IRS Tax News

  • 15 Mar 2022 7:32 AM | Anonymous

    Announcement 2022-06 notifies taxpayers of a temporary suspension of the IRS prototype IRA opinion letter program. The announcement also advises taxpayers that, until further notice, adopters of prototype IRAs, SEPs, and SIMPLE IRA plans may rely on a previously received favorable opinion letter, and that taxpayers may use existing model forms to maintain current plans and accounts or establish new plans and accounts.
     
    WILL BE IN IRB: 2022-13            DATED: March 28, 2022


  • 11 Mar 2022 4:20 PM | Anonymous

    WASHINGTON – As part of a Service-wide effort to help under-served communities, the Internal Revenue Service announced today that it is looking for applicants to staff a new call site in Mississippi starting this spring.

    The IRS will hire approximately ten Collection Contact Representatives in Clarksdale, Miss., to staff an IRS Automated Collection System (ACS) site, where they will answer calls from taxpayers to help them resolve their tax-related issues.

    “A special focus for the IRS has been to increase services and employment in under-represented communities,” said IRS Commissioner Chuck Rettig. “This new effort in Mississippi is designed to help people in the community as well as taxpayers needing help related to collection issues. We are proud to be working closely with federal, state and local officials to launch this new site, and we appreciate their significant assistance raising awareness about this important effort.” 

    This special initiative is part of a larger project underway at the IRS to reach under-served communities. Increased IRS participation in the communities the agency serves will provide meaningful career opportunities while increasing service, raising awareness and compliance with tax laws in underrepresented communities.

    Clarksdale is an initial step in the longer-term IRS effort. Job openings are for Collection Contact Representative positions. These positions deal with a full range of responsibilities in resolving issues and obtaining information relative to the tax administration process. Contact Representatives provide authoritative tax law assistance and take action where needed to resolve a taxpayer’s tax issues, often involving delinquent situations. Actions needed might include analyzing the taxpayer’s ability to pay, initiating liens and negotiating installment payment agreements.

    These positions have a beginning salary range of $36,118 to $46,953 with potential for annual increases and promotions. Both English and bilingual Spanish positions are available. Qualified applicants will receive extensive training on IRS procedures to apply the tax laws and regulations with fairness, along with access and use of all necessary automated systems. Specialized or prior federal work experience is not required.

    “Expanded IRS collection services will provide job opportunities in the Mississippi Delta while increasing the agency’s ability to respond to taxpayer phone inquiries,” said Darren Guillot, the IRS Small Business/Self-Employed Commissioner for Collection. “This is an important effort, and the IRS hopes this will open the door to other opportunities in other locations in the future.

    Applications are being accepted through March 16. Interested individuals should apply today or as soon as possible via the following announcement on USAJOBS:

    Virtual Information Sessions
    The IRS Small Business/Self Employed Division will be providing virtual information sessions for individuals who would like more information about the Collection Contact Representative positions and how to apply. During these virtual sessions, Collection Contact Representatives will provide a better understanding of the work they do day-to-day. Human Resource Representatives will also attend the session to discuss the application process and some of the requirements for the positions. Interested individuals can register using the following links:

    • Register   March 14th  @ 4:00 PM Eastern Time
    • Register   March 16th  @ 3:00 PM Eastern Time (for bilingual Spanish positions)

    The IRS encourages people to share this job posting with friends, family or neighbors who may be interested and qualified for the positions.


  • 10 Mar 2022 4:34 PM | Anonymous

    More functions coming later in 2022 to help taxpayers with more complex issues 
     
    WASHINGTON – The Internal Revenue Service today announced it has begun using voice and chat bots on two of its specialized toll-free telephone assistance lines and IRS.gov, enabling taxpayers with simple payment or collection notice questions to get what they need quickly and avoid waiting. Taxpayers can still speak with an IRS telephone representative if needed.
     
    "Our phone lines continue to see unprecedented demand, and the IRS continues to look for ways to help people and avoid long wait times,” said IRS Commissioner Chuck Rettig. "Our telephone representatives remain an important part of the service we provide, but these bots can help some people avoid lengthy phone delays for something that could be resolved on the spot. This is part of a larger effort to help people get the assistance they need this tax season."
     
    The IRS in recent weeks has deployed voice and chat bots in English and Spanish for phone lines that assist taxpayers with tax payments issues or understanding an IRS notice they may have received. People with general tax season questions generally will not encounter these features at this time. The bots are now available to help taxpayers with:

    • How to make One-Time Payments
    • Answers to Frequently Asked Questions
    • Collection Notice Clarification 

    Voice bots are software powered by artificial intelligence (AI) that allow a caller to navigate an interactive voice response (IVR) system with their voice, generally using natural language. Chat bots simulate human conversation through web-based text interaction, also using AI-powered software to respond to natural language prompts. Taxpayers who request to speak with a customer service representative will be placed in queue for English or Spanish ACS telephone assistance. The IRS voice and chat bots currently provide unauthenticated services, which means they cannot provide assistance with a taxpayer’s protected account information. 
     
    "Voice and chat bots interact with taxpayers in easy-to-follow ways, which means taxpayers don't have to wait on hold to handle simple tasks, said Darren Guillot, Commissioner of Small Business/Self Employed Collection at the IRS.
     
    Later in 2022, IRS voice bots will also enable taxpayers to authenticate their identity to establish payment plans, request a transcript and obtain information about their accounts, such as payoff details. The IRS plans to roll out more voice and chat bots later in 2022 to assist taxpayers with more complex issues.
     
    IRS toll-free telephone lines receive millions of calls a year. A customer service representative spends on average nearly 20 minutes with each taxpayer they help on a collection issue. Freeing up IRS phone assistors for taxpayers with complex collection issues who need to speak with someone is another major benefit of voice and chat bots.
     
    In addition to the payment lines, voice bots helped people calling the Economic Impact Payment (EIP) toll-free line, providing general procedural responses to frequently asked questions. The IRS also added voice bots for the Advance Child Tax Credit toll-free line in February to provide similar assistance to callers who need help reconciling the credits on their 2021 tax return.
     
    The IRS also reminds taxpayers about numerous other self-service options that are available.


  • 10 Mar 2022 4:34 PM | Anonymous

    WASHINGTON — To help serve taxpayers during this challenging tax season, the Internal Revenue Service announced today that it is hiring more than 5,000 positions in its service processing centers located in Austin, Texas; Kansas City, Missouri; and Ogden, Utah.

    These positions fall under a special hiring condition called direct-hire authority. New hires may expect to begin work within 30-45 days of their job offer.

    "It's an exciting time to work for the Internal Revenue Service,” said IRS Taxpayer Experience Officer and Wage and Investment Commissioner Ken Corbin. “Those who wish to work with customer service as their focus are encouraged to apply. This is gratifying work - as these newly hired individuals will process tax returns and deliver refunds to the nation’s taxpayers.”

    Available positions include temporary, term and permanent jobs. Many are entry-level clerk and tax examiner positions in the Wage and Investment Division. No prior tax experience is required.

    “The IRS has opportunities for almost every profession, starting with these entry level positions. Starting here today can guide you to your future career, like it has done for me starting in high school,” said Corbin. 

    The IRS offers competitive pay and benefits, on-the-job training, and opportunities for advancement. The pay range for these positions is from GS-02 to GS-09.

    Virtual hiring events

    The agency is hosting virtual direct hiring events on March 16, 23 and 30, where the IRS will review resumes and extend job offers to eligible applicants on the spot.  

    In-person events:

    These events are open to the public. Interested job seekers are encouraged to bring their resumé and two forms of identification (i.e., state driver’s license and/or state Identification card, birth certificate, U.S. Passport, Military ID card or Social Security card). Qualified applicants may receive job offers at the in-person events.

    IPE

    Preregistration and social-distancing are required to attend the in-person job fairs. Per Centers for Disease Control and Prevention (CDC) guidelines, mask wear is optional for these job fair sites. For complete details on the virtual events and to register to attend one of the in-person events, visit: jobs.irs.gov/events.

    The IRS is an equal opportunity employer. All employees must be U.S. citizens, pass an FBI fingerprint check and tax compliance verification, and meet the mandatory education, training and experience qualification requirements.


  • 08 Mar 2022 1:18 PM | Anonymous

    WASHINGTON – The Internal Revenue Service issued a filing season reminder today that those taxpayers who pay expenses for the care of a qualifying person while working or looking for work may qualify for an important tax credit.

    The Child and Dependent Care Credit is expanded for tax year 2021. This means that more taxpayers will qualify this year than ever before, and the credit will be worth more. Taxpayers with an adjusted gross income of more than $438,000 are not eligible for this credit.

    “There are many important tax credits available for families, and we don’t want anyone to overlook the Child and Dependent Care Credit,” said IRS Commissioner Chuck Rettig. “We encourage families and others who may qualify for this credit to carefully review the criteria to make sure they receive the maximum amount they’re entitled to. We also encourage the tax professional communities and others to share this important information.”

    Depending on their income, taxpayers can get a credit worth 50% of their qualifying childcare expenses. For tax year 2021, the maximum eligible expense for this credit is $8,000 for one qualifying person and $16,000 for two or more.

    For the purposes of this credit, the IRS defines a qualifying person as:

    • A taxpayer's dependent who is 12 or younger (no age limit if incapacitated) when the care is provided.
    • A taxpayer's spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
    • Someone who is physically or mentally unable to take care of themselves and lived with the taxpayer for six months and is either:

    1. the taxpayer's dependent or

    2. would have been the taxpayer's dependent except for one of the following:

    - The qualifying person received gross income of $4,300 or more

    - The qualifying person filed a joint return

    - The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else's return

    Taxpayers can use the Interactive Tax Assistant or see the Frequently Asked Questions on IRS.gov to determine if they can claim this credit. For IRS partners, there’s a special promotional flyer available.

    The IRS has been highlighting this credit in a number of ways, including Tax Tips, fact sheets, news releases as well as through Twitter and other IRS social media and outreach channels. It’s also featured in a special IRS YouTube video.


  • 08 Mar 2022 1:11 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today updated its frequently asked questions (FAQs) (FS-2022-17) PDF on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. These updates are to help eligible families properly claim the credit when they prepare and file their 2021 tax return.

    These changes reflect that Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). Schedule 8812 (Form 1040) is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments  were received during 2021.

    These FAQs revisions and additions are as follows:

    • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Q3
    • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic C: Calculation of the 2021 Child Tax Credit: Q1
    • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic D: Calculation of Advance Child Tax Credit Payments: Q1

    These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.

    More information about reliance is available.

    IRS-FAQ


  • 08 Mar 2022 11:34 AM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds taxpayers they may be able to claim a deduction on their 2021 tax return for contributions to their Individual Retirement Arrangement (IRA) made through April 18, 2022.

    An IRA is a personal savings plan that lets employees and the self-employed set money aside for retirement and can have tax advantages. Contributions for 2021 can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution.

    Generally, eligible taxpayers can contribute up to $6,000 to an IRA for 2021. For those 50 years of age or older at the end of 2021, the limit is increased to $7,000. Qualified contributions to one or more traditional IRAs may be deductible up to the contribution limit or 100% of the taxpayer’s compensation, whichever is less. There is no longer a maximum age for making IRA contributions.

    Those who make contributions to certain employer retirement plans, such as a 401k or 403(b), an IRA, or an Achieving a Better Life Experience (ABLE) account, may be able to claim the Saver’s Credit. Also known as the Retirement Savings Contributions Credit, the amount of the credit is generally based on the amount of contributions, the adjusted gross income and the taxpayer’s filing status. The lower the taxpayer’s income (or joint income, if applicable), the higher the amount of the tax credit. Dependents and full-time students are not eligible for the credit. For more information on annual contributions to an ABLE account, see Publication 907, Tax Highlights for Persons With Disabilities.

    While contributions to a Roth IRA are not tax deductible, qualified distributions are tax-free. Roth IRA contributions may be limited based on filing status and income. Contributions can also be made to a traditional and/or Roth IRA even if participating in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA-based plan).

    Taxpayers can find answers to questions, forms and instructions and easy-to-use tools at IRS.gov. This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax For Individuals.

    More resources


  • 04 Mar 2022 1:22 PM | Anonymous

    WASHINGTON – The Internal Revenue Service today announced that many Taxpayer Assistance Centers (TACs) will offer face-to-face Saturday help without an appointment from 9 a.m. to 4 p.m. on Saturday, March 12. Normally TACs are only open weekdays.

    “Being open on select Saturdays is offered for people to get the help they need when they need it,” said IRS Wage and Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin. “We know that many taxpayers work during the week or have other obligations that make it difficult to get away to take care of their taxes during our routine business hours. We’re here to help, and people don’t need an appointment during these special Saturday hours.”

    People can also ask about reconciling advance Child Tax Credit payments, receive help resolving a tax problem, a tax bill or an IRS audit. If assistance from IRS employees specializing in these services is not available, the individual will receive a referral for these services. IRS staff will schedule appointments for a later date for Deaf or Hard of Hearing individuals who need sign language interpreter services. Foreign language interpreters will be available.

    The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. People are required to wear face masks and social distance at these events.

    Please come prepared
    The IRS urges individuals to bring the following information:

    • Current government-issued photo identification
    • Social Security cards and/or ITINs for members of their household, including spouse and dependents (if applicable)
    • Any IRS letters or notices received and related documents

    During the visit, IRS staff may also request the following information:

    • A current mailing address, and
    • Bank account information, to receive payments or refunds by Direct Deposit.

    No tax return preparation will be available at any IRS TAC. The IRS.gov webpage, Contact your local office, lists all services provided at specific TACs.

    Free tax preparation help
    While tax return preparation is not a service offered at IRS TACs during regular hours or during these Saturday hours, the following free resources are available to help most taxpayers prepare and file their 2021 federal tax returns anytime:

    Any individual or family earning $73,000 or less in 2021 can use tax software from providers who make their online products available through IRS Free File at no cost. There are products in English and Spanish.

    Free help preparing tax returns is available at a Volunteer Income Tax Assistance Center (VITA) or Tax Counseling for the Elderly location (TCE) sites. The income limit for VITA assistance is $58,000. To find the closest free tax return preparation help, use the VITA Locator Tool or call 800-906-9887. To find a TCE AARP Tax-Aide site, use the AARP Site Locator Tool or call 1-888-227-7669.

    More information:

    IRS.gov/rrc to learn about filing requirements for the Recovery Rebate Credit


  • 04 Mar 2022 11:58 AM | Anonymous

    WASHINGTON – As part of a longer-term effort to improve taxpayer service, the IRS has officially established the first-ever Taxpayer Experience Office and will soon begin taking additional steps to expand the effort.

    “As the IRS continues taking immediate steps this filing season including adding more employees to address the significant challenges facing a resource-constrained IRS, it’s critical that we work going forward to equip the IRS to be a 21st century resource for Americans,” said IRS Commissioner Chuck Rettig. “The formal establishment of this office will help unify and expand efforts across the IRS to improve service to taxpayers.”

    The Taxpayer Experience Office will focus on all aspects of taxpayer transactions with the IRS across the service, compliance and other program areas, working in conjunction with all IRS business units and coordinating closely with the Taxpayer Advocate Service. The office is part of the effort envisioned in the Taxpayer First Act Report to Congress last year. This included input and feedback from taxpayers, tax professionals and the tax community that helped develop the Taxpayer Experience Strategy. The Report to Congress identified over a hundred different programs and tools that would help taxpayers, including a 360-degree view of taxpayer accounts, expanded e-File and payment options, digital signatures, secure two-way messaging and online accounts for businesses and tax professionals.

    To help drive the IRS strategic direction for improving the taxpayer experience, the Taxpayer Experience Office has identified key activities the IRS is focusing on over the next five years, including those commitments outlined in the President’s Executive Order on Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government.

    “The IRS is committed to customer experiences that meet taxpayers where they are, in the moments that matter most in people’s lives and in a way that delivers the service that the public expects and deserves,” said Chief Taxpayer Experience Officer Ken Corbin, who also serves as the commissioner of the Wage and Investment division, which oversees the current filing season and other activities.

    The Taxpayer Experience Office will identify changing taxpayer expectations and industry trends, focus on customer service best practices, and promote a consistent voice and experience across all taxpayer segments by developing agency-wide taxpayer experience guidelines and expectations. The office will be adding staff in the coming months to help support the effort.

    “Whether checking the status of a tax return, meeting with a revenue agent for an audit, or receiving a tax credit to their bank account, improving service delivery and customer experience are fundamental priorities for us,” Corbin said. “We’re committed to designing and delivering services that better connect with our diverse taxpayer base.”

    Some of the areas of improvement in the near-term include expanding customer callback, expanded payment options, secure two-way messaging and more services for multilingual customers. These activities build on recent improvements such as digital tools to support Economic Impact Payments and the Advance Child Tax Credit, online chat and online tax professional account. 


  • 04 Mar 2022 7:03 AM | Anonymous

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


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