etrent17/irs-articles huggingface dataset:
IR-2020-216, September 21, 2020
WASHINGTON — The Treasury Department and the Internal Revenue Service today released the last set of final regulations implementing the 100% additional first year depreciation deduction that allows businesses to write off the cost of most depreciable business assets in the year they are placed in service by the business.
The 100% additional first year depreciation deduction was created in 2017 by the Tax Cuts and Jobs Act and generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.
The deduction applies to qualifying property (including used property) acquired and placed in service after September 27, 2017. The final regulations provide clarifying guidance on the requirements that must be met for property to qualify for the deduction, including used property.
Additionally, the final regulations provide rules for consolidated groups and rules for components acquired or self-constructed after September 27, 2017, for larger self-constructed property on which production began before September 28, 2017.
For details on claiming the deduction, see the final regulations and the instructions to Form 4562, Depreciation and Amortization (Including Information on Listed Property).
In addition, the Treasury Department and the Internal Revenue Service plan to issue procedural guidance for taxpayers to opt to apply the final regulations in prior taxable years or to rely on the proposed regulations issued in September 2019.
For more information about this and other TCJA provisions, visit IRS.gov/taxreform.
IR-2020-212, September 16, 2020
WASHINGTON — The Internal Revenue Service continues to look for ways to assist taxpayers affected by the COVID-19 pandemic. As part of that effort, the IRS reminds taxpayers and tax practitioners of the procedures for requesting expedited handling of requests for letter rulings under Rev. Proc. 2020-1, 2020-1 I.R.B. 1 (January 2, 2020).
As set forth in Rev. Proc. 2020-1, the IRS ordinarily processes requests for letter rulings in the order that they were received. A taxpayer with a compelling need to have a request processed more quickly may request expedited handling. The request for expedited handling must be made in writing, preferably in a separate letter submitted with the letter ruling request. Requests for expedited handling are granted at the discretion of the IRS and typically involve a factor outside of the taxpayer's control that creates a real business need to obtain a letter ruling before a certain date in order to avoid serious business consequences. Requests for expedited handling should be submitted as promptly as possible after the taxpayer has become aware of the deadline or compelling business need.
The COVID-19 pandemic is a factor outside of the taxpayer's control that can support a request for expedited handling under Rev. Proc. 2020-1. As a result, and consistent with Executive Order 13924 of May 19, 2020, taxpayers are encouraged to seek expedited handling if they face a compelling need related to COVID-19. Such requests will be handled as provided in Rev. Proc. 2020-1.
More information on the procedures for requesting expedited handling is provided in Section 7.02(4) of Rev. Proc. 2020-1. In addition, Rev. Proc. 2020-29, 2020-21 I.R.B. 859 (May 18, 2020), sets forth procedures for the electronic submission of letter ruling requests.
IR-2020-211, September 15, 2020
WASHINGTON — The IRS has revised guidance for examiners in the Large Business & International division (LB&I) reviewing the amounts claimed for the tax credit for increasing research activities.
The guidance to auditors issued today modifies a directive issued in 2017. The credit for increasing research activities (Internal Revenue Code § 41) enables taxpayers to receive a tax credit for qualified research activities (QREs).
Independently determining the correct amount of this research credit claimed by large corporate taxpayers can be resource intensive for those taxpayers and IRS examiners. This revised directive provides an efficient methodology for determining QREs for these taxpayers that meet the requirements of the updated directive.
The IRS will accept, as sufficient evidence of QREs, the Adjusted Accounting Standards Codification (ASC) 730 Financial Statement R&D for the Credit Year. Adjusted ASC 730 Financial Statement R&D is made up of the research and development costs currently expensed on a taxpayer's Certified Audited Financial Statements pursuant to ASC 730 for U.S. GAAP purposes and includes certain specified adjustments made to Financial Statement R&D.
This directive only applies to LB&I taxpayers with assets equal to or greater than $10 million who follow U.S. GAAP to prepare their Certified Audited Financial Statements showing the amount of currently expensed Financial Statement R&D either as 1) a separate line item on the income statement included in their Certified Audited Financial Statements, or 2) separately stated in a note to their Certified Audited Financial Statements. In addition, this revised directive does not apply to any taxpayer unless the taxpayer uses these same U.S. GAAP financial statements to reconcile book income to federal tax income on Schedule M-3.
This revised directive modifies the 2017 Directive by:
Refining definition of an eligible taxpayer,
Clarifying exam audit and elevated review process,
Expanding the LB&I Commissioner's discretion for determining taxpayer eligibility,
Identifying additional documentation requirements, and
Removing all ASC 350 Internal-Use software and website development costs.
Eligible taxpayers may choose to follow the terms of the updated directive on original returns timely filed (including extensions) for tax periods ending on or after July 31, 2020. At the beginning of an examination that includes the Research Credit, the audit team will verify whether the taxpayer followed the directive. For taxpayers choosing to follow the revised directive, the audit team will ensure the taxpayer complies with the eligibility requirements provided in the revised Directive.
Revised FAQs are available to further explain and clarify changes on the revised Directive.
The updated directive is not an official pronouncement of law, and cannot be used, cited or relied on as such. In addition, nothing in the directive should be construed as affecting the operation of any other provision of the Internal Revenue Code, Treasury Regulations or guidance thereunder.
IR-2020-210, September 15, 2020
WASHINGTON — The Internal Revenue Service today issued final regulations for taxpayers who claim the rehabilitation credit.
The Tax Cuts and Jobs Act (TJCA) amended the rehabilitation credit so that taxpayers now claim the rehabilitation credit over a five-year period. The TCJA amendments generally apply to a taxpayer's qualified rehabilitation expenditures paid or incurred after December 31, 2017.
Taxpayers, however, may claim the credit all in one year under pre-TCJA rules for projects that qualify under a transition rule. The transition rule allows taxpayers to use the prior law if the project meets these conditions:
The taxpayer owns or leases the building on January 1, 2018 and the entire period thereafter
The 24- or 60-month period selected for the substantial rehabilitation test begins by June 20, 2018
The final regulations require taxpayers to determine the rehabilitation credit amount in the year they place the building into service and allocate that amount ratably over the five-year period.
The final regulations also include a rule to coordinate the TCJA amendments with the special rules for the investment credit, of which the rehabilitation credit is part. Finally, the final regulations include examples illustrating how to apply the rules.
Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.
IR-2020-209, September 14, 2020
WASHINGTON — The final regulationsPDF for the business interest expense deduction limitation published in the Federal Register today. The final regulations vary slightly from the document released on IRS.gov on July 28, 2020.
The Treasury Department and the IRS released a version of the final regulations on the business interest expense deduction limitation on IRS.gov on July 28, 2020. The version released on IRS.gov contains a disclaimer that the document had been submitted to the Office of the Federal Register for publication, and notes that the version of the final regulations may vary slightly from the document published in the Federal Register.
The version of the final regulations published in the Federal Register contains minor editorial changes. In response to questions from taxpayers and practitioners, the final regulations published in the Federal Register clarify that taxpayers may rely on the final regulations for any taxable year beginning after December 31, 2017, provided that certain conditions are met.
The document published in the Federal Register is the official document.
For more information about this and other TCJA provisions, visit IRS.gov/taxreform.
IR-2020-207, September 10, 2020
WASHINGTON — The Internal Revenue Service today urged individuals who owe taxes but have not yet filed for 2019 to act now to avoid larger penalties that, by law, start after September 14.
The tax deadline was July 15 this year. Taxpayers who submitted an extension have until October 15 to file and do not face the failure to file penalty if they file their taxes by that deadline. But taxpayers need to remember that an extension to file is not an extension to pay. Any taxes they owed after the July 15 deadline are subject to the failure to pay penalty and interest.
Those taxpayers who didn't request an extension, and still owe taxes, face both the failure to file and the failure to pay penalties. They should file now and pay what they can before larger penalties take effect after September 14.
The penalty for not filing a federal tax return by the due date, or extended due date, is generally 5% of the unpaid tax for each month or part of a month that a tax return is late, up to 25% of the unpaid tax. However, if the return is more than 60 days late, a minimum penalty applies. If no return has been filed after 60 days, the minimum penalty that can be charged is $435 or 100% of the unpaid tax, whichever is less. This year, that important 60-day date occurs after Sept. 14. In addition to penalties, interest will also be charged on any tax not paid by the July 15 due date.
Remember, if a refund is due, no penalty is charged on the late return filed by a taxpayer.
IRS Free File is available on IRS.gov through October 15 to prepare and e-file a 2019 individual return.
Penalty relief may be available
Taxpayers who have not been assessed any penalties for the past three years often qualify to have penalties abated. A taxpayer who does not qualify for the first-time penalty relief may still qualify for penalty relief if their failure to file or pay on time was due to reasonable cause and not willful neglect. By law, interest cannot be abated.
Get more time to pay
There are options for taxpayers who owe but can't pay the full amount. Qualified taxpayers can choose to pay any taxes over time through a payment plan, including an installment agreement that can be set up in a matter of minutes on IRS.gov. A taxpayer's specific tax situation will determine which payment options are available. The IRS has more information for taxpayers who owe taxes, but cannot afford to pay the full amount.
Check withholding
To avoid surprises next year, taxpayers can use the IRS Tax Withholding Estimator to do a Paycheck Checkup to have the right amount of tax withheld during the year.
The IRS reminds taxpayers that unemployment compensation is generally taxable. To determine if unemployment is taxable, taxpayers can visit the Are Payments I Receive for Being Unemployed Taxable? tax tool at IRS.gov.
Taxpayers can choose to have federal income tax withheld from their unemployment payments. For more information, go to Form W-4V, Voluntary Withholding RequestPDF. Otherwise, taxpayers receiving unemployment benefits may be required to make quarterly estimated tax payments.
IR-2020-206, September 10, 2020
WASHINGTON — On August 28, the IRS announced that it would temporarily allow the use of digital signatures on certain forms that cannot be filed electronically. Today, the agency added several more formsPDF to that list.
The IRS made this decision to help protect the health of taxpayers and tax professionals during the COVID-19 pandemic. The change will help to reduce in-person contact and lessen the risk to taxpayers and tax professionals, allowing both groups to work remotely to timely file forms.
The IRS added the following forms to the list of those being accepted digitally:
Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return;
Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return;
Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return;
Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons;
Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts; and
Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner.
The forms are available at IRS.gov and through tax professional's software products. These forms cannot be e-filed and generally are printed and mailed.
The below list was announced August 28, and all of these forms can be submitted with digital signatures if mailed by or on December 31, 2020:
Form 3115, Application for Change in Accounting Method;
Form 8832, Entity Classification Election;
Form 8802, Application for U.S. Residency Certification;
Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit;
Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies;
Form 1120-C, U.S. Income Tax Return for Cooperative Associations;
Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts;
Form 1120-L, U.S. Life Insurance Company Income Tax Return;
Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return; and
Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.
The IRS will continue to monitor this temporary option for e-signatures and determine if additional steps are needed.
In addition, the IRS understands the importance of digital signatures to the tax community. The agency will continue to review its processes to determine where long-term actions can help reduce burden for the tax community, while at the same appropriately balancing that with critical security and protection against identity theft and fraud.
IR-2020-202, September 3, 2020
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning October 1, 2020. The rates will be: 
3% for overpayments (2% in the case of a corporation);
0.5% for the portion of a corporate overpayment exceeding $10,000;
3% percent for underpayments; and
5% percent for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during July 2020 to take effect August 1, 2020, based on daily compounding.
Revenue Ruling 2020-18 PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2020-39, dated September 21, 2020.
IR-2020-201, September 3, 2020
WASHINGTON — The Internal Revenue Service announced today that Rachel Leiser Levy is the new Associate Chief Counsel, Employee Benefits, Exempt Organizations and Employment Taxes (EEE).
Levy has served as a principal at Groom Law Group in Washington, D.C., since 2015. She has an extensive background on issues including employee benefits, employment taxes and exempt organizations, including work at the Treasury Department and the Joint Committee on Taxation. She begins in her new role Sept. 29.
"Rachel brings a strong set of skills from both inside and outside the government to this critical position for Chief Counsel and the IRS," said Mike Desmond, IRS Chief Counsel. "We look forward to her coming on board and are fortunate to have her join our staff."
EEE provides published guidance, field support and taxpayer advice on a wide array of topic areas including qualified retirement plans, health and welfare and other employee benefits, executive compensation and fringe benefits, tax-exempt entities, employment tax, state and local governments and Indian tribal governments.
Previously, Levy was an attorney-advisor and then associate benefits tax counsel with the Office of Tax Policy, U.S. Department of the Treasury, from March 2012 to February 2015. In this capacity, she developed policies and guidance related to the taxation of employee benefits, employment taxes and exempt organizations and coordinated with IRS, Department of Labor, U.S. Department of Health and Human Services and the Domestic Policy Counsel on all aspects of health care reform implementation.
She also was a legislation counsel for the Joint Committee on Taxation from August 2008 to March 2012. She assisted in the development and drafting of the Affordable Care Act; the Health Care and Education Reconciliation Act of 2010; the American Workers, State and Business Relief Act of 2010; the American Jobs and Closing Tax Loopholes Act of 2010; the American Recovery and Reinvestment Act of 2009; the Emergency Economic Stabilization Act of 2008 and the Worker, Retiree and Employer Recovery Act of 2008.
In addition to her government service, Levy has extensive private-sector experience.
In addition to serving as principal at Groom Law Group in Washington, D.C., she also was an associate with Covington & Burling LLP and with Sonnenschein Nath & Rosenthal LLP.
Levy received her B.A. in literature from Yeshiva University and her J.D. from the University of Chicago Law School where she was a member of the Law Review.
IR-2020-200, September 1, 2020
WASHINGTON — The Internal Revenue Service issued final regulations today providing additional guidance on the base erosion and anti-abuse tax (BEAT).
To limit profit-shifting, the Tax Cuts and Jobs Act (TCJA) added a new tax, the BEAT. The BEAT focuses on large U.S. corporations that make deductible payments to related foreign parties.
The final regulations provide detailed guidance regarding how to compute certain BEAT calculations for groups of related taxpayers. The final regulations also contain rules permitting taxpayers to waive deductions for purposes of the BEAT, and additional guidance regarding partnerships and anti-abuse rules.
Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.
IR-2020-199, September 1, 2020
WASHINGTON- The IRS announces the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime webpage.
The Centralized Partnership Audit Regime replaces the Tax Equity and Fiscal Responsibility Act (TEFRA) and the electing large partnership rules. The centralized partnership audit regime, or BBA, is generally effective for tax years beginning January 2018. Under the BBA, the IRS generally assesses and collects any understatement of tax (called an imputed underpayment) at the partnership level.
A partnership is subject to BBA unless it is an eligible partnership and makes an annual election out of BBA on a timely filed Form 1065. An eligible partnership is one with 100 or fewer partners, all of whom are either individuals, C corporations, foreign entities that would be treated as a C corporation if it were domestic, S corporations or estates of deceased partners.
The new webpage is intended to be a one-stop location for anything BBA-related, including regulations and other guidance and instructions related to the Partnership Representative (PR), electing out of the centralized audit regime, Administrative Adjustment Requests (AARs) and what to expect during a BBA administrative proceeding.
Taxpayers are encouraged to visit the webpage often for information, including electronic submission instructions of forms related to a BBA examination when those instructions are available.
IR-2020-247, October 28, 2020
WASHINGTON — The Internal Revenue Service reminds U.S. citizens, entities and resident aliens with a foreign bank or financial account that they have until October 31, 2020, to file their 2019 Report of Foreign Bank and Financial Accounts (FBAR).
The IRS coordinated the extension from the usual October 15 deadline with the Financial Crimes Enforcement Network (FinCEN) for this year only to filers for 2019 calendar year FBARs. FBAR filers impacted by the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires and Hurricane SallyPDF continue to have until December 31, 2020, to file their FBARs.
This requirement applies to, among others, U.S. citizens and anyone with dual citizenship. It also applies to legal entities, such as corporations, partnerships, limited liability companies, estates and trusts. In addition, U.S. citizens, entities and resident aliens should check to see if they have a U.S. tax liability and a federal tax return filing requirement. Those required to file should check to ensure all income is reported and federal tax return filing requirements are met regarding the reported accounts.
In general, the filing requirement applies to anyone who had an interest in, or signature or other authority, over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2019. 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. The FBAR, FinCEN Form 114, is only available through the BSA E-Filing System website.
Here are key points regarding the FBAR to keep in mind:
Deadline for reporting foreign accounts
By law, the deadline for filing the FBAR is the same as for a federal income tax return. This means that the FBAR, FinCEN Form 114, normally must be filed electronically with FinCEN by April 15. U.S. persons or entities who want to paper-file their FBAR must call FinCEN's Regulatory Helpline to request an exemption from e-filing.
People and entities who miss the April 15 deadline have an automatic extension until October 15 to file the FBAR. This extension is granted without any required action by the U.S. persons or entities. For 2019 only, that deadline is further extended to October 31, 2020, for most filers, and to December 31, 2020, for those impacted by the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires and Hurricane Sally.
Taxpayers should never file the FBAR with individual, business, trust or estate tax returns.
For more information, see the FBAR Fact Sheet posted on IRS.gov.
IR-2020-246, October 27, 2020
WASHINGTON — As part of an ongoing initiative to provide information and assistance to underserved communities more effectively, the Internal Revenue Service announced today that it is making two key publications designed for tax professionals available in Spanish.
Spanish-language versions of Publication 947, Practice Before the IRS and Power of Attorney (in Spanish), and Circular No. 230, Regulations Governing Practice before the Internal Revenue Service (in Spanish)PDF, are available on IRS.gov. Making these two publications available in Spanish helps the IRS reach its goal of serving all taxpayers, no matter where they live, their background, or what language they speak.
"Spanish-speaking tax pros have long played a vital role in helping businesses and families understand their tax-reporting responsibilities and take full advantage of valuable tax benefits," said IRS Commissioner Chuck Rettig. "We believe adding these two important professional resources in Spanish will help tax pros more effectively serve and represent this important community. This is just one more step in our continuing efforts to increase the information and services available in Spanish and other languages."
Circular 230 is a critical document for those practicing before the IRS. The title refers to Treasury Department Circular No. 230, which defines and governs who may practice before the IRS. Those covered by Circular 230 include attorneys, certified public accountants, Enrolled Agents, enrolled retirement plan agents, enrolled actuaries and others practicing before the IRS. The IRS Office of Professional Responsibility oversees Circular 230, including enforcing violations.
"Circular 230 will turn 100 years old in February, and making this document available in Spanish for the first time is an appropriate milestone," said Sharyn Fisk, IRS Office of Professional Responsibility Director. "We will continue to look for other opportunities to make information available to tax professionals in additional languages."
In tax-year 2020, for the first time, Form 1040 will be available in Spanish and English. In another first, the 2020 Form 1040 will also allow taxpayers to indicate on the form whether they wish to be contacted in a language other than English should the IRS need to contact them.
For more information about tax help in Spanish and other languages, visit IRS.gov.
IR-2020-243, October 26, 2020
WASHINGTON — The next quarterly payroll tax return due date is October 31, and the Internal Revenue Service urges business owners to use the speed and convenience of filing the returns electronically. Deposits made by Monday, November 2, however, would still be considered timely as October 31 is a Saturday.
IRS Forms 940, 941, 943, 944 or 945 are used to report employment tax information. The IRS recommends electronic filing, or e-filing, of these returns for many reasons.
E-filing saves taxpayers time by performing calculations and populating forms and schedules using a step-by-step process. Once submitted, the information is quickly available to the IRS, thus reducing processing time.
E-filing is the most accurate method to file returns. Those who e-file receive missing information alerts. Electronically filed returns have fewer errors, which reduces a taxpayer's chance of receiving an IRS notice.
The IRS takes safeguarding personal information seriously, and e-filing security is a top priority at the agency. E-file security standards ensure tax information is protected from security breaches. The IRS requires all authorized IRS e-file providers to ensure only authorized users have access to secure information.
The IRS acknowledges receipt of e-filed returns within 24 hours. The agency retains the information on the tax return. Unlike filing a return on paper, e-filing assures the filer that the tax return is with the IRS and not misplaced or lost in the mail.
There are two options for electronically filing payroll tax returns:

Self-file
Businesses purchase IRS-approved software. A list of providers offers options based on the relevant tax year.
Business owners may need to pay a fee to electronically file their returns.
The tax software requires a signature. The taxpayer has the option to apply for an online signature PIN or to scan and attach Form 8453-EMP, Employment Tax Declaration for an IRS e-file Return.


Tax professional file on behalf of the business
Use the Authorized IRS e-file Provider Locator Service to find a tax professional who offers this service.

Only the business owner, authorized signers and reporting agents can apply for an online signature PIN. Third parties, such as attorneys, CPAs, tax return preparers or other tax professionals can't request a PIN on behalf of the business, nor can they use the PIN to sign returns on behalf of their clients.
For more information on electronic filing of payroll tax returns, see the E-file Employment Tax Forms page.
IR-2020-242, October 23, 2020
WASHINGTON — The Internal Revenue Service today set November 10 as "National EIP Registration Day," as the agency and partners across the country launch a final push to encourage everyone who doesn't normally file a tax return to register to receive an Economic Impact Payment.
"National EIP Registration Day" will take place just a few days ahead of the extended November 21 registration deadline. This special event will feature support from IRS partner groups inside and outside of the tax community, including those that work with low-income and underserved communities. These groups will help spread the word about the new November 21 deadline and, in some cases, provide special support for people who still need to register for the payments.
The IRS has already sent nearly 9 million letters to people who may be eligible for the $1,200 Economic Impact Payments but don't normally file a tax return. The letters, along with the special November 10 event, both urge people to use the Non-Filers: Enter Info Here tool, available exclusively on IRS.gov.
"Our partner groups have been a critical part of the unprecedented IRS outreach and education campaign this year to contact as many people as possible about these payments," said IRS Commissioner Chuck Rettig. "As a result, millions of Americans have successfully used the Non-filers portal and received their Economic Impact Payment. Registration is quick and easy, and we urge everyone to share this information to reach as many people before time runs out on November 21."
To support the ongoing effort as well as "National EIP Registration Day," many partner groups have been working with the IRS, helping translate and making available Economic Impact Payment information and resources in 35 languages. The IRS also plans a special push on social media to support the final registration drive in multiple languages.
While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don't have a filing obligation should use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.
Since the Non-Filers tool launched in the spring, over 8 million people who normally aren't required to file a tax return have registered for the payments. The IRS continues to work to reach others who haven't used the tool yet, which led to the special mailing and the special Nov. 10 registration event.
The tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.
Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.
Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.
IR-2020-241, October 22, 2020
WASHINGTON — The Internal Revenue Service announced today a second time-limited settlement initiative for certain taxpayers under audit who participated in abusive micro-captive insurance transactions.
In the coming days, the IRS will begin sending settlement offers with terms that are stricter than the IRS's first time-limited initiative started last year. This announcement occurs after the IRS recently deployed its 12 newly formed micro-captive examination teams to substantially increase the examinations of abusive micro-captive insurance transactions.
The IRS has decided to offer to resolve certain cases by requiring substantial concession of the income tax benefits claimed by the taxpayer together with penalties that can be partly mitigated if the taxpayer can demonstrate good faith, reasonable reliance on an independent, competent tax advisor and if the taxpayer can demonstrate it did not participate in any other reportable transactions.
"The IRS maintains a relentless agencywide commitment to combat abusive transactions," said IRS Large Business & International Commissioner Douglas O'Donnell. "Our offer terms are only getting stricter; and taxpayers would be well advised to consult with an objective, competent advisor with the aim of getting out now and putting this behind them."
This settlement initiative is currently limited to taxpayers with at least one open year under exam. Taxpayers who also have unresolved years under the jurisdiction of the IRS Independent Office of Appeals may also be eligible, but those with tax years involving micro-captive transactions docketed in Tax Court under Counsel's jurisdiction, in general, are not eligible. Taxpayers who do not receive an offer letter are not eligible for this settlement.
Because the terms of this second settlement initiative reflect the IRS's current settlement position, certain taxpayers who received but rejected an offer under the IRS first time-limited initiative may receive an offer under this second time-limited settlement initiative, but under the new, stricter terms.
Taxpayers who receive offer letters under this settlement initiative, but who opt not to participate, will continue to be audited by the IRS under its normal procedures. Potential outcomes include, but are not limited to, full disallowance of captive insurance deductions, inclusion of income by the captive, withholding tax related to any foreign captives, and imposition of all applicable penalties.
Although taxpayers who decline to participate in the settlement will have full Appeals rights, the IRS Independent Office of Appeals is aware of this settlement initiative. Given the current state of the law, taxpayers should not anticipate receiving better terms in Appeals than those offered under this initiative.
In 2016, the Department of Treasury and IRS issued Notice 2016-66, which identified certain micro-captive transactions as having the potential for tax avoidance and evasion.
IR-2020-239, October 21, 2020
WASHINGTON — The Internal Revenue Service recently awarded over $36 million in Tax Counseling for the Elderly and Volunteer Income Tax Assistance grantsPDF to organizations that provide free federal tax return preparation.
This year, the IRS awarded grants to 34 TCE and 273 VITA applicants. The IRS received 354 applications requesting nearly $80 million.
"These two programs make a huge difference for people in need of tax assistance, and the IRS is proud to award these grants to help these groups perform their important service," said IRS Commissioner Chuck Rettig. "We appreciate the continuing interest in these programs from our partners, and we greatly appreciate the TCE and VITA volunteers across the country who make a difference for so many taxpayers."
The TCE program, established in 1978, provides tax counseling and return preparation nationwide to people who are 60 or older. Volunteers receive training and technical assistance.
The VITA program, created in 1969, assists underserved communities, such as low- and moderate-income individuals and limited English proficient taxpayers. VITA grant recipients provide free federal tax return preparation and electronic filing. Congress first appropriated funds in 2007 to establish a grant program. The grant program helps expand VITA services to underserved populations and increases the number of taxpayers able to file electronically.
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 equip these organizations 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 webpage. For details on becoming a TCE or VITA volunteer, visit IRS Tax Volunteers.
IR-2020-235, October 19, 2020
WASHINGTON — The Internal Revenue Service is combating fraud by once again joining organizations around the world to highlight the third annual International Charity Fraud Awareness Week, October 19-23.
International Charity Fraud Awareness Week (ICFAW) brings together everyone involved in the charity and not-for-profit sectors to raise awareness of and share good practices for tackling fraud and cybercrime. This award-winning campaign is led by a coalition of over 40 charities, regulators, law enforcement organizations, representative and umbrella bodies, and other not-for-profit stakeholders.
The IRS is partnering with ICFAW as part of its ongoing commitment to fight fraud against charities, businesses and individuals.
All charities are susceptible to fraud and can be targeted. Those providing services and supporting local communities may be especially vulnerable to fraudsters attempting to exploit the current pandemic or weather-related disasters. More than ever, charities need to be fraud aware and take steps to protect their money, people and assets from harm.
"Especially during these uncertain times, it's vital for everyone to remain vigilant against fraud, identity theft, scams and schemes," said IRS Director of Exempt Organizations and Government Entities, Margaret Von Lienen. "Cybercriminals are always on the lookout for new opportunities, and COVID-19 is just one more chance to take advantage of unsuspecting individuals and charities. This campaign provides resources that can help protect charities and other organizations."
This year's campaign has three core messages: be fraud aware, take time to check, and keep your charity safe.
The ICFAW Charity Fraud Hub features helpful documents, free tutorials, videos, case studies and on-demand webinars, including, COVID-19 and charity fraud: what to watch out for and how to stay safe. Charities and anyone else interested in fighting fraud can also take part in the ICFAW social media campaign using #charityfraudout.
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
In addition to crooks who target charities, those who create fake charities are a problem for the non-profit community. In fact, fake charities are once again part of the IRS' "Dirty Dozen" tax scams for 2020. Taxpayers can find legitimate and qualified charities with the Tax Exempt Organization Search tool on IRS.gov.
Visit the Fraud Advisory Panel website to learn more about ICFAW and how to get involved.
Tax pros: 18 new self-study seminars available for continuing education credit
IR-2020-234, October 13, 2020
WASHINGTON — The Internal Revenue Service today announced 18 new seminars from the 2020 Nationwide Tax Forums are now available on IRS Nationwide Tax Forums Online. The cost is $29 per seminar.
These self-study seminars provide information to participants using interactive videos, PowerPoint slides and audio transcripts.
These and all other previously recorded sessions from prior IRS Nationwide Tax Forums will be available for $29.
2020 Nationwide Tax Forums Online course listing
The following is the comprehensive list of the new 2020 courses available:
Advocating for Immigrant Taxpayers
Advocating for Taxpayers with Collection Information Statements
Be Tax Ready – Understanding Eligibility Rules for EITC, AOTC, CTC and Head of Household Filing Status
Bipartisan Budget Act of 2015's Centralized Partnership Audit Regime (The)
Charities & Tax-Exempt Organizations Update
Créditos Reembolsables (in Spanish)
Diligence in Practice before the IRS: Record-Keeping
Federal Ethics for the Tax Professionals: Office of Professional Responsibility (OPR) and Circular 230
Impact of Non-filing and Non-payment
IRS Key Enforcement Issues
Keys to Mastering Due Diligence Requirements and Audits
Keynote Address
Preparation of Form 1040-NR, U.S. Nonresident Alien Income Tax Return
Retirement Plan Distributions, Loans and More
Tax Changes from a Forms Perspective
Tax Cuts and Jobs Act (TCJA) Update: Opportunity Zones
Tax Cuts and Jobs Act (TCJA) Update: Qualified Business Income Deduction
Update from the IRS Independent Office of Appeals
These 18 courses are available in addition to the more than 60 previously recorded sessions from prior years still available for credit or to audit.
Continuing education credits information
The IRS Nationwide Tax Forums Online is registered with the IRS Return Preparer Office and the National Association of State Boards of Accountancy as a qualified sponsor of continuing education. For a fee, CPAs, Enrolled Agents and Annual Filing Season Program participants taking NTFO seminars can earn continuing education credits.
To earn credit, users must create an account, answer review questions throughout the seminar and pass short tests at the end of the seminars.
NTFO seminars can also be audited for free. Individuals who choose to audit seminars will not have access to the review questions or final examination. They will not receive credit for the seminars.
For more information please visit www.irstaxforumsonline.com.
IR-2020-233, October 9, 2020
WASHINGTON — For the first time, the IRS is adding barcode technology to notices sent to millions of taxpayers.
Starting this month, the CP14 notices that inform taxpayers that they owe money on unpaid taxes and their payment options are now equipped with QR bar codes to help those taxpayers securely and easily navigate to the IRS.gov website.
Taxpayers can now use their smartphones to scan a QR code in the CP14, and starting in 2021, the CP14 IA, to go directly to IRS.gov and securely access their account, set up a payment plan or contact the Taxpayer Advocate Service.
Scanning the QR code on the CP14 or CP14 IA will give the taxpayer direct access to the information they need on IRS.gov to resolve their account balance online without the need to call or interact with the IRS directly.
"These codes will give taxpayers immediate access to the most important information for them to pay their balances, set up payment agreements or reach out for help," said Darren Guillot, the IRS Small Business/Self-Employed Deputy Commissioner for Collection and Operations Support. "We understand there's a lot of information on the web, and we want to give taxpayers more secure tools that can more easily help them resolve their tax situations."
The IRS generally sends more than 8 million CP14 notices each year to taxpayers. They are the first legal notice alerting them that they have a balance due. Adding a QR code to the notice provides access to an up-front resolution for millions of taxpayers.
"This will help make the entire process easier for taxpayers," Guillot said.
The IRS is assessing the possibility of adding other QR codes to other balance due notices in the future.
IR-2020-230, October 6, 2020
WASHINGTON — The Internal Revenue Service announced today that Free File, the IRS-private sector partnership that offers free tax preparation products, scored a record percentage increase in new users as taxpayers turned to free name-brand providers in 2020.
IRS Free File online products marked a 50% increase this year as more than 4.1 million taxpayers used one of the free online partner products. Last year, more than 2.7 million taxpayers used Free File.
Free File remains available through October 15 for those taxpayers who still need to file their 2019 return.
"The IRS has worked with our partners to make important improvements to the Free File program this year, and we are encouraged by the strong increase in usage," said IRS Commissioner Chuck Rettig. "The IRS remains committed to supporting and promoting this free service that benefits so many taxpayers."
Additionally, 96% of the people who had no filing requirement and who registered for an Economic Impact Payment used an online tool supported by Free File Inc., the consortium representing the tax software providers who partner with the IRS.
Free File Inc. developed the Non-Filers: Enter Payment Info Here tool that gave Americans with no filing requirement a free way to get their Economic Impact Payment. More than seven million non-filers have registered for the payments so far, with more than 6.7 million Non-Filers using the Free File Inc. product. The Non-Filers tool, available on the IRS.gov homepage, remains available through November 21, following the announcement that the deadline for non-filers to register had been extended.
How Free File works
Taxpayers whose adjusted gross income was $69,000 or less in 2019 can choose from multiple online preparation products, in English and Spanish. Taxpayers whose income was higher can opt for Free File Fillable Forms, the electronic version of IRS paper forms.
Here's how taxpayers can use Free File:
Go to IRS.gov/freefile
Select "Choose an IRS Free File offer"
Choose between "Browse All" and "Start Lookup Tool" to find the right product for you
Follow links to the Free File providers tax product
In 2003, the IRS and the Free File Alliance, now Free File Inc., a consortium of tax software providers began offering free tax software and free electronic filing to taxpayers. There currently are 10 partners offering free products, including two products in Spanish.
IRS Free File is the main provider of free, electronic tax preparation services for low- to moderate-income Americans and, in aggregate, one of the top e-file providers within the tax industry.