WASHINGTON — The Internal Revenue Service today issued Notice 2024-60 to provide initial guidance on the credit for the sequestration of carbon oxide. This credit was amended significantly by the Inflation Reduction Act of 2022 (IRA). 

The notice provided today describes information that must be included in a written report known as the lifecycle analysis (LCA) report and provides the procedures a taxpayer must follow to submit the report along with required supporting information to the IRS and the Department of Energy for review. 

Before any credit is determined, the IRS must approve the lifecycle analysis of greenhouse gas emissions documented in the LCA report with respect to carbon capture property placed in service on or after Feb. 18, 2018.  

Accordingly, the IRS must approve the taxpayer’s LCA before the taxpayer may claim the utilization of carbon oxide credit. 

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

Week 3 of “Protect Your Clients; Protect Yourself” series focuses on security warning signs

WASHINGTON — In the third part of a special series, the Internal Revenue Service and the Security Summit partners today urged tax professionals to learn the signs of data theft so they can respond quickly to protect their business and their clients.

The IRS and the Security Summit partners continue to see a relentless string of attempts by identity thieves to target tax professionals in hopes of gaining valuable client tax information. With stronger fraud defenses put in place by the IRS and Security Summit partners, identity thieves have shifted their attention to tax pros to get more detailed information to help prepare bogus tax returns.

"We continue to see instances where tax professionals have had their systems compromised, and they didn’t realize it for week or months,” IRS Commissioner Danny Werfel said. “Identity thieves are creative, and they can find ways of quietly penetrating systems. There are important warning signs tax pros should watch out for that can help alert them more quickly to a security issue, and speed is critical to protect clients and their businesses from a security incident.” 

The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit – reminded tax professionals that they should contact the IRS immediately when there's an identity theft issue while also contacting cybersecurity experts and insurance companies to assist them with determining the cause and extent of the loss.

This is the third week of an eight-part "Protect Your Clients; Protect Yourself" summer series, part of an annual education effort by the Security Summit, a group that includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud.

These security tips will be a key focus of the Nationwide Tax Forum, being held this summer in five cities throughout the U.S. In addition to the series of eight news releases, the tax professional security component will be featured at the forums, which are three-day continuing education events. The next forum begins next week in Orlando, Florida, and is already sold out, followed by the week of August 13 in Baltimore, August 20 in Dallas and September 10 in San Diego. The IRS reminds tax pros that registration deadlines are quickly approaching for the Baltimore and Dallas forums, as San Diego has also sold out.

Each year at the tax forums, the IRS hears from tax professionals attending the sessions who realize that they’re victims of a data theft or a security breach, but they hadn’t realized the warnings signs. Here are some things that can help.

Tax pros: Know the warning signs from clients, their systems

Tax pros should be on the lookout for these critical warning signs from their clients:

• Clients receive notice that an IRS Online Account was created without their consent or that:
• • Someone accessed their IRS Online Account without their knowledge.
  • The IRS disabled their Online Account, either their individual or business Online Account.
• Tax pro clients receive a tax transcript they didn't request. 
• Balance due or other notices from the IRS are received that are not correct based on the tax return filed. 
• Clients reach out to the tax pro about calls or emails the tax pro didn't make. 
• Clients receive refunds without filing a tax return.

Tax professionals should also watch for these red flags when their business experiences these situations:

• Slow or unexpected computer or network responsiveness such as:
• • Software is slow or actions take longer to process than usual.
  • Computer cursor moves or changes numbers without touching the mouse or keyboard.
  • Unexpectedly being locked out of a network or computer. 
• Client tax returns are being rejected because their Social Security number was already used on another return. 
• IRS authentication letters (5071C, 6331C, 4883C, 5747C) are being received even though a tax return hasn't been filed. 
• Getting more e-file receipt acknowledgements than the tax pro actually filed.
• The IRS disabled the tax professional’s online account.
• Transcripts are being delivered to the tax pro’s Secure Object Repository (SOR) that they did not order.
• Notification from the IRS that the tax professional’s Centralized Authorized File (CAF) number has been compromised. If they suffer a data compromise, they should take proactive steps to protect their CAF number and consider requesting a new one to protect themself and their clients.
• Notification from the IRS regarding a client that they do not represent.

While these are only a few examples, tax pros should ensure they have the highest security possible and be ready to react quickly to protect themselves and their clients. To help tax pros, the Summit partners created the written information security plan or WISP. The newly updated 29-page, easy-to-understand document was developed by and for tax and industry professionals to help keep client and business information safe and secure.

Tax pros should report data theft immediately

If a tax pro or their firm are the victim of data theft, they should:

• Tax professionals should be proactive with clients who could have been impacted and suggest appropriate actions, such as obtaining an Identity Protection PIN or completing a Form 14039, Identity Theft Affidavit, if applicable.

Find more information at Data theft information for tax professionals.

Additional resources

• Publication 5293, Data Security Resource Guide for Tax Professionals, provides an overview and resources about how to avoid data theft.
• Tax professionals can also get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data, and the IRS' Identity theft information page for tax pros.
• Small Business Information Security: The Fundamentals, by the National Institute of Standards and Technology.

Tax professionals should stay connected to the IRS through subscriptions to e-News for tax professionals and its social media sites.

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in 67 Texas counties affected by Hurricane Beryl that began on July 5, 2024. 

These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. 

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in Anderson, Angelina, Aransas, Austin, Bowie, Brazoria, Brazos, Burleson Calhoun, Cameron, Camp, Cass, Chambers, Cherokee, Colorado, Dewitt, Fayette, Fort Bend, Freestone, Galveston, Goliad, Gregg, Grimes, Hardin, Harris, Harrison, Hidalgo, Houston, Jackson, Jasper, Jefferson, Kenedy, Kleberg, Lavaca, Lee, Leon, Liberty, Madison, Marion, Matagorda, Milam, Montgomery, Morris, Nacogdoches, Newton, Nueces, Orange, Panola,  Polk, Refugio, Robertson, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, Shelby, Trinity, Tyler, Upshur, Victoria, Walker, Waller, Washington, Webb, Wharton and Willacy 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 July 5, 2024, through Feb. 3, 2025 (postponement period). As a result, affected individuals and businesses will have until Feb. 3, 2025, to file returns and pay any taxes that were originally due during this period. 

This means, for example, that the Feb. 3, 2025, deadline will now apply to: 

• Any individual, business or tax-exempt organization that has a valid extension to file their 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. 
• Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
• Quarterly payroll and excise tax returns normally due on July 31 and Oct. 31, 2024, and Jan. 31, 2025. 

In addition, penalties for failing to make payroll and excise tax deposits due on or after July 5, 2024, and before July 22, 2024, will be abated, as long as the deposits are made by July 22, 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 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 (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 – 4798-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 the Internal Revenue Service today issued final regulations updating the required minimum distribution (RMD) rules.

The final regulations reflect changes made by the SECURE Act and the SECURE 2.0 Act impacting retirement plan participants, IRA owners and their beneficiaries. At the same time, Treasury and IRS issued proposed regulations, addressing additional RMD issues under the SECURE 2.0 Act.

While certain changes were made in response to comments received on the proposed regulations issued in 2022, the final regulations generally follow those proposed regulations.

Specifically, Treasury and IRS reviewed comments suggesting that a beneficiary of an individual who has started required annual distributions should not be required to continue those annual distributions if the remaining account balance is fully distributed within 10 years of the individual’s death as required by the SECURE Act. However, Treasury and IRS determined that the final regulations should retain the provision in the proposed regulations requiring such a beneficiary to continue receiving annual payments.

The new proposed regulations include provisions for which Treasury and IRS are soliciting public comments, including provisions addressing other changes relating to RMDs made by the SECURE 2.0 Act. For details on how to submit comments, see the proposed regulations.

WASHINGTON — The Internal Revenue Service today announced the agency will enhance the identity authentication process that financial institutions can use to register under the Foreign Account Tax Compliance Act (FATCA). 

Taxpayers as of July 14 are required to sign in or register with either of the IRS’ credential service providers, Login.gov or ID.me, to access the FATCA registration system. FATCA requires most U.S. taxpayers holding financial assets outside the U.S. and certain foreign financial institutions to report assets and financial accounts to the IRS.

Taxpayers who already have a Login.gov or an ID.me profile will be able to sign in to the FATCA Registration System as long as the email matches that of the responsible officer or point of contact on the FATCA registration.

Taxpayers that don’t already have a Login.gov or ID.me profile will need to create one to access the system. The new authentication requirement complies with National Institute of Standards and Technology digital identity guidelines.

To create a new profile with either Login.gov or ID.me, the taxpayer will need to verify an email address, create a password and set up multi-factor authentication to secure their FATCA account. Both ID.me and Login.gov have help desks to assist taxpayers who have difficulty using the systems.

For questions and assistance regarding Login.gov, please visit the Login.gov help center. For questions and assistance regarding ID.me, please visit Verifying for the Internal Revenue Service – ID.me Help Site.

Revenue Ruling 2024-15 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 § 1274.

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruling 2024-15 will be in IRB: 2024-32, dated August 5, 2024.

Week 2 of “Protect Your Clients; Protect Yourself” series focuses on evolving threats 

WASHINGTON — In the second installment of a special series, the Internal Revenue Service and Security Summit partners warned tax professionals to be aware of evolving phishing scams and cloud-based schemes designed to steal sensitive taxpayer information.

The IRS and Security Summit partners – representing state tax agencies and the nation's tax industry – continue to see a steady stream of e-mail and related attacks aimed at the nation's tax professional community. These are designed to steal sensitive tax and financial information from clients.

The variants of these email attacks routinely number in the hundreds and can target tax professionals whether it’s tax season or not.

“We continue to see a barrage of email and related attacks designed to trick tax professionals and gain access to their sensitive information,” said IRS Commissioner Danny Werfel. “These attempts can be elaborate, multi-layered efforts that look convincing and can easily fool people. Tax professionals need to be wary and educate their employees to use extra caution to protect their clients and their businesses.”

This is the second release in an eight-part “Protect Your Clients; Protect Yourself” summer series, part of an annual education effort by the Security Summit, a group that includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud.

These security tips will be a key focus of the Nationwide Tax Forum, which will be in five cities this summer throughout the U.S. In addition to the series of eight news releases, the tax professional security component will be featured at the forums, which are three-day continuing education events. The remaining forums begin July 30 in Orlando, August 13 in Baltimore, August 20 in Dallas and September 10 in San Diego. 

The IRS reminds tax pros that registration deadlines are quickly approaching for several of the forums, and Orlando is already sold out.  

Phishing, spear phishing, clone phishing and whaling  

One of the most common threats facing tax pros are phishing and related scams. These are designed to trick the recipient into disclosing personal information such as passwords, bank account numbers, credit card numbers or Social Security numbers.

Tax professionals and taxpayers should be aware of different phishing terms and what the email scams might look like:

• Phishing/Smishing – Phishing emails or SMS/texts (known as “smishing”) attempt to trick the recipient into clicking a suspicious link, filling out information or downloading a malware file. Often phishing attempts are sent to multiple email addresses at a business or agency increasing the chance someone will fall for the trick.

• Spear phishing – A specific type of phishing scam that bypasses emailing large groups at an organization, but instead identifies potential victims and delivers a more realistic email known as a “lure.” These types of scams can be trickier to identify since they don't occur in large numbers. They single out individuals, can be specialized and make the email seem more legitimate. Scammers can pose as a potential client for a tax professional, luring the practitioner into sharing sensitive information.
• Clone phishing – A newer type of phishing scam that clones a real email message and resends it to the original recipient pretending to be the original sender. The new message will have either an attachment that contains malware or link that tries to steal information from the tax professional or recipient.

• Whaling – Whaling attacks are very similar to spear phishing, except these attacks are generally targeted to leaders or other executives with access to secure large amounts of information at an organization or business. Whaling attacks can also target people in payroll offices, human resource personnel and financial offices.

Security Summit partners continue to see instances in which tax professionals have been particularly vulnerable to emails posing as potential clients. In the “new client” scam, the criminals use this technique to trick practitioners into opening email links or attachments that infect computer systems with the potential to steal client information. Similar schemes are seen with whaling situations where scammers try to obtain a large amount of information with legitimate-looking email requests.

Warning signs of a scam  

Regardless of the type of phishing attempt, tax pros can protect themselves and their organization by being aware of these scams and looking for warning signs like these:

• An unexpected email or text claiming to come from a known or trusted source such as a colleague, bank, credit card company, cloud storage provider, tax software provider or even the IRS and other government agencies.

• Receiving a duplicate email from what appears to be a known trusted source that contains a new attachment or hyperlink.

• A message, often with an urgent tone, urging the receiver to open a link or attachment. These messages have a false narrative, like someone’s password has expired or some other urgent action is needed.
• An email address, number or link that's slightly misspelled or has a different domain name or URL (irs.com vs. IRS.gov). A closer look at these email addresses – like hovering the cursor over the email address – can show slight variations on legitimate addresses.

“There are major red flags that can be easily overlooked, so tax professionals and taxpayers should be extra careful and look closely when they receive an email from an official looking source,” Werfel said.

Cloud-based schemes remain a threat  

Tax professionals using cloud-based systems that store information or run tax preparation software should use multi-factor authentication to help safeguard that data. The Federal Trade Commission now requires all practitioners to secure sensitive client personally identifiable information (PII) using multi-factor authentication.

Specifically, the Security Summit continues to see attacks that take advantage of cloud-based systems and compromise personal information. Multi-factor authentication options provide an additional layer of security to access a system by using a phone, text messages or tokens. Since email is easier for identity thieves to access, having these layers of security helps guard against potential vulnerabilities.

Additional resources  

For tax professionals who are victim of any of these schemes or identity theft, the IRS urges them to quickly contact their IRS Stakeholder Liaison to provide details of the situation. Tax professionals can also share information with the appropriate state tax agency by visiting a special “Report a Data Breach” page with the Federation of Tax Administrators.

Quickly reporting these incidents can not only protect the tax pro's clients, but it can also help provide critical information quickly to help prevent these attacks from hitting others in the tax community.

Tax professionals should also understand the Federal Trade Commission’s data breach response requirements as part of their overall information and data security plan. There’s a new requirement to report an incident to the FTC when 500 or more people are affected within 30 days of the incident.

To help taxpayers navigate these issues and meet the requirement to have a security plan, the Security Summit has prepared a sample Written Information Security Plan. This template can help tax pros, including smaller practitioners, protect themselves from ongoing security threats.

Tax professionals should also review IRS Publication 4557, Safeguarding Taxpayer Data, for more information.

Other resources include Small Business Information Security: The Fundamentals, by the National Institute of Standards and Technology and the IRS' Identity Theft Central pages for tax pros.

Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. The IRS also encourages tax professionals to stay connected to the IRS for its latest updates and alerts through subscriptions to e-News for Tax Professionals and its social media sites.

Taxpayers urged to talk to a trusted tax professional, not rely on marketers or social media for tax advice

 IR-2024-187, July 15, 2024

WASHINGTON — The Internal Revenue Service issued a consumer alert today following bad advice circulating on social media about a non-existent “Self Employment Tax Credit” that’s misleading taxpayers into filing false claims.

Promoters and social media are marketing something they describe as the “Self Employment Tax Credit” as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, there is inaccurate information suggesting many people qualify for the tax credit and payments of up to $32,000 when they actually do not.

In reality, the underlying credit being referred to in social media isn’t called the “Self Employment Tax Credit,” it’s a much more limited and technical credit called Credits for Sick Leave and Family Leave. Many people simply do not qualify for this credit, and the IRS is closely reviewing claims coming in under this provision so people filing claims do so at their own risk.

“This is another misleading social media claim that’s fooling well-meaning taxpayers into thinking they’re due a big payday,” said IRS Commissioner Danny Werfel. “People shouldn’t be misled by outlandish claims they see on social media. Before paying someone to file these claims, taxpayers should consult with a trusted tax professional to see if they meet the very limited eligibility scenarios.”

People who were self-employed can claim Credits for Sick and Family Leave only for limited COVID-19 related circumstances in 2020 and 2021; the credit is not available for 2023 tax returns. The IRS is seeing repeated instances where taxpayers are incorrectly using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to incorrectly claim a credit based on income earned as an employee and not as a self-employed individual.

To qualify for the Sick and Family Leave Credits, self-employed workers have to meet a variety of technical reasons in 2020 and 2021 that didn’t allow them to work, including caring for an individual subject to a quarantine or isolation order. The IRS has a detailed set of FAQs describing the very technical requirements for meeting this provision of the law.

The IRS is seeing some similarities to marketing around this “Self Employment Tax Credit” similar to aggressive promotion of the Employee Retention Credit. Both are technical credits that have been mischaracterized by some as a way for average taxpayers to get a big government payment. In reality, these are very limited credits that have a variety of complex requirements before people can qualify.

The IRS urges people to check with a trusted tax professional before filing for any “Self Employment Tax Credit” or any other questionable tax claim circulating on social media.

The IRS has previously warned taxpayers about misuse of the Sick and Family Leave Credits stemming from various tax scams and inaccurate social media advice that led thousands of taxpayers to file inflated refund claims during the past tax season.

In addition to the Sick and Family Leave Credit, the IRS warned taxpayers not to fall for these scams centered around the Fuel Tax Credit and household employment taxes. The IRS has seen thousands of dubious claims come in where it appears taxpayers are claiming credits for which they are not eligible, leading to refunds being delayed and the need for taxpayers to show they have legitimate documentation to support these claims.

The IRS continues to urge taxpayers to avoid these scams as myths continue to persist that these are ways to obtain a huge refund. Many of these scams were highlighted during this spring’s annual Dirty Dozen series, including the Fuel Tax Credit scam, bad social media advice and “ghost preparers.”

“These improper claims have been fueled by social media and people sharing bad advice,” Werfel said. “Scam artists constantly prey on people’s hopes and try to use the complexity of the tax system to convince people there are secret ways to get a big refund. All of these scams illustrate that it’s important to carefully review the tax return for accuracy before filing and rely on the advice of a trusted tax professional, not someone trying to make a quick buck or a questionable source on social media.”

Inside This Issue

1. Security Summit partners urge continued vigilance against evolving scams to tax professionals, businesses and clients
2. IRS Nationwide Tax Forum: Registration still open for Baltimore, Dallas
3. IRS collects $1 billion in past due taxes collected as compliance efforts continue
4. Custodial brokers required to report sales and exchanges of digital assets
5. Career opportunities at the IRS Independent Office of Appeals
6. Clean Fuel Production Credit Registration: Treasury, IRS issue FAQs
7. Upcoming webinar for tax practitioners

1.  Security Summit partners urge continued vigilance against evolving scams to tax professionals, businesses and clients

The IRS and Security Summit cautioned tax professionals to remain vigilant against emerging identity theft schemes. Protect Your Clients; Protect Yourself news release series, a special initiative of the Security Summit, kicked off this week. The news release series will offer crucial information to help safeguard sensitive taxpayer data. This campaign aims to raise tax professionals’ awareness of identity theft and security threats and how to protect themselves and their clients from them.

Scammers are using a variety of techniques to obtain private information from tax experts. Tax professionals should exercise caution to avoid becoming victims of these attacks, which put their businesses and clients at risk. Here are some trending examples that tax professionals should watch out for:

• Beware of the “new client” scheme;
• Multiple phishing scams involving EPINs, PTINs, CAF numbers; and
• Phone, text and correspondence schemes.

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2.  IRS Nationwide Tax Forum: Registration still open for Baltimore, Dallas

Have you reserved your space for the 2024 IRS Nationwide Tax Forum? 

The five-city program, which kicked off this week in Chicago, is sold out in Orlando (July 30-Aug. 1) and San Diego (Sept. 10-12). But tax professionals can still secure a spot in:

• Baltimore: Aug. 13-15 or 
• Dallas: Aug. 20-22

The IRS Nationwide Tax Forum provides continuing education credit for enrolled agents, certified public accountants, Annual Filing Season Program participants and California Tax Education Council participants. Attendees can earn up to 19 CE credits this year, participate in a series of special events, see the latest industry offerings in the Expo Hall, make an appointment with the popular Case Resolution Room, and network with fellow tax professionals.

For information on special events and to register, visit IRS Nationwide Tax Forum.

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3.  IRS collects $1 billion in past due taxes collected as compliance efforts continue

The IRS announced it has collected overdue taxes totaling over $1 billion from high-wealth groups, corporations and partnerships as part of continuing compliance efforts under the Inflation Reduction Act. Today’s announcement includes a segment of high-income individual taxpayer cases. Last fall, the IRS ramped up efforts to pursue high-income, high-wealth individuals who failed to pay a tax bill. These high-end collection cases are concentrated among taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt.

“With this collection activity, the IRS passed an important milestone in our effort to improve compliance and ensure fairness in the tax system,” said IRS Commissioner Danny Werfel. “Our increased work in this area means these past-due tax bills from high-end taxpayers are no longer being left on the table, like they were too often in the past.”

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4.  Custodial brokers required to report sales and exchanges of digital assets

The U.S. Department of the Treasury and the Internal Revenue Service issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These reporting requirements will help taxpayers to file accurate tax returns with respect to digital asset transactions, which are already subject to tax under current law.

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5.  Career opportunities at the IRS Independent Office of Appeals

Tax pros: Are you interested in elevating your international tax experience to the next level? If so, the IRS Independent Office of Appeals is hiring for our Appeals Officer (International Specialist) position in multiple locations throughout the United States including Puerto Rico.

For more information, register for the Virtual IRS Appeals Officer - International Tax Specialist Session on July 17, 2024 from 1:00PM – 2:30PM EST. You’ll hear about the benefits of working for Appeals, get resume and application tips, and have a chance to ask questions!

To register, click the following link: Join our Virtual IRS Appeals Officer International Tax Specialist Session.

You can apply to this exciting opportunity at Appeals Officer (International Specialist) now through July 31, 2024.

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6.  Clean Fuel Production Credit Registration: Treasury, IRS issue FAQs

The Department of Treasury and the IRS published frequently asked questions (FAQs) in Fact Sheet 2024-25, regarding which entities are required to apply for registration for the Clean Fuel Production Credit. Guidance on how to apply for registration and what documentation a clean fuel producer needs to include with their application is outlined in Notice 2020-49.

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7.  Upcoming webinar for tax practitioners

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

Understanding Form 2290 - Heavy Highway Vehicle Use Tax on July 18, at 2 p.m. ET. Earn up to 2 CE credits (Federal tax). Certificates of completion are being offered.

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

WASHINGTON — The Internal Revenue Service would like to remind car dealers and sellers to be aware of evolving phishing and smishing scams that could impact day-to-day operations of the business.

In light of the recent ransomware attack aimed at car dealers, the IRS is warning individuals and businesses to remain vigilant against these attacks. Fraudsters and identity thieves attempt to trick the recipient into clicking a suspicious link, filling out personal and financial information or downloading a malware file onto their computer.

Scammers are relentless in their attempts to obtain sensitive financial and personal information, and impersonating the IRS remains a favorite tactic. The IRS urges car dealerships to be extra cautious about unsolicited messages and avoid clicking any links in an unsolicited email or text if they are uncertain.

Phish or smish: Don’t take the bait

The IRS continues to see a barrage of email and text scams targeting businesses and individual taxpayers. The IRS and the Security Summit partners continue to remind taxpayers, businesses and tax professionals to be alert for a wide variety of these scams and schemes. Businesses such as car dealerships should remain alert for targeted email and text scams aimed to disrupt their computer systems.

These businesses should be alert to fake communications posing as legitimate organizations. These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims to provide valuable information that can lead to identity theft or malicious malware installed on computer systems. There are two main types:

• Phishing: An email sent by fraudsters claiming to come from a legitimate source. The email lures the victims into the scam with a variety of ruses such as enticing victims to provide sensitive information.

• Smishing: A text or smartphone SMS message where scammers often use alarming language such as, "Your account has now been put on hold," or "Unusual Activity Report," with a bogus "Solutions" link to restore the recipient's account.

Never click on any unsolicited communication as it may surreptitiously load malware. It may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.

In some cases, phishing emails appear to come from a legitimate sender or organization that has had their email account credentials stolen. Setting up two-factor or multi-factor authentication with their email provider will reduce the risk of individuals having their email account compromised.

Posing as a trusted organization, friend or family member remains a common way to target individuals and businesses for various scams. Individuals and businesses should verify the identity of the sender by using another communication method, for instance, calling a number they independently know to be accurate, not the number provided in the email or text.

What to do

• Never respond to phishing or smishing or click on the URL link.
• Don't open any attachments. They can contain malicious code that may infect the computer or mobile phone.
• Don't click on any links. If a taxpayer inadvertently clicked on links in a suspicious email or website and entered confidential information, visit the IRS’ identity protection page.
• Send the full email headers or forward the email as-is to phishing@irs.gov. Don't forward screenshots or scanned images of emails because this removes valuable information.
• Delete the original email.