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https://www.irs.gov/newsroom/whats-hot

Here you'll find items of current interest — new programs, recent guidance or timely reminders. Tax extension filers don't need to wait until October 17 Taxpayers who requested an extension to file their 2021 tax return don't have to wait until mid-October to file. If a taxpayer has all the necessary information to file an accurate return, they can file electronically at any time before the October deadline and avoid a last-minute rush to file. Taxpayers who requested more time to file an accurate return have until October 17, 2022. Those who have what they need to file, however, should file as soon as possible to avoid delays in processing their return. Tax season alerts and planning ahead for 2023 Taxpayers face a number of issues due to critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic. The IRS continues to share updated information for people now filing their 2021 tax returns and those planning for the 2022 return they will file next year, as well as anyone who has previous year tax returns awaiting processing by the IRS. This special alerts page is designed to help anyone whether they are now preparing their tax return or are awaiting processing of a return or refund and the latest updates on IRS letters, or notices. Newer updates will be placed at the top of this page; the IRS will also provide critical updates through social media. Coronavirus Tax Relief For the latest information about coronavirus tax relief, see the Coronavirus Tax Relief and Economic Impact Payments page. Visit our Coronavirus and Economic Impact Payments: Resources and Guidance page for our latest content including news releases, Tax Tips, frequently asked questions, multilingual partner materials and more. To learn about IRS operations during COVID-19, visit our operations page for up-to-date status on affected IRS operations and services. Outreach Connection Get free tax content to share  with your staff, clients, customers or colleagues that you can include in your: Website e-Newsletter Twitter, Instagram or other social media Taxpayer Bill of Rights All taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them. The Right to Be Informed The Right to Quality Service The Right to Pay No More than the Correct Amount of Tax The Right to Challenge the IRS's Position and Be Heard The Right to Appeal an IRS Decision in an Independent Forum The Right to Finality The Right to Privacy The Right to Confidentiality The Right to Retain Representation The Right to a Fair and Just Tax System Tax Withholding The IRS encourages taxpayers to perform a quick "paycheck checkup" by using the Withholding Estimator to check if they have the right amount of withholding for their personal situation. Consumer Alerts on Tax Scams ‪Note that the IRS will never: Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes. Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe. Ask for credit or debit card numbers over the phone. For more information on tax scams, please see Tax Scams/Consumer Alerts. For more information on phishing scams, please see Suspicious emails and Identity Theft. Call the Centers for Disease Control (CDC) <!– finder="" vaccine="" widget=""> </!–>

https://www.irs.gov/newsroom/multimedia-center

Welcome to the resource center for members of the media — online tools and information straight from the source available in both English, Spanish and more. Here you'll find links to a variety of resources and multimedia files to help you report the latest tax news. We have press kits, news releases and public service advertisements, as well as sound bites, radio spots and more. Social Media The IRS has a presence on social media platforms. Follow us for the latest updates on tax changes, scam alerts, initiatives, products and services. IRS has a smartphone application, IRS2Go, that lets you interact with the IRS using your mobile device. The mobile application includes the following features: Get your refund status. Make a payment.  Find free tax preparation assistance. Stay connected with the IRS. For more information, visit our social media page. Video We have numerous video Tax Tips available for viewing, along with their texts. English Español Chinese Vietnamese American Sign Language (ASL) Audio Need an audio spot for your website? We've compiled a host of MP3 files covering a variety of topics and formats. Audio Files for Podcasts: Hear them now, or download the MP3s to hear them later Text In addition to audio and video Tax Tips, we also have them in print. IRS Tax Tips: Daily Tax Tips are available throughout the filing season. Marketing Materials and Other Resources Use these items to get you started or fill in empty spaces. You'll find print public service advertisements (PSAs), posters and more. EITC for partners IRS Radio PSAs e-News Subscriptions Want to get the latest tax news right in your inbox? We've got a number of email subscription services to choose from. Take a look and sign up for the ones that interest you. IRS2Go IRS2GoApp YouTube @IRSVideos @IRSVideosASL @IRSmultilingual Taxpayer Advocate Twitter @IRSnews @IRStaxpros @IRSenEspanol @RecruitmentIRS @YourVoiceAtIRS @IRStaxsecurity @IRSsmallbiz @IRS_CI LinkedIn LinkedIn Instagram @IRSnews Facebook IRS IRS en Español IRS Tax Pros Taxpayer Advocate e-News e-News Subscriptions

https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

Find information on the most recent tax relief provisions for taxpayers affected by disaster situations. See FAQs for Disaster Victims for information about the definition of an affected taxpayer. For prior tax relief provided by the IRS in disaster situations based on FEMA's declarations of individual assistance, please visit Around the Nation. Recent tax relief 2023 AL-2023-01, IRS announces tax relief for victims of January 12 severe storms, straight-line winds, and tornadoes in Alabama GA-2023-01, IRS announces tax relief for victims of severe storms, straight-line winds, and tornadoes in Georgia IR-2023-09, IRS: Georgia, Alabama storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15 IR-2023-03, IRS: California storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15 CA-2023-01, IRS announces tax relief for victims of severe winter storms, flooding, and mudslides in California 2022 NY-2022-09, IRS announces tax relief for victims of severe winter storm in New York FL-2022-20, IRS announces tax relief for victims of Hurricane Nicole NY-2022-08, IRS announces tax relief for severe winter storm and snowstorm in New York IL-2022-08, IRS announces tax relief for Illinois severe storm and flooding IR-2022-185, IRS: Deadline to file 2019 and 2020 tax returns to get COVID penalty relief postponed in declared disaster areas IR-2022-177, IRS expanding dyed diesel penalty relief as a result of Hurricane Ian IR-2022-175, IRS: Don’t miss this important Oct. 17 tax extension deadline SC-2022-06, IRS announces tax relief for victims of Hurricane Ian in South Carolina NC-2022-10, IRS announces tax relief for victims of Hurricane Ian in North Carolina IR-2022-173, IRS: Hurricane Ian victims in the Carolinas qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15 IR-2022-169, IRS granting dyed diesel penalty relief as a result of Hurricane Ian  FL-2022-19, IRS announces tax relief for victims of Hurricane Ian in Florida IR-2022-168, IRS: Hurricane Ian victims in Florida qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15 IR-2022-166, IRS continues relief to drought-stricken farmers and ranchers in 44 states, other regions IR-2022-164, IRS: Alaska storm and flood victims qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15 AK-2022-04, IRS announces tax relief for Alaska severe storm, flooding, and landslides IR-2022-161, IRS: Hurricane Fiona victims in Puerto Rico qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15 PR-2022-10, IRS announces tax relief for Puerto Rico victims of Hurricane Fiona AZ-2022-08, IRS announces tax relief for Arizona severe storms MS-2022-01, IRS announces tax relief for Mississippi water crisis victims IR-2022-156, September is National Preparedness Month; IRS urges everyone to update and secure their records to prepare now for natural disasters MO-2022-07, IRS announces tax relief for Missouri severe storms and flooding victims IR-2022-149, IRS: Missouri storm, flooding victims now eligible for tax relief; Oct. 17 deadline, other dates extended to Nov. 15 VI-2022-01, IRS announces tax relief for island of St. Croix, U.S. VI water shortage IR-2022-145, IRS: Kentucky storm, flooding victims now eligible for tax relief; October 17 deadline, other dates extended to November 15 KY-2022-06, IRS announces tax relief for Kentucky severe storms, flooding, landslide and mudslide victims OK-2022-02, IRS announces tax relief for Oklahoma severe storms, tornadoes and flooding victims MT-2022-01, IRS announces tax relief for Montana severe storm and flooding victims NM-2022-05, IRS announces tax relief for New Mexico wildfires and straight-line winds IR-2022-102, Ahead of hurricane season, IRS offers tips on ways to prepare for natural disasters PR-2022-02, IRS announces tax relief for Puerto Rico severe storms, flooding and landslides TN-2022-01, IRS announces tax relief for Tennessee severe storms, straight-line winds and tornadoes WA-2022-01, IRS announces tax relief for Washington severe storms, straight-line winds, flooding, landslides and mudslides CO-2022-01, IRS announces tax relief for Colorado wildfires and straight-line winds IR-2022-01, For Colorado wildfire victims, IRS extends 2021 tax-filing deadline, other deadlines to May 16 2021 AR-2021-01, IRS announces tax relief for Arkansas victims of severe storms and tornadoes AL-2021-03, IRS announces tax relief for Alabama victims of severe storms and flooding IR-2021-254, Hurricane Ida tax relief extended to February 15 for part or all of six qualifying states TN-2021-02, IRS announces tax relief for Tennessee victims of severe storms, straight-line winds and tornadoes IL-2021-07, IRS announces tax relief for Illinois victims of severe storms, straight-line winds, and tornadoes IR-2021-252, For Illinois and Tennessee tornado victims, IRS extends 2021 tax-filing deadline, other deadlines to May 16 KY-2021-02, IRS announces tax relief for Kentucky victims of severe storms, straight-line winds, flooding and tornadoes IR-2021-248, For Kentucky tornado victims, IRS extends 2021 tax-filing deadline, other deadlines to May 16 IR-2021-230, IRS: All of Mississippi now qualifies for expanded Hurricane Ida relief; Sept. 15, Oct. 15 deadlines, other dates extended to Jan. 3 IR-2021-224, More California wildfire relief from IRS: Sept. 15, Oct. 15 deadlines, other dates further extended to Jan. 3 for certain areas  CT-2021-05, IRS announces tax relief for Connecticut victims of the remnants of Hurricane Ida IR-2021-213, More Ida relief from IRS: Sept. 15, Oct. 15 deadlines, other dates extended to Jan. 3 for parts of Connecticut IR-2021-210, Additional Hurricane Ida relief from IRS: Sept. 15, Oct. 15 deadlines, other dates further extended to Jan. 3 for parts of Mississippi; Nov. 1 deadline still applies to the rest of the state MS-2021-03, IRS announces tax relief for victims of Hurricane Ida in Mississippi IR-2021-193, IRS: Drought-stricken farmers and ranchers have more time to replace livestock IR-2021-187, IRS extends dyed diesel fuel penalty relief in Louisiana due to Hurricanes Ida and Nicholas PA-2021-05, IRS announces tax relief for Pennsylvania victims of Hurricane Ida IR-2021-183, IRS: Tax relief now available to Ida victims in Pennsylvania; Oct. 15 deadline, other dates extended to Jan. 3 NC-2021-01, IRS announces tax relief for North Carolina victims of remnants of Tropical Storm Fred MS-2021-02, IRS announces tax relief for Mississippi victims of Hurricane Ida IR-2021-180, IRS: Hurricane Ida victims in Mississippi now eligible for tax relief; October 15 deadline, other dates extended to November 1 NJ-2021-01, IRS announces tax relief for New Jersey victims of remnants of Hurricane Ida NY-2021-01, IRS announces tax relief for New York victims of remnants of Hurricane Ida IR-2021-179, IRS: Tax relief now available to Ida victims in New York and New Jersey; Oct. 15 deadline, other dates extended to Jan. 3 Tax Tip 2021-131, Understanding what happens after a disaster that leads to taxpayer relief IR-2021-176, IRS grants dyed diesel fuel penalty relief in Louisiana due to Hurricane Ida LA-2021-04, IRS announces tax relief for victims of Hurricane Ida in Louisiana IR-2021-175, IRS: Tax relief now available to victims of Hurricane Ida; Oct. 15 deadline, other dates extended to Jan. 3 IR-2021-174, September is National Preparedness Month; IRS urges taxpayers to prepare for natural disasters TN-2021-01, IRS announces tax relief for victims of severe storms and flooding in Tennessee CA-2021-03, IRS announces tax relief for victims of wildfires in California MI-2021-01, IRS announces tax relief for victims of severe storms, flooding, and tornadoes in Michigan LA-2021-03, IRS announces tax relief for victims of severe storms and flooding in Louisiana   WV-2021-01, IRS announces tax relief for victims of severe storms and flooding in West Virginia IR-2021-112, IRS extends May 17, other tax deadlines for victims of Tennessee  storms; provides special guidelines for disaster area individuals needing further extensions TN-2021-01, IRS announces tax relief for victims of severe storms, straight-line winds, tornadoes, and flooding in Tennessee AL-2021-01, IRS announces tax relief for victims of severe storms, straight-line winds, and tornadoes in Alabama  KY-2021-01, IRS announces tax relief for Kentucky victims of severe storms, flooding, landslides and mudslides LA-2021-02, IRS announces tax relief for Louisiana severe winter storm victims OK-2021-01, IRS announces tax relief for Oklahoma severe winter storm victims IR-2021-43, IRS extends April 15 and other upcoming deadlines, provides other tax relief for victims of Texas winter storms TX-2021-02, IRS announces tax relief for Texas severe winter storm victims TX-2021-01, IRS announces waiver of dyed fuel penalty in Texas LA-2021-01, IRS announces tax relief for Hurricane Zeta victims in Louisiana MS-2021-01, IRS announces tax relief for Hurricane Zeta victims in Mississippi Help for victims of Hurricane Ian IRS is providing a variety of tax relief for those affected by Hurricane Ian. For the latest updates, check the Hurricane Ian page. Help for victims of Alaska Severe Storm, Flooding, and Landslides IRS is providing a variety of tax relief for those affected by Hurricane Fiona. For the latest updates, check the Alaska Severe Storm, Flooding, and Landslides page. Help for victims of Hurricane Fiona IRS is providing a variety of tax relief for those affected by Hurricane Fiona. For the latest updates, check the Hurricane Fiona page. Help for victims of Hurricane Ida IRS is providing a variety of tax relief for those affected by Hurricane Ida. For the latest updates, check the Hurricane Ida page. Relief for California Wildfire victims IRS is providing a variety of tax relief for those affected by the California Wildfires. For the latest updates, check the Tax Help for California Wildfire Victims page. Help for victims of Hurricane Dorian IRS is providing a variety of tax relief for those affected by Hurricane Dorian. For the latest updates, check the Hurricane Dorian page. Help for victims of Hurricane Michael IRS is providing a variety of tax relief for those affected by Hurricane Michael. For the latest updates, check the Hurricane Michael page. Help for victims of Hurricane Florence IRS is providing a variety of tax relief for those affected by Hurricane Florence. For the latest updates, check the Hurricane Florence page. Prior tax relief 2020 Around the Nation News Release Archive — 2020 2019 Around the Nation News Release Archive — 2019 2018 Around the Nation News Release Archive — 2018 Don't see what you're looking for? Publications, FAQs and General Information see Disaster Assistance and Emergency Relief for Individuals and Businesses. Reconstructing Records After a Natural Disaster or Casualty Loss The latest Federal Emergency Management Agency disaster declarations. For information on disaster recovery, visit DisasterAssistance.gov.

https://www.irs.gov/newsroom/tax-scams-consumer-alerts

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals.  The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. See also: How to know it’s really the IRS calling or knocking on your door. Scams Targeting Taxpayers Pandemic-related email scams In a continuing twist on a common scam, the IRS, state tax agencies and tax industry warn tax professionals to beware of evolving phishing scams that use various pandemic-related themes to steal client data. Tax season is prime time for phone scams With the new tax season starting, the IRS reminded taxpayers to be aware that criminals continue to make aggressive calls posing as IRS agents in hopes of stealing taxpayer money or personal information. Tax Tip 2022-15, Taxpayers beware: Tax season is prime time for phone scams IRS, Security Summit partners remind families to make online safety a priority during National Cybersecurity Month  During National Cybersecurity Month, the Internal Revenue Service and its Security Summit partners  urge families to remain vigilant year-round and consider taking additional steps to protect their personal informationPDF. Parents, families and others should be mindful of the potential dangers in sharing devices at home, shopping online and using social media. IR-2022-187, During National Cybersecurity Month, IRS and Security Summit Partners offer tips​​​​​ Charity Fraud Information The Internal Revenue Service joined international efforts to fight charity fraud during  Charity Fraud Awareness Week, October 17-21,  2022. The IRS partners in this effort with charities, regulators, agencies, law enforcement and other not-for-profit stakeholders around the world to raise awareness about fraud and cybercrime that affects charities.  IR-2022-180,  IRS joins effort to fight charity fraud during international recognition week  Beware of OIC Mills – avoid costly promoters advertising settlement with the IRS for “pennies-on-the-dollar” The IRS reminds taxpayers to beware of promoters claiming their services are needed to settle with the IRS, that their debts can be settled for “pennies-on-the-dollar” or that there is a limited window of time to resolve tax debts through the Offer in Compromise (OIC) program. These promoters are often referred to as “OIC Mills.” Find information on OIC Mills in the news release IRS "Dirty Dozen" list warns people to watch out for tax-related scams involving fake charities, ghost preparers and other schemes. Scam targets educational institutions, including students and staff The Internal Revenue Service warned of an ongoing IRS-impersonation scam that appears to primarily target educational institutions, including students and staff who have ".edu" email addresses. IR-2021-68, IRS warns university students and staff of impersonation email scam Tax Tip 2021-42, University students and staff should be aware of IRS impersonation email scam Taxpayers should be on the lookout for new version of SSN scam In the latest twist on a scam related to Social Security numbers, scammers claim to be able to suspend or cancel the victim’s SSN. It’s yet another attempt by con artists to frighten people into returning ‘robocall’ voicemails. Identity theft and unemployment benefits Because of the pandemic, millions of Americans lost jobs permanently or temporarily in 2020 and received unemployment benefits issued by state agencies. However, in some cases, criminals sought to exploit the situation, filing for fraudulent unemployment benefits using stolen identities. Because unemployment benefits are taxable income, states issue Forms 1099-G, Certain Government Payments, to recipients and to the IRS to report the amount of taxable compensation received and any withholding. Box 1 on the form shows "Unemployment Compensation." Taxpayers who received a Form 1099-G for 2020 unemployment compensation that they did not receive should take the steps outlined at Identity Theft and Unemployment Benefits. COVID Tax Tip 2021-24, People should be on the lookout for identity theft involving unemployment benefits Scams related to natural disasters The IRS reminds taxpayers that criminals and scammers try to take advantage of the generosity of taxpayers who want to help victims of major disasters. See: How to avoid fraud and scams after a disaster IRS launches International Charity Fraud Awareness Week IRS warns of scams related to natural disasters Security Summit warns of new IRS impersonation email scam; reminds taxpayers the IRS does not send unsolicited emails The IRS and its Security Summit partners today warned taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email. IRS reminder: Tax scams continue year-round As the new year begins, the IRS reminds taxpayers to protect their personal and financial information throughout the year and watch out for IRS impersonation scams, along with other schemes, that try to trick people out of their hard-earned money. IRS warns of new phone scam using Taxpayer Advocate Service numbers The IRS warns the public about a new twist on the IRS impersonation phone scam whereby criminals fake calls from the Taxpayer Advocate Service. See also: IRS, Security Summit Partners warn of new twist on phone scam; crooks direct taxpayers to IRS.gov to “verify” calls IRS Warning: Don’t be a victim of "ghost" tax return preparers IRS, Summit Partners warn on tax deadline scams, "IRS Refunds" email Scam Alert: IRS urges taxpayers to watch out for erroneous refunds; Beware of fake calls to return money to a collection agency IRS: Don’t be victim to a "ghost" tax return preparer The IRS warns taxpayers to avoid unethical tax return preparers, known as ghost preparers. A ghost preparer is someone who doesn't sign tax returns they prepare. Not signing a return is a red flag that the paid preparer may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund. IRS warns of “Tax Transcript” email scam; dangers to business networks The IRS and Security Summit partners today warned the public of a surge of fraudulent emails impersonating the IRS and using tax transcripts as bait to entice users to open documents containing malware. IRS-Impersonation Telephone Scams A sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be IRS employees, using fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling. Victims are told they owe money to the IRS and it must be paid promptly through a gift card or wire transfer. Victims may be threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn't answered, the scammers often leave an “urgent” callback request. Please See: Consumer Alert: Scammers Change Tactics, Once Again Some thieves have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not trust calls just because they are made through VRS, as interpreters don’t screen calls for validity. For details see the IRS video: Tax Scams via Video Relay Service.  Limited English Proficiency victims are often approached in their native language, threatened with deportation, police arrest and license revocation, among other things. IRS urges all taxpayers caution before paying unexpected tax bills. Please see: IRS Alerts Taxpayers with Limited English Proficiency of Ongoing Phone Scams. Note that the IRS doesn't: Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying. Demand payment without giving you the opportunity to question or appeal the amount they say you owe. Ask for credit or debit card numbers over the phone. Scams Targeting Tax Professionals Increasingly, tax professionals are being targeted by identity thieves. These criminals – many of them sophisticated, organized syndicates - are redoubling their efforts to gather personal data to file fraudulent federal and state income tax returns. The Security Summit has a campaign aimed at tax professionals: Protect Your Clients; Protect Yourself. IRS, Summit partners urge tax pros this summer to take actions to prevent data theft "Protect Your Clients; Protect Yourself — Summer 2022" campaign focuses on a reminder for tax pros to focus on fundamentals and to watch out for emerging vulnerabilities being seen for those practitioners using cloud-based services for their practice. IR-2022-140, Security Summit: Identity Protection PINs provide an important defense against tax-related identity theft IR-2022-135, IRS Security Summit renews warnings for tax pros to guard against identity theft amid continued threats Latest spearphishing scams target tax professionals The IRS, state tax agencies and tax industry warn tax professionals of new email scams that attempt to steal their tax software preparation credentials. Thieves try to steal client data and tax preparers' identities in an attempt to file fraudulent tax returns for refunds. IRS, Summit partners issue urgent EFIN scam alert to tax professionals The IRS, state tax agencies and tax industry warns tax professionals of a new scam email that impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs). These thieves try to steal client data and tax preparers’ identities that will allow them to file fraudulent tax returns for refunds. IRS, Security Summit partners warn tax professionals of fake payroll direct deposit and wire transfer emails. IRS warns tax pros of new scam posing as professional associations. Tax professionals urged to step up security as filing scheme emerges. Tax professionals should review Publication 4557, Safeguarding Taxpayer Data, A Guide for Your BusinessPDF, which provides a checklist to help safeguard information and enhance security. See also: Identity Theft Information for Tax Professionals. Soliciting Form W-2 information from payroll and human resources professionals The IRS has established a process that will allow businesses and payroll service providers to quickly report any data losses related to the W-2 scam currently making the rounds. If notified in time, the IRS can take steps to prevent employees from being victimized by identity thieves filing fraudulent returns in their names. There also is information about how to report receiving the scam email. Report these schemes Email dataloss@irs.gov to notify the IRS of a W-2 data loss and provide contact information. In the subject line, type “W2 Data Loss” so that the email can be routed properly. Do not attach any employee personally identifiable information. Email the Federation of Tax Administrators at StateAlert@taxadmin.org to learn how to report victim information to the states. Businesses/payroll service providers should file a complaint with the FBI’s Internet Crime Complaint Center (IC3.gov). Businesses/payroll service providers may be asked to file a report with their local law enforcement. Notify employees so they may take steps to protect themselves from identity theft. The FTC’s www.identitytheft.gov provides general guidance. Forward the scam email to phishing@irs.gov. See more details at Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers. Employers are urged to put protocols in place for the sharing of sensitive employee information such as Forms W-2. The W-2 scam is just one of several new variations that focus on the large-scale thefts of sensitive tax information from tax preparers, businesses and payroll companies. Tax professionals who experience a data breach also should quickly report the incident to the IRS. See details at Data Theft Information for Tax Professionals. Also see: IRS, States and Tax Industry Warn Employers to Beware of Form W-2 Scam; Tax Season Could Bring New Surge in Phishing Scheme IRS, States and Tax Industry Renew Alert about Form W-2 Scam Targeting Payroll, Human Resource Departments IRS Alerts Payroll and HR Professionals to Phishing Scheme Involving W-2s Surge in Email, Phishing and Malware Schemes Schemes Phishing (as in “fishing for information”) is a scam where fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity.  The IRS has issued several alerts about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information to steal their identity and assets.  Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information. Be alert to bogus emails that appear to come from your tax professional, requesting information for an IRS form. IRS doesn’t require Life Insurance and Annuity updates from taxpayers or a tax professional. Variations can be seen via text messages. The IRS is aware of email phishing scams that include links to bogus web sites intended to mirror the official IRS website. These emails contain the direction “you are to update your IRS e-file immediately.” These emails are not from the IRS. The sites may ask for information used to file false tax returns or they may carry malware, which can infect computers and allow criminals to access your files or track your keystrokes to gain information. Unsolicited email claiming to be from the IRS, or from a related component such as EFTPS, should be reported to the IRS at phishing@irs.gov. For more information, visit the IRS's Report Phishing webpage. Fraudsters Posing as Taxpayer Advocacy Panel Some taxpayers receive emails that appear to be from the Taxpayer Advocacy Panel (TAP) about a tax refund. These emails are a phishing scam, trying to trick victims into providing personal and financial information. Do not respond or click any link. If you receive this scam, forward it to phishing@irs.gov and note that it seems to be a scam phishing for your information. TAP is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and does not have access to, any taxpayer’s personal and financial information. Related Information Other recent tax scams Tell-tale signs of identity theft Security Summit: Tell-tale signs of identity theft tax pros should watch for Evolving email and cloud-based schemes to steal taxpayer data Security Summit warns tax pros of evolving email and cloud-based schemes to steal taxpayer data Latest spear phishing scams Latest spear phishing scams target tax professionals International Fraud Awareness Week A Message from James C. Lee, Chief Criminal Investigation IRS Criminal Investigation Marks International Fraud Awareness Week Highlighting Successes from FY20 In recognition of International Fraud Awareness Week, the IRS is highlighting the many successes in combating fraud and protecting taxpayers. This year was different as half of the year was spent under the new realities that COVID-19 has brought us. Through all the COVID challenges, the IRS was still able to attain many results. For example, we opened more investigations in FY20 than we did in FY19 in most of our program areas, our conviction rate is still the highest in federal law enforcement, and we are the go-to agency for complex financial investigations in the world. A Message from Damon Rowe, Executive Director, IRS Office of Fraud Enforcement Observing International Fraud Awareness Week As part of a continuing focus on tax compliance issues, the IRS created the Office of Fraud Enforcement to support IRS efforts to detect and deter fraud while strengthening the national fraud program. In observation of International Fraud Awareness Week, we will promote the incredible investment the IRS has made in the area of fraud enforcement. This week, we will take part in a global effort to minimize the impact of fraud, including tax fraud, by promoting fraud awareness and education. The IRS's efforts to combat tax and other financial fraud help protect taxpayers around the world and highlight how important fraud prevention is to society. How to report tax-related schemes, scams, identity theft and fraud To report tax-related illegal activities, refer to Tax Scams - How to Report Them. You should also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 800-366-4484. Taxpayers who experience tax-related identity theft may wonder when they should file a Form 14039, Identity Theft Affidavit. When to file a Form 14039, Identity Theft Affidavit Additional scam-related information Security Summit - Learn more about how the IRS, representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators are working together to combat identity theft and refund fraud. Taxes-Security-Together - We all have a role to play in protecting your data National Tax Security Awareness Week 2022 Tax Scams — How to Report Them  Criminal Investigation's Tax Fraud Alerts State ID Theft Resources - State information on what to do if you or your employees are victims of identity theft. IRS Dirty Dozen – The annually compiled list enumerates a variety of common scams that taxpayers may encounter. IRS YouTube videos Tax Scams via Video Relay Service in ASL

https://www.irs.gov/newsroom/the-tax-gap

Tax Gap Estimates for Tax Years 2014-2016 The Internal Revenue Service periodically estimates the tax gap to gauge historical overall compliance of all types of taxpayers with their federal tax obligations. The estimates take into account federal taxes due as well as refundable and non-refundable tax credits. In general, the tax gap estimates dating back decades consistently show the United States enjoys a relatively high and stable voluntary tax compliance rate. Sustaining and improving taxpayer compliance is important because small declines in compliance cost the nation billions of dollars in lost revenue and shift the tax burden away from those who don't pay their taxes onto those who pay their fair share on time every year. Understanding the elements of the tax gap enables policymakers and tax administrators to make better decisions regarding how to allocate resources used to administer the tax code. All initiatives by the IRS to improve tax collection are intended to narrow the tax gap and increase compliance. The tax gap estimates on tax years 2014 through 2016 showing the estimated gross tax gap increased to $496 billion, a rise of over $58 billion from the prior estimate. The gross tax gap is the difference between estimated 'true' tax liability for a given period and the amount of tax that is paid on time. After late payments and IRS efforts collected an additional $68 billion, the IRS estimated the net tax gap was $428 billion. This increase in the tax gap can be attributed to economic growth. Between the two periods, 2011-2013 and 2014-2016, the estimated tax liability increased by more than 23 percent. The tax gap estimates translate to about 85% of taxes paid voluntarily and on time, which is in line with recent levels. The new estimate is a slight improvement from 83.7 percent in a revised Tax Year 2011-2013 estimate, which dipped slightly from the original estimate released earlier. After IRS compliance efforts are taken into account, the estimated share of taxes eventually paid is 87% for 2014-2016. The gross tax gap comprises three components: Nonfiling (tax not paid on time by those who do not file on time, $39 billion), Underreporting (tax understated on timely filed returns, $398 billion), and Underpayment (tax that was reported on time, but not paid on time, $59 billion). A particular challenge for tax gap estimation is the time it takes to collect compliance data, especially data on underreporting that come from completed examinations (audits). To address this issue, the current release includes estimated tax gap projections for Tax Years 2017-2019. Based on the projections for 2017-2019, the estimated average gross tax gap is projected to be $540 billion per year. The associated voluntary compliance rate is projected to be 85.1 percent. The projection of enforced and other late payments is $70 billion, which yields a net tax gap projection of $470 billion. The associated non-compliance rate projection is 87.0 percent. The gross tax gap nonfiling, underreporting, and underpayment component projections for Tax Years 2017-2019 timeframe are $41 billion, $433 billion, and $66 billion respectively. Given the complexity of the tax system and available data, no single approach can be used for estimating each component of the tax gap. Each approach is subject to measurement or nonsampling error; the component estimates that are based on samples are also subject to sampling error. Given available data, these are the best possible estimates of the tax gap components presented, although they do not represent the full extent of potential non-compliance. Federal Tax Compliance Research: Tax Gap Estimates for Tax Years 2014–2016 (Publication 1415)PDF Tax Gap Estimates for Tax Years 2011-2013 The Internal Revenue Service periodically estimates the tax gap to gauge historical overall compliance of all types of taxpayers with their federal tax obligations. The estimates take into account federal taxes due as well as refundable and non-refundable tax credits. In general, the tax gap estimates dating back decades consistently show the United States enjoys a relatively high and stable voluntary tax compliance rate. Sustaining and improving taxpayer compliance is important because small declines in compliance cost the nation billions of dollars in lost revenue and shift the tax burden away from those who don't pay their taxes onto those who pay their fair share on time every year. Understanding the elements of the tax gap enables policymakers and tax administrators to make better decisions regarding how to allocate resources used to administer the tax code. All initiatives by the IRS to improve tax collection are intended to narrow the tax gap and increase compliance. The latest estimates for tax years 2011, 2012 and 2013 show the nation's tax compliance rate is substantially unchanged from prior years. The average gross tax gap was estimated at $441 billion per year based on data from those three years. After late payments and enforcement efforts were factored in, the net tax gap was estimated at $381 billion. The tax gap estimates translate to about 83.6%, of taxes paid voluntarily and on time, which is in line with recent levels. The new estimate is essentially unchanged from a revised Tax Year 2008-2010 estimate of 83.8%. After enforcement efforts are taken into account, the estimated share of taxes eventually paid is 85.8% for both periods. And it is line with the TY 2001 estimate of 83.7% and the TY 2006 estimate of 82.3%. Federal Tax Compliance Research: Tax Gap Estimates for Tax Years 2011–2013 (Publication 1415)PDF Tax Gap Estimates for Tax Years 2008-2010 IRS Statement on the Tax Gap Update The IRS periodically estimates the tax gap, which gives a broad view of the nation's compliance with federal tax laws. The new study covers tax years 2008-2010. The report finds that there has been no significant change in the amount of the tax gap or the rate of compliance since the last report was issued for tax year 2006. The average annual tax gap for 2008-2010 is estimated to be $458 billion, compared to $450 billion for tax year 2006. IRS enforcement activities and late payments resulted in an additional $52 billion in tax paid, reducing the net tax gap for the 2008-2010 period to $406 billion per year. The voluntary compliance rate is now estimated at 81.7 percent compared to the prior estimated rate of 83.1 percent. After accounting for enforcement and late payments, the net compliance rate is 83.7 percent. The small increase in the estimated size of the tax gap and small decrease in the voluntary compliance rate are largely attributable to improvements in the tax gap estimation methodology, and do not represent a significant change in underlying taxpayer behavior. The changes also reflect the overall decline in the nation's tax revenues due to the severe recession during the time period covered by this study, as well as changes in the mix of income sources that have different compliance rates. A high level of voluntary tax compliance remains critical to help ensure taxpayer faith and fairness in the tax system. Those who don't pay what they owe ultimately shift the tax burden to those who properly meet their tax obligations. The new tax gap estimate updates long-standing research findings that information reporting and withholding are strongly associated with higher levels of voluntary compliance. The IRS continues to look for ways to keep the voluntary compliance rate high, including educational efforts aimed at preparers and taxpayers, ongoing efforts to improve compliance in the international tax arena, and working with businesses on employment tax issues. Tax Gap Estimates for Tax Years 2008–2010PDF Tax Gap Estimates for Tax Year 2006 The IRS released a set of tax gap estimates for tax year 2006. These estimates represent the first full update of the report in five years; the update showed that the nation's compliance rate was essentially unchanged at about 83 percent from the review covering tax year 2001. Tax Gap Map 2006PDF Overview Tax Gap 2006PDF Summary of Methods Tax Gap 2006PDF Additional information: IR-2022-192, IRS updates tax gap estimates; new data points the way toward enhancing taxpayer service, compliance efforts Tax Gap Executive Summary (Publication 5364)PDF Tax Gap Map (Publication 5365)PDF

https://www.irs.gov/newsroom/e-news-subscriptions

The IRS offers several e-News subscriptions on a variety of tax topics. Below are links and information about subscribing. When you subscribe, you will receive a confirmation message by email. Remember, you must respond to this email to verify your subscription. You can easily unsubscribe from any of the offerings. News Releases, Tax Law Updates and General Tax Information IRS Tax Tips Subscribe to Tax Tips to get brief, concise tips in plain language covering a wide-range of topics, including: Latest on tax scams and schemes COVID Tax Tips, which help people understand the help the IRS is offering to those affected by coronavirus (COVID-19) Common tax preparation errors to avoid Where to receive free tax help Tax deductions and credits guidance Filing for an extension or amending your return Related Links: Tax Reform resources and tips Extension to file  IRS Newswire Subscribe to IRS Newswire and receive news releases issued by the IRS Media Relations Office in Washington, D.C. on the entire range of tax administration issues, including : Breaking news and announcements Tax law changes Filing season updates Filing statistics Alerts on tax scams and identity theft Subscribers to IRS Newswire may receive an average of two to three news releases each week. Related Links: IRS Newsroom IRS Guidewire Subscribe to IRS Guidewire to receive notifications of technical tax guidance issued by the IRS in advance of publication of the Internal Revenue Bulletin, including: Announcements Notices Revenue rulings Procedures Regulations Subscribers may receive more than one newsletter each week, however, as these items are issued as needed. There may be weeks when no guidance items are issued. Note: IRS Guidewire provides the majority of Internal Revenue Bulletin items, usually a week or more before the bulletin is published.  Subscribers will not receive all IRS guidance, only guidance issued in advance of its publication in the Internal Revenue Bulletin; for a publication of all IRS guidance, see the Internal Revenue Bulletin. Related Links: Understanding IRS Guidance Priority Guidance Plan IRS News in Spanish (Noticias del IRS en Español) Subscribe to IRS News in Spanish (Noticias del IRS en Español)  with tax  tips and updates in Spanish. By subscribing to the IRS News in Spanish, you will also receive IRS Tax Reform Tax Tips. These tips can help you learn about tax reform issues. Tax tips and IRS press releases in Spanish are brief, go straight to the point and cover a variety of topics, including: Alerts about taxes Alerts about scams, frauds and problems Information on tax reform Common errors to avoid in your tax return Where to get free help with your taxes Guidance on deductions and tax credits available How e-file can file taxes faster and easier How to request an extension or correct your statement Alerts from Office of Professional Responsibility (OPR) Subscribe to The Office of Professional Responsibility alerts to receive current and up-to-date news and information for the tax professional community, including: OPR disciplinary actions Press releases New items Rules and updates governing those who practice before the IRS Educational information about OPR, its mission and priorities Related Links: The Office of Professional Responsibility Information for Tax Professionals Tax Statistics Subscribe to Tax Statistics to receive announcements for the most recent tax statistics released to the public from the Statistics of Income Division at the IRS. 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Related Link: Withholding Agents Foreign Account Tax Compliance Act (FATCA) News & Information Subscribe to receive FATCA news and information updates on the latest IRS news, guidance, regulations and other public information that may affect the following: Individuals with foreign accounts Foreign financial institutions registration, reporting and withholding requirements Non-Financial foreign entities Tax and compliance professionals Related Links: Foreign Account Tax Compliance Act (FATCA) Form 8957, Foreign Account Tax Compliance Act (FATCA) Registration Bipartisan Budget Act (BBA) Partnerships Subscribe to e-News for Bipartisan Budget Act (BBA) partnerships to receive notification of updates to the BBA web pages, including: BBA Centralized Partnership Audit Regime Designate a Partnership Representative Elect Out of the Centralized Partnership Audit Regime File an Administrative Adjustment Request under Bipartisan Budget Act of 2015 (BBA) BBA Partnership Audit Process Electronic Submission of Forms by Audited BBA Partnerships and their Pass Through Partners OFSS Status (when unavailable due to scheduled or unscheduled maintenance) Employee Plans e-News for Employee Plans Subscribe to Employee Plans news to receive news about retirement plan information for retirement plan practitioners, including attorneys, accountants, actuaries and others, such as: Upcoming benefits conferences New developments affecting retirement plans New guidance and regulations Current determinations and examination activities Related Links: About Employee Plans Retirement Plans Tax Exempt & Government Entities Indian Tribal Governments News Subscribe to Indian Tribal Governments news to receive email updates about recent developments, including: Casino issues Payroll taxes Tip income Information reporting Fraud and abusive schemes Related Links: Indian Tribal Governments FAQs Tax Information for Indian Tribal Governments Tax Exempt Bond Community News Sign up for Tax Exempt Bond Community updates to receive information from the IRS about tax policy issues, IRS programs and services, and other information of interest for tax professionals and representatives to the Tax Exempt Bond Community, such as: IRS news releases, laws and regulations Tax policy issues Programs and services offered New forms, guidance and other publications Changes and additions to the Tax Exempt Bonds section Related Link: About Tax Exempt Bonds e-News for Exempt Organizations Subscribe to Exempt Organization news to receive free e-mail updates from the IRS about issues of tax policy, services and available information for tax professionals and representatives that impact tax-exempt organizations, such as: News releases New forms, guidance and other publications Changes and additions to the IRS Charities and Nonprofits webpages Upcoming IRS training and outreach events Related Link:  Charities and Nonprofits Federal, State & Local Governments (FSLG) News Subscribe to Federal, State & Local news to receive information about current developments and upcoming events on federal tax matters for all types of government entities, including: Calendar of outreach events (conferences, seminars, etc.) Compensation and fringe benefit issues Information return reporting News and reminders from the Social Security Administration Activities of the National Conference of State Social Security Administrators Recent tax law changes Related Link: Tax Information for Federal, State, and Local Governments   Outreach Connection Get free tax content to share with your staff, clients, customers or colleagues. 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https://www.irs.gov/newsroom/irs-guidance

IRS Guidance in Plain English This is a starting point for understanding some of the basic guidance issued by the IRS. Internal Revenue Bulletins The Internal Revenue Bulletin (IRB) is the authoritative instrument of the IRS for announcing all substantive rulings necessary to promote a uniform application of tax law. Issues after June 2003 are available in both HTML and PDF formats; earlier issues are in PDF only. After June 2003 After June 1995 - PDF only Advance Notices The IRS sometimes releases Rulings, Procedures and other technical items in advance of publishing them in the Internal Revenue Bulletin. The full text of these advance notices is available in PDF format. This list’s filenames are based on the items’ designations — for example, Announcement 2003-40 is “a-03-40,” Notice 2003-30 is “n-03-30,” Revenue Procedure 2003-50 is "rp-03-50” and Revenue Ruling 2003-60 is "rr-03-60." Tax Regulations In addition to the regulations that interpret the tax laws, there are links to various technical resources. Internal Revenue Code The codified collection of U.S. laws on income, estate and gift, employment and excise taxes, plus administrative and procedural provisions. IRS Written Determinations Rulings or determinations issued by the IRS, including Technical Advice Memoranda and Chief Counsel Advice. Sorted by most recent publication number, the listing may also be sorted by Uniform Issue List codes. FOIA Library A collection of links to published guidance, rulings, administrative manuals and other items.

https://www.irs.gov/newsroom/irs-media-relations-office-contact-number

Representatives of national, state and local news media outlets may contact the Media Relations Office listed below for assistance. Please note that this office is established solely for responding to inquiries from the press (news media).  Questions and account inquiries from the general public and businesses cannot be handled by this office. Media Relations Office Telephone: 202-317-4000

https://www.irs.gov/newsroom/irs-issues-2021-filing-season-frequently-asked-questions-information-to-help-taxpayers-preparing-their-2021-returns

IR-2022-21, January 31, 2022 WASHINGTON — These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-06PDF, January 31, 2022. The American Rescue Plan Act (ARPA) of 2021 expanded the Child Tax Credit (CTC) for tax year 2021 only. These Child Tax Credit FAQs focus on information helpful to taxpayers preparing their tax year 2021 tax returns. Recipients of advance Child Tax Credit payments will need to compare the amount of payments received during 2021 with the amount of the Child Tax Credit that can be claimed on their 2021 tax return. Those that received less than the amount they are eligible for can claim a credit for the remaining amount. Those that received more than they are eligible for may need to repay some or all of the excess amount. The IRS has sent Letter 6419 in January 2022 to provide the total amount of advance Child Tax Credit payments that were received in 2021. The IRS urges taxpayers receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022. These FAQs contain the following topics: Topic A: 2021 Child Tax Credit Basics Topic B: Eligibility Rules for Claiming the 2021 Child Tax Credit on a 2021 Tax Return Topic C: Reconciling Advance Child Tax Credit Payments and Claiming the 2021 Child Tax Credit on Your 2021 Tax Return Topic D: Claiming the 2021 Child Tax Credit If You Don't Normally File a Tax Return Topic E: Commonly Asked Immigration-Related Questions More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/eitc-awareness-day-important-changes-mean-more-people-qualify-for-credit-that-helps-millions-of-americans

IRS YouTube Video: Earned Income Tax Credit (EITC) Can Put More Money in Your Pocket IR-2022-20, January 28, 2022 WASHINGTON – More people without children now qualify for the Earned Income Tax Credit (EITC), the federal government's largest refundable tax credit for low- to moderate-income families. In addition, families can use pre-pandemic income levels to qualify if it results in a larger credit. The Internal Revenue Service and partners across the nation highlight those changes today as they mark the 16th annual EITC Awareness Day. Enacted in 1975, EITC is regarded as one of the government's largest antipoverty programs helping millions of American families every year. The IRS and partners nationwide urge people to check to see if they qualify for this important credit, and also urge people who don't normally file a tax return to review whether they qualify for EITC and other valuable credits like the Child Tax Credit or the Recovery Rebate Credit, also referred to as stimulus payments. "There are important changes to EITC that will help this credit reach more hard-working families this year," said IRS Commissioner Chuck Rettig. "We urge people potentially eligible for this valuable credit to review the guidelines; many people each year overlook this and leave money on the table. On this EITC Awareness Day, we want to make sure everyone who qualifies for the credit knows about it and has the information they need to get it." The IRS began accepting 2021 tax returns on January 24, 2022. Taxpayers can ensure they're getting all the credits and deductions for which they qualify, including EITC, by filing their taxes electronically, using a trusted tax professional or using an IRS Free File partner's name-brand software. Taxpayers whose adjusted gross income (or AGI) is $73,000 or less qualify for Free File partner offers. The IRS also reminds taxpayers that the quickest way to get a tax refund is by filing an accurate tax return electronically and choosing direct deposit for their refund. Tax software, tax professionals and other free options can help people see if they qualify for the EITC. What's new? Childless EITC expanded for 2021 For 2021 only, more childless workers and couples can qualify for the EITC, and the maximum credit is nearly tripled for these taxpayers. For the first time, the credit is now available to both younger workers and senior citizens. For 2021, the EITC is generally available to filers without qualifying children who are at least 19 years old with earned income below $21,430; $27,380 for spouses filing a joint return. The maximum EITC for filers with no qualifying children is $1,502, up from $538 in 2020. There are also special exceptions for people who are 18 years old and were formerly in foster care or are experiencing homelessness. Full-time students under age 24 don't qualify. There is no upper age limit for claiming the credit if taxpayers have earned income. In the past, the EITC for those with no dependents was only available to people ages 25 to 64. Income from 2019 Another change for 2021 allows individuals to figure the EITC using their 2019 earned income if it was higher than their 2021 earned income. To qualify for the EITC, people must have earned income through employment or other sources, so this option may help workers get a larger credit if they earned less in 2021 or received unemployment income instead of their regular wages. See the instructions for Form 1040PDF, line 27 c. Phase out and credit limits For 2021, the amount of the credit has been increased and the phaseout income limits at which taxpayers can claim the credit have been expanded. For instance, the maximum EITC for a married couple filing jointly with three or more children is $6,728 and the upper-income level for that same family is $57,414. In 2020, the maximum EITC for a family in that situation was $6,660 and the upper-income level was $56,844. Taxpayers should also note that any Economic Impact Payments or Child Tax Credit payments received are not taxable or counted as income for purposes of claiming the EITC. Eligible individuals who did not receive the full amounts of their Economic Impact Payments may claim the Recovery Rebate Credit on their 2021 tax return. See IRS.gov/rrc for more information. 2021 and beyond New law changes expand the EITC for 2021 and future years. These changes include: More workers and working families who also have investment income can get the credit. Starting in 2021, the amount of investment income they can receive and still be eligible for the EITC increases to $10,000. In 2020, the limit was $3,650. After 2021, the $10,000 limit is indexed for inflation. Married but separated spouses can choose to be treated as not married for EITC purposes. To qualify, the spouse claiming the credit cannot file jointly with the other spouse, must have a qualifying child living with them for more than half the year and either: Do not have the same principal residence as the other spouse for at least the last six months out of the year. Are legally separated according to their state law under a written separation agreement or a decree of separate maintenance and not live in the same household as their spouse at the end of the tax year for which the EITC is being claimed. Taxpayers should file Schedule EIC (Form 1040) and check the box showing them as married filing separately with a qualifying child. In the past, married taxpayers had to file with their spouse to claim the EITC. Single people and couples with children who have Social Security numbers can claim the credit, even if their children do not have SSNs. In this instance, they would get the smaller credit available to childless workers. In the past, these filers didn't qualify for the credit. Taxpayers should file Schedule EIC (Form 1040) if they have a qualifying child. If they have at least one child who meets the conditions to be their qualifying child for purposes of claiming the EITC, they should complete and attach Schedule EIC to their Form 1040 or 1040-SR even if that child doesn't have a valid SSN. For more information, including how to complete Schedule EIC if your qualifying child doesn't have a valid SSN, see the instructions for Form 1040PDF, line 27a, and Schedule EIC. Vital refund boost The EITC is the federal government's largest refundable federal income tax credit for low- to moderate-income workers. For those who qualify, and if the credit is larger than the amount of tax they owe, they will receive a refund for the difference. While the majority of those eligible claim the EITC every year, IRS estimates that one of five eligible taxpayers do not claim the credit. Nationwide last year, almost 25 million eligible workers and families received over $60 billion in EITC allowing for the payment of necessities, housing, and educational training, with an average EITC nationwide of $2,411. For 2021, the EITC is worth as much as $6,728 for a family with three or more children or up to $1,502 for taxpayers who do not have a qualifying child. Look for EITC Refunds by early March if no issues with tax return By law, the IRS cannot issue refunds before mid-February for tax returns that claim the EITC or the Additional Child Tax Credit (ACTC). The IRS must hold the entire refund − even the portion not associated with the EITC or ACTC and the Recovery Rebate Credit if applicable. This helps ensure taxpayers receive the refund they deserve and gives the agency more time to detect and prevent errors and fraud. Where’s My Refund? on IRS.gov and the IRS2Go app will be updated with projected deposit dates for most early EITC/ACTC refund filers by February 19. Therefore, EITC/ACTC filers will not see an update to their refund status for several days after February 15. Due to weekends and other factors, the IRS expects most EITC or ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they choose direct deposit and there are no other issues with their tax return.  Workers who can claim the EITC Workers at risk for overlooking this important credit include taxpayers: Without children, including those workers who are at least 19 years old and older than 64 Living in non-traditional families, such as a grandparent raising a grandchild Whose earnings declined or whose marital or parental status changed With limited English language skills Who are members of the armed forces Living in rural areas Who are Native Americans With disabilities or who provide care for a disabled dependent How to claim the EITC To get the EITC, workers must file a tax return and claim the credit. Eligible taxpayers should claim the credit even if their earnings were below the income requirement to file a tax return. Free tax preparation help is available online and through volunteer organizations. Those eligible for the EITC have these options: Find a trusted tax professional. The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. Tips for choosing a return preparer, including certified public accountants, enrolled agents, attorneys and many others who don't have a professional credential, and details about national tax professional groups are available on IRS.gov. EITC recipients should be careful not to be duped by an unscrupulous return preparer. Free File on IRS.gov. Free brand-name tax software is available that leads taxpayers through a question-and-answer format to help prepare the tax return and claim credits and deductions if they're eligible. Free File also provides online versions of IRS paper forms, an option called Free File Fillable Forms, best suited for taxpayers comfortable preparing their own returns. Free tax preparation sites. EITC-eligible workers can seek free tax preparation at thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest site, use the search tool on IRS.gov, the IRS2Go smartphone application, or call toll-free 800-906-9887. Taxpayers should bring all required documents and information. The IRS reminds taxpayers to be sure they have valid Social Security numbers for themselves, their spouse if filing a joint return, and for each qualifying child claimed for the EITC. The SSNs must be issued before the due date of the return, including extensions. There are special rules for those in the military or those out of the country. Avoid errors Taxpayers are responsible for the accuracy of their tax return even if someone else prepares it for them. Since the rules for claiming the EITC can be complex, the IRS urges taxpayers to understand all of them. People can find help to make sure they're eligible by visiting a free tax return preparation site, or using Free File software or by using a paid tax professional. Beware of scams Be sure to choose a tax preparer wisely. Beware of scams that claim to increase the EITC refund. Scams that create fictitious qualifying children or inflate income levels to get the maximum EITC could leave taxpayers with a penalty. Visit IRS online IRS.gov is a valuable first stop to help taxpayers get it right this filing season. Information on other tax credits, such as the Child Tax Credit, is also available. Related items EITC Central, helpful resources for IRS partners and others. Publication 596, Earned Income Credit (EIC). Tax Professionals, another place for valuable EITC resources and assistance.

https://www.irs.gov/newsroom/all-third-economic-impact-payments-issued

IR-2022-19, January 26, 2022 WASHINGTON — The Internal Revenue Service announced today that all third-round Economic Impact Payments have been issued and reminds people how to claim any remaining stimulus payment they're entitled to on their 2021 income tax return as part of the 2021 Recovery Rebate Credit. Parents of a child born in 2021 – or parents and guardians who added a new qualifying child to their family in 2021 – did not receive a third-round Economic Impact Payment for that child and may be eligible to receive up to $1,400 for the child by claiming the Recovery Rebate Credit. While some payments of the Economic Impact Payments from 2021 may still be in the mail, including, supplemental payments for people who earlier this year received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns. The IRS is no longer issuing payments as required by law. Through December 31, the IRS issued more than 175 million third-round payments totaling over $400 billion to individuals and families across the country while simultaneously managing an extended filing season in 2021. Third-round Economic Impact Payments were advance payments of the 2021 Recovery Rebate Credit. In late January, the IRS began issuing Letter 6475, Your Third Economic Impact Payment, to recipients of the third-round Economic Impact Payment. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their 2021 tax returns when they file in 2022. The American Rescue Plan Act of 2021, signed into law on March 11, 2021, authorized a third round of Economic Impact Payments and required them to be issued by December 31, 2021. The IRS began issuing these payments on March 12, 2021 and continued through the end of the year. Eligible parents of children born in 2021 and families that added qualifying dependents in 2021 should claim the 2021 Recovery Rebate Credit; most other eligible people already received the full amount and won’t need to claim a credit on their tax return The third-round Economic Impact Payment was an advance payment of the tax year 2021 Recovery Rebate Credit. The amount of the third-round Economic Impact Payment was based on the income and number of dependents listed on an individual's 2019 or 2020 income tax return. The amount of the 2021 Recovery Rebate Credit is based on the income and number of dependents listed on an individual's 2021 income tax return. Families and individuals in the following circumstances, among others, may not have received the full amount of their third-round Economic Impact Payment because their circumstances in 2021 were different than they were in 2020. These families and individuals may be eligible to receive more money by claiming the 2021 Recovery Rebate Credit on their 2021 income tax return: Parents of a child born in 2021 who claim the child as a dependent on their 2021 income tax return may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400 for this child. All eligible parents of qualifying children born or welcomed through adoption or foster care in 2021 are also encouraged to claim the child tax credit — worth up to $3,600 per child born in 2021 — on their 2021 income tax return. Families who added a dependent – such as a parent, a nephew or niece, or a grandchild – on their 2021 income tax return who was not listed as a dependent on their 2020 income tax return may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400 for this dependent. Single filers who had incomes above $80,000 in 2020 but less than this amount in 2021; married couples who filed a joint return and had incomes above $160,000 in 2020 but less than this amount in 2021; and head of household filers who had incomes above $120,000 in 2020 but less than this amount in 2021 may be eligible for a 2021 Recovery Rebate Credit of up to $1,400 per person. Single filers who had incomes between $75,000 and $80,000 in 2020 but had lower incomes in 2021; married couples who filed a joint return and had incomes between $150,000 and $160,000 in 2020 but had lower incomes in 2021; and head of household filers who had incomes between $112,500 and $120,000 in 2020 but had lower incomes in 2021 may be eligible for a 2021 Recovery Rebate Credit. Individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return in order to get this money; the IRS will not automatically calculate the 2021 Recovery Rebate Credit. The IRS began accepting 2021 income tax returns on January 24. Most other eligible people already received the full amount of their credit in advance and don't need to include any information about this payment when they file their 2021 tax return. The IRS issued additional payments – called "Plus-Up" Payments – to individuals who initially received a third-round Economic Impact Payment based on information on their 2019 tax return and were eligible for a larger amount based on information on their 2020 tax return. Avoid processing delays when claiming the 2021 Recovery Rebate Credit The IRS strongly encourages people to have all the information they need to file an accurate return to avoid processing delays. If the return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund. To claim the 2021 Recovery Rebate Credit, individuals will need to know the total amount of their third-round Economic Impact Payment, including any Plus-Up Payments, they received. People can view the total amount of their third-round Economic Impact Payments through their individual Online Account. The IRS will also send Letter 6475 through March to those who were issued third-round payments confirming the total amount for tax year 2021. For married individuals filing a joint return with their spouse, each spouse will need to log into their own Online Account or review their own letter for their portion of their couple's total payment. The IRS urges recipients of stimulus payments to carefully review their tax return before filing. Having this payment information available while preparing the tax return will help individuals determine if they are eligible to claim the 2021 Recovery Rebate Credit for missing third-round stimulus payments. If eligible for the credit, they must file a 2021 tax return. Using the total amount of the third payments from the individual's online account or Letter 6475 when filing a tax return can reduce errors and avoid delays in processing while the IRS corrects the tax return. The Get My Payment application will no longer be available as of January 29, 2022, and individuals are encouraged to access Online Account to view their first-, second-, and third-round Economic Impact Payment amounts under Tax Records. File electronically, and choose direct deposit The amount of the 2021 Recovery Rebate Credit will reduce the amount of tax owed for 2021, or, if it's more than the tax owed, it will be included as part of the individual's 2021 tax refund. Individuals will receive their 2021 Recovery Rebate Credit included in their refund after the 2021 tax return is processed. The 2021 Recovery Rebate Credit will not be issued separately from the tax refund. To avoid processing delays, the IRS urges people to file a complete and accurate tax return. Filing electronically allows tax software to figure credits and deductions, including the 2021 Recovery Rebate Credit. The 2021 Recovery Rebate Credit Worksheet on Form 1040 and Form 1040-SR instructions can also help. The fastest and most secure way for eligible individuals to get their 2021 tax refund that will include their allowable 2021 Recovery Rebate Credit is by filing electronically and choosing direct deposit. Anyone with income of $73,000 or less, including those who don't have a tax return filing requirement, can file their federal tax return electronically for free through the IRS Free File program. The fastest and most secure way to get a tax refund is to file electronically and have it direct deposited — contactless and free — into the individual's financial account. Bank accounts, many prepaid debit cards, and several mobile apps can be used for direct deposit when taxpayers provide a routing and account number. IRS.gov/filing has details about IRS Free File, Free File Fillable Forms, free VITA or TCE tax preparation sites in communities or finding a trusted tax professional. Claim 2020 Recovery Rebate Credit for missing first- or second-round Economic Impact Payments All first- and second-round Economic Impact Payments have been issued. The first- and second-round Economic Impact Payments were an advance payment of tax year 2020 Recovery Rebate Credit. People who didn't qualify for a first- and second- Economic Impact Payment or got less than the full amounts may be eligible to claim the 2020 Recovery Rebate Credit on a 2020 income tax return. Individuals will need to file a 2020 tax return if they have not filed yet or amend their 2020 income tax return if it's already been processed. If the individual's 2020 income tax return has not yet been fully processed, the individual should not file a second return. Some returns need special handling to correct errors or credit amounts, which can delay processing. The IRS is having to correct significantly more errors on 2020 tax returns than in previous years. If the IRS corrects the credit claimed on the return, the IRS will send a letter with an explanation. More information Online Account Information Recovery Rebate Credit 2021 Recovery Rebate Credit Frequently Asked Questions 2020 Recovery Rebate Credit Frequently Asked Questions

https://www.irs.gov/newsroom/irs-begins-2022-tax-season-urges-extra-caution-for-taxpayers-to-file-accurate-tax-returns-electronically-to-speed-refunds-avoid-delays

IR-2022-18, January 24, 2022 WASHINGTON — The Internal Revenue Service today kicked off the 2022 tax filing season with an urgent reminder to taxpayers to take extra precautions this year to file an accurate tax return electronically to help speed refunds. The start of this year's tax season – which takes place earlier than last year's February 12 opening – signals the IRS is now accepting and processing 2021 tax returns. More than 160 million individual tax returns for the 2021 tax year are expected to be filed, with most before the April 18 tax deadline. Most taxpayers face an April 18 deadline this year due to the Emancipation Day holiday in Washington, DC falling on April 15. Taxpayers in Massachusetts and Maine will have an April 19 deadline due to Patriots Day; disaster victims have later filing deadlines in some locations. IRS Commissioner Chuck Rettig noted that taxpayers need to take special care this year due to several critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic. "IRS employees are working hard to deliver a successful 2022 tax season while facing enormous challenges related to the pandemic," Rettig said. "There are important steps people can take to ensure they avoid processing delays and get their tax refund as quickly as possible. We urge people to carefully review their taxes for accuracy before filing. And they should file electronically with direct deposit if at all possible; filing a paper tax return this year means an extended refund delay." For most taxpayers who file a tax return with no issues, the IRS anticipates they will receive their refund within 21 days of when they file electronically if they choose direct deposit – similar to previous years. Last year's average tax refund was more than $2,800. "There are simple steps that people can take that will help them navigate this challenging tax season," Rettig said. "Filing electronically and using online resources instead of calling are just some of the steps that can help people avoid delays." "IRS employees will do everything possible with the available resources to serve taxpayers this year," Rettig said. "We will work hard to deliver refunds quickly, serve as many people as possible and work to catch up on past tax returns affected by the pandemic. The IRS thanks you for filing your taxes, a critical part of helping our great nation." IRS tips for a smooth filing season: Fastest refunds by e-filing, avoiding paper returns: Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year to avoid refund delays. If you need a tax refund quickly, do not file on paper – use software, a trusted tax professional or Free File on IRS.gov. Avoid delays; file an accurate tax return: More than ever this year, the IRS urges people to make sure they're ready to file an accurate tax return. An accurate tax return can avoid processing delays, extensive refund delays and later IRS notices. Special care for EIP, advance Child Tax Credit recipients: The IRS also encourages caution to those people who received a third Economic Impact Payment or advance Child Tax Credit in 2021. Taxpayers should ensure the amounts they've received are entered correctly on the tax return. Incorrect entries when reporting these payments mean the IRS will need to further review the tax return, creating an extensive delay. To help taxpayers, the IRS is mailing special letters about the stimulus payments and advance Child Tax Credit payment amounts. People can also check the amount of their payments in their Online Account available on IRS.gov. Earned Income Tax Credit or Additional Child Tax Credit refunds: By law, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, though eligible people may file their returns beginning on January 24. The law provides this additional time to help the IRS stop fraudulent refunds from being issued. Avoid phone delays; online resources best option for help: IRS.gov is the quickest and easiest option for help. IRS assisted phone lines continue to receive record numbers of calls, more than the agency can handle with its limited resources. Avoid delays: Check IRS.gov first for refund information and answers to tax questions. Establishing an Online Account on IRS.gov can also help taxpayers get information quickly. The Online Account feature has recently been expanded to allow more people to gain access. Don't normally file a return? Consider filing for CTC, other valuable credits: For people who don't normally file a tax return and didn't file a 2020 return or use the Non-Filers tool, they can still qualify for important credits they're eligible for, including the Recovery Rebate Credit (stimulus payment), advance Child Tax Credit or the Earned Income Tax Credit. The IRS encourages people in this group to file a 2021 tax return so they can receive all the credits for which they're eligible. Online options for free help; answers to common questions: Use IRS.gov to get answers to tax questions, check a refund status or pay taxes. There's no wait time or appointment needed — online tools and resources are available 24 hours a day. Other free options for help: IRS Free File is available to any person or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. 2020 tax return still being processed? Tips to help with filing 2021 tax return: For people whose tax returns from 2020 have not yet been processed, they can still file their 2021 tax returns. For those filing electronically in this group, here's a critical point. Taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return when they file electronically. For those waiting on their 2020 tax return to be processed, make sure to enter $0 (zero dollars) for last year's AGI on the 2021 tax return. Visit Validating Your Electronically Filed Tax Return for more details. April 18 tax deadline: The filing deadline is April 18 for most taxpayers; automatic six-month extensions of time to file are available for anyone by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

https://www.irs.gov/newsroom/irs-chief-counsel-looking-for-200-experienced-attorneys-to-focus-on-abusive-tax-deals-job-openings-posted

IR-2022-17, January 21, 2022 WASHINGTON — The Internal Revenue Service's Office of Chief Counsel today announced plans to hire up to 200 additional attorneys to help the agency combat syndicated conservation easements, abusive micro-captive insurance arrangements and other tax schemes. "Combating abusive tax transactions that threaten to undermine our tax system remains a top priority for our enforcement efforts," said IRS Commissioner Chuck Rettig. "It's critical we work to ensure a fair tax system and adding these new attorneys will help us in on our ongoing efforts in this arena." These positions will be available around the country, and the IRS encourages qualified candidates to apply. The first announcements for these positions have already been posted on USAJOBS. Interested persons should apply today or as soon as possible via the following announcements: Large Business & International Positions: USAJOBS - LB&I Attorney Announcement Small Business/Self Employed Positions: USAJOBS - SB/SE Attorney Announcement Technical Positions: USAJOBS - Technical Job Announcement Promoters have been particularly active developing and marketing tax shelter schemes that purportedly enable taxpayers to avoid paying what they legally owe. These new hires will help the IRS manage the increasing caseload in its multi-year effort to stamp out these abusive schemes and ensure that those participating in them pay the tax they owe plus penalties. "This is an excellent opportunity for attorneys with experience in litigation, partnership tax law and planning complex transactions to join the Office of Chief Counsel and make a real difference for our tax system," said Principal Deputy Chief Counsel William M. Paul. These positions will be available in more than 50 locations, including Washington D.C. Those hired will provide legal advice to IRS professionals as they conduct audits of complex corporate and partnership issues and increasingly sophisticated and abusive transactions. The Chief Counsel office, working closely with IRS and the Treasury Department, provides world-class litigation and substantive tax training for all experience levels. New hires will work in a variety of areas, including handling cases in the United States Tax Court, as well as serving on trial teams in our largest and most complex trials involving fact and expert witnesses, depositions and multi-week trials. They will also work with the Department of Justice Tax Division, which handles refund cases in district courts and the Court of Federal Claims. Others hired will serve in the IRS national office with a focus on developing global regulatory solutions to the most sophisticated and abusive transactions and providing highly specialized advice to IRS litigation teams. Abusive syndicated conservation easement deals remain a major focus for the IRS. These transactions generally use inflated appraisals of undeveloped land and partnerships devoid of legitimate business purpose designed to generate inflated and unwarranted tax deductions. "Bogus syndicated conservation easement transactions undermine the public's trust in private land conservation and defraud the government," Rettig said. "Putting an end to these schemes is imperative." Abusive micro-captive insurance arrangements also remain a key focus of IRS enforcement. These deals are generally sold to owners of closely held entities. The deals commonly lack many of the necessary attributes of insurance, have excessive premiums, insure highly improbable risks and have no connection to genuine business and insurance needs. These are just some of the abusive schemes that the new hires will be working on. Paul noted that there are numerous advantages to joining Chief Counsel. The Office of Chief Counsel has successfully transitioned in response to the Covid-19 Pandemic. Chief Counsel is currently in full telework mode and will have a competitive telework policy going forward. To learn more about these opportunities, visit IRS Office of Chief Counsel | IRS Careers. The mission of the Office of Chief Counsel is to serve America's taxpayers fairly and with integrity by providing correct and impartial interpretation of the Internal Revenue laws and the highest quality legal advice and representation for the Internal Revenue Service.

https://www.irs.gov/newsroom/top-5-things-to-remember-when-filing-income-tax-returns-in-2022

IR-2022-16, January 20, 2022 WASHINGTON — With filing season beginning January 24, the Internal Revenue Service reminded taxpayers about several key items to keep in mind when filing their federal income tax returns this year. Given the unprecedented circumstances around the pandemic and unique challenges for this tax season, the IRS offers a 5-point checklist that can help many people speed tax return processing and refund delivery while avoiding delays. 1. File an accurate return and use e-file and direct deposit to avoid delays. Taxpayers should electronically file and choose direct deposit as soon as they have everything they need to file an accurate return. Taxpayers have many choices, including using a trusted tax professional. For those using e-file, the software helps individuals avoid mistakes by doing the math. It guides people through each section of their tax return using a question-and-answer format. 2. For an accurate return, collect all documents before preparing a tax return; make sure stimulus payment and advance Child Tax Credit information is accurate. In addition to collecting W-2s, Form 1099s and other income-related statements, it is important people have their advance Child Tax Credit and Economic Impact Payment information on hand when filing. Advance CTC letter 6419: In late December 2021, and continuing into January, the IRS started sending letters to people who received advance CTC payments. The letter says, "2021 Total Advance Child Tax Credit (AdvCTC) Payments" near the top and, "Letter 6419" on the bottom righthand side of the page. Here's what people need to know: The letter contains important information that can help ensure the tax return is accurate. People who received advance CTC payments can also check the amount of the payments they received by checking their Online Account on IRS.gov. Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return. Third Economic Impact Payment letter 6475: In late January 2022, the IRS will begin issuing letters to people who received a third payment in 2021. The letter says, "Your Third Economic Impact Payment" near the top and, "Letter 6475" on the bottom righthand side of the page. Here's what people need to know: Most eligible people already received their stimulus payments. This letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit (RRC) for missing stimulus payments. People who are eligible for RRC must file a 2021 tax return to claim their remaining stimulus amount. People can also use IRS online account to view their Economic Impact Payment amounts. Both letters – 6419 and 6475 – include important information that can help people file an accurate 2021 tax return. If a return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund. Using this information when preparing a tax return electronically can reduce errors and avoid delays in processing. 3. Avoid lengthy phone delays; use online resources before calling the IRS. Phone demand on IRS assistance lines remains at record highs. To avoid lengthy delays, the IRS urges people to use IRS.gov to get answers to tax questions, check a refund status or pay taxes. There's no wait time or appointment needed — online tools and resources are available 24 hours a day. Additionally, the IRS has several ways for taxpayers to stay up to date on important tax information: Follow the IRS' official social media accounts and email subscription lists to stay current on the latest tax topics and alerts. Download the IRS2Go mobile app, watch IRS YouTube videos, or follow the IRS on Twitter, Facebook, LinkedIn and Instagram for the latest updates on tax changes, scam alerts, initiatives, products and services. Taxpayers can also get information in their preferred language. The IRS translates tax resources into several languages and currently has basic tax information in 20 languages. People can also file Schedule LEP, Request for Change in Language Preference, to receive written communications from the IRS in their preferred language. 4. Waiting on a 2020 tax return to be processed? Special tip to help with e-filing a 2021 tax return: In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those waiting on their 2020 tax return to be processed, here's a special tip to ensure the tax return is accepted by the IRS for processing. Make sure to enter $0 (zero dollars) for last year's AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance Child Tax Credit or third Economic Impact Payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year's AGI from last year's return. Remember, if using the same tax preparation software as  last year, this field will auto-populate. 5. Free resources are available to help taxpayers file. During this challenging year, the IRS reminds taxpayers there are many options for free help, including many resources on IRS.gov. For those looking to avoid the delays with a paper tax return, IRS Free File is an option. With Free File, leading tax software providers make their online products available for free as part of a 20-year partnership with the Internal Revenue Service. This year, there are eight products in English and two in Spanish. IRS Free File is available to any person or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

https://www.irs.gov/newsroom/january-31-wage-statement-deadline-reminder-for-employers

IR-2022-15, January 19, 2022 WASHINGTON — The Internal Revenue Service today urged employers to be aware of the January deadline to file Forms W-2 and other wage statements. Filing these documents timely helps employers avoid penalties and helps the IRS in fraud prevention. 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. Forms W-2 are normally due to workers by January 31. Forms 1099-MISC, Miscellaneous Information and Forms 1099-NEC, Nonemployee Compensation, are also due to taxpayers by January 31. Various other due dates related to Form 1099-MISC and Form 1099-NEC, including dates due to the IRS, can be found on the form's instructionsPDF at IRS.gov. 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 and SSA encourage all employers to e-file. It is the quickest, most accurate and convenient way to file these forms. For more information about e-filing Forms W-2 and a link to the SSA's Business Services Online website, visit the SSA's Employer W-2 Filing Instructions & Information website at SSA.gov/employer. Use same employer identification number on all forms Employers should ensure the employer identification number (EIN) on their wage and tax statements (Forms W-2, W-3, etc.) and their payroll tax returns (Forms 941, 943, 944, etc.) match the EIN the IRS assigned to their business. They should not use their Social Security number (SSN) or Individual Taxpayer Identification number (ITIN) on forms that ask for an EIN. If an employer used an EIN (including a prior owner's EIN) on their payroll tax returns that's different from the EIN reported on their W-3, they should review General Instructions for Forms W-2 and W-3PDF, Box h—Other EIN used this year. Filing these forms with inconsistent EINs or using another business's EIN may result in penalties and delays in processing an employer's returns. Even if an employer uses a third-party payer (such as a Certified Professional Employer Organization, Professional Employer Organization, or other third party) or a different entity within their business to file these documents, the name and EIN on all statements and forms filed must be consistent and exactly match the EIN the IRS assigned to their business. For more information on third-party arrangements, see Publication 15, Employer's Tax Guide. Extensions Employers may request a 30-day extension to file Forms W-2 by submitting a complete application on Form 8809, Application for Extension of Time to File Information Returns by January 31. However, one of the criteria in Section 7 of Form 8809 must be met for the extension to be granted. Filing Form 8809 does not extend the due date for furnishing wage statements to employees. A separate extension of time to furnish Forms W-2 to employees must be filed by January 31. See Extension of time to furnish Forms W-2 to employees for more information. Additional information can be found on the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.

https://www.irs.gov/newsroom/irs-free-file-available-today-filers-can-claim-important-tax-benefits

IR-2022-14, January 14, 2022 WASHINGTON — The IRS today announced the availability of Free File, providing taxpayers online tax preparation products available at no charge. Today's launch of IRS Free File, available only through IRS.gov, provides people an early opportunity to file their taxes and claim the 2021 Recovery Rebate Credit, the enhanced Child Tax Credit, the Earned Income Tax Credit, and other important credits. Taxpayers can use Free File to claim the remaining amount of their Child Tax Credit and claim any advance payments of the Child Tax Credit they did not receive in 2021. Leading tax software providers make their online products available for free as part of a 20-year partnership with the Internal Revenue Service. This year, there are eight products in English and two in Spanish. IRS Free File is available to any person or family who earned $73,000 or less in 2021. "Free File is part of a wide selection of services available on IRS.gov to help people file taxes during this challenging period," said IRS Commissioner Chuck Rettig. "IRS Free File offers taxpayers an easy, free way to do their taxes from the safety of their own home. Free File also provides electronic filing with direct deposit, which is the best way to avoid delays and receive refunds quickly and securely." Because the filing season starts on January 24, 2022, IRS Free File providers will accept completed tax returns and hold them until they can be filed electronically on that date. The Free File Fillable Forms, the electronic version of IRS paper forms, will be available on January 24, 2022. Free File Fillable Forms is available for use by everyone, regardless of income, but should be used only by people who are comfortable preparing their own taxes. Other important information related to the January 24 start of tax season is available on IRS.gov, including important filing tips. How IRS Free File works Each IRS Free File provider sets its own eligibility rules for products based on age, income, and state residency. However, for those who make $73,000 or less, they will find at least one product that matches their needs, and usually more. Some providers also offer free state income tax return preparation. [Some state tax benefits, such as state Earned Income Tax Credits, are based on information contained on the taxpayer's federal income tax return. Taxpayers are encouraged to check with their state tax agency about state tax benefits and requirements to file a state income tax return.] Active-duty military can use any IRS Free File product if their income was $73,000 or less. Here's a step-by-step overview of how to find the right Free File product: Go to IRS.gov/freefile. Use the "Choose an IRS Free File Offer" tool for help in finding the right product, or Review each offer by a provider using the "Browse All" tool. Select a product. Follow links to the provider's website to begin a tax return. No computer? No problem. Taxpayers can complete and file their tax return using IRS Free File products through smart phones or tablets. Child Tax Credit, 2021 Recovery Rebate Credit and other tax benefits IRS Free File is all taxpayers need to claim the Child Tax Credit (CTC), 2021 Recovery Rebate Credit, and other tax benefits such as the Earned Income Tax Credit (EITC). The IRS also continues to urge people who received one or more advance Child Tax Credit payments in 2021 to carefully review their taxes before filing. Families who received advance payments will need to compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return. To help taxpayers who received an advance Child Tax Credit payment, the IRS started sending Letter 6419, 2021 Advance CTC, in late December 2021. The letter contains important information on advance Child Tax Credit payments that can help ensure the tax return is accurate. People who received the advance CTC payments can also check the amount of their payments by using the CTC Update Portal available on IRS.gov. In late January, the IRS will begin sending Letter 6475, Your Third Economic Impact Payment, to individuals who received a third stimulus payment in 2021, including initial and "plus-up" payments. While most eligible people already received their Economic Impact Payments, or stimulus payments, this letter will help them determine if they are eligible to claim the 2021 Recovery Rebate Credit for missing stimulus payments. If so, they must file a 2021 tax return to claim this credit. People can also use IRS online account to view both payment amounts. IRS Free File also can be used by workers to claim the EITC, which provides a refundable tax credit based on a filer's income and family size. Please remember that unemployment benefits paid by states are taxable income. States should send Forms 1099-G to those who received jobless benefits. IRS Free File participants For 2022, these providers are participating in IRS Free File: 1040Now.NET ezTaxReturn.com (available in Spanish) FreeTaxReturn.com INC FileYourTaxes.com On-Line Taxes at OLT.com TaxAct FreeTaxUSA ® TaxSlayer (coming soon in Spanish)

https://www.irs.gov/newsroom/irs-issues-frequently-asked-questions-and-answers-for-2021-recovery-rebate-credit

IR-2022-13, January 13, 2022 WASHINGTON — The Internal Revenue Service today issued frequently asked questions (FAQs) for the 2021 Recovery Rebate CreditPDF. Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021. Note: Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021. Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021. To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes. Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit. They should review the Recovery Rebate Credit page to determine their eligibility. The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. People can locate this information on Letter 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them beginning in late January 2022. Individuals can also view this information in their online account later in January. The FAQs cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible. The 2021 Recovery Rebate FAQ topics are: Topic A: General Information Topic B: Claiming the Recovery Rebate Credit if you aren't required to file a 2021 tax return Topic C: Eligibility for claiming a Recovery Rebate Credit on a 2021 tax return Topic D: Claiming the 2021 Recovery Rebate Credit Topic E: Calculating the 2021 Recovery Rebate Credit Topic F: Receiving the Credit on a 2021 tax return Topic G: Finding the third Economic Impact Payment Amounts to calculate the 2021 Recovery Rebate Credit Topic H: Correcting issues after the 2021 tax return is filed File for free and use direct deposit Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/get-ready-for-taxes-bookmark-irsgov-resources-and-online-tools-to-use-before-during-and-after-filing

IR-2022-12, January 13, 2022 WASHINGTON — The Internal Revenue Service today encouraged taxpayers to use IRS online tools and resources to find the information they need to be ready to file their 2021 federal tax returns, including important special steps related to Economic Impact Payments and advance Child Tax Credit payments. Individuals, especially those who don't usually file a tax return, are urged to file their 2021 tax return electronically beginning January 24, 2022. Using tax preparation software or a trusted tax professional will help guide people through the process and avoid making errors. Filing an incomplete or inaccurate return may mean a processing delay that slows the resulting tax refund. "There are some simple steps people can take to make sure they avoid delays and receive a quick refund," IRS Commissioner Chuck Rettig. "It's critical this year to avoid a paper tax return whenever possible and file electronically with direct deposit. And it's more important than ever to make sure you're filing an accurate tax return. The IRS urges people to review some straightforward tips that can help them avoid problems and get their tax refunds quickly." 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. IRS.gov tools are easy to use and available 24 hours a day. Millions of people use them to find information about their accounts, get answers to tax questions or file and pay taxes. Recovery Rebate Credit/Economic Impact Payments Individuals who didn't qualify for a third Economic Impact Payment or got less than the full amount may be eligible to claim the Recovery Rebate Credit. They will need to know the total amount of their third Economic Impact Payments received to calculate their correct 2021 Recovery Rebate Credit amount when they file their 2021 tax return. Ensuring they use the correct payment amounts will help them avoid a processing delay that may slow their refund. Beginning in late January, the IRS will send Letter 6475 with the total amount of the third Economic Impact Payment received. People can also view their economic impact payments using their Online Account. Advance Child Tax Credit payments People will need to know the total amount of advance payments they received in 2021 to compare them with the full amount of the Child Tax Credit that they can properly claim when they file their 2021 tax return. People who received the advance payments can access their online account to check the total amount of their payments. The IRS is also sending Letter 6419 to provide the total amount of advance Child Tax Credit payments received in 2021. Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the Child Tax Credit when they file a 2021 federal income tax return this year. This includes families who don't normally need to file a return. Interactive Tax Assistant The Interactive Tax Assistant answers general tax law questions, including helping to determine if a type of income is taxable or if someone is eligible to claim certain credits and deductions. With changes to income and other life events for many in 2021, tax credits and deductions can mean more money in a taxpayer's pocket. Thinking about eligibility now can help make tax filing easier. Online Account Taxpayers can use their Online Account to securely see important information when preparing to file their tax return or following up on balances or notices. Taxpayers can view the amount they owe, make and track payments and view payment plan details. Taxpayers can now also manage their communication preferences to go paperless for certain notices from the IRS, or to receive email notifications when the IRS sends them a new digital notice. They can also access information about Economic Impact Payments and advance Child Tax Credit payments needed to file a complete and accurate return. Act now to create an account. Where's My Refund? Taxpayers can check the status of their refund using the Where's My Refund? tool. The status is available within 24 hours after the IRS accepts their e-filed tax return or up to four weeks after they mailed a paper return. The Where's My Refund? tool updates once every 24 hours, usually overnight, so taxpayers only need to check once a day. Get ready to use direct deposit for tax refunds Direct deposit gives taxpayers access to their refund faster than a paper check. Individuals can use a bank account, prepaid debit card or mobile app to use direct deposit and will need to provide routing and account numbers. Learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool. Veterans should see the Veterans Benefits Banking Program for access to financial services at participating banks. IRS Free File Everyone can file electronically for free. Starting January 14, the IRS Free File program, available only through IRS.gov or the IRS2Go app, offers brand-name tax preparation software packages. For those who earned $73,000 or less in 2021, they may qualify for Free File guided tax software. The software does all the work of finding deductions, credits and exemptions. Some of the Free File offers may include a free state tax return. Taxpayers comfortable filling out tax forms, can use Free File Fillable Forms, the electronic federal tax forms paper version to file their tax returns online, regardless of income. Members of the military and qualifying veterans can use MilTax, a Department of Defense program that generally offers free online tax preparation and e-filing software for federal returns and up to three state returns. Free tax return preparation site The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs offer free tax help and e-file for taxpayers who qualify. Choosing a preparer The IRS has several options for finding a tax preparer. The IRS provides an online database to help taxpayers locate an authorized e-file provider in their area who can electronically file their tax return. Choosing a Tax Professional provides information for selecting a tax professional. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find preparers in their area who currently hold professional credentials recognized by the IRS, or who hold an Annual Filing Season Program Record of Completion. Taxpayers need to remember that they, not the tax preparer, are responsible for information on their tax return once they sign it. IRS.gov/getready Links to online tools, publications, and other helpful resources are available on the Get Ready page. For more information about planning ahead, see Publication 5348, Get Ready to FilePDF and Publication 5349, Year-Round Tax Planning is for EveryonePDF.

https://www.irs.gov/newsroom/national-taxpayer-advocate-delivers-annual-report-to-congress-focuses-on-taxpayer-impact-of-processing-and-refund-delays

IR-2022-11, January 12, 2022 WASHINGTON — National Taxpayer Advocate Erin M. Collins today released her 2021 Annual Report to Congress, calling calendar year 2021 "the most challenging year taxpayers and tax professionals have ever experienced." The report says tens of millions of taxpayers experienced delays in the processing of their returns, and with 77 percent of individual taxpayers receiving refunds, "processing delays translated directly into refund delays." The report credits the Internal Revenue Service for performing well under difficult circumstances. Since the start of the pandemic, the IRS, in addition to its traditional work, has implemented significant programs enacted by Congress. Among other things, it has issued 478 million stimulus payments (referred to as Economic Impact Payments or "EIPs") totaling $812 billion and has sent Advance Child Tax Credit (AdvCTC) payments to over 36 million families totaling over $93 billion. The report says "[t]he imbalance between the IRS's workload and its resources has never been greater." Since fiscal year (FY) 2010, the IRS's workforce has shrunk by 17 percent, while its workload – as measured by the number of individual return filings – has increased by 19 percent. The report reiterates the National Taxpayer Advocate's longstanding recommendation that Congress provide the IRS with sufficient funding to serve taxpayers well. Major challenges for taxpayers "There is no way to sugarcoat the year 2021 in tax administration," Collins wrote. "The year 2021 provided no shortage of taxpayer problems." "While my report focuses primarily on the problems of 2021, I am deeply concerned about the upcoming filing season," Collins added in releasing the report. "Paper is the IRS's Kryptonite, and the agency is still buried in it." As of late December, the IRS had backlogs of 6 million unprocessed original individual returns (Forms 1040), 2.3 million unprocessed amended individual returns (Forms 1040-X), more than 2 million unprocessed employer's quarterly tax returns (Forms 941 and 941-X), and about 5 million pieces of taxpayer correspondence – with some of these submissions dating back at least to April and many taxpayers still waiting for their refunds nine months later. Although e-filed returns fared better than paper returns, the report says millions of e-filed returns were suspended during processing due to discrepancies between amounts claimed on the returns and amounts reflected on IRS records. The most common discrepancy involved Recovery Rebate Credit (RRC) claims by taxpayers who did not receive some or all of their stimulus payments as EIPs the prior year. These returns had to be manually reviewed, and the IRS issued more than 11 million math error notices to taxpayers over RRC discrepancies with IRS records. When a taxpayer disagreed with a math error notice and submitted a response, the taxpayer's response went into the IRS's paper processing backlog, further delaying the refund. Collins is concerned that the number of returns suspended and requiring manual processing is likely to be high again in 2022. In March, Congress authorized two advance tax credits that may result in additional discrepancies between amounts claimed on tax returns and in IRS records. It authorized a third round of EIPs that may be claimed as RRCs by taxpayers who did not receive them, and it authorized monthly payments of the Advance Child Tax Credit (AdvCTC) for the second half of 2021, both of which will have to be claimed and/or reconciled on 2021 individual tax returns. The IRS is attempting to minimize discrepancies by sending notices to taxpayers who received EIPs and AdvCTC showing how much they received, but millions of discrepancies – and math error notices – remain likely. At the postponed filing deadline of May 17, 2021, the IRS was holding 35.3 million tax returns for employee review that consisted of roughly half unprocessed paper returns and half tax returns suspended during processing, leading to refund delays for many of these taxpayers. "Refund delays have a disproportionate impact on low-income taxpayers," the report says. "Earned Income Tax Credit (EITC) benefits are worth up to $6,660, Child Tax Credit benefits [were] worth up to $2,000 per qualifying child under tax year 2020 rules, and RRCs are potentially worth several thousand dollars for families who did not receive some or all of their EIPs. Millions of taxpayers rely on the benefits from these programs to pay their basic living expenses, and when refunds are substantially delayed, the financial impact can range from mild inconvenience to severe financial hardship." The report says processing delays led to a cascade of customer service problems: The IRS's "Where's My Refund?" tool often could not answer the question. Taxpayers attempted to check the status of their refunds on IRS.gov more than 632 million times last year, but "Where's My Refund?" does not provide information on unprocessed returns, and it does not explain any status delays, the reasons for delays, where returns stand in the processing pipeline, or what actions taxpayers need to take, if any. For taxpayers who experienced significant refund delays, the tool often did not do its job. Telephone service was the worst it has ever been. The combination of processing delays and questions about new programs like the AdvCTC caused call volumes to almost triple from the prior year to a record 282 million telephone calls. Customer service representatives (CSRs) only answered about 32 million, or 11 percent, of those calls. As a result, most callers could not obtain answers to their tax law questions, get help with account problems, or speak with a CSR about a compliance notice. "Among the lucky one in nine callers who was able to reach a CSR, the IRS reported that hold times averaged 23 minutes," the report says. "Practitioners and taxpayers have reported that hold times were often much longer, and frustration and dissatisfaction was high throughout the year with the low level of phone service." The IRS took months to process taxpayer responses to its notices, further delaying refunds. The IRS sent tens of millions of notices to taxpayers during 2021. These included nearly 14 million math error notices, Automated Underreporter notices (where an amount reported on a tax return did not match the corresponding amount reported to the IRS on a Form 1099 or other information reporting document), notices requesting a taxpayer authenticate his or her identity where IRS filters flagged a return as potentially fraudulent, correspondence examination notices and collection notices. In many cases, taxpayer responses were required, and if the IRS did not process a response, its automated processes could take adverse action or not release the refund claimed on the tax return. The IRS received 6.2 million taxpayer responses to proposed adjustments and took an average of 199 days to process them – up from 74 days in FY 2019, the most recent pre-pandemic year. The ten most serious problems encountered by taxpayers. By statute, the National Taxpayer Advocate is required to identify the ten most serious problems encountered by taxpayers in their dealings with the IRS. This year's report details the following problems: processing and refund delays; challenges in employee recruitment, hiring, and training; telephone and in-person taxpayer service; transparency and clarity; filing season delays; limitations of online taxpayer accounts; limitations in digital taxpayer communications, including e-mail; e-filing barriers; correspondence audits; and the impact of collection policies on low-income taxpayers. For each problem, the report includes an IRS response. Taxpayer Advocate Service administrative recommendations to the IRS The report makes numerous recommendations to address taxpayer problems, including the following: Utilize scanning technology and reduce barriers to e-filing. The IRS could reduce its backlog of paper tax returns by using scanning technology to machine read returns, as many state tax agencies have been doing for more than ten years. In addition, some taxpayers who try to e‑file their returns are blocked for several reasons, including when they need to file certain tax forms that the IRS has not programmed its systems to receive electronically. These Taxpayer Advocate Service (TAS) recommendations would reduce the need for IRS employees to manually transcribe the data from paper returns – the primary cause of the backlog and of transcription errors that led to math error notices and refund delays. For individual taxpayers who filed on paper, the report says "roughly one out of every four returns had a transcription error that could trigger an unwarranted compliance action or an erroneous refund that the IRS might later seek to recover." Deploy "customer callback" technology on all telephone lines, so taxpayers and tax professionals don't have to wait on hold and can receive a return call when the next CSR is available. Customer callback technology is not a cure-all for IRS telephone operations because if the IRS workforce only has the capacity to answer 32 million telephone calls, as it did last year, customer callback will not enable the IRS to handle the 250 million calls that went unanswered. However, many taxpayers call the IRS multiple times before they get through, and if effectively used, customer callback technology could substantially reduce the need for repeat calls. Improve online taxpayer accounts and allow taxpayers to communicate with the IRS routinely by secure email. The report says online taxpayer accounts are plagued by limited functionality. For example, taxpayers generally cannot use their online accounts to view images of past tax returns, most IRS notices, or proposed assessments; file documents; or update their addresses. Similarly, the IRS generally does not communicate with taxpayers by email. Limitations on communicating with the IRS electronically frustrate taxpayers who have been conducting comparable transactions with financial institutions for more than two decades. This increases the number of telephone calls and pieces of correspondence the IRS receives and leads to more paper processing delays. Create and update a weekly "dashboard" on IRS.gov to provide the public with specific information about delays. The IRS has created a webpage, IRS Operations During COVID-19: Mission-critical functions continue, that provides certain high-level information. However, it does not provide detailed information on processing backlogs, saying for amended returns only that "[t]he current timeframe can be more than 20 weeks." It does not provide detailed information on correspondence backlogs, saying only that processing mail "is taking longer than usual," and "[t]he exact timeframe varies depending on the type of issue." It does not provide information on recent telephone delays, even though doing so would give taxpayers a better sense of whether they should devote the time to calling. TAS recommends that the IRS post a filing season dashboard, updated at least weekly, that lists each category of work and the length of time it is taking to complete it. This should include the number of weeks to process original paper tax returns and amended paper tax returns, the number of weeks to process math error and other taxpayer correspondence by category, and the percentage of taxpayers who called the IRS the previous week and reached an employee.  National Taxpayer Advocate "Purple Book" of legislative recommendations The National Taxpayer Advocate's 2022 Purple Book proposes 68 legislative recommendations for consideration by Congress. Among them are the following: Provide sufficient funding for the IRS to improve taxpayer service and modernize its information technology systems. The IRS receives its annual appropriation in four accounts: Taxpayer Services, Enforcement, Operations Support, and Business Systems Modernization. During the past year, there has been considerable discussion about substantially increasing funding for the Enforcement account and related activities in the Operations Support account. To address taxpayer problems identified in this report, TAS recommends that Congress substantially increase funding for the Taxpayer Services account. Extend the period for receiving refunds when the IRS postpones the tax filing deadline. When a taxpayer files a timely refund claim, the IRS generally is permitted to refund only amounts paid within the preceding three years. If a taxpayer files a return on April 15 in Year 1, the IRS generally may issue a refund until April 15 in Year 4. In 2020, the IRS postponed the filing deadline for tax year 2019 tax returns from April 15 to July 15 due to the COVID-19 pandemic. Taxpayers who filed their returns on July 15, 2020, may reasonably believe they have until July 15, 2023, to obtain full refunds. However, income tax withholding and estimated tax payments for tax year 2019 are deemed paid on April 15, 2020. As a result, refund claims filed after April 15, 2023, will be limited to the amounts taxpayers paid or were deemed to have paid by April 15, 2020. A similar issue will arise in 2024 because the IRS postponed the 2021 filing deadline to May 17. This result was not anticipated and will prevent some taxpayers from receiving the full refunds to which they are otherwise entitled. TAS recommends Congress clarify that a postponement of the filing deadline extends the lookback period for paying refunds. Authorize the IRS to establish minimum standards for paid tax return preparers. Most taxpayers hire tax return preparers to complete their returns, and visits to preparers by Government Accountability Office and Treasury Inspector General for Tax Administration auditors posing as taxpayers, as well as IRS compliance studies, have found paid preparers make significant errors that both harm taxpayers and reduce tax compliance. Ten years ago, the IRS sought to implement minimum preparer standards, including requiring otherwise non-credentialed preparers to pass a basic competency test, but a federal court concluded the IRS could not do so without statutory authorization. TAS recommends Congress provide that authorization. Expand the U.S. Tax Court's jurisdiction to hear refund cases. Under current law, taxpayers who owe tax and wish to litigate a dispute with the IRS must go to the U.S. Tax Court, while taxpayers who have paid their tax and are seeking a refund must file suit in a U.S. district court or the U.S. Court of Federal Claims. The Tax Court is an easier forum to navigate, and it has established relationships with the Low Income Taxpayer Clinics and other pro bono programs that assist taxpayers when they litigate their cases in Tax Court. TAS recommends that taxpayers be given the option to litigate all tax disputes in the U.S. Tax Court. Restructure the Earned Income Tax Credit (EITC) to make it simpler for taxpayers and reduce improper payments. TAS has long advocated for dividing the EITC into two credits: (i) a refundable worker credit based on each individual worker's earned income unrelated to the presence of qualifying children and (ii) a refundable child credit. For wage earners, claims for the worker credit could be verified with nearly 100 percent accuracy by matching claims on tax returns against Forms W-2, reducing the improper payments rate on those claims to nearly zero. The portion of the EITC that currently varies based on family size would be combined with a child credit into a larger family credit. The National Taxpayer Advocate published a reportPDF making this recommendation in 2019, and TAS continues to advocate for it. Expand the protection of taxpayer rights by strengthening the Low Income Taxpayer Clinic (LITC) program. The LITC program effectively assists low-income taxpayers and taxpayers who speak English as a second language. When the LITC grant program was established in 1998, the law limited annual grants to no more than $100,000 per clinic. The law also imposed a 100 percent "match" requirement (meaning a clinic cannot receive more in LITC grant funds than it is able to match on its own). The nature and scope of the LITC program has evolved considerably since 1998, and those requirements are preventing the program from providing high quality assistance to eligible taxpayers. TAS recommends that Congress remove the per-clinic cap and allow the IRS to reduce the match requirement to 50 percent where doing so would provide coverage for additional taxpayers. Other sections in the report The report contains a taxpayer rights assessment that presents performance measures and other relevant data, a description of TAS's case advocacy operations during FY 2021, a summary of key TAS systemic advocacy accomplishments, and a discussion of the ten federal tax issues most frequently litigated during the preceding year. The section on most litigated tax issues for the first time contains an analysis of substantially all cases petitioned in the Tax Court rather than simply decided cases, providing a much broader view of issues taxpayers bring to court. Also for the first time, the report includes a section titled "At a Glance," which provides concise summaries of the ten "most serious problems." It is intended to give readers a quick overview of each issue so they can decide which ones they want to read about in depth. Please visit 2021 National Taxpayer Advocate Annual Report to Congress for more information. Related items: Complete Report: 2021 Annual Report to Congress   Executive SummaryPDF Purple BookPDF About the Taxpayer Advocate Service TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Your local advocate's number is available in your local directory and at Contact Us. You may also call TAS toll-free at 877-777-4778. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn't working as it should. And our service is free. For more information about TAS and your rights under the Taxpayer Bill of Rights, go to the Taxpayer Advocate Service website. You can get updates on tax topics at YourVoiceAtIRS (Facebook), YourVoiceatIRS (Twitter) and TASNTA (YouTube).

https://www.irs.gov/newsroom/irs-updates-faqs-for-2021-child-tax-credit-and-advance-child-tax-credit-payments

IR-2022-10, January 11, 2022 WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit to help eligible families properly claim the credit when they prepare and file their 2021 tax return. This extensive FAQ updatePDF includes multiple streamlined questions for use by taxpayers and tax professionals and is being issued as expeditiously as possible. The updates can be found in: Topic A: General Information Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit Topic C: Calculation of the 2021 Child Tax Credit Topic D: Calculation of Advance Child Tax Credit Payments Topic E: Advance Payment Process of the Child Tax Credit Topic F: Updating Your Child Tax Credit Information During 2021 Topic G: Receiving Advance Child Tax Credit Payments Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return Topic I: U.S. Territory Residents and Advance Child Tax Credit Payments Topic J: Unenrolling from Advance Payments Topic K: Verifying Your Identity to View your Payments Topic L: Commonly Asked Shared-Custody Questions Topic M: Commonly Asked Immigration-Related Questions Topic N: Returning a Payment Recipients of advance Child Tax Credit payments will need to compare the amount of payments received during 2021 with the amount of the Child Tax Credit that can be claimed on their 2021 tax return. Those that received less than the amount they are eligible for can claim a credit for the remaining amount. Those that received more than they are eligible for may need to repay some or all of the excess amount. The IRS will send Letter 6419 in January of 2022 to provide the total amount of advance Child Tax Credit payments that were received in 2021. The IRS urges taxpayers receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-selects-new-irsac-members-for-2022

IR-2022-09, January 10, 2022 WASHINGTON — The Internal Revenue Service today announced the appointment of nine new members to the Internal Revenue Service Advisory Council (IRSAC). The IRSAC, established in 1953, is an organized public forum for IRS officials and representatives of the public to discuss a broad range of issues in tax administration. The Council provides the IRS Commissioner with relevant feedback, observations and recommendations. It will submit its annual report to the agency at a public meeting in November 2022. The IRS strives to appoint members to the IRSAC who represent the taxpaying public, the tax professional community, small and large businesses, tax exempt and government entities and information reporting interests. The following people were appointed to serve three-year appointments on the council beginning this month: Amanda Aguillard – Chief Operations Officer, Padgett Business Services, New Orleans, Louisiana.  Aguillard has been involved in assisting small business taxpayers for over 20 years with income and other tax issues. Prior to joining Padgett Business Services she worked with large accounting firms in her capacity as a National Ambassador for New Zealand-headquartered Xero. She co-founded and runs Elefant, a training and consulting company for accountants and Bookkeepers. Aguillard holds a Bachelor of Science degree in Accounting from the University of Louisiana at Lafayette and a Master of Taxation from the University of Denver. Aguillard represents small business, and she is a member of the American Institute of Certified Public Accountants and the Society of Louisiana CPAs. Alison Flores – Principal Tax Research Analyst, H&R Block, Kansas City, Missouri. Flores is a tax attorney with over 15 years of experience. She supplies guidance on complex tax areas to over 70,000 tax professionals and responds to their feedback and questions. She helps cross-functional teams understand and implement changes that affect taxpayers. Her team works to understand systemic tax administration challenges, finds opportunities to bring awareness to those challenges and proposes solutions. She leads the internal research tool for H&R Block delivering tax research materials on an online research platform. She has a deep understanding of issues facing individual and small business taxpayers and knowledge of how refundable credits and other tax benefits have changed over the years. Flores holds a Bachelor of Arts in English and History from Bethel College and a Juris Doctor from the University of Kansas School of Law. Flores works with tax professionals and the tax preparation industry. Michael Kam – Tax Director, Trustees of the Estate of Bernice Pauahi Bishop, doing business as Kamehameha Schools, Honolulu, Hawaii. Kam is a CPA responsible for the overall tax function of a 130-year-old charitable trust with a diverse portfolio of real estate and financial investments valued at over $14 billion. With over 35 years of tax experience in both the tax-exempt and for-profit sectors, he oversees tax compliance and manages tax risks throughout the organization and its tax-exempt and for-profit affiliates, develops and implements prudent and impactful tax strategies and assists internal clients with structuring transactions. He evaluates, assesses and resolves various complex tax issues, such as rent exclusions, rental agreements and issues related to unrelated business taxable income pertaining to a vast number of private equity investments. Kam holds a Bachelor of Business Administration in Accounting from the University of Hawaii at Manoa. Kam represents tax-exempt organizations, and he is a member of the AICPA, the Hawaii Society of CPAs, and the Tax Executives Institute. Mason Klinck – Volunteer Income Tax Assistance Site Manager, Making Opportunity Count (MOC), Fitchburg, Massachusetts. Klinck is an Enrolled Agent with 20 years of experience as a tax preparer. Formerly an agent for the IRS and a tax shelter auditor for the California Franchise Tax Board, he has worked with law and CPA firms in return preparation, collections, audits, appeals, innocent spouse relief and U.S. Tax Court petitions. As the VITA manager for his community agency, he supervises the preparation of tax returns for low-income taxpayers and represents distressed taxpayers before the state and the IRS. In response to the COVID-19 pandemic, he implemented a virtual system of tax preparation for MOC clients. He has volunteered for Low Income Taxpayer Clinics in California, Vermont, and Massachusetts. Fluent in several languages, Klinck holds both a Bachelor and Master of Arts in Modern Languages from Oxford University, a Master of Business Administration from Boston College, and a Master of Science in Taxation from California State University. Klinck serves on the Commissioner's Advisory Council of the Massachusetts Department of Revenue and is a director of the Massachusetts Society of Enrolled Agents. Klinck represents VITA and low-income taxpayers. Jeffrey A. Porter – Member/CPA, Porter & Associates CPAs PLLC, Huntington, West Virginia. Porter is a CPA with over 40 years of experience preparing business and individual tax returns. His firm represents small- to medium-sized businesses and high net worth individuals spread across a wide spectrum of industries. He has been active in the AICPA for over 30 years, with prior service on the Board of Directors, its Governing Council and chair of its Tax Executive Committee. He served on the Steering Committee for the AICPA National Tax Conference for 20 years and served as Chair of the Conference for over 10 years. In 2016, he received the Arthur J. Dixon Memorial Award, the highest honor bestowed by the accounting profession in taxation. He has testified before the U.S. House of Representatives and the U.S. Senate five times on tax related matters. Porter holds a Bachelor of Business Administration from Marshall University and a Master of Taxation from the University of Tulsa. Porter represents small and medium-sized businesses, and he is a member of the AICPA and the West Virginia Society of CPAs. Jon Schausten – Director of Payroll and Human Resources Information System, American United Life Insurance Company, DBA OneAmerica, Indianapolis, Indiana. Schausten is a Certified Payroll Professional with over 20 years of payroll experience with union, multi-state and international payrolls. He oversees payroll, time and attendance, HRIS and HR Shared Services. He managed payroll for expatriate associates including foreign income and tax returns. He assisted the Social Security Administration in its five-year modernization project articulating the needs of payroll professionals in using online services. He is a member of American Payroll Association (APA) and was named the 2020 APA Payroll Man of the Year. He has received the 2017 Prism Award for Management. He is currently the Vice President of APA and serves as Co-Chair of the Government Relations Task Force for IRS Issues and Co-Chair of Social Networking Committee. Schausten holds a Bachelor of Business Administration in Human Resources Management from Marian University. Schausten represents the information reporting community and payroll industry. Tara Sciscoe – Partner, Ice Miller LLP, Indianapolis, Indiana. Sciscoe is a Partner at Ice Miller LLP where she is a member of the Employee Benefits group. She has 27 years of experience advising employers, plans and trusts with respect to the design and compliance of their employee benefit programs. Sciscoe has a national practice in representing public pension systems and governmental and tax-exempt colleges, universities, university systems and school corporations with respect to their unique benefit issues, which frequently involve multiple interrelated plans on the state and institutional level. She is general counsel to the seventh largest denominational church plan in the U.S., which administers retirement plans and deemed individual retirement accounts for churches across the country, and regularly advises church and church-related organizations on employee benefit matters. Sciscoe is an active member of the National Association of College and University Attorneys and the Church Alliance Core Lawyer Working Group, and frequently writes and presents for these and other groups. She is chair of Ice Miller's Higher Education practice and co-chair of the Retirement Plan Committee. She holds a J.D. from the University of Michigan and a Bachelor of Arts from Duke University. Sciscoe represents tax-exempt organizations and employee plans. Rebecca Thompson – Vice President, Strategic Partnerships & Network Building, Prosperity Now, Washington, DC. Thompson has over 10 years of experience as a non-profit professional. Her work focuses on addressing systemic barriers to racial economic justice so that all individuals, families and communities can prosper without exception. She has oversight for the Taxpayer Opportunity Network (TON), the national convening body and liaison with the IRS for the VITA program and stakeholders. She has worked directly with low- and moderate-income taxpayers over the last 10 years as a VITA volunteer, program manager and TON Project Director. She has extensive knowledge of tax law application and tax preparation experience, particularly related to low-income returns and refundable credits. As a VITA site coordinator and quality reviewer, she educates clients on their tax returns and communicates how their household and financial situation translates to their tax returns. She participates in the IRS Refundable Credits Summit and Refundable Credits Working Group. Thompson holds a Bachelor of Science in Business Economics from Florida A&M University. Thompson represents VITA and low- and moderate-income taxpayers. Sean Wang – Director, Information Reporting Policy & Compliance group, Charles Schwab, Boston, Massachusetts. Wang is a Director with Charles Schwab's Information Reporting Policy & Compliance group, where he advises and supports internal business line partners on information reporting and withholding compliance, corporate digital projects, and implementation of new or changes of information reporting and withholding rules. He was previously a Senior Manager with EY where he advised and assisted banking, insurance, and asset management clients on domestic reporting and withholding issues (i.e., Forms 1099 and backup withholding), nonresident alien reporting and withholding issues (i.e., Forms 1042-S and section 1441 withholding), the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). Wang received a Bachelor of Business Administration in Accounting from the University of Massachusetts at Amherst. He is a CPA and a member of the AICPA and the Massachusetts Society of CPAs. Wang represents the information reporting community. The 2022 IRSAC Chair is Carol Lew, shareholder with Stradling Yocca Carlson & Rauth PC in Newport Beach, California. Lew serves as special tax counsel and borrower's counsel for various kinds of bond issues for state and local government and non-profits for the provision of public infrastructure, housing, charter schools, performing arts facilities, hospitals, museums and other types of facilities. For more information, visit www.IRS.gov/irsac Related item: IRSAC 2021 Public ReportPDF

https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline

IR-2022-08, January 10, 2022 WASHINGTON — The Internal Revenue Service announced that the nation's tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns. The January 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly. Updated programming helps ensure that eligible people can claim the proper amount of the Child Tax Credit after comparing their 2021 advance credits and claim any remaining stimulus money as a Recovery Rebate Credit when they file their 2021 tax return. "Planning for the nation's filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare," said IRS Commissioner Chuck Rettig. "The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don't face processing delays. Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year. And we urge extra attention to those who received an Economic Impact Payment or an advance Child Tax Credit last year. People should make sure they report the correct amount on their tax return to avoid delays." The IRS encourages everyone to have all the information they need in hand to make sure they file a complete and accurate return. Having an accurate tax return can avoid processing delays, refund delays and later IRS notices. This is especially important for people who received advance Child Tax Credit payments or Economic Impact Payments (American Rescue Plan stimulus payments) in 2021; they will need the amounts of these payments when preparing their tax return. The IRS is mailing special letters to recipients, and they can also check amounts received on IRS.gov. Like last year, there will be individuals filing tax returns who, even though they are not required to file, need to file a 2021 return to claim a Recovery Rebate Credit to receive the tax credit from the 2021 stimulus payments or reconcile advance payments of the Child Tax Credit. People who don't normally file also could receive other credits. April 18 tax filing deadline for most The filing deadline to submit 2021 tax returns or an extension to file and pay tax owed is Monday, April 18, 2022, for most taxpayers. By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way federal holidays do. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia for everyone except taxpayers who live in Maine or Massachusetts. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states. Taxpayers requesting an extension will have until Monday, October 17, 2022, to file. Awaiting processing of previous tax returns? People can still file 2021 returns Rettig noted that IRS employees continue to work hard on critical areas affected by the pandemic, including processing of tax returns from last year and record levels of phone calls coming in. "In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me," Rettig said. "IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us. And we will continue to look for ways to improve. We want to deliver as much as possible while also protecting the health and safety of our employees and taxpayers. Additional resources are essential to helping our employees do more in 2022 – and beyond." The IRS continues to reduce the inventory of prior-year individual tax returns that have not been fully processed. As of December 3, 2021, the IRS has processed nearly 169 million tax returns. All paper and electronic individual 2020 refund returns received prior to April 2021 have been processed if the return had no errors or did not require further review. Taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns and can file when they are ready. Key information to help taxpayers The IRS encourages people to use online resources before calling. Last filing season, as a result of COVID-era tax changes and broader pandemic challenges, the IRS phone systems received more than 145 million calls from January 1 – May 17, more than four times more calls than in an average year. In addition to IRS.gov, the IRS has a variety of other free options available to help taxpayers, ranging from free assistance at Volunteer Income Tax Assistance and Tax Counseling for the Elderly locations across the country to the availability of the IRS Free File program. "Our phone volumes continue to remain at record-setting levels," Rettig said. "We urge people to check IRS.gov and establish an online account to help them access information more quickly. We have invested in developing new online capacities to make this a quick and easy way for taxpayers to get the information they need." Last year's average tax refund was more than $2,800. More than 160 million individual tax returns for the 2021 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline. Overall, the IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible. By law, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, though eligible people may file their returns beginning on January 24. The law provides this additional time to help the IRS stop fraudulent refunds from being issued. Some returns, filed electronically or on paper, may need manual review, which delays the processing, if our systems detect a possible error or missing information, or there is suspected identity theft or fraud. Some of these situations require us to correspond with taxpayers, but some do not. This work does require special handling by an IRS employee so, in these instances, it may take the IRS more than the normal 21 days to issue any related refund. In those cases where IRS is able to correct the return without corresponding, the IRS will send an explanation to the taxpayer. File electronically and choose direct deposit To speed refunds, the IRS urges taxpayers to file electronically with direct deposit information as soon as they have everything they need to file an accurate return. If the return includes errors or is incomplete, it may require further review that may slow the tax refund. Having all information available when preparing the 2021 tax return can reduce errors and avoid delays in processing. Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers, issuers like state agencies and payers. The IRS has incorporated recent changes to the tax laws into the forms and instructions and shared the updates with its partners who develop the software used by individuals and tax professionals to prepare and file their returns. Forms 1040 and 1040-SR and the associated instructions are available now on IRS.gov. For the latest IRS forms and instructions, visit the IRS website at  IRS.gov/forms . Free File available January 14 IRS Free File will open January 14 when participating providers will accept completed returns and hold them until they can be filed electronically with the IRS. Many commercial tax preparation software companies and tax professionals will also be accepting and preparing tax returns before January 24 to submit the returns when the IRS systems open. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds – as well having all the information they need to file an accurate return to avoid delays. The IRS's Free File program allows taxpayers who made $73,000 or less in 2021 to file their taxes electronically for free using software provided by commercial tax filing companies. More information will be available on Free File later this week. In addition to IRS Free File, the IRS's Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs free basic tax return preparation to qualified individuals.  Watch for IRS letters about advance Child Tax Credit payments and third Economic Impact Payments The IRS started sending Letter 6419, 2021 advance Child Tax Credit, in late December 2021 and continues to do so into January. The letter contains important information that can help ensure the return is accurate. People who received the advance CTC payments can also check the amount of the payments they received by using the CTC Update Portal available on IRS.gov. Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return. The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to individuals who received a third payment in 2021 in late January. While most eligible people already received their stimulus payments, this letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit for missing stimulus payments. If so, they must file a 2021 tax return to claim their remaining stimulus amount. People can also use IRS online account to view their Economic Impact Payment amounts. Both letters include important information that can help people file an accurate 2021 tax return. If the return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund. Using this information when preparing a tax return electronically can reduce errors and avoid delays in processing. The fastest way for eligible individuals to get their 2021 tax refund that will include their allowable Child Tax Credit and Recovery Rebate Credit is by filing electronically and choosing direct deposit. Tips to make filing easier To avoid processing delays and speed refunds, the IRS urges people to follow these steps: Organize and gather 2021 tax records including Social Security numbers, Individual Taxpayer Identification Numbers, Adoption Taxpayer Identification Numbers, and this year's Identity Protection Personal Identification Numbers valid for calendar year 2022. Check IRS.gov for the latest tax information, including the latest on reconciling advance payments of the Child Tax Credit or claiming a Recovery Rebate Credit for missing stimulus payments. There is no need to call. Set up or log in securely at IRS.gov/account to access personal tax account information including balance, payments, and tax records including adjusted gross income. Make final estimated tax payments for 2021 by Tuesday, January 18, 2022, to help avoid a tax-time bill and possible penalties. Individuals can use a bank account, prepaid debit card or mobile app to use direct deposit and will need to provide routing and account numbers. Learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool. File a complete and accurate return electronically when ready and choose direct deposit for the quickest refund. Key filing season dates There are several important dates taxpayers should keep in mind for this year's filing season: January 14: IRS Free File opens. Taxpayers can begin filing returns through IRS Free File partners; tax returns will be transmitted to the IRS starting January 24. Tax software companies also are accepting tax filings in advance.   January 18: Due date for tax year 2021 fourth quarter estimated tax payment.   January 24: IRS begins 2022 tax season. Individual 2021 tax returns begin being accepted and processing begins   January 28: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.   April 18: Due date to file 2021 tax return or request extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.   April 19: Due date to file 2021 tax return or request extension and pay tax owed for those who live in MA or ME due to Patriots' Day holiday   October 17: Due date to file for those requesting an extension on their 2021 tax returns Planning ahead It's never too early to get ready for the tax-filing season ahead. For more tips and resources, check out the Get Ready page on IRS.gov.

https://www.irs.gov/newsroom/irs-releases-its-2021-progress-update-detailing-challenging-year

IR-2022-07, January 7, 2022 WASHINGTON — The Internal Revenue Service today released its 2021 annual report describing the agency's work delivering taxpayer service and compliance efforts during the pandemic while highlighting efforts taken by IRS employees to help people during the year. Internal Revenue Service Progress Update / Fiscal Year 2021 – Putting Taxpayers FirstPDF outlines how the agency continued to work through difficulties related to the pandemic while delivering two rounds of Economic Impact Payments and millions of advance Child Tax Credit payments, all in record time. Meanwhile, IRS employees continued to make adjustments to deliver the filing season despite office closures, social distancing mandates and an extended tax filing deadline. "This has been an unprecedented period facing the IRS and the nation," said IRS Commissioner Chuck Rettig. "IRS employees worked hard during the pandemic, repeatedly delivering for taxpayers under tight timeframes and difficult circumstances. As the 2022 filing season approaches, more work remains for us to help taxpayers as well as tax professionals. We will continue to make progress on critical areas thanks to the hard work of so many people. I'm incredibly proud of what our employees have been able to accomplish during this period, and we also appreciate the efforts taking place by our partners inside and outside the tax system to help people struggling during COVID-19." Since the pandemic began, the IRS has successfully delivered more than $1.5 trillion to people across the nation through Economic Impact Payments, tax refunds and advance Child Tax Credit payments. A large portion of that amount was distributed during Fiscal Year 2021, which is the focal point of this year's Progress Update. The 56-page report highlights accomplishments around the agency's six strategic goals and identifies ongoing modernization efforts. This year's edition also discusses work related to implementing the various new pieces of legislation related to the pandemic, including the American Rescue Plan. In his opening comments in the Progress Update, Rettig explained that each year the IRS collects more than $3 trillion in taxes and generates approximately 96% of the funding that supports the federal government's operations. "The 2021 Progress Update is not just a report, it's the story of a dedicated group of public servants who continued to deliver for the nation, as they do every year, even in challenging times and while overcoming concerns for themselves, their families and their communities during the pandemic," he said. The document gives numerous examples of how IRS employees helped taxpayers, including: Expanded information and assistance available to taxpayers in additional languages and underserved communities to help deliver Economic Impact Payments, advance Child Tax Credit payments and other services. Developed new online portals for individuals to check on their pandemic-related relief payments and make updates to their personal information. Offered a new online option for tax professionals to obtain signatures from individual and business clients and submit authorization forms electronically. Tax pros also now have an online account option, with new features being added. Served their communities outside official duties through charitable work and service projects. The report also shows ways IRS employees worked to maintain the tax system through a strong, visible and robust tax enforcement presence. "We've continued to develop innovative approaches to understanding, detecting and resolving potential noncompliance to maintain taxpayer confidence in the tax system. We have expanded use of data, analytics and artificial intelligence across all lanes from selection to examination," Rettig said. "A few of our recent notable accomplishments include the creation of an Office of Fraud Enforcement in 2020 as well as an Office of Promoter Investigations in 2021," he said. "These and other steps will help us do a better job of rooting out tax fraud, especially shutting down abusive tax avoidance transactions, including syndicated conservation easements and micro-captive insurance arrangements, as well as abusive transactions involving virtual currencies." The new Progress Update also highlights IRS work partnering on landmark criminal investigative cases that brought down child pornography, drug and terrorist organizations. In 2021, IRS Criminal Investigation's conviction rate remained the highest among federal law enforcement at nearly 93% overall, and 96% for tax cases in particular. "I'm especially proud of our Criminal Investigation Division's efforts overall and in conjunction with the dark web illicit marketplace known as Silk Road," Rettig said. In January 2021, the IRS delivered the Taxpayer First Act Report to CongressPDF, a comprehensive set of recommendations to re-imagine the taxpayer experience, enhance employee training and restructure the organization to increase collaboration and innovation. The report introduced three integrated sets of recommendations required by the law and recognized as major improvement strategies. "We appointed the first-ever Chief Taxpayer Experience Officer," Rettig explained. "And, while outlining the design for the new Taxpayer Experience Office, we initiated several activities toward implementing the Taxpayer Experience Strategy." The IRS will remain focused on making progress and serving the nation as the 2022 filing season begins later this month. "We remain confident the IRS will continue to deliver for our country, just as we have during other times of national urgency," Rettig said.

https://www.irs.gov/newsroom/irs-updates-faqs-for-2020-recovery-rebate-credit

IR-2022-06, January 7, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) on 2020 Recovery Rebate Credit (FS-2022-02)PDF. This updated FAQ includes changes to the information for Topic F: Finding the First and Second Economic Impact Payment Amounts to Calculate the 2020 Recovery Rebate Credit: Question 4, Topic F: updated Questions 8, 9 & 10, Topic F: added These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-updates-topic-g-faqs-for-2020-unemployment-compensation-exclusion

IR-2022-05, January 7, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) on 2020 Unemployment Compensation Exclusion (FS-2022-01)PDF. This updated FAQ adds a question: Question 10, Topic G: Receiving a Refund, Letter, or Notice These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ  

https://www.irs.gov/newsroom/irs-ci-counts-down-the-top-10-cases-of-2021

Cases include tax evasion, Ponzi schemes, COVID fraud, cyber crimes IR-2022-04, January 7, 2022 WASHINGTON — Internal Revenue Service Criminal Investigation (IRS-CI) began counting down the top 10 cases for calendar year 2021 on its Twitter account on January 3. These cases include the agency's most prominent and high-profile investigations of 2021. "The investigative work of 2021 has all the makings of a made for TV movie – embezzlement of funds from a nonprofit, a family fraud ring that stole millions in COVID-relief funds and a $1 billion Ponzi scheme used to buy sports teams and luxury vehicles. But this is real life and I'm grateful to our IRS-CI agents for pursuing these leads and ensuring that the perpetrators were prosecuted for their crimes," said IRS-CI Chief Jim Lee. The top 10 IRS-CI cases of 2021 include: 10. Albuquerque couple sentenced to federal prison in Ayudando Guardians case Susan Harris and William Harris were sentenced to 47 and 15 years in federal prison, respectively. They stole funds from Ayudando Guardians Inc., a nonprofit organization that provided guardianship, conservatorship and financial management to hundreds of people with special needs. 9. Rochester man going to prison and ordered to pay millions in restitution for his role in Ponzi scheme that bilked investors out of millions of dollars John Piccarreto Jr. was sentenced to 84 months in federal prison and ordered to pay restitution totaling $19,842,613.66 after he was convicted of conspiracy to commit mail fraud and filing a false tax return. He conspired with others to obtain money through an investment fraud Ponzi scheme. 8. Orlando sisters sentenced in $25 million tax fraud scheme Petra Gomez and her co-conspirator, her sister, Jakeline Lumucso, were sentenced to eight and four years in federal prison, respectively. They operated a tax preparation business with five locations in central Florida that filed more than 16,000 false tax returns for clients from 2012 to 2016 with a total estimated loss to the IRS of $25 million. 7. Russian bank founder sentenced for evading exit tax upon renouncing U.S. citizenship Oleg Tinkov, aka Oleg Tinkoff, was ordered to pay more than $248 million in taxes and sentenced to time-served and one year of supervised release after he renounced his U.S. citizenship in an effort to conceal large stock gains that were reportable to the IRS after the company he founded became a multibillion dollar, publicly traded company. 6. Ontario man who ran multimillion-dollar unlicensed bitcoin exchange business sentenced to 3 years in federal prison Hugo Sergio Mejia was sentenced to three years in federal prison and required to forfeit all assets derived from running an unlicensed business that exchanged at least $13 million in Bitcoin and cash, and vice versa, often for drug traffickers. He charged commissions for the transactions and established separate companies to mask his true activity. 5. Owner of bitcoin exchange sentenced to prison for money laundering Rossen G. Iossifov, a Bulgarian national, was sentenced to 121 months in federal prison for participating in a scheme where popular online auction and sales websites — such as Craigslist and eBay — falsely advertised high-cost goods (typically vehicles) that did not actually exist. Once victims sent payment for the goods, the conspiracy engaged in a complicated money laundering scheme where U.S.-based associates would accept victim funds, convert these funds to cryptocurrency, and transfer the cryptocurrency to foreign-based money launderers. 4. Ex-pastor of Orange County church sentenced to 14 years in federal prison for orchestrating $33 million con that defrauded investors Kent R.E. Whitney, the ex-pastor of the Church of the Health Self, was sentenced to 14 years in federal prison and ordered to pay $22.66 million in restitution to victims after defrauding investors of $33 million by orchestrating a church-based investment scam. At his direction, church representatives appeared on television and at live seminars to make false and misleading claims to lure investors to invest in church entities. Victims sent more than $33 million to the church and received fabricated monthly statements reassuring them that their funds had been invested, when in reality, little to no money ever was. 3. Prairie Village man sentenced to 12 years for $7.3 million dollar payday loan fraud, $8 million tax evasion Joel Tucker was sentenced to 12 years and six months in federal prison and ordered to pay over $8 million in restitution to the IRS after selling false information or fictitious debts to payday loan businesses and not filing federal tax returns – for himself or his businesses – with the IRS for multiple years. 2. DC Solar owner sentenced to 30 years in prison for billion dollar Ponzi scheme Jeff Carpoff, the owner of California-based DC Solar, was sentenced to 30 years in federal prison and forfeited $120 million in assets to the U.S. government for victim restitution after creating a Ponzi-scheme that involved the sale of thousands of manufactured mobile solar generator units (MSGs) that didn't exist. He committed account and lease revenue fraud and purchased a sports team, luxury vehicles, real estate and a NASCAR team with the proceeds. 1. San Fernando Valley family members sentenced to years in prison for fraudulently obtaining tens of millions of dollars in COVID relief The Ayvazyan family received sentences ranging from 17.5 years in prison to 10 months of probation for crimes ranging from bank and wire fraud to aggravated identity theft. The family used stolen and fictitious identities to submit 150 fraudulent applications for COVID-relief funds based on phony payroll records and tax documents to the Small Business Administration, and then used the funds they received to purchase luxury homes, gold coins, jewelry designer handbags and more. Richard Ayvazyan and his wife Terabelian cut their ankle monitoring devices and absconded prior to their sentencing hearing; they are currently fugitives. Follow IRS-CI on Twitter @IRS_CI to learn more. IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, boasting a nearly 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 11 attaché posts abroad.

https://www.irs.gov/newsroom/irs-reminder-to-many-make-final-2021-quarterly-tax-payment-by-jan-18-avoid-surprise-tax-bill-possible-penalty

IR-2022-03, January 5, 2022 WASHINGTON — The IRS urges taxpayers to check into their options to avoid being subject to estimated tax penalties, which apply when someone underpays their taxes. Taxpayers who paid too little tax during 2021 can still avoid a surprise tax-time bill and possible penalty by making a quarterly estimated tax payment now, directly to the Internal Revenue Service. The deadline for making a payment for the fourth quarter of 2021 is Tuesday, January 18, 2022. Income taxes are pay-as-you-go. This means that taxpayers need to pay most of their tax during the year as income is earned or received. There are two ways to do this: Withholding from paychecks, pension payments and some government payments, such as Social Security benefits or unemployment compensation. Most people pay their tax this way. Making quarterly estimated tax payme nts throughout the year to the IRS. Self-employed people and investors, among others, often pay tax this way. Act now to avoid a penalty Either payment method--withholding or estimated tax payments--or a combination of the two, can help avoid a surprise tax bill at tax time and the accompanying penalty that often applies. If a taxpayer failed to make required quarterly estimated tax payments earlier in the year, making a payment soon to cover these missed payments will usually lessen and may even eliminate any possible penalty. Because the penalty calculation considers the date on which the payment or payments were made, even making a payment now, rather than waiting until the April filing deadline, often helps. Who needs to make a payment People who owed tax when they filed their 2020 tax return may find themselves in the same situation again when they file for 2021. This will likely be true, especially if they failed to take action to avoid another shortfall by increasing their withholding during 2021. People in this situation often include those who itemized in the past but are now taking the standard deduction, two wage-earner households, employees with non-wage sources of income and those with complex tax situations. In addition, families who received advance payments of the Child Tax Credit during 2021 but don't expect to qualify for the credit when they file their 2021 return, may need to make an estimated tax payment. Additional points to consider: Most income is taxable. Besides wages, interest and other investment income, which also includes income related to virtual currencies, refund interest and income from the gig economy are taxable. Unemployment compensation is fully taxable in 2021. The American Rescue Plan Act of 2021 allowed an exclusion of unemployment compensation of up to $10,200 for 2020 only. Often, this means that an estimated tax payment should be made, especially if no federal income tax was withheld from these payments. Various financial transactions, especially late in the year, can often have an unexpected tax impact. Examples include year-end and holiday bonuses, stock dividends, capital gain distributions from mutual funds, and stocks, bonds, virtual currency, real estate or other property sold at a profit. The Tax Withholding Estimator, available on IRS.gov, can often help people determine if they need to make an estimated tax payment. Alternatively, taxpayers can use the worksheet included with estimated tax Form 1040-ES, also available on IRS.gov. In addition, Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can be especially helpful to those who have dividend or capital gain income, owe alternative minimum tax or self-employment tax, or have other special situations. How to make an estimated tax payment The fastest and easiest way to make an estimated tax payment is to do so electronically using IRS Direct Pay. Taxpayers can schedule a payment in advance for the January deadline. Taxpayers can now also make a payment through their IRS Online Account. There they can see their payment history, any pending or recent payments and other useful tax information. The IRS does not charge a fee for these services. Plus, using these or other electronic payment options ensures that a payment gets credited promptly. For information on other payment options, visit IRS.gov/payments. Planning ahead Though it's too early to file a 2021 return, it's never too early to get ready for the tax-filing season ahead. For more tips and resources, check out the Get Ready page on IRS.gov.

https://www.irs.gov/newsroom/irs-revises-form-1024-used-by-most-types-of-organizations-to-apply-for-exempt-status-to-allow-electronic-filing

IR-2022-2, January 3, 2022 WASHINGTON — As part of ongoing efforts to improve service for the tax-exempt community, the IRS has revised Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, to allow electronic filing. Beginning January 3, 2022, applications for recognition of exemption on Form 1024 must be submitted electronically online at Pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1024 (Rev. 01-2018) and letter applications. "Electronic filing makes it easier to complete an application for tax-exempt status while reducing errors," said Sunita Lough, Commissioner of the IRS Tax Exempt and Government Entities division. "Electronic filing also shortens IRS processing time so applicants won't wait as long for a response." Organizations requesting determinations under Section 521 are now also able to use the electronic Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code. The required user fee for Form 1024 will remain $600 for 2022. Applicants must pay the fee through Pay.gov when submitting the form. Payment can be made directly from a bank account or by credit or debit card. Organizations are encouraged to subscribe to Exempt Organizations Update, a free IRS e-Newsletter, for form updates and other exempt organization news. As part of the revision, applications for recognition of exemption under Sections 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and 501(d) can no longer be submitted as letter applications. Instead, these requests must be made on the electronic Form 1024. Accordingly, organizations that are described in Section 501(c) (other than 501(c)(3) and (c)(4)) and 501(d) applying for tax-exempt status must now use the electronic Form 1024. Section 501(c)(3) organizations must continue to use Form 1023 or Form 1023-EZ, and Section 501(c)(4) organizations must continue to use Form 1024-A. Those forms also must be filed electronically. Additional information on how to apply for IRS recognition of tax-exempt status: Applying for Tax-Exempt Status on IRS.gov Revenue Procedure 2022-8PDF 

https://www.irs.gov/newsroom/for-colorado-wildfire-victims-irs-extends-2021-tax-filing-deadline-other-deadlines-to-may-16

IR-2022-01, January 3, 2022 WASHINGTON — Victims of this weekend's wildfires in Colorado will have until May 16, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to taxpayers affected by wildfires that took place starting on December 30, 2021, in parts of Colorado. Currently, relief is available to affected taxpayers who live or have a business in Boulder County, but the IRS will provide the same relief to any other Colorado localities designated by FEMA. The current list of eligible localities is always available on the disaster relief page. The tax relief postpones various tax filing and payment deadlines that occurred starting on December 30. As a result, affected individuals and businesses will have until May 16 to file returns and pay any taxes that were originally due during this period. This includes 2021 individual income tax returns due on April 18, as well as various 2021 business returns normally due on March 15 and April 18. Among other things, this means that affected taxpayers will have until May 16 to make 2021 IRA contributions. In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 16, 2022 to file their 2021 return and pay any tax due. The May 16 deadline also applies to quarterly estimated income tax payments due on January 18 and April 18. Among other things, this means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 18, 2022, and instead include it with the 2021 return they file, on or before May 16. In addition, the quarterly payroll and excise tax returns normally due on January 31 and May 2, 2022, are also now due on May 16. Penalties on payroll and excise tax deposits due on or after December 30 and before January 14 will be abated as long as the deposits are made by January 14, 2022. The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated. In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred, or the return for the prior year. Be sure to write the FEMA declaration number – 4634DR − on any return claiming a loss. See Publication 547 for details. The tax relief is part of a coordinated federal response to the damage caused by these wildfires and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

https://www.irs.gov/newsroom/news-release-and-fact-sheet-archive

The most recent news releases may be found on the Newsroom page, which also contains links to other items of interest. The current month's news releases may be found on our News Releases page. The most recent fact sheets may be found on the current year's fact sheets page. Subscribe to IRS Newswire to get news releases via email from the IRS. Below are the web versions of our news releases and fact sheets from November 2002 through last month. We also have a searchable news release and fact sheet listing in .pdf format from 1997 to 2002. News releases and fact sheets 2022 January-March April-June July-September October-December January  February March  April May June July August September October November December Fact Sheets 2021 January-March April-June July-September October-December January  February March  April May June July August September October November December Fact Sheets 2021 2020 January-March April-June July-September October-December January  February  March  April  May  June  July  August  September  October  November  December  Fact Sheets 2020 2019 January-March April-June July-September October-December January February  March April May June July August September October November December Fact Sheets 2019 2018 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2018 2017 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2017 2016 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2016 2015 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2015 2014 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2014 2013 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2013 2012 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2012 2011 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2011 2010 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2010 2009 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2009 2008 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2008 2007 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2007 2006 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2006 2005 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2005 2004 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2004 2003 January-March April-June July-September October-December January February March April May June July August September October November December Fact Sheets 2003 2002 January-March April-June July-September October-December       November December

https://www.irs.gov/newsroom/irs-updates-faqs-for-the-premium-tax-credit

IR-2022-44, February 24, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) on the Premium Tax Credit. FS-2022-13PDF includes the following FAQ revisions and additions: Updated The Basics FAQs: Q1, Q3, Q4 Updated Eligibility FAQs: Q5, Q7, Q8, Q9, Q11 Updated Reporting, Claiming and Reconciling FAQs: Q24, Q26, Q27 Updated Suspension of Repayment of Excess Advance Payments of the Premium Tax Credit (Excess APTC) for Tax Year 2020 FAQs: Q33 New Unemployment Compensation 2020 and 2021 FAQs: Q38 through Q45 These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/tax-time-guide-use-the-wheres-my-refund-tool-or-irs2go-app-to-conveniently-check-tax-refund-status

IR-2022-43, February 24, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers today that the fastest and easiest way to check on tax refunds is by using the Where's My Refund?  tool on IRS.gov or through the IRS2Go mobile app. This year, more than ever before, those who don't normally have to file a tax return may wish to do so to get child-related tax credits that were expanded by the American Rescue Plan. These include the Child Tax Credit and the Child and Dependent Care CreditPDF. Refund updates Filing electronically and using direct deposit is the safest and fastest way to file an accurate return and receive a tax refund. Taxpayers can use Where's My Refund? to start checking their refund status within 24 hours after an e-filed return is received or four weeks after the taxpayer mails a paper return. The tool's tracker displays progress through three phases: Return Received, Refund Approved and Refund Sent. Refund timing Most tax refunds are issued within 21 days, however, some may take longer. There are several reasons this can happen: The return includes a claim for the Earned Income Tax Credit or Additional Child Tax Credit. The time between the IRS issuing the refund and the bank posting it to an account may vary since many banks do not process payments on weekends or holidays. The return may require additional review. The return may include errors or be incomplete. The return could be affected by identity theft or fraud. The IRS will contact taxpayers by mail if more information is needed to process a return. Earned Income Tax Credit and the Additional Child Tax Credit Due to changes to the tax law made by the Protecting Americans from Tax Hikes Act (PATH Act), the IRS can't issue Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) refunds before mid-February. This includes the entire refund, not just the part that's related to the credit claimed on a tax return. Where's My Refund? and IRS2Go are updated for most early EITC/ACTC filers with an estimated deposit date by February 19, if they file their taxes early. If a filer claimed the EITC or the ACTC, they can expect to get their refund March 1 if: They file their return online, They choose to get their refund by direct deposit and No issues were found with their return. Ignore refund myths Some taxpayers mistakenly believe they can expedite their refund by ordering a tax transcript, calling the IRS or calling their tax preparer. Ordering a tax transcript will not help a taxpayer get their refund faster or find out when they'll get their refund. The information available on Where's My Refund? is the same information available to IRS telephone assistors. Taxpayers can find answers to questions, forms and instructions and easy-to-use tools at IRS.gov. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax (For Individuals)PDF. More resources: Directory of Federal Tax Return Preparers with Credentials and Select Qualifications Choosing a Tax Professional IRS Free File Free Tax Return Preparation for Qualifying Taxpayers

https://www.irs.gov/newsroom/interest-rates-increase-for-the-second-quarter-of-2022

IR-2022-42, February 23, 2022 WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning April 1, 2022. The rates will be: 4% for overpayments (3% in the case of a corporation); 1.5% for the portion of a corporate overpayment exceeding $10,000; 4% for underpayments; and 6% 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 January 2022 to take effect February 1, 2022, based on daily compounding. Revenue Ruling 2022-05PDF announcing the rates of interest, will appear in Internal Revenue Bulletin 2022-10, dated March 7, 2022.

https://www.irs.gov/newsroom/2022-low-income-taxpayer-clinic-list-now-available

IR-2022-41, February 22, 2022 WASHINGTON — The Internal Revenue Service's Low Income Taxpayer Clinic (LITC) program office announced today that its 2022 Publication 4134, Low Income Taxpayer Clinic ListPDF, is now available. IRS Publication 4134, Low Income Taxpayer Clinic List, provides information about LITCs by geographic area, including contact information and details about the languages, in addition to English, in which each LITC offers services. How an LITC can help A Low Income Taxpayer Clinic (LITC) represents individuals whose incomes are generally at or below 250% of the federal poverty guideline, and who are seeking to resolve tax problems with the IRS, such as audits, appeals and tax collection disputes. LITCs can represent taxpayers in court as well as before the IRS. They also can provide information about taxpayer rights and responsibilities in different languages for English as a Second Language (ESL) taxpayers. LITC program information The LITC program is a federal grant program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. Through the LITC program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. LITCs provide services for free or a small fee. They receive IRS grants but work independently to assist and advocate for taxpayers. Interested in becoming an LITC? Organizations interested in representing, educating and advocating for low-income and ESL taxpayers can check out this video about applying for an LITC grant and review the most recent application packagePDF. There are presently no LITCs in the states of Montana and North Dakota, the territory of Puerto Rico, as well as unserved counties in the states of Arizona, Florida, Idaho, Nevada, North Carolina and Pennsylvania. Qualifying organizations that will serve taxpayers in these states, territories and unserved counties are strongly encouraged to apply. A complete list of organizations that are currently funded and where they are located can be found by looking at Publication 4134.PDF Individuals who have questions or need additional information about the LITC program or application process, can contact Karen Tober with the LITC program office via email at litcprogramoffice@irs.gov.

https://www.irs.gov/newsroom/irs-provides-additional-updates-to-frequently-asked-questions-and-answers-for-2021-recovery-rebate-credit

IR-2022-40, February 17, 2022 WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit. These FAQs (FS-2022-12PDF) revisions are as follows: 2021 Recovery Rebate Credit — Topic A: General Information: Q3, Q6 2021 Recovery Rebate Credit — Topic B: Claiming the Recovery Rebate Credit if you aren't required to file a 2021 tax return: Q5 2021 Recovery Rebate Credit — Topic D: Claiming the 2021 Recovery Rebate Credit: Q6 2021 Recovery Rebate Credit — Topic E: Calculating the 2021 Recovery Rebate Credit: Q7, Q18 2021 Recovery Rebate Credit — Topic G: Finding the Third Economic Impact Payment Amount to Calculate the 2021 Recovery Rebate Credit: Q2, Q7, Q8 Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021. Note: Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021. Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021. To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes. Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit. They should review the Recovery Rebate Credit page to determine their eligibility. The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. Individuals can now view this information in their online account. People can also locate this information on Notice 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them through March 2022. The FAQs cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible. File for free and use direct deposit Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-reminds-those-with-farming-fishing-businesses-of-march-1-tax-deadline

March 3 update: See IRS news release 2022-49 for an update for some farmers and fishers who encountered a problem filing using software. IR-2022-39, February 17, 2022 WASHINGTON — The Internal Revenue Service today reminded those with income from a farming or fishing business they should file and pay their entire tax due on or before Tuesday, March 1, if they did not make estimated tax payments. Taxpayers can pay from their bank account using their Online Account or they can schedule payments in advance using IRS Direct Pay. Farmers and fishers who decided to forgo making estimated tax payments have the option to pay the entire tax due on or before March 1. Normally, this special rule applies when income from farming or fishing made up at least 2/3 of the total gross income in either the current or the preceding tax year. Those opting to file by the regular April 18 deadline should have made an estimated tax payment by January 15 to avoid an estimated tax penalty. For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Those in the farming business report income and expenses on Schedule F (Form 1040), Profit or Loss From Farming. Additionally, they use Schedule SE (Form 1040), Self-Employment Tax to figure self-employment tax if their net earnings from farming are $400 or more. For more information refer to Topic No. 554, Publication 225, Farmer's Tax Guide and Agriculture Tax Center. Those in the fishing business report income and expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship). They also use Schedule SE (Form 1040) to figure self-employment tax if their net earnings from fishing are $400 or more. For general information about the rules applying to individuals, including commercial fishermen who file Schedule C, refer to Publication 334, Tax Guide for Small Business. Those whose trade or business is a partnership or corporation see Publication 541, Partnerships or Publication 542, Corporations. Paying online is safe, fast and easy Online account allows individuals to make same-day payments from a checking or savings account. Taxpayers can view up to 5 years of their payment history, any pending or scheduled payments, balance and payment plan information, and digital copies of certain notices from the IRS. They can also view their Adjusted Gross Income from their most recent tax return, their Economic Impact Payment amounts, and their advance Child Tax Credit payment information. Taxpayers can use IRS Direct Pay to schedule a payment from their bank account for their tax deadline with no registration or login required. Those who want to pay business taxes should enroll in and use the Electronic Federal Tax Payment System (EFTPS). For more information about these and other payment options visit IRS.gov/payments. Related items Tax Topic 416, Farming and Fishing Income Publication 5034, Need to Make a Tax Payment? (English and Spanish)PDF

https://www.irs.gov/newsroom/irs-provides-further-details-on-additional-relief-for-certain-partnerships-preparing-schedules-k-2-and-k-3-for-2021

IR-2022-38, February 16, 2022 WASHINGTON — The IRS today provided further details on additional transition relief for certain domestic partnerships and S corporations preparing the new schedules K-2 and K-3 to further ease the change to these new schedules. Those eligible for the relief will not have to file the new schedules for tax year 2021. The new schedules K-2 and K-3 improve reporting by standardizing international tax information to partners and flow-through investors, making it easier for them to report these items on their tax returns. In addition, the changes ease flow-through return preparation compliance by clarifying obligations and standardizing the format for reporting. Notice 2021-39PDF provides penalty relief for good-faith efforts to adopt the new schedules. Today's transition relief, appearing in new frequently asked questions (FAQs) on Schedules K-2 and K-3, allows an additional exception for tax year 2021 filing requirements by certain domestic partnerships and S corporations. The IRS is providing an additional exception for tax year 2021 to filing the Schedules K-2 and K-3 for certain domestic partnerships and S corporations. To qualify for this exception, the following must be met: In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts.  In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expected to generate foreign source income (see section 1.861-9(g)(3)). In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders nor did the partners or shareholders request the information regarding (on the form or attachments thereto): Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and Line 20c, Form 1065, Schedules K and K-1 (Controlled Foreign Corporations, Passive Foreign Investment Companies, 1120-F, section 250, section 864(c)(8), section 721(c) partnerships, and section 7874) (line 17d for Form 1120-S). The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021. If a partnership or S corporation qualifies for this exception, the domestic partnership or S corporation does not need to file Schedules K-2 and K-3 with the IRS or with its partners or shareholders. However, if the partnership or S corporation is subsequently notified by a partner or shareholder that all or part of the information contained on Schedule K-3 is needed to complete their tax return, then the partnership or S corporation must provide the information to the partner or shareholder. If a partner or shareholder notifies the partnership or S corporation before the partnership or S corporation files its return, the conditions for the exception are not met and the partnership or S corporation must provide the Schedule K-3 to the partner or shareholder and file the Schedules K-2 and K-3 with the IRS. The IRS welcomes additional comments on Schedules K-2 and K-3. This feedback and inquiries can be sent to lbi.passthrough.international.form.changes@irs.gov.

https://www.irs.gov/newsroom/join-the-taxpayer-advocacy-panel-and-help-improve-the-irs-apply-by-april-8

IR-2022-37, February 16, 2022 WASHINGTON — The Internal Revenue Service today announced it is seeking civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP). Applications will be accepted through April 8. What is the Taxpayer Advocacy Panel? The TAP is a federal advisory committee that serves a vital role in tax administration. TAP members volunteer their time and energy to improve IRS services and taxpayer satisfaction by listening to taxpayers, identifying significant taxpayer concerns and making recommendations to address those concerns. The TAP is a diverse group of ordinary citizens who possess a sense of civic duty, patriotism and belief in an effective and well-regarded tax system The TAP makes a difference and by joining it you can too. TAP successes in 2021 Each year, the TAP submits dozens of recommendations to the IRS. In 2021 alone, the TAP made 193 recommendations to the IRS, many of which have already been implemented. Because of the TAP's recommendations in 2021, the IRS has improved many of its tax forms, instructions and publications, and clarified the information in several frequently-used IRS letters. When the IRS closed one of its processing centers in 2021, the TAP worked with the IRS to ensure news releases and other messaging was issued to alert impacted taxpayers in several states. The TAP effectively advocated to have the IRS partner with volunteer tax preparation organizations to spread the message even further. Martha J. Lewis, 2022 National TAP Chair, recently stated, "If we look at the past and all that TAP has accomplished, it's truly amazing. We still have a lot of work to do, especially in the area of taxpayers understanding what we do and how we can help them." Who can apply To the extent possible, the TAP includes members from all 50 states, the District of Columbia and Puerto Rico, as well as one member to represent U.S. citizens living and working abroad. Each member is appointed to represent the interests of taxpayers in their geographic location as well as taxpayers overall. Federal advisory committees are required to have a balanced representation of different viewpoints. Therefore, applicants from under-represented groups, such as Native Americans and non-tax professionals, are particularly encouraged to apply. TAP is currently seeking candidates in the following states: Alabama, Arkansas, Arizona, California, Colorado, Florida, Iowa, Idaho, Illinois, Indiana, Kentucky, Massachusetts, Maine, Missouri, Mississippi, Montana, North Carolina, North Dakota, New Hampshire, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Wisconsin and West Virginia. However, candidates residing in all the listed locations are encouraged to apply, and all timely applications will be considered. TAP members must be U.S. citizens who are current with their federal tax obligations and able to commit 200 to 300 volunteer hours during the year. TAP members must also pass a Federal Bureau of Investigation criminal background check. Members cannot be federally registered lobbyists. Current Department of the Treasury or IRS employees cannot serve on the panel. Former Department of the Treasury or IRS employees and former TAP members can be considered for appointment three years after their employment or previous TAP membership has ended. Tax practitioner applicants must be in good standing with the IRS (meaning not currently under suspension or disbarment). New TAP members will serve a three-year term starting in December 2022. Applicants chosen as alternate members will be considered to fill any vacancies in their areas during the next three years. More information For additional information about the TAP and to start the application process, visit www.improveirs.org or call toll-free at 888-912-1227 and select prompt number five. Callers outside the U.S. may call 214-413-6523 (not a toll-free number) or email the TAP staff at tap.recruitment@irs.gov. A video is also available with more information about the TAP and about how to contribute to this dynamic group of volunteers.

https://www.irs.gov/newsroom/latest-spear-phishing-scams-target-tax-professionals

IR-2022-36, February 16, 2022 WASHINGTON — With tax season in full swing, the Internal Revenue Service, state tax agencies and tax industry today warned tax professionals of new email scams that attempt to steal their tax software preparation credentials. The Security Summit partners warned these scams serve as a reminder that tax professionals remain prime targets for thieves. These thieves try to steal client data and tax preparers' identities in an attempt to file fraudulent tax returns for refunds. The latest phishing email uses the IRS logo and a variety of subject lines such as "Action Required: Your account has now been put on hold." The IRS has observed similar bogus emails that claim to be from a "tax preparation application provider." One such variation offers an "unusual activity report" and a solution link for the recipient to restore their account. "Scams continue to evolve, and this one is especially sinister since it threatens tax professional's accounts," said IRS Commissioner Chuck Rettig. "Tax professionals must remain vigilant in identifying and staying clear of these IRS impersonation emails. A little extra care can protect the tax professionals and their clients." Emails claiming "Your account has been put on hold" are scams The IRS has observed similar bogus emails that claim to be from tax software providers. The scam email will send users to a website that shows the logos of several popular tax software preparation providers. Clicking on one of these logos requests tax preparer account credentials. The IRS warns tax pros not to respond or take any of the steps outlined in the email. Similar emails include malicious links or attachments that are set up to steal informationPDF or to download malware onto the tax professional's computer. In this case, if recipients enter their credentials into the pop up window, thieves can use this information to file fraudulent returns by using credentials that were provided by the tax professional. An example of this type of bogus email states: Your account has now been put on hold ALL preparers are required to apply security feature to their Tax Pro account towards 2021 Tax Returns processing. You have failed to apply new update before expiry date You are restore and update your acc|ount immediately. Please Click Here to update your acc|ount now. Important Failure to update your account within the next 24hours will lead to you account being terminated and be barred from filing tax returns claims for 2021 tax season Your access will be restored once you have updated your details. Sincerely, IRS.gov eServices Tax professionals who clicked on one of the URLs and then entered in their account information should contact their tax software preparation provider's support hotline. Tax professionals who get a scam email should save the email as a file and then send it as an attachment to phishing@irs.gov. They should also notify the Treasury Inspector General for Tax Administration at www.tigta.gov to report the IRS impersonation scam. Both TIGTA and the IRS Criminal Investigation division are aware of this scam. The IRS, state tax agencies and the nation's tax industry – working together in the Security Summit initiative – have taken numerous steps since 2015 to protect taxpayers, businesses and the tax system from identity thieves. Summit partners continue to warn people to watch out for common scams and schemes this tax season. For additional information and help, tax professionals should review Publication 4557, Safeguarding Taxpayer DataPDF and Identity Theft Information for Tax Professionals.

https://www.irs.gov/newsroom/tax-time-guide-make-irsgov-the-first-stop-for-tax-help

IR-2022-35, February 16, 2022 WASHINGTON — With phone volumes continuing at historic levels, the Internal Revenue Service reminds taxpayers IRS.gov, should be the first stop for taxpayers seeking information and help with their federal taxes. Available around the clock, IRS.gov has a variety of online tools, applications, and resources available to help people prepare and file their taxes or help with refund tracking. Research tools like the Interactive Tax Assistant and answers for Frequently Asked Questions provide in-depth answers on many tax subjects. Prepare and file taxes online for free Taxpayers can use IRS Free File to prepare and electronically file their returns. They can also set up direct deposit for their refunds, which is the fastest way to get their money. IRS Free File software products are part of a 20-year partnership with leading tax software providers who make their online tax preparation products available for free with the IRS. Free File is available to any person or family who earned $73,000 or less in 2021. This represents about 70% of taxpayers. IRS Free File is free when eligible taxpayers go through IRS.gov/freefile. In addition, Free File Fillable Forms, the electronic version of paper IRS tax forms, are available to all taxpayers earning any income amount. They're most useful for those who are comfortable preparing and filing their own taxes online. MilTax is also available for members of the military and qualifying veterans. This Department of Defense program generally offers free online tax preparation and e-filing software for federal returns and up to three state returns. Users can also set up direct deposit for their refunds. Find answers with the Interactive Tax Assistant The Interactive Tax Assistant answers general tax law questions, including helping to determine if a type of income is taxable or if someone is eligible to claim certain credits and deductions. With changes to income and other life events for many in 2021, tax credits and deductions can mean more money in a taxpayer's pocket. Get an Identity Protection PIN An Identity Protection PIN (IP PIN) is a six-digit number that prevents criminals from filing a fraudulent tax return using another taxpayer's Social Security number. The IP PIN is known only to the taxpayer and the IRS, and helps the IRS verify the taxpayer's identity when they file their electronic or paper tax return. Locate local free tax preparation The IRS's Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation, electronic filing, and direct deposit of refunds to qualified taxpayers. The program is free for: People who generally make $58,000 or less Those with disabilities Taxpayers with English as a second language The Tax Counseling for the Elderly (TCE) program also offers free tax help for taxpayers, particularly those age 60 and older. The VITA/TCE Site Locator can help eligible taxpayers find the nearest community-based VITA/TCE site staffed by IRS-trained and certified volunteers. Find a local tax professional IRS.gov offers a searchable directory that helps taxpayers find qualified local tax professionals in their area. The list can be sorted by credentials and qualifications. IRS tips for choosing a tax preparer and how to avoid unethical "ghost" return preparers are important starting points before hiring a tax professional. Online Account can help Taxpayers can securely access their individual Online Account to view important information they can use to file an accurate return. This includes: Advance Child Tax Credit and Economic Impact Payment amounts: Total amounts of advance Child Tax Credit payments and Economic Impact Payments needed to complete an accurate return are found on the Tax Records page. Adjusted gross income: Taxpayers can find their AGI from their most recently filed tax return. This helps if they use a different tax software or tax preparer this year. Estimated tax payment amounts: The total of any estimated tax payments made during the year or refunds applied as a credit can be found on the Account Balance page, and a record of each payment appears under Payment Activity. Communication preference: Individuals can update their communication preferences. They can request personalized email notifications for new digital notices and go paperless for certain notices from the IRS. Tax transcripts: Taxpayers can view, print or download a tax transcript after the IRS has processed the return, which can show return and/or account data. They can also find changes or transactions made after they filed their original return. Make a tax payment Taxpayers can make a payment from their bank account through their Online Account or with IRS Direct Pay. In Online Account, they can view up to 5 years of their payment history and any pending or scheduled payments. Taxpayers can see their different payment options on IRS.gov which include: Electronic Funds Withdrawal (during e-filing), credit or debit card, check or money order, or cash at a participating retail store. Set up a payment plan Taxpayers can meet their tax obligation in monthly installments by setting up a payment plan on IRS.gov/paymentplan in a matter of minutes. Setup fees may apply for some types of plans. An offer in compromise is a way for a taxpayer to settle their tax debt for less than the full amount. A pre-qualifier tool is available online. If the IRS determines a taxpayer is unable to pay, it may temporarily delay collection until the taxpayer's financial condition improves. Track refunds with Where's My Refund? Taxpayers can receive the most up-to-date information about their tax refund using the Where's My Refund? tool on IRS.gov and on the official IRS mobile app, IRS2Go. The IRS2Go app offers great mobile features Users can check the status of an income tax refund within 24 hours after the IRS accepts their electronically filed return, or about four weeks after mailing a paper return. The IRS2Go app also provides easy access to mobile-friendly payment options like IRS Direct Pay, offering a free, secure way to pay directly from a bank account. It can locate free tax help, connect to IRS social media accounts and can generate login security codes for certain IRS online services, allowing the retrieval of codes through IRS2Go instead of using text messages. IRS Outreach Connection The Outreach Connection page provides information for groups inside and outside the tax community. Subscribers to Outreach Connection can keep clients, employees, customers, constituents, partners and even families connected to tax-related useful information and materials for tax topics and issues that affect them. This release is part of the Tax Time Guide, a series of news releases designed to help taxpayers get the information they need to file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax (For Individuals), on IRS.gov.

https://www.irs.gov/newsroom/irs-updates-faqs-for-higher-education-emergency-grants

IR-2022-34, February 15, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) on Higher Education Emergency Grants. This updated FAQ adds questions 8 and 9 in FS-2022-11PDF. In IR-2021-70, Emergency aid granted to students due to COVID is not taxable, the IRS issued FAQs on how students and higher education institutions should report pandemic-related emergency financial aid grants. These FAQs were subsequently updated on May 18, 2021. These updated FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-announces-an-update-to-the-form-14457-voluntary-disclosure-practice-preclearance-request-and-application

IR-2022-33, February 15, 2022 WASHINGTON — The Internal Revenue Service announced today that Form 14457, Voluntary Disclosure Practice Preclearance Request and ApplicationPDF, has been revised, including expanding a section on reporting virtual currency. Form 14457 permits taxpayers who may face criminal prosecution for willful violation of tax law to voluntarily disclose information to the IRS that they failed to previously disclose. Updates and additions to this form include: IRS Criminal Investigation now accepts photocopies, facsimiles and scans of taxpayer signatures. Taxpayers can send this form via eFax to 844-253-5613 to reduce mailing and processing times. Previously, Part II of this form had to be mailed. An expanded section for reporting virtual currency. A penalty structure for employment tax and estate and gift issues. A check-box for inability to pay in full. The updates reflect input from practitioners and stakeholders and take into account trends in the type of financial asset that taxpayers hold. "This is an important form and process for people who recognize it's better to step forward and address their tax situations head-on, before facing IRS enforcement action," said Doug O'Donnell, Deputy Commissioner Services and Enforcement. "The revised form includes a number of updates, and we encourage people to review the guidelines and consult a trusted tax professional." Thousands of taxpayers have used the Voluntary Disclosure Practice since its inception. It serves as a compliance option for taxpayers who have potential criminal exposure and wish to come into compliance with the tax laws. Those making such disclosure are still subject to civil examination and the payment of all applicable taxes, interest and penalties. Taxpayers who did not commit any tax or tax-related crimes and wish to correct mistakes or file delinquent returns should consider other options available to comply with their tax and reporting obligations. The IRS encourages taxpayers to consult with professional tax or legal advisors in determining which option is the most appropriate. A taxpayer's voluntary disclosure must be timely, accurate and complete. The taxpayer must also cooperate with the IRS in determining the correct tax liability, and make full payment of the tax, interest and any applicable penalties. Cooperation includes full payment of all tax, interest and penalties. A taxpayer who is unable to make full payment may request that the IRS consider other payment arrangements. If a taxpayer anticipates they cannot pay the total amount of tax, interest and penalties required, they must disclose this and submit a proposed payment arrangement and a completed, and executed, Collection Information Statement (Form 433-A). The burden is on the taxpayer to establish inability to pay, to the satisfaction of the IRS, based on full disclosure of all assets and income, domestic and foreign, under the taxpayer's control. For more information on the Voluntary Disclosure Practice, as well as other options to come into compliance with the law please visit: IRS Criminal Investigation Voluntary Disclosure Practice IRM 9.5.11, Investigative Process – Other Investigations IRM 4.63.3, Withholding and International Individual Compliance – Offshore Voluntary Disclosure Program, Streamlined Filing Compliance Procedures and Voluntary Disclosure Practice

https://www.irs.gov/newsroom/irs-launches-resource-page-on-irsgov-with-latest-details-and-information-for-taxpayers-during-filing-season

IR-2022-32, February 14, 2022 WASHINGTON — To help taxpayers and tax professionals, the Internal Revenue Service today announced a special new page on IRS.gov to provide the latest details and information affecting the 2022 filing season and ongoing efforts by the agency to address the inventory of previously filed tax returns. During this tax season, taxpayers face a number of issues due to critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic. To raise awareness about these issues and provide people with the latest timely information, the IRS has created a special tax season web page. This page will provide people with a quick overview of information to help people filing tax returns as well as those who have previous year tax returns awaiting processing by the IRS. "The IRS is taking numerous steps to keep this tax season going smoothly while also taking additional action to address the inventory of tax returns filed last year," said IRS Commissioner Chuck Rettig. "We're off to a good start processing tax returns and issuing refunds. But we want people to have an easy way to see the latest information. This new page provides a one-stop shop for the latest key information people and the tax community may need." The "special tax season alerts" page will be available through the IRS.gov home page and shared through social media and other channels. The page will include the latest filing season updates. The IRS began tax season on January 24, and in less than two weeks more than 4 million tax refunds have gone out worth nearly $10 billon. Millions more will go out in the weeks ahead as the IRS enters an important period of the tax season. The page also includes links to important information related to ongoing efforts by the IRS to address the inventory of unprocessed tax returns filed before this year. This includes steps to stop more than a dozen common letters to taxpayers, and updates on IRS operations and the number of unprocessed tax returns. "The combination of the pandemic, new tax laws and numerous other factors led to an unprecedented amount of unprocessed tax returns and correspondence remaining in the IRS inventory during 2021," Rettig said. "We must continue pursuing innovative strategies while supporting the hard work and dedication of our employees to fulfill our commitment to return inventories to a healthy level before entering the 2023 filing season. These steps are making a difference. Refunds for tax returns and amended tax returns in the inventory continue to flow out to taxpayers." The IRS continues to urge taxpayers to carefully review their tax filings for accuracy and file electronically with direct deposit to speed refunds. Special tips are available in several places on IRS.gov, including these top 5 tips; basics on the 2022 tax season and IRS Tax Time Guide.

https://www.irs.gov/newsroom/irs-continues-work-to-help-taxpayers-suspends-mailing-of-additional-letters

IR-2022-31, February 9, 2022 WASHINGTON — As part of ongoing efforts to provide additional help for people during this period, the IRS announced today the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return. These mailings include balance due notices and unfiled tax return notices. The IRS entered this filing season with several million original and amended returns filed by individuals and businesses that have not been processed due to challenges of the historic pandemic and is taking this step to help avoid confusion for taxpayers and tax professionals. “IRS employees are committed to doing everything possible with our limited resources to help people during this period,” said IRS Commissioner Chuck Rettig. “We are working hard, long hours pushing creative paths forward in an effort to be part of the solution, rather than the problem. Our employees continue to expend every effort to balance a confluence of multiple, unprecedented demands − including successfully starting the filing season, working our inventory of unprocessed tax returns as well as looking for additional ways to minimize burden for taxpayers, tax professionals and businesses. “Our efforts are not limited to suspension of these additional letters and the possibility of similar actions going forward. We have redeployed and reallocated resources throughout the IRS and have implemented innovative strategies in an ongoing effort to provide a meaningful reduction in our inventories,” Rettig said. These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices. Some taxpayers and tax professionals may still receive these notices during the next few weeks. Generally, there is no need to call or respond to the notice as the IRS continues to process prior year tax returns as quickly as possible. However, if a taxpayer or tax professional believes a notice is accurate, they should act to rectify the situation for the well-being of the taxpayer. For example, the IRS cautions people with a balance due that interest and penalties can continue to accrue. In addition, IRS employees may in select circumstances issue notices to particular taxpayers to resolve specific compliance issues. The IRS does not have the authority to stop all notices as many are legally required to be issued within a certain timeframe. The IRS will continue to assess other changes and system modifications that the IRS may be able to implement to assist taxpayers on an array of issues. The IRS will continue to make information available to taxpayers throughout the filing season. The IRS encourages those who have a filing requirement and have yet to file a prior year tax return or to pay any tax due to promptly do so as interest and penalties will continue to accrue. Visit IRS.gov for payment options. The suspended notices include: Individual Taxpayer Notices Notice/Letter Number Title Description CP80 Unfiled Tax Return This notice is generally sent when the IRS credited payments and/or other credits to a taxpayer’s account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period. CP59 and CP759 (in Spanish) Unfiled Tax Return(s) - 1st Notice IRS sends this notice when there is no record of a prior year return being filed. CP516 and CP616 (in Spanish) Unfiled Tax Returns – 2nd Notice Request for information on a delinquent return as there is no record of a return filed. CP518 and CP618 (in Spanish) Final Notice – Return Delinquency This is a final reminder notice when there is no record of a prior year(s) return filed.   CP501 Balance Due – 1st Notice This notice is a reminder that there is an outstanding balance on a taxpayer’s accounts. CP503 Balance Due – 2nd Notice This notice is the second reminder that a there is an outstanding balance on a taxpayer’s accounts. CP504 Final Balance Due Notice - 3rd Notice, Intent to Levy The IRS sends this notice when a payment has not been received for an unpaid balance. This notice is a Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)). 2802C Withholding Compliance letter This letter is mailed to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding. Business Notices Notice/Letter Number Title Description CP259 and CP959 (in Spanish) Return Delinquency IRS sends this notice when there is no record of a prior year return being filed. CP518 and CP618 (in Spanish) Final Notice – Return Delinquency This is a final reminder notice that we still have no record of a prior year tax return(s).

https://www.irs.gov/newsroom/low-income-taxpayer-clinics-represented-nearly-20000-taxpayers-dealing-with-an-irs-tax-controversy

IR-2022-30, February 9, 2022 WASHINGTON — The Internal Revenue Service's Low Income Taxpayer Clinic (LITC) Program office today announced highlights from its 2021 annual reportPDF. The report describes how LITCs provide representation, education and advocacy for individual taxpayers who are low-income or speak English as a second language (ESL). The LITC Program is a federal grant program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. LITCs represent individuals whose incomes are generally at or below 250% of the federal poverty guideline and who are seeking to resolve tax problems with the IRS, such as audits, appeals and tax collection disputes. LITCs can represent taxpayers in court as well as before the IRS. They also can provide information about taxpayer rights and responsibilities in different languages for ESL taxpayers. LITCs provide services for free or a small fee. They receive IRS grants but work independently to assist and advocate for taxpayers. Thousands of taxpayers assisted During 2020, LITCs represented nearly 20,000 taxpayers dealing with an IRS tax controversy and provided consultations or advice to another 18,000 taxpayers. They helped taxpayers secure more than $5.8 million in tax refunds and reduced or corrected taxpayers' liabilities by over $116 million. They also brought more than 2,900 taxpayers back into payment compliance. Through outreach and education activities, LITCs strived to ensure individuals understood their rights as U.S. taxpayers by conducting more than 1,000 educational activities that were attended by nearly 134,000 individuals. Some 1,500 volunteers contributed to the success of LITCs by volunteering over 42,000 hours of their time. Nearly 65% of the volunteers were attorneys, certified public accountants or enrolled agents. LITCs used a variety of approaches to successfully advocate for taxpayers. These included utilizing collection alternatives to resolve issues administratively within the IRS, litigating cases in the United States Tax Court and other federal courts, and elevating systemic issues through the Taxpayer Advocate Service's Systemic Advocacy Management System. One success story among many Here is one example of how an LITC assisted a taxpayer in need: A low-income taxpayer was working in a local grocery store making minimum wage. She was the sole breadwinner for her family of four and had never filed a federal income tax return. The IRS sent her Statutory Notices of Deficiency for four tax years, asserting that she owed several thousands of dollars based on unreported income. Unsure what she could do to resolve the issue, the taxpayer sought help from an LITC. The LITC evaluated the case and explained that she needed to contest the notices in the U.S. Tax Court. The LITC helped her file a Tax Court petition and argued that the taxpayer did not owe tax but instead was due refunds, as she was eligible for the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). The LITC's advocacy on the taxpayer's behalf was a success. She ultimately received over $16,000 in refunds, providing the taxpayer with a valuable financial lifeline. In addition to helping the taxpayer resolve her tax issue, the LITC educated her about tax administration and the tax law, including how to have future tax returns prepared and filed for free at a local Volunteer Income Tax Assistance site, and the availability of anti-poverty tax benefits such as the EITC and the CTC. The full reportPDF contains extensive details about the LITC Program and more stories about the extraordinary results that LITCs achieved on behalf of their clients. How to Become an LITC Through the LITC Program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. If anyone is interested in learning more about the LITC Grant Program, they should contact Karen Tober at karen.tober@irs.gov or review Publication 3319, Grant Application and GuidelinesPDF.

https://www.irs.gov/newsroom/tax-time-guide-american-rescue-plan-changes-can-boost-refunds-for-many-families-people-should-file-even-if-they-havent-for-years

IR-2022-29, February 8, 2022 WASHINGTON — The Internal Revenue Service today urged Americans to file a 2021 federal income tax return so they can take advantage of key tax benefits included in the American Rescue Plan and other recent legislation. Often, individuals and families can get these expanded tax benefits, even if they have little or no income from a job, business or other source. This means that many people who don't normally need to file a return should consider doing so this year. Because claiming these benefits could result in tax refunds for many people, individuals should file an accurate return electronically and choose direct deposit to avoid processing delays and speed delivery of their refund. Expanded tax benefits A new fact sheet, FS-2022-10, available now on IRS.gov, describes many of these expanded tax benefits. But the IRS emphasized that these benefits are only available to people who file a 2021 federal income tax return. Benefits include: An expanded Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021. An increased Child and Dependent Care Credit: Families who pay for daycare so they can work or look for work can get a tax credit worth up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons. A more generous Earned Income Tax Credit: The American Rescue Plan boosted the EITC for childless workers. There are also changes that can help low- and moderate-income families with children. The Recovery Rebate Credit: Those who missed out on last year's third-round of Economic Impact Payments (EIP3), also known as stimulus payments, may be eligible to claim the RRC. This credit can also help eligible people whose EIP3 was less than the full amount, including those who welcomed a child in 2021. A deduction for gifts to charity: The majority of taxpayers who take the standard deduction can deduct eligible cash contributions they made during 2021. Married couples filing jointly can deduct up to $600 in cash donations and individual taxpayers can deduct up to $300 in donations. In addition, itemizers who make large cash donations often qualify to deduct the full amount in 2021. See the fact sheet for more information. The IRS reminds early filers that by law, the agency cannot issue EITC refunds before mid-February. The same rule applies to refunds that include the Additional Child Tax Credit (ACTC). This year, the ACTC is typically claimed by Americans abroad who did not have a main home in the United States for more than half of 2021. Normally, the mid-February restriction does not apply to the Refundable Child Tax Credit (RCTC) claimed by people who had a main home in the U.S., unless they also claim the EITC. Helpful reminders The IRS urges everyone to make sure they have all their year-end statements in hand before filing their 2021 return. Besides all W-2s and 1099s, this includes two statements issued by the IRS -- Letter 6419, showing their total advance Child Tax Credit payments, and Letter 6475, showing their total EIP3 payments. Individuals can also use IRS Online Account to see the total amounts of their third round of Economic Impact Payments or advance Child Tax Credit payments. Married spouses who received joint payments will each need to sign into their own account to retrieve their separate amounts. For most Americans, the tax-filing deadline is April 18, 2022. For residents of Maine and Massachusetts, the deadline is April 19, 2022. For Americans who live and work abroad, it's June 15, 2022. Anyone who needs more time to file can get an automatic extension until Oct. 17, 2022. Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov. They can use these resources to get help when it's needed at home, at work or on the go. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

https://www.irs.gov/newsroom/irs-updates-frequently-asked-questions-and-answers-for-2021-recovery-rebate-credit

IR-2022-28, February 8, 2022 WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit. These FAQs (FS-2022-09PDF) were updated: 2021 Recovery Rebate Credit — Topic A: General Information – Q3 2021 Recovery Rebate Credit — Topic D: Claiming the 2021 Recovery Rebate Credit – Q1, Q2, Q6 2021 Recovery Rebate Credit — Topic F: Receiving the Credit on a 2021 Tax Return – Q8, Q9 2021 Recovery Rebate Credit — Topic G: Finding the Third Economic Impact Payment Amount to Calculate the 2021 Recovery Rebate Credit – Q2 Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021. Note: Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021. Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021. To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes. Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit. They should review the Recovery Rebate Credit page to determine their eligibility. The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. Individuals can now view this information in their online account. People can also locate this information on Notice 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them through March 2022. The FAQ's cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible. File for free and use direct deposit Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-announces-transition-away-from-use-of-third-party-verification-involving-facial-recognition

For the latest information see the February 21 IRS statement. IR-2022-27, February 7, 2022 WASHINGTON — The IRS announced it will transition away from using a third-party service for facial recognition to help authenticate people creating new online accounts. The transition will occur over the coming weeks in order to prevent larger disruptions to taxpayers during filing season. During the transition, the IRS will quickly develop and bring online an additional authentication process that does not involve facial recognition. The IRS will also continue to work with its cross-government partners to develop authentication methods that protect taxpayer data and ensure broad access to online tools. "The IRS takes taxpayer privacy and security seriously, and we understand the concerns that have been raised," said IRS Commissioner Chuck Rettig. "Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition." The transition announced today does not interfere with the taxpayer's ability to file their return or pay taxes owed. During this period, the IRS will continue to accept tax filings, and it has no other impact on the current tax season. People should continue to file their taxes as they normally would.

https://www.irs.gov/newsroom/irs-taxpayer-assistance-centers-open-on-special-saturdays-for-face-to-face-help

IR-2022-26, February 4, 2022 WASHINGTON – As part of a larger effort to help people during this year's filing season, the Internal Revenue Service today announced special Saturday hours at many Taxpayer Assistance Centers (TACs) across the country. TACs provide taxpayers with in-person help. Select TACs are open from 9 a.m. to 4 p.m., February 12, March 12, April 9 and May 14. Normally, these centers are not open on Saturdays. No appointments are required. "The IRS continues to do everything we can to help people during this unprecedented period," said IRS Commissioner Chuck Rettig. "Opening these assistance centers for special Saturday hours is designed to provide yet another way for people to get the help they need. We encourage people to review the details on these special Saturday hours so we can help serve them. I'm also extremely grateful to our employees who have stepped up to provide this special assistance." People can receive walk-in help on all services, however, the TACs will not accept cash payments on these Saturdays. During the extra operating hours, people can also ask about reconciling advance Child Tax Credit payments and receive other help. To see which TACs will be open, visit IRS.gov/saturdayhours. Come prepared To arrive prepared, individuals should bring the following information: Current government-issued photo identification, Social Security cards and/or ITIN numbers for members of their household, including spouse and dependents (if applicable) and Any IRS letters or notices received and related documents. During the visit, IRS staff may also request the following information: A current mailing address, An email address and Bank account information, to receive payments or refunds by direct deposit. "We encourage people to receive payments and their tax refunds via direct deposit, which is faster and more secure than other payment methods," said IRS Wage & Investment Commissioner and Taxpayer Experience Officer Ken Corbin. "People who don't have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC's BankFind tool to find an FDIC-insured bank." BankOn, American Bankers Association, Independent Community Bankers of America, National Credit Union Administration have lists of banks and credit unions that allow opening an account online. Veterans can use the Veterans Benefits Banking Program to learn about financial services at participating banks. Services provided The IRS's Contact Your Local Office site lists all services provided at specific TACs. If someone has a question(s) about a tax bill or an IRS audit, or needs help resolving a tax problem, they will receive assistance from IRS employees specializing in these services. If these employees are not available, the individual will receive a referral for these services. Taxpayer Advocate Service employees may also be available to assist with issues that meet certain criteria. IRS staff will schedule appointments for a later date for Deaf or Hard of Hearing individuals who need sign language interpreter services. Foreign language interpreters will also be available. The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. People are required to wear face masks and social distance at these events. People who need assistance preparing tax returns can visit a Volunteer Income Tax Assistance Center (VITA) or Tax Counseling for the Elderly location. VITA sites offer free tax help to qualified individuals who need assistance in preparing their own tax returns, including: People who earn $58,000 or less, Persons with disabilities and Limited English-speaking taxpayers. People who need to pay their federal taxes with cash can visit IRS.gov/payments to get information on several payment options. More information: How to Register for Certain Online Self-Help Tools Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return IRS.gov/rrc to learn about filing requirements for the Recovery Rebate Credit

https://www.irs.gov/newsroom/irs-warning-scammers-work-year-round-stay-vigilant

IR-2022-25, February 3, 2022 WASHINGTON — As the new year begins, the Internal Revenue Service reminds taxpayers to protect their personal and financial information throughout the year and watch out for IRS impersonation scams, along with other schemes, that try to trick people out of their hard-earned money. These schemes can involve text message scams, e-mail schemes and phone scams. This tax season, the IRS also warns people to watch out for signs of potential unemployment fraud. "With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds," said IRS Commissioner Chuck Rettig. "Watching out for these common scams can keep people from becoming victims of identity theft and protect their sensitive personal information that can be used to file tax returns and steal refunds." The IRS, state tax agencies and the nation's tax industry – working together in the Security Summit initiative – have taken numerous steps since 2015 to protect taxpayers, businesses and the tax system from identity thieves. Summit partners continue to warn people to watch out for common scams and schemes this tax season. Text message scams Last year, there was an uptick in text messages that impersonated the IRS. These scams are sent to taxpayers' smartphones and have referenced COVID-19 and/or "stimulus payments." These messages often contain bogus links claiming to be IRS websites or other online tools. Other than IRS Secure Access, the IRS does not use text messages to discuss personal tax issues, such as those involving bills or refunds. The IRS also will not send taxpayers messages via social media platforms. If a taxpayer receives an unsolicited SMS/text that appears to be from either the IRS or a program closely linked to the IRS, the taxpayer should take a screenshot of the text message and include the screenshot in an email to phishing@irs.gov with the following information: Date/time/time zone they received the text message Phone number that received the text message The IRS reminds everyone NOT to click links or open attachments in unsolicited, suspicious or unexpected text messages – whether from the IRS, state tax agencies or others in the tax community. Unemployment fraud As a new tax season begins, the IRS reminds workers to watch out for claims of unemployment or other benefit payments for which they never applied. States have experienced a surge in fraudulent unemployment claims filed by organized crime rings using stolen identities. Criminals are using these stolen identities to fraudulently collect benefits. Because unemployment benefits are taxable income, states issue Form 1099-G, Certain Government Payments, to recipients and to the IRS to report the amount of taxable compensation received and any withholding. Any worker receiving a fraudulent or inaccurate 1099-G should report it to the issuing state agency and request a corrected Form 1099-G. For details on how to report fraud to state workforce agencies, how to obtain a corrected Form 1099-G, how to find a list of state contacts and other steps to take related to unemployment fraud, taxpayers can visit the U.S. Department of Labor's DOL.gov/fraud page. Individuals may be victims of unemployment identity theft if they received: Mail from a government agency about an unemployment claim or payment for which they did not file. This includes unexpected payments or debit cards and could be from any state. An IRS Form 1099-G reflecting unemployment benefits they weren't expecting or didn't receive. Box 1 on this form may show unemployment benefits they did not receive or an amount that exceeds their records for benefits they did receive. The form itself may be from a state in which they did not file for benefits. A notice from their employer indicating the employer received a request for information about an unemployment claim. Email phishing scams The IRS does not initiate contact with taxpayers by email to request personal or financial information. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. If a taxpayer receives an unsolicited email that appears to be from either the IRS or a program closely linked to the IRS that is fraudulent, report it by sending it as an attachment to phishing@irs.gov. The Report Phishing and Online Scams page at IRS.gov provides complete details. There are special circumstances when the IRS will call or come to a home or business. These visits include times when a taxpayer has an overdue tax bill, a delinquent tax return or a delinquent employment tax payment. The IRS may also visit if it needs to tour a business as part of a civil investigation (such as an audit or collection case) or during a criminal investigation. The IRS provides specific guidance on how to know it's really the IRS knocking on your door. Phone scams The IRS does not leave pre-recorded, urgent or threatening messages. In many variations of the phone scam, victims are told if they do not call back, a warrant will be issued for their arrest. Other verbal threats include law-enforcement agency intervention, deportation or revocation of licenses. Criminals can fake or "spoof" caller ID numbers to appear to be anywhere in the country, including from an IRS office. This prevents taxpayers from being able to verify the true call number. Fraudsters also have spoofed local sheriff's offices, state departments of motor vehicles, federal agencies and others to convince taxpayers the call is legitimate. The IRS (and its authorized private collection agencies) will never: Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments. Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying. Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed. Ask for credit or debit card numbers over the phone. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties. For anyone who doesn't owe taxes and has no reason to think they do: Do not give out any information. Hang up immediately. Contact the Treasury Inspector General for Tax Administration to report the call at IRS Impersonation Scam Reporting. Report the caller ID and/or callback number to the IRS by sending it to phishing@irs.gov (Subject: IRS Phone Scam). Report it to the Federal Trade Commission on FTC.gov. Add "IRS Telephone Scam" in the notes. For anyone who owes tax or thinks they do: View tax account information online at IRS.gov to see the actual amount owed. Taxpayers can also review their payment options. Call the number on the billing notice or Call the IRS at 800-829-1040. IRS employees can help. Help for victims of ID theft Unfortunately, scams and schemes can often lead to identity theft. While identity theft can have many consequences, the IRS focuses on tax-related identity theft. Tax-related identity theft occurs when someone uses an individual's stolen Social Security number (SSN) to file a tax return claiming a fraudulent refund. Taxpayers may be unaware of this activity until they e-file a tax return and discover that a return has already been filed using their SSN. Or, the IRS may send them a letter saying it has identified a suspicious return using their SSN. If a taxpayer learns their SSN has been compromised, or they know or suspect they are a victim of tax-related identity theft, the IRS recommends these additional steps: Individuals should respond immediately to any IRS notice; call the number provided. Taxpayers should complete IRS Form 14039, Identity Theft AffidavitPDF, if an e-file tax return rejects because of a duplicate filing under their SSN or they are instructed to do so by the IRS. Individuals can use a fillable form at IRS.gov, then print and attach the form to their paper return and mail according to instructions. Victims of tax-related identity theft should continue to pay their taxes and file their tax return, even if they must do so by paper. Taxpayers who previously contacted the IRS about tax-related identity theft and did not have a resolution should call for specialized assistance at 800-908-4490. More information is available at: IRS.gov/identitytheft or the Federal Trade Commission's IdentityTheft.gov. The official IRS website is IRS.gov. People should be aware of imitation websites ending in .com. This applies to other IRS tools, too, like Free File – they all end in .gov. For more information, visit Tax Scams and Consumer Alerts on IRS.gov. Additional information about tax scams is available on IRS social media sites, including YouTube videos. More information: Taxpayer Bill of Rights

https://www.irs.gov/newsroom/irs-provides-revised-answer-for-2020-recovery-rebate-credit-on-tracing-payments

IR-2022-24, February 2, 2022 WASHINGTON – The Internal Revenue Service today updated its frequently asked questions (FAQs) on 2020 Recovery Rebate Credit (FS-2022-08PDF). This updated FAQ includes a revision to the information on tracing payments under Topic F: Finding the First and Second Economic Impact Payment Amounts to Calculate the 2020 Recovery Rebate Credit: Question 8, Topic F: updated These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. More information on the Recovery Rebate Credit is available on IRS.gov. IRS-FAQ

https://www.irs.gov/newsroom/tax-time-guide-important-considerations-before-filing-a-2021-tax-return

IR-2022-23, February 1, 2022 WASHINGTON — Now that the 2022 tax season is open, the Internal Revenue Service reminds taxpayers to make sure they've got what they need before they file and to consider free resources available to help them get organized. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available at IRS.gov or in Publication 17, Your Federal Income Tax (For Individuals). Don't file before ready While taxpayers should not file late, they also should not file prematurely. People who file before they receive all the proper tax reporting documents risk making a mistake that may lead to processing delays. Typically, year-end forms start arriving by mail – or are available online – in January. Taxpayers should review them carefully. If any of the information shown is inaccurate or not available, taxpayers should contact the payer right away for a correction or to ensure they have their current mailing or email address. New this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 Child Tax Credit. This letter includes the total amount of the 2021 advance Child Tax Credit payments issued and the number of qualifying children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 Child Tax Credit when filing their 2021 tax return and prevent delays in processing. The IRS reminds people to check this information carefully. Most eligible people were already issued their third Economic Impact Payment and won't include any information about it when they file. However, people who didn't qualify for a third payment or did not receive the full amount may be eligible for the 2021 Recovery Rebate Credit based on their 2021 tax situation. They will need the total amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can sign into their IRS Online Account to view the total amount of the third-round Economic Impact Payment or wait to receive IRS Letter 6475. Individuals not required to file must file a tax return to claim important tax credits The IRS strongly encourages individuals who are not required to file a tax return to file one this season to claim potentially thousands of dollars in tax credits. By filing a tax return, individuals could claim: The Recovery Rebate Credit to receive any remaining 2021 stimulus payments that they might not have received (for example, if they added a new child or other dependent in 2021); The remaining Child Tax Credit for which they are eligible, including any monthly payments that they might not have received (for example, if they added a new qualifying child in 2021); and The Earned Income Tax Credit, the federal government's largest refundable tax credit for low- to moderate-income families (the amount of which has been nearly tripled for filers without children). View IRS account information online Individuals can use their IRS Online Account to securely access information about their federal tax account, including payments, tax records and more. To help with filing a return, individuals can view: The total amounts of Economic Impact Payments issued for tax year 2021 The total amount of advance Child Tax Credit payments Their adjusted gross income from their last tax return The total of any estimated tax payments they made, and refunds applied as a credit They can also now make and track payments and manage communication preferences, including the option to go paperless and request email notifications for certain notices available online. Taxpayers are encouraged to register for an online account, if they haven't already, or sign in to access this information and explore these new features. Important 2021 tax documents Organized tax records make preparing a complete and accurate tax return easier and may help taxpayers find overlooked deductions or credits. Taxpayers should wait to file until they have all their supporting income statements including but not limited to: Forms W-2 from employer(s) Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends and distributions from a pension, annuity or retirement plan Form 1099-K, 1099-Misc, W-2 or other income statement if they worked in the gig economy Form 1099-INT if they received interest payments Other income documents and records reporting virtual or crypto currency transactions Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage Letter 6419, 2021 Total advance Child Tax Credit Payments to reconcile advance Child Tax Credit payments Letter 6475, 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit Free help Once taxpayers have collected all their tax documents and information, they're ready to consider how they will file. IRS Free File is a great option for eligible taxpayers who are only filing a tax return to reconcile 2021 advance payments and claim the remaining portion of their Child Tax Credit or to claim the 2021 Recovery Rebate Credit, either because they didn't receive a third-round Economic Impact Payment or did not receive the full amount. IRS Free File can also be used to claim the Earned Income Tax Credit, which provides a refundable tax credit based on a filer's income and family size. IRS Free File is available to any person or family who earned $73,000 or less in 2021. This year, there are eight IRS Free File products in English and one in Spanish. Taxpayers can use a "look up" tool to choose from one of the Free File Providers. Each provider sets its own eligibility standards, generally based on income, age and state residency giving taxpayers who earned $73,000 or less at least one product to use for free. Free File is just one way the IRS provides free tax preparation options to taxpayers through a partnership model. The IRS also partners with community organizations to train IRS-certified volunteers to prepare and electronically file basic income tax returns for qualified individuals for free. Qualified taxpayers who generally make $58,000 or less, persons with disabilities and limited English-speaking taxpayers who need help preparing their own tax returns can get free tax help at one of thousands of community volunteer sites through the Volunteer Income Tax Assistance (VITA) program. And the Tax Counseling for the Elderly (TCE) program offered by AARP, offers free tax help for all taxpayers, particularly those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors. Members of the military and qualifying veterans can use MilTax, a Department of Defense program that generally offers free online tax preparation and e-filing software for federal returns and up to three state returns. New alternative media preference to help taxpayers Beginning January 31, 2022, taxpayers can complete Form 9000, Alternative Media PreferencePDF, to choose to receive their IRS tax notices in Braille, large print, audio or electronic formats. This includes notices about additional taxes or penalties owed. Taxpayers can include the completed form with their tax return, mail it as a standalone form to the IRS or call 800-829-1040 to elect their preferred format. As a reminder, Forms 1040 and 1040-SR are available in Spanish, and Schedule LEP, Request for Change in Language Preference, allows taxpayers to request information in 20 different languages besides English. E-file and choose direct deposit The IRS encourages taxpayers to file electronically and use direct deposit to get their refunds. Combining e-file with direct deposit is the safest and fastest way to receive a refund. Taxpayers can file electronically through a tax professional, IRS Free File or commercial tax preparation software. When choosing e-file and direct deposit, most people receive their refunds in less than 21 days. People who don't have a bank account can visit the FDIC website or use the National Credit Union Administration's Credit Union Locator Tool to find an institution that allows them to open an account online and for tips on how to choose the right account. Veterans can check out the Veterans Benefits Banking Program for access to financial services at participating banks. Taxpayers can also ask their preparer if they offer other electronic refund options. Although most refunds are delivered in 21 days, it could take longer if the tax return includes errors, is incomplete or requires further security review. Paper-filed tax returns and paper refund checks will take even longer this year.

https://www.irs.gov/newsroom/irs-revises-faqs-for-2021-child-tax-credit-and-advance-child-tax-credit-payments

IR-2022-22, February 1, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit Payments. This updated FAQ modifies a question and adds a new question (FS-2022-07PDF): Question 4, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return Question 10, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-reminds-holders-of-foreign-bank-and-financial-accounts-of-april-fbar-deadline

IR-2022-73, March 31, 2022 WASHINGTON – The Internal Revenue Service today reminded U.S. citizens, resident aliens and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is April 15. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network's (FinCEN) websitePDF for further information. Filers missing the April deadlines will receive an automatic extension until October 15, 2022, to file the FBAR. They don't need to request the extension. See FinCEN's websitePDF for further information. Who must file an FBAR The Bank Secrecy Act requires U.S. persons to file an FBAR if they have: Financial interest in, signature authority or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account in a foreign country, and The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year. Because of this threshold, the IRS encourages U.S. persons or entities with foreign accounts, even relatively small ones, to check if this filing requirement applies to them. A U.S. person is a citizen or resident of the United States or any domestic legal entity such as a partnership, corporation, limited liability company, estate or trust. The FBAR must be filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is only available through the BSA E-Filing System website. Taxpayers who are unable to e-file their FBAR must contact FinCEN at 800-949-2732 (703-905-3975 if calling from outside the U.S.) or FRC@fincen.gov. Penalties for failure to file an FBAR Those who don't file an FBAR when required may be subject to significant civil and criminal penalties that can result in a fine and/or prison. The IRS will not penalize those who properly reported a foreign account on a late-filed FBAR if the IRS determines there was reasonable cause for late filing. More details and help available IRS.gov has several resources available 24 hours a day: 2022 FBAR fact sheet Report of Foreign Bank and Financial Accounts (FBAR) International Taxpayers FAQs About International Individual Tax Matters FinCEN's website Reporting Maximum Account Value To help avoid delays with tax refunds, taxpayers living abroad should visit Helpful Tips for Effectively Receiving a Tax Refund for Taxpayers Living Abroad on IRS.gov.

https://www.irs.gov/newsroom/letters-about-third-round-of-economic-impact-payments-issued-important-steps-to-take-for-missing-payments-and-corrections

IR-2022-72, March 30, 2022 WASHINGTON — With the completion of special mailings of all Letters 6475 to recipients of the third-round of Economic Impact Payments, the Internal Revenue Service reminds people to accurately claim any remaining third-round stimulus payment on their 2021 income tax return as the 2021 Recovery Rebate Credit. Through December 31, 2021, the IRS issued more than 175 million third-round payments totaling over $400 billion to individuals and families across the country. Most of the third-round payments were issued in the spring and early summer of 2021. The IRS continued to send plus-up payments through December if, after their 2020 tax return was processed last year, the taxpayer was eligible for additional amounts. As required by law, the IRS is no longer issuing first-, second-, or third-round Economic Impact Payments. Instead, people who are missing a stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2020 or 2021 federal tax return. Most eligible people already received the full amount of their credit in advance and don't need to include any information about this payment when they file their 2021 tax return. This includes the additional payments – called "Plus-Up" Payments – the IRS issued to individuals who initially received a third-round Economic Impact Payment based on information on their 2019 tax return and were later eligible for a larger amount based on information on their 2020 tax return. Individuals may securely access their IRS Online Account to view the total amount of the third-round Economic Impact Payment issued to them. This information became available on January 15, 2022, under the Tax Records page in Online Account. For married individuals filing a joint return, each spouse will need to log into their own Online Account or review their own Letter 6475 for their portion of their joint total payment. See FAQs for Topic G: Finding the Third Economic Impact Payment Amount to Calculate the 2021 Recovery Rebate Credit, for more information. Third-round Economic Impact Payment not received? Double-check records first Individuals are encouraged to double-check their bank accounts – especially in early spring and summer of 2021 – to see whether they received a third-round payment in advance last year. If an individual did not receive a third-round payment – and their IRS Online Account shows a payment amount greater than $0, or they received Notice 1444-C or Letter 6475 indicating that a payment was issued to them – they should contact the IRS as soon as possible to see if a payment trace is needed. Note that Online Account shows the most current EIP information, so if a payment was issued and returned to the IRS, the amount shown in Online Account may be less than what is shown in their Letter 6475. Taxpayers should not request a payment trace to determine if they were eligible for a payment or to confirm the amount of payment they should have received. Individuals do not need to wait until their trace is complete to file their 2021 tax return. When completing the Recovery Rebate Credit Worksheet or answering EIP questions in the tax software, taxpayers have two options: Use the amount on the Letter 6475 (or EIP 3 Amount from Online Account) to calculate the RRC amount on line 30. Contact the IRS to trace the EIP amount. Once the EIP trace is completed, the IRS and the taxpayer will receive notification of the results of the EIP trace (the account it was sent to and the amount or a copy of the cashed check). If the trace indicates the taxpayer received the EIP amount, no further action is necessary. If the EIP amount was not received by the taxpayer, the IRS will adjust the RRC amount on the tax return and issue any refund.   Use the amount of EIP the taxpayer believes they received to calculate the RRC amount on line 30. If the taxpayer's calculation does not match the IRS calculation, the processing of the tax return will be delayed, the RRC amount will be adjusted to match IRS records and the taxpayer will receive a notice that includes a telephone number to contact if they disagree with the change to the tax return. If the taxpayer contacts the IRS and disagrees with the changes made, IRS will conduct a trace of the EIP, if necessary. Once the EIP trace is completed, the IRS and the taxpayer will receive notification of the results of the EIP trace (the account it was sent to and the amount or a copy of the cashed check). If the trace indicates the taxpayer received the EIP amount, no further action is necessary. If the EIP amount was not received by the taxpayer, the IRS will adjust the RRC amount on the return and issue any refund. Correcting a mistake after the 2021 tax return is filed; no amended return needed Individuals who made a mistake calculating the Recovery Rebate Credit and claimed an amount on line 30 for the 2021 Recovery Rebate Credit should not file an amended return. The IRS will correct the amount of the 2021 Recovery Rebate Credit and send a notice identifying the changes made. If a correction is needed, there may be a delay in processing the return. If the taxpayer agrees with the changes made by the IRS, no response or action is required to indicate they agree with the changes. If the taxpayer disagrees, they can call the toll-free number listed on the top right corner of their notice. Amended return may be needed for those eligible to claim the credit and IRS records show no Economic Impact Payment was issued For eligible individuals who didn't claim a Recovery Rebate Credit on their 2021 tax return (line 30 is blank or $0) and IRS records do not show the issuance of an Economic Impact Payment, they will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return, to claim the remaining amount of stimulus money for which they are eligible. This includes individuals who may not have received the full amount of their third-round Economic Impact Payment because their circumstances in 2021 were different than they were in 2020. Individuals can use the Interactive Tax Assistant, Should I File an Amended Return?, to help determine if they should amend their original tax return. Taxpayers who need to file an amended return to claim the 2021 Recovery Rebate Credit – even if they don’t usually file taxes - should use the worksheet in the 2021 instructions for Form 1040 and 1040-SR to determine the amount of the credit. Enter the amount on the Refundable Credits section of the Form 1040-X and include "Recovery Rebate Credit" in the Explanation of Changes section. Individuals who filed their 2021 return electronically and need to file an amended return, may be able to file Form 1040-X electronically. If a taxpayer did not file their 2021 return electronically, they'll need to submit a paper version of the Form 1040-X and should follow the instructions for preparing and mailing the paper form. More information Recovery Rebate Credit 2021 Recovery Rebate Credit Frequently Asked Questions

https://www.irs.gov/newsroom/get-an-automatic-six-more-months-to-file-all-taxpayers-can-use-irs-free-file-to-request-an-extension

IR-2022-71, March 29, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers that if they're unable to file their tax return by this year's April 18 deadline, there's an easy, online option to get more time to complete their return. Taxpayers who need more time to complete their return can request an automatic six-month extension to file. An extension allows for extra time to gather, prepare and file paperwork with the IRS; however, taxpayers should be aware that: An extension to file their return doesn't grant them an extension to pay their taxes, They should estimate and pay any owed taxes by their regular deadline to help avoid possible penalties and They must file their extension no later than the regular due date of their return. E-file an extension form for free Individual tax filers, regardless of income, can use IRS Free File to electronically request an automatic tax-filing extension. The fastest and easiest way to get an extension is through IRS Free File on IRS.gov. Taxpayers can electronically request an extension on Form 4868PDF. Filing this form gives taxpayers until October 17 to file their tax return. To get the extension, taxpayers must estimate their tax liability on this form and should timely pay any amount due. Get an extension when making a payment Other fast, free and easy ways to get an extension include using IRS Direct Pay, the Electronic Federal Tax Payment System or by paying with a credit or debit card or digital wallet. There's no need to file a separate Form 4868 extension request when making an electronic payment and indicating it's for an extension. The IRS will automatically count it as an extension. Important reminders on extensions The IRS reminds taxpayers that a request for an extension provides extra time to file a tax return, but not extra time to pay any taxes owed. Payments are still due by the original deadline. Taxpayers should file even if they can't pay the full amount. By filing either a return on time or requesting an extension by the April 18 filing deadline, they'll avoid the late-filing penalty, which can be 10 times as costly as the penalty for not paying. Taxpayers who pay as much as they can by the due date, reduce the overall amount subject to penalty and interest charges. The interest rate is currently four percent per year, compounded daily. The late-filing penalty is generally five percent per month and the late-payment penalty is normally 0.5 percent per month. The IRS will work with taxpayers who cannot pay the full amount of tax they owe. Other options to pay, such as getting a loan or paying by credit card, may help resolve a tax debt. Most people can set up a payment plan on IRS.gov to pay off their balance over time. Other automatic extensions Certain eligible taxpayers get more time to file without having to ask for extensions. These include: U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico get an automatic 2-month extension to file their tax returns. They have until June 15 to file. However, tax payments are still due April 18 or interest will be charged. Members of the military on duty outside the United States and Puerto Rico also receive an automatic two-month extension to file. Those serving in combat zones have up to 180 days after they leave the combat zone to file returns and pay any taxes due. Details are available in Publication 3, Armed Forces' Tax GuidePDF. When the President makes a disaster area declaration, the IRS can postpone certain taxpayer deadlines for residents and businesses in the affected area. People can find information on the most recent tax relief for disaster situations on the IRS website. The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states.

https://www.irs.gov/newsroom/for-the-first-time-maximum-educator-expense-deduction-rises-to-300-in-2022-limit-250-for-those-filing-2021-tax-returns

IR-2022-70, March 29, 2022 WASHINGTON — The Internal Revenue Service today reminded teachers and other educators planning ahead for 2022 that they'll be able to deduct up to $300 of out-of-pocket classroom expenses when they file their federal income tax return next year. This is the first time the annual limit has increased since the special educator expense deduction was enacted in 2002. For tax-years 2002 through 2021, the limit was $250 per year. This means for people currently filing their 2021 tax returns due in April, the deduction is limited to $250. The limit will rise in $50 increments in future years based on inflation adjustments. For 2022, an eligible educator can deduct up to $300 of qualifying expenses. If they are married and file a joint return with another eligible educator, the limit rises to $600. But in this situation, not more than $300 for each spouse. Who qualifies? Educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide in a school for at least 900 hours during the school year. Both public- and private-school educators qualify. What's deductible? Educators can deduct the unreimbursed cost of: Books, supplies and other materials used in the classroom. Equipment, including computer equipment, software and services. COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers and other items recommended by the Centers for Disease Control and Prevention (CDC). Professional development courses related to the curriculum they teach or the students they teach. For these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. For details, see Publication 970, Tax Benefits for Education, particularly Chapter 3. Qualified expenses don't include expenses for home schooling or for nonathletic supplies for courses in health or physical education. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, cancelled checks and other documentation. Reminder for 2021 tax returns being filed now: Deduction limit is $250 With the tax deadline just around the corner, the IRS reminds any educator still working on their 2021 return that they can claim any qualifying expenses on Schedule 1, Line 11. For 2021, the deduction limit is $250. If they are married and file a joint return with another eligible educator, the limit rises to $500. But in this situation, not more than $250 for each spouse. Whether a return is self-prepared or prepared with the assistance of a tax professional or trained community volunteer, the IRS urges everyone to file electronically and choose direct deposit for any refund. For details, visit IRS.gov/efile. In addition, the IRS urges anyone with tax due to choose the speed and convenience of paying electronically, such as with IRS Direct Pay, a free service available only on IRS.gov. For information about this and other payment options, visit IRS.gov/payments. This year, the tax-filing deadline is: Monday, April 18 for most taxpayers. Tuesday, April 19 for residents of Maine and Massachusetts. Wednesday, June 15 for most Americans who live abroad.

https://www.irs.gov/newsroom/irs-reminder-to-many-retirees-april-1-is-last-day-to-start-taking-money-out-of-iras-and-401ks

IR-2022-69, March 25, 2022 WASHINGTON — The Internal Revenue Service today reminded retirees who turned 72 during the last half of 2021 that, in most cases, Friday, April 1, 2022, is the last day to begin receiving payments from Individual Retirement Arrangements (IRAs), 401(k)s and similar workplace retirement plans. The payments, called required minimum distributions (RMDs), are normally made by the end of the year. But anyone who reached age 72 after June 30, 2021, is covered by a special rule that allows IRA account owners and participants in workplace retirement plans to wait until as late as April 1, 2022, to take their first RMD. In other words, in general, the special April 1 rule applies to IRA owners and other participants in these plans who were born after June 30, 1949. Two payments in the same year The April 1 RMD deadline only applies to the required distribution for the first year. For all later years, the RMD must be made by December 31. This means that taxpayers who turned 72 after June 30, 2021, and receive their first required distribution (for 2021) in 2022 on or before April 1, must receive their second RMD (for 2022) by December 31, 2022. Even though the first distribution is actually the required 2021 distribution, it's taxable in 2022 and reported on the 2022 tax return - along with the regular 2022 distribution. Types of retirement plans requiring RMDs These required distribution rules apply to owners of traditional, SEP and SIMPLE IRAs while the original owner is alive. They also apply to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans. RMDs don't apply to Roth IRAs. An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it. Often, the trustee shows the RMD amount on Form 5498 in Box 12b. For a 2021 RMD, required by April 1, 2022, the RMD amount is shown on the 2020 Form 5498, normally issued to the owner during the first part of 2021. Some can delay RMDs Though the April 1 deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans, some people with workplace plans can wait longer to receive their RMD. Most participants who are still working for that employer can wait until April 1 of the year after they retire to start receiving these distributions, if their workplace plan allows. This RMD exception does not apply to 5% owners of the business sponsoring the retirement plan or to participants in SEP and SIMPLE IRA plans. See Tax on Excess Accumulation in Publication 575 for details. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals. IRS online tools and publications can help Many answers to questions about RMDs can be found at RMD FAQs on IRS.gov. Most taxpayers use Table III (Uniform Lifetime) to figure their RMD. Married taxpayers whose spouse is more than 10 years younger and is their only beneficiary use Table II. Because this and other life expectancy tables were updated for 2022, recipients need to use a different version of this table to figure their 2021 RMD, compared to their 2022 RMD. The required withdrawals in 2022 and future years will generally be smaller. For a 2021 RMD (due April 1, 2022), use the life expectancy tables in Appendix B of the Publication 590-BPDF used for preparing 2020 returns. As shown in Table III, the RMD for a person age 72 in 2021 will normally be based on a distribution period of 25.6 years. Divide the December 31, 2020, balance by 25.6 to get the RMD for 2021. For a 2022 RMD (due December 31, 2022), use the revised life expectancy tables in Appendix B of the Publication 590-BPDF used for preparing 2021 returns. As shown in the revised Table III, the RMD for a person age 72 in 2022 will normally be based on a distribution period of 27.4 years. Divide the December 31, 2021, balance by 27.4 to get the RMD for 2022. Pub. 590-B has worksheets, examples and other information that can help anyone figure their RMD. Visit IRS.gov for more information.

https://www.irs.gov/newsroom/irs-finalizes-frequently-asked-questions-for-payment-by-indian-tribal-governments-and-alaska-native-corporations-to-individuals

IR-2022-68, March 25, 2022 WASHINGTON — The Internal Revenue Service today issued final frequently asked questions (FAQs) for Payments by Indian Tribal Governments and Alaska Native Corporations to Individuals under COVID-Relief Legislation (FS-2022-23). These reflect updates to the Draft FAQs, released in May 2021, based on input from tribal government and Alaska Native Corporations leaders. For purposes of these FAQs, references to tribal members include other eligible recipients of COVID relief payments, such as a tribal member's dependents. In addition, the answers in FAQs 1-14 relating to the tax treatment and information reporting of payments made from Tribes to tribal members should be considered to apply equally to payments made from ANCs to their shareholders and other eligible recipients, such as an ANC shareholder's dependents. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provided a number of emergency relief programs that benefit Indian Tribal Governments (Tribes) and tribal members. The Consolidated Appropriations Act, 2021 (CAA), enacted on December 27, 2020, extended certain COVID-related tax provisions, and provides for appropriations for COVID-19 emergency response and relief for the fiscal year ending September 30, 2021, including additional funds for Tribes. The American Rescue Plan Act of 2021 (ARP), enacted on March 11, 2021, also extended previous programs, and added new relief provisions that benefit Tribes and tribal members. These programs allow Tribes to provide emergency relief payments to tribal members and their families for necessary expenses resulting from the COVID-19 pandemic. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-provides-revised-frequently-asked-questions-on-third-round-economic-impact-payment

IR-2022-67, March 25, 2022 WASHINGTON – The Internal Revenue Service today updated its frequently asked questions (FAQs) on the third-round Economic Impact Payment (FS-2022-22)PDF. These FAQs revisions (as noted by date at the end of each revised question) are as follows: Third-round Economic Impact Payment — Topic A: General Information Third-round Economic Impact Payment — Topic B: Eligibility and Calculation of the Third Payment Third-round Economic Impact Payment — Topic C: Plus-Up Payments Third-round Economic Impact Payment — Topic D: EIP Cards Third-round Economic Impact Payment — Topic E: Requesting My Payment Third-round Economic Impact Payment — Topic F: Social Security, Railroad Retirement and Department of Veterans Affairs benefit recipients Third-round Economic Impact Payment — Topic G: Receiving My Payment Third-round Economic Impact Payment — Topic H: Reconciling on Your 2021 Tax Return Third-round Economic Impact Payment — Topic J: Payment Issued but Lost, Stolen, Destroyed or Not Received These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. More information on the Recovery Rebate Credit is available on IRS.gov. IRS-FAQ

https://www.irs.gov/newsroom/irs-has-1-point-5-billion-in-refunds-for-people-who-have-not-filed-a-2018-federal-income-tax-return-april-deadline-approaches

IR-2022-66, March 25, 2022 WASHINGTON — Unclaimed income tax refunds totaling almost $1.5 billion may be waiting for an estimated 1.5 million taxpayers who did not file a 2018 Form 1040 federal income tax return, but people must act before the April tax deadline, according to the Internal Revenue Service. "The IRS wants to help people who are due refunds but haven't filed their 2018 tax returns yet," said IRS Commissioner Chuck Rettig. "But people need to act quickly. By law, there's only a three-year window to claim these refunds, which closes with this year's April tax deadline. We want to help people get these refunds, but they need to file a 2018 tax return before this critical deadline." The IRS estimates the midpoint for the potential refunds for 2018 to be $813 — that is, half of the refunds are more than $813 and half are less. In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2018 tax returns, the window closes April 18, 2022, for most taxpayers. Taxpayers living in Maine and Massachusetts have until April 19, 2022. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date. The IRS reminds taxpayers seeking a 2018 tax refund that their checks may be held if they have not filed tax returns for 2019 and 2020. In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans. By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2018. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2018, the credit was worth as much as $6,431. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2018 were: $49,194 ($54,884 if married filing jointly) for those with three or more qualifying children; $45,802 ($51,492 if married filing jointly) for people with two qualifying children; $40,320 ($46,010 if married filing jointly) for those with one qualifying child; and $15,270 ($20,950 if married filing jointly) for people without qualifying children. Tax year 2018 returns must be filed with the IRS center listed on the last page of the current Form 1040 instructionsPDF. Current and prior year tax forms (such as the tax year 2018 Form 1040, 1040-A and 1040-EZ) and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free 800-TAX-FORM (800-829-3676). However, taxpayers can e-file tax year 2019 and later returns. Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2018, 2019 or 2020 should request copies from their employer, bank or other payer. Taxpayers who are unable to get missing forms from their employer or other payer can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. Alternatively, they can file Form 4506-T to request a wage and income transcript. A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1098, 1099, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. State-by-state estimates of individuals who may be due 2018 income tax refunds State or District Estimated Number of Individuals Median Potential Refund Total Potential Refunds * Alabama 24,474 $796 $23,028,940 Alaska 5,515 $969 $6,185,637 Arizona 38,182 $718 $33,577,964 Arkansas 13,727 $762 $12,567,925 California 148,938 $776 $139,660,163 Colorado 30,836 $787 $28,979,238 Connecticut 15,020 $864 $15,243,386 Delaware 5,764 $793 $5,486,810 District of Columbia 4,011 $802 $3,967,443 Florida 98,979 $818 $94,578,672 Georgia 51,034 $735 $46,467,229 Hawaii 8,199 $873 $8,317,290 Idaho 7,026 $686 $5,982,194 Illinois 55,767 $840 $54,850,831 Indiana 34,770 $839 $33,534,332 Iowa 14,843 $840 $14,255,896 Kansas 14,813 $822 $14,125,094 Kentucky 20,030 $836 $19,137,456 Louisiana 24,292 $793 $23,609,986 Maine 5,851 $772 $5,241,197 Maryland 30,224 $814 $29,637,361 Massachusetts 32,234 $908 $33,569,901 Michigan 49,252 $812 $47,228,525 Minnesota 22,685 $771 $20,920,613 Mississippi 13,007 $730 $11,753,943 Missouri 33,858 $783 $31,284,396 Montana 4,914 $758 $4,560,800 Nebraska 7,647 $809 $7,204,243 Nevada 17,919 $792 $16,896,077 New Hampshire 6,755 $920 $7,022,858 New Jersey 39,046 $872 $39,628,243 New Mexico 9,893 $804 $9,613,090 New York 77,315 $896 $79,825,137 North Carolina 50,069 $776 $45,990,818 North Dakota 4,011 $893 $4,139,793 Ohio 56,285 $793 $51,974,509 Oklahoma 21,529 $824 $21,075,857 Oregon 23,552 $715 $20,729,323 Pennsylvania 59,459 $865 $58,993,909 Rhode Island 4,011 $893 $4,099,614 South Carolina 18,063 $720 $16,288,951 South Dakota 3,872 $858 $3,718,677 Tennessee 30,693 $788 $28,459,178 Texas 145,616 $856 $147,059,248 Utah 11,644 $757 $10,648,614 Vermont 3,089 $832 $2,905,786 Virginia 41,663 $776 $39,285,545 Washington 42,272 $863 $43,022,251 West Virginia 6,968 $880 $7,146,354 Wisconsin 21,753 $755 $19,535,856 Wyoming 3,258 $912 $3,486,358 Totals 1,514,627 $813 $1,456,503,511 * Excluding credits.

https://www.irs.gov/newsroom/reasons-why-some-tax-refunds-filed-electronically-take-longer-than-21-days

IR-2022-65, March 23, 2022 WASHINGTON — Even though the Internal Revenue Service issues most refunds in less than 21 days for taxpayers who filed electronically and chose direct deposit, some refunds may take longer. Many different factors can affect the timing of a refund after the IRS receives a return. A manual review may be necessary when a return has errors, is incomplete or is affected by identity theft or fraud. Other returns can also take longer to process, including when a return needs a correction to the  Child Tax Credit  or Recovery Rebate Credit amount, includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit, or includes a Form 8379, Injured Spouse AllocationPDF, which could take up to 14 weeks to process. The fastest way to get a tax refund is by filing electronically and choosing direct deposit. Taxpayers who don't have a bank account can find out more on how to open an account at an FDIC-insured bank or the National Credit Union Locator Tool. The IRS 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 may take longer. Also, remember to take into consideration the time it takes for a financial institution to post the refund to an account or to receive it by mail. To check the status of a refund, taxpayers should use the Where's My Refund? tool on IRS.gov. Information for the most current tax year filed is generally available within 24 hours after the IRS acknowledges receipt of a taxpayer's e-filed return. If they filed a paper return, taxpayers should allow four weeks before checking the status. The IRS will contact taxpayers by mail when more information is needed to process a return. IRS phone and walk-in representatives can only research the status of a refund if it has been: 21 days or more since it was filed electronically (or since the IRS filing season start date – whichever is later), Six weeks or more since a return was mailed, or when Where's My Refund? tells the taxpayer to contact the IRS. Before filing a return, taxpayers should make IRS.gov their first stop to find online tools to help get the information they need to file. The tools are easy-to-use and available anytime. Millions of people use them to help file and pay taxes, find information about their accounts, get answers to tax questions and get tips on filing a return. 2020 tax returns Waiting on a 2020 tax return to be processed? People whose tax returns from 2020 have not yet been processed should still file their 2021 tax returns by the April due date or request an extension to file. Those filing electronically in this group need their Adjusted Gross Income, or AGI, from their most recent tax return. For those waiting on their 2020 tax return to be processed, make sure to enter $0 (zero dollars) for last year's AGI on the 2021 tax return. Visit Validating Your Electronically Filed Tax Return for more details. Also, when self-preparing a tax return and filing electronically, taxpayers must sign and validate the electronic tax return by entering their prior-year Adjusted Gross Income (AGI) or prior-year Self-Select PIN (SSP). Those who electronically filed last year may have created a five digit Self-Select PIN to use as their electronic signature. Generally, tax software automatically enters the information for returning customers. Taxpayers who are using a software product for the first time may have to enter this information. Taxpayers should review the special instructions to validate an electronically filed 2021 tax return if their 2020 return has not been processed or they used the Non-Filers tool in 2021 to register for an advance Child Tax Credit payment or third Economic Impact Payment in 2021.

https://www.irs.gov/newsroom/irs-revises-frequently-asked-questions-on-2020-unemployment-compensation-exclusion

IR-2022-64, March 23, 2022 WASHINGTON — The Internal Revenue Service today revised its frequently asked questions (FAQs) on 2020 unemployment compensation exclusion. This Fact Sheet (FS-2022-21PDF) updates the 2020 unemployment compensation exclusion frequently-asked-questions (FAQs). These updates are: Question 6, Topic A: Eligibility (NEW) Questions 1, 2, 4, Topic D: Amended Return (Form 1040-X) Question 2, Topic E: Impact to Income, Credits, and Deductions Question 1, 8, 9, Topic G: Receiving a Refund, Letter, or Notice Question 1, Topic I: Post Unemployment Compensation Exclusion Adjustment Question 1, Topic J: Economic Impact Payment These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/tax-time-guide-electronic-tax-payment-and-agreement-options-available-to-taxpayers-who-owe

IR-2022-63, March 22, 2022 WASHINGTON ― The Internal Revenue Service today reminded taxpayers who have a tax bill that there are several ways to make payments, and there are options for many people who can't pay their tax bill in full by April tax deadline. The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states. Some taxpayers who were victims of a natural disaster have even longer to file their returns. The IRS reminds people to timely file their tax return and pay whatever they can by the filing deadline to avoid late filing and interest penalties. Sign in to pay and see payment history Taxpayers can use their  Online Account  to securely see important information when preparing to file their tax return or following up on balances or notices. Taxpayers can make a same-day payment for a 2021 tax return balance, an extension to file, or estimated taxes, which are all due by April deadline for most taxpayers. They can also view: Their Adjusted Gross Income, Economic Impact Payment amounts and advance Child Tax Credit payment amounts needed for their 2021 return, Payment history and any scheduled or pending payments, Payment plan details and Digital copies of select notices from the IRS. Ways to pay Electronic Funds Withdrawal (EFW): This option allows taxpayers to file and pay electronically from their bank account when using tax preparation software or a tax professional. This option is free and only available when electronically filing a tax return.   Direct Pay: Direct Pay is free and allows taxpayers to securely pay their federal taxes directly from their checking or savings account without any fees or preregistration. Taxpayers can schedule payments up to 365 days in advance. After submitting a payment through Direct Pay, taxpayers will receive immediate confirmation.   Electronic Federal Tax Payment System: This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can call 800-555-4477, or visit eftps.gov.   Credit card, debit card or digital wallet: Individuals can pay online, by phone or with a mobile device through any of the authorized payment processors. The processor charges a fee. The IRS doesn't receive any fees for these payments. Authorized card processors and phone numbers are available at IRS.gov/payments.   Cash: For taxpayers who prefer to pay in cash, the IRS offers a way to pay taxes at one of its Cash Processing Companies at participating retail stores. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, are at IRS.gov/paywithcash.   Check or Money Order: Payments made by check or money order should be made payable to the "United States Treasury." To help ensure that the payment gets credited promptly, taxpayers should also enclose a Form 1040-VPDF payment voucher and print on the front of the check or money order: "2021 Form 1040"; name; address; daytime phone number; and Social Security number. File by April 18, 2022 for most taxpayers The most important thing everyone with a tax bill should do is file a return by the April 18 due date, for most taxpayers (even if they can't pay in full). Taxpayers may also request a six-month extension to file by October 17, 2022, to avoid penalties and interest for failing to file on time. Though automatic tax-filing extensions are available to anyone who wants one, these extensions don't change the payment deadline. It is not an extension to pay. Visit IRS.gov/extensions for details. Usually anyone who owes tax and waits until after that date to file will be charged a late-filing penalty of 5% per month. So, if a tax return is complete, filing it by April 18 is always less costly, even if the full amount due can't be paid on time. IRS Free File is an easy, quick way to file that is available to eligible individuals and families who earned $73,000 or less in 2021. IRS Free File is available on IRS.gov. Pay what you can Interest, plus the late-payment penalty, will apply to any payments made after April 18. Making a payment, even a partial payment, will help limit penalty and interest charges. The fastest and easiest way to pay a personal tax bill is with Direct Pay, available only on IRS.gov. For a rundown of other payment options, visit IRS.gov/payments. The IRS urges taxpayers to first consider other options for payment, including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge under federal law. Normally, the late-payment penalty is one-half-of-one percent (0.5%) per month. The interest rate, adjusted quarterly, is currently 3% per year, compounded daily. If a loan isn't possible, the IRS can often help. Online payment plans Most individual taxpayers qualify to set up an online payment plan with the IRS, and it only takes a few minutes to apply. Applicants are notified immediately if their request is approved. No need to call or write to the IRS. The IRS notes that online payment plans are processed more quickly than requests submitted with electronically-filed tax returns. If a taxpayer just filed their return and knows that they'll owe a balance, they may be able to set up a payment plan online before they even receive a notice or bill. There are two main types of online payment plans: Short-term payment plan – The payment period is 180 days or less and the total amount owed is less than $100,000 in combined tax, penalties and interest. There's no fee for setting one up, though interest and the late-payment penalty continue to accrue.   Long-term payment plan – Payments are made monthly, and the amount owed must be less than $50,000 in combined tax, penalties and interest. If the IRS approves a long-term payment plan, also known as an installment agreement, a setup fee normally applies. But low-income taxpayers may qualify to have the fee waived or reimbursed. In addition, for anyone who filed their return on time, the late-payment penalty rate is cut in half while an installment agreement is in effect. This means that the penalty accrues at the rate of one-quarter-of-one percent (0.25%) per month, instead of the usual one-half-of-one percent (0.5%) per month. Taxpayers who do not qualify for an online payment agreement may still be able to arrange to pay in installments. See Additional Information on Payment Plans for more information. Other payment options Some struggling taxpayers may also consider using these other payment options: Delayed collection If the IRS determines a taxpayer is unable to pay, it may delay collection until their financial condition improves. However, the total amount owed will still increase because penalties and interest are charged until paid in full. Taxpayers can request a delay by calling the phone number on their notice or 800-829-1040. Penalty relief Some taxpayers qualify to have their late-filing or late-payment penalties reduced or eliminated. This can be done on a case-by-case basis, based on reasonable cause. Alternatively, where a taxpayer has a history of compliance, the IRS can typically provide relief under the First Time Abatement program. Visit IRS.gov/penaltyrelief for details. Offer in Compromise Some taxpayers qualify to settle their tax bill for less than the full amount due, through an offer in compromise. Though there is typically a $205 non-refundable application fee, it is generally waived for low-income taxpayers and for offers based on doubt as to liability. The Offer in Compromise Pre-Qualifier tool can help determine eligibility for anyone interested in applying. The IRS reminds taxpayers that they have rights and protections throughout the collection process. For details, see Taxpayer Bill of Rights and Publication 1, Your Rights as a TaxpayerPDF. For more information about payments, see Topic No. 202, Tax Payment Options, on IRS.gov. Taxpayers should know before they owe. The IRS encourages all taxpayers to check their withholding with the IRS Tax Withholding Estimator. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

https://www.irs.gov/newsroom/easy-steps-to-avoid-tax-return-errors-that-can-delay-processing-or-adjust-refunds

IR-2022-62, March 22, 2022 WASHINGTON — The Internal Revenue Service today reminded taxpayers how to avoid common errors on their tax returns. This filing season, the IRS is seeing signs of a number of common errors, including some taxpayers claiming incorrect amounts of the Recovery Rebate Credit and Child Tax Credit. To avoid errors on these common credits, there are some key steps people should remember. Taxpayers should refer to Letter 6419 for advance Child Tax Credit payments and Letter 6475 for third Economic Impact Payment amounts they received– or their Online Account – to prepare a correct tax return. Claiming incorrect tax credit amounts can not only delay IRS processing, but can also lead to adjusted refund amounts. Here are other easy ways to avoid common mistakes being seen so far this tax season. File electronically. Taxpayers can use their computer, smartphone or tablet to file their taxes electronically, whether through IRS Free File or other e-file service providers, to help reduce mistakes. Tax software guides people through each section of their tax return using a question-and-answer format. Enter information carefully. This includes any information needed to calculate credits and deductions. Using tax software should help prevent math errors, but taxpayers should always review their tax return for accuracy. Use the correct filing status. Tax software, including IRS Free File, also helps prevent mistakes when selecting a tax return filing status. If taxpayers are unsure about their filing status, the Interactive Tax Assistant on IRS.gov can help them choose the correct status, especially if more than one filing status applies. Answer the virtual currency question. The 2021 Forms 1040 and 1040-SR ask whether at any time during 2021, a person received, sold, exchanged or otherwise disposed of any financial interest in any virtual currency. Taxpayers should not leave this field blank but should check either "Yes" or "No." Report all taxable income. Underreporting income may lead to penalties and interest. Organized tax records help avoid errors that lead to processing delays and may also help to find overlooked deductions or credits. Taxpayers should have all their income documents on hand before starting their tax return. Examples are Forms W-2, 1099-MISC or 1099-NEC. Include unemployment compensation. The IRS is seeing situations where people are not including unemployment compensation they received in 2021 on their tax returns. Although a special law allowed taxpayers to exclude unemployment compensation from taxes in 2020, it was only for that year. Unemployment compensation received in 2021 is generally taxable, so taxpayers should include it as income on their tax return. Double-check name, birth date and Social Security number entries. Taxpayers must correctly list the name, Social Security number (SSN) and date of birth for each person they claim as a dependent on their individual income tax return. Enter each SSN and individual's name on a tax return exactly as printed on the Social Security card. If a dependent or spouse does not have and is not eligible to get a SSN, list the Individual Tax Identification Number (ITIN) instead of a SSN. Double check routing and account numbers. Requesting direct deposit of a federal refund into one, two or even three accounts is convenient and allows the taxpayer access to their money faster. Make sure the financial institution routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account. Taxpayers can also use their refund to purchase U.S. Savings Bonds. Mail paper returns to the right address. Paper filers should confirm the correct address for where to file on IRS.gov or on form instructions to avoid processing delays. Note that processing paper tax returns could take much longer than usual. Taxpayers and tax professionals are encouraged to file electronically if possible. Sign and date the return. If filing a joint return, both spouses must sign and date the return. E-filers can sign using a self-selected personal identification number (PIN). Taxpayers should review the special instructions to validate their 2021 electronic tax return if their 2020 return has not yet been processed. Keep a copy. When ready to file, taxpayers should make a copy of their signed return and all schedules for their records. Request an extension, if needed. Taxpayers who cannot meet the April 18 deadline can easily request a six-month filing extension to October 17 and prevent late filing penalties. Use Free File or Form 4868. But keep in mind that, while an extension grants additional time to file, tax payments are still due April 18 for most taxpayers.

https://www.irs.gov/newsroom/irs-reminds-taxpayers-they-must-check-a-box-on-form-1040-1040-sr-or-1040-nr-on-virtual-currency-transactions-for-2021

IR-2022-61, March 18, 2022 WASHINGTON — The IRS reminds taxpayers that there is a virtual currency question at the top of Form 1040, Form 1040-SR and Form 1040-NR. It asks: "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?" All taxpayers filing Form 1040, Form 1040-SR or Form 1040-NR must check one box answering either "Yes" or "No" to the virtual currency question. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency in 2021. When taxpayers can check "No" Taxpayers who merely owned virtual currency at any time in 2021 can check the "No" box when they have not engaged in any transactions involving virtual currency during the year, or their activities were limited to: Holding virtual currency in their own wallet or account. Transferring virtual currency between their own wallets or accounts. Purchasing virtual currency using real currency, including purchases using real currency electronic platforms such as PayPal and Venmo. Engaging in a combination of holding, transferring, or purchasing virtual currency as described above. When taxpayers must check "Yes" The list below covers the most common transactions in virtual currency that require checking the "Yes" box: The receipt of virtual currency as payment for goods or services provided; The receipt or transfer of virtual currency for free (without providing any consideration) that does not qualify as a bona fide gift; The receipt of new virtual currency as a result of mining and staking activities; The receipt of virtual currency as a result of a hard fork; An exchange of virtual currency for property, goods, or services; An exchange/trade of virtual currency for another virtual currency; A sale of virtual currency; and Any other disposition of a financial interest in virtual currency. If a taxpayer disposed of any virtual currency that was held as a capital asset through a sale, exchange or transfer, they must check "Yes" and use Form 8949 to figure their capital gain or loss and report it on Schedule D (Form 1040). If a taxpayer received any virtual currency as compensation for services or disposed of any virtual currency that they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type (for example, W-2 wages on Form 1040, 1040-SR, or 1040-NR, line 1, or inventory or services from Schedule C on Schedule 1). For more information, see page 17 of the 2021 Form 1040 InstructionsPDF and visit Virtual Currencies for general information on virtual currency and other related resources.

https://www.irs.gov/newsroom/tax-time-guide-minimize-cyber-footprints-protect-personal-information-online

IR-2022-60, March 16, 2022 WASHINGTON — The Internal Revenue Service today urged people to stay resolute against ongoing scams and schemes by properly securing computers, tablets and phones. Solid cybersecurity protection and scam recognition is vital to reduce the threat of identity theft inside and outside the tax system. The IRS works closely with the Security Summit, a partnership with state tax agencies and the private-sector tax industry, to help protect taxpayer information and defend against identity theft. Taxpayers and tax professionals can take steps to help in this effort by doing things like minimizing cybersecurity footprints and recognizing common scams and schemes. Below are 10 tips to help minimize exposure to fraud and identity theft: Safeguard personal data. Provide a Social Security number, for example, only when necessary. Only offer personal information or conduct financial transactions on sites that have been verified as reputable, encrypted websites.   Protect personal information. Treat personal information like cash – don't hand it out to just anyone. Social Security numbers, credit card numbers, bank and even utility account numbers can be used to help steal a person's money or open new accounts.   Use strong passwords. Use a password phrase or series of words that will be easy for you to remember. Use at least 10 characters; 12 is ideal for most home users. Mix letters, numbers and special characters. Try to be unpredictable – don't use names, birthdates or common words. Don't use the same password for many accounts and avoid sharing them. Keep passwords in a secure place or use password management tools.   Set password and encryption protections for wireless networks. If a home or business Wi-Fi is unsecured, it allows any computer within range to access the wireless network and potentially steal information from connected devices. Whenever it is an option for a password-protected account, users should also opt for a multi-factor authentication process. Multi-factor authentication is critical to protecting your password.   Avoid phishing scams. The easiest way for criminals to steal sensitive data is simply to ask for it. IRS urges people to learn to recognize phishing emails, calls or texts that pose as familiar organizations such as banks, credit card companies or even the IRS. Keep sensitive data safe and: Be aware that an unsolicited email with a request to download an attachment or click on a URL could appear to come from someone that you know like a friend, work colleague or tax professional if their email has been spoofed or compromised. Don't assume internet advertisements, pop-up ads or emails are from reputable companies. If an ad or offer looks too good to be true, take a moment to check out the company behind it. Never download "security" software from a pop-up ad. A pervasive ploy is a pop-up ad that indicates it has detected a virus on the computer. The download most likely will install some type of malware. Reputable security software companies do not advertise in this manner.   Use security software. An anti-virus program should provide protection from viruses, Trojans, spyware and adware. The IRS urges everyone to use an anti-virus program and always keep it up to date. Set security software to update automatically so it can be updated as threats emerge.   Educate those less experienced about online safety. Children and those with less online experience may not be fully aware of the perils of opening suspicious web pages, emails or documents. Teens and younger users can put themselves at risk by leaving a trail of personal information for con artists to follow.   Back up files. No system is completely secure. Copy important files, including federal and state tax returns, onto removable discs or back-up drives and cloud storage. Store discs, drives and any paper copies in secure, locked locations.   Know the risk of public Wi-Fi. Connection to public Wi-Fi is convenient and often free, but it may not be safe. Hackers and cybercriminals can easily steal personal information from these networks. Always use a virtual private network when connecting to public Wi-Fi.   Review ID Theft Central. Designed to improve online access to information on identity theft, it serves taxpayers, tax professionals and businesses. The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Generally, the IRS first mails a paper bill to a person who owes taxes. In some special situations, the IRS will call or come to a home or business. People should be alert to scammers posing as the IRS to steal personal information. There are ways to know if it's really the IRS calling or knocking on someone's door. Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov. They can use these resources to get help when it's needed at home, at work or on the go. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

https://www.irs.gov/newsroom/irs-information-technology-looking-for-over-200-technologists-to-focus-on-modernization-job-openings-posted-with-more-to-come

IR-2022-59, March 16, 2022 WASHINGTON — As part of a larger hiring effort underway, the Internal Revenue Service announced today plans to hire more than 200 additional technologists to help the agency further modernize its technology. "This is an excellent opportunity to join the IRS Information Technology team and make a real difference for our tax system and the nation's taxpayers," said Chief Information Officer Nancy Sieger. "This is a great opportunity for people looking to further their technology careers. We have experienced teams of programmers, IT specialists and cybersecurity experts looking to further accelerate modernization efforts." The IRS plays a critical role in serving the nation. The agency interacts with more Americans than any other U.S. government agency, and process 96 percent of the funding for our nation's vital programs. Modern technology is key for the IRS to provide a seamless customer experience and address the agency's challenges and opportunities for simplifying the taxpayer's filing experience by streamlining the process, answering as many questions as possible and reducing current inventories. The IRS is offering entry-level positions as well as career opportunities for experienced and supervisory IT specialists in the fields of system development, architecture, engineering, cybersecurity, IT operations, network services and customer support. In addition, the IRS is seeking applicants with knowledge of cloud, zero trust security, low/no-code enterprise platforms, artificial intelligence and machine learning, or NoSQL database among other modern technologies. To learn more about IRS IT modernization and recent accomplishments, visit IRS Modernization. The IRS encourages qualified candidates to apply. The first announcements for these IT positions have already been posted on usajobs.gov with additional opportunities to open in the coming weeks. Interested persons should apply today by visiting irs.usajobs.gov and using the search tool and filtering by job series 2210 – Information Technology Management. As part of this larger IRS hiring effort, the agency announced last week plans to hire more than 5,000 positions in its processing centers located in Austin, Texas; Kansas City, Missouri; and Ogden, Utah. Opportunities to work on major modernization efforts to improve taxpayer service The IRS has undergone a significant technology transformation over the last several years as part of a large-scale enterprise modernization plan to transform the taxpayer experience, upgrade core service and enforcement systems, build a more sustainable technology infrastructure and enhance cybersecurity. The agency is seeking to expand its pool of experts in hybrid and multi-cloud environments, no/low-code enterprise platforms and applications, data and analytics, artificial intelligence and machine learning, IT service management leading practices and networks management. Additional career opportunities include joining the integrated technical team modernizing the Individual Master File, the agency's core tax processing system, and the Enterprise Case Management initiative modernizing IRS case management applications, services and associated processes. These are just some of the modernization efforts that the new hires will be working on. Numerous benefits to joining the IRS Information Technology (IT) team There are numerous advantages to joining IRS IT, including the opportunity to be part of the historic transformation of a complex technology infrastructure supporting the nation's economic recovery efforts. IRS IT is responsible for technology that impacts millions of Americans. IRS IT employees were instrumental in delivering economic relief to Americans in time of need through Economic Impact Payments and advance payments of the Child Tax Credit and actively contribute to services that benefit Americans. Positions are available around the country. IRS IT is currently in a maximum telework mode and will have a competitive telework policy going forward. The IRS is an equal opportunity employer. All employees must be U.S. citizens, pass an FBI fingerprint check and tax compliance verification, and meet the mandatory education and experience qualification requirements. Interested individuals can apply by creating a profile at irs.usajobs.gov. For more information about the IRS as an employer, and to learn about upcoming recruitment events, and special hiring programs for students, Veterans, and Individuals with Disabilities, visit IRS Careers.

https://www.irs.gov/newsroom/irs-provides-more-forms-letters-and-publications-in-multilingual-and-alternative-formats-spanish-braille-now-available

IR-2022-58, March 15, 2022 WASHINGTON — In an effort to provide American taxpayers with the service they deserve, the Internal Revenue Service announced today the latest expansion of its multilingual products, Braille, text, audio and large print products are now available in Spanish. The agency's Alternative Media Center (AMC) is converting IRS Form 1040, its main schedules and six publications in Spanish Braille and large print. This announcement highlights the agency's commitment to make alternative format documents and multilingual resources available to those who need them. The IRS also has a Languages webpage available in 20 languages to help taxpayers find basic tax information, such as how to check a refund status, pay taxes or file a federal tax return. "It's critical that the IRS provides information to people in multiple languages and formats to help them meet their tax responsibilities and receive important tax credits," said IRS Commissioner Chuck Rettig. "This is another milestone in our ongoing efforts to expand our assistance to more people. I'm extremely proud of our employees' significant efforts and strong desire to make a huge, positive difference in this area during the last several years, which has been assisted by our partners in the nation's tax community. We are proud to continue focusing on this area." Additional IRS multilingual resources IRS Free File offers eight free electronic tax preparation and filing options in English and two in Spanish.   The Let Us Help You page is available in seven languages.   A Spanish language version of Form 1040PDF and the related instructionsPDF are also available.   Form 1040 Schedule LEP, in EnglishPDF and SpanishPDF, with instructionsPDF available in English and 20 other languages, can be filed with a tax return by those taxpayers who prefer to communicate with the IRS in another language.   The Taxpayer Bill of Rights, outlined in Publication 1, Your Rights as a Taxpayer, is available in twenty languages.   Taxpayers can view and download several tax forms and publications, such as Publication 17, Your Federal Income Tax, in Spanish, Chinese Simplified, Chinese Traditional, Korean, Russian and Vietnamese. Alternative media resources for blind, sight-impaired individuals Taxpayers can download forms and instructions from the Accessible Forms and Publications page of IRS.gov or request copies by calling 800-TAX-FORM (800-829-3676). Tax forms and publications are available in a variety of formats including: Text-only, Braille ready files, Browser-friendly HTML, Accessible PDF and Large print. Latest enhancement to IRS accessibility services Taxpayers can complete Form 9000, Alternative Media PreferencePDF, to choose to receive their IRS notice or letter in Braille, large print, audio and electronic formats. Taxpayers can include the completed form with their tax return, mail it as a standalone form to the IRS or call 800-829-1040 to elect their preferred format. Form 9000 is also available in Spanish Braille and large print. Taxpayers who have already received a notice or letter in print format and prefer Braille, large print, audio or text, and do not have an alternative media designation on file at the IRS can choose one of the options below to request their preference. Fax their notice with a cover sheet to the AMC at 855-473-2006. The cover sheet should include their name, address, phone number and the desired format of the document. Mail their notice or letter with a note stating their preferred format to: IRS Alternative Media Center 400 N. 8th St., Room G39 Richmond, VA 23219 Call the IRS Accessibility Helpline at 833-690-0598 to get help with transcribing the information. Visit the Information About the Alternative Media Center page of IRS.gov for details. How to get answers about IRS accessibility services If a taxpayer has questions about IRS accessibility services, they can contact the Accessibility Helpline at 833-690-0598. Help for multilingual taxpayers is also available on the helpline through the over-the-phone interpreter service. This helpline does not have access to taxpayers' IRS accounts. Those needing help with tax law, refunds or other account-related issues, should visit the Let Us Help You page on IRS.gov.

https://www.irs.gov/newsroom/irs-looking-to-hire-collection-contact-representatives-in-mississippi-job-openings-posted-in-special-delta-initiative

IR-2022-57, March 11, 2022 WASHINGTON — As part of a Servicewide effort to help under-served communities, the Internal Revenue Service announced today that it is looking for applicants to staff a new call site in Mississippi starting this spring. The IRS will hire approximately ten Collection Contact Representatives in Clarksdale, Mississippi, to staff an IRS Automated Collection System (ACS) site, where they will answer calls from taxpayers to help them resolve their tax-related issues. "A special focus for the IRS has been to increase services and employment in under-represented communities," said IRS Commissioner Chuck Rettig. "This new effort in Mississippi is designed to help people in the community as well as taxpayers needing help related to collection issues. We are proud to be working closely with federal, state and local officials to launch this new site, and we appreciate their significant assistance raising awareness about this important effort." This special initiative is part of a larger project underway at the IRS to reach under-served communities. Increased IRS participation in the communities the agency serves will provide meaningful career opportunities while increasing service, raising awareness and compliance with tax laws in underrepresented communities. Clarksdale is an initial step in the longer-term IRS effort. Job openings are for Collection Contact Representative positions. These positions deal with a full range of responsibilities in resolving issues and obtaining information relative to the tax administration process. Contact Representatives provide authoritative tax law assistance and take action where needed to resolve a taxpayer's tax issues, often involving delinquent situations. Actions needed might include analyzing the taxpayer's ability to pay, initiating liens and negotiating installment payment agreements. These positions have a beginning salary range of $36,118 to $46,953 with potential for annual increases and promotions. Both English and bilingual Spanish positions are available. Qualified applicants will receive extensive training on IRS procedures to apply the tax laws and regulations with fairness, along with access and use of all necessary automated systems. Specialized or prior federal work experience is not required. "Expanded IRS collection services will provide job opportunities in the Mississippi Delta while increasing the agency's ability to respond to taxpayer phone inquiries," said Darren Guillot, the IRS Small Business/Self-Employed Commissioner for Collection. "This is an important effort, and the IRS hopes this will open the door to other opportunities in other locations in the future. Applications are being accepted through March 23. Interested individuals should apply today or as soon as possible via the following announcement on USAJOBS: Contact Representative (Collection Representative): USAJOBS – Collection Contact Representative Announcement Virtual Information Sessions The IRS Small Business/Self Employed Division will be providing virtual information sessions for individuals who would like more information about the Collection Contact Representative positions and how to apply. During these virtual sessions, Collection Contact Representatives will provide a better understanding of the work they do day-to-day. Human Resource Representatives will also attend the session to discuss the application process and some of the requirements for the positions. Interested individuals can register using the following links: Register – March 14 @ 4 p.m. Eastern Time Register – March 16 @ 3 p.m. Eastern Time (for bilingual Spanish positions) The IRS encourages people to share this job posting with friends, family or neighbors who may be interested and qualified for the positions.

https://www.irs.gov/newsroom/irs-unveils-voice-and-chat-bots-to-assist-taxpayers-with-simple-collection-questions-and-tasks-provides-faster-service-reduced-wait-times

More functions coming later in 2022 to help taxpayers with more complex issues IR-2022-56, March 10, 2022 WASHINGTON — The Internal Revenue Service today announced it has begun using voice and chat bots on two of its specialized toll-free telephone assistance lines and IRS.gov, enabling taxpayers with simple payment or collection notice questions to get what they need quickly and avoid waiting. Taxpayers can still speak with an IRS telephone representative if needed. "Our phone lines continue to see unprecedented demand, and the IRS continues to look for ways to help people and avoid long wait times," said IRS Commissioner Chuck Rettig. "Our telephone representatives remain an important part of the service we provide, but these bots can help some people avoid lengthy phone delays for something that could be resolved on the spot. This is part of a larger effort to help people get the assistance they need this tax season." The IRS in recent weeks has deployed voice and chat bots in English and Spanish for phone lines that assist taxpayers with tax payments issues or understanding an IRS notice they may have received. People with general tax season questions generally will not encounter these features at this time. The bots are now available to help taxpayers with: How to make one-time payments Answers to frequently asked questions Collection notice clarification Voice bots are software powered by artificial intelligence (AI) that allow a caller to navigate an interactive voice response (IVR) system with their voice, generally using natural language. Chat bots simulate human conversation through web-based text interaction, also using AI-powered software to respond to natural language prompts. Taxpayers who request to speak with a customer service representative will be placed in queue for English or Spanish ACS telephone assistance. The IRS voice and chat bots currently provide unauthenticated services, which means they cannot provide assistance with a taxpayer's protected account information. "Voice and chat bots interact with taxpayers in easy-to-follow ways, which means taxpayers don't have to wait on hold to handle simple tasks," said Darren Guillot, Commissioner of Small Business/Self Employed Collection at the IRS. Later in 2022, IRS voice bots will also enable taxpayers to authenticate their identity to establish payment plans, request a transcript and obtain information about their accounts, such as payoff details. The IRS plans to roll out more voice and chat bots later in 2022 to assist taxpayers with more complex issues. IRS toll-free telephone lines receive millions of calls a year. A customer service representative spends on average nearly 20 minutes with each taxpayer they help on a collection issue. Freeing up IRS phone assistors for taxpayers with complex collection issues who need to speak with someone is another major benefit of voice and chat bots. In addition to the payment lines, voice bots helped people calling the Economic Impact Payment (EIP) toll-free line, providing general procedural responses to frequently asked questions. The IRS also added voice bots for the Advance Child Tax Credit toll-free line in February to provide similar assistance to callers who need help reconciling the credits on their 2021 tax return. The IRS also reminds taxpayers about numerous other self-service options that are available.

https://www.irs.gov/newsroom/irs-hiring-more-than-5000-positions-in-austin-kansas-city-ogden

IR-2022-55, March 10, 2022 WASHINGTON — To help serve taxpayers during this challenging tax season, the Internal Revenue Service announced today that it is hiring more than 5,000 positions in its service processing centers located in Austin, Texas; Kansas City, Missouri; and Ogden, Utah. These positions fall under a special hiring condition called direct-hire authority. New hires may expect to begin work within 30-45 days of their job offer. "It's an exciting time to work for the Internal Revenue Service," said IRS Taxpayer Experience Officer and Wage and Investment Commissioner Ken Corbin. "Those who wish to work with customer service as their focus are encouraged to apply. This is gratifying work - as these newly hired individuals will process tax returns and deliver refunds to the nation's taxpayers." Available positions include temporary, term and permanent jobs. Many are entry-level clerk and tax examiner positions in the Wage and Investment Division. No prior tax experience is required. "The IRS has opportunities for almost every profession, starting with these entry level positions. Starting here today can guide you to your future career, like it has done for me starting in high school," said Corbin. The IRS offers competitive pay and benefits, on-the-job training, and opportunities for advancement. The pay range for these positions is from GS-02 to GS-09. Virtual hiring events The agency is hosting virtual direct hiring events on March 16, 23 and 30, where the IRS will review resumes and extend job offers to eligible applicants on the spot. In-person events These events are open to the public. Interested job seekers are encouraged to bring their resumé and two forms of identification (i.e., state driver's license and/or state Identification card, birth certificate, U.S. Passport, Military ID card or Social Security card). Qualified applicants may receive job offers at the in-person events.   Location Date and time Kansas City IRS Campus 333 W. Pershing Road Kansas City, MO 64108 March 18 11 a.m. – 7 p.m. (CT) March 19 9 a.m. – 3 p.m. (CT) Austin IRS Campus South Park Office Complex 5015 South IH 35 Austin, TX 78744 March 24 11 a.m. – 7 p.m. (CT) March 25 11 a.m. – 7 p.m. (CT) Workforce Services 1290 E 1450 S Clearfield, UT 84015 March 31 11 a.m. – 6 p.m. (MT)  April 1 11 a.m. – 6 p.m. (MT) Preregistration and social-distancing are required to attend the in-person job fairs. Per Centers for Disease Control and Prevention (CDC) guidelines, wearing a mask is optional for these job fair sites. For complete details on the virtual events and to register to attend one of the in-person events, visit: jobs.irs.gov/events. The IRS is an equal opportunity employer. All employees must be U.S. citizens, pass an FBI fingerprint check and tax compliance verification, and meet the mandatory education, training and experience qualification requirements.

https://www.irs.gov/newsroom/irs-highlights-importance-of-child-and-dependent-care-credit-can-help-families-others

IR-2022-54, March 8, 2022 WASHINGTON — The Internal Revenue Service issued a filing season reminder today that those taxpayers who pay expenses for the care of a qualifying person while working or looking for work may qualify for an important tax credit. The Child and Dependent Care Credit is expanded for tax year 2021. This means that more taxpayers will qualify this year than ever before, and the credit will be worth more. Taxpayers with an adjusted gross income of more than $438,000 are not eligible for this credit. "There are many important tax credits available for families, and we don't want anyone to overlook the Child and Dependent Care Credit," said IRS Commissioner Chuck Rettig. "We encourage families and others who may qualify for this credit to carefully review the criteria to make sure they receive the maximum amount they're entitled to. We also encourage the tax professional communities and others to share this important information." Depending on their income, taxpayers can get a credit worth 50% of their qualifying childcare expenses. For tax year 2021, the maximum eligible expense for this credit is $8,000 for one qualifying person and $16,000 for two or more. For the purposes of this credit, the IRS defines a qualifying person as: A taxpayer's dependent who is 12 or younger (no age limit if incapacitated) when the care is provided.   A taxpayer's spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.   Someone who is physically or mentally unable to take care of themselves and lived with the taxpayer for six months and is either:   the taxpayer's dependent or would have been the taxpayer's dependent except for one of the following:   The qualifying person received gross income of $4,300 or more The qualifying person filed a joint return The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else's return Taxpayers can use the Interactive Tax Assistant or see the Frequently Asked Questions on IRS.gov to determine if they can claim this credit. For IRS partners, there's a special promotional flyer availablePDF. The IRS has been highlighting this credit in a number of ways, including Tax Tips, fact sheets, news releases as well as through Twitter and other IRS social media and outreach channels. It's also featured in a special IRS YouTube video.

https://www.irs.gov/newsroom/irs-revised-2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions

IR-2022-53, March 8, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) (FS-2022-17PDF) on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. These updates are to help eligible families properly claim the credit when they prepare and file their 2021 tax return. These changes reflect that Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). Schedule 8812 (Form 1040) is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021. These FAQs revisions and additions are as follows: 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Q3 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic C: Calculation of the 2021 Child Tax Credit: Q1 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic D: Calculation of Advance Child Tax Credit Payments: Q1 These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/tax-time-guide-saving-for-retirement-ira-contributions-for-2021-can-be-made-until-april-18

IR-2022-52, March 8, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers they may be able to claim a deduction on their 2021 tax return for contributions to their Individual Retirement Arrangement (IRA) made through April 18, 2022. An IRA is a personal savings plan that lets employees and the self-employed set money aside for retirement and can have tax advantages. Contributions for 2021 can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution. Generally, eligible taxpayers can contribute up to $6,000 to an IRA for 2021. For those 50 years of age or older at the end of 2021, the limit is increased to $7,000. Qualified contributions to one or more traditional IRAs may be deductible up to the contribution limit or 100% of the taxpayer's compensation, whichever is less. There is no longer a maximum age for making IRA contributions. Those who make contributions to certain employer retirement plans, such as a 401k or 403(b), an IRA, or an Achieving a Better Life Experience (ABLE) account, may be able to claim the Saver's Credit. Also known as the Retirement Savings Contributions Credit, the amount of the credit is generally based on the amount of contributions, the adjusted gross income and the taxpayer's filing status. The lower the taxpayer's income (or joint income, if applicable), the higher the amount of the tax credit. Dependents and full-time students are not eligible for the credit. For more information on annual contributions to an ABLE account, see Publication 907, Tax Highlights for Persons With Disabilities.PDF While contributions to a Roth IRA are not tax deductible, qualified distributions are tax-free. Roth IRA contributions may be limited based on filing status and income. Contributions can also be made to a traditional and/or Roth IRA even if participating in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA-based plan). Taxpayers can find answers to questions, forms and instructions and easy-to-use tools at IRS.gov. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax (For Individuals)PDF. More resources Retirement Plans FAQs Regarding IRAs Do I Qualify for the Retirement Savings Contributions Credit? Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)

https://www.irs.gov/newsroom/face-to-face-irs-help-available-in-more-than-30-cities-on-saturday-march-12

IR-2022-51, March 4, 2022 WASHINGTON — The Internal Revenue Service today announced that many Taxpayer Assistance Centers (TACs) will offer face-to-face Saturday help without an appointment from 9 a.m. to 4 p.m. on Saturday, March 12. Normally TACs are only open weekdays. "Being open on select Saturdays is offered for people to get the help they need when they need it," said IRS Wage and Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin. "We know that many taxpayers work during the week or have other obligations that make it difficult to get away to take care of their taxes during our routine business hours. We're here to help, and people don't need an appointment during these special Saturday hours." People can also ask about reconciling advance Child Tax Credit payments, receive help resolving a tax problem, a tax bill or an IRS audit. If assistance from IRS employees specializing in these services is not available, the individual will receive a referral for these services. IRS staff will schedule appointments for a later date for Deaf or Hard of Hearing individuals who need sign language interpreter services. Foreign language interpreters will be available. The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. People are required to wear face masks and social distance at these events. Please come prepared The IRS urges individuals to bring the following information: Current government-issued photo identification Social Security cards and/or ITINs for members of their household, including spouse and dependents (if applicable) Any IRS letters or notices received and related documents During the visit, IRS staff may also request the following information: A current mailing address, and Bank account information, to receive payments or refunds by Direct Deposit. No tax return preparation will be available at any IRS TAC. The IRS.gov webpage, Contact Your Local IRS Office, lists all services provided at specific TACs. Free tax preparation help While tax return preparation is not a service offered at IRS TACs during regular hours or during these Saturday hours, the following free resources are available to help most taxpayers prepare and file their 2021 federal tax returns anytime: Any individual or family earning $73,000 or less in 2021 can use tax software from providers who make their online products available through IRS Free File at no cost. There are products in English and Spanish. Free help preparing tax returns is available at a Volunteer Income Tax Assistance Center (VITA) or Tax Counseling for the Elderly location (TCE) sites. The income limit for VITA assistance is $58,000. To find the closest free tax return preparation help, use the VITA Locator Tool or call 800-906-9887. To find a TCE AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669. More information: How to Register for Certain Online Self-Help Tools Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return Recovery Rebate Credit to learn about filing requirements

https://www.irs.gov/newsroom/taxpayer-experience-office-formally-established-to-improve-service-across-the-irs

IR-2022-50, March 4, 2022 WASHINGTON — As part of a longer-term effort to improve taxpayer service, the IRS has officially established the first-ever Taxpayer Experience Office and will soon begin taking additional steps to expand the effort. "As the IRS continues taking immediate steps this filing season including adding more employees to address the significant challenges facing a resource-constrained IRS, it's critical that we work going forward to equip the IRS to be a 21st century resource for Americans," said IRS Commissioner Chuck Rettig. "The formal establishment of this office will help unify and expand efforts across the IRS to improve service to taxpayers." The Taxpayer Experience Office will focus on all aspects of taxpayer transactions with the IRS across the service, compliance and other program areas, working in conjunction with all IRS business units and coordinating closely with the Taxpayer Advocate Service. The office is part of the effort envisioned in the Taxpayer First Act Report to CongressPDF last year. This included input and feedback from taxpayers, tax professionals and the tax community that helped develop the Taxpayer Experience Strategy. The Report to Congress identified over a hundred different programs and tools that would help taxpayers, including a 360-degree view of taxpayer accounts, expanded e-File and payment options, digital signatures, secure two-way messaging and online accounts for businesses and tax professionals. To help drive the IRS strategic direction for improving the taxpayer experience, the Taxpayer Experience Office has identified key activities the IRS is focusing on over the next five years, including those commitments outlined in the President's Executive Order on Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government. "The IRS is committed to customer experiences that meet taxpayers where they are, in the moments that matter most in people's lives and in a way that delivers the service that the public expects and deserves," said Chief Taxpayer Experience Officer Ken Corbin, who also serves as the commissioner of the Wage and Investment division, which oversees the current filing season and other activities. The Taxpayer Experience Office will identify changing taxpayer expectations and industry trends, focus on customer service best practices, and promote a consistent voice and experience across all taxpayer segments by developing agency-wide taxpayer experience guidelines and expectations. The office will be adding staff in the coming months to help support the effort. "Whether checking the status of a tax return, meeting with a revenue agent for an audit, or receiving a tax credit to their bank account, improving service delivery and customer experience are fundamental priorities for us," Corbin said. "We're committed to designing and delivering services that better connect with our diverse taxpayer base." Some of the areas of improvement in the near-term include expanding customer callback, expanded payment options, secure two-way messaging and more services for multilingual customers. These activities build on recent improvements such as digital tools to support Economic Impact Payments and the Advance Child Tax Credit, online chat and online tax professional account.

https://www.irs.gov/newsroom/irs-update-regarding-recent-electronic-filing-challenges-in-connection-with-form-7203-s-corporation-shareholder-stock-and-debt-basis-limitations

Updated on March 15, 2022 — The IRS issued Notice 2022-13, Relief from Addition to Tax for Underpayment of Estimated Income Tax by Individual Farmers and FishermenPDF which waived the addition to tax for qualifying farmers and fishermen who, by April 18, 2022, or, for those taxpayers who reside in Maine or Massachusetts, by April 19, 2022, file their 2021 federal income tax return and pay in full any tax reported as due on the return. IR-2022-49, March 3, 2022 WASHINGTON — The IRS is aware of a third-party software issue affecting qualifying farmers and fishermen attempting to electronically file Forms 7203. Qualifying farmers and fishermen are those who are not subject to an addition to tax for failing to pay the required estimated tax installment payment by January 15, 2022, if they file their returns and pay the full amount of tax reported on the return as payable by March 1, 2022. The IRS has been working closely with software providers to ease the impact on qualifying farmers and fishermen caused by electronic filing challenges in connection with Form 7203. Due to these challenges, the Treasury Department and the IRS intend to issue a notice providing penalty relief for qualifying farmers and fishermen filing Forms 7203 if they electronically file their 2021 tax return and pay in full any tax due by April 18, 2022, or by April 19, 2022, for those qualifying farmers and fishermen who live in Maine or Massachusetts. Farmers and fishermen who filed their returns by the March 1 deadline are unaffected by this news release.

https://www.irs.gov/newsroom/irs-updates-frequently-asked-questions-on-tax-credits-for-paid-leave-under-the-families-first-coronavirus-response-act-for-leave-prior-to-april-1-2021

IR-2022-48, March 3, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) on Tax Credits for Paid Leave Under the Families First Coronavirus Response Act for Leave Prior to April 1, 2021. These FAQs (FS-22-16PDF) revisions add Question 54g and Question 65c. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ  

https://www.irs.gov/newsroom/irs-issues-faqs-for-tax-year-2021-earned-income-tax-credit

IR-2022-46, March 2, 2022 WASHINGTON — The Internal Revenue Service today issued frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit to educate eligible taxpayers on how to properly claim the credit when they prepare and file their 2021 tax return. The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a credit to either reduce the taxes owed or an added payment to increase a tax refund. The amount of the credit may change if the taxpayer has children, dependents, are disabled or meet other criteria. These FAQs detail what the EITC is, how it was expanded for 2021, which taxpayers are eligible, and how to claim it. The 17 new FAQs are: What is the Earned Income Tax Credit? What is earned income? What are the earned income limits for taxpayers without qualifying children? How old must I be to claim the Earned Income Tax Credit if I do not have qualifying children? Do I need to have a Social Security number (SSN) to be eligible to claim the Earned Income Tax Credit? Do my qualifying children need to have SSNs in order for me to claim the Earned Income Tax Credit? What are the age requirements for claiming the Earned Income Tax Credit if I have a qualifying child? What are the earned income limits for individuals with a qualifying child? Will any refund that I receive because I claimed the Earned Income Tax Credit affect my government benefits? What is the maximum amount of the Earned Income Tax Credit for 2021 for eligible taxpayers without qualifying children? Is there a limit on the amount of investment income I can earn and remain eligible for the Earned Income Tax Credit? If I am not filing a joint return with my spouse, can I claim the Earned Income Tax Credit? Who is considered a qualified homeless youth for purposes of the Earned Income Tax Credit? Who is considered a qualified former foster youth for purposes of the Earned Income Tax Credit? Can I elect to use my 2019 earned income to figure my Earned Income Tax Credit for 2021? Can a student claim the Earned Income Tax Credit for 2021? What is a specified student for purposes of the Earned Income Tax Credit? File for free and use direct deposit Taxpayers with income is $73,000 or less can file their federal tax returns electronically for free through the IRS  Free File Program . The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/tax-time-guide-irs-reminds-taxpayers-to-report-gig-economy-income-virtual-currency-transactions-foreign-source-income-and-assets

IR-2022-45, March 1, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers of their reporting and potential tax obligations from working in the gig economy, making virtual currency transactions, earning foreign-source income or holding certain foreign assets. Information available on IRS.gov and instructions on Form 1040 can help taxpayers in understanding and meeting these reporting and tax requirements. Gig economy earnings are taxable Generally, income earned from the gig economy is taxable and must be reported to the IRS. The gig economy is activity where people earn income providing on-demand work, services or goods. Often, it's through a digital platform like an app or website. Taxpayers must report income earned from the gig economy on a tax return, even if the income is: From part-time, temporary or side work, Not reported on an information return form - like a Form 1099-K, 1099-MISC, W-2 or other income statement or Paid in any form, including cash, property, goods or virtual currency. For more information on the gig economy, visit the gig economy tax center. Understand virtual currency reporting and tax requirements The IRS reminds taxpayers that once again there is a question at the top of Form 1040 and Form 1040-SR asking about virtual currency transactions. All taxpayers filing these forms must check the box indicating either "yes" or "no." A transaction involving virtual currency includes, but is not limited to: The receipt of virtual currency as payment for goods or services provided; The receipt or transfer of virtual currency for free (without providing any consideration) that does not qualify as a bona fide gift; The receipt of new virtual currency as a result of mining and staking activities; The receipt of virtual currency as a result of a hard fork; An exchange of virtual currency for property, goods or services; An exchange/trade of virtual currency for another virtual currency; A sale of virtual currency; and Any other disposition of a financial interest in virtual currency. If an individual disposed of any virtual currency that was held as a capital asset through a sale, exchange or transfer, they should check "Yes" and use Form 8949 to figure their capital gain or loss and report it on Schedule D (Form 1040). If they received any virtual currency as compensation for services or disposed of any virtual currency they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type (for example, W-2 wages on Form 1040 or 1040-SR, line 1, or inventory or services from Schedule C on Schedule 1). More information on virtual currency can be found in the instructions for Form 1040 and on the Virtual Currencies page on IRS.gov. Report Foreign Source Income A U.S. citizen or resident alien's worldwide income is generally subject to U.S. income tax, regardless of where they live. They're also subject to the same income tax filing requirements that apply to U.S. citizens or resident aliens living in the United States. U.S. citizens and resident aliens must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. They must also report earned income, such as wages and tips, from sources outside the United States. An income tax filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, which substantially reduce or eliminate U.S. tax liability. These tax benefits are only available if an eligible taxpayer files a U.S. income tax return. A taxpayer is allowed an automatic 2-month extension to June 15 if both their tax home and abode are outside the United States and Puerto Rico. Even if allowed an extension, a taxpayer will have to pay interest on any tax not paid by the regular due date of April 18, 2022. Those serving in the military outside the U.S. and Puerto Rico on the regular due date of their tax return also qualify for the extension to June 15. IRS recommends attaching a statement if one of these two situations apply. More information can be found in the instructions for Form 1040 and 1040-SRPDF, Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad and Publication 519, U.S. Tax Guide for Aliens. Reporting required for foreign accounts and assets Federal law requires U.S. citizens and resident aliens to report their worldwide income, including income from foreign trusts and foreign bank and other financial accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located. In addition, certain taxpayers may also have to complete and attach to their return Form 8938, Statement of Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. See the instructions for this form for details. Further, separate from reporting specified foreign financial assets on their tax return, taxpayers with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2021, must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Because of this threshold, the IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is only available through the BSA E-filing System website. The deadline for filing the annual Report of Foreign Bank and Financial Accounts (FBAR) is April 15, 2022. FinCEN grants filers who missed the original deadline an automatic extension until October 15, 2022, to file the FBAR. There is no need to request this extension. See FinCEN’s websitePDF for further information. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

https://www.irs.gov/newsroom/irs-accepting-applications-for-vita-and-tce-grants-in-may

Updated June 1, 2022 — The IRS has extended the deadline to June 17 for accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs, which will allow some organizations to apply for annual funding for up to three years. IR-2022-97, April 29, 2022 WASHINGTON — The Internal Revenue Service is accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs, which will allow some organizations to apply for annual funding for up to three years. Grants.gov will accept applications beginning May 1 through May 31, 2022, for the TCE and VITA grant opportunities. Application packages and guidelines for 2022 are now available on the IRS website. The IRS, in the past year, awarded 34 TCE grantees $11 million and 300 VITA grantees $25 million. Last year, the two grant programs filed nearly 1.6 million returns nationwide. The IRS established the TCE program in 1978 to provide tax counseling and return preparation to persons aged 60 or older and to give training and technical assistance to the volunteers who provide free federal income tax assistance within elderly communities across the nation. For more information on the TCE program, visit the IRS's TCE webpage. The VITA Grant program was established in 2007 to supplement the VITA program created in 1969. VITA provides free tax filing assistance to underserved communities. The grant program enables VITA to extend these services to underserved populations in hardest-to-reach, urban and non-urban areas; increase the capacity of targeted taxpayers to file returns electronically; enhance training of volunteers and improve the accuracy rate of returns prepared at VITA sites. More information on the VITA grant program is available at IRS VITA Grant Program.

https://www.irs.gov/newsroom/irs-revises-tax-year-2021-filing-season-2022-frequently-asked-questions-for-the-child-tax-credit

IR-2022-96, April 27, 2022 WASHINGTON — The IRS today issued a revised set of frequently asked questions for tax year 2021 and filing season 2022 for the Child Tax Credit. These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-28 PDF, April 27, 2022. The revision adds Topic F: Commonly Asked Filing Season Questions, Questions 1 through 6. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/irs-selects-new-leadership-for-small-business-and-self-employed-division

IR-2022-95, April 27, 2022 WASHINGTON — The Internal Revenue Service today announced that experienced agency executive Lia Colbert has been named the new commissioner of the Small Business Self-Employed Division (SB/SE), which oversees the agency's collection activities and the examinations of most businesses in the United States. "This is a crucial position for the IRS, and Lia's background provides a unique perspective for this important role," said IRS Commissioner Chuck Rettig. "This area is critical to ensuring fair enforcement of our nation's tax laws while respecting taxpayer rights. In addition, this area is a key place for the agency to find ways to improve the taxpayer experience, not just for individuals who interact with this area but also for tax professionals that handle enforcement-related issues." The IRS also announced that Maha Williams has been selected to act as the deputy commissioner, SB/SE Examination, to fill in for De Lon Harris, who is retiring at the end of April. Darren Guillot will continue to serve as deputy commissioner, SB/SE Collection and Operations Support. Colbert replaces Eric Hylton, who was SB/SE commissioner, when he left the agency about a year ago. Harris and Guillot served as interim co-commissioners during that time. In her new role, Colbert will be responsible for providing executive leadership and direction to a nationwide staff of approximately 20,000 employees. These employees are responsible for the design, development and delivery of a comprehensive tax administration program. This program touches more than 57 million small business owners and self-employed taxpayers with business interests having less than $10 million of assets. Furthermore, Colbert and the SB/SE deputy commissioners will work closely with employees, managers and executives across the division to review current operations and strategize improvement opportunities by looking deeply into experiences faced by the nation's taxpayers and IRS employees in this ever-challenging pandemic environment. Williams will be responsible for providing executive expertise and direction for special projects covering major segments of SB/SE including Campus Exam/Automated Under Reporter (AUR), Field Exam, Specialty Exam, Headquarters Exam and Exam Performance & Planning Analysis. She will also oversee the Office of Promoter Investigations (OPI), which provides support for all IRS efforts in identifying abusive tax transactions, tax schemes, and emerging abusive arrangements. Colbert's most-recent role at the IRS was deputy chief Appeals. Prior to that, she was IRS chief of staff and executive lead of the team that drafted the Taxpayer First Act Report to Congress. She also has held several senior leadership and executive roles within Appeals and the Human Capital Office. She started her career at the IRS as a revenue officer before becoming a settlement officer in Appeals. "Lia is a strong leader with an excellent taxpayer experience perspective, a proven track record of working well with internal and external partners, and deep people development skill," said IRS Deputy Commissioner Services and Enforcement Douglas O'Donnell. "We are moving forward to implement the vision outlined in the Taxpayer First Act Report to Congress, and Lia will be a strong addition to the Services and Enforcement leadership team in that effort. The IRS will be well served with Lia, Maha and Darren in these pivotal roles." Maha began her career as a revenue agent in Tampa in 2001. She has held various management positions in SB/SE, including deputy director Examination, director Field and Campus Policy and director Case Selection. She is a 2018 graduate of the Candidate Development Program, earned her bachelor's degree in Accounting from State University of New York at Plattsburgh and is a certified public accountant.

https://www.irs.gov/newsroom/irs-seeks-nominations-for-the-2023-internal-revenue-service-advisory-council

IR-2022-94, April 25, 2022 WASHINGTON — The Internal Revenue Service today announced it's accepting applications for the Internal Revenue Service Advisory Council for 2023. Applications will be accepted through June 3, 2022. The IRSAC serves as an advisory body to the IRS commissioner and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. The advisory council: proposes enhancements to IRS operations, recommends administrative and policy changes to improve taxpayer service, compliance and tax administration, discusses relevant information reporting issues, addresses matters concerning tax-exempt and government entities and conveys the public's perception of professional standards and best practices for tax professionals. IRSAC members are appointed to three-year terms by the IRS commissioner and submit a report to the commissioner annually at a public meeting. Applications are currently being accepted for terms that will begin in January 2023. Nominations of qualified individuals may come from individuals or organizations. IRSAC members are drawn from substantially diverse backgrounds representing a cross-section of the taxpaying public with substantial, disparate experience in: tax preparation for individuals, small businesses and large, multi-national corporations, tax-exempt and government entities, information reporting and taxpayer or consumer advocacy. Applications should document the proposed member's qualifications. In particular, the IRSAC is seeking applicants with knowledge and background in some of the following areas: Individual Wage & Investment Knowledge of tax law application/tax preparation experience, income tax issues related to refundable credits, the audit process, and/or how information returns are used and integrated for compliance, Experience educating on tax issues and topics with multi-lingual taxpayer communications and taxpayer advocacy or contact center operations, marketing/applying industry benchmarks to operations with tax software industry and/or with the creation or use of diverse information returns used to report income, deductions, withholding or other information for tax purposes, Familiarity with IRS tax forms and publications and with IRS's online applications (e.g., Online Account, EITC Assistant, etc.) and Financial services information technology background with knowledge of technology innovations in public and private customer service sectors. Small Business & Self-Employed Knowledge or experience with virtual currency/cryptocurrency and/or peer to peer payment applications, Knowledge of passthrough entities and/or fiduciary tax, Experience with online or digital businesses, audit representation and/or educating on tax issues and topics, Knowledge base and/or background related to Collection activities, Experience as a practitioner in one or more underserved communities (e.g., where English is not the first language), Experience with digitalization systems, tools or processes and Marketing experience to help with ideas for increasing uptake of digital tools offered by the IRS. Large Business & International Experience as a certified public accountant or tax attorney working in or for a large, sophisticated multinational organization and Experience working in-house at a major firm dealing with tax planning for complex organizations including large multinational corporations and large partnerships. Tax Exempt & Government Entities Experience with exempt organizations and Experience with employee plans. Information reporting Payment processors (i.e., credit card processors), colleges/universities and/or multinational corporations with experience filing information returns. Applicants must be in good standing regarding their own tax obligations and demonstrate high professional and ethical standards. All applicants must complete and submit an application and pass a tax compliance and practitioner check. For those applicants deemed "Best Qualified," FBI fingerprint checks will also be required. More information, including the application form, is available on the IRSAC's webpage. Questions about the application process can be emailed to publicliaison@irs.gov.

https://www.irs.gov/newsroom/may-16-is-filing-deadline-for-many-tax-exempt-organizations

IR-2022-93, April 21, 2022 WASHINGTON — The Internal Revenue Service today reminded tax-exempt organizations that many have a filing deadline of May 16, 2022. Those that operate on a calendar-year (CY) basis have certain annual information and tax returns they file with the IRS. These returns are: Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF) Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts) Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code Mandatory electronic filing Electronic filing provides fast acknowledgement that the IRS has received the return and reduces processing time, making compliance with reporting requirements easier. Organizations filing a Form 990, 990-EZ, 990-PF or 990-T for CY2021 must file their returns electronically. Private foundations filing a Form 4720 for CY 2021 must file the form electronically. Charities and other tax-exempt organizations can file these forms electronically through an IRS Authorized e-File Provider. Organizations eligible to submit Form 990-N must do so electronically and can submit it through Form 990-N (e-Postcard) on IRS.gov. "To help exempt organizations comply with their filing requirements, the IRS provides a series of pre-recorded online workshops," said Robert Malone, Exempt Organizations and Government Entities Director. "These workshops are designed to assist officers, board members and volunteers with the steps they need to take to maintain their tax-exempt status, including filing annual information returns." Common errors The IRS also reminds organizations to submit complete and accurate returns. If an organization's return is incomplete or the wrong return for the organization, the return will be rejected. Common errors include missing or incomplete schedules. Extension of time to file Tax-exempt organizations that need additional time to file beyond the May 16 deadline can request a 6-month automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization ReturnPDF. In situations where tax is due, extending the time for filing a return does not extend the time for paying tax. The IRS encourages organizations requesting an extension to electronically file Form 8868.

https://www.irs.gov/newsroom/irs-announces-2022-funding-for-low-income-taxpayer-clinic-grant-recipients

IR-2022-92, April 20, 2022 WASHINGTON — The Internal Revenue Service announced today that more than $12.1 million in matching grants were awarded to 131 organizations across the country for development, expansion or continuation of qualified Low Income Taxpayer Clinics (LITCs) for the 2022 grant year. The grant year runs from January 1 to December 31, 2022. Through the LITC Program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. The LITC Program is a federal grant program administered by the Taxpayer Advocate Service, an independent organization within the IRS led by the National Taxpayer Advocate Erin M. Collins. Although LITCs receive partial funding from the IRS, LITCs, their employees and volunteers are independent from the IRS. Qualified organizations awarded LITC grants ensure the fairness and integrity of the tax system for taxpayers who are low-income or speak English as a second language (ESL) by providing pro bono representation for qualified taxpayers in tax disputes with the IRS, educating them about their rights and responsibilities as taxpayers, and identifying and advocating on issues that impact these taxpayers. Here is a complete list of 2022 grant recipientsPDF, the cities and states where they are located, and the amounts awarded by the IRS. More information about LITCs and the work they do to represent, educate and advocate on behalf of low-income and ESL taxpayers is available in IRS Publication 5066, LITC Program ReportPDF. IRS Publication 4134, Low Income Taxpayer Clinic ListPDF, provides information about LITCs by geographic area, including contact information and details about the languages served at that specific LITC location.

https://www.irs.gov/newsroom/taxpayers-who-owe-and-missed-the-april-18-filing-deadline-should-file-now-to-limit-penalties-and-interest-not-too-late-to-claim-the-child-tax-credit-for-2021

IR-2022-91, April 19, 2022 WASHINGTON — The Internal Revenue Service encourages taxpayers who missed Monday's April 18 tax-filing deadline to file as soon as possible. While taxpayers due a refund receive no penalty for filing late, those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. Families who don't owe taxes to the IRS can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025, without any penalty. This year also marks the first time in history that many families with children in Puerto Rico will be eligible to claim the Child Tax Credit, which has been expanded to provide up to $3,600 per child. Some taxpayers automatically qualify for extra time to file and pay taxes due without penalties and interest, including: Members of the military who served or are currently serving in a combat zone. They may qualify for an additional extension of at least 180 days to file and pay taxes. Support personnel in combat zones or a contingency operation in support of the Armed Forces. They may also qualify for a filing and payment extension of at least 180 days. Taxpayers outside the United States. U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico, including military members on duty who don't qualify for the combat zone extension, may qualify for a 2-month filing and payment extension. Some disaster victims. Those who qualify have more time to file and pay what they owe. File without penalty to get a tax refund Some people may choose not to file a tax return because they didn't earn enough money to be required to file. But they may miss out on receiving a refund. The only way to get a refund is to file a tax return. There's no penalty for filing after the April 18 deadline if a refund is due. Taxpayers are encouraged to use electronic filing options including IRS Free File which is available on IRS.gov through October 17 to prepare and file 2021 tax returns electronically. While most tax credits can be used to reduce the tax owed, there are a few credits that allow taxpayers to receive money beyond what they owe. The most common examples of these refundable credits are the Earned Income Tax Credit, Child and Dependent Care Credit and Child Tax Credit. Those who don't usually file and didn't qualify for a third-round Economic Impact Payment or got less than the full amount may be eligible to claim the 2021 Recovery Rebate Credit when they file their 2021 tax return. Taxpayers often fail to file a tax return and claim a refund for these credits and others for which they may be eligible. Generally, the IRS issues nine out of 10 refunds in less than 21 days for taxpayers who e-file and choose direct deposit. However, it's possible a tax return may require additional review or take longer. The IRS processes paper tax returns in the order they are received. Taxpayers can track their refund using the Where's My Refund? tool on IRS.gov, IRS2Go or by calling the automated refund hotline at 800-829-1954. Taxpayers need the primary Social Security number on the tax return, the filing status and the expected refund amount. The refund status information updates once daily, usually overnight, so there's no need to check more frequently. File to reduce penalties and interest Taxpayers should file their tax return and pay any taxes they owe as soon as possible to reduce penalties and interest. An extension to file is not an extension to pay. An extension to file provides an additional six months with a new filing deadline of October 17. Penalties and interest apply to taxes owed after April 18 and interest is charged on tax and penalties until the balance is paid in full. Filing and paying as much as possible is key because the late-filing penalty and late-payment penalty add up quickly. Even if a taxpayer can't afford to immediately pay the full amount of taxes owed, they should still file a tax return to reduce possible delayed filing penalties. The IRS offers a variety of options for taxpayers who owe the IRS but cannot afford to pay. Usually, the failure to file penalty is 5% of the tax owed for each month or part of a month that a tax return is late, up to five months, reduced by the failure to pay penalty amount for any month where both penalties apply. If a return is filed more than 60 days after the due date, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less. The failure to pay penalty rate is generally 0.5% of unpaid tax owed for each month or part of a month until the tax is fully paid or until 25% is reached. The rate is subject to change. For more information see the Penalties page on IRS.gov. Taxpayers may qualify for penalty relief if they have filed and paid timely for the past three years and meet other important requirements, including paying or arranging to pay any tax due. For more information, see the first time penalty abate page on IRS.gov. Pay taxes due electronically on IRS.gov/payments Those who owe taxes can pay quickly and securely via their Online Account, IRS Direct Pay, debit or credit card or digital wallet, or they can apply online for a payment plan (including an installment agreement). Taxpayers paying electronically receive immediate confirmation when they submit their payment. With Direct Pay and the Electronic Federal Tax Payment System (EFTPS), taxpayers can receive email notifications about their payments. Selecting a tax professional The IRS offers tips to help taxpayers choose a Tax Professional to assist in tax return preparation. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find tax return preparers who hold a professional credential recognized by the IRS or who have completed IRS requirements for the Annual Filing Season Program. Taxpayer Bill of Rights Taxpayers have fundamental rights under the law that protect them when they interact with the IRS. The Taxpayer Bill of Rights presents these rights in 10 categories. IRS Publication 1, Your Rights as a Taxpayer, highlights these rights and the agency's obligation to protect them.

https://www.irs.gov/newsroom/2022-irs-nationwide-tax-forum-begins-july-19

IRS YouTube Video: 2022 IRS Nationwide Tax Forum - Virtual (obsolete) IR-2022-90, April 19, 2022 WASHINGTON — The Internal Revenue Service today announced the 2022 IRS Nationwide Tax Forum will be held virtually over five weeks starting July 19, with a series of live-streamed webinars every Tuesday, Wednesday and Thursday. Held each summer for more than 30 years, the IRS Nationwide Tax Forum is the IRS's marquee outreach event to the tax professional community. Even as some areas of the country are lifting limits on indoor gatherings, the IRS will once again present the Nationwide Tax Forum in a virtual format out of an abundance of caution. The virtual format allows experts from the IRS and its association partners to educate and update the tax professional community on tax law, professional ethics, virtual currency, collection issues and many other topics. Registering and attending these virtual seminars will allow many to fully satisfy their annual continuing education requirements. Tax professionals are encouraged to  register now  to take advantage of this virtual program. Seminar dates and agenda The 2022 IRS Nationwide Tax Forum will begin on July 19, and continue through August 18, with live-streamed webinars broadcast on Tuesdays, Wednesdays and Thursdays. Registration enables attendees to participate in all of the live webinars earning up to 28 continuing education credits. The IRS Nationwide Tax Forum will feature a keynote address from Commissioner Charles P. Rettig, a plenary session with tax law and publications updates and multiple sessions on high-interest topics. Presentations are made by both IRS experts and partner associations. This year four seminars, including the plenary session and an ethics webinar, will be offered both in English and Spanish. Additional multilingual resources will be available for attendees in the Virtual Expo. Course details, including webinar titles, descriptions and schedule will be available soon. 2022 registration and fees Tax professionals who register by 5 p.m. ET on June 15, qualify for an Early Bird rate of $240 per person. The standard rate starting June 16, will be $289. Discounts for national association members Members of the IRS national partner associations listed below qualify for a discount of $10 off the Early Bird rate, but only if they register by June 15. Participating association members should contact their association directly for more information: American Bar Association (ABA) Section of Taxation American Institute of Certified Public Accountants (AICPA) National Association of Enrolled Agents (NAEA) National Association of Tax Professionals (NATP) National Society of Accountants (NSA) National Society of Tax Professionals (NSTP) Low Income Taxpayer Clinics (LITC) Volunteer Income Tax Assistance Program (VITA) Virtual Expo and focus groups Registration at the 2022 IRS Nationwide Tax Forum includes access to the Virtual Expo. The Virtual Expo provides a great opportunity to visit with exhibitors representing dozens of commercial leaders in tax software and financial services, as well as leading national associations and several key IRS offices. Highlights of the Virtual Expo include: The latest tax products and software Representatives from IRS program offices in the IRS Zone, including expanded resources for multilingual engagement Bonus Q&A sessions in the Speaker's Corner after each live session Live webinars from many of our sponsors In addition, attendees are invited to share their experiences and discuss innovative ideas directly with the IRS in numerous small, virtual focus groups. Please check 2022 IRS Nationwide Tax Forum registration page for the list of topics and qualifying criteria.

https://www.irs.gov/newsroom/irs-reminds-employers-of-penalty-relief-related-to-claims-for-the-employee-retention-credit

IR-2022-89, April 18, 2022 WASHINGTON — The Department of the Treasury and the Internal Revenue Service have received requests from taxpayers and their advisors for relief from penalties arising when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a retroactively claimed employee retention tax credit (ERTC), but the taxpayer is unable to pay the additional income tax because the ERTC refund payment has not yet been received. Treasury and the IRS are aware that this situation may arise, in part, due to the IRS's backlog in processing adjusted employment tax returns (e.g., Form 941-X) on which the taxpayers claim ERTC retroactively. Based on applicable law, IRS guidance provides that an employer must reduce its income tax deduction for the ERTC qualified wages by the amount of the ERTC for the tax year in which such wages were paid or incurred. Taxpayers that claimed the ERTC retroactively and filed an amended income tax return reducing their deduction for the ERTC qualified wages paid or incurred in the tax year for which the ERTC is retroactively claimed have an increased income tax liability but may not yet have received their ERTC refund. This release reminds taxpayers that, consistent with the relief from penalties for failure to timely pay noted in Notice 2021-49, they may be eligible for relief from penalties for failing to pay their taxes if they can show reasonable cause and not willful neglect for the failure to pay. In general, taxpayers may also qualify for administrative relief from penalties for failing to pay on time under the IRS's First Time Penalty Abatement program if the taxpayer: Did not previously have to file a return or had no penalties for the three prior tax years, Filed all currently required returns or filed an extension of time to file and Paid, or arranged to pay, any tax due. For general information, visit the Penalty Relief page on IRS.gov.

https://www.irs.gov/newsroom/extensions-of-time-to-file-tax-returns-some-taxpayers-instantly-qualify

IR-2022-88, April 18, 2022 WASHINGTON — Taxpayers requesting an extension will have until Monday, Oct. 17, 2022, to file a return. Not everyone has to ask for more time, however. Disaster victims, taxpayers serving in combat zones and those living abroad automatically have longer to file. An extension of time to file will also automatically process when taxpayers pay all or part of their taxes electronically by this year's original due date of April 18, 2022. Although taxpayers can file up to six months later when they have an extension, taxes are still owed by the original due date. Here's more about those who get automatic extensions: Disaster victims Victims of the December 2021 tornadoes and flooding in Arkansas, Illinois, Kentucky and Tennessee have until May 16, 2022, to file their 2021 returns and pay any tax due, as do victims of Colorado wildfires and straight-line winds that began Dec. 30. In addition, victims of severe storms, flooding and landslides that began on Feb. 4 in Puerto Rico will have until June 15, 2022, to file and pay. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in a federally declared disaster area when at least one area qualifies for FEMA's Individual Assistance program. Ordinarily, this means that taxpayers need not contact the IRS to get disaster tax relief. This relief also includes more time for making 2021 contributions to IRAs and other plans and making 2022 estimated tax payments. In some cases, relief is also available to people living outside the disaster area if, for example, they have a business located in the disaster area, have tax records located in the disaster area or are assisting in disaster relief. For details on all available relief, visit the Around the Nation page on IRS.gov. Combat zone taxpayers Military service members and eligible support personnel serving in a combat zone have at least 180 days after they leave the combat zone to file their tax returns and pay any tax due. This includes those serving in Iraq, Afghanistan and other combat zones. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces' Tax Guide, available on IRS.gov. Combat zone extensions also give affected taxpayers more time for a variety of other tax-related actions, including contributing to an IRA. Various circumstances affect the exact length of the extension available to taxpayers. Details, including examples illustrating how these extensions are calculated, are in the Extensions of Deadlines section in Publication 3. Taxpayers outside the United States U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico have until June 15, 2022, to file their 2021 tax returns and pay any tax due. The special June 15 deadline also applies to members of the military on duty outside the U.S. and Puerto Rico who do not qualify for the longer combat zone extension. Affected taxpayers should attach a statement to their return explaining which of these situations apply. Though taxpayers abroad get more time to pay, interest — currently at the rate of 4% per year, compounded daily — applies to any payment received after this year's April 18 deadline. For more information about the special tax rules for U.S. taxpayers abroad, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, on IRS.gov. Everyone else Taxpayers who don't qualify for any of these three special situations can still get more time to file by submitting a request for an automatic extension. This will extend their filing deadline until Oct. 17, 2022. But because this is only a tax-filing extension, their 2021 tax payments are still due by April 18. An easy way to get the extra time is through IRS Free File on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. To get the extension, taxpayers must estimate their tax liability on this form. Another option is to pay electronically and get a tax-filing extension. The IRS will automatically process an extension when a taxpayer selects Form 4868 and makes a full or partial federal tax payment by the April 18 due date using their Online Account, Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a debit, credit card or digital wallet. Under this option, there is no need to file a separate Form 4868. Taxpayers must register for EFTPS before using. Electronic payment options are available at Pay Online. The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states.

https://www.irs.gov/newsroom/irs-notices-cp2100-and-2100a-to-help-payers-correct-backup-withholding-errors-will-go-out-in-april-2022

IR-2022-87, April 15, 2022 WASHINGTON — Beginning in mid-April 2022, the Internal Revenue Service will send CP2100 and CP2100A notices to financial institutions, businesses or payers who filed certain types of information returns that don't match IRS records. These information returns include: Form 1099-B, Proceeds from Broker and Barter Exchange Transactions Form 1099-DIV, Dividends and Distributions Form 1099-G, Certain Government Payments Form 1099-INT, Interest Income Form 1099-K, Payment Card and Third-Party Network Transactions Form 1099-MISC, Miscellaneous Income Form 1099-NEC, Nonemployee Compensation Form 1099-OID, Original Issue Discount Form 1099-PATR, Taxable Distributions Received from Cooperatives Form W-2G, Certain Gambling Winnings CP2100 and CP2100A notices are sent twice a year; an initial mailing in September and October and a second mailing in April of the following year. The notices inform payers that the information return is missing a Taxpayer Identification Number (TIN), has an incorrect name or a combination of both. Each notice has a list of payees, or the persons receiving certain types of income payments, with identified TIN issues. Payers need to compare the accounts listed on the notice with their account records and correct or update their records, if necessary. This can also include correcting backup withholding on payments made to payees. The notices also inform payers that they are responsible for backup withholding. Payments reported on the information returns listed above are subject to backup withholding if: The payer does not have the payee's TIN when making the reportable payments. The payee does not certify their TIN as required for reportable interest, dividend, broker and barter exchange accounts. The IRS notifies the payer that the payee furnished an incorrect TIN and the payee does not certify their TIN as required. The IRS notifies the payer to begin backup withholding because the payee did not report all their interest and dividends on their tax return. Payers remain liable for the amount they failed to backup withhold, and penalties may apply. Publication 1281, Backup Withholding on Missing and Incorrect Name/TINsPDF, has more information to help payers comply with backup withholding.

https://www.irs.gov/newsroom/irs-reminders-about-april-18-deadline-for-last-minute-filers-and-others

IR-2022-86, April 15, 2022 WASHINGTON — The Internal Revenue Service is reminding taxpayers the deadline to file and pay tax owed for most individual income tax returns is Monday, April 18. The agency wants last-minute filers to know tax help is available to file a tax return, request an extension or make a payment, 24 hours a day on IRS.gov. The IRS encourages taxpayers to file electronically because tax software does the calculations, flags common errors and reduces tax return errors by prompting taxpayers for missing information. The fastest way to receive a refund is to file electronically and use direct deposit. IRS Free File is available to any person or family with an adjusted gross income (AGI) of $73,000 or less in 2021. Leading tax software providers make their online products available for free. Taxpayers can use IRS Free File to claim the remaining amount of their Child Tax Credit, the Earned Income Tax Credit and other important credits. IRS Free File Fillable Forms is available to anyone who is comfortable preparing their own tax return - so there is a free option for everyone. Online Account provides information to help file an accurate return, including Advance Child Tax Credit and Economic Impact Payment amounts, Adjusted Gross Income amounts from last year's tax return, estimated tax payment amounts and refunds applied as a credit. Get a 6-month extension to file The IRS estimates 15 million taxpayers will request an extension of time to file and the easiest way to request an extension to file is using IRS Free File. In a matter of minutes, anyone can request an extension until October 17, using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. An extension of time to file is not an extension of time to pay, however, and taxpayers must estimate their tax liability on this form and pay any amount due by the April 18 filing deadline to avoid penalties and interest. Taxpayers can also request more time by paying all or part of their estimated income tax due and indicate that the payment is for an extension. They can do this using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit, credit card or digital wallet. This way they don't have to file a separate extension form and will receive a confirmation number for their records. IRS Form 4868 can also be downloaded from Forms, Instructions & Publications, completed and addressed to the correct IRS office, and must be postmarked by the filing deadline. Who automatically has more time to file? The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in areas covered by Federal Emergency Management Agency disaster declarations. Deadlines to file tax returns and make tax payments are extended for affected taxpayers in certain areas of Arkansas, Colorado, Kentucky and Tennessee until May 16, 2022, and for Puerto Rico until June 15, 2022. For details on all available relief, visit the Around the Nation page on IRS.gov. Special rules may apply for some military personnel serving in a combat zone or a qualified hazardous duty area. This also applies to individuals serving in the combat zone in support of the U.S. Armed Forces. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces' Tax Guide, available on IRS.gov. U.S. citizens and resident aliens living outside the United States have until June 15, 2022, to file their 2021 tax returns and pay any tax due. $1.5 billion in unclaimed 2018 refunds The IRS estimates 1.5 million taxpayers did not file a 2018 tax return to claim tax refunds worth more than $1.5 billion. The three-year window of opportunity to claim a 2018 tax refund closes April 18, 2022, for most taxpayers. If they do not file a 2018 tax return by April 18, 2022, the money becomes the property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the 2018 tax return is postmarked by that date. Other April 18 deadlines April 18 is also the deadline to make 2021 contributions to Individual Retirement Arrangements (IRAs). Contributions can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution. For more information, see Retirement Plans FAQs Regarding IRAs or Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). Employment taxes are due April 18 for household employees including housekeepers, maids, babysitters, gardeners and others who work in or around a private residence as an employee if they were paid $2,300. For more information, see Publication 926, Household Employer's Tax Guide. The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states. The first quarter estimated tax payment for 2022 is also due on April 18. Taxpayers are encouraged to check their withholding for 2022 after they've filed their 2021 tax return. It can protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. It can also help taxpayers adjust their tax withheld up front, so taxpayers receive a bigger paycheck and smaller refund at tax time.

https://www.irs.gov/newsroom/try-irsgov-first-for-last-minute-tax-help-and-tips

IRS YouTube Videos: Help for Taxpayers  Help for Taxpayers (ASL)  IR-2022-85, April 14, 2022 WASHINGTON — Today's Internal Revenue Service website provides millions with the tax solutions they need 24 hours a day and eliminates unnecessary calls or trips to an IRS office. On IRS.gov, waiting in line is never a problem and there's no appointment needed. The many online tools and resources range from tax preparation and refund tracking to tax law research tools like the Interactive Tax Assistant and answers for Frequently Asked Questions on dozens of subjects. File taxes, view accounts, make payments – all online! Taxpayers can use the "File" tab on the IRS.gov home page for most federal income tax needs. The IRS Free File program offers 70% of all taxpayers the choice of several brand-name tax preparation software packages to use at no cost. Those who earned less than $73,000 in 2021 can choose which package is best for them. Some even offer free state tax return preparation. To see their tax account, taxpayers can use the View Your Account tool. They'll find information such as a payoff amount, the balance for each tax year owed, up to 24 months of their payment history and key information from their current tax year return as originally filed. Taxpayers can find the most up-to-date information about tax refunds using the Where's My Refund? tool on IRS.gov and on the official IRS mobile app, IRS2Go. Within 24 hours after the IRS acknowledges receipt of an e-filed return taxpayers can start checking on the status of their refund. Those who owe can use IRS Direct Pay to pay taxes for the Form 1040 series, estimated taxes or other associated forms directly from a checking or savings account at no cost. Taxpayers can also use the Get Transcript tool to view, print or download their tax transcripts after the IRS processes their return or payment. File complete and accurate returns to avoid processing delays To avoid situations that can slow a refund, taxpayers should be careful to file a complete and accurate tax return. If a return includes errors or is incomplete, it may require further review. Taxpayers should be sure to have all their year-end statements in hand before filing a return. This includes Forms W-2 from employers, Form 1099-G from state unemployment offices, Forms 1099 from banks and other payers, and Form 1095-A from the Health Insurance Marketplace for those claiming the Premium Tax Credit. Individuals should refer to Letter 6419 for advance Child Tax Credit payments and Letter 6475 for third Economic Impact Payment amounts they received– or their Online Account – to prepare a correct tax return. Claiming incorrect tax credit amounts can not only delay IRS processing but can also lead to adjusted refund amounts. Assistive technology options At the online Alternative Media Center (AMC), taxpayers will find a variety of accessible products like screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications that can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print. Please note that every product is not available in all formats. For example, tax forms are not available as HTML documents. Prevent fraud with an Identity Protection PIN An Identity Protection PIN (IP PIN) is a six-digit number that prevents someone from filing a tax return using another taxpayer's Social Security number. The IP PIN is known only to the real taxpayer and the IRS and helps the IRS verify the taxpayer's identity when they file their electronic or paper tax return. Starting in 2021, any taxpayer who can verify their identity can voluntarily opt into the IP PIN program. See Get an IP PIN for details and to access the online tool. There are options for those who cannot verify their identities online. Find free, local tax preparation The IRS's Volunteer Income Tax Assistance (VITA) program has operated for over 50 years. It offers free basic tax return preparation to qualified individuals: People who generally make $58,000 or less, People with disabilities and Limited English-speaking taxpayers. The Tax Counseling for the Elderly (TCE) program also offers free tax help for taxpayers, particularly those age 60 and older. The VITA/TCE Site Locator can help eligible taxpayers find the nearest community-based site staffed by IRS-trained and certified volunteers. Demand is high for this service so taxpayers may experience longer wait times for appointments. Taxpayers can use the locator tool to find an available site near them. It's updated throughout the tax season, so individuals should check back if they don't see a nearby site listed. And MilTax, Military OneSource's tax service, offers online software for eligible military members, veterans and their families to electronically file a federal return and up to three state returns for free. Adjust withholding now to avoid tax surprises next year Now is a perfect time for taxpayers to check their withholding and avoid a tax surprise next filing season. Life events like marriage, divorce, having a child or a change in income can all impact taxes. The Withholding Estimator on IRS.gov helps employees assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate. Taxpayers should remember that, if needed, they should submit their new W-4 to their employer, not the IRS. Phone assistance and in-person appointments during COVID-19 The IRS works hard to provide quality service to taxpayers while actively responding to the impacts of the pandemic and focusing on the safety and health of taxpayers and employees. The IRS encourages people to use existing electronic tools available on IRS.gov as much as possible before calling and continues its efforts to develop more resources to help meet taxpayer needs. For example, voice bots helped people calling the Economic Impact Payment (EIP) toll-free line, providing general procedural responses to frequently asked questions. As of April 9, 2022, nearly 2.5 million taxpayers had their questions answered through electronic assistance. The IRS also added voice bots for the Advanced Child Tax Credit (AdvCTC) toll-free line this year to provide similar assistance to callers who need help reconciling the credits on their 2021 tax return. As of April 9, 2022, almost 200,000 taxpayers’ queries were answered through these bots.  The IRS also continues to provide face-to-face tax assistance at Taxpayer Assistance Centers by appointment when necessary and at walk-in Saturday events. The IRS follows Centers for Disease Control social distancing guidelines for COVID-19 at all office appointments.

https://www.irs.gov/newsroom/irs-free-file-can-help-those-with-no-filing-requirement-find-overlooked-tax-credits-and-get-a-refund

IRS YouTube Videos: Why You Should Use Free File (obsolete) Why Should You Use Free File? (ASL) (obsolete) IR-2022-84, April 14, 2022 WASHINGTON — The Internal Revenue Service today urged low- to moderate-income individuals and families, especially those who don't normally file a tax return, to use IRS Free File to prepare their own federal tax return, file electronically and get a refund by direct deposit – all for free. The tax software guides people through each section of their tax return using a question-and-answer format. It's safe, easy and free to file a federal return. Individuals who didn't earn enough money to require them to file may mistakenly assume that since they owe no tax they're not entitled to a refund. They may, however, be eligible for the Earned Income Tax Credit, the Child Tax Credit, the Child & Dependent Care Credit, the Premium Tax Credit or the 2021 Recovery Rebate Credit. These credits are refundable and can result in a refund, even if the individual owes no income tax. More information on these credits is available in IRS: Expanded credits for families highlight tax changes for 2021; many people who don’t normally file should file this year. This year's federal tax filing deadline for individuals is April 18. The only way to get a refund is to file a tax return. Taxpayers can use electronic filing options including IRS Free File available on IRS.gov through October 17 to prepare and file returns electronically. IRS Free File offers free access to leading tax software to anyone who has an adjusted gross income (AGI) of $73,000 or less. Available only at IRS.gov, IRS Free File offers low- to moderate-income families those experiencing homelessness, students who are now on their own or may have only worked part time and others a fast and easy way to access these benefits. Anyone can use IRS Free File by accessing a computer or similar device. No computer? No problem. IRS Free File products support mobile phone access, too. Eligible people who did not receive a third-round of the Economic Impact Payment or received less than the full amount may claim the Recovery Rebate Credit when they file their 2021 tax return. More information on claiming the 2021 Recovery Rebate Credit can be found on 2021 Recovery Rebate Credit Questions and Answers. And that's where IRS Free File comes in. It's a free way to claim the full amount of tax benefits and ensure that eligible people get their refund. Look for an IRS Free File product with "no minimum income," file electronically and choose direct deposit. Through IRS Free File, leading tax software providers make their online products available for free as part of a 20-year partnership with the IRS. There are eight software products in English and two in Spanish. Visit IRS.gov/freefile for details. In addition, MilTax, available free through the Department of Defense, offers a similar online tax-preparation service to members of the military. Because IRS Free File returns are filed electronically, the service offers everyone a great way to get their money quickly. This is especially true for anyone who chooses to have their refund deposited directly into a savings or checking account. Don't have a bank account to direct deposit a refund? Visit the FDIC website or the National Credit Union Administration using their Credit Union Locator Tool for information on where to find a bank or credit union to open an account online. Veterans can see the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks. Many reloadable prepaid cards have account and routing numbers that can be provided to the IRS for a direct deposit. People should check to ensure their card can be used to have their refund applied to the card and to obtain the routing number and account number, which may be different from the card number. The IRS urges everyone to consider taking advantage of the speed and convenience of IRS Free File. This includes: People experiencing homelessness. As long as they are not someone's dependent, chances are they still qualify for the Recovery Rebate Credit even if they have little or no income. They can still use Free File even if their only access to the Internet is through a smartphone. Look for An IRS Free File product with "no minimum income." (People experiencing homelessness may list the address of a friend, relative or trusted service provider, such as a shelter, drop-in day center or transitional housing program, on the tax return). Families who had a baby or adopted a child during 2021 or who added a dependent – including a parent, a nephew or niece, or a grandchild – on their 2021 income tax return who was not listed as a dependent on their 2020 income tax return likely did not receive a stimulus payment for that qualifying child or dependent. They may be eligible to claim a 2021 Recovery Rebate Credit and must file a 2021 tax return to claim a credit of up to $1,400. All eligible parents of qualifying children born or welcomed through adoption or foster care in 2021 are also encouraged to claim the Child Tax Credit – worth up to $3,600 per child born in 2021 – on their 2021 income tax return. Low- to moderate-income workers and working families who don't normally file a return may miss out on certain credits for individuals including the EITC, the Child Tax Credit, the Child & Dependent Credit, the Premium Tax Credit if they don't file. In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those waiting on their 2020 tax return to be processed, here's a special tip to ensure the tax return is accepted by the IRS for processing. Make sure to enter $0 (zero dollars) for last year's AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance Child Tax Credit or third Economic Impact Payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year's AGI from last year's return. Remember, if using the same tax preparation software as last year, this field will auto-populate. For those who are not comfortable doing their own return, IRS-trained community volunteers offer tax help at more than 11,000 tax help sites, nationwide. To find the nearest site, visit IRS.gov/volunteers, or call 800-906-9887.

https://www.irs.gov/newsroom/irs-revises-further-frequently-asked-questions-and-answers-for-2021-recovery-rebate-credit

IR-2022-83, April 13, 2022 WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit. These FAQs (FS-2022-27PDF) updated Questions 1, 5, 8 and 9 in Topic F: Receiving the Credit on a 2021 Tax Return. Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021. Note: Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021. Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021. To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes. Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit. They should review the Recovery Rebate Credit page to determine their eligibility. The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. People can locate this information on Letter 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them beginning in late January 2022. Individuals can also view this information in their online account later in January. The FAQ's cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible. File for free and use direct deposit Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided. More information about reliance is available. IRS-FAQ  

https://www.irs.gov/newsroom/irs-revises-further-frequently-asked-questions-and-answers-for-2020-recovery-rebate-credit

IR-2022-82, April 13, 2022 WASHINGTON — The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2020 Recovery Rebate Credit. These FAQs (FS-2022-26PDF) update Topic E, Receiving the Credit on a 2020 tax return: Modifies Questions 1, 4, 5, 8 and; Adds new Questions 9 and 10. Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021. Note: Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021. Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021. To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes. Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit. They should review the Recovery Rebate Credit page to determine their eligibility. The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022. Individuals can now view this information in their online account. People can also locate this information on Letter 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them through March 2022. The FAQ's cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible. File for free and use direct deposit Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/2021-return-done-next-step-use-the-irs-tax-withholding-estimator-to-make-sure-withholding-is-right-for-2022

IR-2022-81, April 13, 2022 WASHINGTON — The Internal Revenue Service today urged any taxpayer, now finishing up their 2021 tax return, to use the IRS Tax Withholding Estimator to make sure they're having the right amount of tax taken out of their pay during 2022. This online tool offers workers, self-employed individuals and retirees who have wage income a user-friendly resource for effectively tailoring the amount of income tax withheld from wages. 2021 refund too big? Too small? Surprise tax bill? If any of these apply, the Tax Withholding Estimator can help anyone make sure it doesn't happen again by having the right amount of taxes taken out for 2022. Benefits of using the Estimator For employees, withholding is the amount of federal income tax taken out of their paycheck. Taxpayers can use the results from the Tax Withholding Estimator to determine if they should complete a new Form W-4 and submit it to their employer. For example, checking withholding can: Ensure the right amount of tax is withheld and prevent an unexpected tax bill or penalty at tax time and Determine whether to have less tax withheld up front, thereby boosting take-home pay and reducing any refund at tax time. When should taxpayers use this tool? The IRS recommends checking withholding at least once a year. For anyone who has just finished filling out their 2021 return, now is a particularly good time to do it. It's also a good idea to use this tool right after a major life change, such as marriage, divorce, home purchase or the birth or adoption of a child. What records are needed? The Tax Withholding Estimator's results are only as accurate as the information entered. To help prepare, the IRS recommends that taxpayers gather: Their most recent pay statements and if married, for their spouse, Information for other sources of income and Their most recent income tax return, 2021, if possible. While the Tax Withholding Estimator works for most taxpayers, people with more complex tax situations should instead use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends. Still working on a 2021 return? The IRS urges anyone still working on their 2021 return to make sure they have all their year-end statements in hand before filing. Besides all W-2s and 1099s, this includes two new letters issued by the IRS. People who received advance payments of the Child Tax Credit will need to reconcile, or compare, the total received in advance with the amount they're eligible to claim. Letter 6419 shows their total advance Child Tax Credit payments to help taxpayers reconcile and receive the full amount of the 2021 Child Tax Credit. While most eligible people already received their stimulus payments, people who are missing a third stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2021 federal tax return. Letter 6475 shows their total third round of Economic Impact Payments. Alternatively, anyone can securely sign in to their Online Account to access information on their advance Child Tax Credit payments and Economic Impact Payments. Taxpayers should also e-file and choose direct deposit to avoid processing delays and help with faster delivery of their refund. For most Americans, the tax-filing deadline is April 18, 2022. For residents of Maine and Massachusetts, the deadline is April 19, 2022. Americans who live and work abroad have until June 15, 2022. Those who need more time to file can get an automatic extension to file until Oct. 17, 2022. These extensions don't change the April 18 payment deadline. It is not an extension to pay. More information is available at IRS.gov. Then, after they file, taxpayers can use the Tax Withholding Estimator to help them update their withholding for 2022. Additional information Tax Withholding Estimator FAQs Paycheck Checkup

https://www.irs.gov/newsroom/irs-dispels-new-and-common-myths-about-tax-refunds-key-information-available-to-help-people

IR-2022-80, April 12, 2022 WASHINGTON ― With the April 18 tax-filing deadline closing in for most taxpayers, the Internal Revenue Service wants to dispel some new and common myths about getting refund details or speeding up tax refunds. A number of these myths circulate on social media every tax season. The IRS continues to process 2021 tax returns and deliver refunds, with nine out of 10 refunds issued in less than 21 days. As of the week ending April 1, the IRS has sent out more than 63 million refunds worth over $204 billion. The average refund is $3,226. The IRS reminds taxpayers the easiest way to check on a refund is Where's My Refund?, an online tool available on IRS.gov and through the IRS2Go mobile app. Where's My Refund? provides taxpayers the same information and issue date information that IRS assistors and tax professionals have. Where's My Refund? can be used to check the status of a tax return within 24 hours after a taxpayer receives their e-file acceptance notification. The Where's My Refund? tool is updated only once every 24 hours, usually overnight, so there's no need to check the status more than once a day. Taxpayers should only call the IRS tax help hotline to talk to a representative if it has been more than 21 days since their tax return was e-filed, or more than six weeks since mailing their return. For those awaiting processing of a 2020 tax return, the IRS continues to make progress in this area and has taken numerous steps to help address this issue, including stopping the mailing of key notices and adding more IRS employees as part of surge teams to continue working tax returns, as well as amended returns and correspondence from last year. Seven common myths about tax refunds: Myth 1: Calling the IRS or visiting an IRS office speeds up a refund Many taxpayers mistakenly believe the commonly held myth that speaking with the IRS by phone or visiting in-person at an IRS Taxpayer Assistance Center will expedite their tax refund. The best way to check the status of a refund is online through the Where's My Refund? tool at IRS.gov or via the IRS2Go mobile app. Alternatively, those without internet access can reach Where's My Refund? by calling the automated refund hotline at 800-829-1954. IRS Taxpayer Assistance Centers operate by appointment and inquiring about a tax refund's status does not expedite the process. Myth 2: Taxpayers need to wait for their 2020 return to be processed before filing their 2021 return, or that all refunds are delayed due to the number of 2020 returns the IRS still needs to process. The reality is that taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns. They should file when they're ready. People with unprocessed 2020 tax returns, should enter $0 (zero dollars) for last year's AGI on their 2021 tax return when electronically filing. Myth 3: Taxpayers can get a refund date by ordering a tax transcript Ordering a tax transcript will not inform taxpayers of the timing of their tax refund, nor will it speed up a refund being processed. Taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation. But the Where's My Refund? tool is the fastest and most accurate way to check the status of a refund. Myth 4: Where's My Refund? must be wrong because there's no deposit date yet While the IRS issues most refunds in less than 21 days, it's possible a refund may take longer for a variety of reasons, including when a return is incomplete or needs further review. Delays can be caused by simple errors like an incomplete return, transposed numbers or when a tax return is affected by identity theft or fraud. The Where's My Refund? tool only updates data once a day – usually overnight. Myth 5: Where's My Refund? must be wrong because a refund amount is less than expected Different factors can cause a tax refund to be larger or smaller than expected. Situations that may decrease a refund can include corrections to any Recovery Rebate Credit or Child Tax Credit amounts, delinquent federal taxes or state taxes and past due child support. The IRS will mail the taxpayer a letter of explanation if these adjustments are made. The Department of Treasury's Bureau of the Fiscal Service may also send a letter if all or part of a taxpayer's refund was used to pay certain financial obligations. Myth 6: Calling a tax professional will provide a better refund date Contacting a tax professional will not speed up a refund. Tax professionals cannot move up a refund date nor do they have access to any "special" information that will provide a more accurate refund date. The Where's My Refund? tool provides taxpayers with the same accurate and timely information that a tax professional, or even an IRS telephone assistor can access. Myth 7: Getting a refund this year means there's no need to adjust tax withholding for 2022 Taxpayers should continually check their withholding and adjust accordingly. Adjusting tax withholding with an employer is easy and using the Tax Withholding Estimator tool can help taxpayers determine if they are withholding the right amount from their paycheck. Taxpayers who experience a life event like marriage or divorce, childbirth, an adoption, home purchase or major income change are encouraged to check their withholding. Withholding takes place throughout the year, so it's better to take this step as soon as possible.

https://www.irs.gov/newsroom/irs-letters-going-out-to-taxpayers-who-may-need-to-take-action-related-to-qualified-opportunity-funds

IR-2022-79, April 12, 2022 WASHINGTON — The Internal Revenue Service announced today that taxpayers who may need to take additional actions related to Qualified Opportunity Funds (QOFs) should begin receiving letters in the mail in April. Taxpayers who attached Form 8996, Qualified Opportunity Fund, to their return may receive Letter 6501, Qualified Opportunity Fund (QOF) Investment Standard. This letter lets them know that information needed to support the annual certification of investment standard is missing, invalid or the calculation isn't supported by the amounts reported. If they intend to maintain their certification as a QOF, they may need to take additional action to meet the annual self-certification of the investment standard requirement. To correct the annual maintenance certification of the investment standard, these taxpayers should file an amended return or an administrative adjustment request (AAR). If an entity that receives the letter fails to act, 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. Additionally, taxpayers may receive Letter 6502, Reporting Qualified Opportunity Fund (QOF) Investments, or Letter 6503, Annual Reporting of Qualified Opportunity Fund (QOF) Investments. These letters notify them that they may not have properly followed the instructions for Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, since it appears that information is missing, invalid or that they may not have properly followed the requirements to maintain their qualifying investment in a QOF with the filing of the form. If these taxpayers intend to maintain a qualifying investment in a QOF, they can file an amended return or an AAR with a properly completed Form 8997 attached. 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 not properly deferred. For general information, visit the Opportunity Zones page.