WASHINGTON – The Department of Treasury and Internal Revenue Service issued proposed regulations to provide guidance for the Alternative Fuel Vehicle Refueling Property Credit. 

The Inflation Reduction Act amended the credit for qualified alternative fuel vehicle refueling property. The changes apply to qualified alternative fuel vehicle refueling property placed in service after Dec. 31, 2022, and before Jan. 1, 2033. 

The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year.  The credit amount for depreciable property is 6% of the cost of the qualified property placed in service during the tax year but may be increased to 30% of the cost of the qualified property if the prevailing wage and apprenticeship requirements are met. The credit is limited to $1,000 per item of non-depreciable property and $100,000 per item of depreciable property. 

Property must be placed in service in an eligible census tract to qualify for the credit. An eligible census tract is any population census tract that is a low-income community or any population census tract that is not an urban area.  The proposed regulations provide guidance for determining whether a population census tract is an eligible census tract. 

The proposed regulations also provide guidance on how to calculate the credit, including what constitutes an “item” of qualified alternative fuel vehicle refueling property, the additional costs considered in determining the cost of the item, and how to treat dual-use property. 

Additionally, today’s guidance provides definitions, general rules, and special rules, including basis reduction, recapture, and apportionment of the credit between business-use and personal-use property. 

Today, the Treasury Department and the IRS also issued Notice 2024-64 that modifies Notice 2024-20, that was published on Feb. 12, 2024 that provided guidance on eligible census tracts. 

Notice 2024-20 refers taxpayers to Appendix A and Appendix B that contain eligible census tracts using a unique identifier called an 11-digit census tract GEOID. 

Today’s notice modifies Notice 2024-20 by updating the mapping tools that taxpayers can use to identify the 11-digit census tract GEOID for a location where a property is placed in service.  Notice 2024-64 also extends the time period to which Notice 2024-20 applies.  

More information about the alternative fuel vehicle refueling property credit may be found on the Inflation Reduction Act of 2022 page on IRS.gov.

WASHINGTON – The Internal Revenue Service today announced that Taxpayer Services Chief Kenneth C. Corbin has received the 2024 Government Executive of the Year Award from the Service to the Citizen Awards program.

This recognition highlights Corbin’s outstanding contributions to public service and his dedication to improve the service provided to taxpayers. The prestigious annual award recognizes federal leaders who demonstrate excellence in delivering services that impact the public.

“This is such a well-deserved honor,” said IRS Commissioner Danny Werfel. “Ken’s commitment to service is evident in all the ways he leads his team, making sure they have what they need to go above and beyond for the nation’s taxpayers.”

Corbin serves as the Taxpayer Services Chief at the IRS. He is responsible for directing efforts to ensure the IRS serves taxpayers through multiple platforms and channels. The IRS’s Taxpayer Services Division assists taxpayers in understanding and fulfilling their tax responsibilities. The division is responsible for the processing of more than 150 million individual income tax returns, provides customer service, offers resources for tax preparation and conducts outreach and education to help improve taxpayer compliance and overall engagement.

Under Corbin’s leadership, the IRS has implemented several transformative initiatives focused on improving taxpayer online services via IRS.gov, reducing wait times for tax help and simplifying tax filing processes. His initiatives have resulted in an 84% customer approval rating and 3.7 billion views of IRS digital resources, enabling millions of Americans to access tax-related information and services more efficiently.

“I am deeply honored to receive this award,” said Corbin. “This recognition is a testament to the hard work and dedication of the entire IRS team, which strives every day to make our service more accessible, efficient and responsive to the needs of the American people.”

Corbin, who began his IRS career in 1986, has served as IRS Taxpayer Services Chief since 2017. He helped introduce the “Where’s My Refund” tool, one of the most popular features on IRS.gov, which helps taxpayers track their refund. Among the more visible initiatives implemented under Ken’s leadership are a callback feature to reduce hold times for taxpayers calling IRS toll free, efforts to support disabled and underserved communities, services offered in multiple languages and enhanced accessibility features on IRS platforms. His vision has focused on leveraging technology to create a taxpayer-first approach, ensuring that all taxpayers receive equitable service and support.

The award was presented to Corbin at the Service to the Citizen Awards ceremony on Sept. 13 in Washington, D.C.

More than 100 IRS employees were also named as 2024 Service to the Citizen Award winners for delivering for taxpayers. IRS employees were recognized in Category 1: Building a Customer-Focused Culture and in Category 2: Delivering Excellence in Digital Services, including now retired Taxpayer Services Deputy Chief Kevin Morehead and IT Senior Executive Jim Keith.

The Service to the Citizen Awards program recognizes federal, state and local government or industry employees and teams who demonstrate excellence in delivering services that impact the lives of the public. Presented by the Public Service Leadership Academy, the awards honor those who have shown innovation, dedication and impact in enhancing customer service, digital services and overall government responsiveness to the needs of citizens.

Visit Service to the Citizen for more information about the Government Executive of the Year Award and the Service to the Citizen Awards.

WASHINGTON — The Internal Revenue Service has appointed 10 new members to the Electronic Tax Administration Advisory Committee or ETAAC. 

Founded by statute in 1998, the ETAAC serves as a public forum for discussing electronic tax administration issues. Initially, the committee's main objective was to encourage paperless filing of tax and information returns. However, its focus has broadened in recent years. ETAAC members closely collaborate with the Security Summit, a partnership involving the IRS, state tax administrators and the national tax industry to combat identity theft and refund fraud. 

The committee is made up of state tax officials, cybersecurity and information security experts, tax professionals, tax software developers and representatives from the payroll and financial sectors, along with consumer groups. 

The following individuals have been appointed to serve three-year terms on the committee beginning in September 2024: 

David Casey, Madison, Wisconsin - Casey was appointed Secretary of the Wisconsin Department of Revenue in April 2024. He previously served as deputy secretary of the department from 2019 to 2022. Casey has a bachelor’s degree in economics from Grinnell College. Additionally, he holds a Master of Public Administration in public policy and management from Carnegie Mellon University. 

Manuel Dominguez, Kansas City, Missouri - Dominguez is Program Manager, Agency and Industry Relations with The Tax Institute at H&R Block. He participates in the IRS Security Summit and the Identity Theft Tax Refund Fraud Information Sharing and Analysis Center. He is a co-lead for the Council for Electronic Revenue Communication Advancement's Digital Services working group. Dominguez holds a bachelor’s degree in accounting from the University of Phoenix. 

Jane Chou, San Diego, California - Chou is a tax consultant, tax professional, Chinese Mandarin interpreter and founder of CKYFS Inc. Chou belongs to the National Association of Tax Professionals. She is a U.S. Navy veteran who served as a Military Cryptologic Technician Interpretive. Chou holds a bachelor’s degree in liberal arts from Regent College. 

Richard Lavina, Coconut Grove, Florida - Lavina is co-founder and CEO of Taxfyle. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants (AICPA) and Florida Institute of CPAs. He previously worked at PwC. Lavina holds a Master of Accountancy from Florida International University and Bachelor of Business Administration from the University of Miami. 

Jack Mao, San Francisco, California - Mao is founder and CEO of ZipperTax, Inc. Mao is an IRS enrolled agent and manages his own tax firm in Palo Alto, California, as well as a mid-size Volunteer Income Tax Assistance site in partnership with the IRS and Stanford University. Mao studied computer science at Stanford. 

Jose Martinez, East Rutherford, New Jersey - Martinez is in private accounting practice and is the founder of J.A. Martinez Jr. Inc. He has over 25 years of experience as a tax accountant and has worked with a variety of accounting firms. Martinez holds a bachelor’s degree in accounting from Rutgers. 

Ryan Minnick, Orlando, Florida - Minnick is chief operating officer with the Federation of Tax Administrators (FTA) and a regular host of FTA’s podcast, FTA Tax Breaks. Minnick is also a speaker and writer on the topic of technology and its application in tax and revenue. He holds a Bachelor of Business Administration from the College of William and Mary. 

Amy Nowak, New Orleans, Louisiana - Nowak is a senior attorney in tax law at Frost Law in Annapolis, Maryland. She received her Juris Doctor from Loyola University New Orleans College of Law and her Master of Laws in taxation from Boston University School of Law. During her time in law school, Nowak was a legal intern with the IRS Office of Chief Counsel. 

Graham O’Neill, Philadelphia, Pennsylvania - O'Neill has broad experience in IRS Volunteer Income Tax Assistance program management and tax credit program administration. O’Neill is the former Director of Partnerships & Virtual Tax Operations at the Campaign for Working Families, and former Administrator of Taxpayer Assistance & Credit Programs for the Philadelphia Department of Revenue. O’Neill holds a Bachelor of Arts in history from Dickinson College. 

Kristine Willson, CPP, Snohomish, Washington - Willson is Director of Global Payroll at Talkdesk, Inc. She has over three decades of payroll, benefits and accounting experience and is a Certified Payroll Professional. Willson has worked in payroll with a variety of industries including biotechnology, insurance, retail and healthcare. She is a member of PayrollOrg, where she is co-chair of the Electronic Payments Committee.

Inside This Issue

1. Treasury, IRS announce over $1 billion recovered in collections from wealthy non-filers under IRA initiatives
2. Register for the IRS Business Tax Account Virtual Focus Groups; first registration deadline is Sept. 6
3. Deadline to submit third estimated tax payment is Sept. 16; more time may be granted to taxpayers in disaster-affected areas
4. IRA funding continues to modernize online tools, improve taxpayer service
5. September is National Preparedness Month; taxpayers encouraged to prepare for natural disasters
6. Upcoming webinars for tax professionals
7. Technical Guidance

1.  Treasury, IRS announce over $1 billion recovered in collections from wealthy non-filers under IRA initiatives

The U.S. Secretary of Treasury and the IRS Commissioner made remarks at the IRS campus in Austin, Texas, to announce new initiatives under the Inflation Reduction Act that will ensure wealthy individuals pay their taxes, enhance taxpayer service through the Digital First Initiative and modernize essential technology. Approximately $1.1 billion have been recovered because of the nearly 80% of 1,600 millionaires having paid their outstanding tax debt. This is an additional $100 million just since July, when Treasury and IRS announced reaching the $1 billion milestone.

Through the Digital First Initiative, the IRS is pursuing a vision where taxpayers can do all their transactions with the IRS digitally if they prefer. Thanks to Inflation Reduction Act resources, the IRS has launched more digital tools to provide improved digital experience for taxpayers:

• More than two dozen new features and enhancements to Individual and Tax Professional Online Account;
• The launch of Business Tax Account;
• The release of 30 digital mobile-adaptive forms;
• The ability for taxpayers to receive their refund status via a conversational hotline;
• A mobile-friendly web tool for Where’s My Refund; and
• Direct File, a new tool that allows taxpayers to file for free, directly with the IRS.

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2.  Register for the IRS Business Tax Account Virtual Focus Groups; first registration deadline is Sept. 6

Tax pros: The IRS is conducting virtual focus groups to gather feedback on the Business Tax Account (BTA) authorization process. We are looking for comments and suggestions from stakeholders who will use the BTA online platform. BTA was created to allow business entities to communicate and transact business with the IRS. If you are a CEO, shareholder, partner, designated official or can legally bind your organization, this focus group is for you. To register, send an email with “Focus Group Volunteer: Business Tax Account” in the subject line to txo.share.with.us@irs.gov. Include the following information in the email body:

• Name
• Type of Entity (i.e., Partnership, S Corporation, etc.)
• Position Title
• State
• Email Address
• Phone Number
• Session Date
• Special accommodations

Focus groups are limited to 12 participants. Selected volunteers will receive a confirmation email with a meeting link from txo.share.with.us@irs.gov. Below are images of the solicitation email that includes the focus group dates and times, and deadlines to register. Right-click on the images to save and open the files from your device. Please note: the first round of registration deadlines is September 6.

 

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3.  Deadline to submit third estimated tax payment is Sept. 16; more time may be granted to taxpayers in disaster-affected areas

Remind your clients that the deadline to submit the third quarter estimated tax payment is September 16. Delay in payment deadlines may be automatically granted to taxpayers who are impacted by disasters in 17 states, Puerto Rico and the Virgin Islands. Deadlines vary depending upon the disaster and locality. For specifics on all recent disaster relief, visit the Around the nation page on IRS.gov.

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4.  IRA funding continues to modernize online tools, improve taxpayer service

The IRS continues to modernize its online tools to help taxpayers take advantage of clean energy credits, thanks to funding provided by the Inflation Reduction Act (IRA). Through the IRA and related funding, the IRS can update outdated systems, create new, fully electronic systems and processes, improve compliance and reduce fraud, thereby revolutionizing taxpayer services. The momentous funding will continue the IRS's ability to integrate modern technology to deliver unprecedented service quality and efficiency to taxpayers, all while supporting the clean energy tax incentives.

Visit credits and deductions under the Inflation Reduction Act on IRS.gov to learn more.

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5.  September is National Preparedness Month; taxpayers encouraged to prepare for natural disasters

September is designated as National Preparedness Month. Now is a good time to create or review emergency preparedness plans for surviving natural disasters. The IRS recommends taxpayers take the following steps:

• Protect key documents;
• Maintain detailed inventory lists (individuals and businesses); 
• Reconstruct records; and
• Verify or create an Electronic Federal Tax Payment System (EFTPS) account.

Visit Ready.gov/September to learn more about National Preparedness Month.

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6.  Upcoming webinars for tax professionals

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

• Dealing with disasters from an individual tax perspective on Sept. 26, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of completion are being offered.
• U.S. taxation of stock-based compensation received by nonresident aliens on Oct. 3, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of completion are being offered.

For more information or to register, visit Webinars for tax practitioners webpage.

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7.  Technical Guidance

Notice 2024-65 requests comments from the public regarding all aspects of sections 103 and 104 of the SECURE 2.0 Act of 2022.

Revenue Procedure 2024-35 provides the applicable percentage table in § 36B(b)(3)(A) of the Internal Revenue Code for taxable years beginning in calendar year 2024.

$172 million recovered from 21,000 wealthy taxpayers who have not filed tax returns since 2017 in first six months of new initiative 

WASHINGTON — Today, U.S. Secretary of the Treasury Janet L. Yellen and Commissioner of the Internal Revenue Service Danny Werfel are delivering remarks at the Austin, Texas, IRS campus to announce new milestones under Inflation Reduction Act initiatives to ensure wealthy individuals pay taxes owed, improve service for taxpayers through the Digital First Initiative and modernize foundational technology. 

Ensuring high-income, high-wealth taxpayers pay taxes owed 

• The IRS in February 2024 launched an initiative to pursue 125,000 high-income, high-wealth taxpayers who have not filed taxes since 2017. These are cases where IRS has received third party information—such as through Forms W-2 and 1099s—indicating these people received income between $400,000 and $1 million or more than $1 million, but failed to file a tax return. Prior to the Inflation Reduction Act, the IRS non-filer program ran sporadically since 2016 due to severe budget and staff limitations that did not allow these cases to be pursued. With new Inflation Reduction Act funding, the IRS now has the capacity to do this core tax administration work. In the first six months of this initiative, nearly 21,000 of these wealthy taxpayers have filed, leading to $172 million in taxes being paid.
• The IRS in the fall of 2023 launched a new initiative using Inflation Reduction Act funding to pursue high-income, high-wealth individuals who have failed to pay recognized tax debt, with dozens of senior employees assigned to these cases. This work is concentrated on taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt. The IRS was previously unable to collect from these individuals due to a lack of resources. After successfully collecting $38 million from more than 175 high-income, high-wealth individuals last year, the IRS expanded this effort last fall to around 1,600 additional high-income, high-wealth individuals. Nearly 80% of these 1,600 millionaires with delinquent tax debt have now made a payment, leading to over $1.1 billion recovered. This is an additional $100 million just since July, when Treasury and IRS announced reaching the $1 billion milestone.

Improving taxpayer service through the Digital First Initiative

With Inflation Reduction Act resources, the IRS is significantly improving taxpayer service in person, over the phone, and online. The IRS is working to deliver the same modern online experience that taxpayers experience with their bank or financial institutions. Using Inflation Reduction Act resources, the IRS has created and enhanced popular and convenient online tools that save taxpayers time and money, while also reducing phone calls, paper processes, and other burdens on IRS employees. For example, in Filing Season 2024, IRS updated the “Where’s My Refund?” tool to provide more detailed refund status information in plain language, increasing use by nearly 30%. 

Thanks to Inflation Reduction Act resources, the IRS has launched more digital tools in the last two years than the previous 20 years, including: 

• More than two dozen new features and enhancements to Individual and Tax Professional Online Account;
• The launch of Business Tax Account;
• The release of 30 digital mobile-adaptive forms;
• The ability for taxpayers to receive their refund status via a conversational hotline;
• A mobile-friendly web tool for Where’s My Refund; and
• Direct File, a new tool that allows taxpayers to file for free, directly with the IRS. 

Through the Digital First Initiative, the IRS is pursuing a vision where taxpayers can do all their transactions with the IRS digitally if they prefer. At the core of that improved digital experience for taxpayers are enhancements to Individual Online Account. Thanks to funding from the Inflation Reduction Act, taxpayers can now: 

• View the status of refunds and certain audits.
• Access a complete overview of their account information, including detailed historical data.
• Access identity protection services, a lien payoff calculator, and the ability to complete the pending installment agreement process using smartphones or tablets—all critical as taxpayers prepare for Filing Season 2025.
• Retrieve tax related information from a single source, including digital copies of notices and letters—with more than 170 different types of notices and letters currently available in their Online Account. The agency’s goal is to make an additional 98 notices available for digital viewing, reaching a total of 268 notices digitally available by the end of 2024. 

Through the Simple Notice Initiative, the IRS is also redesigning up to 200 individual taxpayer notices to be shorter and clearer, reducing taxpayer frustration and the number of phone calls requiring live assistance, for Filing Season 2025. The IRS has completed 109 notices as of the end of July 2024.

Additionally, Tax Pro Online Account rolled out more self-service options for tax professionals, including easier navigation to secure two-way messaging where authorized tax professionals can digitally communicate with the IRS on behalf of their clients. The IRS is also continuing to expand the features within Business Tax Account, an online self-service tool for business taxpayers that now allows them to view and submit balance-due payments. The account is also now accessible in Spanish, with more translations planned. 

Modernizing 65-year-old foundational technology to improve taxpayer service and better secure taxpayer data 

• For 65 years, the IRS has relied on the same foundational technology for many of its critical systems, including the Individual Master File (IMF), which houses taxpayer data and feeds into key systems. The core technology, based on ALC and COBOL coding, has become a liability due to the diminishing pool of experts proficient in this legacy language. 
• The IRS has reached a critical milestone in modernizing a core technology component of the Individual Master File, by porting the outdated Assembly-based codebase to Java, a more modern, more sustainable language. Reflecting the agency’s focus on technology best practices, this new system, Integrated Tax Processing Engine (ITPE), is now running simultaneously with IMF to verify accuracy of its data processing. The system's data will be hosted in the Enterprise Data Platform, a modern, cloud-based system for managing data. 
• Making taxpayer history available in a modern data environment is a key step toward the IRS implementing real-time data processing with platforms that will enable transactions to be processed more quickly, transparently, and securely. These improvements are a critical enabler for the IRS’s Digital First Initiative. For example, it will improve taxpayer service by allowing taxpayers and customer service representatives to access real-time account information in the future just as any bank or financial institution does. These improvements will also empower IRS to implement tax code changes and emergency benefit programs more quickly, while reducing the costs of maintaining IRS systems. This project was delayed for years due to underfunding. 

Notice 2024-65 requests comments from the public regarding all aspects of sections 103 and 104 of the SECURE 2.0 Act of 2022. Section 103 of the SECURE 2.0 Act of 2022, in part, added section 6433 to the Internal Revenue Code, which provides for matching contributions (Saver’s Match contributions) paid by the Secretary of the Treasury to applicable retirement savings vehicles on behalf of eligible individuals who make qualified retirement savings contributions. Section 104 of the SECURE 2.0 Act of 2022 requires the Department of the Treasury to take steps to increase public awareness of the availability of Saver’s Match contributions and to provide a report to Congress on anticipated promotion efforts by the Department of the Treasury.

 

Notice 2024-65 will be in IRB:   2024-39, dated September 23, 2024.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued a notice requesting comments on Saver’s Match contributions to be paid by Treasury under the SECURE 2.0 Act of 2022. Notice 2024-65 requests comments on all aspects of Saver’s Match contributions and asks specific questions on a variety of Saver’s Match topics. 

Saver’s Match contributions represent a new approach to promoting retirement savings and an important opportunity to improve the long-term financial security for millions of low- to moderate-income Americans. Beginning in 2027, by making annual contributions of up to $2,000 to a 401(k)-type plan or an Individual Retirement Account (IRA), an individual can receive as much as an annual $1,000 Saver’s Match contribution from the Treasury. 

Unlike the existing Saver’s Credit, a nonrefundable tax credit that will be replaced by Saver’s Match contributions, the Saver’s Match contribution is paid by Treasury to a 401(k)-type plan or non-Roth IRA designated by an individual claiming the Saver’s Match contribution. The amount of an individual’s Saver’s Match contribution depends on the individual’s income or joint income level. For example, for a married individual filing jointly, the Saver’s Match contribution phases out completely at a joint income of $71,000, and, for a single filer, the Saver’s Match contribution phases out completely at an income of $35,500. 

The notice issued today requests specific comments on the following topics: 

• Eligibility for Saver’s Match contributions
• How Saver’s Match contributions would be claimed
• How the account receiving Saver’s Match contributions would be designated
• The process for completing Saver’s Match contributions
• Saver’s Match recovery taxes on specified early distributions
• Reporting and disclosure for Saver’s Match contributions
• Miscellaneous issues, including how Treasury and the IRS could ensure that individuals in underserved communities know how to participate and receive the full benefits of Saver’s Match contributions 

Treasury and the IRS are seeking input necessary for the program to reach its full potential to improve the retirement readiness of low- to moderate-income individuals. To enhance the implementation of this new tax benefit, it is important to receive the perspective of all interested parties.  Comments are requested from all stakeholders, including low- to moderate-income taxpayers, volunteer and for-profit tax preparers, organizations that serve and advise low- to moderate-income taxpayers, IRA custodians and trustees, and retirement plan administrators, recordkeepers, and plan sponsors. 

Interested parties should provide comments by Nov. 4, 2024, either at www.regulations.gov or by mailing the comments to Internal Revenue Service, CC:PA:01:PR (Notice 2024-65), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

WASHINGTON — The Internal Revenue Service today reminded taxpayers the deadline to submit their third quarter estimated tax payment is Sept. 16, 2024. 

The IRS also reminded taxpayers affected by disasters in 17 states, Puerto Rico and the Virgin Islands that they may automatically qualify for a delayed tax-payment deadline. Deadlines vary depending upon the disaster and locality. 

Taxes must be paid as income is earned or received during the year, either through withholding or estimated tax payments. Taxpayers such as gig workers, sole proprietors, retirees, partners and S corporation shareholders generally should make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return. 

A general rule of thumb is that taxpayers should make estimated tax payments if they expect: 

• To owe at least $1,000 in taxes for 2024 after subtracting their withholding and tax credits.
• Their withholding and tax credits to be less than the smaller of:
• • 90% of the tax to be shown on their 2024 tax return or
  • 100% of the tax shown on their complete 12-month 2023 tax return. 

Figuring estimated tax

To figure estimated tax, taxpayers calculate their expected adjusted gross income (AGI), taxable income, taxes, deductions and credits for the year. To figure 2024's estimated tax, it may be helpful to use income, deductions and credits from 2023 as a starting point. 

Taxpayers can use the tools on IRS.gov to check if they’re required to pay estimated taxes. The Tax Withholding Estimator, the IRS Interactive Tax Assistant and the worksheet in Form 1040-ES, Estimated Tax for Individuals, all offer clear step-by-step instructions. 

Payment options

The IRS encourages taxpayers earning income not normally subject to withholding to consider making estimated tax payments throughout the year to stay current and avoid a surprise at tax time. 

An electronic payment is the easiest, fastest and most secure way to make an estimated tax payment. The Payments page on IRS.gov provides complete tax payment information, how and when to pay, payment options and more. 

Taxpayers can securely log into their IRS Online Account or use IRS Direct Pay to submit a payment from their checking or savings account. Taxpayers can also pay using a debit card, credit card or digital wallet. 

Direct Pay and the pay by debit card, credit card or digital wallet options are available online at IRS.gov/payments and through the IRS2Go app. Taxpayers should note that the payment processor, not the IRS, charges a fee for debit and credit card payments 

Taxpayers can also use the Electronic Federal Tax Payment System (EFTPS) to make an estimated tax payment. Payment by check or money order made payable to the "United States Treasury" is also an option. 

Avoid a penalty for underpayment

Taxpayers who underpay their taxes may have to pay a penalty regardless of whether they paid through withholding or through estimated tax payments. Late and skipped estimated tax payments can incur penalties even if a refund is due when a tax return is filed. 

Taxpayers should use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if they owe a penalty. Taxpayers can also request a waiver of the penalty if they underpaid because of unusual circumstances and not willful neglect. 

Special rules apply to some groups of taxpayers such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. 

Disaster-area taxpayers get more time

Taxpayers who live, work or have a business in a disaster-area locality automatically qualify for a delayed tax-payment deadline. Deadlines vary depending upon the disaster and locality. Currently: 

• Taxpayers in parts of Arkansas, Iowa, Mississippi, New Mexico, Oklahoma, Texas and West Virginia have until Nov. 1, 2024, to make their estimated tax payment and   
• Taxpayers in all or parts of Florida, Georgia, Kentucky, Minnesota, Missouri, North Carolina, Puerto Rico, South Carolina, South Dakota, Texas, Vermont  and the Virgin Islands have until Feb. 3, 2025, to make their estimated tax payment. 

For details on all recent disaster relief, visit the Around the nation page on IRS.gov.  

1099-Ks for payments received in 2024

Taxpayers who were paid by payment apps and online marketplaces or received any amount by payment cards could receive a Form 1099-K, Payment Card and Third Party Network Transactions, for reporting payments received in 2024. This includes anyone with a “side hustle,” sole proprietors and anyone selling goods and services online. 

Taxpayers must report their income, unless it's excluded by law, regardless of whether they receive a Form 1099-K or any other third-party reporting document. The 1099-K reporting threshold for third party reporting doesn't change what counts as income or how tax is calculated. Find more information at Understanding Your Form 1099-K. 

The fourth and final estimated tax payment for tax year 2024 is due on Jan. 15, 2025. 

Revenue Procedure 2024-34 modifies section 7 of Rev. Proc. 2024-23, 2024-23 I.R.B. 1334, to modify the procedures under section 446 of the Internal Revenue Code and §1.446-1(e) of the Income Tax Regulations for obtaining automatic consent of the Commissioner to change methods of accounting for research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2021.  Specifically, this revenue procedure expands the waiver of the eligibility rules in section 5.01(1)(d) and (f) of Rev. Proc. 2015-13 to accounting method changes described in section 7.01 of Rev. Proc. 2024-23 that are made in any taxable year beginning in 2022 or 2023. This revenue procedure also permits a taxpayer to make changes under section 7.01 of Rev. Proc. 2024-23 regardless of whether a change under that section has been filed for any other taxable year beginning in 2022 or 2023. Finally, for any change under section 7.01 of Rev. Proc. 2024-23 made in a taxable year beginning in 2022 or 2023 (other than the first taxable year beginning after December 31, 2021), this revenue procedure limits audit protection for research or experimental expenditures paid or incurred in the taxpayer’s first taxable year beginning after December 31, 2021 if the taxpayer failed to make a change for such expenditures for such taxable year.

WILL BE IN IRB:    2024-38     DATED:  September 16, 2024

FS-2024-28, August 2024

Crowdfunding distributions may be includible in the gross income of the person receiving them depending on the facts and circumstances. The crowdfunding website or its payment processor may be required to report distributions of money raised if the amount distributed meets certain reporting thresholds.

Here are some important basics to keep in mind.

Crowdfunding is a method of raising money through websites by soliciting contributions from a large number of people. The contributions may be solicited to fund businesses, for charitable donations or for gifts. In some cases, the money raised through crowdfunding is solicited by crowdfunding organizers on behalf of other people or businesses. In other cases, people establish crowdfunding campaigns to raise money for themselves or their businesses.

Receipt of a Form 1099-K for distributions of money raised through crowdfunding

The crowdfunding website or its payment processor may be required to report distributions of money raised, if the amount distributed meets certain reporting thresholds, by filing Form 1099-K, Payment Card and Third Party Network Transactions, with the IRS.

If required to file a Form 1099-K with the IRS, the crowdfunding website or its payment processor must also furnish a copy of that form to the person to whom the distributions are made. The American Rescue Plan Act (ARPA) clarifies that the crowdfunding website or its payment processor is not required to file Form 1099-K with the IRS or furnish it to the person to whom the distributions are made if the payments are not made in exchange for goods or services.

The reporting thresholds for a crowdfunding website or payment processor to file and furnish Form 1099-K are:
• Calendar years 2023 and prior – Form 1099-K is required if the total of all payments distributed to a person exceeded $20,000 and resulted from more than 200 transactions. See Notice 2023-10 and Notice 2023-74.
• Calendar year 2024 – The IRS announced a plan for the threshold to be reduced to $5,000 as a phase-in for the lower threshold provided under the ARPA. See (IR-2023-221).

Note: The ARPA lowered the reporting threshold for third party settlement organizations (TPSOs) so that TPSOs are only required to report on Forms 1099-K if the total of all payments distributed to a payee in a calendar year exceeds $600, regardless of the number of transactions. However, implementation of this lower threshold has been delayed.

Crowdfunding distributions may be made to the crowdfunding organizer, or directly to individuals or businesses for whom the organizer solicited funds. A Form 1099-K must be filed with the IRS and furnished to the person or entity that received the payments if the reporting threshold is met for the year in which the distributions were made.

A person receiving a Form 1099-K for distributions of money raised through crowdfunding may not recognize the filer's name on the form. Sometimes the payment processor used by the crowdfunding website, rather than the crowdfunding website itself, will furnish the Form 1099-K and will be listed as the filer on the form. If the recipient of a Form 1099-K does not recognize the filer's name or the amounts included on the Form 1099-K, the recipient can use the filer's telephone number listed on the form to contact a person knowledgeable about the payments reported.

Box 1 on the Form 1099-K will show the gross amount of the distributions made to a person during the calendar year. But the furnishing of a Form 1099-K doesn't automatically mean the amount reported on the form is taxable to the person receiving the form.

If non-taxable distributions are reported on Form 1099-K, the recipient should report the transaction on Form 1040, Schedule 1, as follows:

• Part I – Line 8z, Other Income – “Form 1099-K Received for Non-Taxable Crowdfunding Distributions” to show the gross proceeds from the distributions reported on Form 1099-K.
• Part II – Line 24z, Other Adjustments – “Form 1099-K Received for Non-Taxable Crowdfunding Distributions” to show the non-taxable amount of the distributions reported on Form 1099-K.

The net effect of these two adjustments on income is $0.

Alternatively, if non-taxable distributions are reported on Form 1099-K and the recipient does not report the transaction on their tax return, the IRS may contact the recipient for more information. The recipient will have the opportunity to explain why the crowdfunding distributions were not reported on their tax return. As discussed below, the income tax consequences depend on all the facts and circumstances.

Tax treatment of money raised through crowdfunding

Under federal tax law, gross income includes all income from whatever source derived unless it is specifically excluded from gross income by law. Whether crowdfunding distributions are includible in the gross income of the person receiving them depends on all the facts and circumstances of the distribution.

In most cases, property received as a gift is not includible in the gross income of the person receiving the gift.

If crowdfunding contributions are made as a result of the contributors' detached and disinterested generosity, and without the contributors receiving or expecting to receive anything in return, the amounts may be gifts and therefore may not be includible in the gross income of those for whom the campaign was organized. Contributions to crowdfunding campaigns are not necessarily a result of detached and disinterested generosity, and therefore may not be gifts. Additionally, contributions to crowdfunding campaigns by an employer to, or for the benefit of, an employee are generally includible in the employee's gross income.

If a crowdfunding organizer solicits contributions on behalf of others, distributions of the money raised to the organizer may not be includible in the organizer's gross income if the organizer further distributes the money raised to those for whom the crowdfunding campaign was organized.

More information is available to help taxpayers determine what their tax obligations are in connection with their Form 1099-K at Understanding Your Form 1099-K. Taxpayers may want to consult a trusted tax professional for information and advice regarding how to treat amounts received from crowdfunding campaigns.

Recordkeeping for money raised through crowdfunding

Crowdfunding organizers and any person receiving amounts from crowdfunding should keep complete and accurate records of all facts and circumstances surrounding the fundraising and disposition of funds for at least three years.

More Information
• About Form 1099-K, Payment Card and Third Party Network Transactions
• Understanding your Form 1099-K
• Form 1099-K FAQs
• Gig economy tax center