Datasets:

etrent17

/

irs-articles

like 1

https://www.irs.gov/newsroom/new-form-1040-sr-alternative-filing-option-available-for-seniors

IR-2020-24, January 30, 2020 WASHINGTON ― The Internal Revenue Service wants seniors to know about the availability of a new tax form, Form 1040-SR, featuring larger print and a standard deduction chart with a goal of making it easier for older Americans to read and use. The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. Taxpayers age 65 or older now have the option to use Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability. Taxpayers who electronically file Form 1040-SR may notice the change when they print their return. More than 90% of taxpayers now use tax software to prepare and file their tax return. Taxpayers born before January 2, 1955, have the option to file Form 1040-SR whether they are working, not working or retired. The form allows income reporting from other sources common to seniors such as investment income, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements. Seniors can use Form 1040-SR to file their 2019 federal income tax return, which is due April 15, 2020. All lines and checkboxes on Form 1040-SR mirror the Form 1040, and both forms use all the same attached schedules and forms. The revised 2019 Instructions cover both Forms 1040 and 1040-SR. Eligible taxpayers can use Form 1040-SR whether they plan to itemize or take the standard deduction. Taxpayers who itemize deductions can file Form 1040-SR with a Schedule A, Itemized Deductions, when filing their return. For those taking the standard deduction, Form 1040-SR includes a chart listing the standard deduction amounts, making it easier to calculate. It also ensures seniors are aware of the increased standard deduction for taxpayers age 65 and older. Married people filing a joint return can use the Form 1040-SR regardless of whether one or both spouses are age 65 or older or retired. Both the 1040 and the 1040-SR use the same "building block" approach introduced last year that can be supplemented with additional Schedules 1, 2 and 3 as needed. Many taxpayers with basic tax situations can file Form 1040 or 1040-SR with no additional schedules.

https://www.irs.gov/newsroom/irs-outlines-new-tax-law-effect-on-tax-exempt-organizations

IR-2020-23, January 28, 2020 WASHINGTON – The Internal Revenue Service wants tax-exempt organizations to know about recent tax law changes that might affect them. The Taxpayer Certainty and Disaster Tax Relief Act, passed on December 20, 2019, includes several provisions that may apply to tax-exempt organizations' current and previous tax years. Repeal of "parking lot tax" on exempt employers This legislation retroactively repealed the increase in unrelated business taxable income by amounts paid or incurred for certain fringe benefits for which a deduction is not allowed, most notably qualified transportation fringes such as employer-provided parking. Previously, Congress had enacted this provision as part of the Tax Cuts and Jobs Act, effective for amounts paid or incurred after December 31, 2017. Tax-exempt organizations that paid unrelated business income tax on expenses for qualified transportation fringe benefits, including employee parking, may claim a refund. To do so, they should file an amended Form 990-T within the time allowed for refunds. More information on this process can be found at IRS.gov. Tax simplification for private foundations The legislation reduced the 2% excise tax on net investment income of private foundations to 1.39%. At the same time, the legislation repealed the 1% special rate that applied if the private foundation met certain distribution requirements. The changes are effective for taxable years beginning after December 20, 2019. Exclusion of certain government grants by exempt utility co-ops Generally, a section 501(c)(12) organization must receive 85% or more of its income from members to maintain exemption. Under changes enacted as part of the Tax Cuts and Jobs Act, government grants are usually considered income and would otherwise be treated as non-member income for telephone and electric cooperatives. Under prior law, government grants were generally not treated as income, but as contributions to capital. The 2019 legislation provided that certain government grants made to tax-exempt 501(c)(12) telephone or electric cooperatives for purposes of disaster relief, or for utility facilities or services, are not considered when applying the 85%-member income test. Since these government grants are excluded from the income test, exempt telephone or electric co-ops may accept these grants without the grant impacting their tax-exemption. This legislation is retroactive to taxable years beginning after 2017.

https://www.irs.gov/newsroom/irs-partners-nationwide-mark-jan-31-as-eitc-awareness-day

Taxpayers may qualify for significant tax benefit IRS YouTube Videos Earned Income Tax Credit – Get it Right – English | Spanish | ASL IR-2020-22, January 28, 2020 WASHINGTON − The Internal Revenue Service and its partners nationwide remind taxpayers about the Earned Income Tax Credit on January 31, "EITC Awareness Day." This is the 14th year of the EITC awareness campaign that alerts millions of workers to this significant tax credit. "The EITC is a vital tax credit that helps millions of hard-working working families around the nation," said IRS Commissioner Chuck Rettig. "It's critical that people review the credit to see if they qualify. Increasing awareness about the EITC is important, and the IRS is proud to support the ongoing efforts by partner groups across the country for sharing this critical information with taxpayers." There are outreach events and activities scheduled to promote EITC awareness around the country. The EITC is the federal government's largest refundable federal income tax credit for low- to moderate-income workers. It can give taxpayers a refund even if they owe no tax. The IRS estimates four of five eligible taxpayers claim and get the EITC. Nationwide in 2019, 25 million taxpayers received over $61 billion in EITC. The average EITC amount received was $2,504. The EITC is as much as $6,557 for a family with children or up to $529 for taxpayers who do not have a qualifying child. Taxpayers earning $55,952 or less can see if they qualify using the EITC Assistant tool at IRS.gov/eitc. The EITC Assistant, available in English and Spanish, helps users determine if they are eligible and if they have a qualifying child or children, and it estimates the amount of the EITC they may get. If an individual doesn't qualify for the EITC, the Assistant explains why. Workers who can claim the EITC Workers at risk for overlooking this important credit can include taxpayers: Without children Living in non-traditional families, such as a grandparent raising a grandchild Whose earnings declined or whose marital or parental status changed With limited English language skills Who are members of the armed forces Living in rural areas Who are Native Americans With disabilities or who provide care for a disabled dependent How to claim the EITC To get the EITC, workers must file a tax return and claim the credit, even if their earnings were below the filing requirement. Free tax preparation help is available online and through volunteer organizations. Those eligible for the EITC have these options: Free File on IRS.gov. Free brand-name tax software is available that leads taxpayers through a question and answer format to help prepare the tax return and claim credits and deductions, if they are eligible. Free File also provides online versions of IRS paper forms, an option called Free File Fillable Forms, best suited for taxpayers comfortable preparing their own returns. Free tax preparation sites. EITC-eligible workers can seek free tax preparation at thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest site, use the search tool on IRS.gov, the IRS2Go smartphone application, or call toll-free 800-906-9887. They should be sure to bring along all required documents and information. Find a trusted tax professional. The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov. EITC recipients should be careful not to be duped by an unscrupulous return preparer. The IRS reminds taxpayers to be sure they have valid Social Security numbers (SSN) for themselves, their spouse, if filing a joint return, and for each qualifying child claimed for the EITC. The SSNs must be issued before the due date of the return, including extensions. There are special rules for those in the military or those out of the country. Refunds By law the IRS cannot issue refunds before mid-February for tax returns that claim the EITC or the Additional Child Tax Credit (ACTC). The IRS must hold the entire refund − even the portion not associated with EITC or ACTC. This helps ensure taxpayers receive the refund they deserve and gives the agency more time to detect and prevent errors and fraud.  "Where's My Refund?" on IRS.gov and the IRS2Go app will be updated with projected deposit dates for most early EITC/ACTC refund filers by February 22. So EITC/ACTC filers will not see an update to their refund status for several days after February 15. The IRS expects most EITC or ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they choose direct deposit and there are no other issues with their tax return. Check 'Where's My Refund?' for a personalized refund date. Avoid errors Taxpayers are responsible for the accuracy of their tax return even if someone else prepares it for them. The EITC rules can be complicated and the IRS urges taxpayers to seek help to make sure they are eligible by visiting a free tax return preparation site, or using Free File software or a paid tax professional. Errors can have lasting impact on future eligibility to claim EITC and leave taxpayers with a penalty. Taxpayers should be sure to reply promptly to any letter from the IRS requesting additional information about EITC and call the number on the IRS letter if they need assistance or have questions. Taxpayers who had an EITC claim reduced or denied for any reason other than a mathematical or clerical error must file Form 8862, Information to Claim Certain Credits after Disallowance, to claim the credit. Beware of scams Be sure to choose a tax preparer wisely. Beware of scams that claim to increase the EITC refund. Scams that create fictitious qualifying children or inflate income levels to get the maximum EITC could leave taxpayers with a penalty. Visit IRS online IRS.gov is a valuable first stop to help taxpayers get it right this filing season. Information on other tax credits, such as the Child Tax Credit, are also available. Related items EITC Central at https://www.eitc.irs.gov/, helpful resources for IRS partners and others. Publication 596, Earned Income Credit (EIC) Tax Professionals, another place for valuable EITC resources and assistance.

https://www.irs.gov/newsroom/irs-jan-31-filing-deadline-for-employers-other-businesses-to-file-wage-statements-independent-contractor-forms

IRS YouTube Videos Missing W-2 – English | Spanish | ASL IR-2020-21, January 28, 2020 WASHINGTON — With just a few days remaining until the deadline, the Internal Revenue Service reminds employers and other businesses that January 31 is the filing deadline for submitting wage statements and forms for independent contractors with the government. Employers must file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. The January 31 deadline also applies to certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors. This deadline helps the IRS fight tax fraud by making it easier to verify income reported on individual tax returns. The IRS no longer grants an automatic extension of time to file Form W-2. Requests for more time to file must be submitted before the due date. Only certain reasons, such as a death or natural disaster are allowed. Details can be found on the instructions for Form 8809, Application for Extension of Time To File Information Returns. Failure to file these forms correctly and timely may result in penalties. The IRS recommends employers and other businesses to e-file as the quickest, most accurate and convenient way to file these forms. Taxpayers: Steps to take if no W-2 Most taxpayers get their Form W-2, Wage and Tax Statement, by the end of January. Taxpayers need their W-2s to file accurate tax returns, as the form shows an employee's income and taxes withheld for the year. Taxpayers who haven't received their W-2 by the end of February should, as a first step, contact their employer. Taxpayers should ask their current or former employer for a copy of their W-2. Be sure the employer has the correct address. Additional information for taxpayers is available at IRS.gov.

https://www.irs.gov/newsroom/irs-kicks-off-2020-tax-filing-season-with-returns-due-april-15-help-available-on-irsgov-for-fastest-service

IR-2020-20, January 27, 2020 WASHINGTON ― The Internal Revenue Service successfully opened the 2020 tax filing season today as the agency begins accepting and processing federal tax returns for tax year 2019. The deadline to file a 2019 tax return and pay any tax owed is Wednesday, April 15, 2020. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the April 15 tax deadline. "The IRS workforce has worked for nearly a year to prepare for the opening of tax season," said IRS Commissioner Chuck Rettig. "Our dedicated employees are committed to help taxpayers, process tax returns and serve the nation − not just through the April 15 tax deadline but throughout the year." While the IRS' Free File program as well as many tax software companies and tax professionals began accepting tax returns earlier this month, processing of those tax returns begins as IRS systems open today. The IRS expects about 90 percent of individuals to file their returns electronically. Filing electronically and choosing direct deposit remains the fastest and safest way to file an accurate income tax return and receive a refund. "The IRS reminds taxpayers there are many options to get help," Rettig said. "Our website has around the clock information available and is the fastest way to get assistance. We've made improvements to the Free File program and filing electronically with direct deposit remains the best way to speed refunds and minimize errors. As always, experts in the nation's tax professional community stand ready to help people navigate their tax issues. And we also remind people our IRS-trained community volunteers are ready to help file tax returns in locations across the country." Revised 2019 Form 1040 includes virtual currency questions Using feedback from taxpayers and the tax professional community, IRS revised the Form 1040, U.S. Individual Income Tax Return, for tax year 2019. Taxpayers will use fewer schedules to supplement the base Form 1040 as six schedules were consolidated into three numbered schedules. In 2019, taxpayers who engaged in a transaction involving virtual currency will need to file Schedule 1, Additional Income and Adjustments To Income. The Internal Revenue Code and regulations require taxpayers to maintain records that support the information provided on tax returns. Taxpayers should maintain, for example, records documenting receipts, sales, exchanges or other dispositions of virtual currency and the fair market value of the virtual currency. "Virtual currency is an important addition to the 1040 this year," Rettig said. "This emerging area is a priority for the IRS, and we want to help taxpayers understand their obligations involving virtual currency. We will also take steps to ensure fair enforcement of the tax laws for those who don't follow the rules involving virtual currency." New Form 1040-SR alternative for seniors available While all taxpayers file Form 1040, taxpayers born before January 2, 1955, have an additional option to use new Form 1040-SR, U.S. Tax Return for Seniors. Taxpayers age 65 or older will have the option to use this new form – either filing electronically or mailing a paper return − when they file their 2019 federal income tax return in 2020. Form 1040-SR generally mirrors Form 1040. Form 1040-SR allows income reporting from certain other sources such as investment income, Social Security, and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements to eligible taxpayers over age 65. Taxpayers 65 and older have the option to file Form 1040-SR whether they are working, not working or retired. The Form 1040-SR includes a standard deduction chart listing the standard deduction amounts, including the extra standard deduction amount that taxpayers 65 and older qualify for. Eligible taxpayers 65 and older who plan to itemize deductions − instead of taking the standard deduction − will be able to file Form 1040-SR along with Schedule A, Itemized Deductions, when they file their 2019 tax return. The Form 1040 Instructions cover both Form 1040 and Form 1040-SR. Both forms use the same "building block" approach introduced last year that can be supplemented with additional schedules as needed. Taxpayers with straightforward tax situations will only need to file the Form 1040 or Form 1040-SR with no additional schedules. Since nearly 90% of taxpayers now use tax software, the IRS expects the change to Form 1040 and the introduction of the Form 1040-SR and its schedules to be seamless for those who file electronically including those who are eligible to use IRS Free File, the Volunteer Income Tax Assistance (VITA) program or the Tax Counseling for the Elderly (TCE) program. Free help preparing and filing taxes electronically The IRS strongly encourages people to file their tax returns electronically and choose direct deposit for faster refunds. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. The IRS supports free online and in-person tax preparation options for qualifying taxpayers through IRS Free File online or free tax help from trained volunteers at community sites around the country. Taxpayers with incomes that were $69,000 or less last year – and that's most taxpayers – can use IRS Free File now through October 15. Free File is a public-private partnership between the Internal Revenue Service and Free File Inc. (FFI), a consortium of tax software providers who make their Free File products available at IRS.gov/freefile. Taxpayers can use a "look up" tool to choose from one of 10 featured online products. Each of the 10 providers sets its own eligibility standards, generally based on income, age and state residency giving taxpayers who earned $69,000 or less at least one product to use for free. There are also products in Spanish. For taxpayers who earned more, there is Free File Fillable Forms, the electronic version of IRS paper forms. Free File is just one way the IRS provides free tax preparation options to taxpayers through a partnership model. Taxpayers wanting more personal help can visit one of thousands of community volunteer sites through the Volunteer Income Tax Assistance program or Tax Counseling for the Elderly offered by AARP. The IRS partners with community organizations and AARP to train volunteers to prepare free returns for taxpayers. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $56,000 or less, persons with disabilities and limited English-speaking taxpayers who need help preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. In addition to VITA, the Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors. The IRS-certified volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS. Taxpayers: Rely on a reputable tax professional; IRS.gov can help The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov. No matter who prepares a federal tax return, by signing the return, the taxpayer becomes legally responsible for the accuracy of all information included. Gather documents and organize tax records The IRS urges all taxpayers to make sure they have all their year-end statements in hand before filing. This includes Forms W-2 from employers and Forms 1099 from banks and other payers. Taxpayers should confirm that each employer, bank or other payer has a current mailing address or email address. Typically, year-end forms start arriving by mail – or are available online – in January. Review them carefully and, if any of the information shown is inaccurate, contact the payer right away for a correction. In 2019, taxpayers who engaged in a transaction involving virtual currency will need to file Schedule 1, Additional Income and Adjustments To Income. The Internal Revenue Code and regulations require taxpayers to maintain records that support the information provided on tax returns. Taxpayers should maintain, for example, records documenting receipts, sales, exchanges, or other dispositions of virtual currency and the fair market value of the virtual currency. To avoid refund delays, be sure to gather all year-end income documents before filing a 2019 tax return. Doing so will help avoid refund delays and the need to file an amended return. Filing too early, before receiving a key document, often means a taxpayer must file an amended return to report additional income or claim a refund. It can take up to 16 weeks to process an amended return and issue any related refund. Most refunds sent in less than 21 days; however, some require further review and take longer Just as each tax return is unique and individual, so is each taxpayer's refund. There are a few things taxpayers should keep in mind if they are waiting on their refund but hear or see on social media that other taxpayers have already received theirs. Different factors can affect the timing of a taxpayer's refund after the IRS receives the return. Also, remember to take into consideration the time it takes for the financial institution to post the refund to the taxpayer's account or to receive a check in the mail. Even though the IRS issues most refunds in less than 21 days, some tax returns require additional review and take longer to process than others. This may be necessary when a return has errors, is incomplete or is affected by identity theft or fraud. The IRS will contact taxpayers by mail when more information is needed to process a return. Choosing electronic filing and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS expects about 90 percent of individual tax returns will be prepared electronically using tax software. The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February. This applies to the entire refund − even the portion not associated with the EITC or ACTC. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if the taxpayer chose direct deposit and there are no other issues with the tax return. After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. Refund information will generally be available within 24 hours after the IRS acknowledges receipt of an electronically filed return on the Where's My Refund? ‎tool on IRS.gov and the IRS2Go phone app. These tools will be updated with projected deposit dates for most early EITC and ACTC refund filers by February 22, so those filers will not see an update to their refund status date on Where's My Refund? ‎or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates. Where's My Refund? is the best way to check the status of a refund. Reconcile advance payments of Marketplace premium tax credits; health care reporting changes The premium tax credit helps pay premiums for health insurance purchased from the Health Insurance Marketplace. Taxpayers who receive advance credit payments must compare and reconcile their advance credit payments to the actual premium tax credit they are allowed for the year. They do this reconciliation when they file their tax return on Form 8962, Premium Tax Credit. Failing to file Form 8962 and reconcile 2019 advance credit payments may affect return processing, generate an IRS letter and delay the taxpayer's refund. It may also affect a taxpayer's eligibility for advance payments of the premium tax credit or cost-sharing reductions to help pay Marketplace health insurance coverage in the future. On a separate note, the IRS removed the "full-year health care coverage or exempt" box on Form 1040 to report health care coverage PDF. Taxpayers will not make a shared responsibility payment or file Form 8965, Health Coverage Exemptions, to claim a coverage exemption for tax year 2019. Renew expired ITINs to avoid refund delays Many Individual Taxpayer Identification Numbers (ITINs) expired on December 31, 2019. This includes any ITIN not used on a tax return at least once in the past three years. Any ITIN with middle digits 83, 84, 85, 86 or 87 expired December 31, 2019. ITINs with middle digits 70 through 82 that expired in 2016, 2017 or 2018 can also be renewed. Affected taxpayers should act soon to avoid refund delays and possible loss of eligibility for some key tax benefits until the ITIN is renewed. An ITIN is used by anyone who has tax filing or payment obligations under U.S. tax law but is not eligible for a Social Security number. It can take up to 11 weeks to process a complete and accurate ITIN renewal application. For that reason, the IRS urges anyone with an expired ITIN needing to file a tax return this tax season to submit their ITIN renewal application soon. Sign and validate electronically filed tax returns The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are using the same tax software they used last year will not need to enter prior-year information to electronically sign their 2019 tax return. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2018 tax return to file electronically. Review these steps to validate and sign an electronically filed return. Identity Theft Central; IP PIN expansion The Internal Revenue Service launched Identity Theft Central to improve online access to information on identity theft or data security protection for taxpayers, tax professionals and businesses. Improving awareness and outreach have been hallmarks of the initiatives to combat identity theft coordinated by the IRS, state tax agencies and the nation's tax industry who work in partnership under the Security Summit banner. Tax-related identity theft happens when someone steals personal information to commit tax fraud. More taxpayers in selected locations will be eligible for a new online-only Identity Protection PIN Opt-In Program. The IP PIN is a six-digit number that adds a layer of protection for taxpayers' Social Security numbers and helps protect against tax-related identity theft. Taxpayers will be eligible for this voluntary program if they filed a federal tax return last year as a resident from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Texas or Washington. The IRS has created a new publication – Publication 5367, Identity Protection PIN Opt-In Program for TaxpayersPDF – to help taxpayers understand the required steps. Or, taxpayers can read more at the Get an IP PIN page. Taxpayers opting into this program must use the Get an IP PIN tool; an IP PIN cannot be issued via a phone call to the IRS. IRS offers help and online tools for taxpayers The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax return on IRS.gov, the official IRS website. Taxpayers can find answers to their tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services GuidePDF links to these and other IRS services. Use the Interactive Tax Assistant to find answers to tax questions. This tool provides answers to tax law questions and reflects 2019 tax changes. The ITA is a tax law resource that takes the taxpayer through a series of questions and provides an answer based on their input. It can determine if a type of income is taxable, if the taxpayer is eligible to claim certain credits or deduct certain expenses on their tax return. It also provides answers for general questions, such as determining filing status or if they are required to file a tax return. Refund information will generally be available within 24 hours after the IRS acknowledges receipt of an electronically filed return on the Where's My Refund? ‎tool on IRS.gov and the IRS2Go phone app. Taxpayers can go to View Your Account Information to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review the past 24 months of payment history; and view key tax return information for the current year as filed. Visit IRS.gov/secureaccess to review the required identity authentication process.

https://www.irs.gov/newsroom/irs-provides-relief-to-financial-institutions-affected-by-tax-law-change-raising-the-age-for-required-minimum-distributions

IR-2020-19, January 27, 2020 WASHINGTON — The Internal Revenue Service has provided relief to financial institutions that were expected to provide required minimum distribution (RMD) statements to IRA owners by January 31, 2020. Notice 2020-6PDF clarifies that if an RMD statement is provided for 2020 to an IRA owner who will turn age 70½ in 2020, the IRS will not consider the statement to be incorrect, but only if the financial institution notifies the IRA owner no later than April 15, 2020, that no RMD is due for 2020. The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) changed the age for which an RMD is first required from age 70½ to 72. Under prior law, financial institutions would have needed to notify IRA owners who attained age 70½ in 2020 about their 2020 RMDs by January 31, 2020. The IRS encourages all financial institutions, in communicating these RMD changes, to remind IRA owners who reached age 70½ in 2019, and have not yet taken their 2019 RMDs, that they are still required to take those distributions by April 1, 2020.

https://www.irs.gov/newsroom/global-tax-chiefs-undertake-unprecedented-multi-country-day-of-action-to-tackle-international-tax-evasion

IR-2020-18, January 23, 2020 WASHINGTON — A globally coordinated day of action to put a stop to the suspected facilitation of offshore tax evasion has been undertaken this week across the United Kingdom (UK), United States (US), Canada, Australia and the Netherlands. The action occurred as part of a series of investigations in multiple countries into an international financial institution located in Central America, whose products and services are believed to be facilitating money laundering and tax evasion for customers across the globe. It is believed that through this institution a number of clients may be using a sophisticated system to conceal and transfer wealth anonymously to evade their tax obligations and launder the proceeds of crime. The coordinated day of action involved evidence, intelligence and information collection activities such as search warrants, interviews and subpoenas. Significant information was obtained as a result and investigations are ongoing. It is expected that further criminal, civil and regulatory action will arise from these actions in each country. This is the first major operational activity for the Joint Chiefs of Global Tax Enforcement, known as the J5, formed in mid-2018 to lead the fight against international tax crime and money laundering. This group brings together leaders of tax enforcement authorities from Australia, Canada, the UK, US and the Netherlands. "This is the first coordinated set of enforcement actions undertaken on a global scale by the J5 – the first of many," said Don Fort, US Chief, Internal Revenue Service Criminal Investigation. "Working with the J5 countries who all have the same goal, we are able to broaden our reach, speed up our investigations and have an exponentially larger impact on global tax administration. Tax cheats in the US and abroad should be on notice that their days of non-compliance are over," Fort said. Australian Tax Office (ATO) Deputy Commissioner and Australia's J5 Chief, Will Day, said that this operation shows that the collaboration between the J5 countries is working. "Today's action shows the power of our combined efforts in tackling global tax crime, fraud and evasion." "This multi-agency, multi-country activity should degrade the confidence of anyone who was considering an offshore location as a way to evade tax or launder the proceeds of crime." The ATO has commenced investigations into Australian based clients of this institution who are suspected to have undeclared income. The Australian Criminal Intelligence Commission (ACIC) is playing a supportive intelligence role, and investigations into more clients may follow. "Never before have criminals been at such risk of being detected as they are now. Our increased collaboration, data analytics and intelligence sharing mean there is no place worldwide you can hide your money to avoid contributing your obligations," Day said. Hans van der Vlist, Chief and General Director Fiscal Information and Investigation Service (FIOD), the Netherlands, said, "This is the first outcome of an operational collaboration between five countries on tackling professional enablers that facilitate offshore tax crime. The international investigation started on information obtained by the Netherlands. By sharing this information and working together an international impact is created. Together as the J5 we will try to close the net on tax criminals." Canada Revenue Agency (CRA) Chief Eric Ferron said, "I am very pleased with the role the CRA is playing in what will be the first of many major operational activities for the J5. This coordinated operation shows that the collaboration between J5 countries is working. Tax evaders beware; today's action shows that through our combined efforts we are making it increasingly difficult for taxpayers to hide their money and avoid paying their fair share." Simon York, Chief and Director of Her Majesty's Revenue and Customs (HMRC)'s Fraud Investigation Service said, "Tax evasion is a global problem that needs a global response and that is what the J5 provides. This kind of international action shows that we can, and we will take on the most collaboration underlines our commitment to tackling these harmful, sophisticated and complex crimes and that we are committed to levelling the playing field for honest businesses and taxpayers. "International tax evasion robs our public services of vital funds, undermines economies and, left unchecked, can enrich the dishonest at the expense of the honest majority. Working together, HMRC and our J5 partners are closing the net on tax criminals, wherever they are, to ensure nobody is beyond our reach. The message to them is clear – the J5 are closing in." For more information about J5, please visit www.irs.gov/J5.

https://www.irs.gov/newsroom/irs-dont-be-victim-to-ghost-tax-return-preparers

IR-2020-17, January 22, 2020 WASHINGTON — With the start of the 2020 tax filing season near, the Internal Revenue Service is reminding taxpayers to avoid unethical "ghost" tax return preparers. According to the IRS, a ghost preparer does not sign a tax return they prepare. Unscrupulous ghost preparers will print the return and tell the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost will prepare 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, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund. Ghost tax return preparers may also: Require payment in cash only and 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. The IRS urges taxpayers to choose a tax return preparer 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. Free basic income tax return preparation with e-file is available to qualified individuals from IRS-certified volunteers at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites across the country. For more information and to find the closest visit Free Tax Return Preparation for Qualifying Taxpayers on IRS.gov No matter who prepares the return, the IRS urges taxpayers to review it carefully and ask questions about anything not clear before signing. Taxpayers should verify both their routing and bank account number on the completed tax return for any direct deposit refund. And taxpayers should watch out for ghost preparers inserting their bank account information onto the returns. Taxpayers can report preparer misconduct to the IRS using IRS Form 14157, Complaint: Tax Return PreparerPDF. If a taxpayer suspects a tax preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct AffidavitPDF.

https://www.irs.gov/newsroom/irs-willing-to-consider-requests-for-relief-from-double-taxation-related-to-repatriation

IR-2020-16, January 17, 2020 WASHINGTON — The IRS announced today that the agency has become aware of limited circumstances in which it may be appropriate to provide relief from double taxation resulting from application of the repatriation tax under section 965, as amended by the Tax Cuts and Jobs Act (TCJA). The IRS has determined that in unique circumstances, such as where a corporation paid an unusual dividend for business reasons, not because of the enactment of TCJA, it may be appropriate to provide relief from double taxation. When the same earnings and profits of foreign corporations are taxed both as dividends and under section 965, double taxation could result. The IRS is open to considering relief from such double taxation where there is no significant reduction in the resulting tax by application of foreign tax credits, such that the taxpayer would be required to pay more tax than it would have if the dividend had not been paid. Taxpayers who have fact patterns that may fit these limited circumstances may raise them with the IRS by contacting the Office of Associate Chief Counsel (International) at 202-317-3800.

https://www.irs.gov/newsroom/irs-free-file-can-save-families-money-find-tax-benefits-all-for-free

IR-2020-15, January 17, 2020 WASHINGTON — IRS Free File can save families, especially those with children, some money in 2020 plus find tax benefits such as the Earned Income Tax Credit. Free File is now available at IRS.gov/freefile. Since its 2003 debut, Free File has served nearly 57 million taxpayers, saving them $1.7 billion using a very conservative $30 preparation fee. Young families with children are key beneficiaries of Free File, the public-private partnership between the IRS and 10 online tax preparation software providers. "Free File can save young families money. It offers free software, free electronic filing and free direct deposit which is the fastest way to get a refund," said Ken Corbin, commissioner of IRS' Wage and Investment division. Whether single or married, the taxpayers' 2019 adjusted gross income must be $69,000 or less to be eligible for free online tax preparation through Free File. Free File can help families find the tax credits and deduction they are due such as EITC. By answering a few questions, taxpayers can find out if they're eligible for EITC and other family-related tax benefits. The IRS will begin processing tax returns on January 27. Most refunds are issued within 21 days. With Free File, you can even use any digital device, personal computer, tablet or smart phone. Free File products are mobile enabled so you can do your taxes on your smart phone or tablet and e-File with your hand-held device. Here's how Free File works: Go to IRS.gov/freefile to see all Free File options.   Browse each of the 10 offers or use a "look up" tool to help you find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if your adjusted gross income was $69,000 or less, you will find at least one free product to use. Two products are in Spanish.   Select a provider and follow the links to their web page to begin your tax return.   Complete and e-file your tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options. You do not have to be EITC eligible in order to qualify for Free File. Any individual or married couple that meets the income limitation can qualify. First-time filers or college students are key users. Military personnel who meet the income requirement can use any of nine partner products. And seniors who want to file the new Form 1040-SR because they are over 65 and taking the standard deduction also can use Free File. Remember, if you meet the income requirement you will find at least one free online product. To avoid fees for state tax returns, look for a partner that offers free state tax return preparation or check out your state's tax agency website to see if they are members of the State Free File program. Know the protections under the IRS Free File program. They include: Get a free federal tax return - As long as you qualify for the Free File federal return offer, you must not be charged for preparation and e-filing of a federal tax return.   Be protected from unnecessary fees - Other than state tax preparation fees and a possible fee if you choose to continue with tax preparation when you don't qualify for the federal return offer, you must not be offered or solicited marketing, promotional rebates, or any other form of selling activity on the Free File company's website. Any state preparation or non-qualifying fees must be disclosed on the company's Free File landing page.   Be guided in your choices - If you find you don't qualify for a specific company's Free File offer after visiting their Free File website, you may return to the IRS.gov Free File website to seek another Free File online offer. Each Free File company will provide you information when you don't qualify, with the option to select a link to bring you back to IRS.gov Free File site to select another company.   Get help if you need it - If you need help when you are on the company's Free File website and doing your taxes, you may refer to the company's free customer service options.   Be reminded of Free File - If you used Free File last year, you should receive an email from the same company product that you used, welcoming you back to Free File. The email should include a link to the company's Free File online program and explain how to file with the program.   Be protected from bank product fees - As part of Free File, you must not be offered any bank products such as Refund Anticipation Loans or Refund Anticipation Checks.   Get help finding a free option for you - IRS offers a Free File online Look-up tool to help you find an offer that best meets your needs.   Get important information on possible charges for state returns - Many Free File online products offer free state tax preparation. Some charge a state fee. Be sure to read each company's information carefully. Free File online products will be available from January through October for extension filers. Taxpayers who need to file extensions because they cannot meet the April 15 deadline, also can use Free File regardless of their income. Free File is just one way the IRS provides free tax preparation options to taxpayers. Taxpayers wanting more personal help can visit one of thousands of community volunteer sites through the Volunteer Income Tax Assistance program or Tax Counseling for the Elderly offered by AARP. Trained volunteers will prepare returns for free for taxpayers whose income was $56,000 or less. Free File is available through October.

https://www.irs.gov/newsroom/get-up-to-date-information-this-tax-filing-season-with-redesigned-irs-e-news-subscriptions

IR-2020-14, January 16, 2020 WASHINGTON — As the 2020 tax season approaches, the Internal Revenue Service today encouraged taxpayers, businesses, tax professionals and others to take advantage of a variety of improved e-mail subscription services. The e-News Subscription Service has been redesigned and updated in recent months to make it easier to subscribe to specific areas that people and organizations are interested in. Among others, the IRS offers subscription services tailored to tax exempt and government entities, small and large businesses and individuals. The IRS currently has 20 registration-based e-News options, including: IRS Tax Tips – These brief, concise tips in plain language that cover a wide-range of topics of general interest to taxpayers. They include the latest on tax scams and schemes, tax reform, tax deductions, filing extensions and amending a return. IRS Tax Tips are distributed daily during tax season and periodically throughout the year. IRS Newswire − Subscribers to IRS Newswire receive news releases the day they are issued. These cover a wide range of tax administration issues ranging from breaking news to details related to legal guidance. IRS News in Spanish (Noticias del IRS en Español) − Readers get IRS news releases, tax tips and updates in Spanish as they are released. Subscribe at Noticias del IRS en Español. e-News for Tax Professionals − Includes a weekly roundup of news releases and legal guidance specifically designed for the tax professional community. Subscribing to e-News for Tax Professionals gets tax pros a weekly summary, typically delivered on Friday afternoons. IRS Outreach Connection − This newest IRS subscription offering delivers up-to-date materials for tax professionals and partner groups inside and outside the tax community. The material for Outreach Connection is specifically designed so subscribers can share the material with their clients or members through email, social media, internal newsletters, e-mails or external websites. Subscribe by visiting IRS.gov/outreachconnect. For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions. The resources will help taxpayers and organizations keep up with the latest information during and after filing season.

https://www.irs.gov/newsroom/irs-most-taxpayers-eligible-for-free-federal-and-free-state-tax-return-preparation

IR-2020-13, January 16, 2020 WASHINGTON – Most taxpayers can do both their federal and state tax returns for free online through Free File offered either by the IRS or by states that have a similar public-private partnership. For 2020, taxpayers whose prior-year adjusted gross income was $69,000 or less, and that's most people, can use IRS Free File. Generally, taxpayers must complete their federal tax return before they can begin their state taxes. More than 20 states also have a state Free File program patterned after federal partnership which means many taxpayers are eligible for free federal and free state online tax preparation. Those states are: Arkansas, Arizona, Georgia, Idaho, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, Vermont, Virginia and West Virginia, plus the District of Columbia. In addition, IRS Free File partners – featuring 10 brand-name online products - offer most or some state tax returns for free as well. Some may also charge so it is important for taxpayers to explore their free options. Here's how Free File works: Go to IRS.gov/freefile to see all Free File options.   Browse each of the 10 offers or use a "look up" tool to help you find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if your adjusted gross income was $69,000 or less, you will find at least one free product to use. Two products are in Spanish.   Select a provider and follow the links to their web page to begin your tax return.   Complete and e-file your tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options.   Free File partners will charge a fee for state tax return preparation unless their offer outlines upfront that you can file both federal and state returns for free. If you want to use one of the state Free File program products, go to your state tax agency's Free File page. For residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming, IRS Free File may be the only tax product you need. Those states do not have an income tax.

https://www.irs.gov/newsroom/irs-to-restore-sequestered-funds-amt-only-this-fiscal-year-to-businesses-affected-by-omb-determination

IR-2020-12, January 16, 2020 WASHINGTON – The Internal Revenue Service today announced it will return sequestered funds to businesses that were affected by a recent Office of Management and Budget (OMB) determination regarding the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. The IRS will restore any amounts sequestered since 2013 under section 168(k)(4). OMB determined that the refundable corporate minimum tax credit claimed under sections 53 and 168(k)(4) of title 26, U.S. Code as in effect for taxable years beginning before Jan. 1, 2018, is not subject to sequestration. The IRS has a complete list of all taxpayers affected so taxpayers do not need to take any action. Funds and applicable interest will be sent out during fiscal year 2020. Less than 1,000 businesses were affected by the OMB determination. Funds due a company will be used to offset current tax liabilities first. Formerly, refund payments issued to, and credit elect and refund offset transactions for, corporations claiming refundable minimum tax credits for prior year alternative minimum tax liability were subject to sequestration. The OMB determination corrects and reverses the previous determination. Additional information will be shared regarding the timing and process for these reimbursements when it is available.

https://www.irs.gov/newsroom/irs-and-treasury-issue-guidance-for-students-with-discharged-student-loans-and-their-creditors

IR-2020-11, January 15, 2020 WASHINGTON — The Internal Revenue Service and Department of the Treasury issued Revenue Procedure 2020-11 PDF that establishes a safe harbor extending relief to additional taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school. Relief is also extended to any creditor that would otherwise be required to file information returns and furnish payee statements for the discharge of any indebtedness within the scope of this revenue procedure. The Treasury Department and the IRS have determined that it is appropriate to extend the relief provided in Rev. Proc. 2015-57, Rev. Proc. 2017-24 and Rev. Proc. 2018-39 to taxpayers who took out federal and private student loans to finance attendance at nonprofit or other for-profit schools not owned by Corinthian College, Inc. or American Career Institutes, Inc. The Revenue Procedure provides relief when the federal loans are discharged by the Department of Education under the Closed School or Defense to Repayment discharge process, or where the private loans are discharged based on settlements of certain types of legal causes of action against nonprofit or other for-profit schools and certain private lenders. Taxpayers within the scope of this revenue procedure will not recognize gross income as a result of the discharge, and the taxpayer should not report the amount of the discharged loan in gross income on his or her federal income tax return. Additionally, the IRS will not assert that a creditor must file information returns and furnish payee statements for the discharge of any indebtedness within the scope of this revenue procedure. To avoid confusion, the IRS strongly recommends that these creditors not furnish students nor the IRS with a Form 1099-C.

https://www.irs.gov/newsroom/irs-free-file-helps-seniors-and-retirees-do-their-taxes-for-free

IR-2020-10, January 15, 2020 WASHINGTON — Seniors and retirees whose income is under $69,000 a year should explore IRS Free File for free online tax preparation. Seniors are one of the key constituents for Free File which has served 57 million taxpayers and saved them $1.7 billion since the online filing service debuted in 2003. Free File – which features 10 brand-name tax software providers – also offers the new Form 1040-SR option for seniors over the age of 65. "When you're on a fixed income, every penny saved matters. With Free File, you can save lots of pennies. Free File also does all the hard work for you. It finds the right forms, benefits and does all the math," said Ken Corbin, commissioner of IRS' Wage and Investment division. Free File supports all the major forms that can be filed electronically so even if your return is a bit more complex, you can still use a free service. Here's how Free File works: Go to IRS.gov/freefile to see all Free File options.   Browse each of the 10 offers or use a "look up" tool to help you find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if your adjusted gross income was $69,000 or less, you will find at least one free product to use. Two products are in Spanish.   Select a provider and follow the links to their web page to begin your tax return.   Complete and e-file your tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options. Free File providers also offer state tax return preparation, some for free and some for a fee. Again, use the "look up" tool to find the right product. Here's another plus for Free File: you can use your smart phone or tablet to do your taxes. Just go to IRS.gov/freefile on your device. All Free File products are enabled for mobile devices. Seniors who are not comfortable preparing their own tax return still have other free options. The IRS helps support the Volunteer Income Tax Assistance program and AARP supports the Tax Counseling for the Elderly program. Volunteers will prepare your tax return for you for free. Use the VITA locator tool to find a VITA/TCE location near you. Free File is available now through October to accommodate extension filers.

https://www.irs.gov/newsroom/improved-tax-withholding-estimator-helps-workers-target-the-refund-they-want-shows-how-to-fill-out-new-2020-w-4

IRS YouTube Videos: IRS Tax Withholding Estimator – English | Spanish (obsolete) IR-2020-09, January 14, 2020 WASHINGTON — The Internal Revenue Service has launched a new and improved Tax Withholding Estimator, designed to help workers target the refund they want by having the right amount of federal income tax taken out of their pay. The Tax Withholding Estimator, now available on IRS.gov, incorporates the changes from the redesigned Form W-4, Employee's Withholding Certificate, that employees can fill out and give to their employers this year. The IRS urges everyone to see if they need to adjust their withholding by using the Tax Withholding Estimator to perform a Paycheck Checkup. If an adjustment is needed, the Tax Withholding Estimator gives specific recommendations on how to fill out their employer's online Form W-4 or provides the PDF form with key parts filled out. To help workers more effectively adjust their withholding, the improved Tax Withholding Estimator features a customized refund slider that allows users to choose the refund amount they prefer from a range of different refund amounts. The exact refund range shown is customized based on the tax information entered by that user. Based on the refund amount selected, the Tax Withholding Estimator will give the worker specific recommendations on how to fill out their W-4. This new feature allows users who seek either larger refunds at the end of the year or more money on their paychecks throughout the year to have just the right amount withheld to meet their preference. The new Tax Withholding Estimator also features several other enhancements, including one allowing anyone who expects to receive a bonus to indicate whether tax will be withheld. In addition, improvements added last summer continue to be available, including mobile-friendly design, handling of pension income, Social Security benefits and self-employment tax. Starting in 2020, income tax withholding is no longer based on an employee's marital status and withholding allowances, tied to the value of the personal exemption. Instead, income tax withholding is generally based on the worker's expected filing status and standard deduction for the year. In addition, workers can choose to have itemized deductions, the Child Tax Credit and other tax benefits reflected in their withholding for the year. It is important for people with more than one job at a time (including families in which both spouses work) to adjust their withholding to avoid having too little withheld. Using the Tax Withholding Estimator is the most accurate way to do this. As in the past, employees can also choose to have an employer withhold an additional flat-dollar amount each pay period to cover, for example, income they receive from the gig economy, self-employment, or other sources that is not subject to withholding.  For more information about the updated Tax Withholding Estimator and the redesigned 2020 Form W-4, visit Tax Withholding Estimator FAQs and the FAQs on the 2020 Form W-4.

https://www.irs.gov/newsroom/irs-free-file-ideal-for-young-and-first-time-filers

IR-2020-08, January 14, 2020 WASHINGTON — Filing taxes for the first time or working part-time? IRS Free File may be the perfect match for people looking to save money on federal tax preparation. Most Free File users are under the age of 30 with modest incomes. The Free File adjusted gross income limit for 2020 is $69,000. For those who want to do their own taxes, Free File means free tax preparation, free electronic filing and free direct deposit, which is the fastest way to get a refund. "Doing your taxes may seem a bit overwhelming, but it's not. Free File does the hard work for you. The software finds the right forms, finds any tax benefits and does all the math," said Ken Corbin, commissioner of the IRS' Wage and Investment division. "Here's a key tip: have all your income records like your Form W-2 ready before you start." Another plus: Free File is mobile enabled. Taxpayers can use their smart phones or tablets to do their taxes. Free File features 10 brand-name tax software providers who are in a partnership with the IRS to offer their online products for free. Each provider sets additional eligibility requirements, generally based on age, state residency and income. Here's how Free File works: Go to IRS.gov/freefile to see all Free File options.   Browse each of the 10 offers or use a "look up" tool to help you find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if your adjusted gross income was $69,000 or less, you will find at least one free product to use. Two products are in Spanish.   Select a provider and follow the links to their webpage to begin your tax return.   Complete and e-file your tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options. If this is the first time that you've filed a federal tax return and you are single, here's what you need before you start: Social Security number.   Wage and income information i.e. Form W-2 or Form 1099. Remember: parts of college scholarships or grants may be taxable income.   Check with your parents to make sure they are not claiming you as a dependent. You may still file a separate tax return but if you are being claimed as a dependent by others, you cannot claim yourself as a dependent.   Documentation for all tax credits and deductions. Remember: the standard deduction has been greatly increased so that itemizing your deductions may not be necessary.   For all electronic tax returns, you must use your prior-year adjusted gross income as part of your electronic signature. If you are a first-time filer over the age of 16, simply enter 0 (zero) as your prior-year income for signature purposes. If you filed before, your prior-year tax return will show your adjusted gross income.   Bank account and routing number. If you are receiving a refund, and most people do, the fastest way to get a refund is through direct deposit to a financial account. Free File is available now through October to accommodate extension filers.

https://www.irs.gov/newsroom/irs-free-file-offers-free-tax-prep-options-for-military-personnel

IR-2020-07, January 13, 2020 WASHINGTON – The Internal Revenue Service today reminded active duty military personnel that IRS Free File offers them multiple options for free federal tax preparation. Free File is for individuals or families whose adjusted gross income was $69,000 or less last year. Free File is a private-public partnership between the IRS and the Free File Inc. "The IRS takes special steps to help military members and their families with their taxes, and the Free File program is part of that effort," said IRS Commissioner Chuck Rettig. "Almost 10% of the IRS workforce are veterans. We greatly appreciate the service to the nation of every veteran and their supportive families, and we will do all we can to assist them." For active duty military and their spouses, Free File has a special offer. Individuals and their families who meet the income limitation may choose from any of nine companies without regard to additional eligibility requirements. The nine special offers are from 1040Now, Inc., FileYourTaxes.com, Free tax Returns.com, H&R Block, On-Line Taxes, Inc., Tax ACT, TaxHawk, Inc., TaxSlayer (English and Spanish) and TurboTax. Active duty military stationed in combat zones also have more time to file their tax returns. However, those with spouses and families may opt to file as soon as they are able to claim various tax benefits for which they may be eligible. If only one spouse is present to file a joint return, they must have proper authorization to file a joint tax return on behalf of their spouse. The IRS will begin processing tax returns on January 27. With Free File, you can use any digital device, personal computer, tablet or smart phone. Free File products are mobile enabled so you can do your taxes on your smart phone or tablet and e-file with your hand-held device. Here's how Free File works: Go to IRS.gov/freefile to see all Free File options. Military personnel who meet the income requirement can select from any of the nine providers that have "Free for Active Military for Adjusted Gross Income of $69,000 or less" in their offer. Nine of the 10 partners are making the offer. One product is in Spanish. Select a provider and follow the links to their web page to begin your tax return. Complete and e-file your tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options. Generally, each Free File partner sets additional eligibility requirements that civilian taxpayers must meet. Non-military personnel should use the "look up" tool at IRS.gov/freefile to find the best match. Military members can get more information on their special tax benefits at IRS.gov/military. Free File is available now through October to accommodate extension filers.

https://www.irs.gov/newsroom/irs-free-file-opens-today-do-taxes-online-for-free

IR-2020-06, January 10, 2020 WASHINGTON – Most taxpayers can get an early start on their federal tax returns as IRS Free File – featuring brand-name online tax providers − opens today at IRS.gov/freefile for the 2020 tax filing season. Taxpayers whose adjusted gross income was $69,000 or less in 2019 – covering most people – can do their taxes now, and the Free File provider will submit the return once the IRS officially opens the 2020 tax filing season on January 27 and starts processing tax returns. "Free File online products offer free federal tax return preparation, free electronic filing and free direct deposit of refunds to help get your money faster," said Chuck Rettig, IRS Commissioner. "The IRS has worked to improve the program for this year, and we encourage taxpayers to visit IRS.gov, and consider using the Free File option to get a head start on tax season." For 2020, the Free File partners are: 1040Now, Inc., ezTaxReturn.com (English and Spanish), FileYourTaxes.com, Free tax Returns.com, H&R Block, Intuit, On-Line Taxes, Inc., Tax ACT, TaxHawk, Inc. and TaxSlayer (English and Spanish). Since its 2003 debut, Free File has served nearly 57 million taxpayers, saving an estimated $1.7 billion calculated using a conservative $30 tax preparation fee. Free File is a public-private partnership between the Internal Revenue Service and Free File Inc. (FFI), a consortium of tax software providers who make their Free File products available at IRS.gov/FreeFile. Here's how Free File works: Go to IRS.gov/freefile to see all Free File options.   Browse each of the offers or use a "look up" tool to help you find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if the taxpayer's adjusted gross income was $69,000 or less, they will find at least one free product to use.   Select a provider and follow the links to their web page to begin a tax return.   Complete and e-File a tax return only if you have all the income and deduction records you need. The fastest way to get a refund is by filing electronically and selecting direct deposit. If you owe, use direct pay or electronic options. Most companies provide a special offer for active duty military personnel who earned $69,000 or less. Those taxpayers can choose from any participating Free File provider regardless of the company's other eligibility standards. Free File also can be a valuable tool for younger taxpayers or first-time filers with modest incomes as well as retirees and working families seeking to save money. Free File providers also offer state tax return preparation, some for free and some for a fee. Again, use the "look up" tool to find the right product. There are two products in Spanish. With Free File, you can even use any digital device, personal computer, tablet or smart phone. Free File products are mobile enabled so you can do your taxes on your smart phone or tablet and e-File with your hand-held device. You should also know your protections under the IRS Free File program. They include: Get a free federal tax return - As long as you qualify for the Free File federal return offer, you must not be charged for preparation and e-filing of a federal tax return. Be protected from unnecessary fees - Other than state tax preparation fees and a possible fee if you choose to continue with tax preparation when you don't qualify for the federal return offer, you must not be offered or solicited marketing, promotional rebates, or any other form of selling activity on the Free File company's website. Any state preparation or non-qualifying fees must be disclosed on the company's Free File landing page. Be guided in your choices - If you find you don't qualify for a specific company's Free File offer after visiting their Free File website, you may return to the IRS.gov Free File website to seek another Free File online offer. Each Free File company will provide you information when you don't qualify, with the option to select a link to bring you back to IRS.gov Free File site to select another company. Get help if you need it - If you need help when you are on the company's Free File website and doing your taxes, you may refer to the company's free customer service options. Be reminded of Free File - If you used Free File last year, you should receive an email from the same company product that you used, welcoming you back to Free File. The email should include a link to the company's Free File online program and explain how to file with the program. Be protected from bank product fees - As part of Free File, you must not be offered any bank products such as Refund Anticipation Loans or Refund Anticipation Checks. Get help finding a free option for you - IRS offers a Free File online Look-up tool to help you find an offer that best meets your needs. Get important information on possible charges for state returns - Many Free File online products offer free state tax preparation. Some charge a state fee. Be sure to read each company's information carefully. The IRS also offers Free File Fillable Forms, which is the electronic version of IRS paper forms to any taxpayer regardless of income. That product will be available when IRS opens the tax filing season on January 27. Free File Fillable Forms is best for taxpayers who are comfortable doing their own taxes with little assistance. Free File online products will be available from January through October for extension filers. Taxpayers who cannot meet the April 15 deadline, also can use Free File to file extensions regardless of their income. Free File is just one way the IRS provides free tax preparation options to taxpayers. Taxpayers wanting more personal help can visit one of thousands of community volunteer sites through the Volunteer Income Tax Assistance program or Tax Counseling for the Elderly offered by AARP. Trained volunteers will prepare returns for free for taxpayers who generally made $56,000 or less. Taxpayers using their mobile phones or tablets to do their taxes can either go directly to IRS.gov/freefile or they can use the IRS2Go app and select "Free Tax Help" to find information on Free File and the VITA locator tool.

https://www.irs.gov/newsroom/direct-deposit-fastest-way-to-receive-federal-tax-refund

IRS YouTube videos: Direct Deposit for Your Tax Refund − English IR-2020-05, January 9, 2019 WASHINGTON — With tax season beginning soon, the Internal Revenue Service reminds taxpayers that choosing to have their tax refund directly deposited into their checking or savings account is the fastest way to get their money. It's simple, safe and secure. Taxpayers can also get their refund deposited into one, two or three different accounts, if desired. Eight out of 10 taxpayers get their refunds by using direct deposit. The IRS uses the same electronic transfer system to deposit tax refunds that is used by other federal agencies to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts. Direct deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable. And it saves taxpayer money. It costs more than $1 for every paper refund issued, but only a dime for each direct deposit. Easy to use A taxpayer simply selects direct deposit as the refund method when using tax software or working with a tax preparer, and then types in their account and routing number. It's important to double check entries to avoid errors. The IRS reminds taxpayers they should only deposit refunds directly into accounts that are in their name, their spouse's name or both if it's a joint account. Split refunds By using direct deposit, a taxpayer can split their refund into up to three financial accounts, including a bank or Individual Retirement Account. Part of the refund can even be used to purchase up to $5,000 in U.S. Series I Savings Bonds. A taxpayer can split their refund by using tax software or by using IRS Form 8888, Allocation of Refund (including Savings Bond Purchases), if they file a paper return. Some people use split refunds as a convenient option for managing their money, sending some of their refund to an account for immediate use and some for future savings. No more than three electronic tax refunds can be deposited into a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund will be issued for the refunds exceeding that limit. E-file plus direct deposit yields fastest refunds The IRS also encourages taxpayers to file electronically. While a person can choose direct deposit whether they file their taxes on paper or electronically, a taxpayer who e-files will typically see their refund in less than 21 days. Taxpayers can track their refund using "Where's My Refund?" on IRS.gov or by downloading the IRS2Go mobile app. "Where's My Refund?" is updated once daily, usually overnight, so there's no reason to check more than once per day or call the IRS to get information about a refund. Taxpayers can check "Where's My Refund?" within 24 hours after the IRS has received their e-filed return or four weeks after receipt of a mailed paper return. "Where's My Refund?" has a tracker that displays progress through three stages: (1) Return Received, (2) Refund Approved, and (3) Refund Sent. Whether through IRS Free File or commercially available software, electronic filing vastly reduces tax return errors, as the tax software does the calculations, flags common errors and prompts taxpayers for missing information.

https://www.irs.gov/newsroom/irs-helps-workers-businesses-with-new-gig-economy-tax-center

IR-2020-04, January 9, 2020 WASHINGTON — The Internal Revenue Service this week launched a new Gig Economy Tax Center on IRS.gov to help people in this growing area meet their tax obligations through more streamlined information. "The IRS developed this online center to help taxpayers in this emerging segment of the economy," said IRS Commissioner Chuck Rettig. "Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line." The gig economy is also known as the sharing, on-demand or access economy. It usually includes businesses that operate an app or website to connect people to provide services to customers. While there are many types of gig economy businesses, ride-sharing and home rentals are two of the most popular. Educating gig economy workers about their tax obligations is vital because many don't receive form W-2s, 1099s or other information returns for their work in the gig economy. However, income from these sources is generally taxable, regardless of whether workers receive information returns. This is true even if the work is fulltime, part-time or if the person is paid in cash. Workers may also be required to make quarterly estimated income tax payments, pay their share of Federal Insurance Contribution (FICA), Medicare and Additional Medicare taxes if they are employees and pay self-employment taxes if they are not considered to be employees. The Gig Economy Tax Center streamlines various resources, making it easier for taxpayers to find information about the tax implications for the companies that provide the services and the individuals who perform them. It offers tips and resources on a variety of topics including: filing requirements making quarterly estimated income tax payments paying self-employment taxes paying FICA, Medicare and Additional Medicare deductible business expenses special rules for reporting vacation home rentals For more information, check out the new Gig Economy Tax Center on IRS.gov. More resources: Gig Economy and your taxes: things to knowPDF    

https://www.irs.gov/newsroom/national-taxpayer-advocate-delivers-annual-report-to-congress

IR-2020-03, January 8, 2020 WASHINGTON — Acting National Taxpayer Advocate Bridget Roberts today released her 2019 Annual Report to Congress. Key challenges highlighted in the report include implementation of the Taxpayer First Act, inadequate taxpayer service and limited funding of the agency. Roberts also released the third edition of the National Taxpayer Advocate's "Purple Book," which presents 58 legislative recommendations designed to strengthen taxpayer rights and improve tax administration. The report highlights that the Taxpayer First Act, enacted into law on July 1, 2019, has made the most comprehensive revisions to IRS procedures since the IRS Restructuring and Reform Act of 1998, including some 23 provisions previously recommended by the National Taxpayer Advocate. The Taxpayer First Act also requires the IRS to develop four strategic plans: (i) a comprehensive taxpayer service strategy (due to Congress by July 1, 2020); (ii) a comprehensive plan to redesign the IRS's organizational structure (due to Congress by Sept. 30, 2020); (iii) a comprehensive employee training strategy that includes taxpayer rights training (due to Congress by July 1, 2020); and (iv) a multi-year plan to meet IRS information technology (IT) needs. "By passing the Taxpayer First Act, Congress has sent the IRS a clear message that it needs to rethink the way it operates – the services it provides, its organizational structure, the way it trains employees, and the technology it uses," Roberts wrote in the preface to the report. Roberts also noted that long-time National Taxpayer Advocate Nina E. Olson retired five months ago, and a permanent replacement has not yet been appointed. "While I am honored to serve as the Acting National Taxpayer Advocate," Roberts wrote, "the Office of the Taxpayer Advocate – and taxpayers – deserve a permanent appointee. . . . Given the current crossroads at which the IRS finds itself, it is critical that a permanent National Taxpayer Advocate be appointed as quickly as possible to help ensure the IRS protects taxpayer rights and meets its obligations to taxpayers." Highlights of the report are summarized below. The IRS is struggling to accomplish its mission According to its mission statement, the IRS aims to "[p]rovide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all." The report says the IRS is struggling to meet both of those goals. The IRS has been found to be among the lowest performing federal agencies in providing a positive customer experience. The President's Management Agenda emphasizes the importance of high-quality customer service and cites the American Customer Satisfaction Index (ACSI) and the Forrester U.S. Federal CX Index™ as key benchmarks. The ACSI report for 2018 ranked the Treasury Department tied for 10th out of 12 federal departments and says that "most [IRS] programs score . . . well below both the economy-wide national ACSI average and the federal government average." The 2019 Forrester report ranked the IRS as 13th out of 15 federal agencies and characterized the IRS's score as "very poor." During fiscal year (FY) 2019, the Advocate's report says the IRS received approximately 100 million telephone calls, and customer service representatives answered only 29%. In recent years, the agency has scaled back in-person assistance, closing more than 10% of its Taxpayer Assistance Centers, generally requiring taxpayers to schedule appointments in advance, and reducing the number of taxpayers served by nearly half from FY 2015 to FY 2018. The report says the IRS is also struggling to enforce the law with "fairness to all." The IRS recently estimated it was unable to collect an annual average of about $381 billion in unpaid tax attributable to legal-source income for tax years 2011-2013. With approximately 122 million U.S. households in 2013, that suggests each U.S. household is effectively paying an average annual "surtax" of more than $3,000 to subsidize noncompliance by others. The report says that "fairness to all" also requires that the IRS be accessible to taxpayers against whom it takes enforcement actions, such as wage garnishments, bank levies, or the filing of notices of federal tax lien. Levies often create economic hardships for individual taxpayers, and the law requires the IRS to release levies in those cases. Yet taxpayers often cannot reach the IRS to make it aware of their hardships. During FY 2019, the IRS's Automated Collection System (ACS) more than doubled the number of levies it served (from about 200,000 in FY 2018 to about 428,000 in FY 2019), while the percentage of calls answered on the consolidated ACS telephone lines dropped from 49% to 31%. Wait times for taxpayers who got through increased from 24 minutes to 38 minutes. The report urges the IRS to prioritize phone service for taxpayers against whom it takes collection action. "The IRS has an obligation to be accessible to these taxpayers, and it should not ramp up enforcement actions beyond the point where it has enough telephone assistors to handle the taxpayer calls those actions generate," Roberts wrote. The report attributes the IRS's shortcomings mostly to budget constraints but also to a culture in which the agency focuses on its own priorities without adequately factoring in the needs of taxpayers. The IRS does not receive enough funding to meet taxpayer needs Since FY 2010, the IRS budget has been reduced by about 20% after adjusting for inflation, and the number of full-time equivalent employees has declined by about 22%. The report points out that answering 100 million telephone calls, conducting audits, and taking enforcement actions require adequate staffing, and the IRS cannot substantially improve its performance without additional resources. The report urges Congress to increase IRS fundingPDF and to change the budget rules to account for the revenue additional IRS appropriations are likely to generate. In FY 2018, the IRS collected nearly $3.5 trillion on a budget of about $11.4 billion. "It is economically irrational to underfund the IRS," the report says. "If a company's accounts receivable department could generate an ROI [return on investment] of 300:1 and the chief executive officer (CEO) failed to provide enough funding for it to do so, the CEO would be fired. Yet in general, the federal budget rules exclusively take into account outlays and ignore the revenue those outlays generate." In particular, the report recommends that Congress increase funding for taxpayer service and IT modernization. "Mostly because of antiquated technology, a smaller workforce, and an increasing workload, [the IRS] cannot afford to provide the quality of service that taxpayers deserve," the report says. The IRS should use the Taxpayer First Act as an opportunity to identify taxpayer needs and preferences and develop initiatives to meet them Despite the IRS's significant funding limitations, the report urges the IRS to utilize the Taxpayer First Act requirements – to develop plans to revamp its taxpayer service strategy, organizational structure, employee training strategy, and technology priorities – as a roadmap for a once-in-a-generation reassessment of its objectives and operations. Noting that the IRS often has developed strategies in a vacuum without soliciting taxpayer feedback and taking into account taxpayer needs and preferences, the report urges a full-scale "cultural shift." "If the culture of the organization is one where employees look to minimize interactions with taxpayers in an effort to move work, or where taxpayers who owe money are automatically viewed negatively, then expanding digital services [alone] will not improve customer service," Roberts wrote. "The IRS needs to take a holistic view of how it operates and understand what is and is not working." The report identifies the absence of an existing comprehensive customer service strategy that focuses on taxpayer needs and preference as the #1 most serious problem facing taxpayers. It makes numerous recommendations to improve the customer experience, including that the IRS take the following actions: Conduct multi-disciplined, comprehensive research into taxpayer needs and preferences. Require that all IRS business units, including those charged primarily with enforcement, develop a detailed customer service strategy. Appoint a Chief Customer Experience Officer to coordinate service initiatives across IRS business units. Ensure that taxpayers who cannot work with the IRS digitally or whose issues are not resolved online can reach and work with an IRS employee. Address the needs of practitioners who interact with the IRS on behalf of large numbers of taxpayers. For each proposal included in its customer service strategy, include cost estimates, milestones, and taxpayer-focused performance measures so the effectiveness of the strategy in improving customer service can be measured over time. The report expresses concern that the IRS declined to include the National Taxpayer Advocate or a Taxpayer Advocate Service (TAS) representative as part of a core team created to coordinate the agency's Taxpayer First Act implementation activities. "I find this deeply concerning," Roberts wrote. "Congress created the Office of the Taxpayer Advocate to serve as the statutory voice of the taxpayer within the IRS. No one has a better view into the problems that taxpayers and practitioners face day-to-day when working with the IRS than TAS. Over the last 20 years, TAS has worked more than 4.4 million cases resulting from problems with IRS systems or processes. That history with individual and business taxpayers' problems gives TAS unique insight, perspective, and information that could be a key resource for identifying areas in need of improvement as the IRS develops a comprehensive customer service strategy." Other major issues addressed The National Taxpayer Advocate's 2019 annual report has been consolidated and differs from prior reports in two ways. First, the Taxpayer First Act reduced the number of "most serious problems" the National Taxpayer Advocate must identify from at least 20 to ten. Second, the National Taxpayer Advocate initiated the Purple Book two years ago as a supplement to more detailed legislative recommendations proposed in the main volume of the report. This year, all legislative recommendations have been consolidated into the Purple Book, and the longer-form recommendations have been eliminated. Overall, this year's report identifies ten "most serious problems," provides status updates on two problems identified in previous reports, makes dozens of recommendations for administrative change, makes 58 recommendations for legislative change, analyzes the ten tax issues most frequently litigated in the federal courts, and presents four research studies. Among other problems addressed are the following: Refund Delays. The report says too many taxpayers who file legitimate returns are being harmed because the IRS's anti-fraud filters unnecessarily flag their returns and delay their refunds for weeks or months. During the 2019 filing season, the IRS used a new refund fraud filter (known as "Filter X") that ultimately flagged and stopped the processing of nearly 1.1 million returns. More than half the refunds were eventually paid. The false positive rate for other non-identity theft refund fraud filters was 71% (meaning that 71 out of every 100 refunds stopped by these filters were eventually determined to be legitimate). The increase in returns flagged by these filters (known as "pre-refund wage verification hold" cases) has had a significant impact on TAS's case advocacy operations. The number of TAS cases generated by these filters has increased from about 20,000 in FY 2017 to about 92,000 in FY 2019. TAS case receipts have increased by 44% over the past two years, entirely attributable to this category of cases, and this work surge has increased the average cycle time of TAS cases across-the-board. TAS is working with the IRS to try to reduce this workstream of cases for the upcoming filing season. Free File. The report says the Free File program is failing to promote the best interests of taxpayers, citing low usage and taxpayer confusion. Under the program's terms, 70% of individual taxpayers qualify to prepare their returns through Free File at no cost. Yet fewer than 2% of taxpayers use the program, the report finds, and over the past four years, fewer than half of taxpayers who have used Free File in one year have used it again the following year. The low initial usage rate and low repeat usage rate suggest taxpayers are not generally satisfied with the program. In addition, the report says the IRS incurs costs to administer the program and Free File members provided free tax software to at least 17.7 million taxpayers outside the Free File program during the 2019 filing season. It is likely that most, if not substantially all, of the 2.5 million taxpayers who used Free File software last year would have been able to file for free through company websites if Free File did not exist. The report makes several recommendations to improve the Free File programPDF. In addition, it recommends that the IRS establish two usage goals for the program: (i) increase the Free File usage rate to a significantly higher yet attainable level, such as 10% of the 70% of individual taxpayers eligible to use the program, and (ii) increase the retention rate to 75% of taxpayers who used the program in the preceding year. If the established goals are not attained by 2025, the report recommends the IRS replace Free File with an alternative approach to make tax software available to taxpayers at no or low cost, such as through sole-source or multi-source contracts with tax software companies. (On Dec. 30, 2019, after this report went to press, the IRS announced it had signed an addendumPDF to its memorandum of understanding with Free File, Inc. that, among other things, prohibits Free File members from excluding their Free File landing pages from organic internet searches and removes a provision that had prohibited the IRS from creating and offering its own tax software to taxpayers or allowing taxpayers to file their returns directly with the IRS.) TAS research studies The report presents research studies on the following topics: The subsequent compliance of taxpayers who received educational letters from the National Taxpayer Advocate after they appeared to have claimed the Earned Income Tax Credit (EITC) in error in the prior yearPDF. Generally, the study found the letters enhanced compliance both on the first return filed after the letters were sent and during the subsequent three-year period. IRS compliance with rules governing the imposition of two-year bans on eligibility for refundable tax creditsPDF. The Internal Revenue Code bans taxpayers from receiving the EITC, the Child Tax Credit, or the American Opportunity Tax Credit for two years if the IRS determines a taxpayer claimed the credit recklessly or with intentional disregard of rules and regulations. The ban is intended to deter frivolous claims. However, the amounts at stake represent a high percentage of the annual income of many eligible families, so it is critical that bans be imposed only in appropriate cases. A review of a representative sample of cases in which the bans were imposed as a result of audits of tax year 2016 returns shows the IRS often did not follow its own procedures: (i) in 53% of the cases, required managerial approval for imposing the ban was not secured; (ii) in 82% of the cases, the IRS did not adequately explain to the taxpayer why the ban was imposed, as required; (iii) in 61% of the cases in which the auditor was required to speak to the taxpayer before imposing the ban, no such conversation took place; and (iv) in 54% of the cases in which taxpayers submitted documents, it appeared from the documents submitted that the taxpayer believed he or she qualified for the credit. The specific deterrence implications of increased reliance on correspondence auditsPDF. Generally, the study found that face-to-face audits are consistently effective in promoting future reporting compliance, while future reporting compliance after correspondence audits is mixed. These results are consistent with a recent survey commissioned by TAS that found most taxpayers who underwent a face-to-face audit recalled the audit, while the majority of taxpayers subjected to a correspondence examination reported they had not been audited.  The extent to which the IRS continues to erroneously approve Form 1023-EZ applicationsPDF. In 2014, the IRS introduced a streamlined tax-exemption application that does not require applicants to attach articles of incorporation or bylaws to their applications but merely requires them to "attest" that they meet the eligibility requirements. In 2019, TAS examined a representative sample of organizations that the IRS had approved as tax-exempt by reviewing articles of incorporation in 25 states that make articles of incorporation available online at no cost. TAS found that 40% of the approved organizations did not qualify for IRC § 501(c)(3) status based on their articles of incorporation. Please visit www.TaxpayerAdvocate.irs.gov/2019AnnualReport for more information. Related Items: Complete Report: 2019 Annual Report to Congress   Executive SummaryPDF Purple Book About the Taxpayer Advocate Service TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Your local advocate's number is available in your local directory and at contact the Taxpayer Advocate Service page. You may also call TAS toll-free at 877-777-4778. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn't working as it should. And our service is free. For more information about TAS and your rights under the Taxpayer Bill of Rights, go to https://taxpayeradvocate.irs.gov/. You can get updates on tax topics at facebook.com/YourVoiceAtIRS, Twitter.com/YourVoiceatIRS, and YouTube.com/TASNTA. The Taxpayer Advocate Service will mark its 20th anniversary in March 2020. Created by Congress as part of the IRS Restructuring and Reform Act of 1998, TAS has two main statutory missions: (i) to assist taxpayers in resolving problems with the IRS and (ii) to identify areas in which groups of taxpayers are experiencing problems in their dealings with the IRS and make administrative and legislative recommendations to mitigate the problems. Over the past 20 years, TAS has assisted more than 4.4 million taxpayers, made hundreds of administrative recommendations adopted by the IRS, and proposed some 46 legislative recommendations that Congress has enacted into law. A key accomplishment was the IRS's adoption and Congress's later enactment of the Taxpayer Bill of Rights for which the National Taxpayer Advocate had long advocated. Visit the TAS website to learn more about TAS and how it can help you.

https://www.irs.gov/newsroom/irs-opens-2020-filing-season-for-individual-filers-on-jan-27

IR-2020-02, January 6, 2020 WASHINGTON ― The Internal Revenue Service confirmed that the nation's tax season will start for individual tax return filers on Monday, January 27, 2020, when the tax agency will begin accepting and processing 2019 tax year returns. The deadline to file 2019 tax returns and pay any tax owed is Wednesday, April 15, 2020. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline. "As we enter the filing season, taxpayers should know that the dedicated workforce of the IRS stands ready to help," said IRS Commissioner Chuck Rettig. "We encourage taxpayers to plan ahead and use the tools and information available on IRS.gov. The IRS and the nation's tax community are committed to making this another smooth filing season." The IRS set the January 27 opening date to ensure the security and readiness of key tax processing systems and to address the potential impact of recent tax legislation on 2019 tax returns. While taxpayers may prepare returns through the IRS' Free File program as well as many tax software companies and tax professionals before the start date, processing of those returns will begin after IRS systems open later this month. "The IRS encourages everyone to consider filing electronically and choosing direct deposit," Rettig said. "It's fast, accurate and the best way to get your refund as quickly as possible." Filing electronically flags common errors and prompts taxpayers for missing information. Taxpayers can get free help preparing and filing taxes through IRS Free File online or free tax help from trained volunteers at community sites around the country. The IRS also reminds taxpayers that they don't have to wait until January 27 to start their tax return or contact a reputable tax preparer. In addition, IRS tax help is available 24 hours a day on IRS.gov, the official IRS website, where people can find answers to tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services GuidePDF links to these and other IRS services.

https://www.irs.gov/newsroom/irs-issues-2019-annual-report-highlights-program-areas-across-the-agency

IR-2020-01, January 6, 2020 WASHINGTON — The Internal Revenue Service today released a new annual report highlighting accomplishments across the nation's tax agency during Fiscal Year 2019. "Internal Revenue Service Progress Update/Fiscal Year 2019 – Putting Taxpayers First" PDF provides an overview of a variety of operations across taxpayer service, compliance and support areas. The 41-page document is built around the agency's six strategic goals. "This report is about more than what happened during the past year," IRS Commissioner Chuck Rettig wrote in the report's opening message to taxpayers. "It's also designed to provide insight into the people serving this country on behalf of the IRS and provide a glimpse into the future." The report highlights the work of IRS employees supporting the nation's tax system during the past year. This covers a variety of taxpayer service efforts, including development of a new Taxpayer Withholding Estimator, as well as operations support efforts on areas involving Information Technology modernization, Human Capital Office initiatives and others. The report also focuses on Criminal Investigation results and efforts involving civil enforcement. Ongoing compliance areas, among them micro-captives, syndicated conservation easements and virtual currency, are also included in the publication. The report also covers IRS implementation of new tax laws, ranging from steps to put in place provisions of the Tax Cuts and Jobs Act to ongoing work underway on the new Taxpayer First Act of 2019. The resource document is designed to complement other documents, including the annual IRS Data Book. "We continually strive to put taxpayers first," Rettig said. "The IRS leadership team and our entire workforce are excited about the direction of our agency as outlined in this report."

https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-second-quarter-of-2020

IR-2020-46, February 28, 2020 WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning April 1, 2020. The rates will be: five (5) percent for overpayments (four (4) percent in the case of a corporation); two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000; five (5) percent for underpayments; and seven (7) percent for large corporate underpayments.  Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. The interest rates announced today are computed from the federal short-term rate determined during January 2020 to take effect February 1, 2020, based on daily compounding. Revenue Ruling 2020-7PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2020-12, dated March 16, 2020.

https://www.irs.gov/newsroom/tax-time-guide-irsgovs-wheres-my-refund-tool-is-fastest-easiest-way-to-check-on-tax-refunds

IR-2020-45, February 28, 2020 WASHINGTON — The Internal Revenue Service is reminding taxpayers today that the best way to check on their tax refund is by using the "Where's My Refund?" tool at IRS.gov or through the IRS2Go Mobile App. This news release is part of a group of IRS tips called the Tax Time Guide. The guide is designed to help taxpayers as they near the April 15 tax filing deadline. As of February 21, the IRS had already issued more than 37.4 million refunds averaging $3,125. While the majority of tax refunds are issued within 21 days, some may take longer. Just as each tax return is unique and individual, so is each taxpayer's refund. There are a few things taxpayers should keep in mind if they are waiting on their refund but hear or see on social media that other taxpayers have already received theirs. The IRS works hard to issue refunds as quickly as possible, but some tax returns take longer to process than others. Many different factors can affect the timing of your refund after we receive your return. Also, remember to take into consideration the time it takes for your financial institution to post the refund to your account or for you to receive it by mail. There are several reasons a tax refund may take longer: Some tax returns require additional review. The return may include errors or be incomplete. The return could be affected by identity theft or fraud. The return includes a claim for the Earned Income Tax Credit or Additional Child Tax Credit. The time between the IRS issuing the refund and the bank posting it to an account since many banks do not process payments on weekends or holidays. The IRS will contact taxpayers by mail if more information is needed to process a return. Fast and easy refund updates Taxpayers can use "Where's My Refund?" to start checking on the status of their return within 24 hours after the IRS acknowledges receipt of an electronically filed return or four weeks after the taxpayer mails a paper return. The tool's tracker displays progress through three phases: (1) Return Received; (2) Refund Approved; and (3) Refund Sent. To use it a taxpayer must enter their Social security number or ITIN, their filing status and the exact whole dollar amount of their refund. The IRS updates "Where's My Refund?" once a day, usually overnight, so there's no need to check more frequently. Ignore refund myths Some taxpayers mistakenly believe they can expedite their refund by ordering a tax transcript, calling the IRS or calling their tax preparer. Ordering a tax transcript will not help a taxpayer get their refund faster or find out when they'll get their refund. The information available on "Where's My Refund?" is the same information available to IRS telephone assistors. Filing electronically and using direct deposit is the fastest and safest way to file an accurate return and receive a tax refund. More than four out of five tax returns are expected to be filed electronically, with a similar proportion of refunds issued through direct deposit. Most taxpayers who want to prepare their own returns can file electronically for free with IRS Free File. Alternatively taxpayers who qualify can get free tax help from trained volunteers at community sites around the country. Taxpayers can use several options to help find a paid tax preparer. One resource is Choosing a Tax Professional, which includes a list of consumer tips for selecting a tax professional. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications is a free searchable and sortable database. It includes the name, city, state and zip code of credentialed return preparers who are CPAs, enrolled agents or attorneys, as well as those who have completed the requirements for the IRS Annual Filing Season Program. A search of the database can help taxpayers verify credentials and qualifications of tax professionals. Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov anytime. No appointment required and no waiting on hold.

https://www.irs.gov/newsroom/some-popular-tax-benefits-renewed-for-2019-irs-publication-17-helps-with-2019-taxes

IR-2020-44, February 26, 2020 WASHINGTON ― The Internal Revenue Service reminds taxpayers that it is processing tax returns claiming benefits extended or changed by recent legislation. Most taxpayers can file when they are ready – and as they normally would – if they are eligible for one or more of these benefits and claim them on their 2019 federal tax return. Taxpayers can get the most out of various tax benefits and get useful tips on preparing their 2019 federal income tax returns by consulting a free, comprehensive tax guide available on IRS.gov. Publication 17, Your Federal Income Tax, features an in-depth look at on tax changes for 2019 including recent legislative changes and covers the general rules for filing a federal income tax return. It supplements the information contained in the tax form instruction booklet. This 277-page guide – available online as a , HTML or eBookEPUB − also provides thousands of interactive links to help taxpayers quickly get answers to their questions. Certain individual tax provisions extended Deduction for above-the-line qualified tuition and related expenses claimed on Form 8917, Tuition and Fees Deduction. Deduction for mortgage insurance premiums treated as qualified residence interest, claimed on Schedule A, Itemized Deductions. Deduction for unreimbursed medical and dental expenses as the floor was lowered to 7.5% of adjusted gross income and claimed on Schedule A, Itemized Deductions. Credit for nonbusiness energy property claimed on Form 5695, Residential Energy Credits. Income exclusion for canceled debt for qualified principal residence indebtedness where the taxpayer defaulted on a mortgage that they took out to buy, build or substantially improve their main home claimed on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Kiddie Tax modification Recent legislation also modified the rules related to what's commonly called the "Kiddie Tax" for certain children who may be able to calculate their tax based on the tax rate of the child's parent. For tax year 2019, taxpayers can elect this alternative application for the tax on their unearned income by completing Form 8615, Tax for Certain Children Who Have Unearned Income, differently depending on their election. See the Form 8615 instructions for Part II Tax for more information. Taxpayers who make this election for 2019 must include a statement with their return specifying "election to modify tax of unearned income." The statement can be made on the return (for example, on line 7 or at the top of Form 8615) or on an attachment filed with the return. Disaster tax relief Disaster tax reliefPDF was also enacted for those affected by certain Federally declared disasters. This includesPDF an increased standard deduction based on qualified disaster losses and an election to use 2018 earned income to figure the 2019 earned income credit and additional child tax credit. Certain taxpayers affected by federally declared disasters may be eligible for an automatic 60-Day extension for filing, paying their taxes, and other administrative deadlines. Special rules may apply for taxpayers who received a distribution from an individual retirement arrangement, profit-sharing plan or retirement plan and their main home was in one of the federally declared disaster areas eligible for these special rules. Amended returns Three tax laws were enacted on December 20, 2019. The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extended certain previously expired tax benefits to 2018 and 2019 and provided tax relief for certain incidents federally declared as disasters in 2018 and 2019. The extended benefits and the disaster relief may now be claimed on 2018 and 2019 tax returns, by those who qualify. The Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) made other changes, such as increasing the penalty for failing to file a tax return and modifying the rules related to the taxation of unearned income of certain minor children. The SECURE Act relaxed certain retirement plan contribution and distribution requirements beginning Jan. 1, 2020. While the IRS has released the vast majority of tax year 2019 products, the IRS must also update 2018 tax products affected by these legislative changes. Taxpayers may have to file an amended return to claim these benefits on their 2018 return. See Form 1040-X, Amended U.S. Individual Income Tax Return, and its instructions at IRS.gov/form1040x. Impacted 2018 forms, instructions and schedules are being revised to reflect the legislation enacted December 20, 2019. The updated 2018 revisions will be posted to IRS.gov for taxpayers to file amended returns accurately. The IRS works closely with tax professionals and partners in the tax return preparation and tax software industries to prepare for and address issues that may occur during the filing season. This ongoing collaboration ensures that taxpayers can continue to rely on the IRS, tax professionals and tax software programs when it's time to file their returns. As always, filing electronically and choosing direct deposit is the fastest, most accurate and most convenient way to receive a tax refund. More resources: FS-2020-04, New law helps people save for retirement; other retroactive changes impact many taxpayers

https://www.irs.gov/newsroom/low-income-taxpayer-clinics-represented-19513-taxpayers-dealing-with-an-irs-tax-controversy-see-the-latest-program-report-and-the-2020-litc-grant-recipient-list

IR-2020-43, February 26, 2020 WASHINGTON — The Internal Revenue Service's Low Income Taxpayer Clinic (LITC) Program Office has issued its annual program report PDF. The report describes how LITCs provide representation, education, and advocacy for taxpayers who are low income or speak English as a second language (ESL). The LITC Program is a federal grant program administered by the Taxpayer Advocate Service, led by the Acting National Taxpayer Advocate, Bridget Roberts. LITCs represent individuals whose incomes are below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. They can represent taxpayers in court as well as within the IRS. They also can provide information about taxpayer rights and responsibilities in different languages for ESL taxpayers. LITCs provide services for free or a small fee. They receive IRS grants but work independently to assist and advocate for taxpayers. During 2018, LITCs represented 19,513 taxpayers dealing with an IRS tax controversy. They helped taxpayers secure more than $4.7 million in tax refunds and reduced taxpayers' liabilities by nearly $124 million. They also brought more than 4,200 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 1,700 educational activities that were attended by over 16,600 persons. More than 1,800 volunteers contributed to the success of LITCs by contributing nearly 57,000 hours of their time. More than two-thirds of the volunteers were attorneys, certified public accountants, or enrolled agents. LITCs used a variety of approaches to successfully advocate for taxpayers. These included utilizing collection alternatives to resolve issues administratively within the IRS litigating cases in the United States Tax Court and other federal courts, and elevating systemic issues through the Taxpayer Advocate Service's Systemic Advocacy Management System. Below is just one example of how an LITC assisted taxpayers in need: The taxpayers were a senior couple with no children. The husband had served in the military and was disabled during combat operations. He had a construction business, and together he and his wife invested large amounts of time and money into renovating their home into a bed and breakfast. After years of financial setbacks, the couple lost their home and long-time business, and incurred a large outstanding federal tax debt. The taxpayers filed for bankruptcy protection. At that time, they were living on a fixed income of Social Security and a small Veterans Administration pension in a subsidized senior apartment that they were told they could not live in if they had more than $10,000 in tax debt. The couple came to an LITC after they began receiving certified mail notices from the IRS about the federal tax debt. The LITC called the IRS to request a 60-day hold on collection while the taxpayers gathered documents for an Offer-In-Compromise (OIC). The couple then received a notice of intent to levy their Social Security benefits, and the LITC requested a Collection Due Process hearing, where it helped the couple settle its entire federal tax debt with an OIC for $1. The taxpayers returned a customer satisfaction survey to the LITC and acknowledged the work of the staff attorney by saying, "Wonderful you have such a smart, kind, and caring man on your staff. Thank you so much for everything." The full reportPDF contains extensive details about the LI TC Program and more extraordinary stories about the representation that LITCs provide. It also details the results that LITCs achieved on behalf of their clients. 2020 Grant Recipient List Through the LITC Program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. The Internal Revenue Service today announced $11.6 million in matching grants to 131 recipients across the country for development, expansion or continuation of LITCs for the 2020 grant year. IRS Publication 4134, Low Income Taxpayer Clinic ListPDF, provides information about LITCs by geographic area, including contact information and details about the languages, in addition to English, in which each LITC offers services. Publication 4134 is available at IRS.gov. The grant year began on Jan. 1 and ends on Dec. 31. The following is a list of the 131 organizations awarded a grant for the 2020 grant year: 2020 Low Income Taxpayer Clinics Name of Organization City State Award Amount Alaska Business Development Center LITC Anchorage AK $76,000 Legal Services Alabama LITC Montgomery AL $100,000 UA Little Rock Bowen School of Law LITC Little Rock AR $100,000 Legal Aid of Arkansas LITC Springdale AR $64,000 Community Legal Services LITC Phoenix AZ $95,000 Southern Arizona Tax Clinic Tucson AZ $85,919 Bet Tzedek Legal Services Tax Clinic Los Angeles CA $100,000 KYCC Low Income Taxpayer Clinic Los Angeles CA $100,000 Pepperdine LITC Los Angeles CA $85,000 Bookstein Low Income Tax Clinic Los Angeles CA $95,000 Chapman University Tax Law Clinic Orange CA $100,000 Inland Counties Legal Services LITC Riverside CA $90,000 Legal Aid Society of San Diego LITC San Diego CA $100,000 University of San Diego LITC San Diego CA $100,000 Chinese Newcomers Service Center San Francisco CA $97,966 Justice and Diversity Center of the Bar Association of San Francisco San Francisco CA $100,000 UC Hastings Low-Income Taxpayer Clinic San Francisco CA $90,000 Cal Poly Low Income Taxpayer Clinic San Luis Obispo CA $100,000 Community Legal Aid So Cal LITC Santa Ana CA $60,000 Colorado Legal Services LITC Denver CO $57,955 Denver Asset Building Coalition LITC Denver CO $50,000 University of Denver LITC Denver CO $100,000 Quinnipiac University School of Law LITC Hamden CT $100,000 UConn Law School Tax Clinic Hartford CT $95,000 The Catholic University of America LITC Washington DC $100,000 The Janet R. Spragens Federal Tax Clinic Washington DC $100,000 Delaware Community Reinvestment Action Council LITC Wilmington DE $100,000 Florida Rural Legal Services Low Income Taxpayer Clinic Ft. Meyers FL $85,000 Three Rivers Legal Services, Inc. Gainesville FL $65,000 Legal Services of Greater Miami Community Tax Clinic Miami FL $100,000 Bay Area Legal Services, Inc. LITC Plant City FL $90,000 Legal Aid Services of Broward and Collier Counties Plantation FL $100,000 Gulfcoast Legal Services LITC St. Petersburg FL $100,000 Legal Services of North Florida Tallahassee FL $100,000 Legal Aid Society of Palm Beach County LITC West Palm Beach FL $90,000 The Philip C. Cook Low-Income Taxpayer Clinic Atlanta GA $100,000 JCvision and Associates, Inc. Hinesville GA $75,800 North Georgia Low Income Taxpayer Clinic Lawrenceville GA $65,000 Iowa Legal Aid LITC Des Moines IA $100,000 University of Idaho College of Law LITC Boise ID $99,000 La Posada Tax Clinic Twin Falls ID $100,000 Ladder Up Tax Clinic Chicago IL $100,000 Loyola Federal Income Tax Clinic Chicago IL $100,000 Administer Justice Elgin IL $100,000 Prairie State Legal Services LITC Wheaton IL $100,000 Indiana Legal Services LITC Bloomington IN $100,000 Neighborhood Christian Legal Clinic Indianapolis IN $100,000 Notre Dame Tax Clinic South Bend IN $95,000 Kansas Legal Services, Inc. LITC Kansas City KS $49,000 The Center for Great Neighborhoods LITC Covington KY $100,000 Legal Aid Society Low Income Taxpayer Clinic Louisville KY $62,800 AppalRed Low Income Taxpayer Clinic Richmond KY $90,000 Southeast Louisiana Legal Services LITC New Orleans LA $100,000 Greater Boston Legal Services Boston MA $95,000 Legal Services Center of Harvard Law School LITC Jamaica Plain MA $100,000 Springfield Partners for Community Action LITC Springfield MA $50,000 Maryland Volunteer Lawyers Service LITC Baltimore MD $100,000 University of Baltimore LITC Baltimore MD $100,000 University of Maryland Carey School of Law LITC Baltimore MD $74,000 Pine Tree Legal Assistance, Inc. LITC Bangor ME $100,000 University of Michigan LITC Ann Arbor MI $95,000 Accounting Aid Society Detroit MI $100,000 Alvin L. Storrs Low Income Taxpayer Clinic East Lansing MI $100,000 West Michigan Low Income Taxpayer Clinic Grand Rapids MI $84,000 Mid-Minnesota Legal Aid Tax Law Project Minneapolis MN $88,000 University of Minnesota LITC Minneapolis MN $100,000 Kansas City Tax Clinic Kansas City MO $76,000  Legal Aid of Western Missouri LITC Kansas City MO $100,000 Washington University School of Law LITC St. Louis MO $96,000 Mississippi Taxpayer Assistance Project Oxford MS $81,500 Montana Legal Services Association LITC Helena MT $26,000 North Carolina Low Income Taxpayer Clinic Charlotte NC $100,000 NC Central University School of Law LITC Durham NC $100,000 Legal Aid of Nebraska LITC Lincoln NE $50,625 NH Pro Bono Low-Income Taxpayer Project Concord NH $85,000 South Jersey Legal Services, Inc. LITC Camden NJ $70,000 Legal Services of New Jersey Tax Legal Assistance Project Edison NJ $100,000 Northeast New Jersey Legal Services LITC Jersey City NJ $100,000 Rutgers Federal Tax Clinic Newark NJ $95,000 NMLA Low Income Taxpayer Clinic Albuquerque NM $100,000 Four Corners Low Income Taxpayer Clinic Farmington NM $94,000 Legal Aid Society of Northeastern New York LITC Albany NY $90,000 Bronx Legal Services Bronx NY $80,000 Brooklyn Legal Services Corporation A LITC Brooklyn NY $95,000 Brooklyn Low-Income Taxpayer Clinic Brooklyn NY $100,000 Erie County Bar Association Volunteer Lawyers Project LITC Buffalo NY $90,000 Hofstra Low Income Taxpayer Clinic Hempstead NY $21,000 Queens Legal Services LITC Jamaica NY $90,000 Fordham Law School New York NY $95,000 Mobilization for Justice New York NY $80,000 The Legal Aid Society LITC New York NY $100,000 Migration Resources Center LITC Staten Island NY $50,000 Syracuse University College of Law LITC Syracuse NY $100,000 Community Legal Aid Services LITC Akron OH $80,000 Legal Aid of Greater Cincinnati LITC CINCINNATI OH $85,000 The Legal Aid Society of Cleveland LITC Cleveland OH $95,000 Southeastern Ohio Legal Services for the public Columbus OH $90,000 The Legal Aid Society of Columbus LITC Columbus OH $100,000 Legal Aid of Western Ohio LITC Toledo OH $65,000 Toledo Tax Controversy Clinic LITC Toledo OH $41,351 Legal Aid Services of Oklahoma LITC Oklahoma City OK $63,000 El Programa Hispano Catolico's LITC Gresham OR $90,000 Legal Aid Services of Oregon LITC Portland OR $90,000 Lewis & Clark Low Income Taxpayer Clinic Portland OR $100,000 Philadelphia Legal Assistance LITC Philadelphia PA $100,000 University of Pittsburgh School of Law LITC Pittsburgh PA $85,000 Villanova Federal Tax Clinic Villanova PA $100,000 Southwestern Pennsylvania Legal Services LITC Washington PA $60,000 MidPenn Legal Services Low Income Taxpayer Clinic York PA $70,000 Rhode Island Legal Services LITC Providence RI $100,000 South Carolina Legal Services LITC Greenville SC $95,000 University of South Dakota School of Law Federal tax Clinic Vermillion SD $90,000 Memphis Area Legal Services Memphis TN $100,000 Tennessee Taxpayer Project Oak Ridge TN $100,000 Legal Aid of Northwest Texas LITC Fort Worth TX $100,000 Texas A&M University School of Law Tax Clinic Fort Worth TX $85,000 Houston Volunteer Lawyers LITC Houston TX $85,000 Lone Star Legal Aid Houston TX $100,000 South Texas College of Law LITC Houston TX $99,957 Texas Tech School of Law LITC Lubbock TX $100,000 Texas Taxpayer Assistance Project San Antonio TX $100,000 Centro Hispano LITC Provo UT $100,000 Legal Services of Northern Virginia LITC Fairfax VA $100,000 Washington and Lee University School of Law Tax Clinic Lexington VA $80,000 The Community Tax Law Project Richmond VA $100,000 Vermont Low Income Taxpayer Clinic Burlington VT $75,000 University of Washington Federal Tax Clinic Seattle WA $100,000 Gonzaga University Federal Tax Clinic Spokane WA $95,000 Legal Action of Wisconsin LITC Milwaukee WI $100,000 The Legal Aid Society of Milwaukee, Inc. Milwaukee WI $75,361 Northwoods Tax Project Wausau WI $84,000    

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

IR-2020-42, February 25, 2020 WASHINGTON — Whether on home computers or mobile devices, the number of taxpayer visits to IRS.gov continues to grow year after year. Millions of taxpayers take advantage of the easy-to-use tools available 24 hours a day on the official website − IRS.gov. IRS.gov is home to IRS Free File, Where's My Refund?, the Tax Withholding Estimator and a host of other convenient applications. The Tax Time Guide is a series of news releases designed to help taxpayers get the information they need to file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax, available on IRS.gov. Research is easier with tools like the Interactive Tax Assistant (ITA), a tax law resource that works using a series of questions and provides responses. There are also answers for Frequently Asked Questions. Tax information is also available in: Spanish (Español); Chinese (中文); Korean (한국어); Russian (Pусский); Vietnamese (Tiếng Việt); and Haitian Creole (Kreyòl ayisyen). Online account tool Taxpayers can use the View Your Account tool to see their tax account. Information such as a payoff amount, the balance for each tax year owed, up to 24 months of their payment history and key information from their current tax year return as originally filed. Where's My Refund? Taxpayers can easily find the most up-to-date information about their tax refund using the Where's My Refund? tool on IRS.gov and on the official IRS mobile app, IRS2Go. Within 24 hours after the IRS acknowledges receipt of an e-filed return, or four weeks after a paper return is mailed, taxpayers can start checking on the status of their refund. Finding free tax return preparation The Volunteer Income Tax Assistance (VITA) program offers free tax help to individuals who generally make $56,000 or less, persons with disabilities, the elderly and individuals with limited English proficiency who need assistance in preparing their taxes. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those age 60 and older. Eligible taxpayers can find the nearest community-based site staffed by IRS trained and certified volunteers using the VITA/TCE Site Locator. There, they can get their tax returns prepared and filed electronically without charge. Free DIY tax preparation The IRS Free File program, available only through IRS.gov, offers 70% of all taxpayers the choice of 10 brand-name tax preparation software packages to use at no cost. The software does all the work of finding deductions, credits and exemptions for which the taxpayer qualifies. It is free for those who earned $69,000 or less in 2019. Some of the Free File packages also offer free state tax return preparation. Any taxpayer, regardless of income, who is 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. Finding a tax professional The taxpayer is responsible for the accuracy of their tax return and should choose their tax professional carefully. Tax return preparers have differing levels of skills, education and expertise. There is a searchable directory on IRS.gov to help taxpayers find a tax professional in their area. The list can be sorted by credentials and qualifications. Get a tax return transcript A Tax Return Transcript shows most line items from an original tax return, along with any forms and schedules, but not changes made after it was filed. The Get Transcript tool is free and available on IRS.gov. Taxpayers can view, print or download their tax transcripts after the IRS has processed the return. The IRS redesigned tax transcripts to partially mask all personally identifiable information for any person or entity on the 1040-series tax return. All financial entries remain fully visible. Ordering a tax transcript will not speed up a taxpayer's refund or provide an updated refund date. How to make a tax payment Taxpayers should visit the Pay tab on IRS.gov to see their payment options. Most tax software products give taxpayers various payment options, including the option to withdraw the funds from a bank account. These include: IRS Direct Pay offers taxpayers a free, fast, secure and easy way to make an electronic payment from their bank account to the U.S. Treasury. Use an approved payment processor to pay by credit, debit card or digital wallet options for a fee. Make monthly or quarterly tax payments using IRS Direct Pay or through the Electronic Federal Tax Payment System. Pay by cash at a participating retail store. Need more time to file? An extension of time to file a tax return does not grant an extension of time to pay taxes. Taxpayers should estimate and pay any owed taxes by the April 15 deadline to help avoid possible penalties. Taxpayers must file their extension request no later than the regular due date of their return. Individual tax filers, regardless of income, can use IRS Free File to electronically request an automatic tax-filing extension. This gives the taxpayer until October 15 to file a return. To get the extension, the taxpayer must estimate their tax liability and should also pay any amount due. Can't pay a tax bill? Everyone should file their 2019 tax return by the tax filing deadline regardless of whether or not they can pay in full. Taxpayers who can't pay all their taxes have options including: Online Payment Agreement — Most individual taxpayers and many business taxpayers may qualify to use Online Payment Agreement to set up a payment plan. Available payment plan options include a full-pay agreement, a short-term plan of up to 120 days to pay in full, or a long-term monthly payment plan (installment agreement). The amount a taxpayer owes and their tax- filing compliance determines which payment plan options may be available. Taxpayers can setup a plan on IRS.gov/paymentplan in a matter of minutes. Setup fees may apply for some types of plans. Delaying Collection — If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer's financial condition improves. Offer in Compromise (OIC) — Taxpayers who qualify enter into an agreement with the IRS that settles their tax liability for less than the full amount owed. Face-to-face IRS help Nearly every tax issue can be resolved online or by phone, but some taxpayers still need face-to-face help from the IRS. All IRS Taxpayer Assistance Centers (TACs) provide service by appointment. To find the closest IRS TAC, enter a five-digit ZIP Code into the TAC Office Locator tool on IRS.gov. To schedule an appointment, call 844-545-5640. Taxpayers need valid photo identification and a taxpayer identification number, such as a Social Security number, to receive services. Tax Withholding Estimator The Tax Withholding Estimator is a tool on IRS.gov designed to help taxpayers determine how to have the right amount of tax withheld from their paychecks. The Tax Withholding Estimator will help determine if a taxpayer needs to adjust their withholding and submit a new Form W-4 to their employer. The IRS urges employees to perform a Paycheck Checkup using the Tax Withholding Estimator on IRS.gov. A Paycheck Checkup can help taxpayers see if they're having their employer withhold the right amount of tax from their paychecks. Even taxpayers who changed their 2019 withholding should recheck their withholding now. A mid-year withholding change in 2019, for example, may have a different full-year impact in 2020. It's a good idea to check withholding every year. In addition to changes in tax law, life events like marriage, divorce or adopting a child, can have an effect on withholding, too.

https://www.irs.gov/newsroom/odell-to-serve-as-irs-promoter-investigations-coordinator

IR-2020-41, February 24, 2020 WASHINGTON — The Internal Revenue Service announced today that Brendan O'Dell will serve as the agency's new promoter investigations coordinator. O'Dell, currently a senior advisor in the IRS Large Business & International (LB&I) Division, will coordinate promoter activity across the agency and will serve as the point person for Commissioner Chuck Rettig and IRS leadership on promoter investigations. He will serve in a temporary detail assignment as coordinator, and the IRS anticipates it will begin a national search in the near future for a person to permanently fill the position. He will work with the IRS business units, the Office of Professional Responsibility, Criminal Investigation, Chief Counsel and other IRS offices to ensure coordination of ongoing investigations and develop new approaches to identify promoters of aggressive tax arrangements. O'Dell will also assist IRS business units in developing and resolving cases both individually and with a view toward strategic promoter enforcement. "Brendan brings a strong set of skills and experience from inside and outside the IRS, which will be an asset in this important new position," said Sunita Lough, IRS Deputy Commissioner for Services and Enforcement. "He will play a leading role coordinating promoter investigations, an emerging priority concern for the IRS to help improve compliance and ensure fairness in the tax system." O'Dell will report directly to Lough's office, beginning the assignment in early April. In his current position, O'Dell advises the LB&I Commissioner on strategic issues impacting LB&I and supports the Director of LB&I's Pass‐Through Entities Practice Area. Prior to joining LB&I, O'Dell was an attorney‐advisor to the Tax Legislative Counsel in the Office of Tax Policy at the Department of the Treasury from 2016‐2019. In the Office of Tax Policy, O'Dell was responsible for IRS procedure and administration issues and was the lead Treasury attorney responsible for the development of the regulations and other guidance implementing the Centralized Partnership Audit Regime enacted in 2015. Prior to joining the Treasury Department, he spent a number of years in private practice, focusing on tax controversy and tax litigation. O'Dell received his J.D. from Georgetown University Law Center and his B.S. from St. Lawrence University.

https://www.irs.gov/newsroom/newly-revised-irs-publication-explains-tax-benefits-for-members-of-the-military

IR-2020-40, February 24, 2020 WASHINGTON — The Internal Revenue Service has released its newly-revised tax guide, designed to help members of the military understand the many special tax benefits available to them under the law. Publication 3, Armed Forces' Tax Guide, now posted on IRS.gov, is packed with useful filing tips for any member of the military, including reservists and the National Guard, regardless of whether they are stationed in the U.S. or abroad. Among other things, this free publication describes the provision allowing armed forces reservists to deduct their reservist-related travel expenses, regardless of whether they itemize their deductions. It also describes the moving expense deduction still available to active-duty members of the military in connection with a change of station. The publication covers the special benefits available to those serving in a combat zone, including the full or partial exclusion of combat pay and special rules for determining the IRA contribution limit. Also included in this publication are special rules for figuring the Earned Income Tax Credit for low- and moderate-income workers and families and the extended deadlines available for filing returns, paying taxes and claiming refunds. To view or download this free publication, visit IRS.gov/pub3. More resources: FS-2020-03, Tax filing tips for military service members and veterans

https://www.irs.gov/newsroom/irs-updates-guidance-on-business-expense-deductions-for-meals-and-entertainment

IR-2020-39, February 24, 2020 WASHINGTON — The Internal Revenue Service issued proposed regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. It also limited the deduction for expenses related to food and beverages provided by employers to their employees. These proposed regulations address the elimination of the deduction for expenditures related to entertainment, amusement or recreation activities and provide guidance to determine whether an activity is considered to be entertainment. The proposed regulations also address the limitation on the deduction of food and beverage expenses. The proposed regulations affect taxpayers who pay or incur expenses for meals or entertainment. These proposed regulations generally follow Notice 2018-76PDF, issued on October 15, 2018, which provided transitional guidance on the deductibility of expenses for certain business meals. Taxpayers affected by this change and other interested parties may submit comments on the proposed regulations. The IRS will hold a public hearing on these proposed regulations on April 7, 2020.

https://www.irs.gov/newsroom/treasury-irs-issue-guidance-to-farmers-on-uniform-capitalization-rules

IR-2020-38, February 21, 2020 WASHINGTON – The Treasury Department and Internal Revenue Service today issued Revenue Procedure 2020-13PDF providing procedures for farmers who have elected out of certain capitalization rules and want to apply the small business taxpayer exemption in the same taxable year. The Tax Cuts and Jobs Act (TCJA) added a provision exempting small business taxpayers from the capitalization rules under section 263A. A taxpayer, other than a tax shelter, qualifies as a small business taxpayer by satisfying the gross receipts test for the taxable year. To satisfy the gross receipts test, a farming business must have gross receipts of $25 million or less for taxable years beginning in 2018, and $26 million or less for taxable years beginning in 2019.  Unlike the section 263A(d)(3) election, the small business taxpayer exemption does not require the special rules for the use of the Alternative Depreciation System (ADS) or characterization of certain property as section 1245 property. Today's guidance provides procedures for farmers to revoke their election under section 263A(d)(3) and apply the small business taxpayer exemption under section 263A(i) in the same taxable year. It also provides procedures for eligible farmers that want to make an election under section 263A(d)(3) in the same taxable year that they no longer qualify as small business taxpayers. Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

https://www.irs.gov/newsroom/many-farmers-fishermen-face-march-2-tax-deadline-irs-encourages-convenience-of-irs-direct-pay

IR-2020-37, February 20, 2020 WASHINGTON — The Internal Revenue Service reminds farmers and fishermen who chose to forgo making quarterly estimated tax payments that they must file their 2019 Form 1040 along with a payment for all taxes owed by Monday, March 2, 2020. This special rule normally applies to taxpayers whose farming or fishing income was at least two-thirds of their total gross income in either the current or the preceding tax year. Farmers and fishermen can avoid the estimated tax penalty by both filing and paying all taxes due by March 2. Those who chose to make an estimated tax payment, on or before Jan. 15, 2020, can instead wait and file by the regular April 15 deadline. IRS Direct Pay is safe, free The IRS urges farmers and fishermen to take advantage of the speed, convenience and security of IRS Direct Pay to pay their taxes. Anyone can use this free online service to quickly make federal individual income tax payments or quarterly estimated tax payments directly from their checking or savings account. There are no IRS fees and no pre-registration. IRS Direct Pay is available seven days a week and payments can be scheduled up to 30 days in advance. Users receive instant confirmation after they submit a payment or they can opt in to receive email notifications. IRS Direct Pay cannot be used to pay the federal highway use tax, payroll taxes or other business taxes. Anyone wishing to pay these business taxes electronically can enroll in the Electronic Federal Tax Payment System (EFTPS). Like IRS Direct Pay, EFTPS is also a free service. For more information about these and other payment options, visit IRS.gov/payments. Related items Tax Topic 416, Farming and Fishing Income Publication 5034, Need to Make a Tax Payment? (English and Spanish)PDF

https://www.irs.gov/newsroom/irs-seeks-volunteers-to-be-the-voice-of-the-taxpayer-on-the-taxpayer-advocacy-panel

IR-2020-36, February 19, 2020 WASHINGTON — The Internal Revenue Service today announced it is seeking civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP). The TAP is a federal advisory committee that listens to taxpayers, identifies major taxpayer concerns, and makes recommendations for improving IRS service and customer satisfaction. Taxpayers interested in serving on the panel may apply through March 30. "To meet the needs of the taxpaying public, it is critical that the IRS listen to taxpayers to hear what their needs and preferences are," said Bridget T. Roberts, the Acting National Taxpayer Advocate. "The citizen volunteers who serve on the TAP hear from taxpayers and then bring their collective voice and recommendations to the IRS. The TAP reports annually to the Secretary of the Treasury, the IRS Commissioner and the National Taxpayer Advocate. The Office of the Taxpayer Advocate is an independent organization within the IRS that provides support for and oversight of the TAP. To the extent possible, the TAP includes members from all 50 states, the District of Columbia, Puerto Rico and one member representing international taxpayers. Each member is appointed to represent the interests of taxpayers in their geographic location as well as taxpayers overall. For the TAP, "international taxpayers" are broadly defined to include U. S. citizens working, living, or doing business abroad or in U.S. territories. The TAP is seeking members in the following locations: Alabama, Alaska, Arizona, the District of Columbia, Georgia, Idaho, Illinois, Maryland, Nevada, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming. The panel is seeking alternates in the following locations: Alabama, Alaska, Arizona, California, Delaware, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming. Federal advisory committees are required to have a balanced membership in terms of points of view represented. As such, applicants from under-represented groups, such as Native Americans and non-tax professionals, are particularly encouraged to apply. All timely applications, however, will be given consideration. New TAP members will serve a three-year term starting in December 2020. Applicants chosen as alternate members will be considered to fill any vacancies that open in their areas during the next three years. To be a member of the TAP, a person must be a U.S. citizen, be current with his or her federal tax obligations, be able to commit 200 to 300 volunteer hours during the year, and pass a Federal Bureau of Investigation criminal background check. Members cannot be federally registered lobbyists. Current Department of the Treasury or IRS employees cannot serve on the panel, and former Department of the Treasury or IRS employees and former TAP members must have a three-year separation from their service to be considered for appointment. Tax practitioner applicants must be in good standing with the IRS (meaning not currently under suspension or disbarment). For additional information about the TAP or the application process, visit www.improveirs.org or call 888-912-1227 (a toll-free call) and select prompt number five. Callers outside the U.S. may call 214-413-6523 (not a toll-free call) or email the TAP staff at taxpayeradvocacypanel@irs.gov. A video is available with more information about the TAP and how to contribute to this dynamic group of volunteers.

https://www.irs.gov/newsroom/irs-provides-answers-and-a-safe-harbor-on-carbon-capture-credits

IR-2020-35, February 19, 2020                                                       WASHINGTON — The Internal Revenue Service today issued guidance to help businesses understand how legislation passed in 2018 may benefit those claiming carbon capture credits. Today's guidance addresses the definition of "beginning of construction" and provides a safe harbor for partnership allocations of the credit. After the enactment of the Bipartisan Budget Agreement in February 2018, the IRS issued Notice 2019-32PDF requesting comments from taxpayers regarding the changes to the carbon capture credit in the new law. After carefully considering the comments, the IRS is issuing guidance to provide clarity, especially regarding the definition of "beginning of construction." In Notice 2020-12PDF, the IRS provides guidance to help businesses determine when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the carbon capture credit. This notice provides broad guidance in lieu of taxpayers requesting private letter rulings in this area. In Revenue Procedure 2020-12PDF, the IRS creates a safe harbor for the allocation rules for carbon capture partnerships similar to the safe harbors developed for partnerships receiving the wind energy production tax credit and the rehabilitation credit. The safe harbor simplifies the application of carbon capture credit rules to partnerships able to claim the credit. The IRS anticipates issuing further guidance in the near future on issues ranging from secure geological storage to utilization to recapture of the credit for those claiming credits for carbon capture.

https://www.irs.gov/newsroom/irs-increases-visits-to-high-income-taxpayers-who-havent-filed-tax-returns

IR-2020-34, February 19, 2020 WASHINGTON — As part of a larger effort to ensure compliance and fairness, the Internal Revenue Service today announced that it will step up efforts to visit high-income taxpayers who in prior years have failed to timely file one or more of their tax returns. Following the recent and ongoing hiring of additional enforcement personnel, IRS revenue officers across the country will increase face-to-face visits with high-income taxpayers who haven't filed tax returns in 2018 or previous years. These visits are primarily aimed at informing these taxpayers of their tax filing and paying obligations and bringing these taxpayers into compliance. "The IRS is committed to fairness in the tax system, and we want to remind people across all income categories that they need to file their taxes," said Paul Mamo, Director of Collection Operations, Small Business/Self Employed Division. "These visits focusing on high-income taxpayers will be taking place across the country. We want to ensure taxpayers know their options to get right with their taxes and avoid bigger issues later." For the current tax season, the IRS reminds taxpayers that everyone should file their 2019 tax return by the April 15 filing deadline regardless of whether they can pay in full. Six-month filing extensions are also available, although that does not extend the April deadline for paying any taxes owed. "Taxpayers having delinquent filing or payment obligations should consult a competent tax advisor before waiting to be contacted by an IRS revenue officer, Mamo said. "It is always worthwhile to take advantage of various methods of getting back into filing or payment compliance before being personally contacted by the IRS." For the new visits taking place, high-income non-filers taxpayers are those who generally received income in excess of $100,000 during a tax year and did not file a tax return with the IRS. Taxpayers who exercise their best efforts in filing their tax returns and paying or entering into agreements to pay their taxes deserve to know that the IRS is aggressively pursuing others who have failed to satisfy their filing and payment obligations. During the visits, IRS revenue officers will share information and work with the taxpayer to hopefully resolve the tax issue. How to pay There are many payment options for people having trouble paying their tax bill. Payment plans can be set up quickly online. Once returns are filed or an assessment occurs, there are various online payment options available at IRS.gov, including direct pay through a bank account or using a debit or credit card. Other ways to pay include the Electronic Federal Tax Payment System (best option for businesses or large payments; enrollment required), Electronic Funds Withdrawal (using during e-filing), same-day wire (bank fees may apply), check or money order or cash (at a participating retail partner). Those who can't pay immediately may be able to meet their tax obligation in monthly installments by applying for a payment plan (including installment agreements and those who owe less than $50,000), they can find out if they qualify for an offer in compromise (a way to settle their tax debt for less than the full amount), or request that the IRS temporarily delay collection until their financial situation improves. For those who refuse to pay, the IRS has a number of options available under the law, ranging from a series of civil enforcement actions and, when appropriate, pursuing criminal cases against taxpayers. IRS compliance personnel are also now working more closely with IRS criminal investigators on priority compliance issues, including high-income cases. "These compliance visits underscore the importance of people filing their taxes this April, even if they can't pay the full amount of tax due," said Hank Kea, Director of Field Collection Operations, Small Business/Self Employed Division. "Not filing because you don't believe you can pay at the time of filing makes the problem worse, as interest and penalties mount over time. We have many payment options available on IRS.gov to help taxpayers. It's better to work on these issues up front rather than ignoring it and ultimately getting to the point of the IRS taking more serious action. Our continued use of ever-changing technologies, coupled with additional enforcement personnel, would suggest that waiting is not a viable option for delinquent taxpayers." What's a revenue officer's job? Revenue officers are trained IRS civil enforcement employees who work to resolve compliance issues, such as missing returns or taxes owed. Revenue officers conduct interviews to gather financial information and provide taxpayers with the necessary steps to become and remain compliant with the law. When necessary, they will take the appropriate enforcement actions to collect the amount owed, following the law while respecting taxpayer rights and following the law. Don't be confused: Visits are not a scam For this new initiative, these high-income taxpayers have typically received numerous letters from the IRS over an extended period of time, so they generally realize they have a tax issue. Revenue officer visits shouldn't be confused with scams. Here's what to look for: While most IRS revenue officer visits to a taxpayer are unannounced, they will always provide two forms of official credentials, both include a serial number and photo of the IRS employee. Taxpayers have the right to see each of these credentials. A legitimate revenue officer helps taxpayers understand and meet their tax obligations. The officer will explain the liability to the taxpayer, along with the consequences of failing to comply with the law. The IRS employee will not make threats nor demand an unusual form of payment for a nonexistent liability. Visits by revenue officers generally occur after numerous contacts by mail about an existing tax issue; taxpayers should be aware they have a tax issue when these visits occur. If someone has an outstanding federal tax debt, the visiting officer will request payment but will provide a range of options, including paying by check written to the United States Treasury. More information on identifying legitimate IRS representatives and how to report scams can be found at IRS.gov. Related Items: FS-2020-02, IRS increasing focus on taxpayers who have not filed tax return

https://www.irs.gov/newsroom/j5-tax-chiefs-closing-the-net-on-global-tax-evasion

IR-2020-33, February 19, 2020 WASHINGTON — Leaders from five international tax organizations came together in Sydney, Australia, this week to review the J5's progress in their fight against transnational tax crime and set priorities for the year ahead. The Joint Chiefs of Global Tax Enforcement (J5) was formed in 2018 after a call to arms from the OECD Taskforce on Tax Crime and has been working together to gather information, share intelligence and conduct coordinated operations, making significant progress in each country's fight against transnational tax crime. The J5 includes the Australian Taxation Office (ATO), Her Majesty's Revenue and Customs (HMRC) from the UK, Internal Revenue Service (IRS) Criminal Investigations from the US, the Canadian Revenue Agency (CRA) and the Dutch Fiscal Information and Investigation Service (FIOD). Together, each country is better equipped in the fight against those who commit, promote and enable international tax crimes and money laundering. Last month, the group executed a globally coordinated day of action against an international financial institution suspected of facilitating money laundering and tax evasion. Evidence, intelligence and information collection activities such as search warrants, interviews and subpoenas were undertaken in each country and significant information was obtained and shared as a result. Australian Taxation Office (ATO) Deputy Commissioner and Australia's J5 Chief, Will Day said the investigation into this financial institution and its clients is just one example of the work the ATO has been doing with the J5 to investigate Australians who are using offshore arrangements to evade their tax obligations. "Tackling the abuse of correspondent banking arrangements was at the heart of our day of action last month, and we are looking beyond just a single financial institution in Central America. We have fears there are many hundreds of Australians caught up in these arrangements and working with our J5 partner agencies we are continuing to tighten the net on those who are engaging in and enabling transnational tax crime." "The effectiveness and success of the J5 is underpinned by a strong understanding of the common risks and threats we face. By working together to identify and understand these issues, we are able to shape and strengthen our operational, tactical and strategic response to focus on those areas that cause the most impact. We're tackling tax crime together," Day said. The group has shared expertise to identify the most common and impactful mechanisms, enablers and structures that are being exploited to commit transnational tax crime and will be focusing on those criminals who present the greatest threat to the J5 countries in 2020. Simon York, Chief and Director of Her Majesty's Revenue and Customs (HMRC)'s Fraud Investigation Service said that the introduction of automatic exchange of financial information between countries, registers of beneficial ownership, information from worldwide data leaks and improved tax enforcement had made hiding wealth offshore increasingly difficult. "What this work shows is that tax evaders and organized criminals are resorting to ever more complex and obscure methods to hide their illicit gains and wealth. To stay one step ahead we have brought together world leading analysts to unpick their complex trails. Being a partner in the J5 means that we have five times the analytical capability, five times the data and five times the insight at our disposal. Harnessing this, we are now shining a light on evaders across the world, targeting our next wave of enforcement activity and ensuring no big-time tax criminal remains beyond our collective reach." "Seeing the transformation of the J5 from a group of countries with similar challenges and similar goals to a fully integrated organization that is seeing operational successes is very exciting and should be a model for international collaboration at all levels," said Don Fort, Chief of IRS Criminal Investigation. "The information shared, efficiencies gained, and investigations started based on the collaboration within this group have moved the needle by years in terms of results and successes. I expect 2020 will be a game changer for the J5 and criminals will not know what hit them." Fort said. Hans van der Vlist, Chief and General Director Fiscal Information and Investigation Service (FIOD), the Netherlands said "The J5 challenge in the United States at the end of 2019 was important in our fight against crypto criminality. The operational cooperation within the J5 is beginning to pay off and we see that the cooperation also has an impact on local investigations. For instance, last Monday the FIOD had action days in the Netherlands in two crypto investigations." Canada Revenue Agency (CRA) Chief Eric Ferron said "To attack sophisticated criminal tax evasion, we need coordinated action and to be sharing best practices. This is why we value our partnership with the J5; it has allowed us to broaden our reach, better equipping all member countries to combat tax crimes. We look forward to continued collaboration and providing results as they become available." For more information about J5, please visit IRS.gov/j5.

https://www.irs.gov/newsroom/irs-urges-tax-professionals-taxpayers-to-protect-tax-software-accounts-with-multi-factor-authentication

IR-2020-32, February 14, 2020 WASHINGTON — The IRS and its Security Summit partners today called on tax professionals and taxpayers to use the free, multi-factor authentication feature being offered on tax preparation software products. Already, nearly two dozen tax practitioner firms have reported data thefts to the IRS this year. Use of the multi-factor authentication feature is a free and easy way to protect clients and practitioners' offices from data thefts. Tax software providers also offer free multi-factor authentication protections on their Do-It-Yourself products for taxpayers. "The IRS, state tax agencies and the private-sector tax industry have worked together as the Security Summit to make sure the multi-factor authentication feature is available to practitioners and taxpayers alike," said Kenneth Corbin, Commissioner of the IRS Wage and Investment division. "The multi-factor authentication feature is simple to set up and easy to use. Using it may just save you from the financial pain and frustration of identity theft." Multi-factor authentication means returning users must enter their username/password credentials plus another data point that only they know, such as a security code sent to their mobile phone. For example, thieves may steal passwords but will be unable to access the software accounts without the mobile phones to receive the security codes. Multi-factor authentication protections are now commonly offered by financial institutions, email providers and social media platforms to protect online accounts. Users should always opt for multi-factor authentication when it is offered but especially with tax software products because of the sensitive data held in the software or online accounts. The IRS reminded tax professionals to beware of phishing scams that are commonly used by thieves to gain control of their computers. Thieves may claim to be a potential client, a cloud storage provider, a tax software provider or even the IRS in their effort to trick tax professionals to download attachments or open links. These scams often have an urgent message, implying there are issues with the tax professionals' accounts that need immediate attention. The IRS also reminds tax professionals that they can track the number of returns filed with their Electronic Filing Identification Number (EFIN) on a weekly basis. This helps ensure EFINS are not being misused. Simply go to e-Services, access the EFIN application and select EFIN status to see a weekly total of returns filed using the EFIN. If there are excessive returns, contact the IRS immediately. Taxpayers can learn more about identity theft and how to protect themselves at Identity Theft Central on IRS.gov. Tax professionals can learn more about protecting data, signs of theft or reporting data thefts Identity Theft Information for Tax Professionals. Also, Publication 4557, Safeguarding Taxpayer DataPDF, provides a comprehensive overview of steps to protect computer systems and client data.

https://www.irs.gov/newsroom/avoid-the-rush-track-tax-refunds-using-the-wheres-my-refund-tool-at-irsgov

IR-2020-31, February 14, 2020 WASHINGTON — Offering time-saving alternatives to a telephone call, the Internal Revenue Service reminds taxpayers they can get fast answers to their refund questions by using the Where's My Refund? tool available on IRS.gov and through the IRS2Go app. The IRS issues nine out of 10 refunds in less than 21 days, and the fastest way to get a refund is to file electronically and choose direct deposit. The time around Presidents Day is a peak period for telephone calls to the IRS, resulting in longer than normal hold times for callers. The question most frequently asked this time of year is, "Where's my refund?". The IRS reminds taxpayers that IRS customer service representatives can only research a refund's status if it has been 21 days or more since the taxpayer filed electronically or six weeks since they mailed a paper return. Taxpayers can avoid the Presidents Day rush and get a personalized answer by using the Where's My Refund? tool. All that is needed is the taxpayer's Social Security number, tax filing status (single, married, head of household) and exact amount of the tax refund claimed on the return. Alternatively, taxpayers may call 800-829-1954 for the automated phone line, which provides the same information. Within 24 hours of filing a return electronically, the tool can tell taxpayers that their returns have been received. That time extends to four weeks if a paper return is mailed to the IRS, which is another reason to file electronically and choose direct deposit. Once the tax return is processed, Where's My Refund" will tell a taxpayer when their refund is approved and provide a date when they can expect to receive it."Where's My Refund" is updated no more than once every 24 hours, usually overnight, so taxpayers don't need to check the status more often. Refunds held for certain returns As a reminder, by law, the IRS cannot release refunds for Earned Income Tax Credit or Additional Child Tax Credit tax returns before mid-February. Where's My Refund" on IRS.gov and the IRS2Go app will be updated with projected deposit dates for most early Earned Income Tax Credit/Additional Child Tax Credit refund filers by February 22. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they chose direct deposit and there are no other issues with their tax return. Taxpayers should check the Where's My Refund" tool for their personalized refund date. Please note: Ordering a tax transcript will not speed delivery of tax refunds nor does the posting of a tax transcript to a taxpayer's account determine the timing of refund delivery. Calls to request transcripts for this purpose are unnecessary. While the IRS still expects to issue more than nine out of 10 refunds in less than 21 days, it's possible a particular tax return may require additional review and a refund could take longer. Many different factors can affect the timing of a refund. And, remember to take into consideration that many banks do not process payments on weekends or holidays and it can take time for a financial institution to post the refund to a taxpayer's account or to receive it by mail.

https://www.irs.gov/newsroom/irs-avoid-the-rush-after-presidents-day-holiday-use-irs-online-tools-to-get-help

IR-2020-30, February 13, 2020 WASHINGTON — With a surge of tax returns expected the two weeks following the February 17 Presidents Day holiday, the Internal Revenue Service is offering taxpayers several tips and various time-saving resources to get them the help they need quickly and easily. To help avoid this period of high telephone demand, the IRS encourages taxpayers and tax preparers to use online resources available at IRS.gov. And when it comes time to file, taxpayers are encouraged to file electronically and choose direct deposit for faster refunds. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. Here are a few featured tips to avoid the rush. Use IRS.gov to track refunds. The IRS issues more than nine out of 10 refunds in less than 21 days. IRS customer service representatives cannot answer refund questions until it has been 21 days or more since the taxpayer filed electronically, or six weeks since they mailed a paper return. But taxpayers can track their refund anytime by using the "Where's My Refund?" tool on IRS.gov and the IRS2Go app. Taxpayers can also call the IRS refund hotline at 800-829-1954.   Taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit can use the "Where's My Refund?" tool to track refunds too. By law, the IRS cannot release refunds that include EITC or the ACTC before February 15. "Where's My Refund?" on IRS.gov and the IRS2Go app will be updated with projected deposit dates for most early EITC/ACTC refund filers by February 22. IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they chose direct deposit and there are no other issues with their tax return.   Use IRS.gov to find answers to tax questions. IRS offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics, Frequently Asked Questions, and Tax Trails to get faster answers.   Let free tax software or free volunteer assistance do the work. Most taxpayers who want to prepare their own returns can file electronically for free with IRS Free File. Alternatively taxpayers who qualify can get free tax help from trained volunteers at community sites around the country.   Turn to a trusted tax professional. To find more information about choosing a tax return preparer, including understanding the differences in credentials and qualifications, visit www.irs.gov/chooseataxpro.   Use digital payment options if additional tax is owed. Some taxpayers may receive a smaller refund or even owe an unexpected tax bill when they file their 2019 tax return particularly if they didn't do a Paycheck Checkup in 2019. Taxpayers should use the IRS Tax Withholding Estimator to make sure they are withholding enough tax in 2020.   Make an appointment before visiting an IRS Taxpayer Assistance Centers. Anyone who needs face-to-face service should make an appointment before showing up. Most TAC visits can be avoided by using online tools available on IRS.gov.   Call the employer first for that missing Form W-2. Those who have not received a Form W-2, Wage and Tax Statement, from one or more employers should first contact the issuer to inform them of the missing form. Those who do not get a response must still file on time and may need to use Form 4852, Substitute for Form W-2, Wage and Tax StatementPDF, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans and IRA's Insurance ContractsPDF.   Use the IRS Services GuidePDF and the Let Us Help You page on IRS.gov to find additional ways to get help.   Use the Tax Information for Members of the Military page on IRS.gov for details on tax benefits for military members and veterans, filing options and more.

https://www.irs.gov/newsroom/feb-20-irs-webinar-focuses-on-gig-economy

IR-2020-29, February 12, 2020 WASHINGTON — The Internal Revenue Service is holding a free webinar designed to help gig workers, employers, contractors and other businesses understand their tax reporting responsibilities. This free 60-minute webinar will take place on Thursday, February 20 at 2 p.m. Eastern Time. It is open to gig workers, businesses, tax professionals and anyone else interested in the tax rules that affect the gig economy. Tax pros can earn one continuing education credit. Topics to be covered include: What is the gig economy? How does a gig worker know whether they are an employee or self-employed? Business expenses and recordkeeping. Rules for home rentals. Tax payment options. The webinar will feature a live question and answer session and will be closed captioned for viewers who are deaf or hearing impaired. Anyone interested in attending can register online. For more information on the gig economy, visit Understanding the Gig Economy and the Gig Economy Tax Center on IRS.gov. Archived versions of past IRS webinars are available at www.irsvideos.gov

https://www.irs.gov/newsroom/irs-treasury-issue-proposed-regulations-updating-income-tax-withholding-rules

IR-2020-28, February 11, 2020 WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service today issued proposed regulations updating the federal income tax withholding rules to reflect changes made by the Tax Cuts and Jobs Act (TCJA) and other legislation. In general, the proposed regulations, available now in the Federal Register, are designed to accommodate the redesigned Form W-4, Employee's Withholding Certificate, to be used starting in 2020, and the related tables and computational procedures in Publication 15-T, Federal Income Tax Withholding Methods. The proposed regulations and related guidance do not require employees to furnish a new Form W-4 solely because of the redesign of the Form W-4. Employees who have a Form W-4 on file with their employer from years prior to 2020 generally will continue to have their withholding determined based on that form. To assist with computation of income tax withholding, the redesigned Form W-4 no longer uses an employee's marital status and withholding allowances, which were tied to the value of the personal exemption. Due to TCJA changes, employees can no longer claim personal exemptions. Instead, income tax withholding using the redesigned Form W-4 will generally be based on the employee's expected filing status and standard deduction for the year. The Form W-4 is also redesigned to make it easier for employees with more than one job at the same time or married employees who file jointly with their working spouses to withhold the proper amount of tax. In addition, employees can choose to have itemized deductions, the child tax credit, and other tax benefits reflected in their withholding for the year. As in the past, employees can choose to have an employer withhold a flat-dollar extra amount each pay period to cover, for example, income they receive from other sources that is not subject to withholding. Under the proposed regulations, employees now also have the option to request that employers withhold additional tax by reporting income from other sources not subject to withholding on the Form W-4. The proposed regulations permit employees to use the new IRS Tax Withholding Estimator to help them accurately fill out Form W-4. As in the past, taxpayers may use the worksheets in the instructions to Form W-4 and in Publication 505, Tax Withholding and Estimated Tax, to assist them in filling out this form correctly. The proposed regulations also address a variety of other income tax withholding issues. For example, the proposed regulations provide flexibility in how employees who fail to furnish Forms W-4 should be treated. Starting in 2020, employers must treat new employees who fail to furnish a properly completed Form W-4 as single and withhold using the standard deduction and no other adjustments. Before 2020, employers in this situation were required to withhold as if the employee was single and claiming zero allowances. In addition, the proposed regulations provide rules on when employees must furnish a new Form W-4 for changed circumstances, update the regulations for the lock-in letter program, and eliminate the combined income tax and FICA (Social Security and Medicare) tax withholding tables. Treasury and IRS welcome public comment on these proposed regulations. See the proposed regulations for details. Updates on TCJA implementation can be found on the Tax Reform page of IRS.gov.

https://www.irs.gov/newsroom/irs-launches-identity-theft-central

Focuses on needs of taxpayers, tax professionals and businesses IR-2020-27, February 3, 2020 WASHINGTON — The Internal Revenue Service today launched Identity Theft Central, designed to improve online access to information on identity theft and data security protection for taxpayers, tax professionals and businesses. Located on IRS.gov, Identity Theft Central is available 24/7 at IRS.gov/identitytheft. It is a resource on how to report identity theft, how taxpayers can protect themselves against phishing, online scams and more. Improving awareness and outreach are hallmarks of initiatives to combat identity theft coordinated by the IRS, state tax agencies and the nation's tax industry, all working in partnership under the Security Summit banner. Since 2015, the Security Summit partners have made substantial progress in the fight against tax-related identity theft. But thieves are still constantly looking for ways to steal the identities of individuals, tax professionals and businesses in order to file fraudulent tax returns for refunds. The partnership has taken a number of steps to help educate and improve protections for taxpayers, tax professionals and businesses. As part of this effort, the IRS has redesigned the information into a new, streamlined page − Identity Theft Central − to help people get information they need on ID theft, scams and schemes. From this special page, people can get specific information including: Taxpayer Guide to Identity Theft, including what to do if someone becomes a victim of identity theft Identity Theft Information for Tax Professionals, including knowing responsibilities under the law Identity Theft Information for Businesses, including how to recognize the signs of identity theft The page also features videos on key topics that can be used by taxpayers or partner groups. The new page includes a video message from IRS Commissioner Chuck Rettig, warning signs for phishing email scams – a common tactic used for identity theft – and steps for people to protect their computer and phone. Tax professionals and others may want to bookmark Identity Theft Central and check their specific guidance periodically for updates. This is part of an ongoing effort by the IRS to share identity theft-related information with the public. The IRS continues to look for ways to raise awareness and improve education and products related to identity theft for taxpayers and the tax professional community.

https://www.irs.gov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19

IR-2020-62, March 31, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. Does my business qualify to receive the Employee Retention Credit? The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans. Qualifying employers must fall into one of two categories: The employer's business is fully or partially suspended by government order due to COVID-19 during the calendar quarter. The employer's gross receipts are below 50% of the comparable quarter in 2019. Once the employer's gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter. These measures are calculated each calendar quarter. How is the credit calculated? The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care. How do I know which wages qualify? Qualifying wages are based on the average number of a business's employees in 2019. Employers with less than 100 employees: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full time work, the employer still receives the credit. Employers with more than 100 employees: If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter. I am an eligible employer. How do I receive my credit? Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees' wages by the amount of the credit. Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer's employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19. Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200. Where can I find more information on the Employer Retention Credit and other COVID-19 economic relief efforts? Updates on the implementation of this Employee Retention Credit, Frequently Asked Questions on Tax Credits for Required Paid Leave  and other information can be found on the Coronavirus page of IRS.gov.

https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

Updated with new information for seniors, retirees on April 1, 2020. Also see Treasury news release. Check IRS.gov for the latest information: No action needed by most people at this time IR-2020-61, March 30, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment. Who is eligible for the economic impact payment? Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.  Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child. How will the IRS know where to send my payment? The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible. For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed. The IRS does not have my direct deposit information. What can I do? In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail. I am not typically required to file a tax return. Can I still receive my payment? Yes. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return. Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time. I have a tax filing obligation but have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment? Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return. I need to file a tax return. How long are the economic impact payments available? For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020. Where can I get more information? The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available. The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.

https://www.irs.gov/newsroom/longtime-tax-pro-erin-collins-begins-as-new-national-taxpayer-advocate-collins-takes-on-job-early-to-help-with-covid-19-response

IR-2020-60, March 27, 2020 WASHINGTON — The Internal Revenue Service today announced Erin M. Collins will start her term as the National Taxpayer Advocate (NTA) on Monday, March 30, and lead the Taxpayer Advocate Service, an independent organization within the IRS. The Advocate is a critical position inside the IRS, leading the Taxpayer Advocate Service and serving as a voice for taxpayers inside the IRS as well as being a senior adviser to IRS leadership. The NTA also reports to Congress on areas of the tax law that impose significant burdens on taxpayers or the IRS, including recommending potential legislative changes. "Collins is an excellent choice for this key position because she is familiar with tax issues from inside and outside the IRS," said IRS Commissioner Charles Rettig. "The IRS leadership team and I look forward to a meaningful, productive working relationship with Collins and the Taxpayer Advocate Service to help improve our tax system for everyone." "I will be starting my position as the National Taxpayer Advocate earlier than originally planned due to the recent national emergency," Collins said. "I can't imagine a more critical time to lead the Taxpayer Advocate Service and to help the nation's taxpayers during this time." Treasury Secretary Steven Mnuchin appointed Collins on February 27, 2020, to replace Nina Olson, who left the office in July 2019 after serving more than 18 years. "We are extremely thankful to Bridget Roberts for her efforts while serving as Acting Advocate following Nina Olson's many years of service and leadership," Rettig said. Rettig added that he appreciated the work of Roberts and the TAS team, which has been working closely with IRS leadership on numerous issues related to COVID-19, including help for taxpayers in the new People First Initiative. Roberts will resume her permanent role as the Deputy National Taxpayer Advocate. Collins has extensive background in the tax community including 20 years as a Managing Director of KPMG's Tax Controversy Services practice for the Western Area. Before that, she was an attorney in the IRS Office of Chief Counsel for 15 years. Throughout her career, she represented individuals, partnerships and corporate taxpayers on technical and procedural tax matters. Collins has also provided pro bono services to taxpayers to resolve disputes with the IRS. Collins also donated her time to non-profit boards focusing on underserved communities where English is typically not the primary language spoken at home. "Her interests fit in perfectly with the priorities of the Taxpayer Advocate Service, specifically, and the IRS, more generally," Rettig added. TAS helps taxpayers and protects taxpayer rights. TAS has at least one local taxpayer advocate office in every state, the District of Columbia and Puerto Rico. TAS helps taxpayers who need assistance resolving an IRS problem, if their problem is causing financial difficulty, or if they believe an IRS system or procedure isn't working as it should. Taxpayers can call their local advocate; whose number is in their local directory. Visit the TAS website to learn more about TAS and how it can help.

https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program

IR-2020-59, March 25, 2020 WASHINGTON — To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions. "The IRS is taking extraordinary steps to help the people of our country," said IRS Commissioner Chuck Rettig. "In addition to extending tax deadlines and working on new legislation, the IRS is pursuing unprecedented actions to ease the burden on people facing tax issues. During this difficult time, we want people working together, focused on their well-being, helping each other and others less fortunate." "The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes," Rettig added "We are temporarily adjusting our processes to help people and businesses during these uncertain times. We are facing this together, and we want to be part of the solution to improve the lives of all people in our country." These new changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection and limiting certain enforcement actions. The IRS will be temporarily modifying the following activities as soon as possible; the projected start date will be April 1 and the effort will initially run through July 15. During this period, to the maximum extent possible, the IRS will avoid in-person contacts. However, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations. "IRS employees care about our people and our country, and they have a strong desire to help improve this situation," Rettig said. "These new actions reflect just one of many ways our employees are working hard every day to assist the nation. We care, a lot. IRS employees are actively engaged, and they have always delivered for their communities and our country. The People First Initiative is designed to help people take care of themselves and is a key part of our ongoing response to the coronavirus effort." More specifics about the implementation of these provisions will be shared soon. Highlights of the key actions in the IRS People First Initiative include: Existing Installment Agreements –For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Debit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances. New Installment Agreements – The IRS reminds people unable to fully pay their federal taxes that they can resolve outstanding liabilities by entering into a monthly payment agreement with the IRS. See IRS.gov for further information. Offers in Compromise (OIC) – The IRS is taking several steps to assist taxpayers in various stages of the OIC process: Pending OIC applications – The IRS will allow taxpayers until July 15 to provide requested additional information to support a pending OIC. In addition, the IRS will not close any pending OIC request before July 15, 2020, without the taxpayer's consent. OIC Payments – Taxpayers have the option of suspending all payments on accepted OICs until July 15, 2020, although by law interest will continue to accrue on any unpaid balances. Delinquent Return Filings - The IRS will not default an OIC for those taxpayers who are delinquent in filing their tax return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15, 2020. New OIC Applications – The IRS reminds people facing a liability exceeding their net worth that the OIC process is designed to resolve outstanding tax liabilities by providing a "Fresh Start." Further information is available at IRS.gov Non-Filers –The IRS reminds people who have not filed their return for tax years before 2019 that they should file their delinquent returns. More than 1 million households that haven't filed tax returns during the last three years are actually owed refunds; they still have time to claim these refunds. Many should consider contacting a tax professional to consider various available options since the time to receive such refunds is limited by statute. Once delinquent returns have been filed, taxpayers with a tax liability should consider taking the opportunity to resolve any outstanding liabilities by entering into an Installment Agreement or an Offer in Compromise with the IRS to obtain a "Fresh Start." See IRS.gov for further information. Field Collection Activities - Liens and levies (including any seizures of a personal residence) initiated by field revenue officers will be suspended during this period. However, field revenue officers will continue to pursue high-income non-filers and perform other similar activities where warranted. Automated Liens and Levies – New automatic, systemic liens and levies will be suspended during this period. Passport Certifications to the State Department – IRS will suspend new certifications to the Department of State for taxpayers who are "seriously delinquent" during this period. These taxpayers are encouraged to submit a request for an Installment Agreement or, if applicable, an OIC during this period. Certification prevents taxpayers from receiving or renewing passports. Private Debt Collection – New delinquent accounts will not be forwarded by the IRS to private collection agencies to work during this period. Field, Office and Correspondence Audits – During this period, the IRS will generally not start new field, office and correspondence examinations. We will continue to work refund claims where possible, without in-person contact. However, the IRS may start new examinations where deemed necessary to protect the government's interest in preserving the applicable statute of limitations. In-Person Meetings - In-person meetings regarding current field, office and correspondence examinations will be suspended. Even though IRS examiners will not hold in-person meetings, they will continue their examinations remotely, where possible. To facilitate the progress of open examinations, taxpayers are encouraged to respond to any requests for information they already have received - or may receive - on all examination activity during this period if they are able to do so. Unique Situations - Particularly for some corporate and business taxpayers, the IRS understands that there may be instances where the taxpayers desire to begin an examination while people and records are available and respective staffs have capacity. In those instances when it's in the best interest of both parties and appropriate personnel are available, the IRS may initiate activities to move forward with an examination -- understanding that COVID-19 developments could later reduce activities for an agreed period. General Requests for Information - In addition to compliance activities and examinations, the IRS encourages taxpayers to respond to any other IRS correspondence requesting additional information during this time if possible.   Earned Income Tax Credit and Wage Verification Reviews – Taxpayers have until July 15, 2020, to respond to the IRS to verify that they qualify for the Earned Income Tax Credit or to verify their income. These taxpayers are encouraged to exercise their best efforts to obtain and submit all requested information, and if unable to do so, please reach out to the IRS indicating the reason such information is not available. Until July 15, 2020, the IRS will not deny these credits for a failure to provide requested information. Independent Office of Appeals – Appeals employees will continue to work their cases. Although Appeals is not currently holding in-person conferences with taxpayers, conferences may be held over the telephone or by videoconference. Taxpayers are encouraged to promptly respond to any outstanding requests for information for all cases in the Independent Office of Appeals. Statute of Limitations - The IRS will continue to take steps where necessary to protect all applicable statutes of limitations. In instances where statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending such statutes. Otherwise, the IRS will issue Notices of Deficiency and pursue other similar actions to protect the interests of the government in preserving such statutes. Where a statutory period is not set to expire during 2020, the IRS is unlikely to pursue the foregoing actions until at least July 15, 2020. Practitioner Priority Service – Practitioners are reminded that, depending on staffing levels and allocations going forward, there may be more significant wait times for the PPS. The IRS will continue to monitor this as situations develop. "The IRS will continue to review and, where appropriate, modify or expand the People First Initiative as we continue reviewing our programs and receive feedback from others," Rettig said. "We are committed to helping people get through this period, and our employees will remain focused on these and other helpful efforts in the days and weeks ahead. I ask for your personal support, your understanding – and your patience – as we navigate our way forward together. Stay safe and take care of your families, friends and others."

https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed

IR-2020-58, March 21, 2020 WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004. The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days. "Even with the filing deadline extended, we urge taxpayers who are owed refunds to file as soon as possible and file electronically," said IRS Commissioner Chuck Rettig. "Filing electronically with direct deposit is the quickest way to get refunds. Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds. As a federal agency vital to the overall operations of our country, we ask for your personal support, your understanding – and your patience. I'm incredibly proud of our employees as we navigate through numerous different challenges in this very rapidly changing environment." The IRS will continue to monitor issues related to the COVID-19 virus, and updated information will be posted on a special coronavirus page on IRS.gov. This announcement comes following the President's emergency declaration last week pursuant to the Stafford Act. The Stafford Act is a federal law designed to bring an orderly and systematic means of federal natural disaster and emergency assistance for state and local governments in carrying out their responsibilities to aid citizens. It was enacted in 1988. Treasury and IRS will issue additional guidance as needed and continue working with Congress, on a bipartisan basis, on legislation to provide further relief to the American people.

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

IR-2020-57, March 20, 2020 WASHINGTON — Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020. The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus. Key Takeaways Paid Sick Leave for Workers For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable. Complete Coverage Employers receive 100% reimbursement for paid leave pursuant to the Act. Health insurance costs are also included in the credit. Employers face no payroll tax liability. Self-employed individuals receive an equivalent credit. Fast Funds Reimbursement will be quick and easy to obtain. An immediate dollar-for-dollar tax offset against payroll taxes will be provided Where a refund is owed, the IRS will send the refund as quickly as possible. Small Business Protection Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened. Easing Compliance Requirements subject to 30-day non-enforcement period for good faith compliance efforts. To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week. Background The Act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. Paid Leave The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee's pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee's pay. An employee who is unable to work due to a need to care for a child whose school is closed, or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee's pay. Paid Sick Leave Credit For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. For an employee who is caring for someone with Coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. Child Care Leave Credit In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. Prompt Payment for the Cost of Providing Leave When employers pay their employees, they are required to withhold from their employees' paychecks federal income taxes and the employees' share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS. Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS. The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees. If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week. Examples If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date. If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000. Equivalent child care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments. Small Business Exemption Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer's business as a going concern. Labor will provide emergency guidance and rulemaking to clearly articulate this standard. Non-Enforcement Period Labor will be issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the Act. Under this policy, Labor will not bring an enforcement action against any employer for violations of the Act so long as the employer has acted reasonably and in good faith to comply with the Act. Labor will instead focus on compliance assistance during the 30-day period. For More Information For more information about these credits and other relief, visit Coronavirus Tax Relief on IRS.gov. Information regarding the process to receive an advance payment of the credit will be posted next week.        

https://www.irs.gov/newsroom/tax-time-guide-guard-personal-financial-and-tax-information-year-round

IR-2020-56, March 13, 2020 WASHINGTON — The Internal Revenue Service today reminded taxpayers to remain vigilant with their personal information by securing computers and mobile phones. Proper cybersecurity protection and scam recognition can reduce the threat of identity theft inside and outside the tax system. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax. The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. People should be alert to scammers posing as the IRS to steal personal information. There are ways to know if it's really the IRS calling or knocking on someone's door. The IRS also works with the Security Summit, a partnership with state tax agencies and the private-sector tax industry, to help protect taxpayer information and defend against identity theft. Taxpayers and tax professionals can take steps to help in this effort. Below are a few tips to help minimize exposure to fraud and identity theft: Protect personal information. Treat personal information like cash – don't hand it out to just anyone. Social Security numbers, credit card numbers, bank and even utility account numbers can be used to help steal a person's money or open new accounts.   Avoid phishing scams. The easiest way for criminals to steal sensitive data is simply to ask for it. IRS urges people to learn to recognize phishing emails, calls or texts that pose as familiar organizations such as banks, credit card companies or even the IRS. Keep sensitive data safe and:   Be aware that an unsolicited email with a request to download an attachment or click on a URL could appear to come from someone that you know like a friend, work colleague or tax professional if their email has been spoofed or compromised.   Don't assume internet advertisements, pop-up ads or emails are from reputable companies. If an ad or offer looks too good to be true, take a moment to check out the company behind it.   Never download "security" software from a pop-up ad. A pervasive ploy is a pop-up ad that indicates it has detected a virus on the computer. Don't fall for it. The download most likely will install some type of malware. Reputable security software companies do not advertise in this manner.   Safeguard personal data. Provide a Social Security number, for example, only when necessary. Only offer personal information or conduct financial transactions on sites that have been verified as reputable, encrypted websites.   Use strong passwords. The longer the password, the tougher it is to crack. Use at least 10 characters; 12 is ideal for most home users. Mix letters, numbers and special characters. Try to be unpredictable – don't use names, birthdates or common words. Don't use the same password for many accounts and avoid sharing them. Keep passwords in a secure place or use password management software. Set password and encryption protections for wireless networks. If a home or business Wi-Fi is unsecured, it allows any computer within range to access the wireless network and potentially steal information from connected devices. Whenever it is an option for a password-protected account, users also should opt for a multi-factor authentication process.   Use security software. An anti-virus program should provide protection from viruses, Trojans, spyware and adware. The IRS urges people, especially tax professionals, to use an anti-virus program and always keep it up to date. Set security software to update automatically so it can be updated as threats emerge. Educate children and those with less online experience about the threats of opening suspicious web pages, emails or documents.   Back up files. No system is completely secure. Copy important files, including federal and state tax returns, onto removable discs or back-up drives and cloud storage. Store discs, drives and any paper copies in secure, locked locations.   ID Theft Central. New on IRS.gov. Designed to improve online access to information on identity theft. Serves taxpayers, tax professionals and businesses. 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.

https://www.irs.gov/newsroom/irs-announces-waivers-for-offer-in-compromise-applications

IR-2020-55, March 12, 2020 WASHINGTON — The Internal Revenue Service today announced the release of final regulations that increase the Offer in Compromise application fee to $205 and provide an additional way for the IRS to waive the Offer in Compromise application fee for low-income taxpayers, based on their adjusted gross income (AGI). An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount owed. Generally, it may be an option for taxpayers who can't pay their full tax debt, or if doing so would create a financial hardship. The IRS considers the taxpayer's overall financial circumstances when considering an OIC in an effort to administratively resolve the amount due. Applicants who meet the definition of a "low-income taxpayer" receive a waiver of their OIC application fee. A new provision from the Taxpayer First Act provides an additional way for low-income taxpayers to qualify for a waiver of the OIC application fee. Normally, the IRS determines if taxpayers fall at or below 250% of the poverty level by looking at their household's size and gross monthly income. The new law provides an additional standard for the IRS to use in making the calculation. The IRS will now also look at a taxpayer's AGI from the most recent tax return to determine whether it is at or below 250% of the poverty level. Taxpayers with an outstanding tax debt are encouraged to timely respond to IRS notices and should not ignore correspondence received from the IRS. Taxpayers with an outstanding tax debt should contact the IRS at the phone number set forth in the notice, online or by visiting a local Taxpayer Assistance Center (TAC) – a listing of local TACs is available at IRS.gov. Taxpayers may also seek assistance from the Taxpayer Advocate Service (TAS). Contact information for TAS is available online, including a listing of local TAS offices. For more information, see Offer in Compromise on IRS.gov.

https://www.irs.gov/newsroom/irs-high-deductible-health-plans-can-cover-coronavirus-costs

IR-2020-54, March 11, 2020 WASHINGTON — The Internal Revenue Service today advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA). In Notice 2020-15PDF, posted today on IRS.gov, the IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP. Today's notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan.

https://www.irs.gov/newsroom/tax-time-guide-tax-withholding-estimator-helps-retirees-workers-and-self-employed-calculate-taxes-fill-out-new-form-w-4

IR-2020-53, March 10, 2020 WASHINGTON — The Internal Revenue Service is encouraging taxpayers to take control of the size of their refund using the Tax Withholding Estimator on IRS.gov. The estimator has a "slider" feature to let users to choose the refund they want from a range of amounts based on the information they enter. The feature helps taxpayers set their withholding to get a large refund or more money in their paychecks throughout the year. This news release is part of a series called the Tax Time Guide with information to help taxpayers file an accurate tax return. Withholding Starting in 2020, income tax withholding is generally based on the worker's expected filing status and standard deduction. Employers generally use withholding tables to determine how much tax to withhold and send to the IRS. Those who are not subject to withholding should make quarterly estimated tax payments during the year. The improved and mobile-friendly estimator offers retirees, employees and self-employed individuals a user-friendly way to check their withholding. It also has features specially tailored to the unique needs of those receiving pension payments and Social Security benefits. People with more than one job and families where both spouses work may need to adjust their withholding to avoid having too little withheld. Not paying enough during the year, either through withholding or by making timely estimated tax payments, may mean paying a penalty. When to check Taxpayers should check their withholding annually. They should also check when life changes occur, such as marriage, childbirth, adoption and when buying a home. The IRS recommends anyone who changed their withholding late in 2019 should do a Paycheck Checkup. Taxpayers who receive a tax bill after they file should use the estimator to ensure the right amount is being withheld for 2020. Taxpayers can use the results from the IRS Withholding Calculator to determine if they should complete a new Form W-4, Employee's Withholding Certificate. Submitting a new Form W-4 Employees submit a completed Form W-4 to their employer, not the IRS. Beginning in 2020, all new employees must use the redesigned form. Employees who submitted Form W-4 in 2019 or before are not required to submit a new form. However, the new form must be used to adjust their withholding. New employees who fail to submit a Form W-4 will be treated as a single filer with no other adjustments. This means that a single filer's standard deduction with no other entries will be considered in determining withholding. The new Form W-4 is simpler than the old form and increases the transparency and accuracy of the withholding system. The new design replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees. Self-employed Those who have self-employment income will generally owe both income tax and self-employment tax. Form W-4 is primarily to be used by employees who are not subject to self-employment tax and does not compute self-employment tax. See Form 1040-ES, Estimated Tax for Individuals and IRS Publication 505, Tax Withholding and Estimated Tax. For more information see the Tax Withholding Estimator FAQs and FAQs on the 2020 Form W-4. Whether at home, at work or on the go, taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov.

https://www.irs.gov/newsroom/get-up-to-date-information-including-the-annual-irs-dirty-dozen-with-irs-e-news-subscriptions

IR-2020-52, March 9, 2020 WASHINGTON — The Internal Revenue Service today reminded taxpayers, businesses, tax professionals and others to take advantage of a wide variety of free IRS email subscription services that feature things like the annual "Dirty Dozen" list of tax scams, which is coming this month. The e-News Subscription service issues tax information by email for many different audiences providing tips, tools and helpful materials of interest to taxpayers and organizations. Among others, the IRS offers subscription services tailored to tax exempt and government entities, small and large businesses as well as individuals. The service is easy to use; sign up for by visiting IRS e-News Subscriptions. The IRS currently has 20 registration-based e-News options, including: IRS Tax Tips – These brief, concise tips in plain language that cover a wide-range of topics of general interest to taxpayers. They include the latest on tax scams and schemes, tax reform, tax deductions, filing extensions and amending a return. IRS Tax Tips are distributed daily during tax season and periodically throughout the year.   IRS Newswire − Subscribers to IRS Newswire receive news releases the day they are issued. These cover a wide range of tax administration issues ranging from breaking news to details related to legal guidance.   IRS News in Spanish (Noticias del IRS en Español) − Readers get IRS news releases, tax tips and updates in Spanish as they are released. Subscribe at Noticias del IRS en Español.   e-News for Tax Professionals − Includes a weekly roundup of news releases and legal guidance specifically designed for the tax professional community. Subscribing to e-News for Tax Professionals gets tax pros a weekly summary, typically delivered on Friday afternoons.   IRS Outreach Connection − This newest IRS subscription offering delivers up-to-date materials for tax professionals and partner groups inside and outside the tax community. The material for Outreach Connection is specifically designed so subscribers can share the material with their clients or members through email, social media, internal newsletters, e-mails or external websites. Subscribe by visiting IRS.gov/outreachconnect. For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions. The resources will help taxpayers and organizations keep up with the latest information during and after filing season.

https://www.irs.gov/newsroom/irs-extends-april-15-and-other-upcoming-deadlines-provides-other-tax-relief-for-victims-of-tennessee-tornadoes

IR-2020-51, March 6, 2020 WASHINGTON — Victims of this week's tornadoes and severe storms in parts of Tennessee, including Nashville, will have until July 15, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Davidson, Putnam and Wilson counties, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment 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 March 3. As a result, affected individuals and businesses will have until July 15, 2020, to file returns and pay any taxes that were originally due during this period. This includes 2019 individual and business returns normally due on April 15, as well as various 2019 business returns due on March 15. Among other things, this also means that affected taxpayers will have until July 15 to make 2019 IRA contributions. The July 15 deadline also applies to quarterly estimated income tax payments due on April 15 and June 15 and the quarterly payroll and excise tax returns normally due on April 30. It also applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2019 return due on May 15. In addition, penalties on payroll and excise tax deposits due on or after March 3 and before March 18 will be abated as long as the deposits are made by March 18. 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 2020 return normally filed next year), or the return for the prior year. This means that taxpayers can, if they choose, claim these losses on the 2019 return they are filling out this tax season. Be sure to write the FEMA declaration number – 4476 − 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/two-updated-ira-publications-other-online-resources-can-help-anyone-planning-for-retirement

IR-2020-50, March 6, 2020 WASHINGTON — The Internal Revenue Service has updated two comprehensive publications designed to help anyone making IRA contributions or receiving IRA distributions for tax year 2019 or considering making retirement donations before April 15, 2020. The 2019 editions of Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) and Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), are both now available on IRS.gov. Both publications address the unique features of both Roth and traditional IRAs. Most people who work can make contributions to a traditional or Roth IRA. Contributions to a traditional IRA are usually tax deductible and distributions are generally taxable. On the other hand, contributions to a Roth IRA are not tax deductible, but qualified distributions are tax-free. Taxpayers can make contributions until April 15, 2020, and count them on their 2019 tax returns. Publication 590-A explains the rules for contributing to an IRA, with examples and worksheets illustrating how to correctly figure the contribution and deduction limits. Other topics covered include rollovers, trustee-to-trustee transfers and what to do if too much is contributed to an IRA. Publication 590-B explains how to correctly figure required minimum distributions (RMDs) from traditional IRAs. In 2019, the RMD rules generally apply to anyone born before July 1, 1949. Those who turned 70½ during 2019 can choose to wait until April 1, 2020, to take their first RMD. Examples and worksheets help illustrate the calculation. There is also a discussion of qualified charitable distributions (QCDs), including how to count them toward an RMD. For those who take money out of an IRA before reaching 59½, the publication also covers situations where the 10% tax on early distributions does and does not apply. For those planning ahead for 2020 and future years, legislation enacted in December made several changes affecting IRAs and other retirement plans. One change generally allows those born after June 30, 1949, to wait until they turn 72 to begin taking distributions from their traditional IRAs. Another allows those 70½ or older to make contributions to traditional IRAs. For details, visit IRS.gov/rmd or see fact sheet FS-2020-4, also available on IRS.gov.

https://www.irs.gov/newsroom/irs-criminal-investigation-veteran-selected-as-new-fraud-enforcement-director

IR-2020-49, March 5, 2020 WASHINGTON — As part of a continuing focus on compliance issues, the Internal Revenue Service announced today that Damon Rowe will serve as the agency's director of the newly created Fraud Enforcement Office beginning in mid-March. Rowe and the new office will reside in the IRS Small Business/Self Employed Division and work on agency-wide compliance issues. He will serve as the principal advisor and consultant to IRS Division Commissioners and Deputy Commissioners on all issues involving Fraud Enforcement strategic plans, programs and policy. A veteran of IRS Criminal Investigation, he will also provide agencywide executive leadership and direction in the design, development and delivery of major activities within the Fraud Enforcement office in support of IRS efforts to detect and deter fraud while strengthening the National Fraud Program. In addition to leveraging existing law enforcement relationships, Rowe will have a continued focus on unscrupulous activities of taxpayers and professional enablers that undermine our Federal Tax Laws in a manner that is consistent and fair to the American public. With additional training, resources and applied analytics, SB/SE will thwart emerging threats as it relates to fraudulent filings and related activities. "Our compliance and enforcement functions are working together to improve tax administration for everyone," said IRS Commissioner Chuck Rettig. "Every compliance employee has a commitment for a general awareness of tax fraud related issues, which is a priority for the agency. Damon's exceptional leadership skills, background and expertise will strongly support agency determinations regarding the existence of fraud, and, just as important, determinations where a fraud referral should not occur. We are proud to have Damon lead the coordination of our fraud enforcement efforts." Eric Hylton, SBSE Commissioner, noted that Rowe will continue to strengthen the internal compliance relationships in the IRS between CI agents and civil-side revenue agents and revenue officers as well as work with external partners. In the past two years, revenue officers have been the single largest supplier of criminal fraud and deterrence referrals and account for most accepted case referrals. "Damon's selection to this new office will help strengthen our compliance work and is yet an additional opportunity to engineer partnerships with the tax professionals as well as strengthen our capacity and resolve across all business units with coordinated enforcement efforts," Hylton said. "Fraud Policy will be getting more attention this year to ensure it has the staff and resources it needs to expand detection and deterrence efforts of our campus and field employees across the IRS." As the agency expands its enforcement presence, Rowe will also work with Brendan O'Dell, the new Promoter Investigation Coordinator, to pursue potential fraud referrals regarding abusive promoters. Prior to this position, Rowe served as Executive Director of International Operations for Criminal Investigation (CI) where he was responsible for ensuring international law enforcement cooperation between foreign governments and CI field offices. Previously, he served as Special Agent in Charge of the Los Angeles and Dallas Field offices and Assistant Special Agent in Charge for the New Orleans Field Office. Rowe began his IRS career as a special agent in 1998. He holds a Bachelor of Accounting degree from the University of Houston, a J.D. from Texas Southern University, and a Master of Legal Letters in Taxation from Southern Methodist University School of Law. Rowe is a member of the Texas Bar.

https://www.irs.gov/newsroom/tax-time-guide-payment-options-available-for-those-who-owe

IR-2020-48, March 5, 2020 WASHINGTON — The Internal Revenue Service today reminded taxpayers that if they need to make a tax payment or owe and can't pay, the IRS offers several options. This news release is part of a series of IRS tips called the Tax Time Guide, designed to help taxpayers file an accurate tax return. This year's tax-filing deadline is April 15. Taxpayers should know before they owe. The IRS encourages all taxpayers to check their withholding with the IRS Tax Withholding Estimator. Taxpayers who do end up owing taxes this year can choose among the following quick electronic payment options: Electronic Funds Withdrawal (EFW). This option allows taxpayers to file and pay electronically from their bank account when using tax preparation software or a tax professional. EFW is free and only available when electronically filing a tax return.   Direct Pay. Direct Pay is free and allows taxpayers to securely pay their federal taxes directly from their checking or savings account without any fees or preregistration. Taxpayers can schedule payments up to 30 days in advance. After submitting a payment through Direct Pay, taxpayers will receive immediate confirmation. They can opt-in to receive email notifications about their payments each time they use Direct Pay.   Credit, Debit Card or digital wallet. Pay online, by phone or with a mobile device through any of the authorized payment processors. The processor charges a fee. The IRS doesn't receive any fees for these payments. Go to IRS.gov/payments for authorized card processors and phone numbers.   IRS2Go. The IRS2Go mobile app is free and offers taxpayers the option to make a payment with Direct Pay for free, or by debit, credit card or digital wallet through an approved payment processor for a fee. Download IRS2Go free from Google Play, the Apple App Store or the Amazon App Store.   Electronic Federal Tax Payment System. This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll and for more information, call 800-555-4477, or visit eftps.gov. Both business and individual taxpayers can opt-in to receive email notifications about their payments.   Cash. Taxpayers paying with cash can use the PayNearMe option. Payments are limited to $1,000 per day, and a $3.99 fee applies to each payment. The IRS urges taxpayers choosing this option to start early because PayNearMe involves a four-step process. Initiating a payment well ahead of the tax deadline will help taxpayers avoid interest and penalty charges. The IRS offers this option in cooperation with OfficialPayments and participating retail stores. Details, including answers to frequently asked questions, are at IRS.gov/paywithcash. Taxpayers must file their 2019 tax returns by April 15, 2020, or request a six-month extension; however, any taxes owed are still due on April 15. If they can't pay, taxpayers should still file an extension to avoid the higher penalties for not filing at all. Extensions can be requested using Free File, by filing Form 4868 or by paying all or part of the income tax due and indicating that the payment is for an extension or Form 4868 using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a credit or debit card. Taxpayers paying electronically do not have to file a separate extension form and they receive a confirmation number for their records. Taxpayers who choose to pay by check or money order should make the payment out to the "United States Treasury." To help ensure that the payment gets credited promptly, also enclose a Form 1040-VPDF payment voucher. Also, print on the front of the check or money order: "2019 Form 1040"; name; address; daytime phone number; and Social Security number. Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review their payment history; and view key tax return information for the current year as originally filed. Owe tax? IRS has a plan − Taxpayers who owe but cannot pay the balance in full have options and should not delay in resolving their balance. Interest and penalties grow the longer the debt is owed. Often, these taxpayers qualify for one of several relief programs. Most individual taxpayers and many business taxpayers may qualify to use Online Payment Agreement to set up a payment plan. Available payment plan options include a full-pay agreement, a short-term plan of up to 120 days to pay in full, or a long-term monthly payment plan (installment agreement). The amount owed and tax filing compliance determines which payment plan options may be available Taxpayers can setup a plan on IRS.gov/paymentplan in a matter of minutes. There is no paperwork, there is no need to call, write or visit the IRS. Setup fees may apply for some types of plans. Offer in Compromise − Some taxpayers may qualify for an Offer in Compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. To help determine eligibility, individual taxpayers may use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov. Taxpayers can find answers to tax questions, tax forms and instructions and easy-to-use tools online at IRS.gov 24 hours a day, seven days a week. No appointments needed and no waiting on hold.

https://www.irs.gov/newsroom/tax-time-guide-check-out-these-free-tax-return-preparation-options

IRS YouTube Videos: Free Help Preparing Your Tax Return - English | Spanish | ASL (obsolete) Do-It-Yourself Free Tax Preparation - English (obsolete) | Spanish (obsolete) | ASL IR-2020-47, March 3, 2020 WASHINGTON — The Internal Revenue Service reminds taxpayers that free tax help is available in-person at nearly 11,000 volunteer sites nationwide and online through IRS Free File. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax. Get free tax help from volunteers During the 2019 filing season, volunteers helped prepare over 3.5 million returns at thousands of tax sites nationwide. The Volunteer Income Tax Assistance (VITA) program offers free tax help to individuals who generally make $56,000 or less, persons with disabilities, the elderly and individuals with limited English proficiency who need assistance in preparing their taxes. The Tax Counseling for the Elderly (TCE) program also offers free tax help to taxpayers, particularly those age 60 and older. IRS-certified VITA and TCE volunteers are trained to help taxpayers claim the tax credits they are entitled to such as the Earned Income Tax Credit and the Child Tax Credit and Credit for Other Dependents. The Earned Income Tax Credit (EITC) is a significant tax credit for workers who earned $55,952 or less in 2019. The IRS estimates four of five eligible taxpayers claim and get the EITC. Nationwide in 2019, 25 million taxpayers received over $61 billion in EITC. The average EITC amount received was $2,504. The EITC is as much as $6,557 for a family with children or up to $529 for taxpayers who do not have a qualifying child. The VITA and TCE programs can help answer many EITC questions and help taxpayers claim the credit if they qualify. Taxpayers may also use the IRS.gov EITC Assistant to help them determine their eligibility. To find the nearest VITA or TCE site, taxpayers can use the VITA and TCE locator tool available on IRS.gov, download the IRS mobile app IRS2Go or call 800-906-9887. Help in other languages – Chinese, Cantonese, Hindi, Korean, Mandarin, Russian, Spanish, Tagalog and Vietnamese – is also available at select locations across the country. The locator tool indicates where these services are offered. For assistance preparing a tax return at a VITA or TCE site, taxpayers must bring all required documents and information including: Proof of identification (photo ID) for taxpayer and spouse Social Security cards for the taxpayer, spouse and dependents An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for those who do not have a Social Security number (SSN). Proof of foreign status, if applying for an ITIN Birth dates for the taxpayer, spouse and dependents Wage and earning statements (Form W-2, W-2G, 1099-R, 1099-Misc) from all employers and other payers Interest and dividend statements from banks (Forms 1099) A copy of last year's federal and state tax returns, if available Proof of bank account routing and account numbers for direct deposit such as a blank check To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required forms Total amount paid for daycare services and the daycare provider's tax identifying number such as their SSN or business Employer Identification Number Forms 1095-A Health Insurance Marketplace Statements to reconcile advance payments of Premium Tax Credit Copies of unmasked income transcripts from IRS and state, if applicable Use IRS Free File online Taxpayers that want to prepare and file their tax returns electronically can use IRS Free File. IRS Free File offers brand-name tax software for taxpayers who earned $69,000 or less in 2019 so they can prepare and file their tax federal returns free. Taxpayers who earned more can use Free Fillable Forms, the electronic version of IRS paper forms. IRS Free File is only available through the IRS website by visiting IRS.gov/freefile. IRS Free File also allows the taxpayer to get an automatic extension of time to file. Taxpayers who owe taxes can pay online by phone or with a mobile device and the IRS2Goapp.  When filing electronically they can pay with electronic funds withdrawal for free. Another option is to pay with their bank account using Direct Pay. All payment options are available on IRS.gov/payments. Filing electronically and using direct deposit is the fastest and most accurate way to file. The IRS issues nine out of 10 refunds in 21 days or less. Taxpayers filing paper returns can choose direct deposit, but paper returns take longer to process. Military service members and some veterans have more choices for free tax help Military OneSource is a program funded by the Department of Defense that provides a range of free resources for military members, veterans and their families. MilTax, Military OneSource's tax service, provides online software for eligible individuals to electronically file a federal and up to three state returns for free. More information about OneSource is available at MilitaryOneSource.mil or by calling 800-342-9647. Get more help Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov. No appointment required and no waiting on hold.

https://www.irs.gov/newsroom/economic-impact-payments-continue-to-be-sent-check-irsgov-for-answers-to-common-questions

IR-2020-85, April 30, 2020 WASHINGTON — As Economic Impact Payments continue to be successfully delivered, the Internal Revenue Service today reminds taxpayers that IRS.gov includes answers to many common questions, including help to use two recently launched Economic Impact Payment tools. The IRS is regularly updating the Economic Impact Payment and the Get My Payment tool frequently asked questions pages on IRS.gov as more information becomes available. Get My Payment shows the projected date when a deposit has been scheduled. Information is updated once daily, usually overnight, so people only need to enter information once a day. Those who did not use direct deposit on their 2018 or 2019 tax return can use the tool to input information to receive the payment by direct deposit into their bank account, so that they can get their money faster. The Non-Filers Enter Payment Info tool is helping millions of taxpayers successfully submit basic information to receive Economic Impact Payments quickly to their bank accounts. This tool is designed only for people who are not required to submit a tax return. It is available in English through Free File Fillable Forms and in Spanish through ezTaxReturn.  Frequently asked questions continually updated on IRS.gov Taxpayers should check the FAQs often for the latest additions; many common questions are answered on IRS.gov already, and more are being developed. Here are answers to some of the top questions people are asking. Get My Payment says that my Economic Impact Payment was sent to an account I don't recognize. Why is that, and how do I get my payment? When some taxpayers file their tax return, they may choose an option available from their tax preparer or software provider to help them pay their fees, get their refund more immediately or even load the refund onto a direct debit card. This group of different products is referred to as refund settlement products. In these situations, taxpayers may: Use a banking product to help them complete the tax filing transaction, sometimes referred to as a Refund Anticipation Loan (RAL) or a Refund Anticipation Check (RAC). Choose to have their tax refund loaded onto a debit card provided by a variety of groups in the tax and financial communities.  When you filed your tax return, if you chose a refund settlement product for direct deposit purposes, you may have received a prepaid debit card. In some cases, your Economic Impact Payment may have been directed to the bank account associated with the refund settlement product or prepaid debit card. If the refund settlement product or the associated account is closed or no longer active, the bank is required to reject the deposit and return it to the IRS. Once the returned payment to the IRS is processed, the "Get My Payment" app will be updated. Once the returned payment is processed by the IRS, the payment will automatically be mailed to the address on the 2019 or 2018 tax return, or the address on file with the U.S. Postal Service – whichever is more current. The status in Get My Payment will update accordingly. Timing of this process depends on several variables, including when and how the payments are rejected and returned to the IRS, when "Get My Payment" updates, and when taxpayers check the tool. The IRS also noted that it has resolved a reporting error that some taxpayers may have experienced, which inaccurately indicated rejected payments were being sent back to the same taxpayer account a second time. They are actually being mailed to the taxpayers. The IRS has quickly taken steps to correct this reporting error. "Get My Payment" was updated starting Tuesday, April 21 to reflect that the taxpayer's payment has actually been mailed, and not rerouted to a closed bank account. Why am I receiving an error message when entering my personal information or tax information? To ensure the information is entered correctly, please use the help tips provided when entering the information requested to verify your identity. If the information you enter does not match our records, you will receive an error message. Check the information requested to ensure you entered it accurately. You may want to check your most recent tax return or consider if there is a different way to enter your street address (for example, 123 N Main St vs 123 North Main St). You may also verify how your address is formatted with the US Postal Service (USPS) by entering your address in the USPS ZIP Lookup tool, and then enter your address into Get My Payment exactly as it appears on file with USPS. If you receive an error when entering your Adjusted Gross Income (AGI), refund amount, or amount you owed, make sure you are entering the numbers exactly as they appear on your Form 1040 or tax transcript. If the numbers from your 2019 tax return are not accepted, try the numbers from your 2018 tax return instead. If the information you enter does not match our records three times within 24 hours, you will be locked out of Get My Payment for 24 hours for security reasons. You will be able to access the application again after 24 hours. There is no need to contact the IRS. I think the amount of my Economic Impact Payment is incorrect. What can I do? If you did not receive the full amount to which you believe you are entitled, you will be able to claim the additional amount when you file your 2020 tax return. This is particularly important for individuals who may be entitled to the additional $500 per qualifying child dependent payments. For VA and SSI recipients who don't have a filing requirement and have a child, they need to use the Non-Filers tool on IRS.gov by May 5 in order to have the $500 added automatically to their $1,200 Economic Impact payment. We encourage people to review our "How do I calculate my EIP Payment" question and answer. Quick links to the Frequently Asked Questions on IRS.gov: Economic Impact Payments: IRS.gov/eipfaq Get My Payment tool: IRS.gov/getmypaymentfaq No action needed by most taxpayers Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Starting this week, automatic payments are going to those receiving Social Security retirement, or disability (SSDI), and Railroad Retirement benefits, and recipients of SSI and Veterans Affairs or survivor benefits should receive their payments by mid-May. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

https://www.irs.gov/newsroom/irs-accepting-applications-for-2021-grants-for-low-income-taxpayer-clinics

IR-2020-84, April 30, 2020 WASHINGTON — The Internal Revenue Service today announced that the application period for Low Income Taxpayer Clinic grants for calendar year 2021 will run from April 30, 2020 to June 16, 2020. The LITC Program is a federal grant program administered by the Office of the Taxpayer Advocate at the IRS, which is led by National Taxpayer Advocate Erin M. Collins. 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. An LITC must provide services for free or for no more than a nominal fee. The IRS welcomes all applications and will ensure that each application receives due consideration. The IRS is committed to achieving maximum access to representation for low income taxpayers under the terms of the LITC Program. In awarding LITC grants for calendar year 2021, the IRS will continue to work toward the following program goals: Obtaining coverage for the states of Hawaii, Montana, Nevada, North Dakota, West Virginia, Wyoming, and the territory of Puerto Rico to ensure that every state (plus the District of Columbia and Puerto Rico) has at least one clinic;   Expanding coverage to counties in the following high-need areas that are currently not being served by an LITC: central Arizona, Kern County, California, mid-Florida and the eastern coast, southeast New York, and northeast Pennsylvania. For a complete list of counties see the 2021 Grant Application Package and Guidelines, Publication 3319 PDF; and   Ensuring that grant recipients demonstrate they are serving geographic areas that have sizable populations eligible for and requiring LITC services. The mission of LITCs is to ensure the fairness and integrity of the tax system for taxpayers who are low income or speak English as a second language 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. LITC grants are funded by federal appropriations. The clinics, their employees and their volunteers operate independently from 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; and   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 a multi-year grant not to exceed three years. For an organization not currently receiving a grant for 2020, an organization that received a single-year grant for 2020, or an organization whose multi-year grant ends in 2020, the organization must submit a full grant application electronically. For an organization currently receiving a grant for 2020 that is requesting funding for the second or third year of a multi-year grant, the organization must submit a request for continued funding electronically. All organizations must use the funding number of TREAS-GRANTS-052021-001. Applications and requests for continued funding must be submitted by 11:59 p.m. Eastern time on June 16, 2020. The complete program requirements and application instructions can be found in Publication 3319 PDF. The LITC Program Office will conduct a teleconference training session on the 2021 full grant application process and requirements on May 12, 2020, from 1 - 2:30 p.m. Eastern time. Teleconference dial-in information and presentation materials will be posted on May 11, 2020. No registration is necessary. Questions about the LITC Program or grant application process can sent by email to LITCProgramOffice@irs.gov.

https://www.irs.gov/newsroom/use-irs-non-filers-enter-payment-info-here-tool-to-get-economic-impact-payment-many-low-income-homeless-qualify

New Spanish language version unveiled IR-2020-83, April 28, 2020 WASHINGTON – The Internal Revenue Service today reminds low-income Americans to use the free, online tool Non-Filers: Enter Payment Info Here to quickly and easily register to receive their Economic Impact Payment. The IRS has recently released a new Spanish language version of the tool to help even more Americans get their money quickly and easily. "The IRS is working hard to find new ways for people who don't have a filing requirement to receive their Economic Impact Payment," said IRS Commissioner Chuck Rettig. "The Non-Filers tool is an easy way people can register for these payments. I appreciate the work of the Free File Alliance to quickly develop a Spanish-language version of this tool to reach additional people. This is part of a wider effort to reach underserved communities." The Non-Filers: Enter Payment Info Here tool is designed for people with incomes typically below $24,400 for married couples or less than $12,200 for single people. This includes couples and individuals who are homeless. People can qualify, even if they do not work. Anyone claimed as a dependent by another taxpayer is not eligible. Usually, married couples qualify to receive a $2,400 payment while others normally qualify to get $1,200. People with dependents under 17 can get up to an additional $500 for each child. Just like people who file returns every year, those who do not have a filing requirement also generally qualify for an Economic Impact Payment. The IRS doesn't know who many of these people are since they normally don't file. So, the only way to get the Economic Impact Payment is to register with the IRS. Here are some questions and answers on the Non-filers tool:  How do I use the Non-Filers: Enter Payment Info Here tool? For those who don't normally file a tax return, the process is simple and only takes a few minutes. First, visit IRS.gov, and look for "Non-Filers: Enter Payment Info Here." Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility, calculate and send an Economic Impact Payment. No tax will be due as a result of receiving the payment. Entering bank or financial account information will allow the IRS to quickly deposit the payment directly in a savings or checking account. Otherwise, the payment will be mailed, which will take longer to receive than by direct deposit. Non-Filers: Enter Payment Info is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance's offerings of free products on IRS.gov. Who should use the Non-Filers: Enter Payment Info Here tool? This new tool is designed for people who did not file a tax return for 2018 or 2019 and are not required to do so under the law. Usually, this means couples with incomes below $24,400 and singles with incomes below $12,200 in 2019. In addition, the Non-Filers tool can also help families receiving certain government benefits get additional payment amounts, based on their children. These include those receiving Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who did not file returns for 2018 or 2019. These recipients need to make the updates for the children in the tool by May 5. By taking this step, they will still be eligible to receive the separate payment of $500 per qualifying child. See the news release for full details. Who should NOT use the Non-Filers: Enter Payment Info Here tool? Anyone who already filed either a 2018 or 2019 return does not qualify to use this tool. Similarly, anyone who needs to file either a 2018 or 2019 return should not use this tool, but instead they should file their tax returns. This includes anyone who files a return to claim various tax benefits, such as the Earned Income Tax Credit for low-and moderate-income workers and working families. The IRS also has seen instances where people required to file a Form 1040 for 2019 are trying to use the Non-Filers tool. The IRS urges people with a filing requirement to avoid complications later with the IRS, and file properly without using the Non-Filer tool. Students and others who file a return only to receive a refund of withheld taxes should also not use this tool. In addition, students and others claimed as dependents on someone else's tax return don't qualify for an Economic Impact Payment and are not eligible to use the Non-Filers tool. For more Information on Economic Impact Payments, including answers to frequently-asked questions and other resources, visit IRS.gov/coronavirus.

https://www.irs.gov/newsroom/irs-enhances-get-my-payment-online-application-to-help-taxpayers

IR-2020-82, April 26, 2020 WASHINGTON – The Internal Revenue Service today announced significant enhancements to the “Get My Payment” tool to deliver an improved and smoother experience for Americans eligible to receive Economic Impact Payments. The enhancements, which started last week and continued through the weekend, adjusted several items related to the online tool, which debuted on April 15. The additional changes will help millions of additional taxpayers with new or expanded information and access to adding direct deposit information. “We delivered Get My Payment with new capabilities that did not exist during any similar relief program, including the ability to receive direct deposit information that accelerates payments to millions of people,” said IRS Commissioner Chuck Rettig. “These further enhancements will help even more taxpayers. We urge people who haven’t received a payment date yet to visit Get My Payment again for the latest information. IRS teams worked long hours to deliver Get My Payment in record time, and we will continue to make improvements to help Americans.” “We encourage people to check back in and visit Get My Payment,” Rettig added. “These enhancements will help many taxpayers. By using Get My Payment now, more people will be able to get payments quickly by being able to add direct deposit information.” How to use Get My Payment Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process. As a reminder, Get My Payment is a U.S. Government system for authorized use only. The tool is solely for use by individuals or those legally authorized by the individual to access their information. Unauthorized use is prohibited and subject to criminal and civil penalties. For taxpayers to track the status of their payment, this feature will show taxpayers the scheduled delivery date by direct deposit or mail and the last four digits of the bank account being used if the IRS has direct deposit information. They will need to enter basic information including: Social Security number Date of birth, and Mailing address used on their tax return.  Taxpayers needing to add their bank account information to speed receipt of their payment will also need to provide the following additional information: Their Adjusted Gross Income from their most recent tax return submitted, either 2019 or 2018 The refund or amount owed from their latest filed tax return Bank account type, account and routing numbers Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS. A Spanish version of Get My Payment is expected in a few weeks. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information. More information The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available. 

https://www.irs.gov/newsroom/va-ssi-recipients-with-eligible-children-need-to-act-by-may-5-to-quickly-add-money-to-their-automatic-economic-impact-payment-plus-500-push-continues

Special alert for VA, SSI recipients who don’t file a tax return and have dependents IR-2020-81, April 24, 2020 WASHINGTON — The Internal Revenue Service today issued a special alert for Supplemental Security Income and Department of Veterans Affairs beneficiaries to act by May 5 if they didn’t file a tax return in 2018 or 2019 and have dependents so they can quickly receive the full amount of their Economic Impact Payment. Their $1,200 payments will be issued soon and, in order to add the $500 per eligible child amount to these payments, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount will be paid in association with a return filing for tax year 2020. “We want to ‘Plus $500’ these groups so they can get their maximum Economic Impact Payment of $1,200 and their $500 for each eligible child as quickly as possible,” said IRS Commissioner Chuck Rettig. “They’ll get $1,200 automatically, but they need to act quickly and use the Non-Filers tool on IRS.gov to get the extra $500 per child added to their payment. Everyone should share this information widely and help others with the Plus $500 Push, so that more Americans get more money as fast as possible.” Following extensive work by the IRS and partner government agencies, $1,200 automatic payments will be starting soon for those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and VA Compensation and Pension (C&P) beneficiaries who didn’t file a tax return in the last two years. No action is needed by these groups; they will automatically receive their $1,200 payment. For VA and SSI recipients who have a qualifying child and didn’t file a 2018 or 2019 tax return, they have a limited window to register to have $500 per eligible child added automatically to their soon-to-be-received $1,200 Economic Impact Payment. A quick trip to a special Non-Filers tool on IRS.gov by May 5 for these groups may help put all of their eligible Economic Income Payment into a single payment. The Non-Filers tool is available in English and Spanish. To help spread the word to recipients with children about this special “Plus $500 Push,” the IRS has additional material available on a special partners page that can be shared with friends, family members and community groups. SSI and VA recipients: Have a child but don’t file a tax return? Visit IRS.gov now SSI and VA recipients who have children and who weren’t required file a tax return in 2018 or 2019 should visit the Non-Filers: Enter Payment Info Here tool on IRS.gov. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment automatically in addition to their $1,200 individual payment. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. SSI and VA recipients who receive Compensation and Pension (C&P) benefit payments should receive their automatic payments by mid-May. If they have children and aren’t required to file a tax return, both groups are urged to use the Non-Filers tool as soon as possible before the May 5 deadline. Once the deadline passes and processing begins on the $1,200 payment, they will not be eligible to use the Non-Filers tool to add eligible children. Their payment will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. SSA / Railroad Retirees: Economic Impact Payments arriving next week For recipients of Social Security retirement, survivors or disability insurance benefits (SSDI) and Railroad Retirement benefits (RRB), automatic payments of $1,200 are scheduled to begin arriving next week. No action is needed on their part. This includes people who don’t normally file a tax return. For Social Security / RRB beneficiaries who don’t normally file a tax return, have a child and registered using the IRS Non-Filers tool by the April 22 deadline, more payments are scheduled to begin arriving next week as well. For SSA/RRB beneficiaries who don’t normally file a tax return and have a child but did not register on the IRS Non-Filers tool by April 22, they will still receive their automatic $1,200 beginning next week. Given the deadline has passed, by law, the additional $500 per eligible child amount would be paid in association with filing a tax return for 2020. This group can no longer use the Non-Filers tool to add eligible children. Note - Direct Express Account Holders: You may use the Non-Filers tool, but you cannot receive your and your children’s payment on your Direct Express account. You may only select a bank account for direct deposit or leave bank information blank and receive the money by mail. No action needed by most taxpayers The Treasury Department will make these automatic payments to SSA, SSI, RRB and VA recipients. Recipients will generally receive the automatic $1,200 payments by direct deposit, Direct Express debit card or by paper check, just as they would normally receive their benefits. For more information related to veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA, please visit VA.gov. General IRS information about the Economic Impact Payments is available on a special section of IRS.gov. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. There is no fee required to receive these payments.

https://www.irs.gov/newsroom/treasury-irs-deliver-89-point-5-million-economic-impact-payments-in-first-three-weeks-release-state-by-state-economic-impact-payment-figures

Updated: April 28, 2020 IR-2020-80, April 24, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today released state-by-state figures for Economic Impact Payments, with 89.5 million individuals receiving payments worth nearly $160 billion in the program's first three weeks. As of April 17, the IRS issued 89.5 million payments to taxpayers across the nation. More payments are continuing to be delivered each week. "The IRS, Treasury and partner agencies are working non-stop to get these payments out in record time to Americans who need them," said IRS Commissioner Chuck Rettig. "Tens of millions of people across the country are receiving these payments, and millions more are on the way. We encourage people to visit IRS.gov for the latest information, FAQs and updates on the payments." More than 150 million payments will be sent out, and millions of people who do not typically file a tax return are eligible to receive these payments. Payments are automatic for people who filed a tax return in 2018 or 2019, receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn't file a tax return in the last two years. Economic Impact Payments as of April 17, totals by state. State Number of EIP Payments Total Amount of EIP Payments Alabama 1,306,879  $             2,432,903,249 Alaska 209,626  $                384,976,728 Arkansas 778,710  $             1,484,876,413 Arizona 1,868,529  $             3,408,327,214 California 9,127,137  $           15,894,426,934 Colorado 1,532,632  $             2,697,948,990 Connecticut 961,464  $             1,631,719,992 District of Columbia 179,738  $                255,501,803 Delaware 275,688  $                484,493,248 Florida 6,348,503  $           11,067,476,416 Georgia 2,785,534  $             5,041,819,449 Hawaii 378,200  $                677,850,427 Iowa 901,609  $             1,709,391,510 Idaho 470,200  $                939,632,351 Illinois 3,561,467  $             6,288,620,441 Indiana 2,047,079  $             3,801,302,228 Kansas 806,471  $             1,527,129,168 Kentucky 1,247,465  $             2,352,784,094 Louisiana 1,265,581  $             2,297,891,337 Massachusetts 1,774,172  $             2,951,357,726 Maryland 1,561,936  $             2,662,114,660 Maine 400,919  $                722,201,531 Michigan 2,945,568  $             5,338,452,373 Minnesota 1,568,913  $             2,857,063,159 Missouri 1,737,013  $             3,220,707,956 Mississippi 804,317  $             1,481,695,852 Montana 295,589  $                547,319,262 North Carolina 2,774,379  $             5,057,006,091 North Dakota 215,321  $                399,771,434 Nebraska 562,422  $             1,070,565,880 New Hampshire 407,786  $                714,166,522 New Jersey 2,245,299  $             3,861,741,262 New Mexico 596,433  $             1,072,887,126 Nevada 892,115  $             1,561,690,988 New York 5,481,796  $             9,283,821,196 Ohio 3,504,529  $             6,258,547,152 Oklahoma 1,074,373  $             2,056,089,347 Oregon 1,098,231  $             1,945,572,937 Pennsylvania 3,725,334  $             6,628,241,748 Rhode Island 319,156  $                541,849,017 South Carolina 1,361,971  $             2,489,898,415 South Dakota 255,301  $                487,326,070 Tennessee 1,997,548  $             3,683,938,147 Texas 7,812,382  $           14,398,065,881 Utah 818,700  $             1,676,956,785 Vermont 188,076  $                332,111,224 Virginia 2,312,429  $             4,146,024,506 Washington 2,058,899  $             3,680,595,622 Wisconsin 1,690,733  $             3,093,584,754 West Virginia 522,573  $                984,826,539 Wyoming 166,195  $                316,335,903 Territories and Overseas* 267,573  $         501,071,680.00 Total 89,490,493  $       160,402,670,737 Economic Impact Payment help available on IRS.gov IRS.gov has a variety of tools and resources available to help individuals and businesses navigate Economic Impact Payments and get the information they need about EIP and other CARES Act provisions. Economic Impact Payment FAQs: The IRS is seeing a variety of questions about Economic Impact Payments, ranging from eligibility to timing. These FAQs provide an overview and are updated frequently. Taxpayers should check the FAQs often for the latest additions; many common questions are answered on IRS.gov already, and more are being developed.

https://www.irs.gov/newsroom/irs-seeks-nominations-for-the-internal-revenue-service-advisory-council-for-2021

IR-2020-79, April 24, 2020 WASHINGTON — The Internal Revenue Service today announced it is accepting applications for the Internal Revenue Service Advisory Council (IRSAC). Applications will be accepted through June 12, 2020. The IRSAC serves as an advisory body to the Commissioner of the Internal Revenue Service and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. The IRSAC proposes enhancements to IRS operations, recommends administrative and policy changes to improve taxpayer service, compliance and tax administration, discusses relevant information reporting issues, addresses matters concerning tax-exempt and government entities and conveys the public's perception of professional standards and best practices for tax professionals. IRSAC members are appointed to three-year terms by the Commissioner of the Internal Revenue Service and submit a report to the Commissioner annually at a public meeting. Applications are currently being accepted for approximately 14 appointments that will begin in January 2021. Nominations of qualified individuals may come from individuals or organizations. IRSAC members are drawn from substantially diverse backgrounds representing a cross-section of the taxpaying public with substantial, disparate experience in: tax preparation for individuals, small businesses and/or large, multi-national corporations; information reporting, tax-exempt and government entities; digital services; and professional standards of tax professionals. Applications should document the proposed member's qualifications. In particular, the IRSAC is seeking applicants with knowledge and background in one of the following areas: Large Business & International International tax expertise Experience as a certified public accountant or tax attorney working in or for a large, sophisticated organization, and/or Experience working in-house at a major firm dealing with complex organizations Small Business & Self-Employed Experience with online or digital businesses Experience with audit representation Experience educating on tax issues and topics Knowledge of passthrough entities, and/or Knowledge of fiduciary tax Tax Exempt & Government Entities Experience in exempt organizations Experience with Indian tribal governments and/or Experience with other aspects of TE/GE Wage & Investment Knowledge of tax law application/tax preparation experience Familiarity with IRS tax forms and publications Knowledge of the audit process Experience educating on tax issues and topics Knowledge of income tax issues related to refundable credits Tax software industry experience Volunteer Income Tax Assistance and Tax Counseling for the Elderly experience Experience applying industry benchmarks to operations Financial services information technology background with knowledge of technology innovations in public and private customer service sectors Applicants must be in good standing regarding their own tax obligations and demonstrate high professional and ethical standards. All applicants must complete and submit an application and pass a tax compliance and practitioner check. For those applicants deemed "Best Qualified," FBI fingerprint checks will also be required. More information, including the application form, is available on the IRS website. Questions about the application process can be emailed to publicliaison@irs.gov.

https://www.irs.gov/newsroom/irs-treasury-issue-guidance-for-applying-ubti-silo-rules-for-tax-exempt-organizations-by-identifying-separate-trades-or-businesses

IR-2020-78, April 23, 2020 WASHINGTON — The Treasury Department and Internal Revenue Service today issued proposed regulations under the Tax Cuts and Jobs Act (TCJA) that provide guidance for tax-exempt organizations that are subject to the unrelated business income tax with more than one unrelated trade or business on how to calculate their unrelated business taxable income (UBTI). The proposed regulations issued today provide guidance on identifying separate trades or businesses, including investment activities, as well as certain other amounts included in UBTI. Changes under the TCJA require tax-exempt organizations subject to the UBTI tax to compute UBTI, including any NOL deduction, separately for each trade or business (referred to as a "silo"). Under prior law, UBTI was the gross income of all unrelated trades or businesses less the allowed deductions from all unrelated trades or businesses. Starting in tax-year 2018 (tax years beginning after December 31, 2017), the loss from one trade or business may not offset the income from another, separate trade or business. Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

https://www.irs.gov/newsroom/treasury-irs-announce-cross-border-tax-guidance-related-to-travel-disruptions-arising-from-the-covid-19-emergency

IR-2020-77, April 21, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today issued guidance that provides relief to individuals and businesses affected by travel disruptions arising from the COVID-19 emergency. The guidance includes the following: Revenue Procedure 2020-20PDF, which provides that, under certain circumstances, up to 60 consecutive calendar days of U.S. presence that are presumed to arise from travel disruptions caused by the COVID-19 emergency will not be counted for purposes of determining U.S. tax residency and for purposes of determining whether an individual qualifies for tax treaty benefits for income from personal services performed in the United States;   Revenue Procedure 2020-27 PDF, which provides that qualification for exclusions from gross income under I.R.C. section 911 will not be impacted as a result of days spent away from a foreign country due to the COVID-19 emergency based on certain departure dates; and   An FAQ, which provides that certain U.S. business activities conducted by a nonresident alien or foreign corporation will not be counted for up to 60 consecutive calendar days in determining whether the individual or entity is engaged in a U.S. trade or business or has a U.S. permanent establishment, but only if those activities would not have been conducted in the United States but for travel disruptions arising from the COVID-19 emergency. The Treasury Department and the IRS are continuing to monitor these and other issues related to the COVID-19 emergency, and updated information about relief will continue to be posted on Coronavirus Tax Relief on IRS.gov.

https://www.irs.gov/newsroom/ssa-rrb-recipients-with-eligible-children-need-to-act-by-wednesday-to-quickly-add-money-to-their-automatic-economic-impact-payment-irs-asks-for-help-in-the-plus-500-push

Special alert for benefit recipients who don't file a tax return and have dependents IR-2020-76, April 20, 2020 WASHINGTON — The Internal Revenue Service today issued a special alert for several groups of federal benefit recipients to act by this Wednesday, April 22, if they didn't file a tax return in 2018 or 2019 and have dependents so they can quickly receive the full amount of their Economic Impact Payment. Their $1,200 payments will be issued soon and, in order to add the $500 per eligible child amount to these payments, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. Following extensive work by the IRS and other government agencies, $1,200 automatic payments will be starting soon for those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn't file a tax return in the last two years. No action is needed by these groups; they will automatically receive their $1,200 payment. For those benefit recipients with children who aren't required to file a tax return, an extra step is needed to quickly add $500 per eligible child onto their automatic payment of $1,200. For people in these groups who have a qualifying child and didn't file a 2018 or 2019 tax return, they have a limited window to register to have $500 per eligible child added automatically to their soon-to-be-received $1,200 Economic Impact Payment. A quick trip to a special non-filer tool on IRS.gov by noon Eastern time, Wednesday, April 22, for some of these groups may help put all of their eligible Economic Income Payment into a single payment. "We want to 'Plus $500' these recipients with children so they can get their maximum Economic Impact Payment of $1,200 plus $500 for each eligible child as quickly as possible," said IRS Commissioner Chuck Rettig. "They'll get $1,200 automatically, but they need to act quickly and register at IRS.gov to get the extra $500 per child added to their payment. These groups don't normally have a return filing obligation and may not realize they qualify for a larger payment. We're asking people and organizations throughout the country to share this information widely and help the IRS with the Plus $500 Push." To help spread the word to recipients with children about this special "Plus $500 Push," the IRS has additional material available on a special partners page that can be shared with friends, family members and community groups. This effort will focus on the initial April 22 deadline and continue this spring to reach as many people as possible since the child payments will continue to be made in the weeks and months ahead. Have a child but don't file a tax return? Visit IRS.gov now Those receiving federal benefits – including Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Administration benefits – who have with children and who weren't required file a tax return in 2018 or 2019 should visit the Non-Filers: Enter Payment Info Here tool on IRS.gov. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment automatically in addition to their $1,200 individual payment. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. First window affects SSA/RRB recipients with children; SSI and VA recipients have slightly more time to add $500 to automatic payments For certain SSA / RRB beneficiaries who don't normally file a tax return and do not register with the IRS by April 22, they will still be eligible to receive the separate payment of $500 per qualifying child. For those who miss the April 22 deadline, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. They will not be eligible to use the Non-Filer tool to add eligible children once their $1,200 payment has been issued. SSI and VA beneficiaries have some additional time beyond April 22 to add their children since their $1,200 automatic payments will be made at a later date. SSI recipients will receive their automatic payments in early May, and the VA payment schedule for beneficiaries who receive Compensation and Pension (C&P) benefit payments is still being determined. If they have children and aren't required to file a tax return, both groups are urged to use the Non-Filer tool as soon as possible. Once their $1,200 payment has been issued, they will not be eligible to use the Non-Filer tool to add eligible children. Their payment will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. No action needed by most taxpayers The Treasury Department will make these automatic payments to SSA, SSI, RRB and VA recipients. Recipients will generally receive the automatic $1,200 payments by direct deposit, Direct Express debit card or by paper check, just as they would normally receive their benefits. For information about Social Security retirement, survivors and disability insurance beneficiaries, please visit the SSA website at SSA.gov. For more information related to veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA, please visit VA.gov. General IRS information about the Economic Impact Payments is available on a special section of IRS.gov. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. There is no fee required to receive these payments.

https://www.irs.gov/newsroom/veterans-affairs-recipients-will-receive-automatic-economic-impact-payments-step-follows-work-between-treasury-irs-va

IR-2020-75, April 17, 2020 WASHINGTON — The Internal Revenue Service, working in partnership with the Treasury Department and the Department of Veterans Affairs, announced today that recipients of VA benefits will automatically receive automatic Economic Impact Payments. Veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA will receive a $1,200 Economic Impact Payment with no further action needed on their part. Timing on the payments is still being determined. Moving VA recipients into the automatic payment category follows weeks of extensive cooperative work between VA, Treasury, IRS as well as the Bureau of Fiscal Services. "Since many VA recipients typically aren't required to file tax returns, the IRS had to work with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group," said IRS Commissioner Chuck Rettig. "Additional programming work remains, but this step simplifies the process for VA recipients to quickly and easily receive these $1,200 payments automatically. We deeply appreciate the sacrifices and service to our country by each and every veteran and their families, as well as the assistance of VA and the Bureau of Fiscal Services in this effort." No action needed by most taxpayers Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits, Supplemental Security Income and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don't typically file tax returns. Many people in these groups are expected to see the automatic $1,200 payments later this month, with SSI payments expected to start in early May. For eligible taxpayers who filed tax returns for 2019 or 2018, they will also receive the payments automatically. About 80 million payments are hitting bank accounts this week. For benefit recipients with dependents, extra step needed to claim $500 for children; Register now for earlier delivery The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic. However, many benefit recipients typically aren't required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn't file a tax return in 2018 or 2019. For those who receive these benefits – including VA, Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI – and have a qualifying child, they can quickly register by visiting "Non-Filers: Enter Payment Info" available only on IRS.gov. For those who can use this tool as soon as possible, they may be able to get earlier delivery of the child payments by having these added to their automatic payments. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these group do not provide their information to the IRS soon, they will receive their $500 per qualifying child at a later date, depending on when they complete the registration process. The Treasury Department, not the VA, will make these automatic payments. Recipients will generally receive the automatic payments the way they receive their current benefits. For more information related to veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA, please visit VA.gov. Information for recipients using the IRS.gov Non-Filer and Get My Payment tools We recognize that many non-tax filing beneficiaries have already begun using the "Non-Filers: Enter Payment Info" tool to provide basic personal information to receive their EIP. There will be no interruption to payments being processed using this portal, and Veterans with internet access are encouraged to continue providing information and track their EIP through the "Get My Payment" tool. General information about the payment is available on the Economic Impact Payment Information Center section of IRS.gov. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information. More information The IRS has posted frequently asked questions on IRS.gov/coronavirus and will provide more updates as soon as they are available.

https://www.irs.gov/newsroom/irs-free-file-use-soars-taxpayers-still-have-time-to-do-their-taxes-for-free

IR-2020-74, April 16, 2020 WASHINGTON — The Internal Revenue Service today reported a record increase in the use of Free File products for entering and filing federal income taxes and reminded taxpayers that they should go through IRS.gov to ensure they get the free offers they are due. As of April 10, the IRS has received 2.9 million tax returns through the Free File program since January. That is a 28% increase compared to the 2.3 million received during the same time last year and already more than the 2.8 million received during all of 2019. "The IRS worked with the Free File Alliance to make improvements to the program this year, and this record increase is an encouraging sign," said IRS Commissioner Chuck Rettig. "We will work to continue improving this program. With the tax deadline extended to July 15, we remind eligible taxpayers who haven't filed to look into the Free File options. Free File online products offer free federal tax return preparation, free electronic filing and free direct deposit of refunds to help get your money faster." In addition to Free File remaining available through the new July 15 tax deadline, the IRS reminds taxpayers that two Free File products are also available in Spanish. Economic Impact Payments: Special option available for those who don't normally file The Free File Alliance also helped provide people who don't normally file a tax return, and don't plan to for 2019, an easy way to register for Economic Impact Payment. This special tool, available only on IRS.gov, can be found at Non-Filers: Enter Payment Info Here. The IRS, in partnership with Free File Inc., has provided this streamlined entry that people can quickly and easily complete using their direct deposit information and filing electronically with the IRS. This easy-to-use product adheres to the same security protocols as all other tax software products. Special note for people required to file a tax return for 2019 People who haven't filed a tax return yet and are required to or plan to file a Form 1040 for 2019, should not use the Non-Filers: Enter Payment Info Here option. Using this option could slow processing of their tax return and their Economic Impact Payment. People required to file for 2019 can use other Free File options or file as they normally do. Those eligible for an Economic Impact Payment include U.S. citizens or resident aliens who: Have a valid Social Security number, Could not be claimed as a dependent of another taxpayer, and Had adjusted gross income under certain limits. Some Free File partners also are providing a free option for individuals who are not required to file a tax return but who are eligible for the payment. As a reminder, always go to IRS.gov to seek out these Free File options. Taxpayers who have not yet filed a tax return for 2019 will still receive an Economic Impact Payment based on their 2018 tax return, if they filed one. The IRS already has started dispersing those payments to those with direct deposit information. Taxpayers can use the new Get My Payment tool on our website to check the status of their payment. Here's how Free File works: Taxpayers whose income was $69,000 or less last year are eligible for the free software. There also is Free File Fillable Forms, an electronic version of IRS paper forms. It has no income limitations. Free File options are available at IRS.gov/freefile. Go to IRS.gov/freefile to see all Free File options. Browse each of the offers or use a "look up" tool to help you find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if the taxpayer's adjusted gross income was $69,000 or less, they will find at least one free product to use. Select a provider and follow the links to their web page to begin a tax return. Taxpayers should complete and e-File a tax return only when they have all the income and deduction records they need. The fastest way to get a refund is by filing electronically and selecting direct deposit. For those who owe, use direct pay or electronic options. Please note: Because of COVID-19, the IRS is not processing paper tax returns at this time. Electronic filing options remain available. To receive a refund electronically, use the electronic filing option for Free File and use direct deposit. Beware of scams Scammers are using the Economic Impact Payment and fake fillable forms sites to try to trick individuals into providing sensitive information such as banking accounts. Please beware of fake emails, texts and telephone calls about this payment. Don't fall for the fakes – always go to IRS.gov for the official information.

https://www.irs.gov/newsroom/supplemental-security-income-recipients-will-receive-automatic-economic-impact-payments-step-follows-work-between-treasury-irs-social-security-administration

IR-2020-73, April 15, 2020 WASHINGTON — The Internal Revenue Service, working in partnership with the Treasury Department and the Social Security Administration, announced today that recipients of Supplemental Security Income (SSI) will automatically receive automatic Economic Impact Payments. SSI recipients will receive a $1,200 Economic Impact Payment with no further action needed on their part. The IRS projects the payments for this group will go out no later than early May. Moving SSI recipients into the automatic payment category follows weeks of extensive cooperative work between SSA, Treasury, IRS as well as the Bureau of Fiscal Services. "Since SSI recipients typically aren't required to file tax returns, the IRS had to work extensively with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group," said IRS Commissioner Chuck Rettig. "Additional programming work remains, but this step simplifies the process for SSI recipients to quickly and easily receive these $1,200 payments automatically. We appreciate the assistance of SSA and the Bureau of Fiscal Services in this effort." No action needed by most taxpayers Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don't typically file tax returns. People in these groups are expected to see the automatic $1,200 payments later this month. Eligible taxpayers who filed tax returns for 2019 or 2018 will also receive the payments automatically. About 80 million payments are hitting bank accounts this week. For benefit recipients with dependents, extra step needed to claim $500 for children The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic. However, many benefit recipients typically aren't required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn't file a tax return in 2018 or 2019. For those who receive Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI and have a qualifying child, they can quickly register by visiting special tool available only on IRS.gov and provide their information in the Non-Filers section. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these groups do not provide their information to the IRS soon, they will have to wait until later to receive their $500 per qualifying child. The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. Recipients will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits. For those with dependents who use Direct Express debit cards, additional information will be available soon regarding the steps to take on the IRS web site when claiming children under 17. For information about Social Security retirement, survivors and disability insurance beneficiaries, please visit the SSA website at SSA.gov. General information about the Economic Impact Payments is available on a special section of IRS.gov. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information. More information The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available.

https://www.irs.gov/newsroom/treasury-irs-unveil-online-application-to-help-with-economic-impact-payments

IR-2020-72, April 15, 2020 WASHINGTON – Working with the Treasury Department, the Internal Revenue Service today unveiled the new Get My Payment with features to let taxpayers check on their Economic Impact Payment date and update direct deposit information. With an initial round of more than 80 million Economic Impact Payments starting to hit bank accounts over the weekend and throughout this week, this new tool will help address key common questions. Get My Payment will show the projected date when a deposit has been scheduled, similar to the “Where’s My Refund tool” many taxpayers are already familiar with. Get My Payment also allows people a chance to provide their bank information. People who did not use direct deposit on their last tax return will be able to input information to receive the payment by direct deposit into their bank account, expediting receipt. “Get My Payment will offer people with a quick and easy way to find the status of their payment and, where possible, provide their bank account information if we don’t already have it,” said IRS Commissioner Chuck Rettig. “Our IRS employees have been working non-stop on the Economic Impact Payments to help taxpayers in need. In addition to successfully generating payments to more than 80 million people, IRS teams throughout the country proudly worked long days and weekends to quickly deliver Get My Payment ahead of schedule.” Get My Payment is updated once daily, usually overnight. The IRS urges taxpayers to only use Get My Payment once a day given the large number of people receiving Economic Impact Payments. How to use Get My Payment Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process. For taxpayers to track the status of their payment, this feature will show taxpayers the payment amount, scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled. They will need to enter basic information including: Social Security number Date of birth, and Mailing address used on their tax return. Taxpayers needing to add their bank account information to speed receipt of their payment will also need to provide the following additional information: Their Adjusted Gross Income from their most recent tax return submitted, either 2019 or 2018 The refund or amount owed from their latest filed tax return Bank account type, account and routing numbers Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS.  A Spanish version of Get My Payment is expected in a few weeks. Don’t normally file a tax return? Additional IRS tool helps non-filers In addition to Get My Payment, Treasury and IRS have a second a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. The Non-filers: Enter Payment Info Here tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The new web tool is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool. Non-filers: Enter Payment Info is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement, disability (SSDI), or survivor benefits and Railroad Retirement benefits. Additional information is available at the Non-Filers: Enter Payment Info Here page.  No action needed by most taxpayers Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement, or disability (SSDI), or survivor benefits and Railroad Retirement benefits. General information about the Economic Impact Payments is available on a special section of IRS.gov: Economic Impact Payment Information Center. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information. More information The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available. 

https://www.irs.gov/newsroom/irs-security-summit-partners-warn-tax-professionals-on-scams-urge-additional-security-measures-to-protect-taxpayer-data

IR-2020-71, April 14, 2020 WASHINGTON — The Internal Revenue Service and its Security Summit partners today urged tax professionals to take additional security steps immediately to protect taxpayer data as more practitioners telework and security risks increase. The IRS, state tax agencies and the nation’s tax industry continue to see an upswing in data thefts from tax professionals as cybercriminals try to take advantage of COVID-19 and Economic Impact Payments to create new scams. “Identity thieves view the pandemic as a chance to exploit tax professionals as well as taxpayers,” said IRS Commissioner Chuck Rettig. “They are using every trick of their criminal trade to con people as well as steal valuable personal and financial information to help enable tax-related identity theft. In many ways, tax pros are one of the first lines of defense. We urge the entire tax community to take additional steps and protect their sensitive data.” The partners in the Security Summit – including the IRS, state tax agencies and private-sector tax industry – continue working closely together to watch for new threats during the coronavirus. In addition, IRS Criminal Investigation is actively working to combat scam artists trying to exploit Economic Impact Payments and other provisions related to coronavirus. So far, the scams CI has already seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS CI is prioritizing these types of investigations to help protect taxpayers and the tax system. Tax Pros: Use a Virtual Private Network for extra security All tax professionals who are teleworking should be using an encrypted Virtual Private Network or VPN. A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the internet and the company network. Cybercriminals can exploit various weaknesses, whether by using a phishing email or an unsecured network, to gain control of a tax professional’s computer. Once they have remote control, they can either steal data or complete and file client tax returns but change the bank account information for refunds. The government cannot recommend a VPN provider, but tax professionals can ask trusted colleagues or search for “Best VPNs” to find a legitimate vendor. Major technology sites often provide lists of top services. Never fall for “pop-ups” on websites for VPN or any kind of security software. Those generally are all scams. Multi-Factor Authentication helps protect data This year, most tax software providers for tax professionals and for taxpayers are offering the option of multi-factor authentication. Security Summit partners urge the use of this option. Multi-factor authentication means a returning user to the software product must enter not only their credentials (username/password) but also a security code, generally sent as a text to a mobile phone. The idea is the thieves may compromise log-in credentials, but it is unlikely they will have stolen the mobile phone as well. Multi-factor authentication protects the software account from being breached and from client data being stolen. Tax professionals should activate this feature immediately. Avoid phishing scams Identity thieves have stepped up phishing scam efforts to capitalize on COVID-19 and Economic Impact Payments. Crooks are targeting tax professionals as well as taxpayers. Tax professionals should beware of emails from criminals posing as potential clients. As people practice social distancing these days, criminals may exploit this process to try to trick tax practitioners into opening links or attachments. For example, crooks may present themselves as a new client and ask the practitioner to view the wage and income information they have in an attachment. The Security Summit reminds tax professionals of simple steps to remember: Know your customers. Use the phone to confirm identities. And, don’t take the bait.  Thieves also seek to impersonate tax software providers, cloud storage providers banks and others. Remember, phishing emails generally have an urgent message, i.e. your account password expired, and direct you to a link or attachment. Taxpayers can report suspicious emails posing as the IRS to our *PHISHING mailbox at phishing@irs.gov. Watch out for IRS impersonation scams The IRS will not call, email or text anyone about Economic Impact Payments. These are impersonation scams by thieves seeking to steal bank account or other sensitive data. Do not fall for these scams. Don’t forget security software Everyone, especially all tax professionals, should be using broad-based security software that protects not just their computers but mobile phones as well. Security features will help identify and stop potentially dangerous malware that can infect digital networks. For more help, the IRS and  the Security Summit partners urge tax practitioners to review the security measures outlined in Publication 4557, Safeguarding Taxpayer DataPDF.

https://www.irs.gov/newsroom/reminder-schedule-and-pay-federal-taxes-electronically-due-by-july-15-only-a-few-hours-remaining-for-taxpayers-to-reschedule-payments-set-for-april-15

IR-2020-70, April 13, 2020 WASHINGTON — The Internal Revenue Service reminds taxpayers they have several options to schedule and pay federal taxes electronically that are due on July 15. Taxpayers with payments scheduled for April 15 also have a midnight Monday deadline to reschedule payments. Several options allow taxpayers to schedule payments up to a year in advance. For taxpayers using Direct Pay and Electronic Funds Withdrawal (EFW) with payments scheduled for April 15, they will need to take special steps to reschedule their payments if they would like a later date. Direct Pay and EFW users with a scheduled April 15 deadline will need to reschedule these payments before midnight Eastern time on Monday. In Notice 2020-18PDF, the Treasury Department and the Internal Revenue Service announced special Federal income tax return filing and payment relief in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency. The Federal income tax filing due date is automatically extended from April 15 to July 15. Taxpayers can also defer federal income tax payments due on April 15 to July 15 without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Filing and paying federal taxes due by July 15 Taxpayers can schedule their payment electronically online, by phone or using their mobile device and the IRS2Go app. Scheduling or rescheduling your payment For taxpayers looking to reschedule or schedule their federal tax payments, the IRS offers two payment options where payments can be scheduled up to 365 days in advance. These two options are optimal for those who cancelled their payments that were due April 15 and want to reschedule their payment to the July 15 due date. They are: Electronic Federal Tax Payments System (EFTPS) is free, and taxpayers can schedule their estimated and other federal tax payments up to 365 days in advance. New enrollments for EFTPS can take up to five business days to process. Debit, credit card or digital wallet can be scheduled through a payment processor up to 365 days in advance. The payment processors charge a fee; no fees go to the IRS. Additional electronic payment options Additional payment options and explanations on how to cancel payments already scheduled are available on IRS.gov/payments. Bank Account (Direct Pay): You can pay for free with your bank account using Direct Pay, where taxpayers can schedule a payment up to 30 days in advance. Payments for the July 15 due date can be scheduled beginning June 15. Scheduled payments need to be cancelled at least two days in advance. This means taxpayers who originally scheduled their payment on April 15 and want to reschedule it for later need to take action no later than Monday, April 13 at midnight Eastern time. Paying when filing electronically Taxpayers who filed electronically and scheduled their payment with an Electronic Funds Withdrawal, and want to reschedule their payment to the July 15 due date, can call the IRS e-file Payment Services automated line at 888-353-4537 to cancel their payment no later than 11:59 p.m. Eastern time two business days prior to the scheduled payment date. This means taxpayers who originally scheduled their payment on April 15 and want to reschedule it for July 15, need to take action no later than Monday, April 13 at midnight Eastern time. Taxpayers are reminded that they will need to schedule their tax payment for the new tax deadline date of July 15. EFW payments cannot be resubmitted. Taxpayers should select a different electronic payment option to reschedule the payments.  Need more time to file? Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension two ways. Filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Submitting an electronic payment with Direct Pay, Electronic Federal Tax Payment System or by debit, credit card or digital wallet options and selecting Form 4868 or extension as the payment type. The automatic extension of time to file will process when you pay all or part of your taxes electronically by the July 15 due date. An extension to file is not an extension to pay. Taxes are still due by your original due date. Estimated Payments Estimated tax payments, for tax year 2020, originally due April 15 and June 15 are now due July 15. 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. IRS offers two free electronic payment options, where taxpayers can schedule their estimated federal tax payments up to 30 days in advance, with Direct Pay or up to 365 days in advance, with the Electronic Federal Tax Payment System (EFTPS). For details on how to cancel a specific type of payment, see question 14 in our Filing and Payment Deadlines Questions and Answers page.

https://www.irs.gov/newsroom/treasury-irs-launch-new-tool-to-help-non-filers-register-for-economic-impact-payments

IRS.gov feature helps people who normally don't file get payments; second tool next week provides taxpayers with payment delivery date and provide direct deposit information IR-2020-69, April 10, 2020 WASHINGTON — To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don't have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool. "People who don't have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible," said IRS Commissioner Chuck Rettig. "The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people." The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those people receiving Social Security retirement, survivors, disability (SDDI), or survivor benefits and Railroad Retirement benefits. How do I use the Non-Filers: Enter Payment Info tool? For those who don't normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for "Non-Filers: Enter Payment Info Here." Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account. Otherwise, your payment will be mailed to you. "Non-Filers: Enter Payment Info" is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance's offerings of free products on IRS.gov. Who should use the Non-Filers tool? This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don't receive Social Security retirement, disability (SSDI), or survivor benefits or Railroad Retirement benefits. Others who should consider the Non-Filers tool as an option, include: Lower income: Among those who could use Non-Filers: Enter Payment Info tool are those who haven't filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019. Veterans beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups. Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child. Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool. Coming next week: Automatic payments begin Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement, survivors or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future. Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them. An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery. More Information on Economic Impact Payments The IRS will post additional updates on IRS.gov/coronavirus on these and other issues.

https://www.irs.gov/newsroom/irs-urges-taxpayers-to-use-electronic-options-outlines-online-assistance

Updated May 11, 2020 IR-2020-68, April 9, 2020 WASHINGTON — The Internal Revenue Service today reminds taxpayers and tax professionals to use electronic options to support social distancing and speed the processing of tax returns, refunds and payments. To protect the public and employees, and in compliance with orders of local health authorities around the country, certain IRS services such as live assistance on telephones, processing paper tax returns and responding to correspondence are extremely limited or suspended until further notice. All Taxpayer Assistance Centers remain temporarily closed as are many volunteer tax preparation sites until further notice. This will not affect the IRS's ability to deliver Economic Impact Payments, which taxpayers will begin receiving next week. Although the tax filing deadline has been extended to July 15, 2020, from April 15, the IRS continues to process electronic tax returns, issue direct deposit refunds and accept electronic payments. As of April 3, the IRS received over 97.4 million tax returns and issued over $213 billion in refunds. IRS operational status and alternatives Paper Tax Returns: All taxpayers should file electronically through their tax preparer, tax software provider or IRS Free File if possible. The IRS is not currently able to process individual paper tax returns. If you already have filed via paper but it has not yet been processed, do not file a second tax return or write to the IRS to inquire about the status of your return or your economic impact payment. Paper returns will be processed  once processing centers are able to reopen. This year, more than 90% of taxpayers have filed electronically. Ordering Forms: The IRS's National Distribution Center is closed until further notice. We are not able to take any orders for forms or publications to be mailed during this time. Most forms and publications are available for download electronically at IRS.gov/forms. Web Options: IRS.gov remains the best source for tax law questions, checks on refund status and tax payments. All IRS updates on the Economic Impact Payments and other Covid-19 related issues also will be posted immediately on IRS.gov/coronavirus. Taxpayers can check their refund status at Where's My Refund? or obtain a tax transcript at Get Transcript Online. Tax transcripts are only available online at this time. Taxpayers also can make tax payments through Direct Pay. Taxes due must be paid by July 15. The Interactive Tax Assistant can help answer tax law questions. There currently are no email options that will generate answers to questions posed by taxpayers. Publication 5136, IRS Services GuidePDF, is a good source of information. Telephone Options: Automated phone lines: which handle most taxpayer calls - also will remain available during this period. Some tax compliance lines also remain available. IRS phone lines supported by customer service representatives for both taxpayers and tax professionals are not staffed at this time. To check on regular tax refund status via automated phone, call 800-829-1954. (This line has no information on Economic Impact Payments.) Practitioner Priority Service (PPS): Due to staff limitations the Practitioner Priority Service line is temporarily closed until further notice. The IRS is unable to process Centralized Authorization File (CAF) requests at this time. IRS.gov remains the first option for answers to questions. Practitioners with e-Services accounts and with client authorization can access the Transcript Delivery System to obtain prior-year transcripts. Taxpayers should use Where's My Refund? and Get Transcript, both common requests. However, the Get Transcript by Mail option should not be used since the offices that print and mail the transcripts are closed. Taxpayer correspondence: While the IRS is receiving and storing mail, our mail processing functions have been scaled back to comply with social distancing recommendations. Currently, we have reduced responses to paper correspondence. Our primary concern is serving taxpayers as indicated in the People First Initiative, which includes numerous actions to alleviate taxpayer burden during this time. Taxpayers who mail correspondence to the IRS during this period should expect to wait longer than usual for a response. Once normal operations resume it will take the IRS time to work through any correspondence backlog. Correspondence sent to IRS offices may be returned to the taxpayer if that office is closed and no one is available to accept them.  U.S. Residency Certification: The Philadelphia Accounts Management Campus is currently closed. Processing of the US Residency Certification Program is temporarily suspended. Normal operations will resume as soon as possible. Taxpayer Protection Program: If you received correspondence from the IRS asking if you filed a suspicious tax return, you may use the online Identity Verification Service to validate your identity. Because the IRS cannot take calls or appointments right now, this is the only present option and is only for taxpayers who receive IRS letters asking them to authenticate their identity via online, telephone or in-person and confirm whether they filed the tax return in question. NOTE: Check our Operations Status for updates. (updated May 11, 2020)

https://www.irs.gov/newsroom/irs-provides-guidance-under-the-cares-act-to-taxpayers-with-net-operating-losses

IR-2020-67, April 9, 2020 WASHINGTON — The Internal Revenue Service today issued guidance providing tax relief under the CARES Act for taxpayers with net operating losses. Recently the IRS issued tax relief for partnerships filing amended returns. COVID Relief for taxpayers claiming NOLs Revenue Procedure 2020-24PDF provides guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for: waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021, disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and waiving a carryback period, reducing a carryback period, or revoking an election to waive a carryback period for a taxable year that began before Jan. 1, 2018, and ended after Dec. 31, 2017. Six month extension of time for filing NOL forms In Notice 2020-26PDF, the IRS grants a six-month extension of time to file Form 1045 or Form 1139, as applicable, with respect to the carryback of a net operating loss that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.  Individuals, trusts, and estates would file Form 1045PDF, and corporations would file Form 1139PDF. COVID relief for partnerships On April 8, 2020, the IRS issued Revenue Procedure 2020-23PDF, allowing eligible partnerships to file amended partnership returns using a Form 1065, U.S. Return of Partnership Income, by checking the “Amended Return” box and issuing amended Schedules K-1, Partner’s Share of Income, Deductions, Credits, to each of its partners. Partnerships filing these amended returns should write “FILED PURSUANT TO REV PROC 2020-23” at the top of the amended return.

https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others

IR-2020-66, April 9, 2020 WASHINGTON — To help taxpayers, the Department of Treasury and the Internal Revenue Service announced today that Notice 2020-23PDF extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due. Today’s notice expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due. Extension of time to file beyond July 15 Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to Oct. 15, 2020, by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004. An extension to file is not an extension to pay any taxes owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by the July 15, 2020, deadline to avoid additional interest and penalties. Estimated Tax Payments Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.   2016 unclaimed refunds – deadline extended to July 15 For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. The law provides a three-year window of opportunity to claim a refund.  If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15, 2020, date. IRS.gov assistance 24/7 IRS live telephone assistance is currently unavailable due to COVID-19. Normal operations will resume when possible. Tax help is available 24 hours a day 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, Frequently Asked Questions, and Tax Trails to get answers to common questions. Those who have already filed can check their refund status by visiting IRS.gov/Refunds.  

https://www.irs.gov/newsroom/follow-irs-on-social-media-sign-up-for-e-news-subscriptions-for-urgent-updates-on-covid-19-scams-and-economic-impact-payment-information

IR-2020-65, April 3, 2020 WASHINGTON — The Internal Revenue Service reminded taxpayers, businesses, tax professionals and others to follow the agency's official social media accounts and email subscription lists to get urgent information on COVID-19 and economic impact payments. These platforms provide the latest alerts and information on various tax topics to include emerging scams. These platforms are especially important during the COVID-19 pandemic. Recent changes to filing and payment deadlines, coupled with new business credits and economic impact payments make these free and reliable communications crucial for anyone wanting the latest information. "The IRS is committed to sharing information as quickly as possible about the economic impact payments and other tax issues related to the coronavirus," said IRS Commissioner Chuck Rettig. "IRS social media channels offer taxpayers and others another fast, easy option to get the latest details as the IRS employees continue to work hard to support the nation." Taxpayers can follow key IRS social media platforms The IRS uses several social media tools including: Twitter: Taxpayers, businesses and tax professionals can follow the IRS handles for up to the minute announcements, tips and alerts in English and Spanish. Facebook: News and information for everybody. Also available in Spanish. Instagram: The IRS Instagram account shares taxpayer-friendly information. YouTube: The IRS offers video tax tips in English, Spanish and American Sign Language. LinkedIn: The IRS shares key agency communications and job opportunities. When using social media to connect with the IRS, verify the accounts by going first to IRS.gov/socialmedia. Taxpayers are urged to watch for IRS impersonators and other scammers, which can try imitating the IRS during crisis situations and natural disasters. The IRS reminds taxpayers to never give out personal or financial information to anyone alleging to represent the IRS on a social media platform or in unsolicited emails, texts or calls. The IRS also has a free mobile app, IRS2Go, where taxpayers can check their refund status, pay taxes, find free tax help, watch IRS YouTube videos and get daily tax tips. The IRS2Go app is available from the Google Play Store for Android devices, or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish. Get automatic updates by email The IRS e-News Subscription service issues tax information by email for many different audiences. It provides tips, tools and helpful materials of interest to taxpayers and organizations. The IRS offers subscription services tailored to tax exempt and government entities, small and large businesses as well as individuals. The service is easy to use; sign up by visiting IRS e-News Subscriptions. The IRS currently has 20 registration-based e-News options, including: IRS Outreach Connection − This newest IRS subscription offering delivers up-to-date materials for tax professionals and partner groups inside and outside the tax community. The material for Outreach Connection is specifically designed so subscribers can share the material with their clients or members through email, social media, internal newsletters, e-mails or external websites. Subscribe by visiting IRS.gov/outreachconnect. IRS Tax Tips – These brief, concise tips in plain language cover a wide-range of topics of general interest to taxpayers. They include the latest on tax scams, tax reform, tax deductions, filing extensions and amending returns. IRS Tax Tips are distributed daily during tax season and periodically throughout the year. IRS Newswire − Subscribers to IRS Newswire receive news releases the day they are issued. These cover a wide range of tax administration issues ranging from breaking news to details related to legal guidance. IRS News in Spanish (Noticias del IRS en Español) − Readers get IRS news releases, tax tips and updates in Spanish as they are released. Subscribe at Noticias del IRS en Español. e-News for Tax Professionals − Includes a weekly roundup of news releases and legal guidance specifically designed for the tax professional community. Subscribing to e-News for Tax Professionals gets tax pros a weekly summary, typically delivered on Friday afternoons. For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions. The resources will help taxpayers and organizations keep up with the latest information during and after filing season.

https://www.irs.gov/newsroom/irs-issues-warning-about-coronavirus-related-scams-watch-out-for-schemes-tied-to-economic-impact-payments

IR-2020-64, April 2, 2020 WASHINGTON — The Internal Revenue Service today urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft. "We urge people to take extra care during this period. The IRS isn't going to call you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster," said IRS Commissioner Chuck Rettig. "That also applies to surprise emails that appear to be coming from the IRS. Remember, don't open them or click on attachments or links. Go to IRS.gov for the most up-to-date information." Taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information. "History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need," said IRS Criminal Investigation Chief Don Fort. "While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant." Don't fall prey to Coronavirus tricks; retirees among potential targets The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April. If the IRS does not have a taxpayer's direct deposit information, a check will be mailed to the address on file. Taxpayers should not provide their direct deposit or other banking information for others to input on their behalf into the secure portal. The IRS also reminds retirees who don't normally have a requirement to file a tax return that no action on their part is needed to receive their $1,200 economic impact payment. Seniors should be especially careful during this period. The IRS reminds retirees – including recipients of Forms SSA-1099 and RRB-1099 − that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments. The IRS is sending these $1,200 payments automatically to retirees – no additional action or information is needed on their part to receive this. The IRS reminds taxpayers that scammers may: Emphasize the words "Stimulus Check" or "Stimulus Payment." The official term is economic impact payment. Ask the taxpayer to sign over their economic impact payment check to them. Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment. Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer's behalf. This scam could be conducted by social media or even in person. Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it. Reporting Coronavirus-related or other phishing attempts Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to phishing@irs.gov. Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov. Official IRS information about the COVID-19 pandemic and economic impact payments can be found on the Coronavirus Tax Relief page on IRS.gov. The page is updated quickly when new information is available.

https://www.irs.gov/newsroom/irs-extends-deadline-for-2021-taxpayer-advocacy-panel-applications-adds-new-members-for-the-2020-panel

IR-2020-63, April 1, 2020 WASHINGTON — The IRS has extended the deadline for members of the public to apply for membership on the Taxpayer Advocacy Panel for 2021. Individuals may submit a TAP application online at www.improveirs.org through April 20, 2020. Please consider this opportunity to make a difference in how the IRS delivers products and services. A video is available with information about the TAP and how volunteers can contribute to this dynamic group. New members for 2020 The Internal Revenue Service recommended, and the Department of the Treasury has approved, the selection of 33 new members to serve on the TAP for 2020. The new TAP members will join 32 returning members to round out the panel of 65 volunteers for 2020. The new members were selected from a pool of more than 300 interested individuals who applied during an open recruitment period last spring and alternate members who applied in prior years. The TAP is a federal advisory committee charged with listening to taxpayers, identifying issues, and making suggestions 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 that helps resolve taxpayer problems and makes administrative and legislative recommendations to mitigate systemic problems. Members of the TAP work on a variety of issues that impact taxpayers in the 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. TAP members are U.S. citizens who 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 from abroad who represents the interests of taxpayers working, living, or doing business abroad or in a U.S. territory. The new TAP members by location: Name City State James Sharmat Santa Monica CA Sandy Villella Wildomar CA Cynthia Torres Riverside CA Martha Lewis Colorado Springs CO Barbara Snowden West Haven CT Alexas Pickron Townsend DE Joseph Magyar Tampa FL Charles Jones Green Cove Springs FL Nina Tross Apollo Beach FL Ying Sa Des Moines IA Hercules Iraklis Analitis Urbana IL Jordan Bayles Terre Haute IN Paula King Lexington KY Kimberly Shepherd Monroe LA Dorothy Havey Lincolnville ME Jocelyn Gutowski Saint Robert MO Jessica Wilson Byram MS Jim Buttonow Summerfield NC Edward Donvan Holly Springs NC Cedric Obiaka Omaha NE Kenneth Lewis New York City NY T Renee Parker Brentwood NY Patrice Brown Brooklyn NY Thomas Kerr Amherst NY Laurie Brock Eugene OR Lindsey Funair Du Bois PA Michael Avery San Juan PR Brandon Ruest North Providence RI Leigh Ann Wood Columbia SC Joseph Edelen Vermillion SD Marlon Bell Pearland TX Cassandra Knight-Paige Houston TX Richard Brouillard Waterloo WI Taxpayers can contact the TAP representative for their geographic area by calling 888-912-1227 (a toll-free call) or online at www.improveirs.org. Taxpayers can also send written correspondence to the TAP at the following address: Taxpayer Advocacy Panel TA:TAP, Room 1509 1111 Constitution Avenue, NW Washington, DC 20224

https://www.irs.gov/newsroom/treasury-irs-provide-regulations-to-help-businesses-claim-credits-for-carbon-capture

IR-2020-108, May 28, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today issued proposed regulations PDF to help businesses understand how legislation passed in 2018 may benefit those claiming carbon capture credits. The proposed regulations provide guidance regarding two new credits for carbon oxide captured using equipment originally placed in service on or after February 9, 2018, allowing up to: $50 per metric ton of qualified carbon oxide for permanent sequestration, and up to $35 for Enhanced Oil Recovery purposes.  Neither of these new credits is subject to a limitation on the number of metric tons of qualified carbon oxide captured.  The new law also expanded carbon capture to include “qualified carbon oxide,” a broader term than “qualified carbon dioxide.”  Prior to the change in law, carbon capture was limited to a total of 75,000,000 metric tons of qualified carbon oxide.  Additionally, the proposed regulations address issues for which taxpayers had questions, including: procedures to determine adequate security measures for the geological storage of qualified carbon oxide, exceptions to the general rule for determining who the credit is attributable to, procedures for a taxpayer to make an election to allow third-party taxpayers to claim the credit, standards for measuring utilization of qualified carbon oxide and rules for credit recapture. Prior guidance After the enactment of the Bipartisan Budget Agreement in February 2018, the IRS issued Notice 2019-32PDF requesting comments from taxpayers regarding the changes to the carbon capture credit in the new law. After carefully considering the comments, the IRS is issuing the proposed regulations to provide clarity.  Earlier this year, the IRS issued other guidance regarding the definition of "beginning of construction" and providing a safe harbor for partnerships. In Notice 2020-12PDF, the IRS provides guidance to help businesses determine when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the carbon capture credit. This notice provides broad guidance in lieu of taxpayers requesting private letter rulings in this area. In Revenue Procedure 2020-12PDF , the IRS creates a safe harbor for the allocation rules for carbon capture partnerships similar to the safe harbors developed for partnerships receiving the wind energy production tax credit and the rehabilitation credit. The safe harbor simplifies the application of carbon capture credit rules to partnerships able to claim the credit.

https://www.irs.gov/newsroom/irs-announces-form-1040-x-electronic-filing-options-coming-this-summer-major-milestone-reached-for-electronic-returns

IR-2020-107, May 28, 2020 WASHINGTON — The Internal Revenue Service announced today that later this summer taxpayers will for the first time be able to file their Form 1040-X, Amended U.S Individual Income Tax Return, electronically using available tax software products. Making the 1040-X an electronically filed form has been a goal of the IRS for a number of years. It's also been an ongoing request from the nation's tax professional community and has been a continuing recommendation from the Internal Revenue Service Advisory Council (IRSAC) and Electronic Tax Administration Advisory Committee (ETAAC). Currently, taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form. "This new process is a major milestone for the IRS, and it follows hard work by people across the agency," said IRS Commissioner Chuck Rettig. "E-filing has been one of the great success stories of the IRS, and more than 90 percent of taxpayers use it routinely. But the big hurdle that's been remaining for years is to convert amended returns into this electronic process. Our teams have worked diligently to overcome the unique challenges related to the 1040-X, and we look forward to offering this new service this summer." About 3 million Forms 1040-X are filed by taxpayers each year. The new electronic filing option will provide the IRS with more complete and accurate data in an easily readable format to enable customer service representatives to answer taxpayers' questions. Taxpayers can still use the "Where's My Amended Return?" online tool to check the status of their electronically-filed 1040-X. When the electronic filing option becomes available, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically. In general, taxpayers will 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. Additional enhancements are planned for the future. "Adding amended returns to the electronic family also complements our partnership with the tax software industry, which continues to work with us to provide better ways to help taxpayers," said Ken Corbin, Commissioner of the IRS Wage and Investment division.

https://www.irs.gov/newsroom/treasury-irs-provide-safe-harbor-for-taxpayers-that-develop-renewable-energy-projects

IR-2020-106, May 27, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today provided tax relief for taxpayers that develop renewable energy projects that produce electricity from sources such as wind, biomass, geothermal, landfill gas, trash, and hydropower, and use technologies such as solar panels, fuel cells, microturbines, and combined heat and power systems. Because COVID-19 has caused industry-wide delays in the supply chain for components needed to complete renewable energy projects otherwise eligible for important tax credits the IRS has issued Notice 2020-41PDF to provide tax relief to affected taxpayers. For some projects that began construction in 2016 or 2017, Notice 2020-41 adds an extra year to the four year "Continuity Safe Harbor" provided in existing guidance, such that if these projects are placed in service in five years construction will be deemed continuous. Notice 2020-41 also provides a 3½ Month Safe Harbor for services or property paid for by the taxpayer on or after September 16, 2019 and received by October 15, 2020.  By extending the Continuity Safe Harbor and providing a 3½ Month Safe Harbor, today's guidance will provide flexibility for taxpayers to satisfy the beginning of construction requirements and limit the impact of COVID-19-related delays on the ability to claim tax credits. Additional information about tax relief for businesses affected by the COVID-19 pandemic can be found on IRS.gov.

https://www.irs.gov/newsroom/economic-impact-payments-being-sent-by-prepaid-debit-cards-arrive-in-plain-envelope-irsgov-answers-frequently-asked-questions

IR-2020-105, May 27, 2020 WASHINGTON – As Economic Impact Payments continue to be successfully delivered, the Internal Revenue Service today reminds taxpayers that some payments are being sent by prepaid debit card. The debit cards arrive in a plain envelope from "Money Network Cardholder Services." Nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers received a debit card was made by the Bureau of the Fiscal Service, a part of the Treasury Department that works with the IRS to handle distribution of the payments. Those who receive their Economic Impact Payment by prepaid debit card can do the following without any fees. Make purchases online and at any retail location where Visa is accepted Get cash from in-network ATMs Transfer funds to their personal bank account Check their card balance online, by mobile app or by phone This free, prepaid card also provides consumer protections available to traditional bank account owners, including protection against fraud, loss and other errors. Frequently asked questions continually updated on IRS.gov The IRS has two sets of frequently asked questions to help Americans get answers about their Economic Impact Payments, including those arriving on prepaid debit card. These FAQs include answers to eligibility and other many common questions, including help to use two Economic Impact Payment tools. Get My Payment, an IRS online tool, shows the projected date when a direct deposit has been scheduled or date when the payment will be mailed by check or prepaid debit card. The Non-Filers Enter Payment Info Here tool helps taxpayers successfully submit basic information to receive Economic Impact Payments quickly. The IRS regularly updates the Economic Impact Payment and the Get My Payment frequently asked questions pages on IRS.gov as more information becomes available. Taxpayers should check the FAQs often for the latest additions. Here are answers to some of the top questions people are asking about the prepaid debit cards: Can I have my economic impact payment sent to my prepaid debit card? Maybe. It depends on your prepaid card and whether your payment has already been scheduled. Many reloadable prepaid cards have account and routing numbers that you could provide to the IRS through the Get My Payment application or Non-Filers: Enter Payment Info Here tool. You would need to check with the financial institution to ensure your card can be re-used and to obtain the routing number and account number, which may be different from the card number. If you obtained your prepaid debit card through the filing of a federal tax return, you must contact the financial institution that issued your prepaid debit card to get the correct routing number and account number. Do not use the routing number and account number shown on your copy of the tax return filed. When providing this information to the IRS, you should indicate that the account and routing number provided are for a checking account unless your financial institution indicates otherwise. Will IRS be sending prepaid debit cards? Some payments may be sent on a prepaid debit card known as The Economic Impact Payment Card The Economic Impact Payment Card is sponsored by the Treasury Department's Bureau of the Fiscal Service, managed by Money Network Financial, LLC and issued by Treasury's financial agent, MetaBank®, N.A. If you receive an Economic Impact Payment Card, it will arrive in a plain envelope from "Money Network Cardholder Services." The Visa name will appear on the front of the Card; the back of the Card has the name of the issuing bank, MetaBank®, N.A. Information included with the Card will explain that the card is your Economic Impact Payment Card. Please go to EIPcard.com for more information. Can I specifically ask the IRS to send the Economic Impact Payment to me as a debit card? Not at this time. For those who don't receive their Economic Impact Payment by direct deposit, they will receive their payment by paper check, and, in a few cases, by debit card. The determination of which taxpayers receive a debit card will be made by the Bureau of the Fiscal Service (BFS), another part of the Treasury Department that works with the IRS to handle distribution of the payments. BFS is sending nearly 4 million debit cards to taxpayers starting in mid-May. At this time, taxpayers cannot make a selection to receive a debit card. Please go to EIPcard.com for more information. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information. Quick links to the Frequently Asked Questions on IRS.gov: Economic Impact Payments: www.irs.gov/eipfaq Get My Payment tool: www.irs.gov/getmypaymentfaq Please go to EIPcard.com for more information about prepaid debit cards.

https://www.irs.gov/newsroom/irs-provides-guidance-on-income-tax-withholding-on-certain-periodic-retirement-and-annuity-payments

IR-2020-104, May 27, 2020 WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service today issued a proposed regulation updating the federal income tax withholding rules for periodic retirement and annuity payments made after December 31, 2020. Prior to the Tax Cuts and Jobs Act (TCJA), if no withholding certificate was in effect for a taxpayer's periodic payments, the amount to be withheld from the payments was determined by treating the taxpayer as a married individual claiming three withholding exemptions. The TCJA amended this rule to provide that the rate of withholding on periodic payments when no withholding certificate is in effect would instead be determined under rules prescribed by the Secretary of the Treasury. In Notice 2020-03PDF, the IRS provided that, for 2020 the default rate of withholding on periodic payments will continue to be based on treating the taxpayer as a married individual claiming three withholding allowances when no withholding certificate is in effect. Under the proposed regulation for 2021 and future calendar years, the Treasury Department and the IRS will provide the rules and procedures for determining the default rate of withholding on periodic payments when a taxpayer has no withholding certificate in effect in applicable forms, instructions, publications and other guidance. For more information about this and other TCJA provisions, visit IRS.gov/taxreform.

https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-providing-relief-for-certain-tax-exempt-organizations

IR-2020-103, May 26, 2020 WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued final regulationsPDF clarifying the reporting requirements generally applicable to tax-exempt organizations. The final regulations reflect statutory amendments and certain grants of reporting relief announced by the Treasury Department and the IRS in prior guidance to help many tax-exempt organizations generally find the reporting requirements in one place. Among other provisions, the final regulations incorporate the existing exception from having to file an annual return for certain organizations that normally have gross receipts of $50,000 or less. That exception was previously announced in Revenue Procedure 2011-15. The regulations also provide that the requirement to report contributor names and addresses on annual returns generally applies only to returns filed by Section 501(c)(3) organizations and Section 527 political organizations. All tax-exempt organizations must continue to maintain the names and addresses of their substantial contributors in their books and records. This change will have no effect on transparency, as contributor information that is open to public inspection will be unaffected by this regulation. The final regulations allow tax-exempt organizations to choose to apply the regulations to returns filed after September 6, 2019.

https://www.irs.gov/newsroom/irs-fraud-enforcement-program-adds-schenck-as-national-fraud-counsel

IR-2020-102, May 26, 2020 WASHINGTON – The Internal Revenue Service has named attorney Carolyn Schenck as the National Fraud Counsel serving the agency's new Fraud Enforcement Program.  Schenck currently serves as Assistant Division Counsel (International) in the Small Business/Self Employed (SB/SE) Division of the IRS Office of Chief Counsel. For more than 10 years, she has been assigned as counsel to the IRS Offshore Compliance Initiative. "Carolyn is extremely well-regarded in the practitioner community and brings unparalleled experience to the job," IRS Commissioner Chuck Rettig said. Schenck will be working closely with Eric Hylton, SB/SE Division Commissioner; Damon Rowe, Director of Fraud Enforcement; and Brendan O'Dell, the new IRS Promoter Investigation Coordinator. She will help provide advice on the Fraud Enforcement Program's design, development, and delivery of major activities in support of Service-wide efforts to detect and deter fraud. "We are very pleased with Carolyn's selection as the Chief Counsel National Fraud Counsel, which could not have come at a more opportune time," Chief Counsel Michael Desmond said. "With the critical role the IRS is playing in responding to the unprecedented challenges of the COVID pandemic, having someone with her talent and experience should send a strong signal that those who seek to take advantage of the situation will face dire consequences." As Assistant Division Counsel (International), Schenck has been responsible for coordination and management of all international and offshore tax and Report of Foreign Bank and Financial Accounts (FBAR) matters under the jurisdiction of SB/SE Division Counsel. She helped to ensure the government consistently applies law and policy in international and offshore tax and FBAR matters, including in non-docketed cases and cases docketed in the U.S. Tax Court, U.S. district courts, the Court of Federal Claims and the U.S. Courts of Appeals. Schenck also provides guidance to and serves as the principal legal advisor and contact point on international and offshore tax and FBAR matters to the SB/SE Division and the Withholding and International Individual Compliance function of the IRS Large Business and International Division. Her international work also involves John Doe summons actions, the Offshore Voluntary Disclosure programs and Streamlined Filing Compliance Procedures, working with Treaty partners on cross-border issues and cases, and conducting nationwide trainings for attorneys and agents on investigative techniques, evidence and substantive tax issues. Schenck has litigated numerous cases in U.S. Tax Court on behalf of the IRS. She also works with IRS special enforcement agents on cases involving fraud, foreign accounts, and foreign reporting penalties; she also assists the Department of Justice in cases involving criminal tax prosecutions, injunctions, summons enforcement, and abusive tax return preparers and promoters. Schenck has also focused her efforts as of late on virtual currency with the civil and criminal divisions, to shape the compliance and enforcement efforts of the IRS. Prior to joining the IRS, Schenck was an attorney for the Division of Enforcement at the Securities and Exchange Commission. She also worked for Chief Judge Alex Kozinski of the Ninth Circuit and Chief Judge H. Robert Mayer of the Federal Circuit Courts of Appeals. Before her law career, Schenck worked for U.S. Senator John McCain and as a weapons analyst.

https://www.irs.gov/newsroom/treasury-irs-release-latest-state-by-state-economic-impact-payment-figures-for-may-22-2020

IR-2020-101, May 22, 2020 WASHINGTON — The Treasury Department and the Internal Revenue Service today released updated state-by-state figures for Economic Impact Payments reflecting the opening weeks of the program. "Economic Impact Payments have continued going out at a rapid rate to Americans across the country," said IRS Commissioner Chuck Rettig. "We remind people to visit IRS.gov for the latest information, including answers to the most common questions we see surrounding the payments. We also continue to urge those who don't normally have a filing requirement, including those with little or no income, that they can quickly register for the payments on IRS.gov." Millions of people who do not typically file a tax return are eligible to receive these payments. Payments are automatic for people who filed a tax return in 2018 or 2019, receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn't file a tax return in the last two years. For those who don't receive federal benefits and didn't have a filing obligation in 2018 or 2019, the IRS continues to encourage them to visit the Non-Filer tool at IRS.gov so they can quickly register for Economic Impact Payments. People can continue to receive their payment throughout the year. Economic Impact Payments, totals by State State State postal code Total Number of EIP Payments Total Amount of EIP Payments Alabama AL 2,332,771  $    3,988,469,624 Alaska AK 333,429  $       580,774,111 Arizona AZ 3,242,043  $    5,573,167,261 Arkansas AR 1,428,624  $    2,496,524,966 California CA 16,869,636  $  27,897,283,972 Colorado CO 2,605,089  $    4,407,408,401 Connecticut CT 1,601,397  $    2,609,644,445 Delaware DE 463,653  $       778,262,906 District of Columbia DC 308,306  $       421,734,460 Florida FL 10,618,792  $  17,546,164,251 Georgia GA 4,763,109  $    8,081,253,826 Hawaii HI 691,424  $    1,179,264,436 Iowa IA 1,477,214  $    2,660,402,672 Idaho ID 808,118  $    1,512,453,150 Illinois IL 5,729,351  $    9,630,495,809 Indiana IN 3,174,698  $    5,613,824,661 Kansas KS 1,310,151  $    2,359,448,490 Kentucky KY 2,199,370  $    3,824,826,391 Louisiana LA 2,186,332  $    3,680,836,165 Maine ME 714,941  $    1,215,239,330 Maryland MD 2,692,062  $    4,380,831,484 Massachusetts MA 3,136,787  $    5,028,963,151 Michigan MI 4,813,156  $    8,286,614,929 Minnesota MN 2,613,771  $    4,577,086,990 Mississippi MS 1,427,440  $    2,422,655,854 Missouri MO 2,933,973  $   5,118,911,639 Montana MT 527,902  $       932,003,084 Nebraska NE 887,877  $    1,611,581,538 Nevada NV 1,496,510  $    2,484,078,422 New Hampshire NH 676,004  $    1,139,776,925 New Jersey NJ 3,955,396  $    6,507,621,505 New Mexico NM 997,072  $    1,684,917,178 New York NY 9,341,632  $  15,034,060,259 North Carolina NC 4,820,974  $    8,264,415,092 North Dakota ND 354,768  $       632,983,746 Ohio OH 5,828,477  $    9,833,041,489 Oklahoma OK 1,799,803  $    3,190,860,867 Oregon OR 2,031,861  $    3,425,278,483 Pennsylvania PA 6,258,107  $  10,596,406,088 Rhode Island RI 536,218  $       869,615,684 South Carolina SC 2,443,864  $    4,174,979,940 South Dakota SD 416,962  $       759,483,658 Tennessee TN 3,305,606  $    5,693,071,645 Texas TX 12,396,590  $  21,635,810,592 Utah UT 1,287,162  $    2,494,199,291 Vermont VT 327,867  $       555,841,287 Virginia VA 3,796,975  $    6,447,589,217 Washington WA 3,453,810  $    5,876,091,642 West Virginia WV 913,264  $    1,578,210,674 Wisconsin WI 2,817,912  $    4,948,382,340 Wyoming WY 270,626  $       488,905,666 Foreign Addresses   748,724 $     1,222,795,510 Economic Impact Payment help available on IRS.gov IRS.gov has a variety of tools and resources available to help individuals and businesses navigate Economic Impact Payments and get the information they need about EIP and other CARES Act provisions. Economic Impact Payment FAQs: The IRS is seeing a variety of questions about Economic Impact Payments, ranging from eligibility to timing. These FAQs provide an overview and are updated frequently. Taxpayers should check the FAQs often for the latest additions; many common questions are answered on IRS.gov already, and more are being developed.

https://www.irs.gov/newsroom/irs-nationwide-tax-forums-go-virtual-in-2020

Tax pros can choose from up to 30 webinars beginning in July IR-2020-100, May 21, 2020 WASHINGTON — The Internal Revenue Service today announced the 2020 IRS Nationwide Tax Forums will be held virtually in 2020 with a series of live-streamed webinars beginning this July. "Given restrictions on large gatherings and difficulties with travel, we've made the decision to present the IRS Nationwide Tax Forums in a virtual format this year," IRS Commissioner Chuck Rettig said. "While we're unable to meet in person, tax professionals will still be able to choose from a wide variety of virtual seminars on tax law.Many will be able to fully satisfy their annual continuing education requirements by registering and attending." Held each summer for the past 30 years, the IRS Nationwide Tax Forums are the IRS's marquee outreach event to the tax professional community. The forums were scheduled to take place in six cities around the country this summer. Those in-person events are canceled. However, the change to a virtual format allows experts from the IRS and its association partners to still educate and update the tax professional community on tax law, cybersecurity, ethics and other topics. Seminar dates and agenda The 2020 Nationwide Tax Forums will begin on July 21 and continue through Aug. 20 with live-streamed webinars broadcast on Tuesdays, Wednesdays and Thursdays. Registration enables attendees to participate in all of the live webinars and earn up to 30 Continuing Education Credits at one price. As in previous years, the Nationwide Tax Forums agenda will feature a plenary session with tax law and publications update, as well as multiple sessions on high-interest topics such as qualified business income, exam and enforcement priorities, due diligence, cybersecurity and more. Presentations are made by both IRS experts and partner associations. This year several seminars, including the plenary session, will be provided in Spanish. Further details, including course titles, dates and times, will be available beginning in early June. 2020 registration and fees Tax professionals who register by June 15 at 5 p.m. ET qualify for an Early Bird rate of $240 per person. The standard rate, starting June 16, will be $289. Initial registration for the in-person 2020 forums began in March. Those who have already registered may transfer their registration to the virtual format at no additional cost. Refunds are available for those who choose not to participate. Registration information, as well as information on transfers and cancelations, is available at www.irstaxforum.com. Discounts for national association members Members of partner associations listed below qualify for a discount of $10 off the Early Bird rate, but only if they register by June 15. Participating association members should contact their association directly for more information: American Bar Association (ABA) Section of Taxation American Institute of Certified Public Accountants (AICPA) National Association of Enrolled Agents (NAEA) National Association of Tax Professionals (NATP) National Society of Accountants (NSA) National Society of Tax Professionals (NSTP) Low Income Taxpayer Clinics (LITC) Volunteer Income Tax Assistance Program (VITA) View presentations from past forums IRS PowerPoint Presentations from 2019 Tax Forums IRS PowerPoint Presentations from 2018 Tax Forums

https://www.irs.gov/newsroom/irsgov-helps-taxpayers-get-tax-information-they-need-find-tools-for-filing-paying-checking-accounts-and-answering-questions

IR-2020-99, May 21, 2020 WASHINGTON — The Internal Revenue Service reminds taxpayers today about several online tools available to help them get the tax information they need as the IRS has limited operations due to the coronavirus. More taxpayers are using IRS.gov than ever before; as of May 8, the agency's website had been visited a record 1 billion times, up 141% compared to the same time last year. The tools on IRS.gov are easy-to-use and available 24 hours a day. Millions of taxpayers use them to help file and pay taxes, find information about their accounts and get answers to tax questions. Take advantage of Free File products The IRS Free File program, available only through IRS.gov, offers 70% of all taxpayers the choice of 10 brand-name tax preparation software packages 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 those who earned $69,000 or less in 2019. Some of the Free File packages also offer free state tax return preparation. Any taxpayer, regardless of income, who is comfortable preparing their own taxes can use Free File Fillable Forms. Taxpayers also use this electronic version of paper IRS tax forms to file tax returns online. The IRS automatically extended the federal income tax filing due date from April 15, 2020, to July 15, 2020. Individual taxpayers who need more time to file their income tax returns beyond the July 15 deadline can use IRS Free File to electronically request an automatic tax-filing extension. This gives the taxpayer until Oct. 15 to file their tax return. To get the extension, the taxpayer must estimate their tax liability and pay any amount due. Choose from a variety of payment options Taxpayers should visit the "Pay" tab on IRS.gov to see their payment options. Most tax software products give taxpayers various payment options, including the option to withdraw the funds from a bank account. These include: IRS Direct Pay offers taxpayers a free, fast, secure and easy way to make an electronic payment from their bank account to the U.S. Treasury. Use an approved payment processor to pay by credit, debit card or digital wallet options for a fee. Make monthly or quarterly tax payments using IRS Direct Pay or through the Electronic Federal Tax Payment System. Pay by cash at a participating retail store. Last month, the IRS also announced that taxpayers generally have until July 15, 2020, to pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due. This includes estimated tax payments normally due April 15 and June 15, which are now extended to July 15, 2020. View tax account information online To see their tax account, taxpayers can use the View Your Account tool. They'll find information such as a payoff amount, the balance for each tax year owed, up to 24 months of their payment history and key information from their current tax year return as originally filed. Taxpayers can use the Get Transcript tool to view, print or download their tax transcripts after the IRS has processed the return. Taxpayers will notice a delay in the processing of their Forms 4506, Request for Copy of Tax Return, because of closed IRS offices due to COVID-19. Tax return transcripts show most line items from an original tax return, along with any forms and schedules, but not any changes made after the taxpayer filed it. The tool is free and available on IRS.gov. Ordering a tax transcript will not speed up a taxpayer's refund or provide an updated refund date. Taxpayers can easily find the most up-to-date information about their tax refund using the "Where's My Refund?" tool on IRS.gov and on the official IRS mobile app, IRS2Go. Within 24 hours after the IRS acknowledges receipt of an e-filed return, taxpayers can start checking on the status of their refund. Taxpayers should be aware that the IRS isn't currently processing paper tax returns due to the COVID-19 pandemic. Get answers to tax questions and Economic Impact Payments Taxpayers may find answers to many of their questions using the Interactive Tax Assistant (ITA), a tax law resource that works using a series of questions and provides responses. IRS.gov has answers for Frequently Asked Questions. The IRS website has tax information in: Spanish (Español); Chinese (中文); Korean (한국어); Russian (Pусский); Vietnamese (Tiếng Việt); and Haitian Creole (Kreyòl ayisyen). For questions concerning Economic Impact Payments, visit the Economic Impact Payments section of IRS.gov. Taxpayers will find two tools there to help them get their payments: "Get My Payment" and "Non-Filers: Enter Payment Info Here." Both tools are available in English and in Spanish. Taxpayers should use "Get My Payment" to check payment status, confirm payment type and enter bank account information for direct deposit if the IRS doesn't have that information and hasn't sent payment yet. Those who don't normally file taxes must use "Non-Filers: Enter Payment Info Here" to provide simple information, so they can get their payment. People who receive Social Security retirement or disability benefits (SSDI), Supplemental Security Income (SSI), Railroad Retirement benefits and VA Compensation and Pension (C&P) benefits don't use the "Non-Filers: Enter Payment Info Here" tool to receive their Economic Impact Payment. The IRS already has this information and those who receive these benefits will automatically receive $1,200. But, for those who receive benefits in these groups and have a qualifying child, they may be eligible for an additional $500 per child. However, their payment will be $1,200 and, by law, the IRS would pay the additional $500 per eligible child amount in association with a return filing for tax year 2020. For more information on the payments see the Economic Impact Payment FAQs and see our Get My Payment FAQs for more information about this tool. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information. The IRS is regularly updating Economic Impact Payments and Get My Payment application frequently asked questions pages on IRS.gov. Check IRS.gov/coronavirus often for the latest additions that answer many common questions.

https://www.irs.gov/newsroom/andy-keyso-named-chief-of-irs-independent-office-of-appeals

IR-2020-98, May 20, 2020 WASHINGTON – The Internal Revenue Service announced today that Andy Keyso has been selected to serve as the Chief of the IRS Independent Office of Appeals. Keyso, who has an extensive background with the IRS and Chief Counsel organizations, will set strategy and oversee the operations of Appeals, which seeks to resolve tax controversies between taxpayer and the IRS without litigation. Keyso has served as the Deputy Chief of Appeals since July 2017 and has been acting as the Appeals Chief since January. "Andy has a wide range of experience and expertise inside the IRS as well as Chief Counsel," said IRS Commissioner Chuck Rettig. "His leadership will complement the talented team of Appeals employees. Andy and Appeals have done a fabulous job of helping continue their important work during this challenging time." Appeals is independent of the IRS compliance functions, including the examination and collection functions that make tax assessments and initiate collection actions. Appeals' mission is to resolve tax controversies without litigation on a basis that is fair and impartial to both the government and taxpayers. Appeals has approximately 1,200 employees across the country. Prior to joining Appeals, Keyso had more than 25 years of experience across the IRS, including serving as the IRS Chief of Staff. Before joining the Chief of Staff's office, he served for 18 years in various positions in the IRS Office of Chief Counsel, including as Associate Chief Counsel of the Income Tax and Accounting Division. He previously served as Special Counsel to the Chief Counsel and as an attorney in the Procedure and Administration Division. Prior to joining Chief Counsel, Keyso was a revenue agent in the former Newark, New Jersey District, where he later served as a technical advisor to the Chief, Examination Division. Keyso is a graduate of Temple University School of Law, a member of the Pennsylvania Bar and a certified public accountant.

https://www.irs.gov/newsroom/irs-adds-phone-operators-to-answer-economic-impact-payment-questions

IR-2020-97, May 18, 2020 WASHINGTON — Today, the Internal Revenue Service is starting to add 3,500 telephone representatives to answer some of the most common questions about Economic Impact Payments. IRS telephone assistance and other services will remain limited, and answers for most of the common questions related to Economic Impact Payments are available on IRS.gov. The IRS anticipates bringing back additional assistors as state and local advisories permit. Answers for most Economic Impact Payment questions are available on the automated message for people who call the phone number provided in the letter (Notice 1444). Those who need additional assistance at the conclusion of the message will have the option of talking to a telephone representative. Americans are encouraged to use IRS.gov The IRS regularly posts new and updated answers to the most frequently asked questions about Economic Impact Payments and the Get My Payment tool. Those who wish to know the status of their Economic Impact Payment are reminded to check Get My Payment regularly; the information is frequently updated as the IRS continues to process the remaining payments for delivery. For those who are eligible for an Economic Impact Payment but aren't required to file a tax return, the IRS reminds them the Non-Filers tool also remains available in English or Spanish for them to register for a payment.

https://www.irs.gov/newsroom/irs-expands-partner-materials-for-economic-impact-payments-continues-sweeping-effort-to-share-details-in-multiple-languages

IR-2020-96, May 15, 2020 WASHINGTON — The Internal Revenue Service announced today the availability of additional material for partner groups sharing information related to Economic Impact Payments, including a new toolkit in Spanish and a variety of other print and visual items available. Even with more than 130 million Economic Impact Payments delivered to date and millions more on the way, there are still people who may not realize they may qualify for a payment of $1,200 or more. To help reach people who don't normally file a tax return, the IRS has embarked on a sweeping outreach effort to share information in multiple languages inside and outside the tax community. "From the enactment of the CARES Act, the IRS has embarked on an unprecedented outreach effort to share information about Economic Impact Payments," said IRS Commissioner Chuck Rettig. "We want to reach every eligible person and encourage everyone to share this information with family and friends, and groups and businesses to send it to partners and clients. During these difficult times, each of you can make a difference by helping us help others." The IRS has placed a special emphasis on partnering with new organizations that work with groups focusing on veterans, homeless, low-income taxpayers as well as non-English speaking audiences to share information about the payments. In all, the IRS has worked with thousands of partners across the country reaching organizations representing hundreds of millions of taxpayers. Special materials available on IRS.gov; Partner toolkit available in English and Spanish To help share information with your family, friends, partners and clients, the IRS has more than 40 ready-to-use materials available. These are available at Economic Impact Payments: Partner and Promotional Materials. These materials include: IRS e-posters and Twitter images that can be used on websites, social media, newsletters and other platforms. Print materials include Tax Tips, short, plain English summaries of EIP, and "Ready to Use" articles that can be shared with family, friends, partners and clients in emails, newsletters and web sites. The IRS also has a special partner toolkit now available in both Spanish PDF and English PDF. The toolkit offers a summary of various items related to Economic Impact Payments that partner groups can share. In addition, the IRS has been working closely with partners in the tax community as the private sector worked to translate key Economic Impact Payments into more than two dozen different languages to get key information to more people. IRS social media shares information The IRS continues regularly sharing Economic Impact Payment information on social media. Organizations are encouraged to share these information items, which also including new developments related to Economic Impact Payments and other provisions related to the CARES Act: Twitter: Taxpayers, businesses and tax professionals can follow the IRS handles for up to the minute announcements, tips and alerts in English and Spanish. Facebook: News and information for everybody. Also available in Spanish. Instagram: The IRS Instagram account shares taxpayer-friendly information. YouTube: The IRS offers video tax tips in English, Spanish and American Sign Language. IRS works with other federal agencies to share information As part of the wider outreach effort, the IRS has been working with other federal agencies to share information, ranging from the Treasury Department and the Bureau of Fiscal Service to the Social Security Administration and the Department of Veterans Affairs. In addition to those groups, a number of federal agencies have additional information of interest to taxpayers, including: FDIC. To help people without bank accounts obtain an Economic Impact Payment, the FDIC website has created a special page. It includes information for people describing where to find a bank that can open an account online and how to choose the right account. Consumer Financial Protection Bureau. CFPB has produced several videos related to Economic Impact Payments and other COVID-19 information.

https://www.irs.gov/newsroom/irs-provides-tax-relief-through-increased-flexibility-for-taxpayers-in-section-125-cafeteria-plans

IR-2020-95, May 12, 2020 WASHINGTON — The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes. The guidance issued today addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided temporary relief for high deductible health plans may be applied retroactively to January 1, 2020, and it also increases for inflation the $500 permitted carryover amount for health FSAs to $550. Notice 2020-29 PDF provides greater flexibility for taxpayers by: extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020. expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic. applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020. Notice 2020-33 PDF responds to Executive Order 13877, which directs the Secretary of the Treasury to "issue guidance to increase the amount of funds that can carry over without penalty at the end of the year for flexible spending arrangements." The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.

https://www.irs.gov/newsroom/irs-provides-guidance-on-the-deductibility-and-reporting-of-certain-amounts-paid-to-or-at-the-direction-of-governments

IR-2020-94, May 12, 2020 WASHINGTON — The Internal Revenue Service today issued proposed regulations under the Tax Cuts and Jobs Act (TCJA) that provide guidance to taxpayers and governments with respect to fines, penalties and certain other amounts. The TCJA disallows a deduction for the payment of fines, penalties, and certain other amounts. Specifically, taxpayers may not deduct amounts that, pursuant to court orders or settlement agreements, are paid to, or at the direction of, governments in relation to the violation of any law or the investigation or inquiry into the potential violation of any law. Under the TCJA, this disallowance may not apply to amounts that taxpayers establish, and court orders or settlement agreements identify, are paid as restitution, remediation, or to come into compliance with a law so long as the amounts otherwise qualify as deductible under the Internal Revenue Code. The proposed regulations describe how taxpayers may meet these requirements and define key terms and phrases such as restitution, remediation, and paid to come into compliance with a law. The TCJA also requires governments to report these amounts to the Internal Revenue Service and taxpayers. The proposed regulations provide guidance to governments related to these reporting requirements. For more information about this and other TCJA provisions, visit IRS.gov/taxreform.

https://www.irs.gov/newsroom/why-the-economic-impact-payment-amount-could-be-different-than-anticipated

IR-2020-93, May 11, 2020 WASHINGTON — The IRS and Treasury have successfully delivered nearly 130 million Economic Impact Payments to Americans in less than a month, and more are on the way. Some Americans may have received a payment amount different than what they expected. Payment amounts vary based on income, filing status and family size. See below for some common scenarios that may explain why you received a different payment amount than expected: You have not filed a 2019 tax return, or the IRS has not finished processing your 2019 return Payments are automatic for eligible people who filed a tax return for 2018 or 2019. Typically, the IRS uses information from the 2019 tax return to calculate the Economic Impact Payment. Instead, the IRS will use the 2018 return if the taxpayer has not yet filed for 2019. If a taxpayer has already filed for 2019, the agency will still use the 2018 return if the IRS has not finished processing the 2019 return. Remember, the IRS accepting a tax return electronically is different than completing processing; any issues with the 2019 return mean the IRS would've used the 2018 filing. If the IRS used the 2018 return, various life changes in 2019 would not be reflected in the payment. These may include higher or lower income or birth or adoption of a child. In many cases, however, these taxpayers may be able to claim an additional amount on the 2020 tax return they file next year. This could include up to an additional $500 for each qualifying child not reflected in their Economic Impact Payment. Claimed dependents are not eligible for an additional $500 payment Only children eligible for the Child Tax Credit qualify for the additional payment of up to $500 per child. To claim the Child Tax Credit, the taxpayer generally must be related to the child, live with them more than half the year and provide at least half of their support. Besides their own children, adopted children and foster children, eligible children can include the taxpayer's younger siblings, grandchildren, nieces and nephews if they can be claimed as dependents. In addition, any qualifying child must be a U.S. citizen, permanent resident or other qualifying resident alien. The child must also be under the age of 17 at the end of the year for the tax return on which the IRS bases the payment determination. A qualifying child must have a valid Social Security number (SSN) or an Adoption Taxpayer Identification Number (ATIN). A child with an Individual Taxpayer Identification Number (ITIN) is not eligible for an additional payment. Parents who are not married to each other and do not file a joint return cannot both claim their qualifying child as a dependent. The parent who claimed their child on their 2019 return may have received an additional Economic Impact Payment for their qualifying child. When the parent who did not receive an additional payment files their 2020 tax return next year, they may be able to claim up to an additional $500 per-child amount on that return if they qualify to claim the child as their qualifying child for 2020. Dependents are college students Pursuant to the CARES Act, dependent college students do not qualify for an EIP, and even though their parents may claim them as dependents, they normally do not qualify for the additional $500 payment. For example, under the law, a 20-year-old full-time college student claimed as a dependent on their mother's 2019 federal income tax return is not eligible for a $1,200 Economic Impact Payment. In addition, the student's mother will not receive an additional $500 Economic Impact Payment for the student because they do not qualify as a child younger than 17. This scenario could also apply if a parent's 2019 tax return hasn't been processed yet by the IRS before the payments were calculated, and a college student was claimed on a 2018 tax return. However, if the student cannot be claimed as a dependent by their mother or anyone else for 2020, that student may be eligible to claim a $1,200 credit on their 2020 tax return next year. Claimed dependents are parents or relatives, age 17 or older If a dependent is 17 or older, they do not qualify for the additional $500. If a taxpayer claimed a parent or any other relative age 17 or older on their tax return, that dependent will not receive a $1,200 payment. In addition, the taxpayer will not receive an additional $500 payment because the parent or other relative is not a qualifying child under age 17. However, if the parent or other relative cannot be claimed as a dependent on the taxpayer's or anyone else's return for 2020, the parent or relative may be eligible to individually claim a $1,200 credit on their 2020 tax return filed next year. Past-due child support was deducted from the payment The Economic Impact Payment is offset only by past-due child support. The Bureau of the Fiscal Service will send the taxpayer a notice if an offset occurs. For taxpayers who are married filing jointly and filed an injured spouse claim with their 2019 tax return (or 2018 tax return if they haven't filed the 2019 tax return), half of the total payment will be sent to each spouse. Only the payment of the spouse who owes past-due child support should be offset. The IRS is aware that a portion of the payment sent to a spouse who filed an injured spouse claim with his or her 2019 tax return (or 2018 tax return if no 2019 tax return has been filed) may have been offset by the injured spouse's past-due child support. The IRS is working with the Bureau of Fiscal Service and the U.S. Department of Health and Human Services, Office of Child Support Enforcement, to resolve this issue as quickly as possible. If you filed an injured spouse claim with your return and are impacted by this issue, you do not need to take any action. The injured spouse will receive their unpaid half of the total payment when the issue is resolved. We apologize for the inconvenience this may have caused. Garnishments by creditors reduced the payment amount Federal tax refunds, including the Economic Impact Payment, are not protected from garnishment by creditors by federal law once the proceeds are deposited into a taxpayer's bank account. What if the amount of my Economic Impact Payment is incorrect? Everyone should review the eligibility requirements for their family to make sure they meet the criteria. In many instances, eligible taxpayers who received a smaller-than-expected Economic Impact Payment (EIP) may qualify to receive an additional amount early next year when they file their 2020 federal income tax return. EIPs are technically an advance payment of a new temporary tax credit that eligible taxpayers can claim on their 2020 return. Everyone should keep for their records the letter they receive by mail within a few weeks after their payment is issued. When taxpayers file their return next year, they can claim additional credits on their 2020 tax return if they are eligible for them. The IRS will provide further details on IRS.gov on the action they may need to take. The EIP will not reduce a taxpayer's refund or increase the amount they owe when they file a tax return early next year. It is also not taxable and it should not be included in income on a 2020 return. More resources on Economic Impact Payments here: Questions about eligibility, payment amounts, and status of payment Economic Impact Payments Get My Payment tool Chart of various payment amount scenarios

https://www.irs.gov/newsroom/act-by-wednesday-for-chance-to-get-quicker-economic-impact-payment-timeline-for-payments-continues-to-accelerate

IR-2020-92, May 8, 2020 WASHINGTON – With a variety of steps underway to speed Economic Impact Payments, the Treasury Department and the Internal Revenue Service urged people to use Get My Payment by noon Wednesday, May 13, for a chance to get a quicker delivery. The IRS, working in partnership with Treasury Department and the Bureau of Fiscal Services (BFS), continues to accelerate work to get Economic Impact Payments to even more people as soon as possible. Approximately 130 million individuals have already received payments worth more than $200 billion in the program's first four weeks. Starting later this month, the number of paper checks being delivered to taxpayers will sharply increase. For many taxpayers, the last chance to obtain a direct deposit of their Economic Impact Payment rather than receive a paper check is coming soon. People should visit Get My Payment on IRS.gov by noon Wednesday, May 13, to check on their payment status and, when available, provide their direct deposit information. "We're working hard to get more payments quickly to taxpayers," said IRS Commissioner Chuck Rettig. "We want people to visit Get My Payment before the noon Wednesday deadline so they can provide their direct deposit information. Time is running out for a chance to get these payments several weeks earlier through direct deposit." After noon Wednesday, the IRS will begin preparing millions of files to send to BFS for paper checks that will begin arriving through late May and into June. Taxpayers who use Get My Payment before that cut-off can still take advantage of entering direct deposit information. How Get My Payment works The Get My Payment tool provides eligible taxpayers with a projected Economic Impact Payment deposit date. The information is updated once daily, usually overnight. There is no need to check more than once a day. Taxpayers who did not choose direct deposit on their last tax return can use this tool to input bank account information to receive their payment by direct deposit, expediting receipt. Non-Filers portal remains available For those not required to file a federal tax return, the Non-Filers: Enter Payment Info Here tool helps them submit basic information to receive an Economic Impact Payment quickly to their bank account. Developed in partnership between the IRS and the Free File Alliance, this tool provides a free and easy option for those who don't receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and VA Compensation and Pension (C&P) benefits. The Non-Filers tool is also available in Spanish. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also be sent to those receiving Social Security retirement, disability benefits, Railroad Retirement benefits, Veterans Affairs benefits or Supplemental Security Income soon. Watch out for scams related to Economic Impact Payments The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Stay informed with Economic Impact Payment FAQs; Social Media platforms Taxpayers should check the Frequently Asked Questions (FAQs) for more information.