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https://www.irs.gov/newsroom/identity-stolen-request-an-identity-protection-pin-from-the-irs

IR-2022-78, April 11, 2022 WASHINGTON — The Internal Revenue Service today reminded all taxpayers – particularly those who are identity theft victims – of an important step they should take to protect themselves from tax fraud. Some identity thieves use taxpayers' information to file fraudulent tax returns. By requesting Identity Protection PINs from the Get an IP PIN tool on IRS.gov, taxpayers can prevent thieves from claiming tax refunds in their names. Identity Protection PINs and how to get one An IP PIN is a six-digit number the IRS assigns to an individual to help prevent the misuse of their Social Security number or Individual Taxpayer Identification Number (ITIN) on federal income tax returns. The IP PIN protects the taxpayer's account, even if they're no longer required to file a tax return, by rejecting any e-filed return without the taxpayer's IP PIN Taxpayers should request an IP PIN: If they want to protect their SSN or ITIN with the IRS, If they want to protect their dependent's SSN or ITIN with the IRS, If they think their SSN, ITIN or personal information was exposed by theft or fraudulent acts or If they suspect or confirm they're a victim of identity theft. Taxpayers can go to IRS.gov/getanippin to complete a thorough authentication check. Once authentication is complete, an IP PIN will be provided online immediately. A new IP PIN is generated every year for added security. Once an individual is enrolled in the IP PIN program, there's no way to opt-out. The IRS may automatically assign an IP PIN if the IRS determines the taxpayer's a victim of tax-related identity theft. The taxpayer will receive a notification confirming the tax-related ID theft incident along with an assigned IP PIN for future tax-return filings. Taxpayers will either receive a notice with their new IP PIN every year in early January for the next filing season or they must retrieve their IP PIN by going to IRS.gov. Tax-related identity theft and how to handle it Tax-related identity theft occurs when someone uses a taxpayer's stolen SSN to file a tax return claiming a fraudulent refund. In the vast majority of tax-related identity theft cases, the IRS identifies a suspicious tax return and pulls the suspicious return for review. The IRS then sends a letter to the taxpayer and won't process the tax return until the taxpayer responds. Depending on the situation, the taxpayer will receive one of three letters asking them to verify their identity: Letter 5071C, asks them to use an online tool to verify their identity and tell the IRS if they filed the return in question. Letter 4883C, asks the taxpayer to call the IRS to verify their identity and tell the IRS if they filed the return. For those who have been a victim of a data breach, they may receive Letter 5747C and be asked to verify their identity in-person at a Taxpayer Assistance Center. If the taxpayer receives any of these letters, they don't need to file an Identity Theft Affidavit (Form 14039). Instead, they should follow the instructions in the letter. When to file an Identity Theft Affidavit If a taxpayer hasn't heard from the IRS but suspects tax-related identity theft, they should complete and submit a Form 14039, Identity Theft AffidavitPDF. Signs of possible tax-related identity theft include: A taxpayer can't e-file their tax return because a duplicate tax return was filed using their Social Security number. (Check that there's no error in the SSN, such as transposed numbers.) A taxpayer can't e-file because a dependent's Social Security number or ITIN was already used by someone on another return without the taxpayer's knowledge or permission. (Also check that the SSN or ITIN is correct and be sure the dependent hasn't filed a separate tax return.) A taxpayer receives a tax transcript in the mail they did not request. A taxpayer receives a notice from a tax preparation software company confirming an online account was created in their name, and they did not create one. A taxpayer receives a notice from their tax preparation software company that their existing online account was accessed or disabled when they took no action. A taxpayer receives an IRS notice informing them that they owe additional tax, or their refund was offset to a balance due, or that they have had collection actions taken against them for a year they did not earn any income or file a tax return. The IRS sends a taxpayer a notice indicating that the taxpayer received wages or other income from an employer for whom they didn't work. The taxpayer was assigned an Employer Identification Number (EIN), but they did not request or apply for an EIN. The IRS will work to verify the legitimate taxpayer, clear the fraudulent return from the taxpayer's account and, generally, place a special marker on the account that will generate an IP PIN each year for the taxpayer who is a confirmed victim. For information about tax-related identity theft, see Identity Protection: Prevention, Detection and Victim Assistance and IRS Identity Theft Victim Assistance: How It Works on IRS.gov. The Federal Trade Commission website also includes information about tax-related identity theft. Signs of non-tax-related identity theft; no need to file form 14039 Non-tax-related identity theft occurs when someone uses stolen or lost personal identifiable information (PII) to open credit cards, obtain mortgages, buy a car or open other accounts without their victim's knowledge. Potential evidence of non-tax-related identity theft can include: An individual receives balance due bills from companies with whom they didn't conduct business, magazine subscriptions they didn't order, notifications of a mortgage statement and/or credit cards for which they didn't apply. An individual receives notices of unemployment benefits for which they didn't apply. An individual receives a Notice CP 01E, Employment Identity Theft. An individual receives a Form W-2 or 1099 from a corporation or employer from whom they did not receive the income reported and they have not received a notice or letter from the IRS questioning them about that income. A taxpayer can't e-file because a dependent's SSN or ITIN was already used by someone who is known to the taxpayer but is not the parent or legal guardian, and the taxpayer did not provide permission for that person to claim the dependent. For additional information about this issue, see Publication 1819, Divorce and non-custodial, separated, or never married parentsPDF. Victims of non-tax-related identity theft don't need to report these incidents to the IRS but should take steps to protect against the type of identity theft they've experienced.

https://www.irs.gov/newsroom/for-those-who-make-estimated-federal-tax-payments-the-first-quarter-deadline-is-monday-april-18

IRS YouTube Videos: Estimated Tax Payments |  ASL IR-2022-77, April 6, 2022 WASHINGTON — The Internal Revenue Service today reminds those who make estimated tax payments such as self-employed individuals, retirees, investors, businesses, corporations and others that the payment for the first quarter of 2022 is due Monday, April 18. The 2022 Form 1040-ES, Estimated Tax for Individuals, can help taxpayers estimate their first quarterly tax payment. Income taxes are a pay-as-you-go process. This means, by law, taxes must be paid as income is earned or received during the year. Most people pay their taxes through withholding from paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation. Most often, those who are self-employed or in the gig economy need to make estimated tax payments. Similarly, investors, retirees and others often need to make these payments because a substantial portion of their income is not subject to withholding. Other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income. Paying quarterly estimated taxes will usually lessen and may even eliminate any penalties. Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers and fishers, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. See Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and its instructions for more information. How to pay estimated taxes Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. The best way to make a payment is through IRS Online Account. There taxpayers can see their payment history, any pending payments and other useful tax information. Taxpayers can make an estimated tax payment by using IRS Direct Pay; Debit Card, Credit Card or Digital Wallet; or the Treasury Department's Electronic Federal Tax Payment System (EFTPS). If paying by check, taxpayers should be sure to make the check payable to the "United States Treasury." 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. IRS.gov assistance 24/7 Tax help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions. The IRS is continuing to expand ways to communicate to taxpayers who prefer to get information in other languages. The IRS has posted translated tax resources in 20 other languages on IRS.gov. For more information, see We Speak Your Language.

https://www.irs.gov/newsroom/special-saturday-help-from-irs-available-without-an-appointment-on-april-9

IR-2022-76, April 4, 2022 WASHINGTON — As the federal tax filing deadline approaches later this month, the Internal Revenue Service today announced that many Taxpayer Assistance Centers will be open around the country this Saturday, April 9 for face-to-face help. This special Saturday help is available from 9 a.m. to 4 p.m., and no appointment is needed. Normally, TACs are only open by appointment on weekdays. "We are inviting anyone who wants or needs some assistance to stop by," said IRS Wage & Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin. "We designed these extra weekend hours to make it easier for taxpayers to resolve an issue, inquire about their account or work with the IRS if they have an obligation they cannot meet. Whatever the case, face-to-face help will be available on this special day without an appointment." People can also ask about reconciling advance Child Tax Credit or third round Economic Impact Payments or inquire about various other services available while at an IRS office. 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. While no tax return preparation will be available at any IRS TAC, the IRS.gov webpage, Contact your local office, lists all services provided. Taxpayers can make payments by check or money order. The IRS will not accept cash during these events. Come prepared with paperwork 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 tax and financial 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. The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. It's mandatory for people to wear face masks and social distance at these events when required by CDC guidance, such as in high transmission counties. Most taxpayers can get help preparing and filing their 2021 federal tax returns using these free, safe and convenient resources: 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 webpage to learn about filing requirements for the Recovery Rebate Credit

https://www.irs.gov/newsroom/coming-soon-2023-low-income-taxpayer-clinic-grant-application-period

IR-2022-75, April 4, 2022 WASHINGTON — The Internal Revenue Service today announced that the application period for Low Income Taxpayer Clinic (LITC) matching grants for calendar year 2023 will open on or around May 2, 2022. The LITC Program is a federal grants program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. The Taxpayer Advocate Service operates as an independent organization within the IRS. "LITCs play an important role in ensuring the voices of low-income and English as a second language-taxpayers are heard," Collins said. "The work they do is strengthened and enhanced by the many volunteers who give their time to help. I strongly encourage interested organizations and volunteers to join the LITC program to assist those in need." Under Internal Revenue Code Section 7526, the IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain an LITC. Qualified organizations that are awarded 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 on their behalf in tax disputes with the IRS, educating them about their rights and responsibilities as taxpayers, and identifying and advocating on issues that impact them. When the application period opens, the IRS will consider applicants from all areas, but is particularly interested in receiving applications from organizations that will provide coverage in unserved areas. Presently, there are no LITCs operating in the states of Montana, Nevada, North Dakota and the territory of Puerto Rico. In addition, there are a few states that have uncovered counties that are in need of LITC representation. Underserved counties in need of LITC services Arizona- Apache, Coconino and Navajo Florida- Baker, Bradford, Brevard, Citrus, Clay, Columbia, Dixie, Duval, Flagler, Hamilton, Hernando, Lafayette, Lake, Madison, Nassau, Orange, Osceola, Seminole, St. John's, Sumter, Suwanee, Taylor and Volusia Idaho- Ada, Adams, Bannock, Bear Lake, Bingham, Boise, Bonneville, Butte, Canyon, Caribou, Clark, Clearwater, Custer, Franklin, Freemont, Gem, Idaho, Jefferson, Latah, Lemhi, Lewis, Lincoln, Madison, Nez Perce, Oneida, Owyhee, Payette, Power, Teton, Valley and Washington North Carolina- Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gates, Granville, Greene, Guilford, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Sampson, Scotland, Stokes, Tyrrell, Vance, Wake, Warren, Washington, Wayne and Wilson Pennsylvania- Bradford, Clinton, Monroe, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Union and Wyoming Who qualifies as an LITC Applicants must meet key requirements to be eligible for an LITC grant such as: Be an organization, not an individual. Provide representation to low-income taxpayers and education to ESL taxpayers. Not charge more than a nominal fee for services (except for reimbursement of actual costs incurred). Have an approved IRS Employer Identification Number. Be an organization registered in the System for Award Management (SAM). In 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. 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 5066PDF. A complete overview of the requirements to be an LITC can be found in Publication 3319, LITC Grant Application Package and GuidelinesPDF. If individuals or organizations have questions or would like additional information about the LITC Program, they can contact Karen Tober at Karen.Tober@irs.gov.

https://www.irs.gov/newsroom/taxpayer-advocacy-panel-welcomes-25-new-members-calls-for-new-volunteers-to-apply-by-april-8-to-help-shape-future-of-irs-improve-taxpayer-rights

IR-2022-74, April 1, 2022 WASHINGTON – The Internal Revenue Service today announced that it recommended, and the Department of the Treasury approved, the selection of 25 new members to serve on the Taxpayer Advocacy Panel (TAP) for 2022. The new members will join 10 TAP alternates who were approved in a prior year, for a total of 35 new active members. When added to returning members, these new TAP members will round out the panel with 69 volunteers for 2022. New members were selected from a pool of approximately 300 interested individuals who applied during an open recruitment period last spring and from alternate members who applied in previous years. "We are excited to welcome all of the new members to the Taxpayer Advocacy Panel," said National Taxpayer Advocate Erin M. Collins. "These members volunteer hundreds of hours to help ensure that our tax system works for all Americans. The past few years have been extremely challenging for taxpayers and the IRS. The dedicated work of our TAP volunteers is more important than ever to help identify and prioritize initiatives to modernize the IRS, improve service and protect taxpayer rights." Members of the TAP work on a variety of issues that impact taxpayers in key areas where the IRS and the public interact the most. Members also serve as a conduit for bringing grassroots concerns raised by the taxpaying public to the attention of the IRS. 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. For example, the TAP's recommendations have resulted in many improvements to IRS tax forms, instructions and publications to make them easier for taxpayers to understand. Another TAP recommendation that was successfully adopted ensured the IRS properly alerted impacted taxpayers when an IRS processing center was closed. Read more about the work and accomplishments of the TAP in its 2021 Annual ReportPDF. Martha J. Lewis, the 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." The TAP is a federal advisory committee that serves an important role in tax administration. TAP members are a diverse group of ordinary citizens who possess a sense of civic duty, patriotism and belief in an effective and well-regarded tax system. TAP members volunteer their time and energy to improve IRS services and taxpayer satisfaction by listening to taxpayers, identifying issues and making recommendations to improve IRS service and customer satisfaction. Oversight and program support for the TAP are provided by the Taxpayer Advocate Service, an independent organization within the IRS led by the National Taxpayer Advocate. TAS helps resolve taxpayer account problems and makes administrative and legislative recommendations to mitigate systemic problems with tax administration. TAP members volunteer to serve a three-year appointment and are expected to devote 200 to 300 hours per year to panel activities. To the extent possible, TAP members are demographically and geographically diverse, providing balanced representation from all 50 states, the District of Columbia and Puerto Rico. In addition, there is one TAP member representing the interests of taxpayers working, living or doing business abroad. The new TAP members by location: Name State Sara Zanders Arkansas Sarah Holtzclaw California Debra Kurita California Victoria Ramirez California Richard Rodriguez California Angela Madison California Jean Miller Connecticut Cheryl Crowe Delaware Kimberly Fox Florida Aisha Earle Georgia Kimberly Pederzani Illinois Shelley McCracken Indiana Rebecca Lammers International Willis Keenan Kentucky Anthony Jackson, Jr. Louisiana Steven Hoffman Massachusetts Conner McFarland Maine Suzanne Trnka Minnesota Doris Carpenter Missouri George Hampton Williams Mississippi Jared Lefevre Montana Ruth Guyon Nebraska David Newingham Nevada Shequeila Birdsong New York Charles Harvey New York Kameelah Guthridge Ohio Robin Mosley Ohio Candace Smith Oklahoma Meagan Regina Pennsylvania Patricia Thompson Rhode Island Marla Brown Tennessee Richard Bell Texas Omar Roman Texas Susan LaBudde Wisconsin Melissa Harvey West Virginia Taxpayers can contact the TAP representative for their geographic area by calling 888-912-1227 (toll-free) or online at the Taxpayer Advocacy Panel’s website. Those interested in serving on the 2023 panel beginning December 1, 2022, may apply during the TAP's current recruitment period, which is open through April 8. Taxpayers can also write to the TAP at: Taxpayer Advocacy Panel TA:TAP, Room 1509 1111 Constitution Avenue, N.W. Washington, D.C. 20224

https://www.irs.gov/newsroom/irs-reminder-to-americans-abroad-file-2021-return-by-june-15-eligible-families-can-claim-expanded-tax-benefits

IR-2022-112, May 31, 2022 WASHINGTON — The Internal Revenue Service today reminded taxpayers living and working outside the United States that they must file their 2021 federal income tax return by Wednesday, June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. Just as most taxpayers in the U.S. must timely file their returns with the IRS, those living and working in another country are also required to file. An automatic two-month deadline extension—until June 15—is normally granted for those overseas. Anyone who qualifies gets the extra time—they don't need to ask for it. File to claim benefits A taxpayer must file, even if they qualify for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit. These benefits are not automatic and are only available if a U.S. return is filed. This is true, even if these or other tax benefits substantially reduce or eliminate U.S. tax liability. In addition, the IRS urges families to check out expanded tax benefits, such as the Child Tax Credit, Credit for Other Dependents, and Child and Dependent Care Expenses and claim them if they qualify. Though taxpayers abroad often qualify, the calculation of these credits differs, depending upon whether they lived in the U.S. for more than half of 2021. For more information, see the instructions to Schedule 8812 and the instructions to Form 2441. Qualifying for the June 15 extension A taxpayer qualifies for the special June 15 filing deadline if: Both their tax home and abode are outside the United States or Puerto Rico, or They are serving in the military outside the U.S. and Puerto Rico on the regular due date of their tax return. Be sure to attach a statement to the return indicating which of these two situations applies. Reporting required for foreign accounts and assets Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities 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. Treasury reporting requirement also applies to foreign accounts A special reporting requirement applies to most people who have foreign bank or financial accounts. Often referred to as the FBAR requirement, it is separate from and in addition to any reporting required on either Schedule B or Form 8938. The FBAR requirement applies to anyone with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2021. They 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. Tied to the regular tax-filing due date, the deadline for filing the annual FBAR was generally April 18, 2022. But FinCEN is granting filers who missed the original deadline an automatic extension until Oct. 17, 2022. There is no need to request this extension. Report in U.S. dollars Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars. Both FINCEN Form 114 and IRS Form 8938 require the use of a Dec. 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign Currency and Currency Exchange Rates. Tax payments To ensure tax payments are credited promptly, the IRS urges taxpayers to consider the speed and convenience of paying their U.S. tax obligation electronically. The fastest and easiest way to do that is via Online Account and IRS Direct Pay. These and other electronic payment options are available at Pay Online. Expatriate reporting Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the United States during 2021 must file a dual-status alien tax return, and attach Form 8854, Initial and Annual Expatriation Statement. A copy of Form 8854 must also be filed with Internal Revenue Service, 3651 S IH35 MS 4301AUSC, Austin, TX 78741, by the due date of the tax return (including extensions). See the instructions for this form and Notice 2009-85PDF, Guidance for Expatriates Under Section 877A, for further details. Extensions beyond June 15 Extra time is available for those who cannot meet the June 15 date. The IRS urges anyone needing the additional time to make their request electronically. Several electronic options are available. Visit IRS.gov/extensions for details. Otherwise, individual taxpayers can request a filing extension to Oct. 17, by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Businesses that need more time must file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Combat zone extension Members of the military qualify for an additional extension of at least 180 days to file and pay taxes if either of the following situations applies: They serve in a combat zone or they have qualifying service outside of a combat zone, or They serve on deployment outside the United States away from their permanent duty station while participating in a contingency operation. This is a military operation that is designated by the Secretary of Defense or results in calling members of the uniformed services to active duty (or retains them on active duty) during a war or a national emergency declared by the President or Congress. Deadlines are also extended for individuals serving in a combat zone or a contingency operation in support of the Armed Forces. This applies to Red Cross personnel, accredited correspondents and civilian personnel acting under the direction of the Armed Forces in support of those forces. Spouses of individuals who served in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and more military tax information is available in IRS Publication 3, Armed Forces' Tax Guide. Visit IRS.gov for tax information Tax help and filing information is available anytime on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions. IRS.gov/payments provides information on electronic payment options. Other resources: About Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad About Publication 519, U.S. Tax Guide for Aliens

https://www.irs.gov/newsroom/irs-releases-fiscal-year-2021-data-book-describing-agencys-activities

IR-2022-111, May 26, 2022 WASHINGTON — The Internal Revenue Service today issued the Data Book detailing the agency's activities during fiscal year 2021 (October 1, 2020 – September 30, 2021). "During Fiscal Year 2021, the COVID-19 pandemic continued to present the IRS with some of the greatest challenges in our agency's history, and the way our employees responded illustrates the significant role that the IRS plays in the overall health of our country," said IRS Commissioner Chuck Rettig. "The IRS was called on to provide economic relief during this national crisis while also fulfilling our agency's core responsibilities of tax administration; IRS employees answered Congress' call to deliver two more rounds of Economic Impact Payments and also implemented changes to the Earned Income Tax Credit, the Child Tax Credit and other refundable credits as part of the American Rescue Plan. The breadth of these missions has strengthened my belief that a fully functioning IRS is critical to the success of our nation." In addition to describing work performed during the pandemic, the IRS Data Book for fiscal year 2021 comprises 33 tables describing a wide variety of IRS activities from returns processed, revenue collected, and refunds issued to the number of examinations conducted and the amount of additional tax recommended, as well as budget and personnel information. The Data Book provides point-in-time estimates of IRS activities as of September 2021. A lengthier discussion of recent data was also released todayPDF. As the pandemic continued into 2021, the IRS delivered tax administration relief to millions of taxpayers, providing financial assistance for Americans. The American Rescue Plan Act of 2021 authorized additional rounds of stimulus payments (EIP 3), which was signed into law on March 11, 2021. The IRS started issuing checks the very next day — March 12, 2021 — providing immediate help to people across the country. The 2020 Recovery Rebate Credits allowed individuals who did not receive their first- or second-round EIPs, or who received less than the amounts they were eligible for, to claim the credits when they filed their 2020 tax return. Advance Child Tax Credit and online support The American Rescue Plan contained the important change allowing up to half of the tax year 2021 Child Tax Credits to be disbursed as advance payments to eligible families from July through December. As a result, during the second half of 2021, more than 37 million families—covering more than 61 million qualifying children—received more than $93 billion in advance CTC payments. In addition to COVID-19-related tax relief, the IRS implemented vital online tools to support the 2021 advance CTC payments and reduce child poverty. These online tools included: The Child Tax Credit Non-filer Sign-up Tool, which helped eligible families who were not required to file tax returns register for the monthly payments. The Advance Child Tax Credit Eligibility Assistant, which helped families verify whether they qualified for advance CTC payments. The Child Tax Credit Update Portal, to enable families to verify their eligibility, update their bank account information and mailing address and provide other information to the IRS. Tax administration during COVID-19 At the same time as providing various pandemic-related tax relief measures to Americans, the agency continued its everyday operations, processing more than 261 million tax returns, and collecting more than $4.1 trillion in federal taxes during the fiscal year — about 96% of federal revenue from all sources. Collection revenue Overall, net revenue through enforcement by the collection function equaled almost $60 billion, an increase of 54% over the prior year. As part of its collection activities, the IRS saw an increase in the use of Payment Plans. Almost 2.4 million taxpayers established new payment plans (Installment Agreements) with the IRS during FY 2021, an increase of 29% compared to FY 2020. Furthermore, IRS collected nearly $13.7 billion through installment agreements in 2021, up 9% from the prior fiscal year. Other IRS activities Under the IRS's Comprehensive Taxpayer Attitude Survey, the most recent findings were that most taxpayers still agree that cheating on their income taxes is not at all acceptable. You'll find many fascinating statistics within the Data Book," said Rettig. "But there's more to the IRS than numbers and graphs. IRS employees are dedicated to the mission, and our agency is made up of people who give back to their communities and help one another. Our employees provide significant support for those devastated by hurricanes, wildfires and other natural disasters. Across the nation, they did amazing work in their communities to help those impacted by COVID-19."

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

IR-2022-110, May 25, 2022 WASHINGTON — The Internal Revenue Service today revised frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit (FS-2022-30) 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. Question 15, "Can I elect to use my 2019 earned income to figure my Earned Income Tax Credit for 2021?" was revised. 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/irs-updates-feature-on-wheres-my-refund

Taxpayers can now track refunds for past two years IR-2022-109, May 25, 2022 WASHINGTON — The Internal Revenue Service made an important enhancement to the Where's My Refund? online tool this week, introducing a new feature that allows taxpayers to check the status of their current tax year and two previous years' refunds. Taxpayers can select any of the three most recent tax years to check their refund status. They'll need their Social Security number or ITIN, filing status and expected refund amount from the original filed tax return for the tax year they're checking. Previously, Where's My Refund? only displayed the status of the most recently filed tax return within the past two tax years. Information available to those calling the refund hotline will be limited to the 2021 tax return. Using Where's My Refund?, taxpayers can start checking the status of their refund within: 24 hours after e-filing a tax year 2021 return. Three or four days after e-filing a tax year 2019 or 2020 return. Four weeks after mailing a return. The IRS reminds taxpayers that Online Account continues to be the best option for finding their prior year adjusted gross income, balance due or other type of account information. "We encourage those who expect a refund, but requested an extension, to file as soon as they're ready. We process returns on a first-in basis, so the sooner the better," said IRS Commissioner Chuck Rettig. "There's really no reason to wait until October 17 if filers have the relevant information to file now. Free File is still available for extension recipients to use to prepare and file their federal tax return for free." Electronic filing is open 24/7 and the IRS continues to receive returns and issue refunds. Once taxpayers have filed, they can track their refund with Where's My Refund? About the Where's My Refund? tool This helpful tool, accessible on IRS.gov or the IRS2Go mobile app, allows taxpayers to track their refund through three stages: Return received. Refund approved. Refund sent. The tool is updated once a day, usually overnight, and gives taxpayers a projected refund issuance date as soon as it's approved. It's also one of the most popular online features available from IRS. The Where's My Refund? tool was developed in 2002 and was used by taxpayers more than 776 million times in 2021. Enhancing taxpayer experience & IT modernization The IRS continues to enhance the customer experience by enhancing and expanding digital tools that deliver improved services to taxpayers. "The IRS is committed to identifying opportunities to make improvements in real time for taxpayers and the tax professional community," said Rettig. "This enhancement to Where's My Refund? is just one of many." Additional refund status information There's no need to call the IRS to check on refund status unless it has been more than 21 days since the return was filed or the tool says the IRS can provide more information. If the IRS needs more information to process the return, the taxpayer will be contacted by mail. For more information about checking the status of a tax refund, please visit Where's My Refund?

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

IR-2022-108, May 20, 2022 WASHINGTON, DC — The IRS today issued a revised set of frequently asked questions for the 2021 Child Tax Credit. These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-29PDF, May 20, 2022. These FAQ revisions are as follows: Topic A: General Information: Updated questions 1,2,3,4,5,8,9,10,11,13,14,15,16 Topic E: Advance Payment Process of the Child Tax Credit: Updated questions 2,3 Topic F: Updating Your Child Tax Credit Information During 2021: Removed questions 1,2 and updated 3,4 Topic G: Receiving Advance Child Tax Credit Payments: Updated questions 1,6,7,9,10,11 Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return: Updated questions 1,2,9 and removed 10 Topic J: Unenrolling from Advance Payments: Updated question 1 and removed 2,3,4,5,6,7 Topic K: Verifying Your Identity to View your Payments2021 Child Tax Credit: Updated 2,3,5,6 and removed 7 Topic L: Commonly Asked Shared-Custody Questions: Updated 1 and 2 More information about reliance is available. IRS-FAQ

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

IR-2022-107, May 20, 2022 WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The rates will be: 5% for overpayments (4% in the case of a corporation). 2.5% for the portion of a corporate overpayment exceeding $10,000. 5% for underpayments. 7% 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 three percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points, and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five 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 April 2022 to take effect May 1, 2022, based on daily compounding. Revenue Ruling 2022-11PDF announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2022-23, dated June 6, 2022.

https://www.irs.gov/newsroom/face-to-face-irs-help-without-an-appointment-available-during-special-saturday-opening-on-may-14

IR-2022-106, May 10, 2022 WASHINGTON — Although filing season has come and gone, the Internal Revenue Service recognizes taxpayers still need assistance. To help taxpayers, the IRS today announced many Taxpayer Assistance Centers (TACs) around the country, including Puerto Rico, will be open and offering face-to-face help on Saturday, May 14. This special Saturday help is available from 9 a.m. to 4 p.m., and without an appointment. Normally, TACs are open by appointment only on weekdays. "We're offering Saturday office hours so people can get the help they need," said Taxpayer Experience Officer and IRS Wage & Investment Division Commissioner Ken Corbin. "We recognize and understand not everyone can get to an appointment during normal business hours." The IRS.gov webpage, Contact Your Local IRS Office, lists all TAC services offered during the event and regular office hours. Many have used a Saturday visit to ask about IRS identity protection services, or to request Individual Taxpayer Identification Numbers (ITINs), refunds and payment options. Taxpayers can make payments by check or money order. The IRS will not accept cash during these events. People can also ask about using the IRS's Tax Withholding Estimator, reconciling the advance Child Tax Credit or third-round of Economic Impact Payments. They can inquire about a tax bill, an IRS audit or a TAC's other available services. If assistance is not available from IRS employees specializing in these services, individuals will receive a referral for them. Taxpayer Advocate Service employees may also be available to assist with issues that meet certain criteria. Foreign language interpreters will be available. IRS staff will schedule appointments for a later date for deaf or hard-of-hearing individuals who need sign language interpreter services. Before going to a TAC, Corbin encouraged everyone to visit IRS.gov where they'll find many online resources that are safe, secure, convenient and explain how to prepare for a visit. This information is available in both English and Spanish. "We'd like to help everyone get the most out of their time with us," he said. "Because appointments aren't necessary for these special Saturday hours, wait times can be longer than usual, so plan accordingly and come prepared." Come prepared with paperwork To arrive prepared, individuals should bring the following information: Current government-issued photo identification, Social Security cards for members of their household, including spouse and dependents (if applicable), Any IRS letters or notices received and related documents, and Those who plan to request identity verification services must bring two forms of identification and a copy of the tax return filed for the year in question, if they filed a return. 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. The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. When required by CDC guidance, such as in high transmission counties, it's mandatory for people to wear face masks and social distance at these events. Free tax return services provided at Puerto Rico TAC IRS Volunteer Income Tax Assistance (VITA) community partners will be available at the Guaynabo, Puerto Rico, TAC providing free tax preparation. Additional tax preparation assistance can be found in Puerto Rico by using the VITA/TCE Locator Tool. Puerto Rico residents can enter 00638 in the ZIP Code field, and search in a 100-mile radius to get a list of open sites. Tax return preparation will not be available at any of the other event locations. However, some community partners are still providing free tax preparation services even though the filing season ended April 18. The VITA Locator Tool lists community partners that are still open. Anyone who still needs to file a 2021 federal tax return can use these free, safe and convenient resources: 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. Note: Form 1040-PR, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico (in Spanish))PDF, is not available through IRS Free File. Individuals filing Form 1040-PR can use MyFreeTaxes instead. Free help preparing tax returns is available at any open Volunteer Income Tax Assistance Center or Tax Counseling for the Elderly location site. 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. 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 for the Recovery Rebate Credit Understanding Your IRS Notice or Letter Topic No. 651, Notices – What to Do Topic No. 654, Understanding Your CP75 or CP75A Notice Request for Supporting Documentation Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number ITINPDF  Identity Theft Central

https://www.irs.gov/newsroom/irs-provides-guidance-for-residents-of-puerto-rico-to-claim-the-child-tax-credit

IR-2022-105, May 6, 2022 WASHINGTON — The Internal Revenue Service today issued guidance for certain individuals in Puerto Rico on how to file and claim the Child Tax Credit payments that they are entitled to receive under the American Rescue Plan Act. "It's important for residents of Puerto Rico to know that starting with Tax Year 2021, having only one child qualifies you for the Child Tax Credit," said IRS Commissioner Chuck Rettig. "We want everyone in Puerto Rico who's entitled to this benefit to file to receive the Child Tax Credit." Residents of Puerto Rico must file a federal tax return with the IRS to claim the Child Tax Credit. The credit can be claimed on Form 1040-PR, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia, Form 1040-SS, U.S. Self-Employment Tax Return, Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-PR is a Spanish-language form. Form 1040 and Form 1040-SR have Spanish-language versions. One of these tax returns can be filed to claim the Child Tax Credit even after last month's filing deadline. In fact, families who don't owe taxes to the IRS can 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. Revenue Procedure 2022-22PDF provides details for bona fide residents of Puerto Rico who have children but do not have a 2021 federal tax filing requirement, providing them with a simplified way to file one of these tax returns with the IRS to claim the Child Tax Credit. They may follow one of the simplified procedures announced today if: Their income for taxable year 2021 is completely exempt from taxation because it is from sources within Puerto Rico, Their modified adjusted gross income for purposes of the Child Tax Credit is less than or equal to (i) $150,000, if married and filing jointly or filing as a surviving spouse; (ii) $112,500, if filing as head of household; and (iii) $75,000, if the filer is a single filer or is married and filing a separate return, They are eligible to claim the Child Tax Credit in an amount greater than zero, They are a U.S. citizen or resident alien (or are treated as a United States resident), They are not required to file a Form 1040-PR, Form 1040-SS, Form 1040, or Form 1040-SR for taxable year 2021, such as to report tax on self-employment income, and They have not already filed a paper or electronic Form 1040-PR, Form 1040-SS, Form 1040, or Form 1040-SR for taxable year 2021. The simplified filing procedures direct eligible Form 1040-PR and Form 1040-SS filers to follow the instructions for those forms except that they are not required to report their modified adjusted gross income on line 1 of Part I of the tax return. Eligible Form 1040 and Form 1040-SR filers are directed to follow the instructions for those forms except that they are not required to report their modified adjusted gross income on lines 1 through 3 of Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents. For 2021, the American Rescue Plan increased the Child Tax Credit from $2,000 per qualifying child to: $3,600 for children ages 5 and under at the end of 2021; and $3,000 for children ages 6 through 17 at the end of 2021. The American Rescue Plan also made the credit fully refundable. This means that bona fide residents of Puerto Rico can claim the full amount of the credit for taxable year 2021 even if they had no income and paid no U.S. Social Security taxes. All filers may file a Schedule LEP (Form 1040), Request for Change in Language Preference (also available as Anexo LEP (Formulario 1040(SP)), Solicitud para Cambiar la Preferencia de Idioma), with their tax return to request a change in language preference for further communications from the IRS. For more information, please visit IRS.gov. To search for forms and instructions in Spanish, see Forms, Instructions & Publications.

https://www.irs.gov/newsroom/for-national-small-business-week-special-tax-credit-can-help-employers-hire-workers-key-certification-requirement-applies

IR-2022-104, May 6, 2022 WASHINGTON — With many businesses facing a tight job market, the Internal Revenue Service reminds employers to check out a valuable tax credit available for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment. During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the theme for this year's celebration: "Building a Better America through Entrepreneurship." For any business now hiring, the Work Opportunity Tax Credit may help. What is the WOTC? This long-standing tax benefit encourages employers to hire workers certified as members of any of ten targeted groups facing barriers to employment. With millions of Americans out of work at one time or another since the pandemic began, the IRS notes that one of these targeted groups is long-term unemployment recipients who have been unemployed for at least 27 consecutive weeks and received state or federal unemployment benefits during part or all of that time. The WOTC is available for wages paid to certain individuals who begin work on or before December 31, 2025. The other groups include certain veterans and recipients of various kinds of public assistance, among others. Specifically, the 10 groups are: Temporary Assistance for Needy Families (TANF) recipients, Unemployed veterans, including disabled veterans, Formerly incarcerated individuals, Designated community residents living in Empowerment Zones or Rural Renewal Counties, Vocational rehabilitation referrals, Summer youth employees living in Empowerment Zones, Supplemental Nutrition Assistance Program (SNAP) recipients, Supplemental Security Income (SSI) recipients, Long-term family assistance recipients and Long-term unemployment recipients. Qualifying for the credit To qualify for the credit, an employer must first request certification by submitting IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency (SWA). It must be submitted to the SWA within 28 days after the eligible worker begins work. Employers should not submit Form 8850 to the IRS. Helping new hires Since many new hires may lack workplace experience, one way that employers can help these workers get off to a good start is to make sure they have the right amount of tax taken out of their pay. A great way to do that is to encourage them to use the Tax Withholding Estimator, a free online tool available on IRS.gov. By filling in a few key pieces of information, an employee can use the Tax Withholding Estimator to estimate the right amount of tax to have taken out of their pay. Among other things, this online tool can help them see how withholding affects their take-home pay, expected refund or tax due. The Tax Withholding Estimator will also help them correctly fill out Form W-4, Employee's Withholding Certificate. The employee gives this form to their employer, not the IRS. Once an employee has been on the payroll for a while, they can also use this tool to update their withholding to reflect important life changes, such as getting married, getting divorced or having a child. The Tax Withholding Estimator can also be a useful tool for existing employees by helping them avoid a year-end tax surprise. For more information, visit IRS.gov/withholding. Claiming the credit Eligible businesses then claim the WOTC on their federal income tax return. It is generally based on wages paid to eligible workers during the first year of employment. This is a one-time credit for each new hire and an employer cannot claim the WOTC for employees who are rehired. The credit is first figured on Form 5884, Work Opportunity Credit, and then claimed on Form 3800, General Business Credit. Though the credit is not available to tax-exempt organizations for most groups of new hires, a special rule allows them to claim the WOTC for hiring qualified veterans. These organizations claim the credit against payroll taxes on Form 5884-C, Work Opportunity Credit for Qualified Tax Exempt Organizations Hiring Qualified Veterans. Additionally, see the LB&I and SB/SE Joint Directive on the WOTC the IRS issued to help certain employers affected by extended delays in the WOTC certification process.

https://www.irs.gov/newsroom/national-small-business-week-e-file-the-best-way-to-report-payroll-taxes

IR-2022-103, May 5, 2022 WASHINGTON – The Internal Revenue Service today urged small businesses to take advantage of the accuracy, speed and convenience of filing their payroll tax returns and making tax payments electronically. During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the theme for this year's celebration: "Building a Better America through Entrepreneurship." Filing and paying taxes electronically helps entrepreneurs leave more time for what they really want to do—build their businesses. What are payroll taxes? Also known as employment taxes, payroll taxes include federal income tax withheld from employee wages, as well as both the employer and employee portions of Social Security and Medicare taxes. In addition, payroll taxes include the Federal Unemployment Tax, also known as FUTA, which most employers need to pay but is not withheld from employee wages. In some cases, backup withholding applies to payments made to nonemployees, usually because the recipient failed to provide their correct Taxpayer Identification Number (TIN), to the business making the payments. A TIN can be either a social security number, employer identification number or individual taxpayer identification number. For more information about backup withholding see Tax Topic No. 307. Why e-file? All of the returns reporting these taxes can either be filed electronically or on paper. Though the number of payroll tax returns e-filed has grown steadily in recent years—more than doubling in the last decade alone, more than 40% of them are still filed on paper. Paper filers are missing out on all the advantages of electronic filing. E-file saves time, and it's secure and accurate. Plus, the IRS acknowledges receipt of an electronically filed return within 24 hours. That doesn't happen with paper filing. It's much easier to make a mistake on paper. With electronic filing, any mistake is often discovered and fixed quickly. With paper filing, it may take weeks or even months to discover and correct a mistake. How to e-file Employers have two options: Do it themselves or have a tax pro do it for them. Those choosing to do it themselves will need to purchase IRS-approved software. Alternatively, the Authorized IRS e-file Providers Locator Service, an online database, can help any employer find a suitable tax professional. For more information about both options, visit IRS.gov/employmentefile. Pay taxes electronically Though some employers, especially those with small payrolls, can choose to pay their taxes when they file their payroll tax returns, most need to deposit them regularly with the Treasury Department instead. Federal tax deposits must be made by electronic funds transfer (EFT). The fastest and easiest way to do that is through the Electronic Federal Tax Payments System (EFTPS), a free service available from the Treasury Department. Payments can be made either online or by phone. Any business or individual can also use EFTPS to pay other federal taxes, including quarterly estimated taxes. Enrollment is required. To enroll or for more information, visit EFTPS.gov or call 800-555-4477 or TDD: 800-733-4829. More information about the tax rules that apply to employers can be found in Publication 15, (Circular E), Employer's Tax Guide, available on IRS.gov.

https://www.irs.gov/newsroom/ahead-of-hurricane-season-irs-offers-tips-on-ways-to-prepare-for-natural-disasters

IRS YouTube Videos Preparing for Disasters | ASL IR-2022-102, May 5, 2022 WASHINGTON —The Internal Revenue Service reminded taxpayers today that May includes National Hurricane Preparedness Week and is National Wildfire Awareness Month . This is a good time to create or review an emergency preparedness plan, including steps to protect important tax-related information. In 2021, the Federal Emergency Management Agency (FEMA) declared major disasters following hurricanes, tropical storms, tornados, severe storms, straight-line winds, flooding, landslides and mudslides, wildfires and winter storms. Given the impact these events can have on individuals, organizations and businesses, now is the time to make or update an emergency plan. The following tips are intended to help taxpayers prepare for a natural disaster. Secure key documents and make copies Taxpayers should place original documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers in a secure space. Duplicates of these documents should be kept with a trusted person outside the area of the taxpayer. Scanning them for backup storage on electronic media such as a flash drive is another option that provides security and portability. Document valuables and equipment Current photos or videos of a home or business's contents can help support claims for insurance or tax benefits after a disaster. All property, especially expensive and high value items, should be recorded. The IRS disaster-loss workbooks in Publication 584 can help individuals and businesses compile lists of belongings or business equipment. Employers should check fiduciary bonds Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider. The IRS reminds employers to carefully choose their payroll service providers. Rebuilding documents Reconstructing records after a disaster may be required for tax purposes, getting federal assistance or insurance reimbursement. Those who have lost some or all their records during a disaster can visit IRS's Reconstructing Records webpage as one of their first steps. IRS stands ready to help After FEMA issues a disaster declaration, the IRS may postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. There is no need to call the IRS to request this relief. The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. Those impacted by a disaster with tax-related questions can contact the IRS at 866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues. Taxpayers who do not reside in a covered disaster area but suffered impact from a disaster should call 866-562-5227 to find out if they qualify for disaster tax relief and to discuss other available options. Find complete disaster assistance and emergency relief details for both individuals and businesses on our Around the Nation webpage on IRS.gov. The FEMA Prepare for Disasters webpage includes information to Build a Kit of emergency supplies. Related items: Publication 547, Casualties, Disasters, and TheftsPDF Publication 583, Starting a Business and Keeping Records FS-2017-11, Reconstructing Records After a Natural Disaster or Casualty Loss Small Business Administration DisasterAssistance.gov Ready.gov

https://www.irs.gov/newsroom/national-small-business-week-making-estimated-tax-payments-electronically-is-fast-and-easy

IRS YouTube Videos  Estimated Tax Payments  | ASL IR-2022-101, May 4, 2022 WASHINGTON — The Internal Revenue Service reminds all businesses, including self-employed and gig workers, to make estimated tax payments quarterly, and that making them electronically is fast, easy and safe. During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the theme for this year's celebration: "Building a Better America through Entrepreneurship." Paying estimated tax payments quarterly throughout the year is important for business owners. Individuals and businesses alike are required to pay taxes as income is earned or received throughout the year, either through withholding or estimated tax payments. That's why those who are self-employed or in the gig economy usually need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax. If a taxpayer doesn't pay enough tax through withholding and estimated tax payments, they may be charged a penalty. They also may be charged a penalty if estimated tax payments are late, even if the taxpayer is due a refund when they file their tax return. However, generally, paying quarterly estimated taxes will lessen or even eliminate any penalties. Estimated tax requirements are different for farmers, fishers and certain higher income taxpayers. In addition, special rules apply to some groups of taxpayers, such as casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. Publication 505, Tax Withholding and Estimated Tax, provides more information about these special estimated tax rules. Who must pay estimated tax Individuals, including sole proprietors, partners, and S corporation shareholders, generally must make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Corporations generally must make estimated tax payments if they expect to owe tax of $500 or more when their return is filed. Taxpayers may have to pay estimated tax for the current year if their tax was more than zero in the prior year. See the worksheet in Form 1040-ES, Estimated Tax for Individuals, or Form 1120-W, Estimated Tax for Corporations, for more details on who must pay estimated tax. Who does not have to pay estimated tax Self-employed people and gig workers who also receive salaries and wages from an employer can generally avoid having to pay estimated tax by asking their employer to withhold more tax from their paycheck. This usually requires the filing of a new Form W-4, Employee's Withholding Certificate, with the employer. A special line on Form W-4 allows a taxpayer to enter an additional amount to be withheld. Taxpayers receiving a paycheck can check the Tax Withholding Estimator on IRS.gov to determine if the right amount of tax is being withheld from their paycheck. Also, individuals don't have to pay estimated tax for the current year if they meet all three of the following conditions: No tax liability for the prior year, U.S. citizen or resident for the whole year and The prior tax year covered a 12-month period. An individual has no tax liability for the prior year if their total tax was zero or they didn't have to file an income tax return. Additional information on how to figure estimated tax is available in Publication 505, Tax Withholding and Estimated Tax. How to figure estimated tax Individuals, including sole proprietors, partners and S corporation shareholders, generally use Form 1040-ES, Estimated Tax for Individuals, to figure estimated tax. To figure estimated tax, individuals must figure their expected adjusted gross income, taxable income, taxes, deductions and credits for the year. When figuring estimated tax for the current year, taxpayers will often find it helpful to use income, deductions and credits from the prior year as a starting point. Corporations generally use Form 1120-W, Estimated Tax for Corporations, to figure estimated tax. When and how to pay estimated tax For estimated tax purposes, the year is divided into four payment periods. However, some taxpayers may find it easier to pay estimated taxes weekly, bi-weekly or monthly. Alternative payment periods are allowed if enough tax is paid in by the end of the quarter. Using an electronic payment option available on IRS.gov/payment is the easiest way for individuals, small businesses, self-employed individuals and gig workers to pay federal taxes. It's fast, easy and secure. Taxpayers can use the EFTPS for all their federal tax payments, including federal tax deposits, installment agreement payments and estimated tax payments. In addition, by using the EFTPS, taxpayers can access a history of their payments, so they know how much and when the payments were made. Individual Taxpayers can create an IRS Online Account to make their estimated tax payments. Using their account, taxpayers can see their payment history, any pending payments and other useful tax information. Individual taxpayers can also make an estimated tax payment by using IRS Direct Pay. Individual and Business Taxpayers can also make an estimated tax payment by using debit, credit card or digital wallet. The 2022 Form 1040-ES, Estimated Tax for Individuals, can help taxpayers estimate their first quarterly tax payment. While electronic filing is strongly encouraged, taxpayers may also send estimated tax payments with Form 1040-ES by mail. Corporations must deposit payments using EFTPS. Additional information is available in Publication 542, Corporations. 24/7 help at IRS.gov Small business owners, self-employed individuals and gig workers will find valuable resources at IRS.gov available 24/7. The resources include publications, forms, tax products and tips to help small business owners avoid tax troubles and succeed. The IRS is also reaching out to taxpayers in other languages through online resources for small businesses and individuals. The IRS has posted translated tax resources in 20 languages on IRS.gov. For more information see We Speak Your Language. Resources: Small Business Tax Workshop: Eight interactive lessons designed to help new small business owners learn their tax rights and responsibilities. (The workshop is available in English, Spanish, Chinese-Simplified, Chinese-Traditional, Korean, Russian, Vietnamese and Haitian Creole.) More information about the workshop is available on the IRS YouTube channel.  Self-Employed Individuals Tax Center: A resource for sole proprietors and others who are in business for themselves. This site has many useful tips and references to tax rules a self-employed person may need to know. (The Center is available in English, Spanish, Vietnamese, Chinese (Traditional), Chinese (Simplified), Korean, Russian and Haitian-Creole.) Small Business and Self-Employed Tax Center: Features links to a variety of useful tools, a downloadable tax calendar and common forms with instructions. (The Center is available in English, Spanish, Vietnamese, Chinese (Simplified), Chinese (Traditional), Korean, Russian and Haitian Creole.) E-News for Small Businesses: A free electronic mail service that offers tax information for small business owners and self-employed individuals, including reminders, tips and special announcements. Gig Economy Tax Center: Helps people quickly find answers to tax questions, as well as helpful tips and tax forms for business taxpayers. (The Center is available in English, Spanish, Vietnamese, Chinese (Simplified), Chinese (Traditional), Korean, Russian and Haitian Creole.) Social media channels: Information for small businesses is also available through various IRS social media channels, including tax tips and other resources.

https://www.irs.gov/newsroom/for-national-small-business-week-plan-now-to-take-advantage-of-tax-benefits-for-2022-enhanced-deduction-for-business-meals-home-office-deduction-and-more

IR-2022-100, May 3, 2022 WASHINGTON — The Internal Revenue Service today urged business taxpayers to begin planning now to take advantage of the enhanced 100% deduction for business meals and other tax benefits available to them when they file their 2022 federal income tax return. During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the theme for this year's celebration: "Building a Better America through Entrepreneurship." With next year's filing deadline nearly a year away, any entrepreneur still has time to identify possible tax benefits, take action to qualify for them and then claim them when they file in 2023. Enhanced business meal deduction For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal. To qualify for the higher limit, the business owner or an employee of the business must be present when food or beverages are provided. Moreover, the expense cannot be lavish or extravagant. Restaurants include businesses that prepare and sell food or beverages to retail customers for immediate on-premises or off-premises consumption. For this purpose, grocery stores, convenience stores and other businesses that primarily sell pre-packaged goods not for immediate consumption, do not qualify as restaurants. Additionally, an employer may not treat certain employer-operated eating facilities as restaurants, even if they are operated under contract by a third party. For more information about this provision, as well as details on the special recordkeeping rules that apply to business meals, see IRS Publication 463, Travel, Gift, and Car Expenses. Home office deduction With a growing number of business owners now working from home, many may qualify for the home office deduction, also known as the deduction for business use of a home. Usually, a business owner must use a room or other identifiable portion of the home exclusively for business on a regular basis. Exceptions to the exclusive-use standard apply to home-based daycare facilities and to portions of the home used for business storage, where the home is the only fixed location for that business. Those eligible can figure the deduction using either the regular method or the simplified method. To choose the regular method, fill out and attach Form 8829, Expenses for Business Use of Your Home. In general, this form divides the expenses of operating the home between personal and business use. Direct business expenses are fully deductible. On the other hand, the business portion of indirect expenses, such as real estate taxes, mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs, is figured on this form, based on the percentage of the home used for business. Alternatively, instead of filling out the 44-line Form 8829, business owners can choose the simplified method, based on a 6-line worksheet found in the instructions to Schedule C, the tax form for sole proprietors. This method has a prescribed rate of $5 a square foot for business use of the home. The maximum deduction is $1,500, based on business use of at least 300 square feet. Though homeowners choosing the simplified option cannot depreciate the portion of their home used for business, they can still claim allowable home mortgage interest, real estate taxes and casualty losses as itemized deductions on Schedule A. These deductions need not be allocated between personal and business use, as is required under the regular method. Business expenses unrelated to the home, such as advertising, supplies and wages paid to employees, are still fully deductible. Under both the regular and simplified methods, business expenses in excess of the gross income limitation are not deductible. For more information about this limit along with other details on the home office deduction and both methods for figuring it, see Publication 587, Business Use of Your Home. Other tax benefits From business start-up expenses to the qualified business income deduction to the health-insurance deduction for self-employed individuals, there are a variety of other tax benefits that are often available to entrepreneurs and other business owners. For details on these and other tax benefits, see Publication 535, Business Expenses. Details on another major expense for most businesses, depreciation of buildings, equipment and other assets, can be found in Publication 946, How to Depreciate Property. Yet another worthwhile resource for any small business is the agency's Tax Guide for Small Business, Publication 334. All these publications are available on IRS.gov.

https://www.irs.gov/newsroom/low-income-taxpayer-clinic-2023-grant-application-period-now-open-national-taxpayer-advocate-calls-for-applicants-looking-to-serve-their-communities-and-uphold-taxpayer-rights

IR-2022-99, May 2, 2022 WASHINGTON — The Internal Revenue Service today announced the opening of the application period for Low Income Taxpayer Clinic (LITC) matching grants for calendar year 2023. Applications will be accepted from May 2 to June 16, 2022. The LITC Program is a federal grant program administered by the Taxpayer Advocate Service (TAS), which is led by National Taxpayer Advocate (NTA) Erin M. Collins. "LITCs are often the last resort for taxpayers who have nowhere else to turn, said National Taxpayer Advocate Erin M. Collins in a recent blog. "Through their powers of persuasion and vociferous advocacy, the employees and volunteers at LITCs help ensure justice and uphold taxpayer rights for thousands of taxpayers across the country. You can serve your community in a meaningful way by applying for an LITC grant." Under Internal Revenue Code (IRC) Section 7526, the IRS awards matching grants up to $100,000 per year to qualifying organizations to develop, expand or maintain an LITC. An LITC must provide services for free or for no more than a nominal fee (except for reimbursement of actual costs incurred). Although LITCs receive partial funding from the IRS, LITCs, their employees and volunteers are independent from the IRS. Qualified organizations that are 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 on their behalf 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. The IRS is committed to achieving maximum access to representation for taxpayers under the terms of the LITC Program. In awarding LITC grants for calendar year 2023, the IRS will continue to work toward providing coverage nationwide. Although the IRS welcomes all applicants and will give each application due consideration, the IRS is particularly interested in applications from organizations in the following underserved geographic areas and counties that have limited or no LITC services. Underserved geographic areas include: Arizona – Apache, Coconino and Navajo Florida – Baker, Bradford, Brevard, Citrus, Clay, Columbia, Dixie, Duval, Flagler, Hamilton, Hernando, Lafayette, Lake, Madison, Nassau, Orange, Osceola, Seminole, St. John's, Sumter, Suwanee, Taylor and Volusia Idaho – Ada, Adams, Bannock, Bear Lake, Bingham, Boise, Bonneville, Butte, Canyon, Caribou, Clark, Clearwater, Custer, Franklin, Freemont, Gem, Idaho, Jefferson, Latah, Lemhi, Lewis, Madison, Nez Perce, Oneida, Owyhee, Payette, Power, Teton, Valley and Washington Montana – Entire state Nevada – Entire state North Carolina – Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gates, Granville, Greene, Guilford, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Sampson, Scotland, Stokes, Tyrrell, Vance, Wake, Warren, Washington, Wayne and Wilson North Dakota – Entire state Pennsylvania – Bradford, Clinton, Monroe, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Union and Wyoming Puerto Rico – Entire territory LITC grants are funded by federal appropriations. The clinics, their employees and their volunteers operate independently of the IRS. Examples of qualifying organizations include: Clinical programs at accredited law, business or accounting schools whose students represent low-income taxpayers in tax disputes with the IRS. Organizations exempt from tax under IRC Section 501(a) whose employees and volunteers represent or refer for representation low-income taxpayers in tax disputes with the IRS. The IRS is authorized to award multi-year grants not to exceed three years. For an organization not currently receiving a grant for 2022, an organization that received a single-year grant for 2022 or an organization whose multi-year grant ends in 2022, the organization must electronically submit a full grant application. An organization currently receiving a grant for 2022 that is requesting funding for the second or third year of a multi-year grant must electronically submit a request for continued funding. All organizations must use the funding number TREAS-GRANTS-052023-001. Both full applications and non-competing continuation requests must be submitted by 11:59 p.m. Eastern Time on June 16, 2022. Contact the LITC Program Office at 202-317-4700 (not a toll-free call) or by email at litcprogramoffice@irs.gov for general questions about the LITC Program or grant application process. In addition, applicants with specific questions may contact Bill Beard by email. 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 2021 Program ReportPDF. A complete overview of the requirements to be an LITC can be found in Publication 3319, LITC Grant Application Package and GuidelinesPDF. A short video about the LITC program is also available. Interested applicants may join LITC Program Office staff for a webinar, where staff will provide information about the LITC Program and the application process. For details on the date and time of the webinar, please check the LITC page on the TAS website.

https://www.irs.gov/newsroom/irs-recognizes-small-business-week-information-and-free-resources-for-starting-a-business

IRS YouTube Videos IRS Small Business Self-Employed Tax Center |  ASL  IR-2022-98, May 2, 2022 WASHINGTON — During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the Small Business Administration theme for this year's celebration: "Building a Better America through Entrepreneurship." During National Small Business Week, the Internal Revenue Service wants taxpayers to know there are free resources on IRS.gov for those that are starting a business. Small businesses play a pivotal role in the nation's economy. The IRS has a variety of resources available to help employers meet their tax responsibilities as well as help their employees. Selecting a business structure When beginning a business, taxpayers must decide what form of business entity to establish. The form of business determines which income tax return form must be filed. The most common business structures are: Sole proprietorship - When someone owns an unincorporated business by themselves. Partnerships - The relationship between two or more people to do trade or business. Corporations - In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. S Corporations - Are corporations that elect to pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes. Limited Liability Company (LLC) – Are allowed by state statute and may be subject to different regulations. The IRS will treat an LLC as either a corporation, partnership, or as part of the owner's tax return (e.g., sole proprietorship) depending on elections made by the LLC and its number of members. Understanding business taxes The form of business being operated determines what taxes must be paid and how to pay them. The following are the four general types of business taxes: Income tax - All businesses except partnerships must file an annual income tax return. Partnerships file an information return. Self-employment tax - Is a social security and Medicare tax primarily for individuals who work for themselves. Payments contribute to the individual's coverage under the social security system. Employment tax - When small businesses have employees, the business has certain employment tax responsibilities that it must pay and forms it must file. Excise tax – Excise taxes are imposed on various goods, services and activities. Such taxes may be imposed on the manufacturer, retailer or consumer, depending on the specific tax. Note: Generally, business owners must pay taxes on income, including self-employment tax, by making regular payments of estimated tax during the year. Knowing when to get an Employer Identification Number (EIN) An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number and is used to identify a business entity. Generally, businesses need an EIN. This is a free service offered by the Internal Revenue Service and business owners can get their EIN immediately. Keeping good records Maintaining adequate records will help small businesses monitor their progress, prepare financial statements, identify sources of income, keep track of deductible expenses, keep track of their basis in property, prepare their tax returns and support items reported on their tax returns. Taxpayers should maintain their records for at least 3 years. Choosing the business year Small businesses must figure their taxable income on the basis of a tax year. A "tax year" is an annual accounting period for reporting income and expenses. Tax years small businesses can use are: Calendar year – 12 consecutive months beginning January 1 and ending December 31. Fiscal year– 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. More information Small Business and Self-Employed Tax Center Hobby or Business? IRS Offers Tips to Decide Small Business Tax Workshop 10 steps to start your business Industries, Professions and Business Tax Centers

https://www.irs.gov/newsroom/electronic-tax-administration-advisory-committee-issues-annual-report-to-congress

IR-2022-133, June 29, 2022 WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) today released its annual report to Congress, featuring recommendations focused on budget support for the Internal Revenue Service and enhancements to e-filing. "The entire IRS leadership team appreciates the work that ETAAC's volunteer members have put into their annual report, and we look forward to reviewing their recommendations," said IRS Commissioner Chuck Rettig. The 2022 report groups a total of five recommendations into two sections: recommendations to Congress and recommendations to the IRS. The recommendations to Congress include: Provide the IRS with flexible, sustainable, predictable, multi-year funding. Provide both budgetary and legislative support that allows the IRS to leverage its successes to deliver the level of services that taxpayers expect and deserve. The recommendations to the IRS include: Implement enhancements to Modernized e-File that remove impediments to e-filing, with appropriate security features, taxpayer consent and acknowledgements. Promote the use of identity protection PIN through a national, year-long campaign, leveraging stakeholders including the tax and financial services industries, to highlight the benefits of the program. Work collaboratively with states and software providers to develop a long-term roadmap for Payroll and Information Return Modernization. The full 2022 reportPDF is available on IRS.gov. At today's annual meeting, Rettig and IRS leaders thanked five members of the committee ending their terms this year: Latryna Carlton, founder and president of Committed Citizens of Waverly in Waverly, Fla. Daniel Eubanks, director for Federal Government Relations at Intuit. Larry Gray, certified public accountant in Missouri with Alfermann Gray & Co. John Kreger, vice president of product management at Sovos. Julie Magee, tax regulatory affairs lead at Cash App Taxes, Inc. The ETAAC is a public forum whose members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation's tax industry established in 2015 to fight tax-related identity theft and cybercrime. ETAAC members represent various segments of the tax community, including individual and business taxpayers, tax professionals and preparers, tax software developers, payroll service providers, the financial industry and state and local governments.

https://www.irs.gov/newsroom/irs-issues-superfund-chemical-excise-tax-rates

IR-2022-132, June 24, 2022 WASHINGTON — The Internal Revenue Service announced today that it has prescribed tax rates for 121 taxable substances that are subject to the Superfund chemical excise tax imposed by section 4671(a) of the Internal Revenue Code (Code). Taxable substances are those substances listed in either section 4672(a)(3) of the Code or Notice 2021-66. Substances may be added or removed from the list of taxable substances at a later date. The rates will be included in the instructions to Form 6627, Environmental Taxes, and under Recent Developments for Form 6627, Environmental Taxes. Taxable Substance Tax Rate per Ton 1,3-butylene glycol  $ 7.28 1,4 butanediol  $ 4.68 1,5,9-cyclododecatriene  $ 9.74 2-ethyl hexanol  $ 7.16 2-ethylhexyl acrylate  $ 7.34 acetone  $ 20.06 acetylene black  $ 10.52 acrylic acid resins  $ 5.65 methacrylic acid resins  $ 14.94 acrylonitrile  $ 9.38 adipic acid  $ 6.13 adiponitrile  $ 8.57 allyl chloride  $ 10.38 alpha-methylstyrene  $ 9.93 ammonium nitrate  $ 1.49 aniline  $ 9.40 benzaldehyde  $ 8.47 benzoic acid  $ 7.31 bisphenol-A  $ 10.23 butanol  $ 6.31 butyl acrylate  $ 6.84 butyl benzyl phthalate  $ 12.15 carbon tetrachloride  $ 10.62 chlorinated polyethylene  $ 10.25 chloroform  $ 10.51 chromic acid  $ 4.37 cumene  $ 9.74 cyclododecanol  $ 9.05 cyclohexane  $ 10.02 decabromodiphenyl oxide  $ 17.99 di-2 ethyl hexyl phthalate  $ 7.37 diethanolamine  $ 6.01 diglycidyl ether of bisphenol-A  $ 13.86 diisopropanolamine  $ 12.76 dimethyl terephthalate  $ 5.91 dimethyl-2, 6-naphthalene dicarboxylate  $ 6.81 di-n-hexyl adipate  $ 8.23 diphenyl oxide  $ 13.73 diphenylamine  $ 10.28 epichlorohydrin  $ 12.89 ethyl acrylate  $ 4.09 ethyl alcohol for nonbeverage use  $ 5.94 ethyl chloride  $ 4.52 ethyl methyl ketone  $ 7.60 ethyl benzene  $ 9.74 ethylene dibromide  $ 9.03 ethylene dichloride  $ 6.62 ethylene glycol  $ 4.38 ethylene oxide  $ 6.23 ferrochrome ov 3 pct. carbon  $ 4.83 ferrochromium nov 3 pct  $ 4.83 hexabromocyclododecane  $ 9.11 hexamethylenediamine  $ 8.93 isobutyl acetate  $ 4.47 Isophthalic acid  $ 6.23 isopropyl acetate  $ 4.54 Isopropyl alcohol  $ 6.82 linear alpha olefins  $ 9.74 maleic anhydride  $ 5.75 melamine  $ 4.28 methyl acrylate  $ 5.39 methyl chloroform  $ 6.37 methyl isobutyl ketone  $ 23.65 methyl methacrylate  $ 14.75 methylene chloride  $ 10.33 monochlorobenzene  $ 10.12 monoethanolamine  $ 5.96 monoisopropanolamine  $ 11.74 nickel oxide  $ 7.03 normal butyl acetate  $ 4.47 normal propyl acetate  $ 3.73 nylon 6/6  $ 8.67 ortho-dichlorobenzene  $ 10.35 ortho-nitrochlorobenzene  $ 7.49 para-dichlorobenzene  $ 10.35 para-nitrochlorobenzene  $ 7.49 para-nitrophenol  $ 8.59 pentaerythritol  $ 3.86 perchloroethylene  $ 10.89 phenol  $ 12.47 phenolic resins  $ 9.86 phosphorous pentasulfide  $ 2.49 phosphorous trichloride  $ 6.21 phthalic anhydride  $ 7.01 poly 1,4 butyleneterephthalate  $ 7.21 poly(propylene)glycol  $ 10.38 poly(propylene/ethylene)glycol  $ 8.84 poly(propyleneoxy)sucrose  $ 2.04 poly(propyleneoxy/ethyleneoxy)sucrose  $ 2.57 polyalphaolefins  $ 11.37 polybutadiene  $ 9.74 polybutene  $ 9.74 polybutylene  $ 9.74 polybutylene/ethylene  $ 9.74 polycarbonate  $ 10.84 polyethylene resins, total  $ 9.74 polyethylene terephthalate pellets  $ 6.82 polypropylene  $ 9.74 polypropylene resins  $ 9.74 polystyrene homopolymer resins  $ 9.93 polyvinylchloride resins  $ 7.46 propanol  $ 5.47 propylene glycol  $ 10.38 propylene oxide  $ 13.60 styrene  $ 9.93 styrene-butadiene, latex  $ 9.84 synthetic linear fatty alcohol ethoxylates  $ 7.12 synthetic linear fatty alcohols  $ 9.29 terephthalic acid  $ 6.23 tetrabromobisphenol-A  $ 14.79 tetrachlorophthalic anhydride  $ 8.95 tetrahydrofuran  $ 5.78 toluene diisocyanate  $ 10.85 toluenediamine  $ 9.18 trichloroethylene  $ 10.79 triethanolamine  $ 6.04 triisopropanolamine  $ 12.84 trimethylolpropane  $ 4.63 urea  $ 3.01 vinyl acetate  $ 3.83 vinyl chloride  $ 7.46

https://www.irs.gov/newsroom/irs-issues-faqs-on-the-reinstated-superfund-chemical-excise-tax-to-assist-affected-taxpayers

IR-2022-131, June 24, 2022 WASHINGTON — The Internal Revenue Service today issued frequently asked questions (FAQs) regarding the reinstated Superfund chemical excise tax to help those taxpayers who may be impacted and tax professionals. These FAQs detail what the Superfund chemical excise tax is, how the tax is computed and who may be liable for the tax. The Superfund chemical taxes will be reported on Form 720, Quarterly Federal Excise Tax Return, and Form 6627, Environmental Taxes. The excise taxes imposed on certain chemicals and imported chemical substances were reinstated beginning on July 1, 2022, under the Infrastructure Investment and Jobs Act (IIJA). There are two separate Superfund chemical excise taxes: a tax on the sale or use of "taxable chemicals" and a tax on the sale or use of imported "taxable substances." Specifically, the reinstated taxes impose an excise tax on the sale or use of a taxable chemical by the manufacturer, producer or importer of the taxable chemical. They also impose an excise tax on the sale or use of a taxable substance by the importer of the taxable substance. These FAQs provide general information. At the time of publication of these FAQs, 151 substances are listed as taxable substances. That number will likely change as substances are added to or removed from the list of taxable substances. More information can be found at Excise Tax on IRS.gov. IRS-FAQ

https://www.irs.gov/newsroom/irs-taxpayers-now-have-more-options-to-correct-amend-returns-electronically

IR-2022-130, June 23, 2022 WASHINGTON — The Internal Revenue Service announced today that more forms can now be amended electronically. These include people filing corrections to the Form 1040-NR, U.S. Nonresident Alien Income Tax Return and Forms 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) and Forms 1040-PR, Self-Employment Tax Return – Puerto Rico. "This initiative has come a long way from 2020 when we first launched the ability to file amended returns, which was an important milestone to help taxpayers and the tax community," said IRS Commissioner Chuck Rettig. "This new feature will further help people needing to make corrections. This development will also assist the IRS with its inventory work on the current backlog of amended returns. This is another tool we're using to help get us back on track." Additionally, a new, electronic checkbox has been added for Forms 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being filed electronically. A superseded return is one that is filed after the originally filed return but submitted before the due date, including extensions. Taxpayers can also amend their return electronically if there is change to their filing status or to add a dependent who was previously claimed on another return. About 3 million Forms 1040-X are filed by taxpayers each year. Taxpayers can still use the Where's My Amended Return? online tool to check the status of their electronically-filed Form 1040-X. Forms 1040 and 1040-SR can still be amended electronically for tax years 2019, 2020 and 2021 along with amended Form 1040-NR and corrected Forms 1040-SS and Form 1040-PR for tax year 2021. In general, taxpayers still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form. The IRS continues to look at this important area, and more enhancements are planned for the future.

https://www.irs.gov/newsroom/national-taxpayer-advocate-issues-midyear-report-to-congress-expresses-concern-about-continued-refund-delays-and-poor-taxpayer-service

IR-2022-129, June 22, 2022 WASHINGTON — National Taxpayer Advocate Erin M. Collins today released her statutorily mandated midyear report to Congress. The report expresses concern about continuing delays in the processing of paper-filed tax returns and the consequent impact on taxpayer refunds. At the end of May, the agency had a backlog of 21.3 million unprocessed paper tax returns, an increase of 1.3 million over the same time last year. "The IRS has said it is aiming to crush the backlogged inventory this year, and I hope it succeeds," Collins wrote. "Unfortunately, at this point the backlog is still crushing the IRS, its employees, and most importantly, taxpayers. As such, the agency is continuing to explore additional processing strategies." The report points out that the significant majority of individual taxpayers receive refunds. "At the end of the day, a typical taxpayer cares most about receiving his or her refund timely," Collins wrote. "Particularly for lower income taxpayers who receive Earned Income Tax Credit benefits, tax refunds may constitute a significant percentage of their household income for the year. Thus, these processing delays are creating unprecedented financial difficulties for millions of taxpayers and outright hardships for many." Among business taxpayers, many have been waiting extended periods to receive Employee Tax Retention Credits for which they are eligible, in addition to their regular refunds. Key taxpayer challenges this year have included return processing delays, correspondence processing delays, and difficulty reaching the IRS by phone. Backlog of Unprocessed Paper Tax Returns More than 90% of individual income taxpayers e-file their returns, yet last year, about 17 million taxpayers filed their returns on paper. Some choose to file on paper. Some have no choice because they encounter e-filing barriers, such as when they are required to file a tax form or schedule the IRS cannot accept electronically. Before the pandemic, the IRS typically delivered refunds to paper-filers within four to six weeks. Over the past year, refund delays on paper-filed returns have generally exceeded six months, with delays of 10 months or more common for many taxpayers. The report says the IRS has failed to make progress in eliminating its paper backlog because "its pace of processing paper tax returns has not kept up with new receipts." During the month of May, the IRS processed an average of about 205,000 individual income tax returns (Forms 1040) per week. Its Form 1040 backlog at the end of May stood at 8.2 million, with millions more paper tax returns not yet classified or expected to arrive before the extended filing deadline of October 15. The report says the IRS would have to process well over 500,000 Forms 1040 per week – more than double its current pace – to eliminate the backlog this year. "The math is daunting," the report says. Forms 1040 are just one component of the paper tax returns processing backlog. Millions of business tax returns and amended tax returns (both individual and business) are also filed on paper. The overall backlog has increased by 7% over the past year as shown in the Figure 1. Figure 1: Status of Unprocessed Paper Tax Returns Comparing Weeks Ending May 22, 2021, and May 27, 2022 Paper Returns Awaiting Processing – 2021 Individual Business Not Specified Total Original Returns 6,100,000 5,600,000 5,100,000 16,800,000 Amended Returns 2,700,000 500,000 — 3,200,000 Total Paper Returns Awaiting Processing 8,800,000 6,100,000 5,100,000 20,000,000 Paper Returns Awaiting Processing – 2022 Individual Business Not Specified Total Original Returns 8,200,000 6,500,000 3,400,000 18,200,000 Amended Returns 2,300,000 900,000 — 3,200,000 Total Paper Returns Awaiting Processing 10,500,000 7,400,000 3,400,000 21,300,000 The IRS has publicly committed to reducing its paper tax return backlog to a "healthy" level by the end of the year, but it has not provided a definition of "healthy." "Historically, the IRS has paid refunds resulting from paper-filed returns within four to six weeks," Collins wrote. "From a taxpayer perspective, returning to a four-to-six-week refund delivery period is a reasonable definition of 'healthy.'" Largely because of the likelihood that the IRS will carry a large inventory of unprocessed paper tax returns into the 2023 filing season, Collins issued a Taxpayer Advocate Directive (TAD) in March directing the IRS to implement 2-D barcoding or other scanning technology to automate the transcription of paper tax returns. "Today, the digits on every paper return must be manually keystroked into IRS systems by an employee," Collins wrote. "In the year 2022, that doesn't just seem crazy. It is crazy." The IRS's response to the TAD is due on June 27, 2022. The report credits the IRS with taking recent steps to address the backlog but notes "missed opportunities" to have acted earlier. "The IRS's paper processing delays were evident more than a year ago, and the IRS could have addressed them more aggressively at that time," Collins wrote. "Had the IRS taken steps a year ago to reassign current employees to processing functions, it could have reduced the inventory backlog carried into this filing season and accelerated the payment of refunds to millions of taxpayers. Had the IRS implemented 2-D barcoding, optical character recognition or similar technology in time for the 2022 filing season, it could have reduced the need for employees to engage in the highly manual task of transcribing paper tax returns. Had the IRS quickly used some of the $1.5 billion of additional funds provided by the American Rescue Plan Act of 2021 (ARPA), which was enacted 15 months ago, to hire and train additional employees, it could have worked through the backlog, answered more taxpayer telephone calls and otherwise improved taxpayer service." At the end of May 2021, the IRS had an additional 15.8 million returns that had been suspended during processing and required manual review by IRS employees. The suspended returns consisted largely of e-filed returns on which taxpayers claimed Recovery Rebate Credit amounts that differed from the allowable amounts shown on IRS records. As of May 2022, the IRS had reduced the number of suspended returns to 5.4 million. The report credits the IRS with developing procedures to reduce delays among suspended returns, in part by automating the review process. However, e-filed returns suspended during processing did not generally result in extended refund delays. By contrast, unprocessed paper-filed tax returns have resulted in refund delays of six to 10 months or longer. Correspondence Processing Delays When a taxpayer receives a notice and is requested to respond or chooses to respond, the taxpayer must generally do so by mail. Through May 21, the IRS processed 5million taxpayer responses to proposed adjustments. It took an average of 251 days to do so – more than eight months. That is more than triple the processing time of 74 days in fiscal year 2019, the most recent pre-pandemic year. "When a math error or similar notice is generated in connection with a paper-filed tax return," the report says, "the combination of the return processing delay and the correspondence processing delay may mean that the taxpayer must wait well over a year to get the issue resolved and receive the refund due." There are currently over 336,000 taxpayers who could not file their returns or receive their refunds because identity thieves had already filed a return using their identifying information. These taxpayers must submit affidavits and other documentation to substantiate their identities. They now generally must wait at least a year to receive their refunds. The IRS website states: "[D]ue to extenuating circumstances caused by the pandemic our identity theft inventories have increased and on average it is taking about 360 days to resolve identity theft cases." Telephone Challenges During the 2022 filing season, the IRS received about 73 million telephone calls. Only one out of 10 calls reached an IRS employee. Compared with the 2021 filing season, IRS employees answered less than half as many calls, but the percentage of calls answered remained about the same because they also received less than half as many calls. The time the average taxpayer spent waiting on hold rose from 20 minutes to 29 minutes. A comparison of telephone service during the 2021 and 2022 filing seasons is shown in Figure 2. Figure 2: IRS Enterprise Telephone Results Comparing Weeks Ending May 21, 2021, and April 23, 2022 Filing Season Calles Received Number of Calls Answered by an IRS Employee Percentage of Calls Answered by an IRS Employee Time on Hold 2021 167 million 15.7 million 9% 20 minutes 2022 73 million 7.5 million 10% 29 minutes "The combination of more than 21 million unprocessed paper tax returns, more than 14 million math error notices, eight-month backlogs in processing taxpayer correspondence, and extraordinary difficulty reaching the IRS by phone made this filing season particularly challenging," Collins wrote. TAS Objectives for FY 2023 As required by law, the Advocate's report identifies TAS's key objectives for the upcoming fiscal year. The report describes 14 systemic advocacy objectives, six case advocacy and other business objectives, and three research objectives. In light of the challenges taxpayers have been facing over the last two years, Collins wrote that TAS will be placing heavy emphasis on working with the IRS to improve the processing of tax returns and taxpayer service generally. Among the objectives the report identifies are the following: Automating the processing of paper tax returns. On March 29, as noted above, Collins issued a Taxpayer Advocate Directive (TAD) directing the IRS to implement scanning technology by the start of the 2023 filing season so that paper tax returns can be machine-read and employees will not have to keystroke each digit on the return into IRS systems. After obtaining an extension for responding, the IRS's answer to the TAD is now due on Monday, June 27. IRS leaders have indicated they are not likely to implement 2-D barcoding, but Collins has strongly urged them to implement a plan to achieve automation of paper processing in time for the next filing season. "Doing so is critical," Collins wrote. "It is unacceptable that the agency is still paying thousands of employees to keystroke the data from millions of tax returns, digit by digit, into IRS systems – creating the current processing backlog and producing an error rate in transcribing individual returns last year of 22 percent." Reducing barriers to e-filing tax returns. Some taxpayers still prefer to file paper tax returns. However, many paper filers, perhaps the majority, would prefer to e-file their returns but are not able to do so. Among the barriers: some taxpayers must file IRS forms or schedules that the IRS does not accept through its e-file system; some taxpayers must include attachments (e.g., appraisals or disclosure statements) that cannot be filed by their tax software packages; some software packages block returns from e-file if the taxpayer overrides certain entries; IRS systems reject certain returns during the e-file process and require affected taxpayers to mail their returns instead; and some taxpayers live in areas of the country without broadband internet access or lack computer access and thus face greater difficulty in preparing and e-filing their returns. The report says the IRS must reduce e-filing barriers, so that more taxpayers can e-file and there will be fewer paper tax returns to transcribe or scan. Improving the IRS's hiring and training processes. In FY 2022, Congress increased the IRS's overall budget by almost 6% and the taxpayer services portion of the budget by nearly nine percent. Many of the IRS's challenges stem from inadequate staffing, including limited staffing in Submission Processing and telephone call centers. The report says that hiring and adequately training new employees will enhance the taxpayer experience. Improving telephone service. Some taxpayer issues may be resolved through technology channels, and enhancing those channels must be a priority. But some issues are best resolved through a conversation, and some taxpayers are not comfortable with technology. The report says it is critical that taxpayers be able to reach the IRS by phone. As discussed above, IRS employees were only able to answer 10% of taxpayer telephone calls this filing season. "If a private company failed to answer nine out of 10 customer calls, customers would go elsewhere," Collins wrote. "That, of course, is not an option for U.S. taxpayers, so it is critical that the IRS increase staffing in its telephone call centers to handle the volume of calls it receives." IRS Responses to National Taxpayer Advocate Administrative Recommendations The National Taxpayer Advocate is required by statute to submit a year-end report to Congress that, among other things, makes administrative recommendations to resolve taxpayer problems. Section 7803(c)(3) of the Internal Revenue Code authorizes the National Taxpayer Advocate to submit administrative recommendations to the Commissioner and requires the IRS to respond within three months. Under this authority, the National Taxpayer Advocate annually transmits to the Commissioner all administrative recommendations proposed in her year-end report for response. The National Taxpayer Advocate made 88 administrative recommendations in her 2021 year-end report and then submitted them to the Commissioner for response. The IRS has agreed to implement 61 (or 69%) of the recommendations in full or in part. The IRS's responses are published on the TAS website at National Taxpayer Advocate’s Annual Report to Congress Tracker. The National Taxpayer Advocate is required by statute to submit two annual reports to the House Committee on Ways and Means and the Senate Committee on Finance. The statute requires these reports to be submitted directly to the Committees without any prior review or comment from the Commissioner of Internal Revenue, the Secretary of the Treasury, the IRS Oversight Board, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget. The first report must identify the objectives of the Office of the Taxpayer Advocate for the fiscal year beginning in that calendar year. The second report must include a discussion of the ten most serious problems encountered by taxpayers, identify the ten tax issues most frequently litigated in the courts, and make administrative and legislative recommendations to resolve taxpayer problems. The National Taxpayer Advocate blogs about key issues in tax administration. Visit TAS Subscriptions to subscribe. Past blogs from the National Taxpayer Advocate can be found at Most Recent NTA Blogs. For media inquiries, please contact TAS Media Relations at tas.media@irs.gov or call the media line at 202-317-6802. About the Taxpayer Advocate Service The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. The local taxpayer advocate's number is in local directories and at Contact Us. Taxpayers can also call TAS toll-free at 877-777-4778. TAS can help those who need assistance in resolving an IRS problem, if the problem is causing financial difficulty, or those who believe an IRS system or procedure isn't working as it should. This service is free. We're your voice at the IRS has more information about TAS and taxpayer rights under the Taxpayer Bill of Rights. Get updates on tax topics at facebook.com/YourVoiceAtIRS, Twitter.com/YourVoiceatIRS, and YouTube.com/TASNTA.

https://www.irs.gov/newsroom/irs-continues-work-on-inventory-of-tax-returns-original-tax-returns-filed-in-2021-to-be-completed-this-week

IR-2022-128, June 21, 2022 WASHINGTON — Following intensive work during the past several months, the Internal Revenue Service announced today that processing on a key group of individual tax returns filed during 2021 will be completed by the end of this week. Due to issues related to the pandemic and staffing limitations, the IRS began 2022 with a larger than usual inventory of paper tax returns and correspondence filed during 2021. The IRS took a number of steps to address this, and the agency is on track to complete processing of originally filed Form 1040 (individual tax returns without errors) received in 2021 this week. Business paper returns filed in 2021 will follow shortly after. The IRS continues to work on the few remaining 2021 individual tax returns that have processing issues or require additional information from the taxpayer. As of June 10, the IRS had processed more than 4.5 million of the more than 4.7 million individual paper tax returns received in 2021. The IRS has also successfully processed the vast majority of tax returns filed this year: More than 143 million returns have been processed overall, with almost 98 million refunds worth more than $298 billion being issued. IRS employees continue working hard to process these and other tax returns filed in the order received. The IRS continues to receive current and prior-year individual returns and related correspondence as people file extensions, amended returns and a variety of business tax returns. To date, more than twice as many returns await processing compared to a typical year at this point in the calendar year, although the IRS has worked through almost a million more returns to date than it had at this time last year. And a greater percentage of this year's inventory awaiting processing is comprised of original returns which, generally, take less time to process than amended returns. To work to address the unprocessed inventory by the end of this year, the IRS has taken aggressive, unprecedented steps to accelerate this important processing work while maintaining accuracy. This effort included significant, ongoing overtime for staff throughout 2022, creating special teams of employees focused solely on processing aged inventory, and expediting hiring of thousands of new workers and contractors to help with this ongoing effort. Additionally, the IRS has greatly improved the process for taxpayers whose paper and electronically filed returns were suspended during processing for manual review and correction – referred to as error resolution. Last filing season, an IRS tax examiner could correct an average of 70 tax returns with errors per hour. Thanks to new technology implemented this filing season, 180 to 240 returns can now be corrected per hour. As of June 12, 2021, there were 8.9 million tax returns in error resolution. As of June 10, 2022, there were just 360,000 returns awaiting correction. The IRS will continue its intense effort to make progress on processing these paper returns in the months ahead. "IRS employees have been working tirelessly to process these tax returns as quickly as possible and help people who are waiting on refunds or resolution of an account issue," said IRS Commissioner Chuck Rettig. "Completing the individual returns filed last year with no errors is a major milestone, but there is still work to do. We remain focused on doing everything possible to expedite processing of these tax returns, and we continue to add more people to this effort as our hiring efforts continue this summer." Rettig emphasized that adding sustained funding increases for the IRS will help the agency add more employees to process tax returns and answer phones as well as help improve technology and ensure fair enforcement of the tax laws. "Taxpayers and tax professionals deserve the absolute highest-quality service from the nation's tax system," Rettig said. "Long-term and consistent funding for the agency is critical to ensuring the IRS is prepared for future tax seasons. It's also critical for the IRS to be ready to answer the call for the nation during the next crisis, just as the agency did delivering three rounds of historic stimulus payments and advance Child Tax Credit payments during the pandemic." The IRS reminds millions of taxpayers who have not yet filed their 2021 tax returns this year – including those who requested an extension until October 17 – to make sure they file their returns electronically with direct deposit to avoid delays. People who use e-file avoid the delays facing those who file paper returns; e-filed returns with no errors are typically processed in 21 days. The IRS also urges people to file as soon as they are ready. There is no need to wait until the last minute before the October 17 extension deadline. Filing sooner avoids potential delays for taxpayers, and it also assists the larger ongoing IRS efforts to complete processing tax returns this year. Additional details on processing and other operations are available on a special page on IRS.gov

https://www.irs.gov/newsroom/irs-expands-voice-bot-options-for-faster-service-less-wait-time

Assistance for eligible taxpayers in setting up or modifying payment plans now available; more functions planned in 2022 to help taxpayers obtain account information YouTube video IRS Authenticated Collection Voice Bot IR-2022-127, June 17, 2022 WASHINGTON — The Internal Revenue Service today announced expanded voice bot options to help eligible taxpayers easily verify their identity to set up or modify a payment plan while avoiding long wait times. "This is part of a wider effort at the IRS to help improve the experience of taxpayers," said IRS Commissioner Chuck Rettig. "We continue to look for ways to better assist taxpayers, and that includes helping people avoid waiting on hold or having to make a second phone call to get what they need. The expanded voice bots are another example of how technology can help the IRS provide better service to taxpayers." Voice bots run on software powered by artificial intelligence, which enables a caller to navigate an interactive voice response. The IRS has been using voice bots on numerous toll-free lines since January, enabling taxpayers with simple payment or notice questions to get what they need quickly and avoid waiting. Taxpayers can always speak with an English- or Spanish-speaking IRS telephone representative if needed. Eligible taxpayers who call the Automated Collection System (ACS) and Accounts Management toll-free lines and want to discuss payment plan options can authenticate or verify their identities through a personal identification number (PIN) creation process. Setting up a PIN is easy: Taxpayers will need their most recent IRS bill and some basic personal information to complete the process. "To date, the voice bots have answered over 3 million calls. As we add more functions for taxpayers to resolve their issues, I anticipate many more taxpayers getting the service they need quickly and easily," said Darren Guillot, IRS Deputy Commissioner of Small Business/Self Employed Collection & Operations Support. Additional voice bot service enhancements are planned in 2022 that will allow authenticated individuals (taxpayers with established or newly created PINs) to get: Account and return transcripts. Payment history. Current balance owed. In addition to the payment lines, voice bots help people who call the Economic Impact Payment (EIP) toll-free line with 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 available self-service options.

https://www.irs.gov/newsroom/irs-selects-new-deputy-chief-for-criminal-investigation-division

IR-2022-126, June 13, 2022 WASHINGTON –The Internal Revenue Service announced the selection of Guy Ficco as the next Deputy Chief for IRS Criminal Investigation (IRS-CI). He will oversee 20 field offices and 11 foreign posts, including approximately 2,000 special agents investigating tax fraud and other financial crimes. "The Deputy Chief position demands someone with vast experience in tax law and financial crimes, but also a passionate leader who can further the development of CI's workforce", said Jim Lee, Chief of IRS Criminal Investigation. "After nearly three decades serving our agency in various roles, Guy's experience will prove invaluable as we continue uncovering financial crimes around the world." Ficco currently serves as IRS-CI's Executive Director of Global Operations where he oversees CI's policies related to investigations, as well as the agency's international footprint. He provides executive leadership over CI's Financial Crimes, Asset Recovery and Investigative Services, Special Investigative Techniques, and Narcotics and National Security sections, as well as CI's International Field Operations. Ficco will replace Jim Robnett, who will be retiring July 15 after 36 years of service at the IRS, 28 of which were with IRS-CI. In previous IRS-CI positions, Ficco served as Special Agent in Charge, providing oversight and direction in matters relating to criminal investigation activities and programs for the Philadelphia Field Office. Additionally, during his tenure he held various leadership roles including Supervisory Special Agent in the Washington Field Office, Senior Analyst in both Financial Crimes and International Operations sections, Assistant Special Agent in Charge for the Washington Field Office, Director of Special Investigative Techniques, Washington DC, and long-term actor for Deputy Director, Strategy. Ficco served as a Congressional Fellow through the Government Affairs Institute at Georgetown University, assigned to the Permanent Subcommittee on Investigations in the Senate Homeland Security Committee. He holds a bachelor's degree in business administration with a concentration in Accounting from Dominican College in New York. He is a Certified Fraud Examiner and joined IRS Criminal Investigation in 1995. 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-wraps-up-2022-dirty-dozen-scams-list-agency-urges-taxpayers-to-watch-out-for-tax-avoidance-strategies

Cryptocurrency, non-filing, abusive syndicated conservation easement, abusive micro-captive deals make list IR-2022-125, June 10, 2022 WASHINGTON — The Internal Revenue Service today wrapped up its annual "Dirty Dozen" scams list for the 2022 filing season, with a warning to taxpayers to avoid being misled into using bogus tax avoidance strategies. The IRS warned taxpayers to watch out for promoters peddling these schemes. As part of its mission, the IRS is focused on high-income taxpayers who engage in various types of tax violations, ranging from the most basic, failing to file returns up to sophisticated transactions involving abusive syndicated conservation easement deals and abusive domestic micro-captive insurance arrangements. "These tax avoidance strategies are promoted to unsuspecting folks with too-good-to-be-true promises of reducing taxes or avoiding taxes altogether," said IRS Commissioner Chuck Rettig. "Taxpayers should not kid themselves into believing they can hide income from the IRS. The agency continues to focus on these deals, and people who engage in them face steep civil penalties or criminal charges." The IRS publishes the Dirty Dozen as part of a broad ranging effort to inform taxpayers. People should be careful not to get conned into using well-worn abusive arrangements with high fees as well as the other Dirty Dozen schemes. The IRS has stepped up efforts on abusive schemes in recent years. As part of this wider effort, the IRS Office of Chief Counsel announced earlier this year it would hire up to 200 additional attorneys to help the agency combat abusive syndicated conservation easements and micro-captive transactions as well as other abusive schemes. (IRS Chief Counsel looking for 200 experienced attorneys to focus on abusive tax deals; job openings posted). Last week, the IRS kicked off the 2022 Dirty Dozen list covering four heavily promoted abusive deals that taxpayers need to avoid. The IRS followed this up with a number of common scams that can target average taxpayers. These consumer-focused scams can prey on any individual or organization, steal sensitive financial information or money, and in some cases leave the taxpayer to clean up the legal mess. For today's conclusion of the Dirty Dozen, the IRS highlights four other schemes that typically target high-net-worth individuals who are looking for ways to avoid paying taxes. Solicitations for investment in these schemes are generally more targeted than solicitations for widespread scams, such as email scams, that can hit anyone. Hiding assets in what the taxpayer hopes is an anonymous account or simply not filing a return in the hopes of staying off the grid are tax avoidance scams that have been around for decades. The IRS remains committed to stopping these methods of cheating that short-change taxpayers who reliably pay their fair share of taxes every year. The IRS warns anyone thinking about using one of these schemes – or similar ones – that the agency continues to improve work in these areas thanks to new and evolving data analytic tools and enhanced document matching. These Dirty Dozen schemes cover: Concealing Assets in Offshore Accounts and Improper Reporting of Digital Assets: The IRS remains focused on stopping tax avoidance by those who hide assets in offshore accounts and in accounts holding cryptocurrency or other digital assets. International tax compliance is a top priority of the IRS. New patterns and trends emerging in complex international tax avoidance schemes and cross-border transactions have heightened concerns regarding the lack of tax compliance by individuals and entities with an international footprint. As international tax and money laundering crimes have increased, the IRS continues to protect the integrity of the U.S. tax system by helping American taxpayers to understand and meet their tax responsibilities and by enforcing the law with integrity and fairness, worldwide. Over the years, numerous individuals have been identified as evading U.S. taxes by attempting to hide income in offshore banks, brokerage accounts or nominee entities. They then access the funds using debit cards, credit cards, wire transfers or other arrangements. Some individuals have used foreign trusts, employee-leasing schemes, private annuities and structured transactions attempting to conceal the true owner of accounts or insurance plans. U.S. persons are taxed on worldwide income. The mere fact that money is placed in an offshore account does not put it out of reach of the U.S. tax system. U.S. persons are required, under penalty of perjury, to report income from offshore funds and other foreign holdings. The IRS uses a variety of sources to identify promoters who encourage others to hide their assets overseas. Digital assets are being adopted by mainstream financial organizations along with many other parts of the economy. The proliferation of digital assets across the world in the last decade or so has created tax administration challenges regarding digital assets, in part because there is an incorrect perception that digital asset accounts are undetectable by tax authorities. Unscrupulous promoters continue to perpetuate this myth and make assertions that taxpayers can easily conceal their digital asset holdings. The IRS urges taxpayers to not be misled into believing this storyline about digital assets and possibly exposing themselves to civil fraud penalties and criminal charges that could result from failure to report transactions involving digital assets. "The IRS is able to identify and track otherwise anonymous transactions of international accounts as well as digital assets during the enforcement of our nation's tax laws," Rettig said. "We urge everyone to come into compliance with their filing and reporting responsibilities and avoid compromising themselves in schemes that will ultimately go badly for them." High-income individuals who don't file tax returns: The IRS continues to focus on people who choose to ignore the law and not file a tax return, especially those individuals earning more than $100,000 a year. Taxpayers who exercise their best efforts to file their tax returns and pay their taxes, or enter into agreements to pay their taxes, deserve to know that the IRS is pursuing others who have failed to satisfy their filing and payment obligations. The good news is most people file on time and pay their fair share of tax. Those who choose not to file a return even when they have a legal filing requirement, and especially those earning more than $100,000 per year who don't file, represent a compliance problem that continues to be a top priority of the IRS. Here's a key reminder for taxpayers who may be wrongly persuaded that not filing their return is a smart move. The Failure to File Penalty is initially much higher than the Failure to Pay Penalty. It is more advantageous to file an accurate return on time and set up a payment plan if needed than to not file. The Failure to File Penalty is generally 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty generally will not exceed 25% of unpaid taxes. The Failure to Pay Penalty is generally 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty will not exceed 25% of unpaid taxes. If a person's failure to file is deemed fraudulent, the penalty generally increases from 5 percent per month to 15 percent for each month or part of a month the return is late, with the maximum penalty generally increasing from 25 percent to 75 percent. Abusive Syndicated Conservation Easements: In syndicated conservation easements, promoters take a provision of the tax law allowing for conservation easements and twist it by using inflated appraisals of undeveloped land (or, for a few specialized ones, the facades of historic buildings), and by using partnership arrangements devoid of a legitimate business purpose. These abusive arrangements do nothing more than game the tax system with grossly inflated tax deductions and generate high fees for promoters. The IRS urges taxpayers to avoid becoming ensnared in these deals sold by unscrupulous promoters. If something sounds too good to be true, then it probably is. People can risk severe monetary penalties for engaging in questionable deals such as abusive syndicated conservation easements. In the last five years, the IRS has examined many hundreds of syndicated conservation easement deals where tens of billions of dollars of deductions were improperly claimed. It is an agency-wide effort using a significant number of resources and thousands of staff hours. The IRS examines 100 percent of these deals and plans to continue doing so for the foreseeable future. Hundreds of these deals have gone to court and hundreds more will likely end up in court in the future. "We are devoting a lot of resources to combating abusive conservation easements because it is important for fairness in tax administration," Commissioner Rettig stated. "It is not fair that wage-earners pay their fair share year after year but high-net-worth individuals can, under the guise of a real estate investment, avoid millions of dollars in tax through overvalued conservation easement contributions." Abusive Micro-Captive Insurance Arrangements: In abusive "micro-captive" structures, promoters, accountants, or wealth planners persuade owners of closely held entities to participate in schemes that lack many of the attributes of insurance. For example, coverages may "insure" implausible risks, fail to match genuine business needs or duplicate the taxpayer's commercial coverages. The "premiums" paid under these arrangements are often excessive and are used to skirt the tax law. Recently, the IRS has stepped up enforcement against a variation using potentially abusive offshore captive insurance companies. Abusive micro-captive transactions continue to be a high-priority area of focus. The IRS has conducted thousands of participant examination and promoter investigations, assessed hundreds of millions of dollars in additional taxes and penalties owed, and launched a successful settlement initiative. Additional information regarding the settlement initiative can be found in IRS takes next step on abusive micro-captive transactions; nearly 80 percent accept settlement, 12 new audit teams established. The IRS's activities have been sustained by the Independent Office of Appeals, and the IRS has won all micro-captive Tax Court and appellate court cases, decided on their merits, since 2017.

https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022

IR-2022-124, June 9, 2022 WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022. The IRS provided legal guidance on the new rates in Announcement 2022-13PDF, issued today. In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. For travel from January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03PDF. "The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”  While fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.  The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.  Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute. Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011. Mileage Rate Changes Purpose Rates 1/1 through 6/30/2022 Rates 7/1 through 12/31/2022 Business 58.5 62.5 Medical/Moving 18 22 Charitable 14 14

https://www.irs.gov/newsroom/missed-the-april-tax-deadline-file-and-pay-by-june-14-to-avoid-a-larger-penalty-and-interest

IR-2022-123, June 9, 2022 WASHINGTON — The Internal Revenue Service today advised taxpayers who missed the April tax deadline that they can usually avoid a larger penalty by filing their 2021 federal income tax return and paying any tax due by Tuesday, June 14. To avoid the larger penalty, the IRS must receive the return by June 14. This means that a return mailed on that date will not qualify. For that reason, the IRS urges everyone to file electronically by June 14. In addition, taxpayers can also limit late-payment penalties and interest charges by paying their tax electronically. The fastest and easiest way to do that is with IRS Direct Pay, a free service available only on IRS.gov. Several other electronic payment options are also available. Visit IRS.gov/payments for details. How the penalty works Those who miss the June 14 cutoff will normally face a minimum late-filing penalty, also known as a failure-to-file penalty. By law, If the return is more than 60 days late, the minimum penalty is either $435 or 100 percent of the unpaid tax, whichever is less. This means that the penalty will equal the tax due if the taxpayer owes $435 or less. If they owe more than $435, then the minimum penalty will be at least $435. Under the normal calculation, this penalty is 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%. Visit IRS.gov/penalties for details. The late-filing penalty will stop accruing once the taxpayer files. In addition, the separate late-payment penalty and interest will stop accruing as soon as the tax is paid. The taxpayer need not figure any of these charges. Instead, the IRS will bill them for any amount due. Other filing deadline rules Some taxpayers get more time to file, even if they didn't request an extension. These special deadlines affect penalty and interest calculations for those who qualify, such as members of the military serving in combat zones, taxpayers living outside the U.S. and those living in declared disaster areas. 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. 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 without penalty for late payment, interest is due on any unpaid tax from this year's April 18 deadline. The interest rate is currently 4% per year, compounded daily. The interest rate rises to 5% on July 1, 2022. 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. Disaster Areas 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. For details on all available relief, visit the Around the Nation page on IRS.gov. Penalty relief for some Taxpayers who have filed and paid on time and have not been assessed any penalties for the past three years often qualify to have the penalty abated. See the First-Time Penalty Abatement page on IRS.gov. A taxpayer who does not qualify for this relief may still qualify for penalty relief if their failure to file or pay on time was due to reasonable cause and not willful neglect. Anyone who receives a penalty notice from the IRS should read it carefully and follow its instructions for requesting relief. See Penalty Relief in IRS.gov for the types of penalty relief and how to make the request. In addition to penalties, interest will be charged on any tax not paid by the regular April due date. For individual taxpayers, it's the federal short-term interest rate plus 3 percentage points. This means that until June 30, the rate is 4% per year, compounded daily. Starting July 1, 2022, through September 30, 2022, the rate will be 5% per year, compounded daily. Interest rates are subject to change quarterly. Interest stops accruing as soon as the tax is paid in full. By law, interest cannot be abated. Ways to pay Many taxpayers mistakenly delay filing because they are unable to pay what they owe. Often, these taxpayers qualify for one of the payment options available from the IRS. These include: Installment Agreement – An installment agreement, or payment plan, allows a taxpayer to pay over time. Individuals who owe $50,000 or less in combined tax, penalties and interest can request a payment plan using the IRS's Online Payment Agreement application. Those who have a balance under $100,000 may also qualify for a short-term payment plan of up to 180 days. The plan can be set up in minutes and requesters receive immediate notification of approval. To reduce the chance of default and avoid having to write and mail a check each month, taxpayers can select the direct debit option for making these payments. For other ways to set up a payment plan, visit Payment Plans, Installment Agreements.   Offer in Compromise — Some struggling taxpayers may qualify to settle their tax bill for less than the amount they owe by submitting an offer in compromise. To help determine eligibility, use the Offer in Compromise Pre-Qualifier tool. Check withholding  Taxpayers who owe tax for 2021 can avoid having the same problem for 2022 by increasing the amount of tax withheld from their paychecks. For help determining the right amount to withhold, use the Tax Withholding Estimator on IRS.gov.

https://www.irs.gov/newsroom/dirty-dozen-irs-security-summit-reiterate-recent-warning-to-tax-professionals-and-other-businesses-of-dangerous-spear-phishing-attacks

IR-2022-122, June 9, 2022 WASHINGTON — The Internal Revenue Service today announced that spear phishing is the 8th item on the 2022 "Dirty Dozen" scams warning list and a serious problem because it can be tailored to attack and steal the computer system credentials of any small business with a client data base, such as tax professionals' firms. "Tax professionals generally relax a little after filing season and many take a well-deserved vacation but don't let your IT defenses down," said IRS Commissioner Chuck Rettig. "Spear phishing remains one of the biggest threats to the tax industry and other client-based enterprises." Spear phishing is an email scam that attempts to steal a tax professional's software preparation credentials. These thieves try to steal client data and tax preparers' identities in an attempt to file fraudulent tax returns for refunds. Spear phishing can be tailored to attack any type of business or organization, so everyone needs to be on the lookout and not rush to act when a strange email comes in. The IRS has compiled the annual "Dirty Dozen" list for more than 20 years as a way of alerting taxpayers and the tax professional community about scams and schemes. The list is not a legal document or a literal listing of agency enforcement priorities. It is designed to raise awareness among a variety of audiences that may not always be aware of developments involving tax administration. "Dirty Dozen" scams tend to be most prevalent during the filing season but criminals are busy all year long. The IRS, state tax agencies and the nation's tax community – working together as the Security Summit – continue to see an increase in this scheme attacking the tax professional community. 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. Emails claiming "Your account has been put on hold" are scams. 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 will prompt a request for 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 information 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. For more information, see Latest spear phishing scams target tax professionals.

https://www.irs.gov/newsroom/dirty-dozen-scammers-use-every-trick-in-their-communication-arsenal-to-steal-your-identity-personal-financial-information-money-and-more

IR-2022-121, June 8, 2022 WASHINGTON — Suspicious communications in all its forms designed to either trick, surprise or scare someone into responding before thinking is No. 7 on the 2022 "Dirty Dozen" scams warning list, the Internal Revenue Service announced today, warning everyone to be on the lookout for bogus calls, texts, emails and posts online to gain trust or steal. Criminals have used these methods for years and they persist because these tricks work enough times to keep the scammers at it. Victims are tricked into providing sensitive personal financial information, money or other information. This can be used to file false tax returns and tap into financial accounts, among other schemes. "If you are surprised or scared by a call or text, it's likely a scam so proceed with extreme caution," said IRS Commissioner Chuck Rettig. "I urge everyone to verify a suspicious email or other communication independently of the message in question." The IRS has compiled the annual Dirty Dozen list for more than 20 years as a way of alerting taxpayers and the tax professional community about scams and schemes. The list is not a legal document or a literal listing of agency enforcement priorities. It is designed to raise awareness among a variety of audiences that may not always be aware of developments involving tax administration. As part of the Security Summit effort with the states and the nation's tax industry, the IRS has made great strides in preventing and reducing tax-related identity theft. But it remains a serious threat to taxpayers and tax professionals who don't adequately protect Social Security numbers (SSN) and other personal information. For example, criminals can quickly file a fake tax return using a stolen SSN in the hope that it has not already appeared on another filed return. People frequently don't know they are a victim of identity theft until they are notified by the IRS of a possible issue with their tax return or their return is rejected because the SSN appears on a return already filed. Here are some common scams the IRS continues to see. Taxpayers should take extra caution with these schemes, which continue to evolve and change: Text message scams: These scams are sent to taxpayers' smartphones and can reference things like 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 and 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. 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. If a taxpayer receives an unsolicited fraudulent email that appears to be from either the IRS or a program closely linked to the IRS, report it by sending the email as an attachment to phishing@irs.gov. The Report Phishing and Online Scams page at IRS.gov provides complete details. 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 caller's true 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. For more information, see IRS warning: Scammers work year-round; stay vigilant.

https://www.irs.gov/newsroom/for-those-who-pay-estimated-taxes-second-quarter-june-15-deadline-approaches

IR-2022-120, June 8, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers who pay estimated taxes that the deadline to pay their second quarter tax liability is June 15. Taxes are pay-as-you-go This means taxpayers need to pay most of the tax they expect to owe during the year, as income is received. There are two ways to do that: Withholding from pay, pension or certain government payments such, as Social Security. Making quarterly estimated tax payments during the year. Estimated tax is the method used to pay tax on income that isn't subject to withholding. This includes income from self-employment, interest, dividends, rent, gains from the sale of assets, prizes and awards. Taxpayers may also have to pay estimated tax if the amount of income tax being withheld from their salary, pension or other income isn't enough. If necessary, those who receive a salary or wages can avoid having to pay estimated taxes by asking their employer to withhold more tax from their earnings. To do this, taxpayers should submit a new Form W-4 to their employer. There is a special line on Form W-4 for them to enter the additional amount they want their employer to withhold. Who must pay estimated tax? Individuals, including sole proprietors, partners and S corporation shareholders, generally have to make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return. Individual taxpayers can use the IRS Interactive Tax Assistant online to see if they are required to pay estimated taxes. They can also see the worksheet in Form 1040-ES, Estimated Tax for Individuals, for more details on who must pay estimated tax. Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when they file their return. Corporations can see Form 1120-W, Estimated Tax for Corporations, for more information. 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 avoid an underpayment penalty Taxpayers can avoid an underpayment penalty by owing less than $1,000 at tax time or by paying most of their taxes during the year. Generally, for 2022 that means making payments of at least 90% of the tax expected on their 2022 return, or taxpayers who pay at least 100 percent of the tax shown on their return for tax year 2021. Special rules apply to some groups of taxpayers, such as farmers, fishers, certain higher income taxpayers, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. For more information, refer to Form 1040-ES. Generally, taxpayers should make estimated tax payments in four equal amounts to avoid a penalty. However, if they receive income unevenly during the year, they may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method. Taxpayers can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if they owe a penalty for underpaying their estimated tax. Third quarter payments are due September 15 and the final estimated tax payment for tax year 2022 is due on January 17, 2023. Tax Withholding Estimator The Tax Withholding Estimator offers a step-by-step method for effectively ensuring taxpayers have the right amount of tax withheld from their paychecks or other income that is subject to withholding. Using the Tax Withholding Estimator can help taxpayers prevent having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. How to pay estimated taxes An electronic payment is the fastest, easiest and most secure way for individuals to make an estimated tax payment. Taxpayers can securely log into their IRS Online Account or use IRS Direct Pay to submit a payment from their checking or savings account. Taxpayers can also pay using a debit, credit card or digital wallet. Taxpayers should note that the payment processor, not the IRS, charges a fee for debit and credit card payments. Both Direct Pay and the pay by debit, credit card or digital wallet options are available online at IRS.gov/payments and through the IRS2Go app. Taxpayers can also use the Electronic Federal Tax Payment System (EFTPS) to make an estimated tax payment. Corporations must use electronic funds transfer to make all federal tax deposits (such as deposits of employment, excise and corporate income tax). This includes installment payments of estimated tax. Generally, an electronic funds transfer is made using the Electronic Federal Tax Payment System (EFTPS). However, if the corporation does not want to use EFTPS, it can arrange for its tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on its behalf. If taxpayers opt to mail a check or money order, they should make them payable to the "United States Treasury." Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. For information on all payment options, visit Pay Online. IRS.gov assistance 24/7 Tax help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers find answers to common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions. The IRS is continuing to expand ways to communicate to taxpayers who prefer to get tax information in other languages. The IRS has posted translated tax resources in 20 other languages on IRS.gov. For more information, see We Speak Your Language.

https://www.irs.gov/newsroom/dirty-dozen-irs-urges-anyone-having-trouble-paying-their-taxes-to-avoid-anyone-claiming-they-can-settle-tax-debt-for-pennies-on-the-dollar-known-as-oic-mills

IR-2022-119, June 7, 2022 WASHINGTON — As the 6th item on the 2022 "Dirty Dozen" scams warning list, the Internal Revenue Service today cautioned taxpayers with pending tax bills to contact the IRS directly and not go to unscrupulous tax companies that use local advertising and falsely claiming they can resolve unpaid taxes for pennies on the dollar. "No one can get a better deal for taxpayers, than they can usually get for themselves by working directly with the IRS to resolve their tax issues," said IRS Commissioner Chuck Rettig. "Taxpayers can check online for their best deal, as well as calling a specialized collection line where they can get fast service by using voice and chat bots or opting to speak with a live phone assistor." Offer in Compromise (OIC) "mills" make outlandish claims usually in local advertising regarding how they can settle a person's tax debt for pennies on the dollar. The reality usually is that taxpayers pay the OIC mill a fee to get the same deal they could have gotten on their own by working directly with the IRS. The IRS has compiled the annual Dirty Dozen list for more than 20 years as a way of alerting taxpayers and the tax professional community about scams and schemes. The list is not a legal document or a literal listing of agency enforcement priorities. It is designed to raise awareness among a variety of audiences that may not always be aware of developments involving tax administration. OIC mills are a problem all year long but tend to be more visible right after the filing season is over and taxpayers are trying to resolve their tax issues perhaps after receiving a balance due notice in the mail. For those who feel they need help, there are many reputable tax professionals available, and there are important tools that can help people find the right practitioner for their needs. IRS.gov is a good place to start scoping out what to do. These "mills" contort the IRS program into something it's not — misleading people with no chance of meeting the requirements while charging excessive fees, often thousands of dollars. An "offer," or OIC, is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances. However, some promoters are inappropriately advising indebted taxpayers to file an OIC application with the IRS, even though the promoters know the person won't qualify. This costs honest taxpayers money and time. Before taxpayers start investing time to do the paperwork necessary to submit an offer, they'll want to check out the IRS's Offer in Compromise Pre-Qualifier Tool to make sure they're eligible to file one. (Note: even though individuals and businesses can submit an offer, the tool is currently only available to individuals.) The IRS also created an OIC video playlist that leads taxpayers through a series of steps and forms to help them calculate an appropriate offer based on their assets, income, expenses and future earning potential. Find these helpful, easy to navigate videos at irsvideos.gov/oic. The IRS reminds taxpayers that under the First Time Penalty Abatement policy, taxpayers can go directly to the IRS for administrative relief from a penalty that would otherwise be added to their tax debt. OIC mills are one example of unscrupulous tax preparers. Taxpayers should be wary of unscrupulous "ghost" preparers and aggressive promises of manufacturing a bigger refund. Ghost preparers: Although most tax preparers are ethical and trustworthy, taxpayers should be wary of preparers who won't sign the tax returns they prepare, often referred to as ghost preparers. For e-filed returns, the "ghost" will prepare the return, but refuse to digitally sign as the paid preparer. By law, anyone who is paid to prepare, or assists in preparing federal tax returns, must have a valid Preparer Tax Identification Number (PTIN). Paid preparers must sign and include their PTIN on the return. Inflated refunds: 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. Unscrupulous tax return preparers may also: Require payment in cash only and will not provide a receipt. Invent income to qualify their clients for tax credits. Claim fake deductions to boost the size of the refund. Direct refunds into their bank account, not the taxpayer's account. Choose wisely. The Choosing a Tax Professional page on IRS.gov has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification. Taxpayers are legally responsible for what's on their tax return even if it is prepared by someone else.

https://www.irs.gov/newsroom/us-court-of-appeals-ruling-affirms-irs-position-that-abusive-microcaptive-insurance-transactions-are-shams

IR-2022-118, June 7, 2022 WASHINGTON — The Internal Revenue Service today said that a recent court decision upholds its long-standing position regarding abusive microcaptive insurance transactions. Taxpayers should be alert to these schemes, normally peddled by promoters, as they will ultimately cost them. On May 12, 2022, in Reserve Mechanical Corp. v. CommissionerPDF, the United States Court of Appeals for the Tenth Circuit appropriately upheld the Internal Revenue Service's position on abusive microcaptive insurance transactions. The Tenth Circuit affirmed the Tax Court's decision holding that the taxpayer was not engaged in the insurance business and that the purported insurance premiums it received were therefore taxable. After the Tax Court decided in favor of the IRS in numerous cases involving microcaptives, Reserve Mechanical is the first appellate decision recognizing the IRS' position that these abusive transactions are shams. The IRS encourages anyone considering entering a promoted microcaptive insurance transaction to first speak with a qualified, independent advisor. These transactions will result in serious economic loss to taxpayers, including the loss of deductions, required income inclusion and penalties. Taxpayers should understand that the IRS has asserted in many of these cases that the microcaptive insurance transactions lack economic substance and that when transactions are held to lack economic substance, then a 20% penalty (40% if undisclosed) will automatically apply, and it cannot be waived or reduced by the IRS or the courts. Likewise, taxpayers who have already engaged in such a transaction should speak with a qualified independent tax advisor about their options. The IRS previously offered settlement opportunities for abusive microcaptive transactions, and for taxpayers who come forward seeking to resolve their case, the IRS will consider providing a resolution opportunity as appropriate. The IRS and Department of Justice will use all available legal options to challenge improper attempts to avoid or evade U.S. income tax, regardless of how long it takes for these cases to wind their way through the courts. The IRS will also aggressively pursue penalties for all participants in these abusive transactions.

https://www.irs.gov/newsroom/irs-continues-with-dirty-dozen-this-week-urging-taxpayers-to-continue-watching-out-for-pandemic-related-scams-including-theft-of-benefits-and-bogus-social-media-posts

IR-2022-117, June 6, 2022 WASHINGTON — The Internal Revenue Service today kicked off the week with the 5th item on its 2022 annual Dirty Dozen scams warning list, with a sad reminder that criminals still use the COVID-19 pandemic to steal people's money and identity with bogus emails, social media posts and unexpected phone calls, among other things. These scams can take a variety of forms, including using unemployment information and fake job offers to steal money and information from people. All of these efforts can lead to sensitive personal information being stolen, with scammers using this to try filing a fraudulent tax return as well as harming victims in other ways. "Scammers continue using the pandemic as a device to scare or confuse potential victims into handing over their hard-earned money or personal information," said IRS Commissioner Chuck Rettig. "I urge everyone to be leery of suspicious calls, texts and emails promising benefits that don't exist." The IRS has compiled the annual Dirty Dozen list for more than 20 years as a way of alerting taxpayers and the tax professional community about scams and schemes. The list is not a legal document or a literal listing of agency enforcement priorities. It is designed to raise awareness among a variety of audiences that may not always be aware of developments involving tax administration. "Caution and awareness are our best lines of defense against these criminals," Rettig added. "Everyone should verify information on a trusted government website, such as IRS.gov." A common scam the IRS continues to see during this period involves using crises that affect all or most people in the nation, such as the COVID-19 pandemic. Some of the scams for which people should continue to be on the lookout include: Economic Impact Payment and tax refund scams: Identity thieves who try to use Economic Impact Payments (EIPs), also known as stimulus payments, are a continuing threat to individuals. Similar to tax refund scams, taxpayers should watch out for these tell-tale signs of a scam: Any text messages, random incoming phone calls or emails inquiring about bank account information, requesting recipients to click a link or verify data should be considered suspicious and deleted without opening. This includes not just stimulus payments, but tax refunds and other common issues. Remember, the IRS won't initiate contact by phone, email, text or social media asking for Social Security numbers or other personal or financial information related to Economic Impact Payments. Also be alert to mailbox theft. Routinely check your mail and report suspected mail losses to postal inspectors. Reminder: The IRS has issued all Economic Impact Payments. Most eligible people already received their stimulus payments. 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. Taxpayers should remember that the IRS website, IRS.gov, is the agency's official website for information on payments, refunds and other tax information. Unemployment fraud leading to inaccurate taxpayer 1099-Gs: Because of the pandemic, many taxpayers lost their jobs and received unemployment compensation from their state. However, scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made on these fraudulent claims went to the identity thieves. Taxpayers should also be on the lookout for a Form 1099-G reporting unemployment compensation they didn't receive. For people in this situation, the IRS urges them to contact their appropriate state agency for a corrected form. If a corrected form cannot be obtained so that a taxpayer can file a timely tax return, taxpayers should complete their return claiming only the unemployment compensation and other income they actually received. See Identity Theft and Unemployment Benefits for tax details and DOL.gov/fraud for state-by-state reporting information. Fake employment offers posted on social media: There have been many reports of fake job postings on social media. The pandemic created many newly unemployed people eager to seek new employment. These fake posts entice their victims to provide their personal financial information. This creates added tax risk for people because this information in turn can be used to file a fraudulent tax return for a fraudulent refund or used in some other criminal endeavor. Fake charities that steal your money: Bogus charities are always a problem. They tend to be a bigger threat when there is a national crisis like the pandemic. Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return. Taxpayers must donate to a qualified charity to get a deduction. To check the status of a charity, use the IRS Tax Exempt Organization Search tool. Here are some tips to remember about fake charity scams: Individuals should never let any caller pressure them. A legitimate charity will be happy to get a donation at any time, so there's no rush. Donors are encouraged to take time to do the research. Potential donors should ask the fundraiser for the charity's exact name, web address and mailing address, so it can be confirmed later. Some dishonest telemarketers use names that sound like large well-known charities to confuse people. Be careful how a donation is paid. Donors should not work with charities that ask them to pay by giving numbers from a gift card or by wiring money. That's how scammers ask people to pay. It's safest to pay by credit card or check — and only after having done some research on the charity. For more information about avoiding fake charities, visit the Federal Trade Commission website.

https://www.irs.gov/newsroom/dont-wait-to-file-irs-encourages-taxpayers-with-october-filing-extensions-and-others-who-still-need-to-file

File electronically when ready; speeds refunds, avoids added interest, penalties IR-2022-116, June 2, 2022 WASHINGTON — The Internal Revenue Service is encouraging taxpayers who have yet to file their 2021 tax return – including those who requested an extension of time – to file a complete and accurate return electronically as early as possible once they have all their information together. There's no need to wait until the October deadline. Taxpayers who requested an extension have until October 17 this year to file their tax return. However, if a taxpayer has all the necessary information to file an accurate return, filing before summer vacation can be a win-win. "IRS employees continue working hard to process tax returns and address our inventory issues," said IRS Commissioner Chuck Rettig. "We continue to urge people to file electronically and do it as soon as possible. Even if people have an extension to file until October, sending the tax return as soon as possible can either help get them a refund quicker or it can save them money if they owe by avoiding additional interest and penalties." Filing electronically as soon as possible can also help taxpayers who did not file an extension and missed the April deadline to avoid further penalties and interest if they owe taxes. File electronically and choose direct deposit Generally, people who choose not to file a tax return because they didn't earn enough money to be required to file won't receive a penalty if they are owed a refund. But they may miss out on receiving a refund if they don't file. The IRS advises individuals who still need to file a 2021 tax return to file electronically and, if due a refund, to choose direct deposit. Filing electronically is fast, accurate and secure, and when an individual chooses direct deposit, their refund goes directly from the IRS into their bank or financial account getting them their refund in the fastest time possible. If they have a prepaid debit card, they may be able to have their refund applied to the card by providing the account and routing numbers to the IRS. The IRS processes most e-filed returns and issues direct deposit refunds in less than three weeks. Here's a tip to help with e-filing a 2021 tax return for those still waiting on their 2020 tax return to be processed: 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. Those waiting on their 2020 tax return can still file their 2021 return by entering $0 for their 2020 AGI on their 2021 tax return. Remember, if using the same tax preparation software as last year, this field will auto-populate. Taxpayers who haven't filed a 2021 tax return yet – including extension filers – can file electronically any time before the October deadline and avoid the last-minute rush to file. Find help on IRS.gov People may be waiting to file because they need help or more information, have a more complicated tax situation, or owe taxes. The IRS has resources to help taxpayers get the answers they need so they can file an accurate return. Take the time to file an accurate tax return, but don't wait until the last minute and risk missing the October deadline. Tools on the IRS website 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. The online tools include important, special steps related to Economic Impact Payments and advance Child Tax Credit payments. IRS.gov has many online tools and resources ranging from tax preparation and refund tracking tools, to tax law research tools like the Interactive Tax Assistant and answers for Frequently Asked Questions on dozens of subjects. Payment options Submitting a tax return and paying any amount owed as soon as possible can help taxpayers avoid further interest and penalties. Taxpayers who owe taxes can review all payment options online. These include paying taxes through an Online Account with IRS Direct Pay or paying by debit card, credit card or digital wallet. The IRS has options for people who can't pay their taxes, including applying for a payment plan on IRS.gov. IRS Free File Eligible individuals – including those who requested an extension to file – can use the IRS Free File program to prepare and file their federal tax return for free. The 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. Those that earned more have the option to use IRS Free File Fillable Forms. MilTax online software is also available for members of the military and certain veterans, regardless of income. This software is offered through the Department of Defense. Eligible taxpayers can use MilTax to prepare and electronically file their federal tax returns and up to three state returns, for free. Volunteer Income Tax Assistance The IRS's Volunteer Income Tax Assistance (VITA) program still offers face-to-face help preparing taxes in some locations in communities across the country. It offers free basic tax return preparation to people who generally make $58,000 or less and people with disabilities or limited English-speaking taxpayers. The VITA/TCE Site Locator can help eligible taxpayers find the nearest community-based site staffed by IRS-trained and certified volunteers. Taxpayers can use the locator tool to see if there's an available site still open near them. Tax professionals Many people use a trusted tax professional to help guide them through the process of doing their taxes and avoiding errors. There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys and many others who don't have a professional credential. Because tax professionals have access to an individual's personal and financial information, it's important to choose a tax preparer wisely. For taxpayers who want help with their taxes, this online directory can help them find a tax professional in their area.

https://www.irs.gov/newsroom/irs-extends-vita-and-tce-grants-application-deadline

IR-2022-115, June 1, 2022 WASHINGTON — The Internal Revenue Service 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. Grants.gov will continue accepting applications through June 17, 2022, for the TCE and VITA grant opportunities. Application packages and guidelines for 2022 are 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-seeks-to-offer-jobs-to-thousands-of-workers-this-summer

Updated 6/10/2022: In-person event updates Cancelled: Brookhaven, N.Y.; Oakland, Calif. and Memphis, Tenn. IR-2022-114, June 1, 2022 WASHINGTON — To boost its workforce and better help taxpayers and businesses, the Internal Revenue Service announced today that it's looking to hire over 4,000 contact representative positions at several IRS offices nationwide this summer. A contact representative provides administrative and technical assistance to individuals and businesses primarily over the phone, through written correspondence or in person. These full-time positions fall under a special hiring condition called direct-hire authority. Full-time, bilingual (Spanish) positions are also available. No prior tax experience is required. "The IRS continues to increase its workforce in 2022 to improve the taxpayer experience," said IRS Taxpayer Experience Officer and Wage and Investment Commissioner Ken Corbin. "We have a variety of jobs available all over the country. Contact representatives, among other things, deal directly with taxpayers by helping them with their tax obligations." The IRS offers competitive pay and benefits, on-the-job training, and opportunities for advancement. The pay range for these positions begin at a GS-05 level. Shift availabilities vary by location but there are openings for day shift, (hours between 6 a.m. – 6 p.m.) mid shift (10 a.m. – 10 p.m.) and swing shift (2 p.m. – 1:30 a.m.) in 22 cities nationwide, including Puerto Rico. Virtual information-sharing events The agency is hosting virtual information sharing events in June where the IRS will explain the required qualifications and job duties for the contact representative position and provide tips for navigating the application process. Participants will also hear from employees who will provide insights about the work they do day-to-day. Register for Friday, June 3rd at 12 p.m. EST Register for Tuesday, June 7th at 3 p.m. EST  Register for Friday, June 10th at 6 p.m. EST Register for Tuesday, June 14th at 12 p.m. EST Register for Tuesday, June 21st at 3 p.m. EST Register for Friday, June 24th at 6 p.m. EST In-person events In-person events will be held mostly in June, are open to the public and will be held in the following cities: Andover, Mass.; Atlanta, Ga.; Philadelphia, Pa.; Fresno, Calif.; Cincinnati, Ohio; and Caguas, Puerto Rico. Registration for these and more can be found on the IRS careers page. 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 or Social Security card). Qualified applicants will receive tentative job offers at the in-person events. Preregistration is recommended and social-distancing is required to attend the in-person job fairs. Per Centers for Disease Control and Prevention (CDC) guidelines, mask wear 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-warns-taxpayers-of-dirty-dozen-tax-scams-for-2022

IR-2022-113, June 1, 2022 WASHINGTON — The Internal Revenue Service today began its "Dirty Dozen" list for 2022, which includes potentially abusive arrangements that taxpayers should avoid. The potentially abusive arrangements in this series focus on four transactions that are wrongfully promoted and will likely attract additional agency compliance efforts in the future. Those four abusive transactions involve charitable remainder annuity trusts, Maltese individual retirement arrangements, foreign captive insurance, and monetized installment sales. "Taxpayers should stop and think twice before including these questionable arrangements on their tax returns," said IRS Commissioner Chuck Rettig. "Taxpayers are legally responsible for what's on their return, not a promoter making promises and charging high fees. Taxpayers can help stop these arrangements by relying on reputable tax professionals they know they can trust." The four potentially abusive transactions on the list are the first four entries in this year's Dirty Dozen series. In coming days, the IRS will focus on eight additional scams, with some focused on the average taxpayer and others focused on more complex arrangements that promoters market to higher-income individuals. "A key job of the IRS is to identify emerging threats to compliance and inform the public so taxpayers are not victimized, and tax practitioners can provide their clients the best advice possible," Rettig said. "The IRS views the four transactions listed here as potentially abusive, and they are very much on our enforcement radar screen." The IRS reminds taxpayers to watch out for and avoid advertised schemes, many of which are now promoted online, that promise tax savings that are too good to be true and will likely cause taxpayers to legally compromise themselves. Taxpayers, tax professionals and financial institutions must be especially vigilant and watch out for all sorts of scams from simple emails and calls to highly questionable but enticing online advertisements. The first four on the "Dirty Dozen" list are described in more details as follows: Use of Charitable Remainder Annuity Trust (CRAT) to Eliminate Taxable Gain. In this transaction, appreciated property is transferred to a CRAT. Taxpayers improperly claim the transfer of the appreciated assets to the CRAT in and of itself gives those assets a step-up in basis to fair market value as if they had been sold to the trust. The CRAT then sells the property but does not recognize gain due to the claimed step-up in basis. The CRAT then uses the proceeds to purchase a single premium immediate annuity (SPIA). The beneficiary reports, as income, only a small portion of the annuity received from the SPIA. Through a misapplication of the law relating to CRATs, the beneficiary treats the remaining payment as an excluded portion representing a return of investment for which no tax is due. Taxpayers seek to achieve this inaccurate result by misapplying the rules under sections 72 and 664. Maltese (or Other Foreign) Pension Arrangements Misusing Treaty. In these transactions, U.S. citizens or U.S. residents attempt to avoid U.S. tax by making contributions to certain foreign individual retirement arrangements in Malta (or possibly other foreign countries). In these transactions, the individual typically lacks a local connection, and local law allows contributions in a form other than cash or does not limit the amount of contributions by reference to income earned from employment or self-employment activities. By improperly asserting the foreign arrangement is a "pension fund" for U.S. tax treaty purposes, the U.S. taxpayer misconstrues the relevant treaty to improperly claim an exemption from U.S. income tax on earnings in, and distributions from, the foreign arrangement. Puerto Rican and Other Foreign Captive Insurance. In these transactions, U.S owners of closely held entities participate in a purported insurance arrangement with a Puerto Rican or other foreign corporation with cell arrangements or segregated asset plans in which the U.S. owner has a financial interest. The U.S. based individual or entity claims deductions for the cost of "insurance coverage" provided by a fronting carrier, which reinsures the "coverage" with the foreign corporation. The characteristics of the purported insurance arrangements typically will include one or more of the following: implausible risks covered, non-arm's-length pricing, and lack of business purpose for entering into the arrangement. Monetized Installment Sales. These transactions involve the inappropriate use of the installment sale rules under section 453 by a seller who, in the year of a sale of property, effectively receives the sales proceeds through purported loans. In a typical transaction, the seller enters into a contract to sell appreciated property to a buyer for cash and then purports to sell the same property to an intermediary in return for an installment note. The intermediary then purports to sell the property to the buyer and receives the cash purchase price. Through a series of related steps, the seller receives an amount equivalent to the sales price, less various transactional fees, in the form of a purported loan that is nonrecourse and unsecured. Taxpayers who have engaged in any of these transactions or who are contemplating engaging in them should carefully review the underlying legal requirements and consult independent, competent advisors before claiming any purported tax benefits. Taxpayers who have already claimed the purported tax benefits of one of these four transactions on a tax return should consider taking corrective steps, such as filing an amended return and seeking independent advice. Where appropriate, the IRS will challenge the purported tax benefits from the transactions on this list, and the IRS may assert accuracy-related penalties ranging from 20% to 40%, or a civil fraud penalty of 75% of any underpayment of tax. While this list is not an exclusive list of transactions the IRS is scrutinizing, it represents some of the more common trends and transactions that may peak during filing season as returns are prepared and filed. Taxpayers and practitioners should always be wary of participating in transactions that seem "too good to be true." The IRS remains committed to having a strong, visible, robust tax enforcement presence to support voluntary compliance. To combat the evolving variety of these potentially abusive transactions, the IRS created the Office of Promoter Investigations (OPI) to coordinate Servicewide enforcement activities and focus on participants and the promoters of abusive tax avoidance transactions. The IRS has a variety of means to find potentially abusive transactions, including examinations, promoter investigations, whistleblower claims, data analytics and reviewing marketing materials.

https://www.irs.gov/newsroom/security-summit-warns-tax-pros-of-evolving-email-and-cloud-based-schemes-to-steal-taxpayer-data

IR-2022-143, July 26, 2022 WASHINGTON — As part of a special Security Summit series, the Internal Revenue Service, state tax agencies and nation's tax industry warn tax professionals to beware of evolving scams designed to steal client data. The Security Summit partners continue to see instances where tax professionals have been vulnerable to identity theft phishing emails that pose as potential clients. The criminals then trick practitioners into opening email links or attachments that infect computer systems with the potential to steal client information. The Summit also warns tax professionals using cloud-based systems to store and prepare tax returns and information to make sure they use multi-factor authentication in light of recent attacks. Specifically, the Summit partners urge people using cloud-based platforms to use multi-factor options like phone, text or tokens. This can avoid potential vulnerabilities with authentication done just through email, which is easier for identity thieves to access. Avoiding these schemes is the second in a five-part series from the IRS, state tax agencies and the nation's tax community – working together as the Security Summit that highlight critical steps tax professionals can take to protect client data. The focus of the Security Summit series – part of the Protect Your Clients, Protect Yourself campaign – is to urge tax professionals to work to strengthen their systems and protect client data. "Identity theft scammers continually try new schemes to steal client personal and financial information from tax professionals. We continue to see a barrage of emails aimed at tax professionals trying to trick them into providing valuable access to identity thieves," said IRS Commissioner Chuck Rettig. "And we continue to urge people to use multi-factor authentication, including those using cloud-based services. Constant vigilance is necessary, not just during tax season but year-round. We urge tax pros, both large operations and smaller ones, to consider these invaluable recommendations to help protect their clients and themselves." Phishing emails or SMS/texts (known as "smishing") attempt to trick the recipient into disclosing personal information such as passwords, bank account numbers, credit card numbers or Social Security numbers. Tax pros are a common target. Scams may differ in themes, but they generally have two traits: They appear to come from a known or trusted source, such as a colleague, bank, credit card company, cloud storage provider, tax software provider or even the IRS and other government agencies. They create a false narrative, often with an urgent tone, to trick the receiver into opening a link or attachment. A specific kind of phishing email is called spear phishing. Rather than the scattershot nature of general phishing emails, scammers take time to identify their victim and craft a more enticing phishing email known as a lure. Scammers often use spear phishing to target tax professionals. In a reoccurring and very successful scam, criminals posed as potential clients, exchanging several emails with tax professionals before following up with an attachment that they claimed was their tax information. This scam gained energy as many tax professionals worked remotely and communicated with clients over email versus in-person or over the telephone because of the pandemic. Once the tax pro clicks on the embedded URL and/or opens the attachment, malware secretly downloads onto their computers, giving thieves access to passwords to client accounts or remote access to the computers themselves. Thieves then use this malware known as a remote access trojan (RAT) to take over the tax professional's office computer systems, identify pending tax returns, complete them and e-file them, changing only the bank account information to steal the refund. In the past, criminals have used ransomware attacks to shut down a variety of companies. Criminals can use similar, smaller scale tactics against tax pros. When the unsuspecting tax professional opens a link or attachment, malware attacks the tax pro's computer system to encrypt files and the thieves hold the data for ransom. Another emerging scheme the IRS has seen involves weak security from tax professionals using cloud-based systems to store client data. While many cloud-based systems are secure, tax professionals using these should ensure they're using strong multi-factor authentication on these to avoid thieves accessing their sensitive information. The IRS has observed multiple instances – frequently involving smaller tax professionals or businesses – where individual accounts on cloud-based platforms have been compromised. Identity thieves' access these and then use existing data from taxpayer returns to file new tax returns seeking refunds, frequently by mail. These cloud-based accounts are more vulnerable when tax pros do not use strong multi-factor authentication to validate who is using the platform. Summit partners urge using authentication methods besides email, which can be easier for thieves to access and allow entry into tax professional accounts. Using text, phone calls or tokens are safer options. These scams highlight the importance of the basic security steps recommended by the Security Summit to protect data: Using the two-factor (2FA) or the multi-factor authentication (MFA) option offered by tax preparation providers or storage providers would protect client accounts even if passwords were inadvertently disclosed. Keeping anti-virus software automatically updated also helps prevent scams that target software vulnerabilities. Using drive encryption and regularly backing up files helps stop theft and ransomware attacks. For tax professionals, securing their network to protect taxpayer data is their responsibility as a tax preparer. To help tax professionals guard against phishing scams and better protect taxpayer information, the IRS Publication 4557, Safeguarding Taxpayer DataPDF. This IRS publication contains some of the latest suggestions such as using the multi-factor authentication option offered by tax software products and helping clients get an Identity Protection Pin. Additional resources In addition to reviewing IRS Publication 4557, Safeguarding Taxpayer DataPDF, tax professionals can also get help with security recommendations by reviewing Small Business Information Security: The FundamentalsPDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax ProfessionalsPDF, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media. For more information, go to IRS.gov.

https://www.irs.gov/newsroom/new-irs-strategic-plan-agency-issues-five-year-plan-with-goal-to-help-taxpayers

IR-2022-142, July 20, 2022 WASHINGTON — The Internal Revenue Service today released a new five-year Strategic Plan that outlines its goals to improve taxpayer service and tax administration. The IRS Strategic Plan FY2022-2026 will serve as a roadmap to help guide the agency's programs and operations. The plan will also help meet the changing needs of taxpayers and members of the tax community. "Through the Strategic Plan, we want to share our priorities and how they shape the important work that takes place at the IRS, year in and year out, to help taxpayers," said IRS Commissioner Chuck Rettig. "We serve and interact with more Americans than nearly any other public or private organization. The IRS has undergone tremendous change over the last five years, and we continue to evolve to better serve the nation's taxpayers." The Strategic Plan, developed with input from external partners as well as IRS employees, focuses on four goals that will help improve customer service: Service – Provide quality and accessible services to enhance the taxpayer experience. Enforcement – Enforce the tax law fairly and efficiently to increase voluntary compliance and narrow the tax gap. People – Foster an inclusive, diverse and well-equipped workforce and strengthen relationships with our external partners. Transformation – Transform IRS operations to become more resilient, agile and responsive to improve the taxpayer experience and narrow the tax gap. As the IRS works to achieve these goals, it will continue to uphold taxpayer rights and enforce the tax code fairly to improve the taxpayer experience. Under the Taxpayer Bill of Rights, every taxpayer has fundamental rights of which they should be aware when dealing with the agency.

https://www.irs.gov/newsroom/2021-tax-extension-filers-dont-need-to-wait-until-october-17

IR-2022-141, July 19, 2022 WASHINGTON — The Internal Revenue Service is reminding the estimated 19 million taxpayers who requested an extension to file their 2021 tax return that they 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. Taxpayers who have questions can get help with most tax issues online or by phone. The IRS.gov website has free and easy to use online tools and resources to help taxpayers get answers 24 hours a day. Voice bots help callers navigate interactive voice responses to simple payment or notice questions, and quickly get responses to Frequently Asked Questions. The Interactive Tax Assistant is a tool that provides answers to several tax law questions specific to individual circumstances based on input. It can determine if an individual must file a tax return, their filing status, if they can claim a dependent, if an income type is taxable, and their eligibility to claim a credit or deduct certain expenses. Electronic filing options The IRS advises individuals who still need to file a 2021 tax return to file electronically and, if due a refund, to choose direct deposit. Filing electronically is fast, accurate and secure, and when an individual chooses direct deposit, their refund goes directly from the IRS into their bank or financial account getting them their refund in the fastest time possible. If they have a prepaid debit card, they may be able to have their refund applied to the card by providing the account and routing number to the IRS. The IRS processes most e-filed returns and issues direct deposit refunds in less than 21 days. Eligible individuals can use the IRS Free File program to prepare and file their 2021 federal tax return for free. Taxpayers can choose the brand-name tax preparation software company that is best for them. Some even offer free state tax return preparation. Those who earned more than $73,000 have the option to use IRS Free File Fillable Forms. MilTax online software is also available for members of the military and certain veterans, regardless of income. This software is offered through the Department of Defense. Eligible taxpayers can use MilTax to prepare and electronically file their federal tax returns and up to three state returns for free.  Volunteer Income Tax Assistance  The IRS's Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to people who generally make $58,000 or less and people with disabilities or limited English-speaking taxpayers. While the majority of these sites are only open through the end of the filing season, taxpayers can use the VITA Site Locator tool to see if there's a community-based site staffed by IRS-trained and certified volunteers still open near them. Tax professionals There are also various types of tax return preparers who can help, including certified public accountants, enrolled agents, attorneys and others who don't have a professional credential. Taxpayers should choose a tax preparer wisely. For individuals who want help with their taxes, the IRS online directory can assist in finding a tax professional in their area. Get current on taxes The IRS sends correspondence to a taxpayer's last known address, usually the address from their most recently filed tax return. If the taxpayer moves and does not send a change of address to the IRS, they may not receive an IRS notice and could miss the deadline to respond. There's no penalty for not filing a return if due a refund, but there's also no statute of limitations for assessing and collecting taxes due if no return has been filed. Interest is charged on any tax not paid by the April due date and will accrue until paid in full. Individual taxpayers are charged the federal short-term interest rate plus 3 percentage points, currently 5% per year, compounded daily. Penalties will accrue for each month tax remains unpaid until maxed out at 25% of the unpaid tax. Submitting a tax return and paying any amount owed as soon as possible can help taxpayers avoid further interest and penalties. Taxpayers who owe taxes can review all payment options online. These include paying taxes through an Online Account with IRS Direct Pay or paying by debit card, credit card or digital wallet. The IRS has options for people who can't pay their taxes, including applying for a payment plan on IRS.gov. For more information, see: IRS encourages taxpayers with October filing extensions and others who still need to file Do I Need to File a Tax Return What to Do if You Haven't Filed Your Tax Return Voice bot video Self-service options

https://www.irs.gov/newsroom/security-summit-identity-protection-pins-provide-an-important-defense-against-tax-related-identity-theft

IR-2022-140, July 19, 2022 WASHINGTON — The Security Summit partners today encouraged tax professionals to increase their efforts to inform clients about the IRS Identity Protection PIN Opt-In Program to help protect people against tax-related identity theft. The IP PIN serves as a critical defense against identity thieves. The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit – need assistance from tax professionals to let their clients know that IP PINs are now available to anyone who can verify their identity. Sharing information about the IP PIN Opt-In Program is the first in a five-part weekly summer series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data – and their businesses. The series is an effort to urge tax professionals to intensify efforts to secure their systems and protect client data during the summer and throughout the year. These alerts will be issued each Tuesday for five weeks to coincide with the IRS Nationwide Tax Forums, which helps educate tax professionals on security and other important topics. "These identity protection numbers provide an extra layer of safety to protect people against tax-related fraud tied to using stolen personal information," said IRS Commissioner Chuck Rettig. "Following work by the IRS, the IP PIN program is now available to anyone who can verify their identity. We urge tax professionals to encourage their clients to protect themselves through the IP PIN program." The Electronic Tax Administration Advisory Committee, or ETAAC, last month highlighted the importance of the IP PIN to taxpayers and tax professionals. "The IP PIN is the number one security tool currently available to taxpayers from the IRS," the independent advisory group said in its annual report to Congress. "This tool is the key to making it more difficult for criminals to file false tax returns in the name of the taxpayer. In our view, the benefits of increased IP PIN use are many." The ETAAC also recommended the IRS continue to highlight and promote the IP PIN through a public awareness effort. The IRS will be taking steps to do that, including building off awareness of special items including Publication 5367, IP PIN Opt-In Program for TaxpayersPDF, in English and Spanish, so that tax professionals could print and share the IP PIN information with clients. There are also special posters available in EnglishPDF and SpanishPDF. For security reasons, tax professionals cannot obtain an IP PIN on behalf of clients. Taxpayers must obtain their own IP PIN.  Summit partners urged taxpayers and tax professionals to be careful and protect the IP PIN from identity thieves. Taxpayers should share their IP PIN only with their trusted tax prep provider. Tax professionals should never store clients' IP PINs on computer systems. Also, the IRS will never call, email or text either taxpayers or tax preparers to request the IP PIN. Tax professionals who experience a data theft can assist clients by urging them to quickly obtain an IP PIN. Even if a thief already has filed a fraudulent return, an IP PIN would still offer protections for later years and prevent taxpayers from being repeat victims of tax-related identity theft. Here are a few things taxpayers should know about the IP PIN: It's a six-digit number known only to the taxpayer and the IRS. The opt-in program is voluntary. The IP PIN should be entered onto the electronic tax return when prompted by the software product or onto a paper return next to the signature line. The IP PIN is valid for one calendar year; taxpayers must obtain a new IP PIN each year. Only taxpayers who can verify their identities may obtain an IP PIN. IP PIN users should never share their number with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email or text a request for the IP PIN. To obtain an IP PIN, the best option is the Get an IP PIN, the IRS online tool. Taxpayers must validate their identities through Secure Access Digital Identity initiative (SADI) to access the tool and their IP PIN. Before attempting this rigorous process, see How to Register for Certain Online Self-Help Tools. If taxpayers are unable to validate their identity online and if their income is below $73,000 for individuals or below $146,000 for married couples, they may file Form 15227, Application for an Identity Protection Personal Identification NumberPDF. The IRS will call the telephone number provided on Form 15227 to validate their identity. However, for security reasons, the IRS will assign an IP PIN for the next filing season. The IP PIN cannot be used for the current filing season. Taxpayers who cannot validate their identities online, or on the phone with an IRS employee after submitting a Form 15227, or who are ineligible to file a Form 15227 may call the IRS to make an appointment at a Taxpayer Assistance Center. They will need to bring one picture identification document and another identification document to prove their identity. Once verified, the taxpayer will receive an IP PIN via U.S. Postal Service within three weeks. The IP PIN process for confirmed victims of identity theft remains unchanged. These victims will automatically receive an IP PIN each year. Additional resources Tax professionals also can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer DataPDF, and Small Business Information Security: The FundamentalsPDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax ProfessionalsPDF, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media. For more information, go to IRS.gov.

https://www.irs.gov/newsroom/irs-revises-frequently-asked-questions-about-the-2021-child-tax-credit-and-advance-child-tax-credit

IR-2022-139, July 14, 2022 WASHINGTON — The IRS today issued a revised set of frequently asked questions for the 2021 Child Tax Credit. These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-32PDF, July 14, 2022. The FAQ revisions are: Topic B  — Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: removed question 7 and renumbered question 8. More information about reliance is available. IRS-FAQ

https://www.irs.gov/newsroom/free-irsftc-webinar-to-focus-on-scams-id-theft-and-ip-pins

IR-2022-138, July 14, 2022 WASHINGTON — The Internal Revenue Service and the Federal Trade Commission will sponsor a free webinar designed to help everyone recognize and combat tax scams and tax-related identity theft. The webinar will also explain how any individual taxpayer can receive an added layer of identity protection by applying for an Identity Protection Personal Identification Number (IP PIN) from the IRS. The one-hour webinar will take place on Wednesday, July 20 at 2 p.m. Eastern Time. Open to all, the webinar will cover the following topics: Common consumer and tax-related identity theft scams. Methods for reporting and recovering from identity theft. How identity thieves trick their victims into providing personally identifiable and financial information. IRS's Identity Protection Personal Identification Number Program. How to avoid unscrupulous tax return preparers. Resources to protect against identity thieves. How the Security Summit is working to protect taxpayers. The webinar will be closed captioned and feature a question-and-answer session. To register for the webinar, visit the Internal Revenue Service Webinar Registration page on IRS.gov. For questions about the webinar, send an email to cl.sl.web.conference.team@irs.gov. Whether attending the webinar or not, anyone can get more information about recognizing and combating tax-related ID theft at IRS.gov/identitytheft. To apply for an IP PIN or for more information about the Identity Protection Personal Identification Number program, visit IRS.gov/ippin.

https://www.irs.gov/newsroom/special-virtual-sessions-coming-up-for-those-interested-in-compliance-positions-irs-hiring-470-revenue-agents

IR-2022-136, July 12, 2022 WASHINGTON — The Internal Revenue Service, one of the largest single employers of professional accountants, is now hiring 470 revenue agents who will specialize in auditing or examining both individual and business taxpayers nationwide. Known officially as Internal Revenue Agents, these positions are at grades 5-12 in the federal civil service system with a base pay ranging from $31,083 to $68,299. New hires will join the agency's Small Business Self Employed (SB/SE) division, where they will combine talents in accounting and tax law to examine and determine the correct tax liability for a variety of both individual and business taxpayers, including sole proprietorships, small corporations, partnerships, and fiduciaries. They will also be responsible for identifying potential fraud, tax schemes and abusive tax shelters. To qualify for one of these positions, an applicant must have a bachelor's or higher degree in accounting from an accredited college or university that includes: At least 30 semester hours (45 quarter hours) in accounting, or   24 semester hours in accounting and an additional 6 semester hours in related subjects such as business law, economics, statistical/quantitative methods, computerized accounting or financial systems, financial management or finance, or   A combination of experience and education or a certificate as a Certified Public Accountant. Throughout July, the IRS is holding a series of virtual information sessions for interested applicants. These sessions provide an overview of the position, benefits of working at the IRS, how to apply for the position, and a Q&A session. Here is the schedule: July 14, 2022 – 3 p.m. ET July 18, 2022 – 1 p.m. ET July 21, 2022 – 3 p.m. ET July 25, 2022 – 3 p.m. ET To attend any of these events, register at USAJOBS - Events.

https://www.irs.gov/newsroom/irs-security-summit-renews-warnings-for-tax-pros-to-guard-against-identity-theft-amid-continued-threats

IR-2022-135, July 12, 2022 WASHINGTON — As the battle continues against tax-related identity theft, the IRS, state tax agencies and the tax industry renewed their call for tax professionals to be on guard against new and ongoing threats involving their systems and taxpayer data. This effort begins next week with the Security Summit's annual summer campaign focused on tax professionals and taking fundamental steps to stop data theft from their offices. This is the seventh year that the Security Summit partners – the IRS, state tax agencies and the nation's tax community – have worked to raise awareness about these issues through the "Protect Your Clients; Protect Yourself" campaign. The special five-part news release series will begin July 19 and run every Tuesday through August 16, which coincides with the dates for this year's IRS Nationwide Tax Forum. The forum will feature 32 webinars to help educate the tax professional community, and several involve security-related features. This Thursday, July 14, is the last day for tax professionals to register to attend and have access to all 32 webinars. For more information and to register, visit IRS Nationwide Tax Forum. "The IRS and the Security Summit partners continue to advance their shared efforts to protect the federal and state tax systems from identity thieves," said IRS Commissioner Chuck Rettig. "As we've increased our defenses, cyberthieves increasingly turn to tax professionals, especially smaller operations, to look for security vulnerabilities. This is a critical link in protecting sensitive taxpayer information. By taking some basic security steps, tax pros help protect against the relentless efforts of identity thieves." This summer's effort 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. Identity thieves were especially active this past year as they continued to use the pandemic, nationwide teleworking practices and other events as predatory tactics for a variety of scams. Tax professionals are prime targets of criminal syndicates that are both tech- and tax-savvy and well-funded. These scammers either trick or hack their way into tax professionals' computer systems to access client data. Even when tax pros think they have client data stored in a secure cloud, lack of strong authentication can make this information vulnerable. Thieves can use stolen data to file fraudulent tax returns that make it more difficult for the IRS and the states to detect because the fraudulent returns use real financial information. Other data thieves sell the basic tax preparer or taxpayer information on the web so other fraudsters can try filing fraudulent tax returns. The Security Summit formed in 2015 to join the fight against identity theft. The Summit partners made great inroads against tax-related identity theft, dramatically reducing confirmed identity theft returns and saving billions in tax dollars. During the next five weeks, the Security Summit partners will highlight a series of simple actions that tax professionals can take to better protect their clients and themselves from sensitive data theft. Taking these steps now will help ensure that the progress in tax-related identity theft that started in 2015 continues. Highlighted recommendations will be to: Sign up clients for Identity Protection PINs. The IRS now offers IP PINs to all taxpayers who can verify their identities online, on the phone with an IRS employee after filing a Form 15227 or in person. The IP PIN is a six-digit number that is known only to the taxpayer and the IRS. It helps prevent an identity thief from filing a fraudulent return in the taxpayer's name. Tax professionals cannot obtain an IP PIN for their clients. Clients must verify their identities to the IRS. The easiest way is at the Get an IP PIN tool on IRS.gov. The IRS Electronic Tax Administration Advisory Committee recently described the IP PIN as" the number one security tool currently available to taxpayers from the IRS. This tool is the key to making it more difficult for criminals to file false tax returns in the name of the taxpayer." Avoid spear phishing scams. One of the most successful tactics used by identity thieves against tax professionals is the spear phishing scam. Thieves take time to craft personalized emails to entice tax professionals to open a link embedded in the email or open an attachment. Tax pros have been especially vulnerable to spear phishing scams from thieves posing as potential clients. Thieves might carry on an email conversation with their target for several days before sending the email containing a link or attachment. The link or attachment may secretly download software onto the tax pros' computers that will give thieves remote access to the tax professionals' systems. Know the tell-tale signs of identity theft. Many tax professionals who report data thefts to the IRS also say that they were unaware of the signs that a theft had occurred. There are many signs that tax pros should watch for. These include multiple clients suddenly receiving IRS letters requesting confirmation that they filed a tax return deemed suspicious. Tax professionals may see e-file acknowledgements for far more tax returns than they filed. Computer cursors may move seemingly on their own. Create a security plan. Not only is it a good practice, the IRS also reminds tax professionals that federal law, enforced by the Federal Trade Commission, requires paid tax return preparers to create and implement a data security plan. An information security plan protects the business and client information while also providing a blueprint for action in the event of a security breach. For many tax professionals, knowing where to start when developing a written security plan presents challenges. There are resources available to assist like IRS Publication 4557, Safeguarding Taxpayer DataPDF. Other resources to help tax pros will be highlighted in an upcoming news release. Help clients protect themselves whether working from home or traveling. With the continuation of work-from-home policies for many organizations, taxpayers may find themselves conducting their affairs – whether personal, business or financial – in a different way. Tax pros can help their clients protect themselves by sharing key bits of information on computer security. These cyber-smart tactics protect not only the tax professional, but their clients alike. This summer series runs for five weeks and coincides with the annual IRS Nationwide Tax Forums, which are being held virtually beginning July 19. The forums feature three webinars focused on cyber- and information security that will be live streamed as follows: Cybersecurity for Tax Professionals – Advanced Session, presented by the American Coalition for Taxpayer Rights, July 21 at 2 p.m. ET. Deeper Dive into Emerging Cyber Crimes and Crypto Tax Compliance, July 26 at 11 a.m. ET. Helping You and Your Clients Steer Clear of Fraud and Scams, presented by the Treasury Inspector General for Tax Administration, August 2 at 11 a.m. ET. For more information about the IRS Nationwide Tax Forums and to register visit IRS Nationwide Tax Forums.

https://www.irs.gov/newsroom/irs-nationwide-tax-forum-kicks-off-july-19

July 14 is the last day to register for all 32 webinars IRS YouTube Video: 2022 IRS Nationwide Tax Forum IR-2022-134, July 11, 2022 WASHINGTON — This Thursday, July 14, is the last day for tax professionals to register to attend the 2022 IRS Nationwide Tax Forum and have access to all 32 webinars — including a keynote address by IRS Commissioner Chuck Rettig, updates on tax law, cybersecurity, practitioner ethics and more. The 2022 virtual event is being held over a five-week period from July 19 through August 18. Webinars will be livestreamed on Tuesdays, Wednesdays and Thursdays of each week. To guarantee access to a webinar, registration must be completed a minimum of three business days in advance. Participants who register after July 14 will not have access to the full lineup of webinars. Participants are encouraged to view the Forum schedule and course descriptions to plan their experience. For more information and to register, visit IRS Nationwide Tax Forum. Tax Forum Virtual Expo Included with their registration, attendees may also visit the Forum's Virtual Expo with dozens of exhibitors representing tax and business services, IRS association partners and key IRS offices and initiatives in the "IRS Zone." The Expo will be staffed from noon-2 p.m. and 3-5 p.m. EDT every Tuesday, Wednesday and Thursday, permitting attendees to interact with exhibitors. However, registrants will have access to most Expo content 24 hours a day from for the entire length of the Forum. Focus groups and digital product demos As a special feature of the 2022 Forum, the IRS invites attendees to participate in one or more virtual focus groups. Focus groups are arranged around the following topics: Improving the Taxpayer Experience and IRS Services Improving the Taxpayer Experience and IRS Outreach Tax Pro Account and Business Online Account Digital Asset Transactions Tax Treatment of Retirement Distributions Affordable Care Act Forms IRS Online Accounts Responding to IRS Correspondence Audit Notices Taxpayer civil rights: Are your clients receiving the services they need? Online tools and resources for refundable credits: The past, the present, and the future In addition to our focus groups, the Office of Online Services will conduct demonstrations of the IRS tax pro and individual online accounts. Continuing Education (CE) Attendance at any of the 2022 Nationwide Tax Forum webinars qualifies as continuing education (CE) for enrolled agents, certified public accountants, Annual Filing Season Program participants, California Tax Education Council (CTEC) participants and Certified Financial Planners (CFP). Note: With four seminars this year presented in both English and Spanish, participants can earn up to 28 continuing education credits. Attorneys: Please check with your state bar to determine whether participation in the IRS Nationwide Tax Forum seminars qualifies for continuing legal education credit. Visit the CE and CFP Certification page for more information. Registration information For more information and to register online, visit IRS Nationwide Tax Forum.

https://www.irs.gov/newsroom/september-is-national-preparedness-month-irs-urges-everyone-to-update-and-secure-their-records-to-prepare-now-for-natural-disasters

IR-2022-156, August 29, 2022 WASHINGTON — September is National Preparedness Month. With the height of hurricane season fast approaching and the ongoing threat of wildfires in many places, the Internal Revenue Service urges everyone to develop an emergency preparedness plan, or if they already have one, update it for 2022. Everyone, from individuals to organizations and businesses, can start now by: Securing and duplicating essential tax and financial documents. Creating lists of property. Knowing where to find information once a disaster occurs. In the aftermath of a disaster, having the updated documents and other information readily available can help victims apply for the relief available from the IRS and other agencies. Disaster assistance and emergency relief may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area. Start secure Taxpayers should keep critical original documents inside waterproof containers in a secure space. These include tax returns, birth certificates, deeds, titles, insurance policies and other similarly important items. In addition, consider having a relative, friend or other trusted person retain duplicate copies of these documents at a location outside the potentially impacted disaster area. Make copies If original documents are available only on paper, try scanning them into a digital file format. Saving them in a secure digital location, like a cloud-based storage application, can provide added security and portability. Document valuables Maintain a detailed inventory of your property and business contents. Taxpayers can take photos or videos to record their possessions but should also write down descriptions including year, make and model numbers, where appropriate. After a disaster hits, this kind of documentation can help support claims for insurance or tax benefits. The IRS disaster-loss workbooks can help individualsPDF and businessesPDF compile lists of belongings or business equipment. Employer fiduciary bonds Employers using payroll service providers should check if their provider has a fiduciary bond in place to protect the employer against a possible provider default. Most employers already use the Electronic Federal Tax Payment System (EFTPS) to make their federal tax deposits and business tax payments. Because these payments can easily be made either by phone or online, EFTPS offers an especially convenient option when a disaster may displace many businesses and their employees. It's also easy to track tax payments and receive email alerts through EFTPS. Any business that doesn't have one can create an EFTPS account. Know where to go Reconstructing records after a disaster may be required for tax purposes, getting federal assistance or insurance reimbursement. Most financial institutions can provide statements and documents electronically, an option that can aid the reconstruction process. For tips on reconstructing records, visit IRS's Reconstructing Records. IRS is ready to help Following a federal disaster declaration, the IRS may postpone various tax filing and tax payment deadlines or provide other relief. For a list of localities qualifying for relief and details on relief available, visit the IRS Tax Relief in Disaster Situations webpage or Around the Nation on IRS.gov. The IRS identifies taxpayers located in the covered disaster area and automatically applies filing and payment relief. This means taxpayers whose IRS address of record is located in the disaster area do not need to contact the IRS to get disaster tax relief. In addition, many taxpayers living outside the disaster area may also qualify for relief. This includes those assisting with disaster relief and taxpayers whose records necessary to meet a filing or payment deadline postponed during the relief period, are located in the disaster area. Eligible individuals and businesses located outside the disaster area can request relief by calling the IRS disaster hotline at 866-562-5227. In addition, a special rule allows both individuals and businesses to choose to deduct uninsured or unreimbursed disaster losses on either the tax return for the year the disaster occurred, or the return for the previous year. For more information, see Publication 547, Casualties, Disasters, and Thefts. For more information about National Preparedness Month, visit National Preparedness Month. Related items: Publication 3067, IRS Disaster Assistance - Federally Declared Disaster AreaPDF Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)PDF Publication 584-B, Business Casualty, Disaster, and Theft Loss WorkbookPDF Publication 5307, Tax Reform: Basics for Individuals and FamiliesPDF Publication 583, Starting a Business and Keeping RecordsPDF Publication 547, Casualties, Disasters, and TheftsPDF Reconstructing Records After a Natural Disaster or Casualty Loss Tax Relief in Disaster Situations Federal Emergency Management Agency Small Business Administration DisasterAssistance.gov Ready.gov

https://www.irs.gov/newsroom/covid-tax-relief-irs-provides-broad-based-penalty-relief-for-certain-2019-and-2020-returns-due-to-the-pandemic-1-point-2-billion-in-penalties-being-refunded-to-1-point-6-million-taxpayers

IR-2022-155, August 24, 2022 WASHINGTON — To help struggling taxpayers affected by the COVID-19 pandemic, the Internal Revenue Service today issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or 2020 returns late. The IRS is also taking an additional step to help those who paid these penalties already. Nearly 1.6 million taxpayers will automatically receive more than $1.2 billion in refunds or credits. Many of these payments will be completed by the end of September. Besides providing relief to both individuals and businesses impacted by the pandemic, this step is designed to allow the IRS to focus its resources on processing backlogged tax returns and taxpayer correspondence to help return to normal operations for the 2023 filing season. "Throughout the pandemic, the IRS has worked hard to support the nation and provide relief to people in many different ways," said IRS Commissioner Chuck Rettig. "The penalty relief issued today is yet another way the agency is supporting people during this unprecedented time. This penalty relief will be automatic for people or businesses who qualify; there's no need to call." The relief applies to the failure to file penalty. The penalty is typically assessed at a rate of 5% per month, up to 25% of the unpaid tax when a federal income tax return is filed late. This relief applies to forms in both the Form 1040 and 1120 series, as well as others listed in Notice 2022-36, posted today on IRS.gov. To qualify for this relief, any eligible income tax return must be filed on or before September 30, 2022. In addition, the IRS is providing penalty relief to banks, employers and other businesses required to file various information returns, such as those in the 1099 series. To qualify for relief, the notice states that eligible 2019 returns must have been filed by August 1, 2020, and eligible 2020 returns must have been filed by August 1, 2021. Because both of these deadlines fell on a weekend, a 2019 return will still be considered timely for purposes of relief provided under the notice if it was filed by August 3, 2020, and a 2020 return will be considered timely for purposes of relief provided under the notice if it was filed by August 2, 2021. The notice provides details on the information returns that are eligible for relief. The notice also provides details on relief for filers of various international information returns, such as those reporting transactions with foreign trusts, receipt of foreign gifts, and ownership interests in foreign corporations. To qualify for this relief, any eligible tax return must be filed on or before September 30, 2022. Relief is automatic; most of $1.2 billion in refunds delivered to eligible taxpayers by next month Penalty relief is automatic. This means that eligible taxpayers need not apply for it. If already assessed, penalties will be abated. If already paid, the taxpayer will receive a credit or refund. As a result, nearly 1.6 million taxpayers who already paid the penalty are receiving refunds totaling more than $1.2 billion. Most eligible taxpayers will receive their refunds by the end of September. Penalty relief is not available in some situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. For details, see Notice 2022-36, available on IRS.gov. This relief is limited to the penalties that the notice specifically states are eligible for relief. Other penalties, such as the failure to pay penalty, are not eligible. But for these ineligible penalties, taxpayers may use existing penalty relief procedures, such as applying for relief under the reasonable cause criteria or the First Time Abate program. Visit IRS.gov/penaltyrelief for details. "Penalty relief is a complex issue for the IRS to administer," Rettig said. "We've been working on this initiative for months following concerns we've heard from taxpayers, the tax community and others, including Congress. This is another major step to help taxpayers, and we encourage those affected by this to review the guidelines."

https://www.irs.gov/newsroom/irs-appeals-invites-input-on-enhancing-video-conference-options-for-taxpayers-and-tax-professionals

IR-2022-154, August 18, 2022 WASHINGTON — The IRS Independent Office of Appeals invites public input on best practices for conducting video conferences with taxpayers and tax professionals who have cases pending before Appeals. Appeals' mission is to resolve federal tax disputes without litigation in a way that's fair and impartial to taxpayers and the government. If a case qualifies for an appeal, the office will review the issues with a fresh, objective perspective and schedule a conference with the taxpayer or their representative. Appeals offers conferences by telephone, video or in person, and can also resolve a taxpayer's dispute through correspondence. Generally, it's the taxpayer's or representative's choice how they meet with Appeals. The type of conference chosen doesn't impact Appeals' decision; employees can successfully resolve taxpayer disputes with the IRS using each type of conference. To meet taxpayer needs during the COVID-19 pandemic, Appeals expanded access to video conferences. A video conference allows taxpayers to be both seen and heard, and to visually share documents without going to an Appeals office. During the pandemic, Appeals received positive feedback from taxpayers and tax professionals about the availability and utility of video conferences. Video conferences will remain an option in Appeals. With the return of IRS employees to the office this summer, Appeals is pleased to resume in-person conferences along with virtual options to accommodate taxpayers' preferred choice of conference. Public input sought for permanent video conference guidance In March 2021, in the midst of the COVID-19 pandemic, Appeals issued interim guidancePDF requiring employees to conduct video conferences when requested by taxpayers or their representatives. The guidance describes in detail the employee responsibilities for scheduling and conducting the video conference, procedures for verifying authorized participants and necessary technology prerequisites. The guidance also includes basic recommendations for establishing a professional meeting environment, such as reducing extraneous background distractions, muting audio when not speaking to avoid interruptions and ensuring Appeals employees' names are displayed for taxpayers. As Appeals prepares to update the Internal Revenue Manual with permanent guidelines for conducting video conferences and updates to the video conferencing platform technology (Microsoft Teams), they welcome input from taxpayers and tax professionals on how video conference technology can best be used in a taxpayer's Appeals hearing. Appeals has already heard some common themes from taxpayers and tax professionals: When managed effectively, video conferences can often provide a better taxpayer experience than a telephone conference. Some taxpayers feel they're better able to present their case. The role of the Appeals employee leading the conference is critical. That employee should ensure every participant is introduced and participants turn on their cameras. Video conferences that allow for screen sharing of documents can lead to a more comprehensive discussion of the issues and, potentially, earlier resolution for the taxpayer. Taxpayers for whom video conferencing technology is a challenge should not be disadvantaged by their inability to participate in an Appeals conference by video. Appeals should endeavor to keep technical requirements for video conferences to a minimum and ensure other channels for conducting an Appeals conference (such as in person or by telephone) remain available for these taxpayers. Appeals welcomes comments on all aspects of video conferencing to help inform IRS policies for conducting video conferences with taxpayers into the future. Public comments can be sent to ap.taxpayer.experience@irs.gov by Wednesday, November 16, 2022.

https://www.irs.gov/newsroom/2021-tax-extension-filers-dont-overlook-these-important-tax-benefits

IR-2022-153, August 18, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers who've yet to file their 2021 federal income tax return to make sure they take advantage of the deductions and credits for which they're entitled and to file electronically as soon as possible. "Each year, eligible taxpayers overlook money saving deductions and credits that can help them with the cost of raising a family, daycare, paying for college, saving for retirement or making a donation to charity," said IRS Commissioner Chuck Rettig. "We want to ensure they're aware of all the tax benefits for which they may qualify." This year, the IRS received about 19 million requests for extensions to file until October 17. Those who qualify can prepare and file their return for free with IRS Free File. Electronically filing and choosing direct deposit can help taxpayers get their refund faster. If they owe, sending the tax return with full payment prevents additional interest and penalties. There's no penalty for failure to file if the taxpayer is due a refund. Filing tips for taxpayers who haven't filed their 2021 tax return are available on IRS.gov. Taxpayers should consider the following tax benefits when filing their tax return: Earned Income Tax Credit: Qualified low- to moderate-income workers and families may get a tax break.   Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021.   Child and Dependent Care Credit: Families who pay expenses for the care of a qualifying individual 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.   Recovery Rebate Credit (RRC): 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.   Deduction for gifts to charity: The majority of taxpayers who take the standard deduction can deduct eligible cash contributions they made to charity 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.   American Opportunity Tax Credit and the Lifetime Learning Credit: Tax credits for higher education can help offset taxpayers' tuition and other costs by reducing the amount of tax owed on their tax return.   Retirement Savings Contributions Credit (Saver's Credit): A tax credit is available for making eligible contributions to an individual retirement account or employer-sponsored retirement plan. Helpful reminders The IRS urges taxpayers to ensure they have all their year-end statements in hand before filing their 2021 return. Besides 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 their 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. 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. Adjust 2022 withholding now to avoid tax surprises next year Summer is a great time for taxpayers to check their 2022 withholding to avoid a tax surprise when they file next year. Life events like marriage, divorce, having a child or a change in income can affect taxes. Too little tax withheld can lead to a tax bill or penalty. Too much can mean the taxpayer won't have use of the money until they get their tax refund in 2023. The IRS Tax Withholding Estimator on IRS.gov helps employees assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding. If a change is recommended, the estimator will provide instructions to update their withholding with their employer, either online or by submitting a new Form W-4, Employee's Withholding Allowance Certificate. Find a Taxpayer Assistance Center  The Taxpayer Assistance Center Locator tool has a new look and feel, featuring a dynamic map, a directions button and two tabs for entering search criteria. It's important to remember that Taxpayer Assistance Centers operate by appointment only. Taxpayers must make an appointment by calling the number for the office they want to visit. Read information in other languages Many pages on IRS.gov are now available in Spanish, Vietnamese, Russian, Korean, Haitian Creole and Chinese. Some of the multilingual resources include the Taxpayer Bill of Rights, e-file resources and many tax forms and publications.

https://www.irs.gov/newsroom/irs-adds-new-information-in-traditional-chinese-to-help-with-tax-authorizations-part-of-growing-multilingual-effort-to-support-taxpayers-and-help-tax-pros-third-party-designees

IR-2022-152, August 17, 2022 WASHINGTON — As part of a larger effort to expand tax resources in more languages, the Internal Revenue Service announced today the addition of a translation of the Instructions for Form 8821, Tax Information Authorization (in traditional Chinese). A Tax Information Authorization (TIA) is a critical form often used in assisting taxpayers with their IRS tax matters. Form 8821 is a taxpayer's written authorization designating one or more third parties, including an entity, to receive and view the taxpayer's information. The designee(s) may inspect or receive confidential tax information for the tax matters, forms and periods specified on Form 8821. This authorization includes the right to receive verbal and written account information (e.g., transcripts) and copies of IRS notices. The designee(s) of a TIA can be anyone the taxpayer chooses, including family and friends. Form 8821 and its instructions were already available in English and Spanish; also making the instructions available in traditional Chinese will expand access and understanding of this important process. "This is another step we've taken in our ongoing efforts to do more to help taxpayers in their most comfortable language," said IRS Commissioner Chuck Rettig. "Providing Chinese-language instructions for this form helps ensure additional taxpayers with limited English proficiency can understand the authorization they're giving to those who are helping them with tax matters." While Form 8821 is not yet available in traditional Chinese, the Instructions for Form 8821 (zh-t) in traditional Chinese joins other multilingual forms and publications available to assist tax professionals and third-party designees: Form 8821, Tax Information Authorization (in Spanish)PDF Instructions for Form 8821, Tax Information Authorization (in Spanish)PDF Form 2848, Power of Attorney and Declaration of Representative (in Spanish)PDF Instructions for Form 2848, Power of Attorney and Declaration of Representative (in Spanish)PDF Publication 947, Practice Before the IRS and Power of Attorney (in Spanish)PDF Publication 947, Practice Before the IRS and Power of Attorney (in Simplified Chinese)PDF Publication 947, Practice Before the IRS and Power of Attorney (in Korean)PDF Publication 947, Practice Before the IRS and Power of Attorney (in Russian)PDF Publication 947, Practice Before the IRS and Power of Attorney (in Vietnamese)PDF Circular 230, Regulations Governing Practice before the Internal Revenue Service (in Spanish)PDF Most tax professionals now use the online Tax Pro Account at IRS.gov/taxproaccount. Tax Pro Account allows for faster processing of certain Form 8821 authorizations versus filing Form 8821; most online requests record immediately to the Centralized Authorization File (CAF). See the Instructions for Form 8821 for details. Increasing the availability of services and tax products that are easy to use and support the needs of all communities is part of the IRS's recently released new five-year Strategic Plan that outlines the agency's goals to improve taxpayer service and tax administration. Information about IRS services available in languages other than English is available at IRS.gov/mylanguage. IRS multilingual resources The IRS also has a Languages webpage available in 20 languages to help taxpayers find basic tax information. Some of the multilingual resources include the Taxpayer Bill of Rights, e-file resources and many tax forms and publications. Other available multilingual resources include: Interpreter services. Taxpayers can access interpreters in more than 350 languages when interacting face-to-face or over the phone with IRS employees. The Let Us Help You page is available in seven languages. Latest tax news and information in seven languages through the agency's official Twitter account @IRSnews. Help for taxpayers and tax professionals: Tax season alerts and planning ahead for 2023. This special page, available in seven languages on IRS.gov, includes the latest filing season updates and details of the agency's ongoing efforts to address the inventory of previously filed tax returns. Online tools that provide step-by-step instructions in various languages: Where's My Refund? Make a payment Get transcript Alternative media resources for blind, sight-impaired individuals The IRS recently announced that the agency's Alternative Media Center (AMC) is converting IRS Form 1040, its main schedules and six publications in Spanish Braille and large print. Taxpayers can download forms and instructions from the Accessible Forms and Publications page of IRS.gov or request copies by going to IRS.gov/orderforms or calling 800-829-3676. If a taxpayer has questions about IRS accessibility services, they can contact the Accessibility Helpline at 833-690-0598. This helpline does not have access to taxpayers' IRS accounts. For help with tax law, refunds or other account-related issues, visit the Let Us Help You page on IRS.gov.

https://www.irs.gov/newsroom/security-summit-tax-pros-can-help-clients-battle-identity-theft-risk

IR-2022-151, August 16, 2022 WASHINGTON — The Security Summit partners today concluded a special summer education campaign by outlining steps tax professionals can take to help clients from becoming statistics in identity-theft related tax-fraud scams. The IRS, state tax agencies and the tax industry – working together as the Security Summit – have been combatting identity theft since 2015. This is the final part in a five-part summer series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data. The "Protect Your Clients; Protect Yourself" campaign is an effort to urge tax professionals to secure their computer systems and protect client data following the pandemic and its aftermath. "Identity thieves always seem to find a hook to lure victims, and we increasingly see tax professionals as a target given the sensitive client data they handle," said IRS Commissioner Chuck Rettig. "Tax professionals have their hands full taking care of their clients and staying on top of the latest in professional developments. But they shouldn't overlook the basics of protecting their data and their systems. Missing these basic steps can be devastating to a tax pro – and their clients. But a few common-sense steps and being aware of security basics can go a long way to provide important protection." While many may be working from home either full- or part-time, the IRS and Security Summit partners urge the use of virtual private networks, or VPNs, to securely conduct business. Online business/commerce and banking should only be done while using a secure browser connection -never at a coffee shop, restaurant or other business offering 'free wifi.' One way users can tell if they're using a secure browser is by looking for a small lock visible in the lower right corner or upper left of the web browser window. Some additional considerations: Be cautious of email attachments and web links. Do not open a link or attachment that arrives unexpectedly. Always call the sender to confirm receipt and validity of any unexpected links or attachments before opening. Use separate personal and business computers, mobile devices and email accounts. This is particularly important for those who may share hardware with other family members, especially children, who may not be aware of safety protocols. Do not send sensitive business information to personal email devices. Do not conduct business, including online business banking, on a personal computer or device. Likewise, do not engage in web surfing, gaming or video downloading on business computers or devices. Do not share USB drives or external hard drives between personal and business computers or devices. Never connect an unknown/untrusted piece of hardware into the system or network. Also do not insert any unknown CD/DVD or USB drive. Disable the "Autorun" feature for USB ports and optical drives on business computers to help prevent malicious programs from being installed. Be careful with downloads. Do not download software from an unknown web page. Always exercise caution with freeware or shareware. Use strong passwords. Never give out usernames or passwords to others. Strong passwords consist of a random sequence of letters to include upper and lower-case, numbers and special characters. Ideally, passwords should be at least 12 characters long. For systems or applications that have sensitive information, use multiple forms of identification (multifactor or dual-factor authentication). Change default passwords. Many devices come with default administrative passwords. Change them immediately and regularly thereafter. Default passwords are easily found or known by hackers. Change passwords often. Every three months is recommended. Consider using a password management application to store passwords. Passwords to devices and applications that contain business information should not be reused. Additional resources In addition to reviewing IRS Publication 4557, Safeguarding Taxpayer DataPDF, tax professionals can also get help with security recommendations by reviewing Small Business Information Security: The FundamentalsPDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax ProfessionalsPDF, provides a compilation of data theft information available on IRS.gov.

https://www.irs.gov/newsroom/irs-announces-interest-rate-increases-for-the-fourth-quarter-of-2022-6-rate-applies-to-most-taxpayers-starting-oct-1

IR-2022-150, August 15, 2022 WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning October 1, 2022. For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. Here is a complete list of the new rates: 6% for overpayments (5% for corporations). (payments made in excess of the amount owed) 3.5% for the portion of a corporate overpayment exceeding $10,000. 6% for underpayments. (taxes owed but not fully paid) 8% 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, for a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. The interest rates announced today are computed from the federal short-term rate determined during July 2022. Revenue Ruling 2022-15PDF, announcing the rates of interest, will appear in Internal Revenue Bulletin 2022-35, dated August 29, 2022.

https://www.irs.gov/newsroom/irs-missouri-storm-flooding-victims-now-eligible-for-tax-relief-oct-17-deadline-other-dates-extended-to-nov-15

IR-2022-149, August 10, 2022 WASHINGTON — Storm victims in parts of Missouri now have until November 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, individuals and households that reside or have a business in the Independent City of St. Louis, as well as St. Charles, Montgomery and St. Louis counties in Missouri, qualify for tax relief. The same relief will be available to any other locality added later by FEMA. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on July 25, 2022. As a result, affected individuals and businesses will have until November 15, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until November 15, 2022, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. The November 15, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2022, and the quarterly payroll and excise tax returns normally due on August 1 and October 31, 2022. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2021 extensions run out on September 15, 2022 and calendar-year corporations whose 2021 extensions run out on October 17, 2022. In addition, penalties on payroll and excise tax deposits due on or after July 25, 2022 and before August 9, 2022, will be abated as long as the deposits were made by August 9, 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 (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – DR-4665-MO − 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 storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

https://www.irs.gov/newsroom/new-school-year-reminder-to-educators-maximum-educator-expense-deduction-rises-to-300-in-2022

IR-2022-148, August 10, 2022 WASHINGTON — As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they'll be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 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. 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're 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. Professional development courses related to the curriculum they teach or the students they teach. But the IRS cautions that, 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 the cost of 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 For those who received a tax filing extension or still need to file a 2021 tax return, the IRS reminds any educator still working on their 2021 return that 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. File electronically when ready. Tax-filing software uses a question-and-answer format that makes doing taxes easier. 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 refunds. For details, visit Electronic Filing Options for Individuals. In addition, the IRS urges anyone who owes taxes 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 Pay Online. 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. Taxpayers are urged to file electronically when they are ready and avoid the last-minute rush to file at the deadline.

https://www.irs.gov/newsroom/security-summit-releases-new-data-security-plan-to-help-tax-professionals-new-wisp-simplifies-complex-area

IR-2022-147, August 9, 2022 WASHINGTON — The Security Summit partners today unveiled a special new sample security plan designed to help tax professionals, especially those with smaller practices, protect their data and information. The special plan, called a Written Information Security Plan or WISP, is outlined in Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting PracticePDF, a 29-page document that's been worked on by members of the Security Summit, including tax professionals, software and industry partners, representatives from state tax groups and the IRS. Federal law requires all professional tax preparers to create and implement a data security plan. The Security Summit group – a public-private partnership between the IRS, states and the nation's tax industry – has noticed that some tax professionals continue to struggle with developing a written security plan. In response to this need, the Summit – led by the Tax Professionals Working Group – has spent months developing a special sample document that allows tax professionals to quickly set their focus in developing their own written security plans. "Tax professionals play a critical role in our nation's tax system," said Carol Campbell, director of the IRS Return Preparer Office and co-lead of the Summit tax professional group. "But for many tax professionals, it is difficult to know where to start when developing a security plan. The Summit members worked together on this guide to walk tax pros through the many considerations needed to create a Written Information Security Plan to protect their businesses and their clients, as well as comply with federal law." Each year, the Security Summit partners highlight a "Protect Your Clients; Protect Yourself" summer campaign aimed at tax professionals. This is the fourth in a series of five tips for this year's effort. These are issued each Tuesday to coincide with the Nationwide Tax Forums, which help educate tax professionals on security and other important topics. There are many aspects to running a successful business in the tax preparation industry, including reviewing tax law changes, learning software updates and managing and training staff. One often overlooked but critical component is creating a WISP. "There's no way around it for anyone running a tax business. Having a written security plan is a sound business practice – and it's required by law," said Jared Ballew of Drake Software, co-lead for the Summit tax professional team and incoming chair of the Electronic Tax Administration Advisory Committee (ETAAC). "The sample provides a starting point for developing your plan, addresses risk considerations for inclusion in an effective plan and provides a blueprint of applicable actions in the event of a security incident, data losses and theft." Security issues for a tax professional can be daunting. The Summit team worked to make this document as easy to use as possible, including special sections to help tax professionals get to the information they need. "We have tried to stay away from complex jargon and phrases so that the document can have meaning to a larger section of the tax professional community," said Campbell. "It is not intended to be the final word in Written Information Security Plans, but it is intended to give tax professionals a place to start in understanding and attempting to draft a plan for their business." A security plan should be appropriate to the company's size, scope of activities, complexity and the sensitivity of the customer data it handles. There is no one-size-fits-all WISP. For example, a sole practitioner can use a more abbreviated and simplified plan than a 10-partner accounting firm, which is reflected in the new sample WISP from the Security Summit group. Once completed, tax professionals should keep their WISP in a format that others can easily read, such as PDF or Word. Making the WISP available to employees for training purposes is encouraged. Storing a copy offsite or in the cloud is a recommended best practice in the event of a natural disaster. Additional resources Tax professionals also can get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer DataPDF, and Small Business Information Security: The FundamentalsPDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax ProfessionalsPDF, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and social media. The IRS also recommends tax professionals create a data theft response plan, which includes contacting the IRS Stakeholder Liaisons to report a theft.

https://www.irs.gov/newsroom/irs-truckers-need-to-file-by-august-31-deadline-e-file-encouraged

IR-2022-146, August 8, 2022 WASHINGTON — The Internal Revenue Service today is reminding those who have registered, or are required to register, large trucks and buses that it's time to file Form 2290, Heavy Highway Vehicle Use Tax ReturnPDF. The IRS strongly encourages using e-file and filing before the payment deadline of August 31, 2022, for vehicles first used in July 2022. Truckers that have a highway motor vehicle with a taxable gross weight of 55,000 pounds or more registered in their name must file Form 2290 and pay the tax. However, on vehicles they expect to use for 5,000 miles or less (7,500 for farm vehicles), they're required to file a return, but pay no tax. If the vehicle exceeds the mileage use limit during the tax period, the tax becomes due. The filing deadline is not tied to the vehicle registration date. Taxpayers must file Form 2290 by the last day of the month following the month in which the taxpayer first used the vehicle on a public highway during the taxable period, regardless of the vehicle's registration renewal date. Vehicles first used on a public highway during the month of July 2022 must file Form 2290 and pay the appropriate tax between July 1 and August 31. Any additional taxable vehicles placed on the road during any month other than July should be prorated for the months during which it was in service. IRS.gov has a table to help determine the filing deadline. File and pay the easy way Get the facts Visit the Trucking Tax Center on IRS.gov/trucker. Review the Frequently Asked Questions for Truckers who e-file (also available in Spanish). Use "Do I Need to Pay the Heavy Highway Vehicle Use Tax?" online tool if unsure about filing. Gather the required information Vehicle Identification Number(s). Employer Identification Number (EIN) – not a Social Security number. It can take about four weeks to establish a new EIN. See How to Apply for an EIN. Taxable gross weight of each vehicle. Filing options All Form 2290 filers are encouraged to e-file, a list of IRS-approved e-file providers is on IRS.gov. E-file is required when reporting 25 or more vehicles on Form 2290. A watermarked Schedule 1 is sent within minutes after acceptance of an e-filed return. If filing by mail, ensure that the correct mailing address is used. Mail filers will receive their stamped Schedule 1 within 6 weeks after the IRS receives the form. Payment options Credit or debit card or digital wallet is an option. E-filing makes paying with electronic funds withdrawal an easy part of the process. Electronic Federal Tax Payment System requires advanced enrollment. Mailed in check or money order payments using Form 2290-V, Payment Voucher, mailed to: Internal Revenue Service, P.O. Box 932500, Louisville, KY 40293-2500. More information: IRS YouTube Video: Truckers: Mark Your Calendars To File Form 2290. "Understanding Form 2290 – Heavy Highway Vehicle Use Tax". Frequently Asked Questions for Indian Tribal Governments Regarding Highway Use Tax. IRS Form 2290 call center, available weekdays between 8 a.m. and 6 p.m. Eastern time. From within the U.S., 866-699-4096 (toll-free), from Canada or Mexico, 859-320-3581 (not toll-free).

https://www.irs.gov/newsroom/irs-kentucky-storm-flooding-victims-now-eligible-for-tax-relief-october-17-deadline-other-dates-extended-to-november-15

IR-2022-145, August 2, 2022 WASHINGTON — Storm victims in parts of Kentucky now have until November 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, individuals and households that reside or have a business in Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike and Wolfe counties in Kentucky qualify for tax relief. The same relief will be available to any other locality added later by FEMA. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on July 26, 2022. As a result, affected individuals and businesses will have until November 15, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until November 15, 2022, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. The November 15, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2022, and the quarterly payroll and excise tax returns normally due on August 1 and October 31, 2022. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2021 extensions run out on September 15, 2022 and calendar-year corporations whose 2021 extensions run out on October 17, 2022. In addition, penalties on payroll and excise tax deposits due on or after July 26 and before August 10, will be abated as long as the deposits are made by August 10, 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 (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – DR-4663-KY − 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 storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

https://www.irs.gov/newsroom/security-summit-tell-tale-signs-of-identity-theft-tax-pros-should-watch-for

IR-2022-144, August 2, 2022 WASHINGTON — With identity thieves continuing to target the tax community, Internal Revenue Service Security Summit partners today urged tax professionals to learn the signs of data theft so they can react quickly to protect clients. The IRS, state tax agencies and the tax industry – working together as the Security Summit – reminded tax professionals that they should contact the IRS immediately when there's an identity theft issue while also contacting insurance or cybersecurity experts to assist them with determining the cause and extent of the loss. "Tax pros must be vigilant to protect their systems from identity thieves who continue to look for ways to steal data," said IRS Commissioner Chuck Rettig. "Practitioners can take simple steps to remain on the lookout for signs of data and identity theft. It's critical for tax pros to watch out for these details and to quickly take action when tell-tale signs emerge. This can be critical to protect their business as well as their clients against identity theft." This is the third in a summer series of five Security Summit news releases aimed at raising awareness among tax professionals about data security. The special Protect Your Client; Protect Yourself campaign is designed to help protect against tax-related identity theft by increasing attention on basic security steps that tax professionals and others should take to protect sensitive information. One common concern the IRS hears from tax professionals is that they did not immediately recognize the signs of data theft. Summit partners are urging tax professionals to watch out for these critical signs: Client e-filed returns rejected because client's Social Security number was already used on another return. More e-file acknowledgements received than returns the tax pro filed. Clients responded to emails the tax pro didn't send. Slow or unexpected computer or network responsiveness such as: Software or actions take longer to process than usual, Computer cursor moves or changes numbers without touching the mouse or keyboard, Unexpectedly locked out of a network or computer. Tax professionals should also watch for warning signs when clients report they've received: IRS Authentication letters (5071C, 6331C, 4883C, 5747C) even though they haven't filed a return. A refund even though they haven't filed a return. A tax transcript they didn't request. Emails or calls from the tax pro that they didn't initiate. A notice that someone created an IRS online account for the taxpayer without their consent. A notice the taxpayer wasn't expecting that: Someone accessed their IRS online account, The IRS disabled their online account, Balance due or other notices from the IRS that are not correct based on return filed or if a return had not been filed. These are just a few examples. Tax pros should ensure they have the highest security possible and react quickly if they sense or see something amiss. If the tax pro or their firm are the victim of data theft, immediately: Report it to the local IRS Stakeholder Liaison Liaisons will notify IRS Criminal Investigation and others within the agency on the practitioner's behalf. Speed is critical. If reported quickly, the IRS can take steps to block fraudulent returns in the clients' names and will assist tax pros through the process. Email the Federation of Tax Administrators at StateAlert@taxadmin.org Get information on how to report victim information to the states. Most states require that the state attorney general be notified of data breaches. This notification process may involve multiple offices. Be pro-active with clients that could have been impacted and suggest appropriate actions, such as obtaining an IP PIN or completing a Form 14039, Identity Theft Affidavit if applicable. See the early Security Summit reminder about the importance of IP PINs. Find more information at Data Theft Information for Tax Professionals. Additional resources Publication 5293, Data Security Resource Guide for Tax ProfessionalsPDF, provides an overview resources about how to avoid data theft. Tax professionals can also get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer DataPDF, and the IRS Identity Theft Central pages for tax pros. Tax pros should also review Small Business Information Security: The FundamentalsPDF by the National Institute of Standards and Technology Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media. For more information, see Boost Security Immunity: Fight Against Identity Theft.

https://www.irs.gov/newsroom/irs-granting-dyed-diesel-penalty-relief-as-a-result-of-hurricane-ian

IR-2022-169, September 30, 2022 WASHINGTON — The Internal Revenue Service, in response to disruptions resulting from Hurricane Ian, will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used by emergency vehicles on the highway in the state of Florida. This relief begins on September 28, 2022, and will remain in effect through October 19, 2022. This penalty relief is available to any person that sells or uses dyed diesel fuel in an emergency vehicle for highway use. In the case of the operator of the emergency vehicle in which the dyed diesel fuel is used, the relief is available only if the operator or the person selling such fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for highway use. The IRS will not impose penalties for failure to make semimonthly deposits of tax for dyed diesel fuel sold for use or used in an emergency vehicle on the highway in the state of Florida during the relief period. IRS Publication 510, Excise Taxes, has information on the proper method for reporting and paying the tax. Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use, and to local governments. The IRS is closely monitoring the situation and will provide additional relief as needed.

https://www.irs.gov/newsroom/irs-hurricane-ian-victims-in-florida-qualify-for-tax-relief-oct-17-deadline-other-dates-extended-to-feb-15

Updated 10/5/22: Due to the federal holiday observance on October 10, the Penalties on payroll and excise tax deposits due date changed to October 11, 2022. IR-2022-168, September 29, 2022 WASHINGTON — Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business anywhere in the state of Florida qualify for tax relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on September 23, 2022. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022. In addition, penalties on payroll and excise tax deposits due on or after September 23, 2022, and before October 11, 2022, will be abated as long as the deposits are made by October 11, 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 (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – DR-4673-FL − 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 Hurricane Ian and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

https://www.irs.gov/newsroom/irs-reports-significant-increase-in-texting-scams-warns-taxpayers-to-remain-vigilant

IR-2022-167, September 28, 2022 WASHINGTON — The Internal Revenue Service today warned taxpayers of a recent increase in IRS-themed texting scams aimed at stealing personal and financial information. So far in 2022, the IRS has identified and reported thousands of fraudulent domains tied to multiple MMS/SMS/text scams (known as smishing) targeting taxpayers. In recent months, and especially in the last few weeks, IRS-themed smishing has increased exponentially. Smishing campaigns target mobile phone users, and the scam messages often look like they're coming from the IRS, offering lures like fake COVID relief, tax credits or help setting up an IRS online account. Recipients of these IRS-related scams can report them to phishing@irs.gov. "This is phishing on an industrial scale so thousands of people can be at risk of receiving these scam messages," said IRS Commissioner Chuck Rettig. "In recent months, the IRS has reported multiple large-scale smishing campaigns that have delivered thousands – and even hundreds of thousands – of IRS-themed messages in hours or a few days, far exceeding previous levels of activity." With the approach of October's Cybersecurity Awareness Month, the IRS and the Security Summit partners in the states and the nation's tax community remind people and the tax professional community to be on the lookout for phishing scams and other schemes that could put sensitive tax data at risk. In the latest activity, the scam texts often ask taxpayers to click a link where phishing websites will try to collect their information or potentially send malicious code onto their phones. The IRS does not send emails or text messages asking for personal or financial information or account numbers. These messages should all be red flags for taxpayers. Beginning in the fall of 2020, the IRS observed an increase in reports of smishing scams requesting taxpayer personal and financial information. These smishing campaigns continued through the pandemic. The IRS has taken numerous steps to warn people of this ongoing threat, including posting a video about how to avoid IRS text message scams. Taxpayers should continue reporting these scams to phishing@irs.gov. Their reporting allows the IRS to report these scams to the appropriate service providers for action, protecting other taxpayers who might receive a variant of the same scam. While the IRS works to shut down online fraud, criminals are using ever-evolving tactics to cast a wider net and catch more victims, like using algorithms to automatically generate hundreds or even thousands of fraudulent domains. For example, a recent campaign used just three dozen stolen or bogus email addresses to create over 1,000 fraudulent domains. "Particularly in these cases, the best offense is a good defense," said Rettig. "Taxpayers and tax pros need to remain constantly vigilant with suspicious IRS-related emails and text messages. And if you get one, sending the IRS important details from the text can help us disrupt the scams and protect others." Reporting IRS-related smishing The IRS maintains an inbox, phishing@irs.gov, to process IRS, Treasury and/or tax-related online scams only. Smishing involving other agencies and/or brands should not be reported to phishing@irs.gov. Reporting IRS-themed texts to the IRS allows security professionals to track and disrupt these scams. Individuals reporting scam texts to the IRS should include both the body of the message and the sender's information in one email or text. Copying the actual text into an email is preferred. However, if necessary, screenshots can be sent. Scam SMS/text messages can also be copied and forwarded to wireless providers via text to 7726 (SPAM), which helps them spot and block similar messages in the future. The following process will help capture important details for reporting smishing to the IRS: Create a new email to phishing@irs.gov. Copy the caller ID number (or email address). Paste the number (or email address) into the email. Press and hold the SMS/text message and select "copy". Paste the message into the email. If possible, include the exact date, time, time zone and telephone number that received the message. Send the email to phishing@irs.gov. Additional reporting In addition to reporting the scam to phishing@irs.gov, if IRS-related, report the message to the Treasury Inspector General for Tax Administration using their IRS Impersonation Scam Reporting form and the Federal Trade Commission (FTC) through their Complaint Assistant to make the information available to investigators. All incidents, successful and attempted, should also be reported to the Internet Crime Complaint Center. Any individual entering personal information, or otherwise finding themselves a victim of tax-related scams, can find additional resources at Identity Theft Central on IRS.gov. Additional resources IRS.gov: Reporting Phishing and Online Scams IRS YouTube: Here's How to Avoid IRS Text Message Scams COVID Tax Tip 2020-167, IRS warns people about a COVID-related text message scam Federal Communications Commission: Smartphone Security Checker Federal Trade Commission: How to recognize and report spam text messages

https://www.irs.gov/newsroom/irs-continues-relief-to-drought-stricken-farmers-and-ranchers-in-44-states-other-regions

IR-2022-166, September 28, 2022 WASHINGTON — The Internal Revenue Service is reminding farmers and ranchers in applicable regions forced to sell livestock because of drought conditions that they may have more time to replace their livestock and defer tax on any gains from the forced sales. Today, the IRS posted Notice 2022-43PDF listing the applicable regions, a county or other jurisdiction, designated as eligible for federal assistance on IRS.gov. This includes 44 states, two U.S. Territories and two independent nations in a Compact of Free Association with the United States. The relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry, are not eligible. The sales must be solely due to drought, causing an area to be designated as eligible for federal assistance. Livestock generally must be replaced within a four-year period, instead of the usual two-year period. The IRS is authorized to further extend this replacement period if the drought continues. The one-year extension, announced in the notice, gives eligible farmers and ranchers until the end of their first tax year after the first drought-free year to replace the sold livestock. Details, including an example of how this provision works, can be found in Notice 2006-82. The IRS provides this extension to eligible farmers and ranchers that qualified for the four-year replacement period, if the applicable region is listed as suffering exceptional, extreme or severe drought conditions during any week between September 1, 2021, and August 31, 2022. This determination is made by the National Drought Mitigation Center. As a result, eligible farmers and ranchers whose drought-sale replacement period was scheduled to expire on December 31, 2022, in most cases now have until the end of their next tax year to replace the sold livestock. Because the normal drought-sale replacement period is four years, this extension impacts drought sales that occurred during 2018. The replacement periods for some drought sales before 2018 are also affected due to previous drought-related extensions affecting some of these localities. More information on reporting drought sales and other farm-related tax issues can be found in Publication 225, Farmer's Tax Guide, available on IRS.gov.

https://www.irs.gov/newsroom/irs-updates-answers-to-states-and-local-governments-on-taxability-and-reporting-of-payments-from-coronavirus-state-and-local-fiscal-recovery-funds

IR-2022-165, September 28, 2022 WASHINGTON — The Internal Revenue Service today updated its frequently-asked-questions (FAQs) (FS-2022-36) on Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds). These funds give eligible state and local governments a substantial infusion of resources to meet pandemic response needs. This update adds Question 15 through 17. 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-alaska-storm-and-flood-victims-qualify-for-tax-relief-oct-17-deadline-other-dates-extended-to-feb-15

IR-2022-164, September 27, 2022 WASHINGTON — Victims of storms and flooding that began on September 15 in parts of Alaska now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering relief to any area designated for individual or public assistance by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in the Regional Education Attendance Areas of Bering Strait, Kashunamiut, Lower Kuskokwim and Lower Yukon, in Alaska qualify for tax relief. Other areas added later will also qualify for this relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on September 15, 2022. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on September 15, 2022, and January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar year partnerships and S corporations whose 2021 extensions ran out on September 15, 2022, and calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022. In addition, penalties on payroll and excise tax deposits due on or after September 15, 2022, and before September 30, 2022, will be abated as long as the deposits are made by September 30, 2022. The IRS 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 (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – DR-4672-AK − on any return claiming a loss. See Publication 547 for details. The tax relief is part of a coordinated federal response to this disaster and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

https://www.irs.gov/newsroom/reminder-file-2019-and-2020-returns-by-sept-30-to-get-covid-penalty-relief

IR-2022-163, September 22, 2022 WASHINGTON — The Internal Revenue Service today reminded struggling individuals and businesses, affected by the COVID-19 pandemic, that they may qualify for late-filing penalty relief if they file their 2019 and 2020 returns by September 30, 2022. Besides providing relief to both individuals and businesses impacted by the pandemic, this step is designed to allow the IRS to focus its resources on processing backlogged tax returns and taxpayer correspondence to help return to normal operations for the 2023 filing season. "We thought carefully about the type of penalties, the period covered and the duration before granting this penalty relief. We understand the concerns being raised by the tax community and others about the September 30 penalty relief deadline," said IRS Commissioner Chuck Rettig. "Given planning for the upcoming tax season and ongoing work on the inventory of tax returns filed earlier this year, this penalty relief deadline of September 30 strikes a balance. It is critical to us to not only provide important relief to those affected by the pandemic, but this deadline also allows adequate time to prepare our systems and our workstreams to serve taxpayers and the tax community during the 2023 filing season." The relief, announced last month, applies to the failure-to-file penalty. The penalty is typically assessed at a rate of 5% per month, up to 25% of the unpaid tax, when a federal income tax return is filed late. This relief applies to forms in both the Form 1040 and 1120 series, as well as others listed in Notice 2022-36, posted on IRS.gov. For anyone who has gotten behind on their taxes during the pandemic, this is a great opportunity to get caught up. To qualify for relief, any eligible income tax return must be filed on or before September 30, 2022. Those who file during the first few months after the September 30 cutoff will still qualify for partial penalty relief. That's because, for eligible returns filed after that date, the penalty starts accruing on October 1, 2022, rather than the return's original due date. Because the penalty accrues, based on each month or part of a month that a return is late, filing sooner will limit any charges that apply. Unlike the failure-to-file penalty, the failure-to-pay penalty and interest will still apply to unpaid tax, based on the return's original due date. The failure-to-pay penalty is normally 0.5% (one-half-of-one percent) per month. The interest rate is currently 5% per year, compounded daily, but that rate is due to rise to 6% on October 1, 2022. Taxpayers can limit these charges by paying promptly. For more information, including details on fast and convenient electronic payment options, visit IRS.gov/payments. Penalty and interest charges generally don't apply to refunds. The notice also provides details on relief for filers of certain international information returns when a penalty is assessed at the time of filing. No relief is available for applicable international information returns when the penalty is part of an examination. To qualify for this relief, any eligible tax return must be filed on or before September 30, 2022. Penalty relief is automatic. This means that eligible taxpayers who have already filed their return do not need to apply for it, and those filing now do not need to attach a statement or other documents to their return. Generally, those who have already paid the penalty are getting refunds, most by the end of September. Penalty relief is not available in some situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. This relief is limited to the penalties that the notice specifically states are eligible for relief. For ineligible penalties, such as the failure-to-pay penalty, taxpayers may use existing penalty relief procedures, such as applying for relief under the reasonable cause criteria or the First-Time Abate program. Visit IRS.gov/penaltyrelief for details. This relief doesn't apply to 2021 returns. Whether or not they have a tax-filing extension, the IRS urges everyone to file their 2021 return soon to avoid processing delays. For filing tips, visit IRS.gov.

https://www.irs.gov/newsroom/irs-advises-that-improperly-forgiven-paycheck-protection-program-loans-are-taxable

IR-2022-162, September 21, 2022 WASHINGTON — The Internal Revenue Service recently issued guidance addressing improper forgiveness of a Paycheck Protection Program loan (PPP loan)PDF. The guidance confirms that, when a taxpayer's loan is forgiven based upon misrepresentations or omissions, the taxpayer is not eligible to exclude the forgiveness from income and must include in income the portion of the loan proceeds that were forgiven based upon misrepresentations or omissions. Taxpayers who inappropriately received forgiveness of their PPP loans are encouraged to take steps to come into compliance by, for example, filing amended returns that include forgiven loan proceed amounts in income. "This action underscores the Internal Revenue Service's commitment to ensuring that all taxpayers are paying their fair share of taxes," said IRS Commissioner Chuck Rettig. "We want to make sure that those who are abusing such programs are held accountable, and we will be considering all available treatment and penalty streams to address the abuses." Many PPP loan recipients who received loan forgiveness were qualified and used the loan proceeds properly to pay eligible expenses. However, the IRS has discovered that some recipients who received loan forgiveness did not meet one or more eligibility conditions. These recipients received forgiveness of their PPP loan through misrepresentation or omission and either did not qualify to receive a PPP loan or misused the loan proceeds. The PPP loan program was established by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to assist small US businesses that were adversely affected by the COVID-19 pandemic in paying certain expenses. The PPP loan program was further extended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. Under the terms of the PPP loan program, lenders can forgive the full amount of the loan if the loan recipient meets three conditions. The loan recipient was eligible to receive the PPP loan. An eligible loan recipient: is a small business concern, independent contractor, eligible self-employed individual, sole proprietor, business concern, or a certain type of tax-exempt entity;  was in business on or before February 15, 2020; and had employees or independent contractors who were paid for their services, or was a self-employed individual, sole proprietor or independent contractor.   The loan proceeds had to be used to pay eligible expenses, such as payroll costs, rent, interest on the business' mortgage, and utilities.   The loan recipient had to apply for loan forgiveness. The loan forgiveness application required a loan recipient to attest to eligibility, verify certain financial information, and meet other legal qualifications. If the three conditions above are met, then under the PPP loan program the forgiven portion is excluded from income. If the conditions are not met, then the amount of the loan proceeds that were forgiven but do not meet the conditions must be included in income and any additional income tax must be paid. To report tax-related illegal activities relating to PPP loans, submit Form 3949-A, Information ReferralPDF. Taxpayers should also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 800-366-4484

https://www.irs.gov/newsroom/irs-hurricane-fiona-victims-in-puerto-rico-qualify-for-tax-relief-oct-17-deadline-other-dates-extended-to-feb-15

IR-2022-161, September 20, 2022 WASHINGTON — Hurricane Fiona victims in all 78 Puerto Rican municipalities now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business anywhere in the Commonwealth of Puerto Rico qualify for tax relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on September 17, 2022. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022 and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022. In addition, penalties on payroll and excise tax deposits due after September 17, 2022 and before October 3, 2022, will be abated as long as the deposits are made by October 3, 2022. The IRS disaster relief 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 (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – DR-3583-EM − 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 Hurricane Fiona and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

https://www.irs.gov/newsroom/irs-selects-eight-new-members-for-the-electronic-tax-administration-advisory-committee

IR-2022-160, September 20, 2022 WASHINGTON — The Internal Revenue Service has selected eight new members for the  Electronic Tax Administration Advisory Committee (ETAAC) . "These eight new members bring diverse and important perspectives to a committee focused on the electronic side of tax administration," said IRS Commissioner Chuck Rettig. "Their recommendations will inform IRS decision makers as they address critical issues like identify theft and refund fraud and further map out our digital strategy." Established by statute in 1998, the ETAAC is a public forum for the discussion of issues in electronic tax administration. The committee's primary goal is to promote paperless filing of tax and information returns. ETAAC members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation's tax industry to fight identity theft and refund fraud. Committee members include state tax officials, consumer advocates, cybersecurity and information security specialists, tax preparers, tax software developers and representatives of the payroll and financial communities. The following individuals have been appointed to serve three-year terms on the committee beginning in September 2022: Austin Emeagwai, CPA, Ph.D., Collierville, Tennessee – Dr. Emeagwai is an Associate Professor of Accounting at LeMoyne-Owen College, Memphis. He is the president of ABC Accounting and Tax Services, P.C., a full-service CPA firm. His research interests include small business and community development by Historically Black Colleges and Universities (HBCUs). Dr. Emeagwai is a member of the American Institute of Certified Public Accountants, Tennessee Society of Certified Public Accountants, National Society of Accountants, and is a Volunteer Income Tax Assistance (VITA) volunteer.   Jerry Gaddis, EA, MBA, Winter Haven, Florida – Gaddis is the founder and Chief Executive Officer of Tropical Tax Solutions, a boutique firm headquartered in Florida providing tax consultation, preparation and representation solutions for individuals and small businesses. He began his 20-year tax career at the VITA/Tax Counseling for the Elderly clinic in the Key Largo public library. He is a former H&R Block Franchisee, a former Dave Ramsey ELP and a graduate of the National Tax Practice Institute. Gaddis served on the board of directors for the National Association of Enrolled Agents for seven years including three years as an officer and one year as President/CEO. He is an Enrolled Agent.   Nikia Gainey, Orlando, Florida – Gainey founded Carriers Choice Logistics, LLC in central Florida this year. Carriers Choice Logistics helps the low-income community by providing advice on how to start a business, provides financial literacy assistance, offers first time home buyers program information, aids with applying for Supplemental Nutrition Assistance Program (SNAP) benefits (also known as food stamps) and offers free notary services for the surrounding community.   Robert Gettemy, Marion, Iowa – Gettemy is a full-time instructor at the University of Iowa where he teaches both undergraduate and graduate courses in entrepreneurship. In addition, he consults in the tax software industry. Prior to teaching, Gettemy spent seven years at TaxAct where he was Chief Operating Officer. During his tenure at TaxAct, Gettemy was responsible for all back-office operations, government relations and competitive intelligence. While at TaxAct, he served as Vice Chair of the American Coalition of Taxpayer Rights, was on the board of directors for the Council of Electronic Revenue Communication Advancement and was an industry co-lead in the IRS Security Summit initiative which was formed to combat stolen identity refund fraud. Gettemy was also active in IRS Free File.   Argi O'Leary, Voorheesville, New York – O'Leary is a Principal in the Advocacy Practice at Ryan, LLC in New York, where she provides tax strategy and audit assistance, including tax issue negotiations and resolution, policy advice and advocacy for all tax types. Before joining Ryan, O'Leary was a Deputy Commissioner with the New York State Department of Taxation and Finance, leading the Department's Civil Enforcement Division and Office of Professional Responsibility, and also served as an Assistant Deputy Commissioner, leading the Department's litigation strategy in tax controversy matters.   Hallie Parchman, Austin, Texas – Parchman is currently Amazon's Senior Manager of Product Management within the Corporate Tax function focusing on the end-to-end customer experience as it relates to tax information reporting and withholding, including tax operations, tax compliance and product delivery and design. Before joining Amazon, Parchman was a Tax Analyst at Apple Inc. focused on information reporting and a Federal Tax Associate at KPMG. She is a licensed CPA in Texas.   RaeAnn Pilarski, Tucson, Arizona – Pilarski is Senior Manager at Code for America, where she scales and supports VITA partners that participate in the GetYourRefund program. Before joining Code for America, she oversaw the VITA program at the United Way of Tucson and Southern Arizona. During her tenure there, she worked closely with Code for America as one of the original partners in the GetYourRefund pilot and led the development of Valet VITA, a model that allowed clients' documents to be scanned and securely uploaded to a system through which volunteers would access the information needed to prepare the return.   Keith Richardson, Philadelphia, Pennsylvania – Richardson has over 15 years of tax administration experience. He is Deputy Chief Financial Officer and Tax Commissioner for the District of Columbia. As the Deputy CFO, he contributed to the development of its new modernized tax system, including working with IDTTRF-ISAC and establishing strategic plans for its customer service for taxpayers. Richardson previously worked for the Commonwealth of Pennsylvania as the Bureau of Compliance Director and was responsible for tax compliance initiatives, clearances and creating the Gaming Control Clearance Division to oversee all tax clearances for owners, vendors, employees and winners. He has also served as Revenue Commissioner for the City of Philadelphia. Committee Leadership for 2022 – 2023 Jared Ballew, Government/Industry Liaison with Drake Software, will serve as chair of the ETAAC. Vernon Barnett, Commissioner of the Alabama Department of Revenue, will serve as co-vice chair of the ETAAC. Timur Taluy, CEO and co-owner of FileYourTaxes.com, will serve as co-vice chair of the ETAAC.

https://www.irs.gov/newsroom/irs-updates-information-on-tax-credit-helping-businesses-to-hire-certain-categories-of-workers

IR-2022-159, September 19, 2022 WASHINGTON — The IRS today updated information on the Work Opportunity Tax Credit (WOTC), available to employers that hire designated categories of workers who face significant barriers to employment. For employers facing a tight job market, the WOTC may be able to help. Today's updates include information on the pre-screening and certification process. To satisfy the requirement to pre-screen a job applicant, on or before the day a job offer is made, a pre-screening notice (Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit) must be completed by the job applicant and the employer. The Targeted Jobs Tax Credit (TJTC), which preceded WOTC, did not contain a pre-screening requirement. In enacting WOTC to replace the TJTC in 1996, Congress included the requirement that employers pre-screen job applicants before or on the same day the job offer is made. In doing so, Congress emphasized that the WOTC is designed to incentivize the hiring and employment of certain categories of workers. After pre-screening a job applicant, the employer must then request certification by submitting Form 8850 to the appropriate state workforce agency no later than 28 days after the employee begins work. Other requirements and further details can be found in the instructionsPDF to Form 8850. WOTC has 10 designated categories of workers. The 10 categories are: Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients Certain veterans, including unemployed or disabled veterans The formerly incarcerated or those previously convicted of a felony Designated community residents living in Empowerment Zones or Rural Renewal Counties Vocational rehabilitation referrals Summer youth employees living in Empowerment Zones Food stamp (SNAP) recipients Supplemental Security Income (SSI) recipients Long-term family assistance recipients Qualified long-term unemployment recipients. Although the credit generally is not available to tax-exempt organizations, a special provision allows them to claim the WOTC against the employer's share of Social Security tax for hiring qualified veterans. These organizations claim the credit on Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Visit the WOTC page for more information.

https://www.irs.gov/newsroom/irs-accepting-applicants-for-compliance-assurance-process-for-2023

IR-2022-158, September 15, 2022 WASHINGTON — The Internal Revenue Service announced today the opening of the application period for the 2023 Compliance Assurance Process (CAP) program. The application period runs from September 15 to November 15, 2022 . The IRS will inform applicants if they're accepted into the program in February 2023. Launched in 2005, CAP employs real-time issue resolution, through transparent and cooperative interaction between taxpayers and the IRS, to improve federal tax compliance by resolving issues prior to the filing of a tax return. To be eligible to apply for CAP, new applicants must: Have assets of $10 million or more, Be a U.S. publicly traded corporation with a legal requirement to prepare and submit SEC Forms 10-K, 10-Q, and 8-K, and Not be under investigation by, or in litigation with, any government agency that would limit the IRS's access to current tax records. To be eligible to participate in CAP, taxpayers must adhere to CAP program limits on the number of open years. General program information and the 2023 application details are available on the CAP webpage.

https://www.irs.gov/newsroom/irs-sept-15-is-the-deadline-for-third-quarter-estimated-tax-payments

IR-2022-157, September 6, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers who pay estimated taxes that the deadline to submit their third quarter payment is September 15, 2022. Taxpayers not subject to withholding, such as those who are self-employed, investors or retirees, may need to make quarterly estimated tax payments. Taxpayers with other income not subject to withholding, including interest, dividends, capital gains, alimony, cryptocurrency and rental income, also normally make estimated tax payments. In most cases, taxpayers should make estimated tax payments if they expect: To owe at least $1,000 in taxes for 2022 after subtracting their withholding and tax credits. Their withholding and tax credits to be less than the smaller of: 90% of the tax to be shown on their 2022 tax return or 100% of the tax shown on their 2021 tax return. Their 2021 tax return must cover all 12 months. Special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. Publication 505, Tax Withholding and Estimated Tax, provides more information on estimated tax rules. The worksheet in Form 1040-ES, Estimated Tax for Individuals, or Form 1120-W, Estimated Tax for Corporations, has details on who must pay estimated tax. How to figure estimated tax To figure estimated tax, individuals must figure their expected Adjusted Gross Income (AGI), taxable income, taxes, deductions and credits for the year. When figuring 2022 estimated tax, it may be helpful to use income, deductions and credits for 2021 as a starting point. Use the 2021 federal tax return as a guide. Taxpayers can use Form 1040-ES to figure their estimated tax. The Tax Withholding Estimator on IRS.gov offers taxpayers a clear, step-by-step method to have their employers withhold the right amount of tax from their paycheck. It also has instructions to file a new Form W-4 to give to their employer to adjust the amount withheld each payday. How to avoid an underpayment penalty Taxpayers who underpaid their taxes may have to pay a penalty. This applies whether they paid through withholding or through estimated tax payments. A penalty may also apply for late estimated tax payments even if someone is due a refund when they file their tax return. To see if they owe a penalty, taxpayers should use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. Taxpayers can also see the Form 2210 instructions under the "Waiver of Penalty" section. The IRS may waive the penalty if someone underpaid because of unusual circumstances and not willful neglect. Examples include: Casualty, disaster or another unusual situation. An individual retired after reaching age 62 during a tax year when estimated tax payments applied. An individual became disabled during a tax year when estimated tax payments applied. Specific written advice from an IRS agent given in response to a specific written request. The taxpayer must provide copies of both. The fourth and final 2022 estimated tax payment is due January 17, 2023. Other IRS.gov resources Pay Online provides complete tax payment information, how and when to pay, payment options and more. Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts Form 2220, Underpayment of Estimated Tax by Corporations

https://www.irs.gov/newsroom/irs-updates-tax-gap-estimates-new-data-points-the-way-toward-enhancing-taxpayer-service-compliance-efforts

IR-2022-192, October 28, 2022 WASHINGTON — The Internal Revenue Service today released a new set of 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. As discussed below, it is important to note that the tax gap estimates cannot fully account for all types of evasion. "These findings underscore the importance of ensuring fairness in our nation's tax system," said IRS Commissioner Chuck Rettig. "The increase in the tax gap estimates reflects that the IRS needs to do more, both in improving taxpayer service as well as working to improve tax compliance. The IRS remains committed to ensuring fairness and helping taxpayers while also working to better identify emerging compliance issues that contribute to the tax gap. The recent funding addition will help the IRS in many ways, increasing taxpayer education, significantly improving service to all taxpayers and focusing on high-income/high-wealth non-compliance in a fair and impartial manner supporting compliant taxpayers." 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. As part of the larger effort to reduce the actual tax gap, the IRS will continue to fairly enforce the tax laws. In 2021, the latest year for which data is available, the IRS currently collected more than $4 trillion in taxes, penalties, interest and user fees. Tax gap studies through the years have consistently demonstrated that third-party reporting of income significantly raises voluntary compliance with the tax laws. And voluntary compliance rises even higher when income payments are also subject to withholding. The IRS also has an array of other taxpayer service programs aimed at supporting accurate tax filing and helping address the tax gap. These range from working with businesses and partner groups to a variety of education and outreach efforts. The voluntary compliance rate of the U.S. tax system is vitally important for the nation. A one-percentage-point increase in voluntary compliance would bring in about $40 billion in additional tax receipts. The tax gap estimates provide insight into the historical scale of tax compliance and to the persisting sources of low compliance. "Keeping the voluntary compliance rate as high as possible ensures that taxpayers believe our system is fair," Rettig said. "The vast majority of taxpayers strive to pay what they owe on time. Those who do not pay their fair share ultimately shift the tax burden to those people who do, which fuels the tax gap. The IRS will continue to direct our resources to help educate taxpayers about the tax requirements under the law while also focusing on pursuing those who avoid their legal responsibilities." Estimating the tax gap; offshore, digital assets, other categories not fully represented 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. For the individual income tax underreporting tax gap, Detection Controlled Estimation is used to adjust for measurement errors that results when some existing noncompliance is not detected during an audit. Other statistical techniques are used to control for bias in estimates based on operational audit data. Because multiple methods are used to estimate different subcomponents of the tax gap, no standard errors are reported. In addition, those reviewing this data should be mindful of these limitations when using these estimates. 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. There are several factors to keep in mind: The estimates cannot fully represent noncompliance in some components of the tax system including offshore activities, issues involving digital assets and cryptocurrency as well as corporate income tax, income from flow-through entities, illegal activities because data are lacking. The tax gap associated with illegal activities has been outside the scope of tax gap estimation because the objective of government is to eliminate those activities, which would eliminate any associated tax. For noncompliance associated with digital assets and other emerging issues, it takes time to develop the expertise to uncover associated noncompliance and for examinations to be completed that can be used to measure the extent of that noncompliance. The IRS continues to actively work on new methods for estimating and projecting the tax gap to better reflect changes in taxpayer behavior as they emerge. Additional information: Federal Tax Compliance Research: Tax Gap Estimates for Tax Years 2014-2016 (Publication 1415)PDF Tax Gap Executive Summary (Publication 5364)PDF Tax Gap Map (Publication 5365)PDF

https://www.irs.gov/newsroom/irs-quickly-moves-forward-with-taxpayer-service-improvements-4000-hired-to-provide-more-help-to-people-during-2023-tax-season-on-phones

IR-2022-191, October 27, 2022 WASHINGTON — The Internal Revenue Service announced today significant progress to prepare for the 2023 tax filing season as the agency passed a milestone of hiring 4,000 new customer service representatives to help answer phones and provide other services. These assistors have been hired over the last several months and are being trained to provide help to taxpayers, including answering phone questions. This is part of a much wider IRS improvement effort tied to the Inflation Reduction Act funding approved in August. The IRS continues working hard on implementing the landmark 10-year legislation, and updates on other improvement areas will be provided in the near future. "The IRS is fully committed to providing the best service possible, and we are moving quickly to use new funding to help taxpayers during the busy tax season," said IRS Commissioner Chuck Rettig. "Our phone lines have been simply overwhelmed during the pandemic, and we have been unable to provide the help that IRS employees want to give and that the nation's taxpayers deserve. But help is on the way for taxpayers. As the newly hired employees are trained and move online in 2023, we will have more assistors on the phone than any time in recent history." The customer service representatives being hired are in various stages of being onboarded. When they join the IRS, they will receive weeks of training to help serve people and improve the taxpayer experience. The training will cover a wide range of issues including technical account management issues and understanding and respecting taxpayer rights. The goal is to add another 1,000 customer service representatives by the end of the year, bringing the total of new hires in this area to 5,000. Many employees will be in place for the start of the 2023 tax season, and others will join as their training is completed in the following weeks. Almost all of their training will be completed by Presidents Day 2023; traditionally the period when the IRS sees the highest phone volumes. The IRS anticipates phones will be answered at a much higher level during the 2023 filing season. IRS improvements and use of the new direct hire authority have speeded the hiring process. This year, these positions have been brought on since August; last year, it took approximately eight months to hire customer service representatives. "Even though we have new hires in the pipeline, our phone lines remain extremely busy," Rettig said. "We continue to urge people to first visit IRS.gov for information related to their tax questions. Many of the questions we receive can be answered online, providing faster answers for people than calling. We appreciate taxpayer's continued patience with us. Please know that we have dedicated employees across the IRS working hard every day to help people on the phone and in-person. IRS employees look forward to providing better service in the near future." In addition to the phone assistors, the IRS is also working to hire additional people throughout the agency, not just in taxpayer service areas but in Information Technology and compliance positions – all with a goal of improving the work the IRS does. "IRS employees make a difference for our nation, and we're excited that we can add more people to serve taxpayers and support the critical work of tax administration," Rettig said. "Positions will be open across the country in coming weeks and months, and we encourage potential candidates to visit USAJOBS.gov to look for opportunities."

https://www.irs.gov/newsroom/2023-ptin-renewal-period-underway-for-tax-professionals

IR-2022-190, October 27, 2022 WASHINGTON — The Internal Revenue Service urges the nation's more than 750,000 active tax return preparers to start the upcoming 2023 filing season smoothly by renewing their Preparer Tax Identification Numbers (PTINs) now. All current PTINs will expire December 31, 2022. Anyone who prepares or helps prepare a federal tax return for compensation must have a valid PTIN from the IRS before preparing returns, and they need to include the PTIN as the identifying number on any return filed with the IRS. The fee to renew or obtain a PTIN is $30.75 for 2023. The PTIN fee is non-refundable. Tax return preparers with a 2022 PTIN should use the online renewal process, which takes about 15 minutes to complete. A paper option, Form W-12PDF, along with the instructionsPDF, is also available for PTIN applications and renewals. However, the paper form can take four to six weeks to process. Failure to have and use a valid PTIN may result in penalties. To renew a PTIN online: Start at Tax Professionals. Select the "Renew or Register" button. Select "Log in" and enter the user ID and password to access the online PTIN system. Select the "Renew my PTIN" button from the main menu. Once completed, users will receive confirmation of their PTIN renewal. The online system not only allows PTIN renewal but tax return preparers may receive communications through a secure mailbox from the IRS Return Preparer Office. First-time PTIN applicants can also apply for a PTIN online. To apply for a PTIN online: Start at Tax Professionals. Select the "Renew or Register" button. Select "Create an Account" and follow the prompts to complete the account setup process and obtain a temporary password. Log in and follow the remaining steps to access the online PTIN system. Select the "Register for a PTIN" button from the main menu. PTIN system enhancements The online PTIN system has a new look and feel for a more optimized preparer experience when renewing or registering for a PTIN. Improvements include: Dynamic application design – system dynamically adapts based on the preparer's responses and guides them to the correct application. Mobile responsive/mobile friendly – system will adjust to device's screen size. Multi-year renewals/registrations – preparers can renew/register for multiple calendar years at one time. Expanded Support Channel – webchat available for assistance with PTIN account questions. Opportunity for non-credentialed tax preparers The Annual Filing Season Program is a voluntary IRS program intended to encourage non-credentialed tax return preparers to take continuing education courses to increase their knowledge and improve their filing season readiness. Those who choose to participate must renew their PTIN, complete up to 18 hours of continuing education from IRS-approved CE providers and consent to adhere to specific obligations in Circular 230PDF by December 31, 2022. After completing the steps, the return preparer receives an Annual Filing Season Program Record of Completion from the IRS. Program participants are then included in a public directory of return preparers with credentials and select qualifications on the IRS website. The searchable IRS directory helps taxpayers find preparers in their area who have completed the program or hold professional credentials recognized by the IRS. Enrolled agent credential The enrolled agent credential is an elite certification issued by the IRS to tax professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation and representation matters. Enrolled agents have unlimited representation rights, allowing them to represent any client before the IRS on any tax matter. As non-credentialed return preparers think about next steps in their professional career, the IRS encourages them to consider becoming an enrolled agent. All enrolled agents, regardless of whether they prepare returns, must renew their PTIN annually to maintain their active status.

https://www.irs.gov/newsroom/reminder-service-providers-others-may-receive-1099-ks-for-sales-over-600-in-early-2023

IR-2022-189, October 24, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year. There is no change to the taxability of income; the only change is to the reporting rules for Form 1099-K. As before, income, including from part-time work, side jobs or the sale of goods, is still taxable. Taxpayers must report all income on their tax return unless it is excluded by law, whether they receive a Form 1099-NEC, Nonemployee Compensation; Form 1099-K; or any other information return. The IRS emphasizes that money received through third-party payment applications from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable. The American Rescue Plan Act of 2021 (ARPA) lowered the reporting threshold for third-party networks that process payments for those doing business. Prior to 2022, Form 1099-K was issued for third party payment network transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. Now a single transaction exceeding $600 can trigger a 1099-K. The lower information reporting threshold and the summary of income on Form 1099-K enables taxpayers to more easily track the amounts received. Generally, greater income reporting accuracy by taxpayers also lowers the need and likelihood of later examination. Consider making estimated tax payments Income taxes must generally be paid as taxpayers earn or receive income throughout the year, either through withholding or estimated tax payments. If the amount of income tax withheld from one's salary or pension is not enough, or if they receive other types of income, such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, they may have to make estimated tax payments. If they are in business for themselves, individuals generally need to make estimated tax payments. Estimated tax payments are used to pay not only income tax, but other taxes as well, such as self-employment tax and alternative minimum tax. Publication 17, Your Federal Income Tax (For Individuals), provides general rules to help taxpayers pay the income taxes they owe. Additional helpful information is available in Chapter 5, Business Income, of Publication 334, Tax Guide for Small Business; Publication 525, Taxable and Nontaxable Income and on IRS.gov at Understanding Your Form 1099-K. Form 1099-K, its instructions and a set of answers to frequently asked questions are available on IRS.gov.

https://www.irs.gov/newsroom/401k-limit-increases-to-22500-for-2023-ira-limit-rises-to-6500

IR-2022-188, October 21, 2022 WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS today also issued technical guidance regarding all of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023 in Notice 2022-55PDF, posted today on IRS.gov. Highlights of changes for 2023 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500, up from $20,500. The limit on annual contributions to an IRA increased to $6,500, up from $6,000. The IRA catch‑up contribution limit for individuals aged 50 and over is not subject to an annual cost‑of‑living adjustment and remains $1,000. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $7,500, up from $6,500. Therefore, participants in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan who are 50 and older can contribute up to $30,000, starting in 2023. The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans is increased to $3,500, up from $3,000. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver's Credit all increased for 2023. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase‑out ranges for 2023: For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $73,000 and $83,000, up from between $68,000 and $78,000. For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $116,000 and $136,000, up from between $109,000 and $129,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $218,000 and $228,000, up from between $204,000 and $214,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000. The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $138,000 and $153,000 for singles and heads of household, up from between $129,000 and $144,000. For married couples filing jointly, the income phase-out range is increased to between $218,000 and $228,000, up from between $204,000 and $214,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000. The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $73,000 for married couples filing jointly, up from $68,000; $54,750 for heads of household, up from $51,000; and $36,500 for singles and married individuals filing separately, up from $34,000. The amount individuals can contribute to their SIMPLE retirement accounts is increased to $15,500, up from $14,000. Details on these and other retirement-related cost-of-living adjustments for 2023 are in Notice 2022-55PDF, available on IRS.gov.

https://www.irs.gov/newsroom/during-national-cybersecurity-month-irs-and-security-summit-partners-offer-tips

IR-2022-187, October 21, 2022 WASHINGTON — The Internal Revenue Service and its Security Summit partners today urged families to remain vigilant year-round and consider taking additional steps to protect their personal informationPDF during National Cybersecurity Month. Cybersecurity Awareness Month, conducted every October, is a collaboration between government and private industry to raise awareness about digital security and empower everyone to protect themselves against cybercrime. While the IRS and its Security Summit partners continue a robust effort fighting identity theft and fraudulent tax returns, help is still needed. Families, especially teens and senior citizens, need to know the importance of being cautious and how to stay safe online. The Security Summit is a coalition of state tax agencies, private-sector tax industry officials and the IRS that works year-round to protect taxpayers. Together, they are fighting back against emerging criminal threats in the United States and overseas that use identity theft to file fraudulent returns for refunds. During National Cybersecurity Month, the IRS is asking parents, families and others to be mindful of the potential dangers in sharing devices at home, shopping online and using social media. Often, the less experienced can put themselves and others at risk by leaving an unnecessary trail of personal information for fraudsters. Online safety A few simple suggestions that can help protect children and other vulnerable groups from potential dangers to their personal data are: Recognize and avoid scams. Phishing emails, fake social media profiles, threatening phone calls and texts from thieves posing as the IRS or legitimate organizations, especially government programs, present ongoing risks. Learn what a scam call sounds like, and do not click on links or download attachments from unsolicited suspicious emails from unknown senders and verify contact/content/context with trusted senders. Never overshare. Providing only what is necessary will minimize online exposure to scammers and criminals. Do not share too much personal information like birthdates, addresses, age, financial information such as bank account and Social Security numbers. Public Wi-Fi networks. Connection to Wi-Fi in a mall or coffee shop is convenient but it may not be safe. Cybercriminals can easily intercept personal information on public networks so always use a virtual private network when connecting to public Wi-Fi. Use security software and anti-virus protections. Make sure electronic devices have security software that is always turned on and can automatically update. Encrypt sensitive files such as tax records stored on computers. Ensure all family members have comprehensive protection, especially if devices are being shared. Use strong, unique passwords for each account. Consider a password manager, enable two-factor or multi-factor authentication for business, personal and online accounts. Remember, the IRS does not use text messages or social media to discuss personal tax issues, such as those involving tax refunds or tax bills. For more information, visit the Tax Scams and Consumer Alerts page on IRS.gov. Additional information about tax scams is also available on IRS social media sites, including YouTube videos. Also see Publication 4524, Security Awareness for TaxpayersPDF.

https://www.irs.gov/newsroom/adjust-tax-withholding-now-to-pay-the-proper-amount-of-tax

IR-2022-186, October 20, 2022 WASHINGTON — The Internal Revenue Service today urged taxpayers to check their tax withholding while there's time left in 2022 to benefit from any necessary changes. An adjustment made now will help people avoid a big surprise, such as a big refund or a balance due, at tax time in 2023. Life brings constant changes to individual financial situations. Events like marriage, divorce, new tax law, a new child or home purchase can all be reasons to adjust withholding. Tax Withholding Estimator The Tax Withholding Estimator, also available in Spanish, can help people determine if they have too much income tax withheld and how to make an adjustment to put more cash into their own pocket. In other cases, it can help taxpayers see that they should withhold more or make an estimated tax payment to avoid a tax bill when they file their tax return next year. The tool offers workers, retirees, self-employed individuals and other taxpayers a user-friendly, step-by-step tool for effectively tailoring the amount of income tax they should have withheld from wages and pension payments based on their complete set of facts and circumstances. Pay as you go Taxes are generally paid throughout the year whether from salary withholding, quarterly estimated tax payments or a combination of both. About 70% of taxpayers, however, withhold too much every year. This typically results in a refund. The average refund in 2022 is just under $3,000. A few other facts about refunds: Taxpayers do not have to get one. Proper withholding adjustments help people boost take home pay rather than be over withheld and get it back as a tax refund. While most are issued in 21 days or less from an error-free and paperless tax return, many take longer for different reasons. Taxpayers are advised not to rely on a refund for big purchases. Direct Deposit is the easiest and most convenient way to get a refund. More than 90% of all refunds are issued this way. Paper return processing delays stemming from the pandemic are six months or more. The IRS COVID-19 operations page offers complete details. Other items may affect 2022 taxes Some unforeseen life events can be a trigger to make withholding adjustments. They include: Coronavirus tax relief. Tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by the coronavirus (COVID-19). Disasters such as wildfires and hurricanes. Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location a major disaster area. Job loss. IRS Publication 4128, Tax Impact of Job LossPDF explains how this unfortunate circumstance can create new tax issues. Workers moving into the gig economy due to the pandemic. The IRS advises people earning income in the gig economy to consider estimated tax payments to avoid a balance due or penalties when they file. For more information about estimated taxes and tax withholding, see Tax Withholding at IRS.gov.

https://www.irs.gov/newsroom/irs-deadline-to-file-2019-and-2020-tax-returns-to-get-covid-penalty-relief-postponed-in-declared-disaster-areas

IR-2022-185, October 19, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers in areas covered by certain Federal Emergency Management Agency (FEMA) disaster declarations they may have more time to file their returns to qualify for the penalty relief under Notice 2022-36 for their 2019 and 2020 tax returns. Under Notice 2022-36, penalties for late-filing certain tax returns, as well as penalties for not reporting certain required information on the Form 1065 or Form 1120-S, are waived or abated if the relevant return was filed on or before September 30, 2022. But individuals and households that reside or have a business in recently declared FEMA disaster areas have postponed deadlines to file the return to get this relief, as noted below. Areas with a deadline of November 15, 2022, include: Counties in Missouri identified under FEMA's Major Disaster Declaration 4665. Counties in Kentucky identified under FEMA's Major Disaster Declaration 4633. The island of St. Croix in the U.S. Virgin Islands. Members of the Tribal Nation of the Salt River Pima Maricopa Indian Community. Areas with a deadline of February 15, 2023, include: Florida, Puerto Rico, North Carolina, South Carolina, Areas in Alaska identified under FEMA's Major Disaster Declaration 4672 and Hinds County, Mississippi. The relief under Notice 2022-36 applies to the failure-to-file penalty that is typically assessed at a rate of 5% per month, up to 25% of the unpaid tax when a federal income tax return is filed late. This relief applies to forms in both the Form 1040 and 1120 series, as well as others listed in Notice 2022-36, posted on IRS.gov. Unlike the failure-to-file penalty, the failure-to-pay penalty and interest will still apply to any unpaid tax. The failure-to-pay penalty is normally 0.5% (one-half-of-one percent) per month, up to 25%. The interest rate is currently 6%, compounded daily. Penalty relief for 2019 and 2020 returns is not available in some situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. This relief is limited to the penalties that the notice specifically states are eligible for relief. For ineligible penalties, such as the failure-to-pay penalty, taxpayers may use existing penalty relief procedures, such as applying for relief under the reasonable cause criteria or the First Time Abate program. Visit IRS.gov/penaltyrelief for details. Different relief applies to 2021 returns. Visit the disaster relief page on IRS.gov for more information about tax year 2021. More information: IR-2022-175, IRS: Don't miss this important Oct. 17 tax extension deadline IR-2022-163, Reminder: File 2019 and 2020 returns by Sept. 30 to get COVID penalty relief

https://www.irs.gov/newsroom/employers-urged-to-electronically-file-payroll-tax-returns-by-oct-31

IR-2022-184, October 19, 2022 WASHINGTON — The Internal Revenue Service today reminded employers to file the next quarterly payroll tax return by the approaching October 31, 2022, due date, and urged them to do so electronically. While paper filing is available, the IRS strongly encourages e-filing. E-filing is the most secure, accurate method to file returns and saves taxpayers' time. E-filing is easy with auto-populating forms and schedules with a step-by-step process that performs calculations for the employer. The IRS acknowledges receipt of e-filed returns within 24 hours, giving taxpayers reassurance that their return was not misplaced or lost in the mail. E-file users also receive missing information alerts. Two options to electronically file payroll tax returns Employers can choose to self-file by purchasing IRS-approved software that meets their specific needs. There may be a fee to electronically file returns through the software, and the software will require a signature to e-file the returns. Depending on the software they choose, taxpayers will have one or both of the following options: Apply for an online signature PIN Scan and attach Form 8453-EMP, Employment Tax Declaration for an IRS e-file Return, for the required signature. The second option for employers is to hire a tax professional to prepare and file their employment tax returns. Taxpayers can use the Authorized IRS e-file Provider Locator Service to find a tax professional who can file on behalf of the business. For more information on electronic filing of payroll tax returns, see the E-file Employment Tax Forms page. Tax relief in disaster situations Employers can find information on the most recent tax relief provisions for taxpayers affected by disaster situations on IRS.gov. See FAQs for Disaster Victims for information about the definition of an affected taxpayer. IRS News from Around the Nation provides IRS news specific to local areas, primarily disaster relief or tax provisions that affect certain states.

https://www.irs.gov/newsroom/employers-warned-to-beware-of-third-parties-promoting-improper-employee-retention-credit-claims

IR-2022-183, October 19, 2022 WASHINGTON — The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit. These third parties often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that wage deductions claimed on the business' federal income tax return must be reduced by the amount of the credit. If the business filed an income tax return deducting qualified wages before it filed an employment tax return claiming the credit, the business should file an amended income tax return to correct any overstated wage deduction. Businesses are encouraged to be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. Taxpayers are always responsible for the information reported on their tax returns. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest. What is the ERC? The ERC is a refundable tax credit designed for businesses who continued paying employees while shutdown due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020 to December 31, 2021. Eligible taxpayers can claim the ERC on an original or amended employment tax return for a period within those dates. To be eligible for the ERC, employers must have: sustained a full or partial suspension of operations due to orders from an appropriate governmental authorityPDF limiting commerce, travel, or group meetings due to COVID-19 during 2020 or the first three quarters of 2021, experienced a significant decline in gross receipts during 2020PDF or a decline in gross receipts during the first three quarters of 2021PDF, or qualified as a recovery startup businessPDF for the third or fourth quarters of 2021. As a reminder, only recovery startup businesses are eligible for the ERC in the fourth quarter of 2021. Additionally, for any quarter, eligible employers cannot claim the ERC on wages that were reported as payroll costs in obtaining PPP loan forgiveness or that were used to claim certain other tax credits. To report tax-related illegal activities relating to ERC claims, submit Form 3949-A, Information ReferralPDF. You should also report instances of fraud and IRS-related phishing attempts to the Treasury Inspector General for Tax Administration at 800-366-4484. Go to IRS.gov to learn more about eligibility requirements and how to claim the Employee Retention Credit : For qualified wages paid after March 12, 2020, and before January 1, 2021 – Notice 2021-20, Notice 2021-49, and Revenue Procedure 2021-33 For qualified wages paid after December 31, 2020, and before July 1, 2021 – Notice 2021-23, Notice 2021-49 and Revenue Procedure 2021-33 For qualified wages paid after June 30, 2021, and before October 1, 2021 – Notice 2021-49 and Revenue Procedure 2021-33 For qualified wages paid after September 30, 2021, and before January 1, 2022 – Notice 2021-49 and Notice 2021-65 Additional Information Employee Retention Credit - 2020 vs 2021 Comparison Chart Form 941-X Instructions (April 2022 Revision)PDF – for use in conjunction with Form 941 Instructions from relevant calendar quarter Form 941 Instructions (December 2021 Revision)PDF Form 941 Instructions (2020 Revisions)PDF Form 943PDF, 943-XPDF, 944PDF, 944-XPDF, CT-1PDF and CT-1-X InstructionsPDF

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

IR-2022-182, October 18, 2022 WASHINGTON — The Internal Revenue Service today announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2022-38PDF provides details about these annual adjustments. New for 2023 The Inflation Reduction Act extended certain energy related tax breaks and indexed for inflation the energy efficient commercial buildings deduction beginning with tax year 2023. For tax year 2023, the applicable dollar value used to determine the maximum allowance of the deduction is $0.54 increased (but not above $1.07) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent. The applicable dollar value used to determine the increased deduction amount for certain property is $2.68 increased (but not above $5.36) by $0.11 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent. Highlights of changes in Revenue Procedure 2022-38 The tax year 2023 adjustments described below generally apply to tax returns filed in 2024. The tax items for tax year 2023 of greatest interest to most taxpayers include the following dollar amounts: The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700 up $1,800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.   Marginal Rates: For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly). The other rates are:   35% for incomes over $231,250 ($462,500 for married couples filing jointly); 32% for incomes over $182,100 ($364,200 for married couples filing jointly); 24% for incomes over $95,375 ($190,750 for married couples filing jointly); 22% for incomes over $44,725 ($89,450 for married couples filing jointly); 12% for incomes over $11,000 ($22,000 for married couples filing jointly).   The lowest rate is 10% for incomes of single individuals with incomes of $11,000 or less ($22,000 for married couples filing jointly).   The Alternative Minimum Tax exemption amount for tax year 2023 is $81,300 and begins to phase out at $578,150 ($126,500 for married couples filing jointly for whom the exemption begins to phase out at $1,156,300). The 2022 exemption amount was $75,900 and began to phase out at $539,900 ($118,100 for married couples filing jointly for whom the exemption began to phase out at $1,079,800).   The tax year 2023 maximum Earned Income Tax Credit amount is $7,430 for qualifying taxpayers who have three or more qualifying children, up from $6,935 for tax year 2022. The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.   For tax year 2023, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $300, up $20 from the limit for 2022.   For the taxable years beginning in 2023, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements increases to $3,050. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $610, an increase of $40 from taxable years beginning in 2022.   For tax year 2023, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,650, up $200 from tax year 2022; but not more than $3,950, an increase of $250 from tax year 2022. For self-only coverage, the maximum out-of-pocket expense amount is $5,300, up $350 from 2022. For tax year 2023, for family coverage, the annual deductible is not less than $5,300, up from $4,950 for 2022; however, the deductible cannot be more than $7,900, up $500 from the limit for tax year 2022. For family coverage, the out-of-pocket expense limit is $9,650 for tax year 2023, an increase of $600 from tax year 2022.   For tax year 2023, the foreign earned income exclusion is $120,000 up from $112,000 for tax year 2022.   Estates of decedents who die during 2023 have a basic exclusion amount of $12,920,000, up from a total of $12,060,000 for estates of decedents who died in 2022.   The annual exclusion for gifts increases to $17,000 for calendar year 2023, up from $16,000 for calendar year 2022.   The maximum credit allowed for adoptions for tax year 2023 is the amount of qualified adoption expenses up to $15,950, up from $14,890 for 2022 Items unaffected by indexing By statute, certain items that were indexed for inflation in the past are currently not adjusted. The personal exemption for tax year 2023 remains at 0, as it was for 2022, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act.   For 2023, as in 2022, 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.   The modified adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit provided in § 25A(d)(2) is not adjusted for inflation for taxable years beginning after December 31, 2020. The Lifetime Learning Credit is phased out for taxpayers with modified adjusted gross income in excess of $80,000 ($160,000 for joint returns).

https://www.irs.gov/newsroom/grandparents-and-other-relatives-with-eligible-dependents-can-qualify-for-2021-child-tax-credit

IR-2022-181, October 17, 2022 WASHINGTON — The Internal Revenue Service reminded families today that some taxpayers who claim at least one child as their dependent on their tax return may not realize they could be eligible to benefit from the Child Tax Credit (CTC). Eligible taxpayers who received advance Child Tax Credit payments last year 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 last year can claim the full credit by filing a 2021 tax return. The IRS urges grandparents, foster parents or people caring for siblings or other relatives to check their eligibility to receive the 2021 Child Tax Credit. It's important for people who might qualify for this credit to review the eligibility rules to make sure they still qualify. Taxpayers can use the Interactive Tax Assistant to check eligibility. Taxpayers who haven't qualified in the past should also check because they may now be able to claim the credit. To receive it, eligible individuals must file a 2021 federal tax return. What is the Child Tax Credit expansion? The Child Tax Credit expansion, which is a part of the American Rescue Plan, increased the amount of money per child families can receive and expanded who can receive the payments. The American Rescue Plan increased the Child Tax Credit from $2,000 to $3,600 per child for children under the age of six, from $2,000 to $3,000 for children at least age 6 and raised the age limit from 16 to 17 years old. The American Rescue Plan Act of 2021 expanded the Child Tax Credit for tax year 2021 only. Who qualifies for the Child Tax Credit? Taxpayers can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States and issued by the Social Security Administration before the due date of their tax return (including an extension if the extension was requested by the due date). To be a qualifying child for the 2021 tax year, the dependent generally must: Be under age 18 at the end of the year. Be their son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or a descendant of one of these (for example, a grandchild, niece, or nephew). Provide no more than half of their own financial support during the year. Have lived with the taxpayer for more than half the year. Be properly claimed as their dependent on their tax return. Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid. Have been a U.S. citizen, U.S. national or U.S. resident alien. What are the eligibility factors? Individuals qualify for the full amount of the 2021 Child Tax Credit for each qualifying child if they meet all eligibility factors and their annual income is not more than: $150,000 if they're married and filing a joint return, or if they're filing as a qualifying widow or widower. $112,500 if they're filing as a head of household. $75,000 if they're a single filer or are married and filing a separate return. Parents and guardians with higher incomes may be eligible to claim a partial credit. Claiming these benefits can result in tax refunds for many individuals. Individuals should file electronically and choose direct deposit to avoid delays and receive their refund faster. Finding free tax return preparation A limited number of  Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE) program sites remain open and available to help eligible taxpayers get their tax returns prepared and filed for free by IRS trained and certified volunteers. Low- and moderate-income taxpayers as well as those age 60 and above can check to see if there is an available site in or near their community by using the VITA/TCE Site Locator. IRS Free File available until Nov. 17 to help more people receive credits The IRS Free File program, available only through IRS.gov and offered in partnership the tax software industry's Free File Alliance, offers eligible taxpayers brand-name tax preparation software to use at no cost. The software does all the work of finding deductions, credits and exemptions for which the taxpayer qualifies. It's free for most individual filers who earned $73,000 or less in 2021. Some of the Free File packages also offer free state tax returns to those who qualify. Taxpayers who earned more than $73,000 in 2021 and are comfortable preparing their own taxes can use Free File Fillable Forms. This electronic version of paper IRS tax forms is also used to file tax returns online. To help more people claim a variety of tax credits and benefits, Free File will remain open for an extra month this year, until November 17, 2022. The IRS is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation. The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit, Recovery Rebate Credit (RRC) or Earned Income Tax Credit (EITC) but haven't yet filed a 2021 return to claim them. The letter, printed in both English and Spanish, provides a brief overview of each of these three credits. These and other tax benefits were expanded under last year's American Rescue Plan Act and other recent legislation. Even so, the only way to get the valuable benefits is to file a 2021 tax return. 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 tax return should do so this year, even if they haven't been required to file in recent years. People can file a tax return even if they haven't yet received their letter. The IRS reminds people that there's no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline. The fastest and easiest way to get a refund is to file an accurate return electronically and choose direct deposit.

https://www.irs.gov/newsroom/irs-joins-effort-to-fight-charity-fraud-during-international-recognition-week

IR-2022-180, October 17, 2022 WASHINGTON — The Internal Revenue Service announced its continued support by joining international efforts to fight fraud during Charity Fraud Awareness Week, October 17-21. The IRS partners in this effort as part of its ongoing commitment to fight fraud against charities, businesses and individuals. It's estimated that charitable organizations will lose 5% of their revenue each year to fraud, according to the Fraud Advisory Panel, a UK-based organization leading the effort by organizing this week of awareness. Experts say cybercrime is on the rise, including attacks on charities, their supporters and beneficiaries. Charities, regulators, agencies, law enforcement and other not-for-profit stakeholders around the world are working together to raise awareness about fraud and cybercrime that affects charities. These efforts resulted in seven days when supporters actively discuss fraud, share best practices and offer helpful resources. How to verify a charity "We'd like to thank the Fraud Advisory Panel for reminding donors to remain vigilant," said IRS Director of Exempt Organizations & Government Entities Rob Malone. "Unfortunately, natural disasters, like Hurricane Ian, provide an opportunity for charity scammers to take advantage of genuine efforts to help. I urge donors to verify a charity's tax-exempt status at Tax Exempt Organization Search before donating goods, services or money." Fake Charities In addition to cybercrime targeting charities, criminals who create fake charities are also a problem. Fake charities are part of the IRS's Dirty Dozen tax scams for 2022. As noted above, taxpayers should verify legitimate and qualified charities using the Tax Exempt Organization Search tool on IRS.gov. Donors should never feel pressured to give immediately. Links to more information A special website was created for Charity Fraud Awareness Week and features information to help partners, charities and other tax-exempt organizations and non-profits find: Details about the awareness week Free resources A fraud pledge for organizations A listing of webinars and other events Those encouraged to participate in the week's activities include: Trustees, staff and volunteers from charities, non-government organizations and non-profits Organizations that represent the interests of non-profits Accountants, auditors and those acting as professional advisors to non-profits Regulators, law enforcement officials and policymakers working to safeguard non-profits Visit the Fraud Advisory Panel website to learn more about Charity Fraud Awareness Week and how to get involved.

https://www.irs.gov/newsroom/irs-reminds-taxpayers-of-upcoming-filing-extension-deadline-free-file-remains-open-until-nov-17

IR-2022-179, October 14, 2022 WASHINGTON — The Internal Revenue Service reminds taxpayers today that those who requested an extension of time to file their 2021 income tax return that the deadline is Monday, October 17. IRS Free File remains open until November 17 for those who still need to file their 2021 tax returns. This includes those who qualify for the Child Tax Credit, Recovery Rebate Credit or Earned Income Tax Credit but haven't yet filed a 2021 tax return to claim them. IRS Free File is a public-private partnership between the IRS and tax preparation software industry leaders who provide their brand-name products for free. There are eight Free File products available in English and two in Spanish. IRS Free File provides two ways for taxpayers to prepare and file their 2021 federal income tax return online for free: IRS Partner Sites. Traditional IRS Free File provides free online tax preparation and filing options on IRS partner sites. Individual taxpayers whose adjusted gross income (AGI) is $73,000 or less qualify for any IRS Free File partner offers. Free File lets individuals electronically prepare and file their federal income tax online using guided tax preparation. Free Fillable Forms. For taxpayers whose AGI is greater than $73,000, there's the Free File Fillable Forms option. It provides electronic federal tax forms that can be filled out and filed online for free. To use this option, taxpayers should know how to prepare their own tax return. Always start at IRS.gov: From the homepage, select File Your Taxes for Free. Use the IRS Free File Lookup Tool to narrow the list of providers or the Browse All Offers page to see a full list of providers. Follow the link to the chosen IRS Free File provider's website. Taxpayers who requested the six-month filing extension should complete their tax returns and file on or before the October 17 deadline. The IRS Free File program gives eligible taxpayers an opportunity to file their taxes and claim the 2021 Recovery Rebate Credit, their full Child Tax Credit, the Earned Income Tax Credit or other valuable credits for which they qualify. The IRS reminds taxpayers that the fastest way to get a tax refund is to file electronically and choose direct deposit. Prior year returns can only be filed electronically by registered tax preparers for the two previous tax years. Otherwise, taxpayers must print, sign and mail prior year returns. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications lists qualified local preparers. Free File to stay open until Nov. 17 to help refund filers eligible for stimulus, Child Tax Credit, EITC Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation. The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit, Recovery Rebate Credit or Earned Income Tax Credit but haven't yet filed a 2021 return to claim them. The letter, printed in both English and Spanish, provides a brief overview of each of these three credits. These and other tax benefits were expanded under last year's American Rescue Plan Act and other recent legislation. Even so, the only way to get the valuable benefits is to file a 2021 tax return. 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 tax return should do so this year, even if they haven't been required to file in recent years. People can file a tax return even if they haven't yet received their letter. The IRS reminds people that there's no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline. The fastest and easiest way to get a refund is to file an accurate return electronically and choose direct deposit. To help people claim these benefits, without charge, Free File will remain open for an extra month this year, until November 17, 2022. Available only at IRS.gov/freefile, Free File enables people whose incomes are $73,000 or less to file a return online for free using brand-name software. Free File is sponsored by the Free File Alliance, a partnership between the IRS and the tax-software industry.

https://www.irs.gov/newsroom/irs-sending-letters-to-over-9-million-potentially-eligible-families-who-did-not-claim-stimulus-payments-eitc-child-tax-credit-and-other-benefits-free-file-to-stay-open-until-nov-17

IR-2022-178, October 13, 2022 WASHINGTON — Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation. The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit (CTC), Recovery Rebate Credit (RRC) or Earned Income Tax Credit (EITC) but haven't yet filed a 2021 return to claim them. The letter, printed in both English and Spanish, provides a brief overview of each of these three credits. "The IRS wants to remind potentially eligible people, especially families, that they may qualify for these valuable tax credits," said IRS Commissioner Chuck Rettig. "We encourage people who haven't filed a tax return yet for 2021 to review these options. Even if they aren't required to file a tax return, they may still qualify for several important credits. We don't want people to overlook these tax credits, and the letters will remind people of their potential eligibility and steps they can take." Claiming the credits These and other tax benefits were expanded under last year's American Rescue Plan Act and other recent legislation. Even so, the only way to get the valuable benefits is to file a 2021 tax return. 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 tax return should do so this year, even if they haven't been required to file in recent years. For this mailing, Treasury's Office of Tax Analysis identified individuals who don't typically have a tax return filing requirement because they appear to have very low incomes, based on Forms W-2, 1099s and other third-party statements available to the IRS. The letters are similar to a special IRS mailing made in September 2020 encouraging 9 million potential non-filers to submit a tax return for the first Economic Impact Payment. This is part of an ongoing effort to encourage people who aren't normally required to file to look into possible benefits available to them under the tax law. Every year, people can overlook filing a tax return when they may be entitled tax credits and a refund. People can file a tax return even if they haven't yet received their letter. The IRS reminds people that there's no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline. The fastest and easiest way to get a refund is to file an accurate return electronically and choose direct deposit. Free File to stay open until November 17 To help people claim these benefits, without charge, Free File will remain open for an extra month this year, until November 17, 2022. Available only at IRS.gov/freefile, Free File enables people whose incomes are $73,000 or less to file a return online for free using brand-name software. Free File is sponsored by the Free File Alliance, a partnership between the IRS and the tax-software industry. People can also visit ChildTaxCredit.gov to file a 2021 income tax return. Individuals whose incomes are below $12,500 and couples whose incomes are below $25,000 may be able to file a simple tax return to claim the 2021 Recovery Rebate Credit—which covers any stimulus payment amounts from 2021 they may have missed—and the Child Tax Credit. Individuals do not need to have children in order to use Get Your Child Tax Credit to find the right filing solution for them. Further details on these expanded tax benefits The three credits include: An expanded Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021. The total credit can be as much as $3,600 per child. A more generous Earned Income Tax Credit: The law boosted the EITC for childless workers. There are also changes that can help low- and moderate-income families with children. The credit can be as much as $1,502 for workers with no qualifying children, $3,618 for those with one child, $5,980 for those with two children and $6,728 for those with at least three children. The Recovery Rebate Credit: Those who missed out on last year's third round of Economic Impact Payments (EIP3) may be eligible to claim the RRC. Often referred to as stimulus payments, this credit can also help eligible people whose EIP3 was less than the full amount, including those who welcomed a child in 2021. The maximum credit is $1,400 for each qualifying adult, plus $1,400 for each eligible child or adult dependent. Besides these three credits, many filers may also qualify for two other benefits with a tax return filed for 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 deduction for gifts to charity: Most tax-filers 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 individuals can deduct up to $300 in donations. In addition, itemizers who make large cash donations often qualify to deduct the full amount in 2021. Further details on all these benefits are available in a fact sheet, FS-2022-10, posted earlier this year on IRS.gov. Helpful reminders The IRS urges everyone to make sure they have all their year-end 2021 tax 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. People 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. For married couples who received joint payments, each spouse will need to sign into their own account to retrieve their separate amounts. Whether or not they use Free File, anyone can find answers to their tax questions, forms and instructions and easy-to-use tools online at IRS.gov. They can use these resources to get help when they need it, at home, at work or on the go. Claiming these credits has no effect on the ability of someone to be eligible for federal benefits like Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Claiming these credits also has no effect on an individual's immigration status or their ability to get a green card or immigration benefits

https://www.irs.gov/newsroom/irs-expanding-dyed-diesel-penalty-relief-as-a-result-of-hurricane-ian

IR-2022-177, October 11, 2022 WASHINGTON — The Internal Revenue Service, in response to continued disruptions resulting from Hurricane Ian, will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway in the state of Florida. This penalty relief expands previously issued penalty relief that applied only to emergency vehicles. This relief is retroactive to September 28, 2022 and will remain in effect through October 19, 2022. This penalty relief is available to any person that sells or uses dyed diesel fuel for highway use. In the case of the operator of the vehicle in which the dyed diesel fuel is used, the relief is available only if the operator or the person selling such fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for highway use. The IRS will not impose penalties for failure to make semimonthly deposits of tax for dyed diesel fuel sold for use or used in diesel powered vehicles on the highway in the state of Florida during the relief period. IRS Publication 510, Excise Taxes, has information on the proper method for reporting and paying the tax. Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use, and to local governments. The IRS is closely monitoring the situation and will provide additional relief as needed.

https://www.irs.gov/newsroom/online-seminars-from-2022-irs-nationwide-tax-forum-now-available

IR-2022-176, October 11, 2022 WASHINGTON — Those who may have missed the 2022 IRS Nationwide Tax Forum now have a second chance to view the seminars and earn continuing education credit through the 2022 Nationwide Tax Forums Online. The online version of the forum consists of 18 new self-study seminars that use interactive videos, PowerPoint slides and transcripts to educate tax professionals. This year, the online version includes four Spanish-language seminars. The 2022 Nationwide Tax Forums Online includes the following seminars: IRS Commissioner Chuck Rettig’s Keynote Address Tax Law Changes for Tax Year 2022 — in English and Spanish Professional Responsibility Obligations (ethics) — in English and Spanish Tax Treatment of Digital Assets Tax-Exempt Organizations Update Emerging Cyber Crimes — in English and Spanish The Nationwide Tax Forums Online is registered as a qualified sponsor of continuing education with the IRS Return Preparer Office and the National Association of State Boards of Accountancy. For a fee, CPAs, Enrolled Agents and Annual Filing Season Program participants can earn continuing education credit. The online forum seminars can also be reviewed for free. Individuals who choose to review (or audit) the seminars will not receive continuing education credit. In addition to the newly added 2022 seminars, numerous seminars from prior IRS Tax Forums are also available. For more information and to access the seminars, visit IRS Nationwide Tax Forums Online.  

https://www.irs.gov/newsroom/irs-dont-miss-this-important-oct-17-tax-extension-deadline

IR-2022-175, October 7, 2022 WASHINGTON — The Internal Revenue Service today reminds taxpayers who requested an extension to file their 2021 tax return to do so by Monday, October 17. While October 17 is the last day for most people to file a Form 1040 to avoid the late filing penalty, those who still need to file should do so as soon as possible. If they have their information ready, there's no need to wait. However, some taxpayers may have additional time. They include: Members of the military and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due. The IRS calls special attention to people hit by recent national disasters, including Hurricane Ian. Taxpayers with an IRS address of record in areas covered by Federal Emergency Management Agency disaster declarations in Missouri, Kentucky, the island of St. Croix in the U.S. Virgin Islands and members of the Tribal Nation of the Salt River Pima Maricopa Indian Community have until November 15, 2022, to file various individual and business tax returns. Taxpayers in Florida, Puerto Rico, North Carolina, South Carolina, parts of Alaska and Hinds County, Mississippi, have until February 15, 2023. This list continues to be updated regularly; potentially affected taxpayers by recent storms should visit the disaster relief page on IRS.gov for the latest information. IRS Free File and other resources 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 Child Tax Credit, the Earned Income Tax Credit and other important credits. IRS Free File Fillable Forms is available for taxpayers whose 2021 AGI is greater than $73,000 and are 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, AGI amounts from last year's tax return, estimated tax payment amounts and refunds applied as a credit. Taxpayers can also get answers to many tax law questions by using the IRS's Interactive Tax Assistant tool. Additionally, taxpayers can view tax information in several languages by clicking on the "English" tab located on the IRS.gov home page. Schedule federal tax payments electronically Taxpayers can file now and schedule their federal tax payments up to the October 17 due date. They can pay online, by phone or with their mobile device and the IRS2Go app. When paying federal taxes electronically, taxpayers should remember: Electronic payment options are the optimal way to make a tax payment. They can pay when they file electronically using tax software online. If using a tax preparer, taxpayers should ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account. Online Account and IRS Direct Pay allow taxpayers to pay online directly from a checking or savings account for free, and to schedule payments up to 365 days in advance. Taxpayers should be aware they will need to create an account to use Online Account services. Choices to pay with a credit card, debit card or digital wallet option are available through a payment processor. The payment processor, not the IRS, charges a fee for this service. The IRS2Go mobile app provides mobile-friendly payment options, including Direct Pay and debit or credit card payments. The Electronic Federal Tax Payment System (EFTPS) is convenient, safe and easy. Choose to pay online or by phone, using the EFTPS Voice Response System. EFTPS payments must be scheduled by 8 p.m. ET at least one calendar day before the tax due date.

https://www.irs.gov/newsroom/october-fbar-extension-deadline-nears-for-foreign-bank-and-financial-account-holders

Updated October 13, 2022: Filers affected by certain natural disasters have their FBAR due date further extended. IR-2022-174, October 6, 2022 WASHINGTON – The Internal Revenue Service today reminds U.S. citizens, resident aliens and domestic legal entities that the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is October 15. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network's (FinCEN)PDF website. Filers who missed the April 15 annual due date earlier this year received an automatic extension until October 15, 2022, to file the FBAR. They did not need to request the extension.  Filers affected by a natural disaster may have their FBAR due date further extended. Its important filers review relevant FBAR Relief Notices for complete information.  On October 6, 2022, FinCEN announced that victims of Hurricane Fiona in Puerto Rico; Hurricane Ian in Florida, North Carolina, and South Carolina; and storms and floods in parts of Alaska have until February 15, 2023, to file FBARs for the 2021 calendar year. Who needs to file? The Bank Secrecy Act requires U.S. persons to file an FBAR if: They have a financial interest in or signature or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account located outside the United States, and The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year 2021. Because of this threshold, the IRS encourages U.S. persons 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 a domestic legal entity such as a partnership, corporation, limited liability company, estate or trust. How to file Filers do not file the FBAR with their federal income tax return. The 2021 FBAR must be filed electronically with FinCEN and is only available through the BSA E-Filing System website. Individuals who are unable to e-file their FBAR must contact FinCEN at 800-949-2732 or FRC@fincen.gov to request an alternative filing method. Callers from outside the U.S. can contact the helpline at 703-905-3975. Avoid penalties Those who don't file an accurate FBAR when required may be subject to significant civil and criminal penalties that can result in a fine and/or imprisonment, depending on the facts and circumstances. FBAR resources on IRS.gov: Report of Foreign Bank and Financial Accounts (FBAR) Details on reporting foreign bank and financial accounts (FS-2022-24) Publication 5569, Report of Foreign Bank & Financial Accounts (FBAR) Reference GuidePDF

https://www.irs.gov/newsroom/irs-hurricane-ian-victims-in-the-carolinas-qualify-for-tax-relief-oct-17-deadline-other-dates-extended-to-feb-15

IR-2022-173, October 5, 2022 WASHINGTON — Hurricane Ian victims throughout both North Carolina and South Carolina now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. This is similar to relief announced last week for Ian victims in Florida. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business anywhere in both the Carolinas and Florida qualify for tax relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on September 25, 2022 in South Carolina and September 28 in North Carolina. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022. In addition, in South Carolina, penalties on payroll and excise tax deposits due on or after September 25, 2022, and before October 11, 2022, will be abated as long as the deposits are made by October 11, 2022. In North Carolina, penalties on payroll and excise tax deposits due on or after September 28, 2022, and before October 13, 2022, will be abated as long as the deposits are made by October 13, 2022. The IRS disaster relief 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 (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – 3585-SC for South Carolina or 3586-NC for North Carolina − 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 Hurricane Ian and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

https://www.irs.gov/newsroom/irs-asks-for-comments-on-upcoming-energy-guidance

IR-2022-172, October 5, 2022 WASHINGTON — The Internal Revenue Service today issued six notices asking for comments on different aspects of extensions and enhancements of energy tax benefits in the Inflation Reduction Act. The IRS anticipates that constructive comments from interested parties will aid the agency in drafting the guidance items most reflective of the needs of taxpayers entitled to claim energy credits. Notice 2022-46PDF requests comments on credits for clean vehicles. Notice 2022-47PDF requests comments on energy security tax credits for manufacturing. Notice 2022-48PDF requests comments on incentive provisions for improving the energy efficiency of residential and commercial buildings. Notice 2022-49PDF requests comments on certain energy generation incentives. Notice 2022-50PDF requests comments on elective payment of applicable credits and transfer of certain credits. Notice 2022-51PDF requests comments on prevailing wage, apprenticeship, domestic content, and energy communities requirements. The IRS is requesting that those interested in providing feedback to the questions in the notices follow the instructions in the notices to reply by November 4, 2022.

https://www.irs.gov/newsroom/irs-announces-2023-tax-counseling-for-the-elderly-and-volunteer-income-tax-assistance-program-grants

IR-2022-171, October 4, 2022 WASHINGTON — The Internal Revenue Service recently awarded $41 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants to organizations that provide free federal tax return preparation. This year, the IRS awarded grants to 39 TCE and 309 VITA applicantsPDF. The IRS received 413 applications requesting over $56 million in funding. The TCE program, established in 1978, provides free tax counseling and federal return preparation to individuals who are age 60 or older. Volunteers receive training and technical support to provide assistance at community locations across the nation. The VITA program, created in 1969, assists underserved communities, such as low- to moderate-income individuals and limited English proficient taxpayers. VITA grant recipients provide free federal tax return preparation and electronic filing. The grant program also helps expand VITA services to underserved populations. The IRS forms partnerships with a wide variety of organizations across the country to develop VITA and TCE programs. Community partners include nonprofit agencies, faith-based organizations, community centers and large employers. The IRS provides tax law training, certification and oversight to these organizations, supporting their efforts to prepare accurate returns. For information on applying for the TCE or VITA grant programs, along with a list of current grant recipients, visit Tax Counseling for the Elderly or the IRS VITA Grant Program. For details on becoming a TCE or VITA volunteer, visit IRS Tax Volunteers.

https://www.irs.gov/newsroom/irs-appeals-revises-initial-contact-letters-as-part-of-effort-to-enhance-the-taxpayer-experience

IR-2022-170, October 4, 2022 WASHINGTON — The Internal Revenue Service Independent Office of Appeals is taking important steps to improve how taxpayers interact and communicate with the IRS by revising their initial contact letters. "Appeals resolves federal tax disputes, without litigation, in a way that is fair and impartial to taxpayers and the government," said April Adams-Johnson, the Senior Level Advisor to the Chief of Appeals and Appeals' first Taxpayer Experience Officer. "Typically, at the start of the process, the Appeals Officer assigned the case sends a letter with some introductory information and invites the taxpayer or their representative to a conference. We want this letter to be clear and easy to understand for all taxpayers." Appeals has made two key revisions to these initial contact letters in response to feedback from taxpayers and practitioners. First, the revised initial contact letter will clarify that generally, taxpayers and representatives can choose how they meet with Appeals through conferences that can be held by telephone, video or in-person. In addition, Appeals can work with taxpayers and representatives through the mail or secure electronic messaging. Appeals employees can successfully resolve disputes in every type of conference and the type of conference does not impact Appeals' decision. Second, in addition to the Appeals Officer's contact information, the initial contact letter will now provide the name and phone number of the Appeals Officer's manager. While the Appeals Officer remains the primary contact for all their assigned cases, the addition of the manager's contact information will ensure an appeal stays on track in the rare instance additional help is needed. Going forward, taxpayers and representatives will see the new language providing manager contact information and clarifying conference choice in the initial contact letters sent for most cases received in Appeals, including cases relating to an IRS examination determination, penalties, an offer in compromise, a request for a Collection Due Process hearing or participation in IRS e-file. "We recognize that improving the taxpayer experience is a continuing process," said Adams-Johnson. "Appeals welcomes comments on additional ways we can help create a more positive experience for taxpayers and representatives, whether through revisions to our communications or through other process improvements." Individuals may submit their comments to ap.taxpayer.experience@irs.gov by December 2, 2022.

https://www.irs.gov/newsroom/security-summit-offers-tools-tips-to-tax-pros-during-national-tax-security-awareness-week-highlights-importance-of-security-plans

IR-2022-209, November 30, 2022 WASHINGTON — With tax season quickly approaching, the Internal Revenue Service and the Security Summit partners today urged tax professionals to remain focused on security issues and to review resources available to them, including sample security plans and checklists. During National Tax Security Awareness Week, now in its seventh year, the Security Summit partnership of the IRS, state tax agencies and the tax software and tax professional communities work to highlight data security and provide scam prevention tips. Part of the Summit's effort continues to be focusing tax professionals, including smaller practices, on ways to protect themselves and safeguard client information. Day three of this special week focuses on several important aspects for the tax community to keep in mind. "Taxpayer information can be a gold mine for identity thieves. As the Security Summit partners strengthened our internal defenses in recent years, we've seen identity thieves shift their focus onto the tax professional community and their client information," said IRS Acting Commissioner Doug O'Donnell. "Specific taxpayer information can help a scammer prepare a more authentic looking tax return, so tax professionals maintaining strong security is a critical line of defense for themselves, their clients and the nation's tax system." Written Information Security Plan (WISP) The IRS and Security Summit partners remind tax professionals that federal law requires them to have a written information security plan. Earlier this year, members of the Summit's tax professional team developed a special document that allows practitioners to quickly develop their own written security plans. This sample document, a Written Information Security Plan (WISP)PDF, can be scaled for a company's size, scope of activities, complexity and customer data sensitivity. There's not a one-size-fits-all WISP. For example, a sole practitioner can use a more abbreviated and simplified plan than a 10-partner accounting firm, which is reflected in the sample WISP from the Security Summit group. There are many aspects to running a successful business in the tax preparation industry, including reviewing tax law changes, learning software updates and managing and training staff. But an often overlooked but critical component is creating a WISP. "There's no way around it for anyone running a tax business. Having a written security plan is a sound business practice – and it's required by law," said Jared Ballew of Drake Software, co-lead for the Summit tax professional team and chair of the Electronic Tax Administration Advisory Committee (ETAAC). "The sample provides a starting point for developing your plan, addresses risk considerations for inclusion in an effective plan and provides a blueprint of applicable actions in the event of a security incident, data losses and theft." Security issues for a tax professional can be daunting. The Summit team worked to make this document as easy to use as possible, including special sections to help tax professionals get to the information they need. Here are a few WISP considerations for tax pros: Save the WISP in a format others can easily access and read, such as a PDF or Word document. Make the WISP available to all employees for training purposes. Store a copy offsite or in the cloud in the event of an incident or natural disaster. Taxes-Security-Together Checklist Unfortunately, tax practitioners remain high-value targets of cybercriminals seeking to steal sensitive tax information. With this in mind, the Security Summit created the "Taxes-Security-Together" Checklist to help tax professionals identify basic cybersecurity measures to implement. These six easy steps can make a big difference in protecting information, both for tax pros and taxpayers: Use anti-virus software and set it for automatic updates to keep systems secure. This includes all digital products, computers and mobile phones. Use firewalls. Firewalls help shield computers from outside attacks but cannot protect systems in cases where users accidentally download malware, for example, from phishing email scams. Use multi-factor authentication to protect all online accounts, especially tax products, cloud software providers, email providers and social media. Back up sensitive files, especially client data, to secure external sources, such as external hard drive or cloud storage. Encrypt data. Tax professionals should consider drive encryption products for full-drive encryption. This will encrypt all data. Use a Virtual Private Network (VPN) product. As more practitioners work remotely during the pandemic, a VPN is critical for secure connections. For more information on how to protect client information, tax professionals should look to Publication 4557, Safeguarding Taxpayer DataPDF. Phishing scams, malware and ransomware present risks For both tax professionals and taxpayers, phishing emails generally have an urgent message and try to direct users to an official-looking link or attachment. But the link instead may take users to a fake site made to appear like a trusted source where it requests a username and password. The attachment may also contain malware, which secretly downloads software that tracks keystrokes and allows thieves to eventually steal all the tax professional's passwords. Some thieves also pose as potential clients and may interact repeatedly with a tax professional and then send an email with an attachment that claims to include their tax information. The attachment may contain malware that allows the thief to track keystrokes and eventually steal all passwords or take over control of the computer systems. The IRS warns tax pros not to take any of the steps demanded in these types of email, and to delete the email. Recipients of these IRS-related scams can report them to phishing@irs.gov. Sometimes, phishing scams are ransomware schemes in which the thief gains control of the tax professional's computer systems and holds the data hostage until a ransom is paid. The Federal Bureau of Investigation (FBI) has warned against paying a ransom because thieves often leave the data encrypted. Security plan requirement and recommended data theft plan In addition to the required information security plan, tax pros also should consider an emergency response plan should they experience a breach and data theft. This time-saving step should include contact information for the IRS Stakeholder Liaisons, who are the first point of contact for tax professional data theft reporting to the IRS and to the states. IRS Publication 5293, Data Security Resource Guide for Tax ProfessionalsPDF, provides a compilation of data theft information available on IRS.gov, including the reporting processes. In addition to reviewing IRS Publication 4557, Safeguarding Taxpayer DataPDF, tax professionals can also get help with security recommendations by reviewing Small Business Information Security: The FundamentalsPDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Employers can share Publication 4524, Security Awareness for TaxpayersPDF, with their employees and customers and tax professionals can share with clients. For more details on National Tax Security Awareness Week, visit IRS.gov/securitysummit.