IRS Tax News

  • 21 Oct 2024 12:26 PM | Anonymous

    Notice 2024-76provides guidance on the corporate bond monthly yield curve for September 2024, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I).

    Notice 2024-76 will be published in Internal Revenue Bulletin 2024-45, on November 4, 2024.


  • 21 Oct 2024 8:26 AM | Anonymous

    Inside This Issue

    1. PTIN renewal season now underway
    2. IRS launches 2024 IRS Nationwide Tax Forum Online with 18 new seminars
    3. Tax Professional Awareness Week begins Oct. 21
    4. IRS warns taxpayers of hurricane charity scams; shares tools to help verify legitimate groups
    5. Third-party payers’ consolidated claims for ERC must include statement
    6. IRS offers free webinar on Nov. 18 to assist large businesses with Compliance Assurance Process
    7. Upcoming webinars for tax practitioners
    8. Technical Guidance

    1.  PTIN renewal season now underway

    PTIN (Preparer Tax Identification Number) renewal season is now underway for all tax professionals. The fee to obtain or renew a PTIN for 2025 is $19.75. All current PTIN holders will receive formal notification from the IRS Return Preparer Office in the coming weeks.

    All PTINs expire on Dec. 31, and must be renewed annually. Tax professionals and enrolled agents must have a valid PTIN to prepare any federal tax returns for compensation.

    More information about PTINs can be found at www.irs.gov/ptin.

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    2.  IRS launches 2024 IRS Nationwide Tax Forum Online with 18 new seminars

    The IRS this week launched the 2024 Nationwide Tax Forum Online, giving tax professionals access to 18 seminars recorded at the 2024 IRS Nationwide Tax Forum. The Nationwide Tax Forum Online features information on tax legislation, IRS procedures, and key topics for the upcoming tax season.

    Each seminar includes a 50-minute interactive video presentation with synchronized slides, downloadable materials and transcripts. Courses can be taken for continuing education (CE) credit for a fee of $29, or they can be reviewed for free (no CE credit).

    The IRS Nationwide Tax Forum Online is a continuing education provider certified by the National Association of State Boards of Accountancy (NASBA) and the IRS Return Preparer Office. Visit the Nationwide Tax Forum Online website to learn more.

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    3.  Tax Professional Awareness Week begins Oct. 21

    Tax Professional Awareness Week begins Oct. 21, featuring educational initiatives to equip tax professionals with tools and information they need before filing season to help them prepare accurate returns.

    Paid tax professionals play an important role in assisting taxpayers with their filing obligations. More than half of taxpayers who claim refundable credits like the Earned Income Tax Credit or Child Tax Credit rely on paid tax professionals to accurately file their return.

    For more information, please visit the Tax Professional Awareness Week page on IRS.gov.

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    4.  IRS warns taxpayers of hurricane charity scams; shares tools to help verify legitimate groups

    The IRS this week warned taxpayers of scammers who use fictious charities to obtain sensitive personal and financial data from unwary donors in the wake of Hurricanes Milton and Helene. Fake charities are frequently established by fraudsters to exploit peoples’ generosity during natural disasters.

    Those who wish to donate should first check the Tax Exempt Organization Search (TEOS) tool on IRS.gov to locate or confirm eligible, reputable charities. With this tool, people can:

    • Verify the legitimacy of a charity
    • Check its eligibility to receive tax-deductible charitable contributions, and
    • Search for information about an organization's tax-exempt status and filings

    The IRS also urges individuals encountering a fake or suspicious charity to see the FBI’s resources on Charity and Disaster Fraud.

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    5.  Third-party payers’ consolidated claims for ERC must include statement

    The IRS recently announced a consolidated process for third-party payers to resolve clients’ incorrect claims for the Employee Retention Credit. Any consolidated claim the IRS receives after Oct. 17, 2024, must have the full statement provided at Preparing your consolidated claim. The statement verifies that the consolidated claim:

    • Includes only business clients that were part of a previous ERC claim; and
    • Doesn’t increase the amount of ERC claimed by clients.

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    6.  IRS offers free webinar on Nov. 18 to assist large businesses with Compliance Assurance Process

    The IRS announced a free webinar to help large businesses taxpayers better understand the Compliance Assurance Process (CAP). The webinar will take place Nov. 18, from 1 p.m. to 2:30 p.m. ET. Tax professionals can register on the CAP program webinar registration page. Space is limited to the first 1,000 registrants.

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    7.  Upcoming webinars for tax practitioners

    The IRS offers the upcoming live webinars to the tax practitioner community:

    • Energy Efficient Home Improvements Credit & Residential Clean Energy Property Credit: How the Inflation Reduction Act revised these credits on Nov. 14, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of completion are being offered. Click here to register.
    • Beneficial Ownership Information Presented by Financial Crimes Enforcement Network (FinCEN) on Nov. 19, at 2 p.m. ET. No continuing education credit is being offered. Click here to register. 

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    8.  Technical Guidance

    Notice 2024-71 provides a safe harbor under section 213 of the Internal Revenue Code.

    Notice 2024-75 expands the list of preventive care benefits permitted to be provided by a high deductible health plan (HDHP) under section 223(c)(2)(C) of the Internal Revenue Code without a deductible, or with a deductible below the applicable minimum deductible for the HDHP.

    Notice 2024-77 provides guidance in the form of questions and answers on sections 414(aa) and 402(c)(12) of the Internal Revenue Code (Code) as added by section 301(b) of Division T of the SECURE 2.0 Act of 2022.

    Revenue Ruling 2024-24 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by Section 1274.


  • 21 Oct 2024 8:26 AM | Anonymous

    WASHINGTON – The Treasury Department and Internal Revenue Service today issued Notice 2024-74 for the Sustainable Aviation Fuel (SAF) credit created by the Inflation Reduction Act. 

    The SAF credit ranges from $1.25 to $1.75 for each gallon of sustainable aviation fuel in a qualified mixture. To qualify for the credit, the sustainable aviation fuel must have a minimum reduction of 50% in lifecycle greenhouse gas emissions. 

    The Treasury Department and IRS have issued several notices regarding the SAF credit, including Notice 2024-37, which allows a SAF producer to use the 40BSAF-GREET 2024 model, to calculate the greenhouse gas emissions reduction percentage for purposes of the SAF credits.  

    The DOE released an updated version of the 40BSAF-GREET 2024 model and accompanying user manual in October 2024 that addresses a calculation issue related to catalyst inputs for the Alcohol to Jet (ATJ) SAF pathways.  

    Notice 2024-74 provides that a taxpayer who uses a 40BSAF-GREET 2024 safe harbor in Notice 2024-37 to calculate its emissions reduction percentage with respect to claims that relate to the sale or use of a SAF qualified mixture after the effective date, must use the October 2024 version of the 40BSAF-GREET 2024 model. 


  • 21 Oct 2024 8:25 AM | Anonymous

    Notice 2024-74 provides additional guidance to taxpayers using the safe harbors in Notice 2024-37 with respect to the sustainable aviation fuel (SAF) credit. Notice 2024-74 provides that a taxpayer using a 40BSAF-GREET 2024 safe harbor to calculate its emissions reduction percentage with respect to claims that relate to the sale or use of a SAF qualified mixture after the effective date of the notice must use the newly released October 2024 version of the 40BSAF-GREET 2024 model. 

    Notice 2024-74 will be in IRB:  2024-45, dated 11/04/2024.


  • 15 Oct 2024 2:46 PM | Anonymous

    WASHINGTON – The Internal Revenue Service will offer a free webinar to help large business taxpayers understand the Compliance Assurance Process (CAP) by discussing updates and clarifications to the program to better prepare applicants.

    The CAP helps large corporate taxpayers improve federal tax compliance through real-time issue resolution tools that promote accurate tax returns and shorten the IRS examination process.

    The webinar will take place from 1 p.m. to 2:30 p.m. ET on Monday, Nov. 18, 2024. Those who are interested can register on the CAP Program Webinar registration page. Space is limited to the first 1,000 registrants.

    In response to questions concerning the changes to the eligibility requirements for the CAP program, the IRS is providing some clarifications.

    To be eligible to apply for CAP, applicants must:

    • Have assets of $10 million or more,
    • Be a U.S. publicly traded C-corporation with a legal requirement to prepare and submit SEC Forms 10-K, 10-Q, and 8-K or a U.S. privately held C-corporation including foreign owned.
      • S. privately held C-corporations will be required to timely submit audited financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS) or another permissible method, as deemed appropriate by the IRS, specific to the taxpayer applying to the CAP program on an annual basis and unaudited financial statements on a quarterly basis.
    • Not be under investigation by, or in litigation with, any government agency that would limit the IRS’s access to current tax records.

    As a new exception, taxpayers will be eligible for the CAP program if they have a tax return that remains open due to outstanding Inflation Reduction Act (IRA) and/or Creating Helpful Incentives to Produce Semiconductors Act (CHIPS) tax issues.

    Taxpayers may apply for the 2025 CAP program until Oct. 31, 2024. The IRS will inform applicants if they’re accepted into the program in February 2025.

    To prepare new applicants for the CAP program, the IRS will assist taxpayers in meeting the eligibility requirements. Taxpayers currently under IRS examination and possibly not meeting the current eligibility criteria are encouraged to discuss their interest in CAP with their local IRS team or by sending an email to the CAP mailbox found on the CAP webpage.

    Launched in 2005, CAP employs real-time issue resolution through transparent and cooperative interaction between taxpayers and the IRS to improve federal tax compliance by resolving issues prior to the filing of a tax return. To learn more, visit the CAP FAQ webpage.


  • 15 Oct 2024 2:45 PM | Anonymous

    Notice 2024-77 provides guidance in the form of questions and answers on sections 414(aa) and 402(c)(12) of the Internal Revenue Code (Code) as added by section 301(b) of Division T of the SECURE 2.0 Act of 2022.  Section 414(aa) of the Code addresses the requirements of sections 401(a) and 403 with respect to inadvertent benefit overpayments. Section 402(c)(12) addresses the treatment of certain inadvertent benefit overpayments as eligible rollover distributions.

    Notice 2024-77will be published in Internal Revenue Bulletin 2024-45, on November 4, 2024.


  • 11 Oct 2024 3:16 PM | Anonymous

    WASHINGTON — The Internal Revenue Service announced today in Revenue Procedure 2024-39

    that grants certain applicable entities that are making an elective payment election a six-month automatic extension of time to file an original or superseding Form 990-T, Exempt Organization Business Income Tax Return, with relevant schedules and forms.  

    This relief means that applicable entities that were required to but did not file a timely extension on Form 8868, Application for Extension of Time to File an Exempt Organization Return, will be granted a six-month automatic extension of time to file a Form 990-T for purposes of making an elective payment election from the original return due date.  

    The document also provides a procedure to follow if an applicable entity entitled to this relief receives a notice that their election was ineffective because the return on which it was made was filed after the due date of the return and on or before the automatically extended due date provided under the revenue procedure. 

    In addition to the six-month automatic extension of time to file for certain applicable entities, this revenue procedure temporarily waives the requirement to make an elective payment election on an electronically filed Form 990-T, allowing applicable entities that would otherwise be required to file Form 990-T electronically to make an elective payment election on a paper-filed Form 990-T if they follow certain procedural requirements.  

    The relief provided in this revenue procedure applies to applicable entities described above that are filing a Form 990-T to make an elective payment election for a taxable year ending on any day from Dec. 31, 2023, through Nov. 30, 2024. 

    Resources 


  • 11 Oct 2024 3:15 PM | Anonymous

    WASHINGTON — In the wake of the devastating hurricanes that have ravaged Florida and the Southeast in recent weeks, the Internal Revenue Service today reassured victims that it stands ready to provide the tax-related assistance they need to recover from these storms.

    IRS.gov has a variety of information to help disaster victims navigate common situations in the aftermath of disasters. The IRS also has a special hotline specifically dedicated to taxpayers with disaster-related tax questions; disaster victims can call the agency’s disaster hotline at 866-562-5227.

    Here is a rundown on tax help available from the IRS.

    More time to file and pay

    The IRS automatically gives taxpayers whose address of record is in a disaster-area locality more time to file returns and pay taxes. Taxpayers get the extra time without having to ask for it.

    • Currently, taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Tennessee and Virginia, who received extensions to file their 2023 returns have until May 1, 2025, to file. Tax-year 2023 tax payments are not eligible for this extension. In addition, May 1 is also the deadline for filing 2024 returns and paying any tax due.

    The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

    This page also provides disaster updates and links to resources, and information is usually available on the IRS Twitter (now X) account as well.

    Disaster payments usually tax-free

    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.

    Retirement plan help

    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.

    Disaster loss deduction may be available

    In some instances, individuals and businesses in a federally-declared disaster area can qualify for a casualty loss tax deduction. The deduction is available for damaged or destroyed property not covered by insurance or other reimbursement and can result in a larger refund.

    A unique feature of this deduction is that taxpayers can choose to claim it 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

    (the 2023 return filed this year). For individual taxpayers, the deadline for making this election is Oct. 15, 2025.

    If deductions exceed a taxpayer’s income, it can result in a net operating loss (NOL). A taxpayer need not have a business to have a NOL from a casualty. A NOL can normally be carried forward and deducted in a future tax year. See Publication 547, Casualties, Disasters, and Thefts,and Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts, for details.

    Free tax transcripts available

    The IRS reminds anyone whose tax records were lost or destroyed, or who needs tax records to apply for disaster assistance that they can get a free transcript of their returns from the IRS. Immediate access to these transcripts is available through the Get Transcriptlink on IRS.gov. Alternatively, taxpayers can use Get Transcript to request that transcripts be mailed to them. They can also call 800-908-9946 to request mail delivery or submit Form 4506-T, Request for Transcript of Tax Return.

    As a reminder, taxpayers must have filed all required tax returns in order to qualify for disaster loans or grants for business owners, homeowners and renters from the Small Business Administration.

    Free copy of tax return

    Disaster-area taxpayers can get a free copy of their tax return by filing Form 4506, Request for Copy of Tax Return. The IRS waives the usual fees and expedites requests for copies of returns for people who need them to apply for disaster-related benefits or to file amended returns claiming disaster-related losses. To speed processing, be sure to notate that this is a disaster-related request and list the state and type of event.

    Address change

    After a disaster, people might need to temporarily relocate. Those who move should notify the IRS of their new address by submitting Form 8822, Change of Address.

    Disaster hotline

    Taxpayers with disaster-related tax questions can call the agency’s disaster hotline at 866-562-5227.

    Taxpayers should also call this number if they live outside the disaster area but believe they qualify for a disaster-related extension or deadline postponement. This might be true, for example, if their records necessary to meet a deadline occurring during the postponement period are located in the affected area. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

    More information

    The IRS encourages affected taxpayers to review all federal disaster relief at DisasterAssistance.gov.

    Here are other helpful IRS resources:


  • 11 Oct 2024 11:21 AM | Anonymous

    WASHINGTON — In response to disruptions resulting from Hurricane Milton, the Internal Revenue Service will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway throughout the state of Florida. 

    This relief is in addition to the limited relief provided in response to Hurricane Helene. The relief begins on Oct. 9, 2024, and will remain in effect through Oct. 30, 2024. 

    This penalty relief is available to any person that sells or uses dyed diesel fuel in vehicles suitable for highway use. In the case of the operator of the highway vehicle in which the dyed diesel fuel is used, the relief is available only if the operator or the person selling such fuel pays the tax of 24.4 cents per gallon that is normally applied to undyed diesel fuel for highway use. 

    The IRS will not impose penalties for failure to make semimonthly deposits of tax for dyed diesel fuel sold for use or used in diesel powered vehicles on the highway in the state of Florida during the relief period. IRS Publication 510, Excise Taxes, has information on the proper method for reporting and paying the tax. 

    Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use and to local governments. 

    The IRS is closely monitoring the situation and will provide additional relief as needed.


  • 11 Oct 2024 11:20 AM | Anonymous

    WASHINGTON — Due to Hurricane Milton, the Internal Revenue Service today announced relief for individuals and businesses in 51 counties in Florida.  

    Individuals and businesses in six counties that previously did not qualify for relief under either Hurricane Debby or Hurricane Helene will receive disaster tax relief beginning Oct. 5, 2024, and concluding on May 1, 2025. They are Broward, Indian River, Martin, Miami-Dade, Palm Beach and St. Lucie. 

    In addition, individuals and businesses in 20 counties previously receiving relief under Debby, but not Helene will receive disaster tax relief under Hurricane Milton, from Aug. 1, 2024, thru May 1, 2025. They are Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia counties. 

    As a result, affected taxpayers in all of Florida now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments, including 2024 individual and business returns normally due during March and April 2025 and 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments.   

    The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Individuals and households that reside or have a business in any one of the localities listed above qualify for tax relief. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov. 

    Filing and payment relief 

    Hurricane Milton-related tax relief postpones various tax filing and payment deadlines that occurred beginning on Oct. 5, 2024, and ending on May 1, 2025 (postponement period). As a result, affected individuals and businesses will have until May 1, 2025, to file returns and pay any taxes that were originally due during this period. 

    This means, for example, that the May 1, 2025, deadline now applies to: 

    • Any individual or business that has a 2024 return normally due during March or April 2025.
    • Any individual, C corporation or tax-exempt organization that has a valid extension to file their calendar-year 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the hurricane occurred.
    • 2024 quarterly estimated tax payments normally due on Jan. 15, 2025, and 2025 estimated tax payments normally due on April 15, 2025.
    • Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, Jan. 31, 2025, and April 30, 2025. 

    In addition, for localities affected by Hurricane Milton, penalties for failing to make payroll and excise tax deposits due on or after Oct. 5, 2024, and before Oct. 21, 2024, will be abated, as long as the deposits are made by Oct. 21, 2024. Localities eligible for this relief are: Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union and Volusia counties. 

    Deposit penalty relief and other relief was previously provided to taxpayers affected by Debby and Helene. For details, see the Florida page on IRS.gov. The Disaster assistance and emergency relief for individuals and businesses page also has details, as well as information 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 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 efforts who are affiliated with a recognized government or philanthropic organization. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. 

    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 (the 2023 return 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 – 3622-EM – 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 the hurricane and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov

    Reminder about tax return preparation options 

    • MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members and some veterans, with no income limit.


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