs. Additional information is available on IRS.gov.
For more information regarding details and requirements on deductibility of medical expenses, taxpayers can review Can I Deduct My Medical and Dental Expenses? and Publication 502, Medical and Dental Expenses.
IR-2021-178, September 7, 2021
WASHINGTON — The Treasury Department and the Internal Revenue Service today issued Notice 2021-53PDF, which provides guidance to employers about reporting on Form W-2 the amount of qualified sick and family leave wages paid to employees for leave taken in 2021. The notice provides guidance under recent legislation, including: the Families First Coronavirus Response Act (FFCRA), as amended by the COVID-Related Tax Relief Act of 2020, and the American Rescue Plan Act of 2021.
Employers will be required to report these amounts to employees either on Form W-2, Box 14, or in a separate statement provided with the Form W-2. The guidance provides employers with model language to use as part of the Instructions for Employee for the Form W-2 or on the separate statement provided with the Form W-2.
The wage amount that the notice requires employers to report on Form W-2 will provide employees who are also self-employed with the information necessary to determine the amount of any sick and family leave equivalent credits they may claim in their self-employed capacities.
In July 2020, the IRS issued Notice 2020-54, which provided guidance regarding W-2 reporting of qualified sick leave and family leave under FFCRA for wages paid to employees for leave taken in 2020.
Additional information about tax relief for employers affected by the COVID-19 pandemic can be found on IRS.gov.
IR-2021-176, September 1, 2021
WASHINGTON — The Internal Revenue Service, in response to shortages of undyed diesel fuel caused by Hurricane Ida, will not impose a penalty when dyed diesel fuel is sold for use or used on the highway for a number of parishes in the state of Louisiana.
The Louisiana parishes are: Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge and West Feliciana.
This relief is effective as of August 29, 2021, and will remain in effect through September 15, 2021.
This penalty relief is available to any person that sells or uses dyed fuel for highway use. In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for highway use. The IRS will not impose penalties for failure to make semimonthly deposits of this tax. IRS Publication 510, Excise TaxesPDF, has information on the proper method for reporting and paying the tax.
Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use and to local governments for buses.
Also, this waiver does not apply to the Internal Revenue Code penalty for using adulterated fuels that do not comply with applicable EPA regulations. Consequently, diesel fuel with sulfur content higher than 15 parts-per-million may not be used in highway vehicles.
The IRS is closely monitoring the situation and will provide additional relief as needed.
IR-2021-209, October 22, 2021
WASHINGTON — The Internal Revenue Service today reminded families, teens and senior citizens about the continued importance of protecting personal and financial informationPDF online. Although the IRS and its Security Summit partners continue making strides in fighting identity theft and fraudulent tax returns, help is needed.
The Security Summit works to protect taxpayers from criminals that file fraudulent returns for refunds. The Summit coalition includes representatives of the software industry, tax preparation firms, payroll and tax financial product processors as well as state tax administrators and the IRS, which work together year-round to protect taxpayers.
During National Cybersecurity Month, the IRS is asking parents, families and others to be mindful of the pitfalls that can be found by sharing devices at home, shopping online and through navigating various social media platforms. Often, those who are less experienced can put themselves and others at risk by leaving an unnecessary trail of personal information for fraudsters.
Staying safe online
Here are a few common-sense suggestions that can make a difference for children, teens and other vulnerable groups to potential dangers to protect their personal data:
Teach them to recognize and avoid scams. Phishing emails, threatening phone calls and texts from thieves posing as the IRS or legitimate organizations pose ongoing risks. Do not click on links or download attachments from unknown or suspicious emails.
Remind them why security is important. Be careful not to reveal too much personal information. Keeping data secure and only providing what is necessary minimizes online exposure to scammers and criminals. Birthdates, addresses, age, financial information such as bank account and Social Security numbers are among things that should not be shared freely.
Teach them about public Wi-Fi networks. Connection to Wi-Fi in a mall or coffee shop is convenient but it may not be safe. Hackers and cybercriminals can easily intercept personal information. Always use a virtual private network when connecting to public Wi-Fi.
Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Remember, to encrypt sensitive files such as tax records stored on computers. Be sure all family members have comprehensive protection especially if devices are being shared. Use strong, unique passwords for each account.
Remember, the IRS does not use text messages or social media to discuss personal tax issues, such as those involving tax refunds, stimulus payments or tax bills. For more information, visit the Tax Scams and Consumer Alerts page on IRS.gov. Additional information about tax scams is also available on IRS social media sites, including YouTube videos. Also see Publication 4524, Security Awareness for TaxpayersPDF.
IR-2021-208, October 22, 2021
WASHINGTON — To help address COVID-related labor shortages, the Internal Revenue Service today reminded employers that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan's normal retirement age.
With the COVID-19 pandemic, many employers, including governmental employers (such as public school districts), are looking for ways to encourage retirees to return to the workforce to fill open positions and experienced employees to stay on the job.
The IRS is providing help to these employers in two new frequently asked questions (FAQs), designed to offer technical guidance to public and private employers who sponsor pension plans for their employees. The FAQs highlight existing ways that employers can meet their employment objectives and still comply with the plan qualification rules.
Under the FAQs, an employer can generally choose to address unforeseen hiring needs by rehiring former employees, even if those employees have already retired and begun receiving pension benefit payments. Also, if permitted under plan terms, those employees may continue receiving the benefits after they are rehired. Moreover, an employer can generally choose to make retirement distributions available to existing employees who have reached age 59 ½ or the plan's normal retirement age. This may assist in the retention of employees eligible for retirement.
Further details can be found in the two new FAQs now posted on IRS.gov. Also, next Wednesday and Thursday (October 27 and 28) from 4-5 p.m. ET, the Department of the Treasury and the Department of Education will be holding webinars for education leaders and other stakeholders to discuss approaches to addressing school staff labor shortages, including a discussion about these new FAQs.
Webinars:
Webinar 1: Teacher and substitute teacher shortages 
October 27, 2021, 4 p.m. Eastern Time
Participants should pre-register
Webinar 2: Staff shortages, such as school bus drivers and food service workers
October 28, 2021 at 4 p.m. Eastern Time
Participants should pre-register
IR-2021-205, October 18, 2021
WASHINGTON — The Internal Revenue Service is joining international organizations and other regulators in highlighting Charity Fraud Awareness Week, October 18-22.
The campaign is run by a partnership of charities, regulators, law enforcers and other not-for-profit stakeholders from across the world. The purpose of the week is to raise awareness of fraud and cybercrime affecting organizations and to create a safe space for charities and their supporters to talk about fraud and share good practice.
According to the Fraud Advisory Panel, a UK-based organization leading the effort, cybercrime is on the rise, exacerbated by the pandemic, including attacks on charities, their supporters and beneficiaries. It estimates that the average charitable organization will lose 5% of its revenue to fraud each year. The IRS is a partner in Charity Fraud Awareness Week as part of its ongoing commitment to fight fraud against charities, businesses and individuals.
In addition to cybercrime targeting charities, criminals who create fake charities are also a problem. Fake charities are once again part of the IRS's Dirty Dozen tax scams for 2021. Taxpayers can find legitimate and qualified charities with the Tax Exempt Organization Search tool on IRS.gov.
"We especially advise taxpayers to be on the lookout for scammers who set up fake organizations to take advantage of the public's generosity," said IRS Director of Exempt Organizations and Government Entities Rob Malone. "They take advantage of tragedies and disasters, such as the COVID-19 pandemic. Campaigns like Charity Fraud Awareness Week can help remind everyone to remain vigilant."
Scams requesting donations for disaster relief efforts are especially common on the phone. Taxpayers should always check out a charity before they donate, and they should not feel pressured to give immediately.
A cornerstone of international Charity Fraud Awareness Week is a social media campaign focused on the theme of "We Can Do This" and featuring the hashtag #StopCharityFraud.
A special website was created for the campaign and features information to help partners, charities and other tax-exempt organizations and non-profits find:
Details about the awareness week
Free resources
A fraud pledge for organizations
A listing of webinars and other events held as part of the week
Those encouraged to participate in the week's activities include:
Trustees, staff and volunteers from charities, non-government organizations, and non-profits
Organizations that represent the interests of non-profits
Accountants, auditors and those acting as professional advisors to non-profits
Regulators, law enforcement officials and policymakers working to safeguard non-profits
Visit the Fraud Advisory Panel website to learn more about Charity Fraud Awareness Week and how to get involved.
IR-2021-204, October 18, 2021
WASHINGTON — The Internal Revenue Service today announced that beginning October 18, the IRS's large business division will accept all taxpayer requests to meet with IRS employees using secure videoconferencing. This step extends the practice used during the pandemic to accommodate taxpayers who sought more than meeting with an IRS employee over telephone calls.
"Since 2020, we advanced several measures to better interact virtually and digitally with large business taxpayers," said Nikole Flax, IRS commissioner of the Large Business and International Division (LB&I). "Our success in using these tools and the convenience and efficiency for taxpayers and their representatives convinced us that the way forward will continue to involve the use of video-teleconferencing."
The new guidance, Video Meetings with LB&I Taxpayers and their RepresentativesPDF, requires LB&I employees to grant large business taxpayer requests for a secure video meeting with IRS-approved platforms in lieu of an in-person or telephone discussion with a compliance function.
Today's announcement represents a step forward in the IRS's effort to work with taxpayers in a virtual environment, including the expanded use of secure email and the launch of a virtual reading room environment to enable large LB&I taxpayers and IRS agents to share certain privileged taxpayer documents in a read-only capacity. In addition, LB&I also launched and expanded its use of paperless processes so that cases can continue to move swiftly through examination and resolution.
These efforts are aimed at continuing to improve service to meet the needs of large business taxpayers and their representatives and are a part of the IRS's ongoing commitment to find more convenient and effective ways to interact with taxpayers and the community of tax professionals.
LB&I is responsible for tax administration activities for domestic and foreign businesses with a United States tax reporting requirement and assets equal to or exceeding $10 million, as well as the Global High Wealth and International Individual Compliance programs.
IR-2021-200, October  12, 2021
WASHINGTON — The Internal Revenue Service recently awarded over $41 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants to organizations that provide free federal tax return preparation.
This year, the IRS awarded grants to 34 TCE and 300 VITA applicants. The IRS received 379 applications requesting over $70 million.
The TCE program, established in 1978, provides free tax counseling and federal return preparation to individuals who are age 60 or older. Volunteers receive training and technical assistance to provide assistance at community locations across the nation.
The VITA program, created in 1969, assists underserved communities, such as low- and moderate-income individuals and limited English proficient taxpayers. VITA grant recipients provide free federal tax return preparation and electronic filing. The grant program helps to expand VITA services to underserved populations.
The IRS forms partnerships with a wide variety of organizations across the country to develop VITA and TCE programs. Community partners include non-profit agencies, faith-based organizations, community centers and large employers. The IRS provides tax law training, certification and oversight to these organizations assisting their efforts to prepare accurate returns.
For information on applying for the TCE or VITA programs along with a list of current grant recipients, visit the TCE webpage or the VITA Grant webpage. For details on becoming a TCE or VITA volunteer, visit IRS Tax Volunteers.
IR-2021-199, October 8, 2021
WASHINGTON — The Internal Revenue Service reminds taxpayers today that the last quarter of 2021 is a good time to check withholding.
Life brings constant changes to individual financial situations. Events like marriage, divorce, a new child or home purchase can all be reasons to adjust withholding.
The convenient Tax Withholding Estimator, also available in Spanish, will help taxpayers determine if they have too much withheld and how to make an adjustment to put more cash into their own pocket now. In other cases, it will help taxpayers see that they should withhold more or make an estimated tax payment to avoid a tax bill when they file their tax return next year.
Items that may affect 2021 taxes
Things to consider when adjusting withholding for 2021 are:
Coronavirus tax relief – Tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).
Disasters such as wildfires and hurricanes – Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area.
Job loss – IRS Publication 4128, Tax Impact of Job LossPDF, explains how this unfortunate circumstance can create new tax issues.
Workers moving into the gig economy due to the pandemic – IRS advises people earning income in the gig economy to consider estimated tax payments to avoid a balance or penalties when they file.
Life changes such as marriage or childbirth – Getting married or having a child are just a couple of life events that can affect your refund or how much you owe.
Pay as you go
Taxes are generally paid throughout the year whether from salary withholding, quarterly estimated tax payments or a combination of both. About 70% of taxpayers, however, over withhold their taxes every year, which typically results in a refund. The average refund in 2021 was more than $2,700.
Taxpayers can pay online, by phone or from the IRS2Go app. They can schedule payments for future dates, which can be useful during filing season, for payment plan payments or for estimated tax payments.
Taxpayers can also log into their IRS.gov/account to view the amount they owe, their payment plan details and options, their payment history (up to 5 years), any scheduled or pending payments, and key tax return information from their most recent tax return.
Tax Withholding Estimator
The IRS Tax Withholding Estimator makes it easier for everyone to have the right amount of tax withheld. This is especially important for anyone who faced an unexpected tax bill or a penalty when they filed this year, or whose jobs or tax circumstances have changed during the year.
The tool offers workers, as well as retirees, self-employed individuals and other taxpayers, a user-friendly, step-by-step tool for effectively tailoring the amount of income tax they have withheld from wages and pension payments.
For more information about taxes, estimated taxes and tax withholding, see Tax Withholding at IRS.gov.
IR-2021-198, October 5, 2021
WASHINGTON — The Internal Revenue Service announced today that Free File remains available through Oct. 15 for those taxpayers who still need to file their 2020 tax returns.
Free File is the IRS' public-private partnership with tax preparation software industry leaders to provide their brand-name products for free.
Free File provides two ways for taxpayers to prepare and file their federal income tax online for free:
Traditional IRS Free File provides free online tax preparation and filing options on IRS partner sites. Taxpayers whose adjusted gross income (AGI) is $72,000 or less qualify for any IRS Free File partner offers.
For taxpayers whose income (AGI) is greater than $72,000, there's the Free File Fillable Forms option. It provides electronic federal tax forms that can be filled out and filed online for free. To use this option taxpayers should know how to prepare their own tax return.
Always start at IRS.gov:
From the homepage select File Your Taxes for Free
Pick an option based on income
Follow links to the chosen Free File provider's website
Taxpayers who requested the six-month filing extension should complete their tax returns and file on or before the Oct. 15 deadline.
Only current year tax returns can be filed using IRS Free File. The IRS does not allow electronic filing for prior year returns through self-preparation websites.
Prior year returns can only be filed electronically by registered tax preparers for the two previous tax years. Otherwise, taxpayers must print, sign and mail prior year returns.
The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications lists qualified local preparers.
Tax pros: 2021 self-study seminars now available for continuing education credit
IR-2021-197, October 4, 2021
WASHINGTON — The Internal Revenue Service today announced that 18 new self-study seminars are available through the IRS Nationwide Tax Forums Online.
Tax professionals – CPAs, enrolled agents, Annual Filing Season Program participants and others – can earn continuing education for $29 per credit.
The new seminars were recorded in July and August at the 2021 IRS Nationwide Tax Forum.
2021 Nationwide Tax Forums Online course listing
Advocating for Taxpayers in Order to Avoid Abusive Tax Schemes
Be Tax Ready – Understanding Rules for Due Diligence and the Child Tax Credit and Earned Income Tax Credit Under the American Rescue Plan Act of 2021
Charities & Tax-Exempt Organizations Update
Closer Look at the IRS Independent Office of Appeals
Collection Flexibilities During Difficult Economic Times
Common Issues Presented to OPR and Best Practices to Address Them
Determining an Individual's Tax Residency Status
e-Services and You
Gig Economy
 Helping You and Your Clients Steer Clear of Fraud and Scams
 Key Enforcement Issues
Keynote Address
Keys to Mastering Due Diligence Requirements and What to Expect During a Due Diligence Audit
 Overview of Taxpayer Civil Rights
 Professional Responsibility Obligations when Practicing before the IRS: OPR and Circular 230
 Retirement Plans - IRS Compliance Initiatives
 Tax Law Changes from a Forms Perspective
 Virtual Currency
These 18 courses are now available in addition to 37 sessions from previous years that are also available for credit.
Information on continuing education credits
The Nationwide Tax Forums Online is a qualified sponsor of continuing education registered with the IRS Return Preparer Office (RPO) and the National Association of State Boards of Accountancy (NASBA).
To earn credit, tax pros need to create an account, answer review questions throughout the seminar and pass a short test.
The online seminars can be reviewed for free. Individuals who choose this option will not have access to the review questions or final examination and will not receive credit.
For more information, visit  IRS Nationwide Tax Forums Online .
IR-2021-196, October 1, 2021
WASHINGTON — The Internal Revenue Service reminds U.S. citizens, resident aliens and any domestic legal entity that the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is Oct. 15, 2021.
Filers missing the April 15 annual due date earlier this year received an automatic extension until Oct. 15, 2021, to file the FBAR. They did not need to request the extension.
Filers affected by a natural disaster may have their FBAR due date further extended. It's important filers review relevant FBAR Relief Notices for complete information.
Who needs to file?
The Bank Secrecy Act requires U.S. persons to file an FBAR if they have:
Financial interest in, signature authority or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account located outside the United States, and
The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.
Because of this threshold, the IRS encourages U.S. persons or entities with foreign accounts, even relatively small ones, to check if this filing requirement applies to them. A U.S. person is a citizen or resident of the United States or any domestic legal entity such as a partnership, corporation, limited liability company, estate or trust.
How to file
Filers do not file the FBAR with their federal income tax return. The 2020 FBAR must be filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is only available through the BSA E-Filing System website. Those who are unable to e-file their FBAR must call FinCEN at 800-949-2732, or from outside the U.S. at 703-905-3975.
Avoid penalties
Those who don't file an FBAR when required may be subject to significant civil and criminal penalties that can result in a fine and/or prison. The IRS will not penalize those who properly reported a foreign account on a late-filed FBAR if the IRS determines there was reasonable cause for late filing.
FBAR resources on IRS.gov:
How to report foreign bank and financial accounts
International Taxpayers 
IRS FBAR Reference GuidePDF
FAQs About International Individual Tax Matters
FinCEN's website Reporting Maximum Account Value
To help avoid delays with tax refunds, taxpayers living abroad should visit Helpful Tips for Effectively Receiving a Tax Refund for Taxpayers Living Abroad on IRS.gov.
IR-2021-235, November 23, 2021
WASHINGTON — The Internal Revenue Service this week launched a new Spanish-language version of the Child Tax Credit Update Portal (CTC-UP). This tool is designed to help families quickly and easily make changes to the monthly Child Tax Credit payments they are receiving from the IRS.
Families who are already receiving monthly payments use the CTC-UP to update their accounts. Now, all the features that have only been available in English are also available in Spanish. Updates made by 11:59 p.m. Eastern Time on November 29 will be reflected in the last monthly payment for 2021, scheduled for Deember 15.
Under the American Rescue Plan, most eligible families began receiving monthly payments starting in July. For these families, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. Payments are based on returns filed for 2019 or 2020, including those who registered online with the IRS.
Available only on IRS.gov, CTC-UP allows families to verify their eligibility for the payments and then, if they choose to:
Switch from receiving a paper check to direct deposit;
Change the account where their payment is direct deposited;
Update their mailing address;
Stop monthly payments and
Reflect significant changes in their income that could potentially raise or lower their monthly payments.
Be sure to make any changes by 11:59 p.m. ET on November 29. To access the portal, visit IRS.gov/childtaxcredit2021.
Families are typically receiving half of their total CTC in advance monthly payments during 2021. They can claim the rest of the credit when they file their 2021 federal income tax return next year. To help them do that, early in 2022, families will receive Letter 6419 documenting any advance payments issued to them during 2021 and the number of qualifying children used to calculate the advance payments.
Non-filers can get lump-sum next year; community partners can help
The IRS encourages partners and community groups to share information and use available online tools to help non-filers, low-income families and other underserved groups learn about the expanded Child Tax Credit. While it's now too late to sign up for advance payments of the CTC during 2021, it's not too late for eligible families to get the full benefit of the credit.
To do that, any eligible family who missed out on this year's monthly payments can still get a lump-sum payment by filing a 2021 federal income tax return next year. This includes families who don't normally need to file a return with the IRS.
Links to online tools, answers to frequently asked questions and other helpful resources are available on the IRS' special advance CTC 2021 page.
IR-2021-234, November 23, 2021
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning January 1, 2022. The rates will be:
3% for overpayments (two (2) percent in the case of a corporation),
0.5% for the portion of a corporate overpayment exceeding $10,000,
3% for underpayments, and
5% for large corporate underpayments. 
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during October 2021 to take effect November 1, 2021, based on daily compounding.
Revenue Ruling 2021-24PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2021-50, dated December 13, 2021.
IR-2021-231, November 17, 2021
WASHINGTON — The Internal Revenue Service today provided answers regarding Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs.
The answers are in FAQs (FS-2021-16) and detail the tax consequences for individual recipients and the reporting requirements for the states and local governments and employers, as applicable.
Some SLFR Fund recipients may have to report certain payments as income and may owe tax depending on the purpose of the payment. Today's FAQs also provide answers regarding payments used to assist with childcare or other basic needs.
States and local government administrators will find answers regarding their filing requirements, including when Forms 1099 need to be filed.
These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.
More information about reliance is available.
IRS-FAQ
IR-2021-228, November 17, 2021
WASHINGTON — The Internal Revenue Service today announced the launch of an improved identity verification and sign-in process that enables more people to securely access and use IRS online tools and applications.
Taxpayers using the new mobile-friendly verification procedure can gain entry to existing IRS online services such as the:
Child Tax Credit Update Portal,
Online Account,
Get Transcript Online,
Get an Identity Protection PIN (IP PIN) and
Online Payment Agreement.
Additional IRS applications will transition to the new method over the next year.
"Identity verification is critical to protect taxpayers and their information. The IRS has been working hard to make improvements in this area, and this new verification process is designed to make IRS online applications as secure as possible for people," said IRS Commissioner Chuck Rettig. "To help taxpayers and the tax community, we are improving the accessibility of online tools that help families manage their Child Tax Credit, check on their IRS accounts and securely perform other routine tasks online."
The new process can reach more people through the expanded use of identity documents and increased help desk assistance for taxpayers who encounter a problem when attempting to verify their identity online. Developed under the Secure Access Digital Identity initiative (SADI), the new process complies with a federal mandate.
To provide verification services, the IRS is using ID.me, a trusted technology provider. The new process is one more step the IRS is taking to ensure that taxpayer information is provided only to the person who legally has a right to the data.
The IRS also integrated this new account-creation process into some applications used by tax professionals, including those used to request powers of attorney or tax information authorizations online using Tax Pro Account or to submit Forms 2848 and 8821 online.
Accessing IRS tools
When accessing the tools listed above, taxpayers will be asked to sign in with an ID.me account. People who already have IRS usernames may continue to use their credentials from the old system to sign-in until summer 2022, but are prompted to create an ID.me account as soon as possible. Anyone with an existing ID.me account from the Child Tax Credit Update Portal, or from another government agency, can sign in with their existing credentials.
To verify their identity with ID.me, taxpayers need to provide a photo of an identity document such as a driver's license, state ID or passport. They'll also need to take a selfie with a smartphone or a computer with a webcam. Once their identity has been verified, they can securely access IRS online services.
Taxpayers who need help verifying their identity or submitting a support ticket can visit the ID.me IRS Help Site.
IR-2021-227, November 17, 2021
WASHINGTON — The Internal Revenue Service Advisory Council (IRSAC) today issued its annual report for 2021PDF, including recommendations to the IRS on new and continuing issues in tax administration.
The IRSAC is a federal advisory committee that provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members offer constructive observations regarding current or proposed IRS policies, programs and procedures.
The 2021 Public Report includes recommendations on 24 issues, which cover a broad range of topics including:
Adequate funding for the IRS
Implementation of Section 1302 of the Taxpayer First Act
Independent Office of Appeals
Reduction in electronic filing threshold for information return filers
Revisions to Circular 230
Postponing certain deadlines under Rev. Proc. 2018-58
Digital assets
Continuation of Rev. Proc. 94-69
The Compliance Effort Around Abusive Promoters and Preparers
Online IRS Guidance for Federal, State, and Local Governments
Improving the Taxpayer Experience with the Taxpayer Digital Communication
The IRSAC is administered under the Federal Advisory Committee Act by the Office of National Public Liaison, part of IRS Communications and Liaison, and draws its members from the taxpaying public, the tax professional community, representatives of the low-income community, small and large businesses, tax-exempt and government entities, the payroll industry and academia. Five subgroups report to the parent IRSAC:
Information Reporting,
Large Business & International,
Small Business/Self-Employed,
Tax Exempt/Government Entities and
Wage & Investment.
Commissioner Chuck Rettig and IRS executives thanked members of the council whose terms end this year:
Alexandra Cruz – Cruz served as Chair of the Information Reporting Subgroup
Ben Deneka – Deneka served as Chair of the IRSAC
Deborah Fox – Fox served on the Information Reporting Subgroup
April Goff – Goff served as Chair of the Tax Exempt/Government Entities Subgroup
Antonio Gonzalez – Gonzalez served on the Wage & Investment Subgroup
Martin Rule – Rule served on the Wage & Investment Subgroup
Dan Welytok – Welytok served on the Tax Exempt/Government Entities Subgroup
Mary Jo Werner – Werner served on the Small Business/Self-Employed Subgroup
Charles Yovino – Yovino served on the Tax Exempt/Government Entities Subgroup
The full 2021 IRSAC Public ReportPDF is available at IRS.gov.