etrent17/irs-articles huggingface dataset:
IR-2020-229, October 5, 2020
WASHINGTON — The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline.
The IRS urges people who don't typically file a tax return – and haven't received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.
"We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities," said IRS Commissioner Chuck Rettig. "The IRS is deeply involved in processing and programming that overlaps filing seasons. Any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons. The Non-Filers portal has been available since the spring and has been used successfully by many millions of Americans."
Special note: This additional time into November is solely for those who have not received their EIP and don't normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline date remains October 15.
To support the ongoing EIP effort, many partner groups have been working with the IRS, helping translate and making available in 35 languages IRS information and resources on Economic Impact Payments.
To help spread the word, the IRS sent nearly 9 million letters in September to people who may be eligible for the $1,200 Economic Impact Payments but don't normally file a tax return. This push encourages people to use the Non-Filers tool on IRS.gov.
"Time is running out for those who don't normally file a tax return to get their payments," Rettig added. "Registration is quick and easy, and we urge everyone to share this information to reach as many people before the deadline."
While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don't have a filing obligation need to use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.
The Non-Filers tool is secure and is based on Free File Fillable Forms, part of the Free File Alliance's offering of free products on IRS.gov.
The Non-Filers 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 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-2020-227, October 1, 2020
WASHINGTON — The Internal Revenue Service posted to IRS.gov final regulations today for Achieving a Better Life Experience (ABLE) accounts.
The regulations issued today finalize two previously issued proposed regulations. The first proposed regulation was published in 2015 after the enactment of the ABLE Act. The second proposed regulation was published in 2019 in response to the Tax Cuts and Jobs Act, which made significant changes to ABLE accounts.
Eligible individuals may now put more money into their ABLE account and roll money from their qualified tuition programs (529 plans) into their ABLE accounts. Also, certain contributions made to ABLE accounts by low- and moderate-income workers may now qualify for the Saver's Credit.
ABLE accounts are designed to help people with disabilities and their families save and pay for disability-related expenses. Though contributions are not deductible, distributions, including earnings, are tax-free to the designated beneficiary if used to pay qualified disability expenses. These expenses can include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services and other disability-related expenses.
The final regulation addresses many comments received on the 2015 and 2019 proposed regulations. Specifically, they provide guidance on the gift and generation-skipping transfer tax consequences of contributions to an ABLE account, as well as on the federal income, gift, and estate tax consequences of distributions from, and changes in the designated beneficiary of, an ABLE account.
Also, before January 1, 2026, funds are allowed to be rolled over from a designated beneficiary's 529 plan to an ABLE account for the same beneficiary or a family member. The regulations provide that rollovers from 529 plans, together with any contributions made to the designated beneficiary's ABLE account (other than certain permitted contributions of the designated beneficiary's compensation) cannot exceed the annual ABLE contribution limit.
Finally, these regulations provide guidance on the recordkeeping and reporting requirements of a qualified ABLE program.
For more information about ABLE accounts and other tax reform changes visit the Tax Reform page of IRS.gov.
IR-2020-262, November 23, 2020
WASHINGTON —– Today the Treasury Department and Internal Revenue Service issued final regulations relating to section 1031 like-kind exchanges. These final regulations address the definition of real property under section 1031 and also provide a rule addressing the receipt of personal property that is incidental to real property received in a like-kind exchange.
The 2017 Tax Cuts and Jobs Act (TCJA) limited like-kind exchange treatment to exchanges of real property. As of January 1, 2018, exchanges of personal or intangible property such as vehicles, artwork, collectibles, patents, and other intellectual property generally do not qualify for nonrecognition of gain as like-kind exchanges. Also, like-kind exchange treatment applies only to exchanges of real property held for use in a trade or business or for investment. An exchange of real property held primarily for sale does not qualify as a like-kind exchange.
Under the final regulations, real property includes land and generally anything permanently built on or attached to land. In general, real property also includes property that is characterized as real property under applicable State or local law. In addition, certain intangible property, such as leaseholds or easements, qualifies as real property under section 1031. Property not eligible for like-kind exchange treatment prior to enactment of the TCJA remains ineligible. Neither the TCJA nor the final regulations change whether the properties exchanged are of like kind.
To report a like-kind exchange, taxpayers must file Form 8824, Like-Kind Exchanges, with their tax return for the year they transfer property as part of a like-kind exchange. This form helps taxpayers figure the amount of gain deferred as a result of the like-kind exchange, as well as the basis of the like-kind property received. Form 8824 also helps taxpayers compute the amount of gain they must report if cash or property that isn't of a like-kind is involved in the exchange.
For more information about this and other tax reform changes, visit irs.gov/taxreform.
IR-2020-261, November 23, 2020
WASHINGTON — The Internal Revenue Service's Office of the Chief Procurement Officer today announced a research partnership with Data and Analytic Solutions, a small business located in Fairfax, Virginia. The partnership also includes a group of academic researchers with a goal to use data science to improve IRS procurement operations.
The effort will bring together a multi-disciplinary team comprised of procurement practitioners as well as university professors and students with procurement and machine learning experience. Machine learning is a form of artificial intelligence that allows computers to become more accurate at predicting outcomes without being explicitly programmed.
"As with many agencies, we have a wealth of data available to us to understand where time is being spent in our contracting process," said Shanna Webbers, IRS Chief Procurement Officer. "The intent of this research project is to enable us to hone-in on key factors impacting our time to award and identify tools that can be utilized to make process improvements to shorten our lead time, more effectively allocate our human resources, and better serve our customers."
One topic that researchers will examine is the length of time it takes to award a government contract. New regulations have standardized the lead time necessary to finalize a new contract procurement. That has resulted in the largest ever dataset on timeframes for federal contract awards. Using this information, researchers plan to examine nearly half a million contracts looking for ways to improve the process.
Overall, the goal is to enable federal agencies to buy mission-critical services at a speed similar to the private sector's contracting process. The IRS research partnership is intended to better understand the key factors impacting the time it takes to award contracts and how to execute contracts more efficiently.
The team will also try to improve the accuracy of an algorithm that predicts when individual procurement requests will become signed contracts. The partnership also plans to train contracting officials on best practices and grow a talent pipeline of acquisition professionals with data expertise.
IR-2020-258, November 18, 2020
WASHINGTON — The Internal Revenue Service Advisory Council (IRSAC) today issued its annual report for 2020PDF, including recommendations to the IRS on new and continuing issues in tax administration.
The IRSAC is a federal advisory committee that provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members offer constructive observations regarding current or proposed IRS policies, programs and procedures.
The 2020 Public Report includes recommendations on 26 issues, which cover a broad range of topics, including:
Funding of the IRS
The Taxpayer First Act
Expansion of e-File
Proposal for an early exam program for Large Business
Telephone response times for the Practitioner Priority Service
Resources for Native American taxpayers and federally recognized tribes
Taxpayer Digital Communications
The IRSAC is administered under the Federal Advisory Committee Act by the Office of National Public Liaison, part of IRS Communications and Liaison, and draws its members from the taxpaying public, the tax professional community, representatives of the low income community, small and large businesses, tax-exempt and government entities, the payroll industry and academia. It is comprised of four subgroups aligned to the IRS operating divisions: Large Business & International, Small Business/Self-Employed, Tax Exempt/Government Entities and Wage & Investment.
Commissioner Chuck Rettig and IRS executives thanked members of the council whose terms end this year:
Martin Bentsen – Bentsen served on the Large Business & International Subgroup
Mike Engle – Engle served as Chair of the Tax Exempt/Government Entities Subgroup
Diana Erbsen – Erbsen served as Chair of the IRSAC
Sanford Kelsey – Kelsey served on the Large Business & International Subgroup
Phyllis Jo Kubey – Kubey served as Chair of the Wage & Investment Subgroup
Mas Kuwana – Kuwana served on the Small Business/Self-Employed Subgroup
Emily Lindsey – Lindsey served on the Small Business/Self-Employed Subgroup
Charles "Sandy" Macfarlane – Macfarlane served as Chair of the Large Business & International Subgroup
Charles Read – Read served on the Small Business/Self-Employed Subgroup
Jeffrey Schneider – Schneider served on the Small Business/Self-Employed Subgroup
Jean Swift – Swift served on the Tax Exempt/Government Entities Subgroup
Patricia Thompson – Thompson served as Chair of the Small Business/Self-Employed Subgroup
IR-2020-257, November 17, 2020
WASHINGTON — The Internal Revenue Service today reminded anyone who doesn't normally file a tax return that they have until 3 p.m. EST this Saturday, November 21, to register with the IRS for an Economic Impact Payment (EIP).
The only way remaining to get a payment in 2020 is to register using the Non-Filers: Enter Info Here tool on IRS.gov before the Saturday deadline.
The only people who should register are those who don't typically file a tax return, are not required to do so and have not yet registered, or for certain benefit recipients who got an EIP for themselves but need to provide information about a non-beneficiary spouse or qualifying child. Anyone else who normally files a tax return, including low- and moderate-income workers and families claiming the Earned Income Tax Credit, Child Tax Credit or other tax benefits, cannot use the tool.
In partnership with the U.S. Treasury Department, the Bureau of the Fiscal Service, Social Security Administration and the Department of Veteran's Affairs and software industry partners, the IRS has issued about 160 million Economic Impact Payments totaling approximately $270 billion. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the IRS will continue issuing these payments during the final weeks of 2020, and some people may be eligible to claim them when they file their 2020 tax returns in 2021.
Anyone can check the status of their payment by using the Get My Payment application, available only on IRS.gov. The Get My Payment application will show "Payment Status Not Available" until the payment is scheduled to be issued. This response does not mean a person is not eligible or will not receive a payment.
Economic Impact Payments aren't taxable
Economic Impact Payments received in 2020 are not taxable for federal income tax purposes. Taxpayers can claim the recovery rebate credit on their tax year 2020 tax return in 2021 if they didn't receive a payment or if their payment wasn't the correct amount.
Didn't receive a payment? Claim the Recovery Rebate Credit when filing a tax return next year
When people file their 2020 taxes next year and they weren't eligible for an Economic Impact Payment this year, they may be eligible for the Recovery Rebate Credit. The Recovery Rebate Credit is figured like the Economic Impact Payment, except the amounts are based on tax year 2020, instead of tax year 2019 or tax year 2018, information. The eligibility criteria are the same, and the maximum credit is $1,200, or $2,400 if married filing jointly, plus $500 for each qualifying child. This means anyone who received the full Economic Impact Payment amount during 2020 for both themselves and their qualifying children cannot get the credit.
The credit can be claimed on either Form 1040 or Form 1040-SR. The 2020 instructions for these forms will include a Recovery Rebate Credit worksheet to help determine eligibility and figure the credit.
Visit the IRS Economic Impact Payment Information Center for answers to questions about eligibility, payment amounts, payment timing and more.
IR-2020-254, November 13, 2020
WASHINGTON — Moving to protect business taxpayers from identity theft, the Internal Revenue Service today announced that starting December 13 it will begin masking sensitive data on business tax transcripts.
The announcement provides 30 days for stakeholders to make any adjustments. The IRS began informing tax professionals of this change during the summer Nationwide Tax Forums. The agencypreviously masked sensitive data on individual tax transcripts two years ago.
A tax transcript is a summary of a tax return. Transcripts are often used by tax professionals to prepare prior year tax returns or represent the client before the IRS. Lenders and others use tax transcripts for income verification purposes.
Here's what is visible on the new tax transcript:
Last four digits of any Employer Identification Number listed on the transcript: XX-XXX1234
Last four digits of any Social Security number or Individual Tax Identification Number listed on the transcript: XXX-XX-1234
Last four digits of any account or telephone number
First four characters of the first, and last name for any individual (first three characters if the name has only four letters)
First four characters of any name on the business name line
First six characters of the street address, including spaces
All money amounts, including wage and income, balance due, interest and penalties
For both the individual and business tax transcript, there is space for a Customer File Number. The Customer File Number is an optional 10-digit number that can be created usually by third parties that allow them to match a transcript to a taxpayer. The Customer File Number field will appear on the transcript when that number is entered on Line 5 of Form 4506-T, Request for Transcript of Tax Return, and Form 4506T-EZ.
Here's how it would work for a taxpayer seeking to verify income for a lender:
The lender will assign a 10-digit number, for example, a loan number, to the Form 4506-T. The Form 4506-T may be signed and submitted by the taxpayer or signed by the taxpayer and submitted by the lender.
The Customer File Number assigned by the requestor on the Form 4506-T will populate on the transcript. The requestor may assign any number except the taxpayer's Social Security number or Employer Identification Number.
Once received by the requester, the transcript's Customer File Number serves as the tracking number to match it to the taxpayer.
More information about the masking of transcripts can be found at IRS.gov's e-Services page after December 13.
IR-2020-252, November 9, 2020
WASHINGTON — The Internal Revenue Service (IRS) today issued Notice 2020-75PDF, which announces rules to be included in forthcoming proposed regulations.  Specifically, the proposed regulations will clarify that State and local income taxes imposed on and paid by a partnership or S corporation on its income are allowed as a deduction by the partnership or S corporation in computing its  non-separately stated taxable income or loss for the taxable year of payment, and therefore are not subject to the State and local tax deduction limitation for partners and shareholders who itemize deductions.
The noticePDF describing the forthcoming proposed regulations applies to these types of income taxes starting today, and also allows taxpayers to apply these rules to specified income tax payments made in a taxable year of a partnership or an S corporation ending after Dec. 31, 2017, and before the date the forthcoming proposed regulations are published in the Federal Register.
Updates on the implementation of the Tax Cuts and Jobs Act (TCJA) can be found on the Tax Reform page of IRS.gov.
IR-2020-251, November 5, 2020
WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance for employers and employees with terminating 403(b) plans that fund benefits through 403(b)(7) custodial accounts. The guidance reflects changes provided in the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).
Revenue Ruling 2020-23PDF provides that 403(b) retirement plans funded through individual or group 403(b)(7) custodial accounts can be terminated through the distribution of individual custodial accounts. If a distributed custodial account continues to comply with certain requirements, no portion of the distributed custodial account is includible in gross income until amounts are actually paid out of the account to a participant or beneficiary.
Notice 2020-80PDF requests comments on the application of annuity and spousal rights provisions related to distributions in certain plans described in Revenue Ruling 2020-23.
IR-2020-249, November 4, 2020
WASHINGTON — The Internal Revenue Service, state tax agencies and the tax industry today warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment.
The IRS, states and industry, working together as the Security Summit, remind taxpayers that neither the IRS nor state agencies will ever text taxpayers asking for bank account information so that an EIP deposit may be made.
"Criminals are relentlessly using COVID-19 and Economic Impact Payments as cover to try to trick taxpayers out of their money or identities," said IRS Commissioner Chuck Rettig. "This scam is a new twist on those we've been seeing much of this year. We urge people to remain alert to these types of scams."
The scam text message states: "You have received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment into your account. Continue here to accept this payment …" The text includes a link to a fake phishing web address.
This fake phishing URL, which appears to come from a state agency or relief organization, takes recipients to a fraudulent website that impersonates the IRS.gov Get My Payment website. Individuals who visit the fraudulent website and then enter their personal and financial account information will have their information collected by these scammers.
People who receive this text scam should take a screen shot of the text message that they received and then include the screenshot in an email to phishing@irs.gov with the following information:
Date/Time/Timezone that they received the text message
The number that appeared on their Caller ID
The number that received the text message
The IRS does not send unsolicited texts or emails. The IRS does not call people with threats of jail or lawsuits, nor does it demand tax payments on gift cards.
People who believe they are eligible for the Economic Impact Payment should go directly to IRS.gov. People who do not have a filing requirement but who are eligible for EIP can use a non-filers tool on IRS.gov until November 21 to claim their payment.
IR-2020-281, December 31, 2020
WASHINGTON — The Treasury Department and the Internal Revenue Service today issued guidancePDF providing an extension of the safe harbor for taxpayers developing renewable energy projects offshore or on federal land.
Renewable energy projects constructed offshore or on federal land are ordinarily subject to significant delays that can result in project completion times of up to twice as long as other renewable energy projects. These delays threaten taxpayers' ability to satisfy requirements to claim the production tax credit and the investment tax credit.
To address this hurdle, the Treasury Department and the IRS have determined that it is necessary to extend the safe harbor period to up to 10 calendar years after the year in which construction of the project began.
By extending the safe harbor for these projects, Notice 2021-05 will provide flexibility for taxpayers constructing renewable energy projects offshore or on federal land to satisfy the beginning of construction requirements despite ordinary course delays that threaten their ability to claim tax credits.
IR-2020-279, December 22, 2020
WASHINGTON — The Internal Revenue Service today issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
56 cents per mile driven for business use, down 1.5 cents from the rate for 2020,
16 cents per mile driven for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020, and
14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.
The standard mileage rate for business use 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.
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Taxpayers can use the standard mileage rate but must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.
Notice 2021-02PDF, contains the optional 2021 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2021 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.
IR-2020-276, December 11, 2020
IRS YouTube Video:
Volunteer Income Tax Assistance Recruitment − English
WASHINGTON — Safety and social distancing, along with virtual options, will be the emphasis now and for the upcoming tax season as the Internal Revenue Service seeks volunteers to provide free tax return preparation through its Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.
In response to the coronavirus pandemic, the IRS is rolling out new ways to make volunteering easier and safer.
More help for new volunteers
In preparation for the upcoming tax filing season, to keep everyone safe, potential volunteers can tune in virtually to learn more about the programs, ask questions and find out which volunteer role is right for them.
Also, some volunteer sites will offer virtual help to taxpayers in place of face-to-face assistance. This allows volunteers to help taxpayers over the phone or online to complete their returns. Other volunteers will conduct a virtual quality review with the taxpayer before e-filing their tax return to the IRS.
While virtual volunteering will be an option this tax season, some VITA/TCE sites will still offer in-person free tax help. However, safety and social distancing will be emphasized.
Support for new volunteers is always available through more experienced volunteers familiar with the program and tax preparation.
Join a well-established program
For over 50 years, volunteers have prepared tax returns in communities across the country. Each year, thousands of volunteers prepare millions of tax returns through the VITA and TCE programs.
The VITA program offers free tax help to people who make $57,000 or less, persons with disabilities and limited English-speaking taxpayers.
The TCE program offers free tax help to those who are 60 years of age and older. TCE volunteers specialize in questions about pensions and retirement-related issues unique to seniors.
There are many available volunteer roles:
Greeters to help screen taxpayers to determine the type of assistance they need.
Interpreters to provide language services.
Tax preparers to use electronic filing software to complete tax returns.
Tax coaches, at some sites, to encourage taxpayers to prepare their own tax returns and help them through the process.
The programs offer free training to help volunteers learn the skills they need. Some roles require tax law training and certification, but other roles do not. There is a spot for everyone who wants to help.
Experienced volunteers
Another recent addition to the VITA/TCE program gives credit for experience. A new Qualified Experienced Volunteer test is shorter than the traditional test, allowing returning VITA and TCE volunteers to devote more of their time to helping taxpayers.
To learn more about volunteering and to sign up, go to IRS.gov/volunteers. Shortly after signing up, interested participants will receive an invite to attend a virtual orientation.
IR-2020-275, December 9, 2020
WASHINGTON — The Treasury Department and Internal Revenue Service issued final regulations on the deduction for qualified transportation fringe and commuting expenses following changes made by the Tax Cuts and Jobs Act (TCJA).
The 2017 TCJA generally disallows deductions for qualified transportation fringe (QTF) expenses and does not allow deductions for certain expenses of transportation and commuting between an employee's residence and place of employment.
These final regulations address the disallowance of the deduction for expenses related to QTFs provided to an employee of the taxpayer, including providing guidance and methodologies to determine the amount of QTF parking expenses that is nondeductible. The final regulations also address the disallowance of the deduction for expenses of transportation and commuting between an employee's residence and place of employment.
Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.
IR-2020-274, December 9, 2020
WASHINGTON — The Internal Revenue Service has started sending letters to taxpayers that may need to take additional actions related to Qualified Opportunity Funds (QOF).
Taxpayers who attached or indicated they attached a Form 8996 to their return may receive Letter 6250, Self-certifying as Qualified Opportunity Fund (QOF). This letter lets them know that if they intended to self-certify as a QOF they may need to take additional action to meet the annual self-certification requirement.
To correct a 2018 self-certification as a QOF, these taxpayers should file an amended return or an administrative adjustment request (AAR). If an entity that receives the letter fails to take action to self-certify as a QOF, the IRS may refer its tax account for examination. Investors who made an election to defer tax on eligible gains invested in that entity may also be subject to examination for an invalid election.
Additionally, taxpayers may receive Letter 6251, Reporting Qualified Opportunity Fund (QOF) Investments, notifying them they may not have properly followed the instructions for Form 8949, Sales and other Dispositions of Capital Assets or do not appear to have an eligible gain that would enable them to make a valid deferral election for gains invested in a QOF.
If these taxpayers intended to make a valid deferral election, they can file an amended return or an AAR. Failure to act will mean those who received the letter may not have a qualifying investment in a QOF and the IRS may refer their tax accounts for examination. This may result in letter recipients owing taxes, interest, and penalties on gains that were not properly deferred.
For general information, visit the Opportunity Zones page on irs.gov.
IR-2020-273, December 9, 2020
WASHINGTON — The Internal Revenue Service today issued Notice 2020-86PDF addressing certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) affecting safe harbor plans, including safe harbor 401(k) plans and certain 403(b) plans.
A safe harbor 401(k) plan is similar to a traditional 401(k) plan but is structured in a way that certain compliance testing can be avoided. Among other things, a safe harbor 401(k) plan must provide for employer contributions that are fully vested when made. These contributions may be employer matching contributions, limited to employees who defer, or employer contributions made on behalf of all eligible employees, regardless of whether they make elective deferrals.
Notice 2020-86 is written in the form of questions and answers to assist small businesses and other employers that maintain safe harbor plans comply with the SECURE Act.
The SECURE Act generally increases from 10 percent to 15 percent the maximum automatic elective deferral under an automatic enrollment safe harbor plan. It also eliminates certain safe harbor notice requirements for plans that provide safe harbor nonelective contributions and adds new provisions for the retroactive adoption of safe harbor status for those plans.
The notice provides initial guidance on these provisions of the SECURE Act and impacts certain safe harbor 401(k) and 401(m) plans (including 403(b) plans that apply the 401(m) safe harbor).
Notice 2020-86 is intended to assist taxpayers by providing guidance on particular issues while the Treasury Department and the IRS develop regulations to fully implement these provisions of the SECURE Act.
For more information about this and other tax information, visit IRS.gov.
IR-2020-272, December 8, 2020
WASHINGTON — The Internal Revenue Service today encouraged taxpayers to take necessary actions in the final weeks of the year to help file federal tax returns timely and accurately in 2021.
This is the third in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to make tax filing easier in 2021.
This year, there are some key items to consider involving credits, deductions and refunds:
Recovery Rebate Credit/Economic Impact Payment. Taxpayers who received an Economic Impact Payment, should keep Notice 1444, Your Economic Impact Payment, with their 2020 tax records. They may be eligible to claim the Recovery Rebate Credit on their tax year 2020 federal income tax return if:
they didn't receive an Economic Impact Payment, or 
their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018), plus $500 for each qualifying child they had in 2020.
If a taxpayer didn't receive the full amount of the Economic Impact Payment for which they were eligible, they may be able to claim the Recovery Rebate Credit when they file in 2021. Individuals do not need to complete information about the Recovery Rebate Credit on tax year 2020 Form 1040 or 1040-SR when filing in 2021, unless eligible to claim an additional credit amount.
Interest on refunds taxable. Taxpayers who received a federal tax refund in 2020 may have been paid interest. Refund interest payments are taxable and must be reported on federal income tax returns. In January 2021, the IRS will send Form 1099-INT to anyone who received interest totaling $10 or more.
Charitable deduction changes. New this year, taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For more information, read Publication 526, Charitable Contributions.
Refunds. The IRS always cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and processing may take longer. For example, the IRS, along with its partners in the tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud. Just like last year, refunds for tax returns claiming the Earned Income Tax Credit or Additional Child Tax Credit, cannot be issued before mid-February. This applies to the entire refund, even the portion not associated with these credits.
The IRS reminds taxpayers that the fastest and safest way to receive a refund is to combine direct deposit with electronic filing including the IRS Free File program. Taxpayers can track their refund using the Where's My Refund? tool.
For more information to plan ahead, see Publication 5348, Get Ready to FilePDF, and Publication 5349, Year-Round Tax Planning is for EveryonePDF.
IR-2020-270, December 3, 2020
WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning January 1, 2021. The rates will be:
three (3) percent for overpayments (two (2) percent in the case of a corporation);
one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000;
three (3) percent for underpayments; and
five (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 October 2020 to take effect November 1, 2020, based on daily compounding.
Revenue Ruling 2020-28PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2020-52, dated December 21, 2020.
IR-2020-269, December 3, 2020
WASHINGTON — The Internal Revenue Service today reminded employers that they must file Form W-2 and other wage statements by February 1, 2021, to avoid penalties and help the IRS prevent fraud.
A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. That is also the date the Forms W-2 are due to workers. This upcoming tax season, however, January 31 falls on a Sunday, pushing the due dates to the next business day, which is Monday, February 1.
Certain Forms 1099-MISC, Miscellaneous Income and Forms 1099-NEC, Nonemployee Compensation, are also normally due to taxpayers on January 31, but this tax season they too will be due on the next business day, February 1, 2021. Various other due dates related to Form 1099-MISC, including dates due to the IRS, can be found in the instructionsPDF on IRS.gov.
Helping fraud detection
The normal January filing date for wage statements means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns. Employers can help support that process, and avoid penalties, by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms.
Start early
Good preparation now can help businesses avoid problems later. For instance, employers can get an early start verifying or updating employee information like names, addresses and Social Security numbers 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. Businesses should also order paper Forms W-2 early if needed.
Automatic extensions of time to file Forms W-2 are not available. The IRS will only grant extensions for very specific reasons. Details can be found on the instructions for Form 8809, Application for Time to File Information Returns.
For more information, read the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.
IR-2019-08, January 29, 2019
WASHINGTON — The Internal Revenue Service today reminds employers and other businesses of the Jan. 31 filing deadline that applies to filing wage statements and independent contractor forms with the government.
The Protecting Americans from Tax Hikes (PATH) Act requires employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. The Jan. 31 deadline also applies to certain Forms 1099-MISC, Miscellaneous Income, filed with the 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.
An extension of time to file Forms W-2 is no longer automatic. The IRS will only grant extensions for specific reasons. Details can be found on the instructions for Form 8809, Application for Extension of Time to File Information ReturnsPDF.
The IRS noted that some employers who ordered paper information and employer returns may not receive them in time to meet the Jan. 31 deadline and should consider an alternate source for these forms. The IRS is filling these orders as quickly as possible. Click here for more information.
For more information, read the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.
IR-2019-05, January 22, 2019
WASHINGTON ― The Treasury Department and the Internal Revenue Service today announced the cancellation of a public hearing on proposed amendments to the regulations relating to imposing user fees for enrolled agents and enrolled retirement plan agents (REG-122898-17) due to the lapse of appropriations.
The public hearing was scheduled for Jan. 24, 2019, at 10 a.m. ET in the main auditorium of the Internal Revenue Service Building, 1111 Constitution Avenue NW, Washington, DC 20224.
The notice of proposed rulemaking and notice of public hearing was published on Nov. 19, 2018 (83 F.R. 58202).
The lapse of appropriations for Treasury took effect as of Dec. 21, 2018. Also due to the lapse in appropriations, the IRS will not determine until later, whether the public hearing will be rescheduled.
IR-2019-04, January 18, 2019
WASHINGTON — Today the Treasury Department and the Internal Revenue Service issued final regulations and three related pieces of guidance, implementing the new qualified business income (QBI) deduction (section 199A deduction).
The new QBI deduction, created by the 2017 Tax Cuts and Jobs Act (TCJA) allows many owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income.  Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) dividends and publicly traded partnership income.  
The QBI deduction is available in tax years beginning after Dec. 31, 2017, meaning eligible taxpayers will be able to claim it for the first time on their 2018 Form 1040.
The guidance, released today includes:
A set of regulationsPDF, finalizing proposed regulations issued last summer
A new set of proposed regulationsPDF providing guidance on several aspects of the QBI deduction, including qualified REIT dividends received by regulated investment companies
A revenue procedurePDF providing guidance on determining W-2 wages for QBI deduction purposes,
A noticePDF on a proposed revenue procedure providing a safe harbor for certain real estate enterprises that may be treated as a trade or business for purposes of the QBI deduction
The proposed revenue procedure, included in Notice 2019-07, allows individuals and entities who own rental real estate directly or through a disregarded entity to treat a rental real estate enterprise as a trade or business for purposes of the QBI deduction if certain requirements are met. Taxpayers can rely on this safe harbor until a final revenue procedure is issued. 
The QBI deduction is generally available to eligible taxpayers with 2018 taxable income at or below $315,000 for joint returns and $157,500 for other filers. Those with incomes above these levels, are still eligible for the deduction but are subject to limitations, such as the type of trade or business, the amount of W-2 wages paid in the trade or business and the unadjusted basis immediately after acquisition of qualified property. These limitations are fully described in the final regulations.
The QBI deduction is not available for wage income or for business income earned by a C corporation.
For details on this deduction, including answers to frequently-asked questions, as well as information on other TCJA provisions, visit IRS.gov/taxreform.
IR-2019-01, January 7, 2019
WASHINGTON — Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.
“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig.
Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse.
The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown, to work. Additional details for the IRS filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the coming days.
“IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years,” said Rettig.
As in past years, the IRS will begin accepting and processing individual tax returns once the filing season begins. For taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. They should file when they are ready to submit a complete and accurate tax return.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.
Software companies and tax professionals will be accepting and preparing tax returns before Jan. 28 and then will submit the returns when the IRS systems open later this month. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds.
IR-2019-24, February 28, 2019
WASHINGTON — The Internal Revenue Service will waive the estimated tax penalty for any qualifying farmer or fisherman who files his or her 2018 federal income tax return and pays any tax due by Monday, April 15, 2019. The deadline is Wednesday, April 17, 2019, for taxpayers residing in Maine or Massachusetts.
The IRS is providing this relief because, due to certain rule changes, many farmers and fishermen may have difficulty accurately determining their tax liability by the March 1 deadline that usually applies to them. For tax year 2018, an individual who received at least two-thirds of his or her total gross income from farming or fishing during either 2017 or 2018 qualifies as a farmer or fisherman.
To be eligible for the waiver, qualifying taxpayers must attach Form 2210-F, available on IRS.gov, to their 2018 income tax return. This form can be submitted either electronically or on paper. The taxpayer’s name and identifying number, usually a Social Security number, must be entered at the top of the form. The waiver box—Part I, Box A—should be checked. The rest of the form should be left blank.
Further details can be found in Notice 2019-17PDF, posted today on IRS.gov.