WASHINGTON — The Internal Revenue Service today highlighted a number of options available to help taxpayers who missed the April deadline to file their 2023 federal income tax return.  

To help struggling taxpayers, the IRS has important payment programs that can help those who have trouble paying the amount owed and special first-time penalty relief for those who qualify. 

The IRS reminded people that paying what they can as soon as possible will limit penalty and interest charges, which can grow quickly under the tax laws. The interest rate for an individual's unpaid taxes is currently 8%, compounded daily. The late-filing penalty is generally 5% per month and the late-payment penalty is normally 0.5% per month, both of which max out at 25%. 

If a return is filed more than 60 days after the due date, the minimum penalty is either $485 or 100% of the unpaid tax, whichever is less. The failure to pay penalty rate is generally 0.5% of unpaid tax owed for each month or part of a month until the tax is fully paid or until 25% is reached. The rate is subject to change. For more information, see Penalties on IRS.gov.  

However, taxpayers can limit late-payment penalties and interest charges by paying their tax electronically. The fastest and easiest way to do that is with IRS Direct Pay, a free service available only on IRS.gov. Several other electronic payment options are also available. Visit Make a Payment for details. 

File and pay what they can to reduce penalties and interest

Taxpayers should file their tax return and pay any taxes they owe as soon as possible to reduce penalties and interest. An extension to file is not an extension to pay. An extension to file provides an additional six months with a new filing deadline of Oct. 15. Penalties and interest apply to taxes owed after April 15 and interest is charged on tax and penalties until the balance is paid in full. 

Some may qualify for penalty relief

Anyone who receives a penalty notice from the IRS should read it carefully and follow the instructions for requesting relief. Visit Penalty Relieffor information on the types of penalties, requesting penalty relief and appealing a penalty decision. 

Taxpayers who have filed and paid on time and have not been assessed any penalties for the past three years often qualify to have the penalty abated. See the First-Time Penalty Abatement page on IRS.gov. A taxpayer who does not qualify for this relief may still qualify for penalty relief if their failure to file or pay on time was due to reasonable cause and not willful neglect. 

In addition to penalties, interest will be charged on any tax not paid by the April 15 due date and any assessed penalties. Interest stops accruing as soon as the balance due is paid in full. The law does not allow for interest abatement based on reasonable cause or first-time relief. 

Having trouble paying? IRS has options to help

By filing by the deadline, taxpayers avoid failure to file penalties – even if they’re unable to pay. For those who owe federal taxes, the IRS has a number of payment options available. 

Taxpayers that are unable to pay in full by the tax deadline should still file their tax return, pay what they can and explore a variety of payment options available for the remaining balance. The IRS offers several options to helpthem meet their tax obligation, including applying for an online payment plan. 

Taxpayers can receive an immediate response of payment plan acceptance or denial without calling or writing to the IRS. Online payment plan options include: 

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full. 

• Long-term payment plan – The total balance owed is less than $50,000 in combined tax, penalties and interest. Pay in monthly payments for up to 72 months. Payments may be set up using direct debit (automatic bank withdraw) which eliminates the need to send in a payment each month, saving postage costs and reducing the chance of default. For balances between $25,000 and $50,000, direct debit is required. 

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay penalty is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on the IRS’ Additional information on payment plans webpage. 

Some taxpayers get automatic extensions

Some taxpayers automatically qualify for extra time to file and pay taxes due without penalties and interest, including: 

• Taxpayers in certain disaster areas. There’s no need for these taxpayers to submit an extension; extra time is granted automatically due to the disaster. Information on the most recent tax relief for disaster situations is available on IRS.gov.
• U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico. 

• Members of the military on duty outside the United States and Puerto Rico, and those serving in combat zones. 

Adjust withholding to prevent tax ‘surprises’

Taxpayers should check their withholding every year to protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. 

The Tax Withholding Estimator helps individuals bring the tax they pay closer to what is owed. Wage earners can assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate to their employer, not the IRS. 

WASHINGTON — The Internal Revenue Service today reminded taxpayers whose income is not subject to withholding that the second quarter estimated tax payment deadline is June 17. 

Taxpayers making estimated tax payments should consider this deadline to avoid falling behind on their taxes and facing possible underpayment penalties. And the IRS reminds taxpayers that third quarter payments are due Sept. 16, and the final estimated tax payment for tax year 2024 will be due on Jan. 15, 2025.

For eligible taxpayers, disaster tax relief includes the postponement of filing and payment deadlines. For current tax relief provisions, search Tax relief in disaster situations and visit the IRS news from around the nation page on IRS.gov for the current list of eligible localities. 

Estimated tax payments are usually made by taxpayers who are self-employed, retirees, investors, businesses, corporations and other individuals who do not have taxes withheld. 

Pay-as-you-go

Taxes are pay-as-you-go, to be paid as income is earned, during the year. There are two ways for taxpayers to do this: 

1. Withholding from pay, pension or certain government payments, such as Social Security.  
2. Making quarterly estimated tax payments throughout the year. 

For taxpayers where not enough taxes are being withheld from their salary, pension or other income, estimated tax payments may have to be made. Taxpayers who are employed can avoid having to make estimated tax payments by asking their employer to withhold a larger amount from their earnings by submitting a new Form W-4, Employee's Withholding Certificate. 

Who needs to pay estimated tax?

Taxpayers including sole proprietors, partners and S corporation shareholders must make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return. 

The IRS Interactive Tax Assistant is an online tool that taxpayers can use to see if they are required to make estimated tax payments. Taxpayers can also see the worksheet in Form 1040-ES, Estimated Tax for Individuals, for more information about who must pay estimated tax. 

Corporations that expect to owe tax of $500 or more, generally must make estimated tax payments. For more information, corporations can see Publication 542, Corporations. 

For additional details, see Publication 505, Tax Withholding and Estimated Tax. It includes worksheets and examples that can be especially useful for taxpayers who have dividend or capital gain income, owe alternative minimum or self-employment tax or have other situations. 

Keep records of income reported on Form 1099-K

Individuals working a part-time job or side hustle must report their income. Earnings may be reported to the IRS on a Form W-2, or type of Form 1099. Recipients of Form 1099-K, Payment Card and Third Party Network Transactions must use it with other tax records to help report income. 

Taxpayers earning income not subject to withholding are encouraged to consider making quarterly estimated tax payments during the year to stay current and avoid an unexpected tax bill. 

Remember, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K. 

Paying estimated tax

Electronic payment is the most secure, fastest and easiest way for taxpayers to make an estimated tax payment. Taxpayers can use their Online Account or IRS Direct Pay to make a payment using their checking or savings account. A credit/debit card or digital wallet can also be used. When using a credit/debit card, taxpayers should be aware that payment processors, not the IRS, charge a fee to do so. Payments can be made at IRS.gov/payments and through the IRS2Go app. Both Direct Pay and credit/debit card and digital wallet options are available. 

The Electronic Federal Tax Payment System (EFTPS) can also be used to make an estimated payment. Payment by check or money order made payable to the “United States Treasury” is accepted. For instructions and help figuring out their estimated tax, taxpayers should refer to Form 1040-ES, Estimated Tax for Individuals. 

Electronic funds transfer must be used by corporations to make all federal tax deposits, for example deposits of employment, excise and corporate income tax. Installment payments of estimated tax must also be made via this method. Usually, an electronic funds transfer is made via the EFTPS. 

Avoiding an underpayment penalty

To avoid an underpayment penalty at tax time, taxpayers should pay most of their taxes during the year, owing less than a $1000 when filing their return. Generally, for 2024 that means paying at least 90% of the tax owed on their 2024 return, or at a minimum 100% of the tax shown on their year 2023 tax return. 

Exceptions to the Underpayment of Estimated Tax Penalty and special rules apply for some groups of taxpayers, such as farmers, fishermen, certain higher income taxpayers, casualty and/or disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year. 

Tax Withholding Estimator

The use of the Tax Withholding Estimator by taxpayers will help ensure that the right amount of tax is being withheld from their paychecks or other income that is subject to withholding. Estimates provided are as accurate as the information entered by taxpayers. 

This tool can help taxpayers avoid having too little tax withheld and facing an unexpected tax bill at tax time next year. 

24/7 assistance at IRS.gov

For assistance, tax help is available 24/7 on IRS.gov. Taxpayers can use a variety of tools to find answers to common tax questions, including the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions.

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of West Virginia affected by severe storms, straight-line winds, tornadoes, flooding, landslides and mudslides that began on April 2, 2024. 

These taxpayers now have until Nov. 1, 2024, to file various federal individual and business tax returns and make payments. 

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Boone, Brooke, Cabell, Fayette, Hancock, Kanawha, Lincoln, Marshall, Nicholas, Ohio, Preston, Putnam, Tyler, Wayne and Wetzel counties qualify for tax relief. 

Among other things, this means that individuals and many businesses will now have until Nov. 1, 2024, to file their 2023 returns and pay any tax due. This includes taxpayers in Boone and Kanawha counties, who, due to a prior declaration, already had until June 17, 2024, to file and pay. 

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

Filing and payment relief 

The tax relief postpones various tax filing and payment deadlines that occurred from April 2, 2024, through Nov. 1, 2024 (postponement period). As a result, affected individuals and businesses will have until Nov. 1, 2024, to file returns and pay any taxes that were originally due during this period. 

This means, for example, that the Nov. 1, 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. 

• Quarterly estimated income tax payments normally due on April 15, June 17 and Sept. 16, 2024. 

• Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 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. 

In addition, penalties for failing to make payroll and excise tax deposits due on or after April 2, 2024, and before April 17, 2024, will be abated as long as the deposits were made by April 17, 2024. 

The Disaster assistance and emergency relief for individuals and businesses 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. 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 (2023). 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 – 4783-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. 

Reminder about tax return preparation options

• Eligible individuals or families can get free help preparing their tax return at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find the closest free tax help site, use the VITA Locator Tool or call 800-906-9887. Note that normally, VITA sites cannot help claim disaster losses.
• To find an AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669.
• Any individual or family whose adjusted gross income (AGI) was $79,000 or less in 2023 can use IRS Free File’s Guided Tax Software at no cost. There are products in English and Spanish.

• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.
• 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.

IRS: Kentucky storm victims qualify for tax relief; various deadlines postponed to Nov. 1 

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of Kentucky affected by severe storms, straight-line winds, tornadoes, landslides and mudslides that began on April 2, 2024. 

These taxpayers now have until Nov. 1, 2024, to file various federal individual and business tax returns and make payments. 

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Boyd, Carter, Fayette, Greenup, Henry, Jefferson, Jessamine, Mason, Oldham, Union and Whitley counties qualify for tax relief. 

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

Filing and payment relief 

The tax relief postpones various tax filing and payment deadlines that occurred from April 2, 2024, through Nov. 1, 2024 (postponement period). As a result, affected individuals and businesses will have until Nov. 1, 2024, to file returns and pay any taxes that were originally due during this period. 

This means, for example, that the Nov. 1, 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. 

• Quarterly estimated income tax payments normally due on April 15, June 17 and Sept. 16, 2024. 

• Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 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. 

In addition, penalties for failing to make payroll and excise tax deposits due on or after April 2, 2024, and before April 17, 2024, will be abated as long as the deposits were made by April 17, 2024. 

The Disaster assistance and emergency relief for individuals and businesses 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. 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 (2023). 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 – 4782-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. 

Reminder about tax return preparation options

• Eligible individuals or families can get free help preparing their tax return at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find the closest free tax help site, use the VITA Locator Tool or call 800-906-9887. Note that normally, VITA sites cannot help claim disaster losses.
• To find an AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669.
• Any individual or family whose adjusted gross income (AGI) was $79,000 or less in 2023 can use IRS Free File’s Guided Tax Software at no cost. There are products in English and Spanish.

• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.
• 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.

WASHINGTON – The Department of the Treasury and Internal Revenue Service issued Revenue Procedure 2024-26 today for the submission of information by qualified manufacturers of new clean vehicles and dealers and sellers of new clean vehicles and previously-owned clean vehicles. 

Today’s guidance provides additional procedures for qualified manufacturers to submit attestations, certifications and documentation demonstrating the qualified manufacturer’s compliance with certain requirements regarding new clean vehicles placed in service after Dec. 31, 2024. 

The guidance updates procedures for qualified manufacturers to submit information regarding new clean vehicles for upfront review by the IRS, with analytical assistance from the Department of Energy, to ensure the vehicles satisfy relevant requirements for the calendar year and are eligible for the new clean vehicle credit. 

Finally, this revenue procedure provides rules regarding seller report updates and rescissions and provides clarification for qualified manufacturers for the transition rule for impracticable-to-trace battery materials. 

More information can be found on the Inflation Reduction Act of 2022 page on IRS.gov.

Revenue Procedure 2024-26 updates existing procedures and provides additional procedures for qualified manufacturers to submit information regarding new clean vehicles to ensure the vehicles satisfy the requirements of § 30D(d) and (e) of the Internal Revenue Code (Code) for the applicable calendar year and therefore are eligible for the clean vehicle credit under § 30D.  This revenue procedure also updates existing procedures regarding seller report updates and rescissions.  Finally, this revenue procedure modifies section 7.03(4) of Rev. Proc. 2023-33, 2023-43 I.R.B. 1135, and modifies section 5.04 of Rev. Proc. 2023-38, 2023-51 I.R.B. 1544.  

Revenue Procedure 2024-26 will be in IRB:  2024-27, dated July 8, 2024

Inside This Issue

1. IRS announces 2024 Nationwide Tax Forum seminars lineup; register today
2. Key milestone reached by Document Upload Tool with 1 million submissions received
3. New guidance on payments to victims impacted by Ohio train disaster
4. Technical Guidance

1.  IRS announces 2024 Nationwide Tax Forum seminars lineup; register today

The IRS has announced the seminar lineup for the 2024 Nationwide Tax Forum, which includes 45 continuing education sessions, including six in Spanish. Attendees can earn up to 19 credits by attending the forum. The agenda includes a keynote address and a special plenary session that will cover the future of tax administration, the taxpayer experience and IRS transformation.

In addition to continuing education, Tax Forum attendees also get:

Special events, including sessions on practice management, avoiding scams and schemes, beneficial ownership information reporting and a meeting with the National Taxpayer Advocate. The Case Resolution Program, where you can receive one-on-one help from IRS representatives on one of your toughest, unresolved case. The Expo Hall, where you’ll have opportunities to engage with industry experts, IRS representatives and exhibitors displaying a wide selection of products and services that may help enhance your business operations.

The IRS Nationwide Tax Forum kicks off in less than five weeks. Register today and reserve your spot in Chicago, July 9-11; Orlando, July 30-Aug. 1; Baltimore, Aug. 13-15; Dallas, Aug. 20-22; or San Diego, Sept. 10-12.

Back to top

2.  Key milestone reached by Document Upload Tool with 1 million submissions received

The IRS announced that the Document Upload Tool (DUT) has accepted the one millionth taxpayer submission, marking another significant milestone in IRS transformation efforts. More than 265,000 taxpayers have used the tool during the first six months of this fiscal year, and the number continues to grow.

“The Document Upload Tool is a key part of our ambitious initiative to transform the IRS into a virtually paperless agency, and we continue to see increased use of this by taxpayers,” said IRS Commissioner Danny Werfel. “This tool saves time for taxpayers and helps IRS employees process responses faster and more efficiently. A growing number of taxpayers are using their smart phones or computers to scan and upload their responses to IRS correspondence, rather than the more time-consuming option of writing a letter or mailing in documents.”

For more information about the Document Upload Tool, visit IRS.gov/dut.

Back to top

3.  New guidance on payments to victims impacted by Ohio train disaster

The IRS issued guidance concerning case payments received by individuals affected by last year’s train derailment in East Palestine, Ohio. Notice 2024-46 explains that the Feb. 3, 2023, derailment qualifies as “an event of a catastrophic nature.” Therefore, various payments made to affected individuals by the common carrier that operated the derailed train are “qualified disaster relief payments,” which, by law, are excluded from gross income. The exclusion from taxation is available to individual taxpayers in cases where the costs reimbursed by insurance or other sources are not offset by the qualified disaster relief payments provided by the common carrier. Additional information may be found on the East Palestine train derailment frequently asked questions webpage. 

Back to top

4.  Technical Guidance

Notice 2024-48 publishes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category as described in sections 3.03 and 3.04 of Notice 2023-29 for purposes of qualifying for energy community bonus credit amounts or rates under sections 45, 45Y, 48, and 48E of the Internal Revenue Code.

Notice 2024-48 publishes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category as described in sections 3.03 and 3.04 of Notice 2023-29 for purposes of qualifying for energy community bonus credit amounts or rates under sections 45, 45Y, 48, and 48E of the Internal Revenue Code. These lists are provided in Appendix 1 and Appendix 2 to this notice. Appendix 1 to this notice pertains to the Statistical Area Category, and Appendix 2 to this notice pertains to the Coal Closure Category.

Notice 2024-48 will be in IRB: 2024-26, dated 6/24/2024.

WASHINGTON — The Department of the Treasury and Internal Revenue Service today issued Notice 2024-48 that publishes information taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category in Notice 2023-29 for purposes of qualifying for the Energy Community Bonus Credit.

These lists are provided in Appendix 1 and Appendix 2 of this notice. Appendix 1 pertains to the Statistical Area Category and Appendix 2 pertains to the Coal Closure Category.

In addition to the guidance issued today, the IRS also updated the frequently asked questions for energy communities.

More information can be found on the Inflation Reduction Act of 2022 page on IRS.gov. 

Attention: Software Developers, Return Transmitters and Authorized IRS e-File Providers/EROs

Tax Year 2024/Processing Year 2025, Business Rules and Schema

·       Form 1040 Series 2024v1.0

·       Form 4868 2024v1.0

·       Form 2350 2024v1.0

·       Form 9465 CUv27.0

Software Developers and State organizations may download Modernized e-File (MeF) schemas and business rules from their e-Services mailbox. To access these files, you must have:

• An active e-Services account
• An e-File application with the Software Developer or State provider option with the associated tax type of 1040, 2350, 4868, 56 or 9465

Please visit the Modernized e-File (MeF) Schemas and Business Rules page on IRS.gov for more information about MeF Schemas and Business Rules.

You may have several messages in your account. Please open all of them to find the set you would like to download. After 60 days the messages are purged. If you have the appropriate role and do not have these files available for download within 48 hours, please contact MeF Mailbox with the Company Name, ETIN and schema package(s) with tax year needed