etrent17/irs-articles huggingface dataset:
IR-2017-192, Nov. 22, 2017
WASHINGTON — Small businesses across the country are preparing for their special day -- Small Business Saturday – taking place on Nov. 25. The Internal Revenue Service wants new small business owners, including those involved in the sharing economy, to know that IRS.gov has an online resource center to help them learn all they need to know about the tax implications of running a small business. The Small Business and Self-Employed Tax Center offers a variety of useful tools that small business owners can access to prepare, file and pay taxes.
The Center is a virtual one-stop tax shop with an A to Z index that gives answers for most business-related tax questions. It includes the Virtual Workshop, an educational video series that walks small business owners step-by-step through the basics. New owners can learn the ins and outs of their taxes at their own pace with other educational tools and products linked from the page. One of the Center’s newest features is the Sharing Economy Tax Center for those who use various online platforms to rent rooms, provide rides and offer other goods and services. Those involved in the Sharing Economy may visit the Pay as You Go, So You Don’t Owe page to learn more about ways to avoid paying the Estimated Tax Penalty.
Getting an Employer Identification Number (EIN) is often the first step for new small businesses, and the Center’s page makes it easy. There are links to the downloadable tax calendar and a variety of videos. Figuring out what is the best form of business entity to establish is easier with the selecting a business structure section. It explains the tax implications of  setting up a Sole Proprietorship, Partnership, Corporation, S Corporation or a Limited Liability Company (LLC) .
The Center features relevant tax forms and instructions for small businesses. It serves as a resource on how to handle employment taxes, if employees are part of a business, or figuring out self-employment taxes for the sole proprietor. The section on filing and paying business taxes details which IRS forms to use for what sort of business entity and when to file.
The resources on Small Business and Self-Employed Tax Center are not just for new small businesses but can be used for every stage of a small business lifecycle; from starting up and operating a business to selling or closing one. In addition, the page has information on topics like recordkeeping, types of retirement plans and the Affordable Care Act.
Additional IRS Resources:
Checklist for Starting a Business
Small Business Publications
Reporting Payments to Independent Contractors
Estimated Taxes
Electronic Filing Options for Business and Self-Employed Taxpayers
Tax Help in Spanish and Other Languages
IR-2017-189, Nov. 16, 2017
WASHINGTON — The Internal Revenue Service today reminded employers and other businesses of the Jan. 31 filing deadline that now applies to filing wage statements and independent contractor forms with the government.
The Protecting Americans from Tax Hikes (PATH) Act includes a requirement for employers to file their copies of Form W-2 and Form W-3 with the Social Security Administration by Jan. 31. The Jan. 31 deadline also applies to certain Forms 1099-MISC filed with IRS to report non-employee compensation to independent contractors. Such payments are reported in box 7 of this form.
This deadline makes it easier for the IRS to verify income that individuals report on their tax returns and helps prevent fraud. Failure to file these forms correctly and timely may result in penalties. As always, the IRS urges employers and other businesses to take advantage of the accuracy, speed and convenience of filing these forms electronically.
Hints to help filers get ready
Employers should verify employees’ information. This includes names, addresses, Social Security or individual taxpayer identification numbers. They should also ensure their company’s account information is current and active with the Social Security Administration before January. If paper Forms W-2 are needed, they should be ordered early.
An extension of time to file Forms W-2 is no longer automatic. The IRS will only grant extensions for very specific reasons. Details can be found on the instructions for Form 8809PDF.
For more information, read the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.
IR-2017-188, Nov. 15, 2017
WASHINGTON — The Internal Revenue Service Advisory Council (IRSAC) today issued its annual report for 2017, including numerous recommendations to the IRS on new and continuing issues in tax administration.
Report recommendations cover numerous topics including:
Adequate Funding for the IRS
W-2 Verification Codes
The Private Debt Collection Program
The Large Business & International Examination Process
Establishment of Minimum Standards of Competence for All Tax Practitioners and Tax Return Preparers, and
Third-Party Application Programming Interfaces
The IRSAC is a federal advisory committee that reports to the IRS Commissioner. IRSAC provides an organized public forum for the discussion of relevant tax administration issues. Members of the committee convey public perception and offer constructive observations regarding current and proposed IRS policies, programs as well as procedures.
The IRS today also thanked 10 IRSAC members whose terms end this year:
Timothy McCormally, IRSAC Chair – KPMG, Washington, District of Columbia
Patricia Atwood – Timely Antique Appraisals, LLC, Rockford, Ill.
Eunkyong Choi – New York City Taxpayer Advocate, New York, N.Y.
Thomas Cullinan – Eversheds Sutherland, Atlanta, Ga.
Estarre Fischer – Moss Adams, Seattle, Wash.
Neil Fishman – Fishman Associates, CPAs, PA, Boynton Beach, Fla.
John McDermott – Taylor, Porter, Brooks & Philips, LLP, Baton Rouge, La.
Walter Pagano – EisnerAmper LLP, New York, N.Y.
Donald Read – Law Office of Donald H. Read, Berkeley, Calif.
Kevin Richards – Illinois Department of Revenue, Springfield, Ill.
Administered by the IRS Office of National Public Liaison, IRSAC draws its members from the taxpaying public, the tax professional community, small and large businesses and the payroll industry.
The full 2017 IRSAC Public Report is available on IRS.gov.
IR-2017-187, Nov. 15, 2017
WASHINGTON ― The Internal Revenue Service today reminded eligible employees that now is the time to begin planning to take full advantage of their employer’s health flexible spending arrangement (FSA) during 2018.
FSAs provide employees a way to use tax-free dollars to pay medical expenses not covered by other health plans. Because eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, many employers this fall are offering their employees the option to participate during the 2018 plan year.
Interested employees wishing to contribute during the new year must make this choice again for 2018, even if they contributed in 2017. Self-employed individuals are not eligible.
An employee who chooses to participate can contribute up to $2,650 during the 2018 plan year. That’s a $50 increase over 2017. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. If the plan allows, the employer may also contribute to an employee’s FSA.
Throughout the year, employees can then use funds to pay qualified medical expenses not covered by their health plan, including co-pays, deductibles and a variety of medical products and services ranging from dental and vision care to eyeglasses and hearing aids. Interested employees should check with their employer for details on eligible expenses and claim procedures.
Under the use-or-lose provision, participating employees often must incur eligible expenses by the end of the plan year, or forfeit any unspent amounts. But under a special rule, employers may, if they choose, offer participating employees more time through either the carryover option or the grace period option.
Under the carryover option, an employee can carry over up to $500 of unused funds to the following plan year — for example, an employee with $500 of unspent funds at the end of 2018 would still have those funds available to use in 2019. Under the grace period option, an employee has until two and a half months after the end of the plan year to incur eligible expenses — for example, March 15, 2019, for a plan year ending on Dec. 31, 2018. Employers can offer either option, but not both, or none at all.
Employers are not required to offer FSAs. Accordingly, interested employees should check with their employer to see if they offer an FSA. More information about FSAs can be found in Publication 969, available on IRS.gov.
Note to Editor: This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season.
IR-2017-186, Nov. 14, 2017
WASHINGTON — The Internal Revenue Service reminds low- and moderate-income workers to plan now to earn a credit on their 2017 tax return. A special tax break can help people with modest incomes save for retirement. It’s called the Saver’s Credit and it could mean up to a 50 percent credit for the first $2,000 a taxpayer contributes to a retirement plan.
Also known as the Retirement Savings Contributions Credit, the Saver’s Credit helps offset part of the amount workers voluntarily contribute to a traditional or Roth IRA, a 401(k) or 403 (b) plan, and similar workplace retirement programs.
Taxpayers with an IRA have until April 17, 2018, (the due date of their 2017 tax return) to contribute to the plan and still have it qualify for 2017. However, contributions (elective deferrals) to an employer-sponsored plan must be made by the end of the year to qualify for the credit. Employees who are unable to set aside money for this year may want to schedule their 2018 contributions soon so their employer can begin withholding in January.
The Saver’s Credit can be claimed by:
Married couples filing jointly with incomes up to $62,000 in 2017 or $63,000 in 2018
Heads of Household with incomes up to $46,500 in 2017 or $47,250 for 2018
Singles and married individuals filing separately with incomes up to $31,000 in 2017 or $31,500 in 2018
To qualify for the credit, a person must be:
Age 18 or older
Not a full-time student
Not claimed as a dependent on another person’s tax return
Like other tax credits, the Saver’s Credit can increase a taxpayer’s refund or reduce the amount of tax owed. Though the maximum Saver’s Credit is $1,000 ($2,000 for married couples), the IRS cautioned that it is often much less and may be zero for some taxpayers.
The amount of the credit is based on filing status, income, overall tax liability and the amount contributed to a qualifying retirement plan. It may also be impacted by other credits and deductions or reduced by any recent distributions from a retirement plan.
To claim the Saver’s Credit, taxpayers must complete Form 8880 and attach it to their tax return. Form 8880 cannot be used with Form 1040EZ.
In tax year 2015, the most recent year for which complete figures are available, Saver’s Credits totaling nearly $1.4 billion were claimed on more than 8.1 million individual income tax returns.
The Saver’s Credit can also add to other tax benefits available to people who contribute to their retirement; for example, most workers can also deduct contributions to a traditional IRA.
IR-2017-212, Dec. 29, 2017
WASHINGTON -- The Treasury Department and the Internal Revenue Service today issued Notice 2018-07, which provides guidance for computing the “transition tax” under recent tax legislation enacted on Dec. 22, 2017.
In general, newly enacted section 965 of the Internal Revenue Code imposes a transition tax on untaxed foreign earnings of foreign subsidiaries of U.S. companies by deeming those earnings to be repatriated. Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5 percent rate, and the remaining earnings are taxed at an 8 percent rate. The transition tax generally may be paid in installments over an eight-year period.
Notice 2018-07PDF describes regulations that the Treasury Department and the IRS intend to issue, including rules for determining the amount of cash and cash equivalents for purposes of applying the 15.5 percent rate and rules for determining the amount of foreign earnings subject to the transition tax. These rules will assist taxpayers by providing certain additional information needed for computing their transition tax.
Notice 2018-07PDF requests comments on the rules described in the notice and also requests comments on what additional guidance should be issued to assist taxpayers in computing the transition tax. The Treasury Department and the IRS expect to issue additional guidance in the future.
Notice 2018-07PDF will be published in IRB 2018-04 on Jan. 22, 2018. The Treasury media contact for this matter is Marisol Garibay, Deputy Assistant Secretary for Public Affairs, 202-622-6490.
IR-2017-210, Dec. 27, 2017
WASHINGTON — The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.
The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018.  A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.  State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.
The following examples illustrate these points.
Example 1: Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018.  On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018.   Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return.
Example 2: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019.  However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year.  Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.
The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills. Time remains to make charitable donations. See IR-17-191 for more information. The deadline to make contributions for individual retirement accounts - which can be used by some taxpayers on 2017 tax returns - is the April 2018 tax deadline.
IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.
IR-2017-209, Dec. 22, 2017
WASHINGTON ― The IRS announced today that it has extended the 2018 due date for certain entities to provide 2017 health coverage information forms to individuals.
Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 2, 2018, to provide Forms 1095-B or 1095-C to individuals, which is a 30-day extension from the original due date of Jan. 31.
Insurers, self-insuring employers, other coverage providers, and applicable large employers must furnish statements to employees or covered individuals regarding the health care coverage offered to them. Individuals may use this information to determine whether, for each month of the calendar year, they may claim the premium tax credit on their individual income tax returns.
This 30-day extension is automatic. Employers and providers don’t have to request it. The due dates for filing 2017 information returns with the IRS are not extended. For 2018, the due dates to file information returns with the IRS are:
Feb. 28 for paper filers
April 2 for electronic filers
Because of these extensions, individuals may not receive their Forms 1095-B or 1095-C by the time they are ready to file their 2017 individual income tax return. While information on these forms may assist in preparing a return, the forms are not required to file. Taxpayers can prepare and file their returns using other information about their health coverage. They do not have to wait for Forms 1095-B or 1095-C to file.
More information is contained in Notice 2018-06PDF. Also visit www.irs.gov/aca for more.
IR-2017-208, December 20, 2017
WASHINGTON — The Internal Revenue Service today announced the release of the Criminal Investigation Division’s (CI) annual reportPDF, reflecting significant accomplishments and criminal enforcement actions taken in fiscal year 2017.
 
Focusing on employment tax, refund fraud, international tax enforcement, tax-related identity theft, public corruption, cybercrime, terrorist financing and money laundering, CI initiated 3,019 cases in FY 2017.  The number of cases initiated is directly tied to the number of special agents that CI has.
“We have the same number of special agents—around 2,200—as we did 50 years ago,” said Don Fort, Chief, CI.  “Financial crime has not diminished during that time– in fact, it has proliferated in the age of the Internet, international financial crimes and virtual currency. Despite these challenges, we continue to do amazing work, investigating some of the most complicated cases in the agency’s history.  Criminals would be foolish to mistake declining resources for a lack of commitment in this area.”
The annual report is released each year for the purpose of highlighting the agency’s successes while providing a historical snapshot of the make-up and priorities of the organization. The very first Chief of IRS CI, Elmer Lincoln Irey, served from 1919 to 1946 and envisioned releasing such a document each year to showcase the agency’s investigative work.
CI is the only federal law enforcement agency with jurisdiction over federal tax crimes. This year, CI again boasted a conviction rate rivaling all federal law enforcement at 91.5% while spending more than 72% of their investigative time working tax cases. That conviction rate speaks to the thoroughness of the investigations and CI is routinely called upon by prosecutors across the country to lead financial investigations on a wide variety of financial crimes including international tax evasion, identity theft, terrorist financing and transnational organized crime.
CI investigates potential criminal violations of the Internal Revenue Code and related financial crimes in a manner to foster confidence in the tax system and compliance with the law. The interactive report summarizes a wide variety of CI activity throughout the fiscal year and includes case examples from each field office on a wide range of financial crimes.
“Since taking over as the Chief of CI this summer, I could not be prouder to lead the men and women of this organization,” said Fort. As financial crimes—and the way we investigate them—continue to evolve, CI continues to set the standard for financial investigations worldwide.”
IR-2017-207, Dec. 20, 2017
WASHINGTON — The Internal Revenue Service is reminding federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTIN) that expire Dec. 31, 2017.
Anyone who prepares or helps prepare any federal tax return, or claim for refund for compensation, must have a valid 2018 PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared. Failure to have and use a valid PTIN may result in penalties.
For those who have a 2017 PTIN, the renewal process takes a few moments online. Preparers can get started at www.irs.gov/ptin. If registering for the first time, the PTIN application may also be completed online. There is no fee for obtaining or renewing a PTIN. Paper applications and renewals take four to six weeks to process.
Enrolled agents, regardless of whether they prepare returns, must also have a PTIN to maintain their status.
Annual Filing Season Program Participation
The IRS is also reminding tax preparers who have taken courses to increase their knowledge and improve their filing season readiness that doing so may have made them eligible for the IRS Annual Filing Season Program.
This voluntary program is for tax return preparers with 18 hours of continuing education (CE) in basic tax filing issues and updates, ethics, as well as other federal tax law courses. This week, the IRS is sending emails to about 5,000 tax return preparers who only need a few more CE courses to participate for 2018. However, they only have until Dec. 31 to get the classes they need. An easy way to earn continuing education credits is through seminars filmed at the 2017 IRS Nationwide Tax Forums, which are available at www.irstaxforumsonline.com. More information on the types and amounts of CE required for the program is available online.
Additional IRS Resources:
Tax Professionals
Continuing Education Resources
IR-2017- 206, Dec. 19, 2017
WASHINGTON — The Internal Revenue Service said today that it expects more than 90 percent of all 2017 individual tax returns to be prepared using tax software. The majority of those will be e-filed. Since 1986 when the IRS started accepting electronically filed tax returns, more than 1.8 billion have been securely processed.
The IRS urges taxpayers to wait until they have all the forms and documents needed before preparing a tax return. Most documents arrive before the end of January. This includes Forms W-2 from employers and Forms 1099 from banks and other payers. Those claiming the Premium Tax Credit need Form 1095-A from the Marketplace. Not having all required documents may cause a return to have an error that delays processing and therefore, delays the refund.
Taxpayers have options to prepare and e-file a return:
IRS Free File, free brand-name software for taxpayers with incomes below $66,000
Commercial tax preparation software,
Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs, sites with IRS-certified volunteers, or
Tax professionals. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov.
The IRS2Go Mobile App can help find free tax preparation assistance, check a refund status and more.
Taxpayers should keep copies of their most recent tax returns. Taxpayers using a software product for the first time may need their Adjusted Gross Income amount from their prior-year return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
Taxpayers concerned about identify theft should know the IRS continues to work with state tax authorities and the tax industry to increase security protections as part of the Security Summit‎. Summit efforts have led to a nearly 50 percent decline in the number of new reports of stolen identities on federal tax returns. While working to stop fraudulent refunds, the IRS remains focused on releasing legitimate refunds as quickly as possible in 2018.
Faster Refunds with Direct Deposit
Choosing e-file remains the safest way to file an accurate income tax return and combining it with direct deposit is the fastest way to receive a refund. In 2017, more than 88 million tax refunds worth over $260 billion were directly deposited into taxpayer’s bank accounts.
In 2018, the IRS again expects to issue more than nine out of 10 refunds in less than 21 days. However, by law the IRS cannot issue refunds if the return claims the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. The change applies to the entire refund and helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent tax fraud.
The IRS has a special page on IRS.gov with steps to take now for the 2018 tax filing season.
IR-2017- 205, Dec. 14, 2017
WASHINGTON — The Internal Revenue Service today issued revised guidance extending relief for certain partnerships, real estate mortgage investment conduits (REMICs), and other entities that did not file the required returns by the new due date for tax years beginning in 2016.
The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (Surface Transportation Act) changed the date by which a partnership, REMIC, or other entity must file its annual return.  For calendar year filers, the due date for filing the annual return or request for an extension changed from April 15 (April 18 in 2017) to March 15.  
Many entities filed their returns or their extension request for tax year 2016 by the April deadline, and if not for the Surface Transportation Act, these returns and requests for extension of time to file would have been on time.
Notice 2017-47PDF provided relief from the penalty for failure to timely file for partnerships and REMICs that filed by the date that would have been timely prior to amendment by the Surface Transportation Act.
Notice 2017-71PDF amplifies, clarifies, and supersedes Notice 2017-47 by providing that additional acts, such as the making of various elections, of partnerships, REMICs, and certain other entities made by the date that would have been timely prior to amendment by the Surface Transportation Act will be treated as timely.  An earlier release of Notice 2017-71 provided this relief only to taxpayers whose taxable years began and ended in 2016, but today’s revised guidance also applies to fiscal-year filers whose taxable years began in 2016 but did not end until 2017.
Notice 2017-71 will be published in IRB 2017-51 on December 18, 2017.
IR-2017-204, Dec. 14, 2017
WASHINGTON ― The Internal Revenue Service today issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
14 cents per mile driven in service of charitable organizations.
The business mileage rate and the medical and moving expense rates each increased 1 cent per mile from the rates for 2017. The charitable rate is set by statute and remains unchanged.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. These and other requirements are described in Rev. Proc. 2010-51PDF.
Notice 2018-03PDF, posted today on IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
IR-2017-203, Dec. 13, 2017
WASHINGTON — The Internal Revenue Service today warned taxpayers and tax professionals of a new email scam targeting Hotmail users that is being used to steal personal and financial information.
The phishing email subject line reads: “Internal Revenue Service Email No. XXXX | We’re processing your request soon | TXXXXXX-XXXXXXXX”. The email leads taxpayers to sign in to a fake Microsoft page and then asks for personal and financial information.
The IRS has received over 900 complaints about this new phishing scheme that seems to exclusively target Hotmail users. The suspect websites associated with this scam have been shut down, but taxpayers should be on the lookout for similar schemes.
Individuals who receive unsolicited emails claiming to be from the IRS should forward it to phishing@irs.gov and then delete it. It is important to keep in mind the IRS generally does not initiate contact with taxpayers by email to request personal or financial information. For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov.
The IRS reminds tax professionals to be aware of phishing emails, free offers and other common tricks by scammers. Tax professionals who have data breaches should contact the IRS immediately through their Stakeholder Liaison. See Data Theft Information for Tax Professionals.
IR-2017-202, Dec. 13, 2017
WASHINGTON – As part of a wider effort to help victims of natural disasters, the Internal Revenue Service today issued guidance providing safe harbor methods that individuals may use in determining the amount of their casualty and theft losses for their homes and personal belongings, including losses from recent hurricanes.
Revenue Procedure 2018-08PDF provides safe harbor methods that individual taxpayers may use in determining the amount of their casualty and theft losses for their homes and personal belongings. Four of the safe harbor methods may be used for any qualifying casualty or theft loss, and three are specifically applicable only to losses occurring as a result of a Federally declared disaster.
For instance, one of the safe harbor methods allows a homeowner to determine the amount of loss, up to $20,000, by obtaining a contractor estimate of repair costs. Another safe harbor method allows a homeowner to determine the amount of loss resulting from a Federally declared disaster using the repair costs on a signed contract prepared by a licensed contractor. The guidance also provides a handy table for determining the value of personal belongings damaged, destroyed or stolen as a result of a Federally declared disaster.
Revenue Procedure 2018-09PDF provides a safe harbor method under which individuals may use one or more cost indexes to determine the amount of loss to their homes as a result of Hurricane and Tropical Storm Harvey, Hurricane Irma and Hurricane Maria (2017 Hurricanes). The cost indexes provide tables with cost per square foot for Texas, Louisiana, Florida, Georgia, South Carolina, Puerto Rico and the U.S. Virgin Islands (2017 Disaster Area).
The safe harbor methods detailed in Revenue Procedure 2018-08 are effective on Dec. 13, 2017; the safe harbor method detailed in Revenue Procedure 2018-09 is effective for losses that are attributable to the 2017 Hurricanes and that arose in the 2017 Disaster Area after August 22, 2017. IRS Publication 547 provides more information on casualty and theft losses. If people want to explore claiming these losses by filing an original or amended return for Tax Year 2016, the IRS has also issued a new revision of the 2016 Form 4684PDF and 2016 Instructions for Form 4684 PDF. The 2017 revision of Form 4684, its instructions and any additional information will be available before the start of the filing season at IRS.gov/form4684.
To help taxpayers navigate casualty loss issues, the IRS has created a special webpage: Tax Law Provisions for Disaster Areas, with additional information for disaster victims.
IR-2017-200, Dec. 5, 2017
WASHINGTON ― The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2018.  The rates will be: 
four (4) percent for overpayments [three (3) percent in the case of a corporation];
1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
four (4) percent for underpayments; and
six (6) percent for large corporate underpayments. 
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. 
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during Oct. 2017 to take effect Nov. 1, 2017, based on daily compounding.
Revenue Ruling 2017-25PDF, announcing the rates of interest, will appear in Internal Revenue Bulletin 2017-52, dated Dec. 26, 2017.
IR-2017-199, Dec. 5, 2017
WASHINGTON— The Internal Revenue Service reminds taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible. Failing to renew them by the end of the year will cause refund and processing delays in 2018.
The IRS mailed letters over the summer to more than 1 million taxpayers  whose ITINs are set to expire at the end of the year – those with middle digits 70, 71, 72 or 80. In addition, any ITIN that has not been used on a federal tax return at least once in the last three consecutive years will also expire at the end of the year. Affected taxpayers who expect to file a tax return in 2018 must submit a renewal application by the deadline.
Who Should Renew an ITIN?
Taxpayers with ITINs set to expire at the end of the year and who need to file a tax return in 2018 must submit a renewal application. Others do not need to take any action.
ITINs with middle digits 70, 71, 72, or 80 (For example: 9NN-70-NNNN) need to be renewed if the taxpayer will have a filing requirement in 2018.
Taxpayers whose ITINs expired due to lack of use should only renew their ITIN if they will have a filing requirement in 2018.
Taxpayers who are eligible for, or who have, an SSN should not renew their ITIN, but should notify IRS both of their SSN and previous ITIN, so that their accounts can be merged.
Taxpayers whose ITINs have middle digits 78 or 79 that had already expired and were never renewed should renew their ITIN if they will have a filing requirement in 2018.
How to Renew an ITIN
To renew an ITIN, taxpayers must complete a Form W-7 and submit all required documentation. Although a Form W-7 is usually attached to the tax return, a taxpayer is not required to attach a federal tax return to their ITIN renewal application.
There are three ways to submit the W-7 application package:
Mail the Form W-7, along with original identification documents or copies certified by the issuing agency, to the IRS address listed on the Form W-7 instructionsPDF. The IRS will review the identification documents and return them within 60 days.
Taxpayers have the option to work with Certified Acceptance Agents (CAAs) authorized by the IRS to help them apply for an ITIN. CAAs can certify all identification documents for primary and secondary taxpayers and certify that an ITIN application is correct before submitting it to the IRS for processing. A CAA can also certify passports and birth certificates for dependents. This saves taxpayers from mailing original documents to the IRS.
In advance, taxpayers can call and make an appointment at a designated IRS Taxpayer Assistance Center instead of mailing original identification documents to the IRS. When making an appointment, be sure to indicate that this involves an ITIN renewal application.
The ITIN renewal requirement is part of a series of provisions established by the Protecting Americans from Tax Hikes (PATH) Act enacted by Congress in December 2015. These provisions are outlined in IRS Notice 2016-48PDF.
The IRS has a special page on IRS.gov with steps to take now for the 2018 tax filing season.
Updated January 19, 2016 - Additional video links added.
IRS YouTube Security Summit Video Series:
Video #1: Security Summit Identity Theft Tips Overview: English (obsolete)
Video #2: What Changes Can Taxpayers Expect this Year?: English
Video #3: Check your Credit Report Annually: English (obsolete)
Video #4: Secure Your Tax Return: English (obsolete)
Video #5: Be Careful When Using Wi-Fi: English (obsolete)
Video #6: Update Your Password Regularly: English (obsolete)
Taxes.Security.Together.: English
IR-2016-04, January 11, 2016 
WASHINGTON — In coordination with the state revenue departments and the tax industry, the Internal Revenue Service today released the first in a series of YouTube video tax tips designed to provide people critical information to help protect their tax and financial data.
The videos, part of the continuing Security Summit effort combating identity theft and refund fraud, are part of an ongoing effort to educate taxpayers and provide them tools to stay safe online.
The first of the Security Awareness YouTube videos includes tips from four state officials reminding taxpayers to check online accounts for problems, look for secure sites when shopping online and be careful to avoid phishing scams. The videos will be released daily over the next week.
“These are important reminders for all of us to protect ourselves online,” said IRS Commissioner John Koskinen. “These videos reflect the continuing collaborative work between the states, the tax industry and the IRS to protect taxpayers. We are jointly implementing major new procedures to protect taxpayers, but people can help by taking some precautionary steps to help us work to prevent identity theft.”
The six videos feature the heads of several state revenue departments from across the country, including:
Alabama: Julie Magee, Alabama Revenue Commissioner.
Connecticut: Kevin Sullivan, Commissioner of the Connecticut Department of Revenue Services.
New York: Nonie Manion, Executive Deputy Commissioner of the New York State Department of Taxation and Finance.
South Carolina: Rick Reames III, Director of the South Carolina Department of Revenue.
Vermont: Mary Peterson, Vermont Commissioner of Taxes.
The “Taxes. Security. Together.” campaign — a joint effort announced late last year between the IRS, states and the private-sector tax industry — is designed to raise public awareness that even routine actions on the Internet and personal devices can affect the safety of financial and tax data. The education campaign will complement the expanded series of important new protections the IRS, states and tax industry are putting in place for the start of the 2016 filing season to address tax-related identity theft.
To learn about additional steps you can take to protect your personal and financial data, visit Taxes. Security. Together. or Identity Protection.
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Updated 1/25/2016 to include Monroe, Panola and Prentiss counties.
IR-2016-2, Jan. 7, 2016
WASHINGTON — Mississippi storm victims will have until May 16, 2016 to file their returns and pay any taxes due, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.
Following this week’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA), the IRS said that affected taxpayers in Benton, Coahoma,  Marshall, Quitman and Tippah counties will receive this and other special tax relief. Other locations in Mississippi and other states may be added in coming days, based on damage assessments by FEMA.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Dec. 23, 2015. As a result, affected individuals and businesses will have until May 16, 2016 to file their returns and pay any taxes due. This includes 2015 income tax returns normally due on April 18.  It also includes the Jan. 15 and April 18 deadlines for making quarterly estimated tax payments. A variety of business tax deadlines are also affected including the Feb. 1 and May 2 deadlines for quarterly payroll and excise tax returns and the special March 1 deadline for farmers and fishermen who choose to forgo making estimated tax payments.
In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Dec. 23 and before Jan. 7if the deposits are made by Jan. 7, 2016. Details on available relief can be found on the disaster relief page on IRS.gov.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.      
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred, or the return for the prior year. See Publication 547 for details.
The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.
IRS YouTube VideoIRS Tax Payment Options: English | ASL (Obsolete)
IR-2016-33, Feb. 26, 2016
WASHINGTON ― With next Tuesday’s tax deadline fast approaching for many farmers and fishermen, the Internal Revenue Service is reminding these and other individual filers that the new IRS Direct Pay tool offers taxpayers the fastest and easiest way to pay the taxes they owe.
Available at IRS.gov/directpay, this free online tool allows individuals to securely pay their income tax directly from checking or savings accounts without any fees or pre-registration. Last year, IRS Direct Pay received more than 6.3 million tax payments totaling more than $20 billion from individual taxpayers.
Direct Pay offers individual taxpayers an easy way to quickly pay the amount due on their return or tax bill, or make quarterly estimated tax payments without having to write a check, buy a stamp or find a mailbox. Payments can even be scheduled up to 30 days in advance.
Direct Pay is available 24 hours a day, seven days a week. Any taxpayer who uses the tool receives instant confirmation that their payment was submitted. More information about Direct Pay is available on IRS.gov.
Direct Pay cannot be used to pay the federal highway use tax, payroll taxes or other business taxes. Taxpayers who wish to e-pay their federal business taxes should enroll in the Electronic Federal Tax Payment System (EFTPS), or click on the Pay Your Tax Bill icon to check out other payment options.
Farmers and fishermen who chose to forgo making quarterly estimated tax payments for 2015 generally must file their 2015 federal return and pay any tax due by Tuesday, March 1, 2016.  
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IR-2016-30, Feb. 23, 2016                                                                            
WASHINGTON — The Internal Revenue Service’s Low Income Taxpayer Clinic (LITC) Program Office has issued its fourth annual program report. The new reportPDF describes how LITCs across the nation have assisted low income taxpayers and individuals who speak English as a second language (ESL) with free or low-cost representation in disputes with the IRS.
During 2014, LITCs represented 19,882 taxpayers in disputes with the IRS and provided consultation or advice to an additional 18,810 taxpayers. LITCs helped taxpayers secure more than $4.3 million in tax refunds and eliminate over $62 million in tax liabilities, penalties and interest.
Through outreach and education activities, LITCs also ensured individuals understood their rights as U.S. taxpayers. LITCs conducted 3,046 educational activities attended by 75,706 persons. Overall, almost 1,800 volunteers contributed to the success of the LITCs.
Here is one example of how LITCs can assist with tax issues: A local Veterans Affairs office referred a taxpayer to an LITC. The taxpayer had lost his business and home while struggling with post-traumatic stress syndrome.
The LITC reconstructed his financial records, filed delinquent tax returns and successfully negotiated an offer in compromise with the IRS. Upon completion of the case, the taxpayer revealed to the LITC attorney that he had been severely depressed over the tax issues and he believes the LITC helped him retake control of his life.
The full reportPDF includes an overview and history of the LITC program, discusses the representation, education and advocacy services that LITCs provide. It also  illustrates the results that LITCs achieve on behalf of their clients.
Background information
The IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain an LITC. The grant program is administered by the Office of the Taxpayer Advocate at the IRS, led by National Taxpayer Advocate Nina E. Olson. Although LITCs receive partial funding from the IRS, LITCs, their employees and volunteers operate independently from the IRS. 
LITCs are generally operated by:
Clinical programs at accredited law, business, or accounting schools.
Legal aid or legal services organizations.
Other tax-exempt organizations that assist low income or ESL individuals and families.
View the Low Income Taxpayer Clinic Program Report online now to learn more.
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