IRS Tax News

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  • 27 Feb 2024 6:05 PM | Anonymous

    IRS: San Diego area taxpayers impacted by severe storms, flooding qualify for tax relief; various deadlines postponed to June 17

    WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of California affected by severe storms and flooding that began on Jan. 21.

    These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

    The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, this includes San Diego County. Individuals and households that reside or have a business in this locality qualify for tax relief.

    The same relief will be available to any other California localities added later to the disaster area. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

    Filing and payment relief
    The tax relief postpones various tax filing and payment deadlines that occurred from Jan. 21, 2024, through June 17, 2024 (postponement period). As a result, affected individuals and businesses will have until June 17, 2024, to file returns and pay any taxes that were originally due during this period.

    This means, for example, that the June 17, 2024, deadline will now apply to:

    • Individual income tax returns and payments normally due on April 15, 2024.
    • 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
    • 2024 estimated tax payments normally due on April 15, 2024.
    • Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024.
    • Calendar-year partnership and S corporation returns normally due on March 15, 2024.
    • Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
    • Calendar-year tax-exempt organization returns normally due on May 15, 2024.

    Also, penalties for failing to make payroll and excise tax deposits due on or after Jan. 21, 2024, and before Feb. 5, 2024, will be abated as long as the deposits were made by Feb. 5, 2024.

    The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.

    The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief.

    It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these kinds of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for 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.

    Reminder about extensions
    The IRS urges anyone who needs an additional tax-filing extension, beyond June 17, 2024, for their 2023 federal income tax return to request it electronically by April 15, 2024. Though a disaster-area taxpayer qualifies to request an extension between April 15, 2024, and June 17, 2024, a request filed during this period can only be submitted on paper. Whether requested electronically or on paper, the taxpayer will then have until Oct. 15, 2024, to file, though payments are still due on June 17, 2024. Visit IRS.gov/Extensions for details.

    Additional tax relief
    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 2024 return normally filed next year), or the return for the prior year (2023, normally filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number – 4758-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details.

    Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details.

    Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

    The IRS may provide additional disaster relief in the future.

    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.

     

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  • 27 Feb 2024 6:03 PM | Anonymous

    Low Income Taxpayer Clinic is now taking applications for supplemental grants

    Supplemental application period runs from Feb. 26 through April 10

    IR-2024-50, Feb. 26, 2024

    WASHINGTON — The Internal Revenue Service today announced it will accept supplemental applications from all qualified organizations for Low Income Taxpayer Clinic (LITC) matching grants from Feb. 26 to April 10.

    “LITCs help protect taxpayer rights and ensure justice for thousands of taxpayers across the country,” said National Taxpayer Advocate Erin M. Collins. “Some communities that are underserved, or do not have any clinics to help those taxpayers who have nowhere else to turn, need the assistance that a clinic can provide. The supplemental grant period is a chance for eligible organizations to apply for funding that can help make a difference for vulnerable taxpayers and grow the LITC presence in areas with the greatest need.”

    The funding and the period of performance for the grant will be July 1 to Dec. 31. Under Internal Revenue Code (IRC) section 7526, the IRS awards matching grants to qualifying organizations to develop, expand or maintain an LITC. For every dollar of funding awarded by the IRS, an LITC must have a dollar of match. An LITC must provide services for free or for no more than a nominal fee (except for reimbursement of actual costs incurred).
    LITCs ensure the fairness and integrity of the tax system for taxpayers by:

    • Providing pro bono representation to assist low-income taxpayers in resolving tax disputes with the IRS;
    • Educating taxpayers for whom English is a second language (ESL taxpayers) about their rights and responsibilities as taxpayers; and
    • Identifying and advocating on issues that impact these taxpayers.

    To achieve maximum access to justice for low-income and ESL taxpayers, the IRS has expanded the eligibility criteria for a grant by removing the requirement for eligible organizations to provide direct controversy representation. Representation may be provided by referring taxpayers to qualified representatives who have agreed to handle the referred cases on a pro bono basis. In addition, pursuant to the ESL Education Pilot Program started in 2023 and continuing for 2024, a grant may be awarded to an organization to operate a program to inform ESL taxpayers about their rights and responsibilities under the IRC without the requirement to also provide tax controversy representation to low-income taxpayers. See IRS Publication 3319 for examples of what constitutes a “clinic.”

    Although the amount and timing of 2024 appropriations is not yet known, the President’s 2024 budget request includes a continuation of LITC funding at $26 million and a $200,000 per award funding cap, and funding bills approved by the House and Senate Appropriations Committees contains similar language. Consistent with the Administration’s budget request and House and Senate action to date, the IRS will allow applicants to request grants up to $200,000. If Congress does not continue the LITC Program's funding at $26 million and/or the increased per award funding cap of $200,000, the IRS will adjust awards to reflect any limitations in place at that time.

    Despite the IRS's efforts to foster parity in availability and accessibility when choosing organizations to receive LITC matching grants, there remain communities that are underserved by clinics. Currently, the states of Hawaii, Kansas, Nevada, North Dakota, South Dakota, West Virginia and the territory of Puerto Rico do not have an LITC. The IRS is particularly interested in receiving supplemental applications from organizations that provide services in these underserved geographic areas. Priority will be given to established organizations that can help provide coverage to underserved geographic areas. For the ESL Education Pilot Program, special consideration will be given to established organizations with existing community partnerships that can deliver services to the target audiences.

    The LITC Program is administered by the Office of the Taxpayer Advocate at the IRS, led by National Taxpayer Advocate Erin M. Collins. Although LITCs receive partial funding from the IRS, LITCs, their employees and their volunteers operate independently of the IRS.

    Supplemental applications must be submitted electronically by 11:59 p.m. Eastern Time on April 10, 2024. The funding number is TREAS-GRANTS-052024-002. Copies of IRS Publication 3319, 2024 Grant Application Package and Guidelines, can be downloaded from IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676). To assist organizations in applying for funding, a "Reminders and Tips for Completing Form 13424-M" document is available on the LITC grants page. Questions about the LITC Program or the supplemental grant application process can be addressed to the LITC Program Office by email at litcprogramoffice@irs.gov. Alternatively, you may contact Karen Tober by email at karen.tober@irs.gov.

    More information about LITCs and the work they do to represent, educate and advocate on behalf of low-income and ESL taxpayers is available in IRS Publication 5066, LITC Program Report. A short video about the LITC Program is also available on the IRS website.

    Join the LITC Program Office for one of two optional webinars, where it will provide information about the LITC Program and the supplemental application process. Details on the dates and times of the webinars are available at LITC Grants - Taxpayer Advocate Service.

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  • 27 Feb 2024 6:02 PM | Anonymous

    N-2024-26: Administrative Exemption from Requirement to Electronically File Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.

    Notice 2024-26 announces that the IRS is granting an administrative exemption from the electronic filing requirements for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, set forth in final regulations issued under Internal Revenue Code sections 6011(e), 1461, and 1474 (TD 9972, 88 FR 11754). Notice 2024-26 announces that withholding agents (both U.S. and foreign persons) are administratively exempt from the requirement to electronically file Forms 1042 required to be filed in calendar year 2024 (applicable to Forms 1042 filed in 2024 for taxable year 2023). Additionally, this notice announces that withholding agents that are foreign persons are administratively exempt from the requirements to electronically file Forms 1042 required to be filed in calendar year 2025 (applicable to Forms 1042 filed in 2025 for taxable year 2024).

    The administrative exemption from the electronic filing requirements for Form 1042 is automatic, and withholding agents are not required to file a waiver request to utilize this exemption.

    Notice 2024-26 will be in IRB: 2024-12, dated 03/18/2024.

     

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  • 26 Feb 2024 8:43 AM | Anonymous

    Tax Time Guide 2024: What to know before completing a tax return

    WASHINGTON — During the busiest time of the tax filing season, the Internal Revenue Service kicked off its 2024 Tax Time Guide series to help remind taxpayers of key items they’ll need to file a 2023 tax return.

    As part of its four-part, weekly Tax Time Guide series, the IRS continues to provide new and updated resources to help taxpayers file an accurate tax return. Taxpayers can count on IRS.gov for updated resources and tools along with a special free help page available around the clock. Taxpayers are also encouraged to read Publication 17, Your Federal Income Tax (For Individuals) for additional guidance.

    Essentials to filing an accurate tax return
    The deadline this tax season for filing Form 1040, U.S. Individual Income Tax Return, or 1040-SR, U.S. Tax Return for Seniors, is April 15, 2024. However, those who live in Maine or Massachusetts will have until April 17, 2024, to file due to official holidays observed in those states.

    Taxpayers are advised to wait until they receive all their proper tax documents before filing their tax returns. Filing without all the necessary documents could lead to mistakes and potential delays.

    It’s important for taxpayers to carefully review their documents for any inaccuracies or missing information. If any issues are found, taxpayers should contact the payer immediately to request a correction or confirm that the payer has their current mailing or email address on file.

    Creating an IRS Online Account can provide taxpayers with secure access to information about their federal tax account, including payment history, tax records and other important information.

    Having organized tax records can make the process of preparing a complete and accurate tax return easier and may also help taxpayers identify any overlooked deductions or credits.

    Taxpayers who have an Individual Taxpayer Identification Number or ITIN may need to renew it if it has expired and is required for a U.S. federal tax return. If an expiring or expired ITIN is not renewed, the IRS can still accept the tax return, but it may result in processing delays or delays in credits owed.

    Changes to credits and deductions for tax year 2023
    Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. The amounts are:

    — Single or married filing separately — $13,850.

    — Head of household — $20,800.

    — Married filing jointly or qualifying surviving spouse — $27,700.

    Additional child tax credit amount increased. The maximum additional child tax credit amount has increased to $1,600 for each qualifying child.

    Child tax credit enhancements. Many changes to the Child tax credit (CTC) that had been implemented by the American Rescue Plan Act of 2021 have expired.

    However, the IRS continues to closely monitor legislation being considered by Congress affecting the Child Tax Credit. The IRS reminds taxpayers eligible for the Child Tax Credit that they should not wait to file their 2023 tax return this filing season. If Congress changes the CTC guidelines, the IRS will automatically make adjustments for those who have already filed so no additional action will be needed by those eligible taxpayers.

    Under current law, for tax year 2023, the following currently apply:

    — The enhanced credit allowed for qualifying children under age 6 and children under age 18 has expired. For 2023, the initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where AGI income exceeds $200,000 ($400,000 in the case of a joint return). The amount of the CTC that can be claimed as a refundable credit is limited as it was in 2020 except that the maximum ACTC amount for each qualifying child increased to $1,500.

    — The increased age allowance for a qualifying child has expired. A child must be under age 17 at the end of 2023 to be a qualifying child.

    Changes to the Earned Income Tax Credit (EITC). The enhancements for taxpayers without a qualifying child implemented by the American Rescue Plan Act of 2021 will not apply for tax year 2023. To claim the EITC without a qualifying child in 2023, taxpayers must be at least age 25 but under age 65 at the end of 2023. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2023.

    Taxpayers may find more information on Child tax credits in the Instructions for Schedule 8812 (Form 1040).

    New Clean Vehicle Credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the Clean Vehicle Credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is reported on Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit, and on Form 1040, Schedule 3.

    More information on these and other credit and deduction changes for tax year 2023 may be found in the Publication 17, Your Federal Income Tax (For Individuals), taxpayer guide.

    1099-K reporting requirements have not changed for tax year 2023
    Following feedback from taxpayers, tax professionals and payment processors, and to reduce taxpayer confusion, the IRS recently released Notice 2023-74 announcing a delay of the new $600 reporting threshold for tax year 2023 on Form 1099-K, Payment Card and Third-Party Network Transactions. The previous reporting thresholds will remain in place for 2023.

    The IRS has published a Fact Sheet with further information to assist taxpayers concerning changes to 1099-K reporting requirements for tax year 2023.

    Form 1099-K reporting requirements
    Taxpayers who take direct payment by credit, debit or gift cards for selling goods or providing services by customers or clients should get a Form 1099-K from their payment processor or payment settlement entity no matter how many payments they got or how much they were for.

    If they used a payment app or online marketplace and received over $20,000 from over 200 transactions, the payment app or online marketplace is required to send a Form 1099-K. However, they can send a Form 1099-K with lower amounts. Whether or not the taxpayer receives a Form 1099-K, they must still report any income on their tax return.

    What’s taxable? It’s the profit from these activities that’s taxable income. The Form 1099-K shows the gross or total amount of payments received. Taxpayers can use it and other records to figure out the actual taxes they owe on any profits. Remember that all income, no matter the amount, is taxable unless the tax law says it isn’t – even if taxpayers don’t get a Form 1099-K.

    What’s not taxable? Taxpayers shouldn’t receive a Form 1099-K for personal payments, including money received as a gift and for repayment of shared expenses. That money isn’t taxable. To prevent getting an inaccurate Form 1099-K, note those payments as “personal,” if possible.

    Good recordkeeping is key. Be sure to keep good records because it helps when it’s time to file a tax return. It’s a good idea to keep business and personal transactions separate to make it easier to figure out what a taxpayer owes.

    For details on what to do if a taxpayer gets a Form 1099-K in error or the information on their form is incorrect, visit irs.gov/1099K or find frequently asked questions at Form 1099-K FAQs.

    Direct File pilot program provides a new option this year for some
    The IRS launched the Direct File pilot program during the 2024 tax season. The pilot will give eligible taxpayers an option to prepare and electronically file their 2023 tax returns, for free, directly with the IRS.

    The Direct File pilot program will be offered to eligible taxpayers in 12 pilot states who have relatively simple tax returns reporting only certain types of income and claiming limited credits and deductions. The 12 states currently participating in the Direct File pilot program are Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming. Taxpayers can check their eligibility at directfile.irs.gov.

    The Direct File pilot is currently in the internal testing phase and will be more widely available in mid-March. Taxpayers can get the latest news about the pilot at Direct File pilot news and sign up to be notified when Direct File is open to new users.

    Finally, for comprehensive information on all these and other changes for tax year 2023, taxpayers and tax professionals are encouraged to read the Publication 17, Your Federal Income Tax (For Individuals), taxpayer guide, as well as visit other topics of taxpayer interest on IRS.gov.

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  • 26 Feb 2024 8:41 AM | Anonymous

    IRS begins audits of corporate jet usage; part of larger effort to ensure high-income groups don’t fly under the radar on tax responsibilities

    WASHINGTON – Using Inflation Reduction Act funding and as part of ongoing efforts to improve tax compliance in high-income categories, the Internal Revenue Service announced today plans to begin dozens of audits on business aircraft involving personal use.

    The audits will be focused on aircraft usage by large corporations, large partnerships and high-income taxpayers and whether for tax purposes the use of jets is being properly allocated between business and personal reasons.

    The IRS will be using advanced analytics and resources from the Inflation Reduction Act to more closely examine this area, which has not been closely scrutinized during the past decade as agency resources fell sharply. The number of audits related to aircraft usage could increase in the future following initial results and as the IRS continues hiring additional examiners.

    “During tax season, millions of people are doing the right thing by filing and paying their taxes, and they should have confidence that everyone is also following the law,” said IRS Commissioner Danny Werfel. “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a complex area where IRS work has been stretched thin. With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.”

    Business aircraft are often used for both business and personal reasons by officers, executives, other employees, shareholders and partners. In general, the tax code passed by Congress allows a business deduction for expenses of maintaining an asset, such as a corporate jet, if that asset is utilized for a business purpose. However, the use of a company aircraft must be allocated between business use and personal use. This is a complex area of tax law, and record-keeping can be challenging.

    For someone such as an executive using the company jet for personal travel, the amount of personal usage impacts eligibility for certain business deductions. Use of the company jet for personal travel typically results in income inclusion by the individual using the jet for personal travel and could also impact the business’s eligibility to deduct costs related to the personal travel.

    The examination of corporate jet usage is part of the IRS Large Business and International division’s “campaign” program. Campaigns apply different compliance streams to help address areas with a high risk of non-compliance. These efforts include issue-focused examinations, taxpayer outreach and education, tax form changes and focusing on particular issues that present a high risk of noncompliance.

    The IRS will begin conducting examinations in the near future as part of the agency’s commitment to ensuring fairness in tax administration.

    This is part of a larger effort the IRS is taking to ensure large corporate, large partnerships and high-income individual filers pay the taxes they owe. Prior to the Inflation Reduction Act, more than a decade of budget cuts prevented the IRS from keeping pace with the increasingly complicated set of tools that the wealthiest taxpayers use to shelter or manipulate their income to avoid taxes. The IRS is now taking swift and aggressive action to close this gap.

    In addition to work on corporate jets, the IRS has a variety of efforts underway to improve tax compliance in complex, overlooked high-dollar areas where the agency did not have adequate resources prior to Inflation Reduction Act funding.

    For example, the IRS is continuing to pursue millionaires that have not paid hundreds of millions of dollars in tax debt. The IRS has already collected $482 million in ongoing efforts to recoup taxes owed by 1,600 millionaires with action continuing in this area. Elsewhere, the IRS is pursuing multi-million-dollar partnership balance sheet discrepancies, ramping up audits of more than 75 of the largest partnerships using artificial intelligence (AI) as well as other areas.

    "The IRS continues to increase scrutiny on high-income taxpayers as we work to reverse the historic low audit rates and limited focus that the wealthiest individuals and organizations faced in the years that predated the Inflation Reduction Act,” Werfel said. “We are adding staff and technology to ensure that the taxpayers with the highest income, including partnerships, large corporations and millionaires and billionaires, pay what is legally owed under federal law. The IRS will have more announcements to make in this important area."

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  • 26 Feb 2024 8:41 AM | Anonymous

    Interest rates remain the same for the second quarter of 2024

    WASHINGTON — The Internal Revenue Service today announced interest rates will remain the same for the calendar quarter beginning April 1, 2024.

    For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here’s a complete list of the new rates:

    • 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
    • 5.5% for the portion of a corporate overpayment exceeding $10,000.
    • 8% for underpayments (taxes owed but not fully paid).
    • 10% for large corporate underpayments.

    Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

    Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

    The interest rates announced today are computed from the federal short-term rate determined during January 2024. See the revenue ruling for details.

    Revenue Ruling 2024-6 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2024-10, dated March 4, 2024.

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  • 26 Feb 2024 8:40 AM | Anonymous

    Taxpayer Advocacy Panel seeks civic-minded volunteers to apply for the 2025 member year

    Interested candidates from all states are encouraged to apply by March 15

    WASHINGTON — The Internal Revenue Service today announced vacancies in 29 states and territories for the volunteer-led Taxpayer Advocacy Panel (TAP).

    Applications for the 2025 TAP year are now being accepted from all civic-minded citizens looking for new ways to serve their community and speak up about issues that impact taxpayers living in the U.S. and abroad – no previous tax experience is required.

    TAP members volunteer to serve a three-year term and are expected to devote 200 to 300 hours per year (or about 5 hours each week) to panel activities. TAP continues to make a difference in the U.S. tax system, and new members have a unique opportunity to join this dynamic group.

    “More people interact with the IRS than any other government agency, so TAP volunteers have a truly unique opportunity to give back to their community by advocating for ways to improve the IRS and improve the American tax system,” said National Taxpayer Advocate Erin M. Collins. “TAP volunteers consistently work to identify issues, and most importantly, come up with solutions they can take directly to the IRS to get those problems fixed. Serving as a TAP member is not only rewarding it is important work and I encourage anyone with a passion for service to apply.”

    TAP members are selected to achieve demographic and geographic diversity, providing balanced representation from all 50 states, the District of Columbia, Puerto Rico and an additional member representing the interests of taxpayers working, living or doing business abroad.

    Since its founding, over 700 TAP members with a sense of civic duty, patriotism and a belief in an effective, well-regarded tax system have acted on behalf of taxpayers to improve the IRS.

    Each year TAP members work on a large number of referrals that come in from public forums, grassroots outreach and taxpayer submissions. Since 2002 TAP has submitted nearly 3,000 recommendations to the IRS to improve satisfaction with IRS services, products and procedures. These recommendations have advocated for improvements such as:

    • Allowing longer extension time to file tax returns;
    • Providing taxpayers the option to get copies of their tax returns when using Free File;
    • Establishing Customer Callback Technology over a majority of IRS toll-free telephone lines; and
    • Initiating quality improvements in the Volunteer Income Tax Assistance (VITA) tax return preparation program.

    Who can apply?

    Federal advisory committees such as TAP are required to have a balanced representation of different viewpoints. Therefore, applicants from under-represented groups, such as Native Americans and non-tax professionals, are particularly encouraged to apply.

    TAP is currently seeking candidates in the following states and territories: Alabama, Arkansas, California, Connecticut, Delaware, Hawaii, Indiana, International, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Puerto Rico, Rhode Island, Tennessee, Texas, Utah, Virginia, Vermont and West Virginia.

    However, candidates residing in all locations are encouraged to apply, as alternates will be chosen to fill any vacancies that may occur. All timely applications submitted by March 15, 2024, will be considered.

    TAP members must be U.S. citizens who are current with their federal tax obligations and able to commit 200 to 300 volunteer hours during the year. TAP members must also pass a Federal Bureau of Investigation criminal background check and cannot be federally registered lobbyists or current employees of the Department of the Treasury or the IRS. Former Treasury or IRS employees and former TAP members can be considered for appointment three years after their employment or previous TAP membership has ended. Additionally, tax practitioner applicants must be in good standing with the IRS (meaning not currently under suspension or disbarment).

    New TAP members will serve a three-year term starting in December 2024. Applicants chosen as alternate members will be considered to fill any vacancies in their areas during the next three years. Applications must be submitted by March 15, 2024, to be considered.

    Visit USAJOBS for more details about how to apply to become a TAP member.

    More about the Taxpayer Advocacy Panel

    TAP is a federal advisory committee that serves an important role in tax administration. TAP members are a diverse group of citizens who believe in an effective and well-regarded tax system.

    TAP members volunteer their time and energy to improve IRS services and taxpayer satisfaction by listening to taxpayers, identifying issues and making recommendations to improve IRS service and customer satisfaction.

    Oversight and program support for TAP is provided by the Taxpayer Advocate Service, an independent organization within the IRS led by the National Taxpayer Advocate. TAS helps resolve taxpayer account problems and makes administrative and legislative recommendations to mitigate systemic problems in tax administration.

    For additional information about TAP, visit ImproveIRS.org or call toll-free at 888-912-1227 and select prompt number five. Callers outside the U.S. may call 202-317-3087 (not a toll-free number) or email TAP staff at tap.recruitment@irs.gov. You can also watch the TAP recruitment video for more information about TAP and how to contribute to this dynamic group of volunteers.

    For media inquiries, contact TAS Media Relations at TAS.media@irs.gov or call the media line at (202) 317-6802.

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  • 26 Feb 2024 8:38 AM | Anonymous

    Treasury, IRS issue frequently asked questions related to the United States Department of Agriculture’s Discrimination Financial Assistance Program

    WASHINGTON —The Internal Revenue Service today issued frequently asked questions (FAQs) in Fact Sheet 2024-05 related to the United States Department of Agriculture’s (USDA) Discrimination Financial Assistance Program.

    The Inflation Reduction Act of 2022 (IRA) provides financial assistance for farmers, ranchers, and forest landowners who experienced discrimination by the USDA in farm lending prior to 2021.

    As a result, USDA created the USDA Discrimination Financial Assistance Program (Program).

    To be eligible to participate in the Program, an individual must have experienced discrimination by USDA in USDA farm lending or be a debtor with assigned or assumed USDA farm lending debt that was the subject of USDA discrimination.

    The Program covers discrimination based on race, color, or national origin/ethnicity (including status as a member of an Indian Tribe); sex, sexual orientation, or gender identity; religion; age; marital status; disability; or reprisal/retaliation for prior civil rights activity.

    More information about the Program may be found in the Discrimination Financial Assistance Program.

    More information about reliance is available.

    IRS-FAQ

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  • 26 Feb 2024 8:37 AM | Anonymous

    Inside This Issue

    1. Webinar: Scams, tax related identity theft and identity protection PIN for National Consumer Protection Week
    2. IRS ramps up business jet audits to ensure large corporations pay taxes owed
    3. Second quarter interest rates unchanged
    4. Avoid penalty, interest charges; pay taxes by April 15 deadline
    5. IRS shares March 1 deadline for many farmers and fishers
    6. 2024 Tax Time Guide: What to know before completing a tax return
    7. Special Saturday hours available at more than 50 Taxpayer Assistance Centers across the country
    8. Taxpayer Advocacy Panel seeks volunteers for 2025
    9. News from the Justice Department’s Tax Division

    1.  Webinar: Scams, tax related identity theft and identity protection PIN for National Consumer Protection Week

    The IRS and the Federal Trade Commission will host the webinar Scams, tax related identity theft and identity protection PIN on March 6 at 1 p.m. EST. Learn about tax-related identity theft scams, IRS Identity Protection Personal Identification Number (PIN) Program, reporting and recovery methods and more. To register for this webinar and for additional information on future webinars hosted by the IRS, visit the Webinars for Tax Practitioners webpage.

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    2.  IRS ramps up business jet audits to ensure large corporations pay taxes owed

    The IRS plans to begin dozens of audits on business aircraft involving personal use. The audits will focus on aircraft usage by large corporations, large partnerships and high-income taxpayers and whether the use of jets is being properly allocated between business and personal reasons. Advanced analytics and Inflation Reduction Act resources will be used to conduct the audits. This is part of a larger effort the IRS is taking to ensure large corporate, large partnerships and high-income individual filers pay the taxes they owe.

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    3.  Second quarter interest rates unchanged

    The IRS announced no change in second quarter interest rates beginning April 1. The interest rates are computed from the federal short-term rate determined during January 2024. See Revenue Ruling 2024-6 for details.

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    4.  Avoid penalty, interest charges; pay taxes by April 15 deadline

    Avoid interest and penalty charges by filing your clients’ returns and paying any amounts due by the April 15 deadline. For more information, watch the video Avoiding Interest and Penalty Charges. The video is also available in SpanishChinese and Korean.

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    5.  IRS shares March 1 deadline for many farmers and fishers

    Tax pros: Your farmer and fisher clients who chose to forego making estimated tax payments by Jan. 16 must file their 2023 federal income tax return and pay all taxes due by March 1. The deadline allows farmers and fishers to avoid any estimated tax penalties. Those who made a qualifying payment by Jan. 16, 2024, can wait until April 15 to file and still avoid estimated tax penalties. For details, see Publication 505, Tax Withholding and Estimated Tax. The deadline in Maine and Massachusetts is April 17.

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    6.  2024 Tax Time Guide: What to know before completing a tax return

    In an effort to provide more resources for taxpayers during this filing season, the IRS kicked off its 2024 Tax Time Guide series to help remind taxpayers of key items needed to file a 2023 tax return. The four-part weekly series explains the essentials to filing an accurate tax return, changes to credits and deductions, Form 1099-K reporting requirements and more. The IRS also has a variety of information available on IRS.gov to help taxpayers, including a special free help page.

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    7.  Special Saturday hours available at more than 50 Taxpayer Assistance Centers across the country

    The IRS has announced special Saturday hours at specific Taxpayer Assistance Centers (TACs)for the next four months. The special Saturday hours of operation will take place from 9 a.m. to 4 p.m., on Feb. 24, March 16, April 13 and May 18 at participating TAC locations. Normally, TACs are only open Monday through Friday, with appointments needed. However, during these Saturday hours, appointments are not required. IRS advises taxpayers to visit the special Saturday hours webpage on IRS.gov for a list of participating TAC locations.

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    8.  Taxpayer Advocacy Panel seeks volunteers for 2025

    The IRS announced vacancies in 29 states and territories for the volunteer-led Taxpayer Advocacy Panel (TAP). Applications for the 2025 TAP year are now being accepted from individuals looking for new ways to serve their community and speak up about issues that impact taxpayers. No previous tax experience is required.

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    9.  News from the Justice Department’s Tax Division

    The Justice Department filed a complaint seeking to bar Julius T. Price and his tax return preparation business, Price’s Accounting Firm Inc., from preparing federal income tax returns for others. By repeatedly understating his clients’ tax liabilities, the complaint alleges that the United States has been harmed by Price’s conduct resulting in the significant loss in tax revenue of an estimated $1.5 million. 

    Tax return preparer Joseph Korha, of Phoenix, Arizona, and formerly of North Dakota, pleaded guilty to five counts of preparing false tax returns. In total, Korha prepared more than 100 false returns and caused a tax loss to the IRS of approximately $294,000. Korha is scheduled to be sentenced on June 3. He faces a maximum penalty of three years in prison for each count as well as a period of supervised release, restitution and monetary penalties.

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  • 16 Feb 2024 1:39 PM | Anonymous

    Dear IVES Participants,

    On February 7 ,2024, we identified technical issues on the Income Verification Express Services (IVES) E-Fax system that appear to have begun Saturday January 20, 2024. Some faxed requests that were successfully transmitted to the IRS experienced a routing issue as some batches were corrupted before entering the processing queue. The issue was resolved as of February 13, 2024, at 8:00 AM EST. 

    As a result, any original batches that were submitted prior to February 13, 2024, at 8:00 AM EST that have not received an acknowledgement or received their results/rejection will need to be re-submitted. Additionally, any disputes that were submitted to the dispute line prior February 7, 2024, at 4:00 PM EST that have not been processed will need to be resubmitted. Please ensure any re-submissions utilize the original coversheet, batch content and batch number to prevent duplicate processing and/or billing issues. Any original submissions will need to be resubmitted to the normal processing line; any disputes will need to be resubmitted to the dispute line. 

    Thank you for your patience as we work through these issues,

    IRS IVES Team

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