WASHINGTON — The Internal Revenue Service today reminded taxpayers they can securely access their IRS account information through their individual online account.

The IRS regularly adds features to online account. For example, people can now check the amounts of their Economic Impact Payments (EIPs) to help them accurately calculate any Recovery Rebate Credit they may be eligible for on their 2020 tax return. The EIP amounts can be found on the Tax Records tab. Amounts will show as “Economic Impact Payment” for the first payment and “Additional Economic Impact Payment” for the second payment. For married filing joint individuals, each spouse will need to sign into their own account to retrieve their portion of the payments. For more information regarding the credit, see Recovery Rebate Credit. Additionally, taxpayers can view:

They can also:

Later in 2021, taxpayers will be able to digitally sign certain authorization forms, such as a power of attorney, initiated by their tax professional.

Here’s how to get started for new users:

Once the initial authentication process is complete, returning users can use the same username and password to access other IRS online services such as Get Transcript and Get An Identity Protection PIN (IP PIN) (if applicable).

All password-protected online IRS tools for taxpayers are protected by multi-factor authentication, offering extra security precautions.

Today, the IRS published the latest executive column, “A Closer Look,” which features Commissioner, Wage & Investment and Chief Taxpayer Experience Officer, Ken Corbin, discussing how the IRS prepares to process more than 150 million tax returns and issue more than $400 billion in refunds to taxpayers each year. “I want to reassure you that the IRS is dedicated to serving our nation. We have added to our capabilities the lessons learned and best practices of 2020.  We are ready, willing and able to help taxpayers meet the April 15 filing deadline,” said Corbin. Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Check here for prior posts and new updates.

Please contact newsroom@irs.gov for any questions or requests for interviews.

WASHINGTON – With filing season opening on Feb. 12, the Internal Revenue Service urged taxpayers to take some simple steps to help ensure they file accurate tax returns and speed their tax refunds to avoid a variety of pandemic-related issues.

Although every year the IRS encourages taxpayers to e-file their returns and use direct deposit to receive refunds, to those taxpayers who have previously not used e-file, the IRS emphasizes using it this year to avoid paper-related processing delays. Taxpayers can file electronically by using a tax professional, IRS Free File or other commercial tax preparation software. The IRS cautioned paper-filed tax returns and paper checks will take even longer this year due to a variety of reasons.

Taxpayers have until Thursday, April 15, 2021, to file their 2020 tax return and pay any tax owed. The IRS expects to receive more than 160 million individual tax returns this year with nine out of 10 returns filed electronically. At least eight out of 10 taxpayers get their refunds by using direct deposit.

“The pandemic has created a variety of tax law changes and has created some unique circumstances for this filing season,” said IRS Commissioner Chuck Rettig. “To avoid issues, the IRS urges taxpayers to take some simple steps to help ensure they get their refund as quickly as possible, starting with filing electronically and using direct deposit.

"Following months of hard work, we are ready to start this year’s tax season,” Rettig added. "Getting to this point is always a year-round effort for the IRS and the nation’s tax community. Doing it in a continuing COVID-19 environment while simultaneously delivering stimulus payments for the nation is an unprecedented accomplishment by IRS employees. I also want to thank all our tax partners and tax professionals for their hard work that makes tax time smoother for the nation. All of us stand ready to serve America’s taxpayers during this important filing season.”

Wage and Investment Commissioner and Chief Taxpayer Experience Officer Ken Corbin provides an in-depth perspective on how the IRS is preparing for a successful filing season in his A Closer Look column.

Be tax ready: Review pandemic-related changes
Last year’s sweeping set of tax changes not only affected individuals and their families but may also affect the tax return they’re filing this year. A new IRS Fact Sheet explains what taxpayers need to know to file a complete and accurate tax return. The IRS recognizes that filing this year may be challenging for some taxpayers and it’s important to understand how to claim credits and deductions, get a refund timely and meet all tax responsibilities.

Recovery Rebate Credit helps people still eligible for Economic Impact Payments
For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn't receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, including IRS Free File, will help taxpayers figure the amount.

New language preferences to help taxpayers
Additionally, this year for the first time, Forms 1040 and 1040-SR are available in Spanish, and the IRS has a new form allowing taxpayers to request that they receive information from the IRS in their preferred language. The Schedule LEP, Request for Change in Language Preference, will allow taxpayers to request information in some 20 different languages besides English.

The IRS also wants to remind taxpayers of other important changes that could impact their tax return this year.

Remember to factor in retirement plan distributions
Some taxpayers found it necessary to take coronavirus-related early distributions from 401(k) plans and traditional IRAs in 2020. Under the CARES Act, those distributions – up to $100,000 – are not subject to the 10% additional tax that otherwise generally applies to distributions made before an individual reaches age 59 ½. In addition, a coronavirus-related distribution can be included in income in equal installments over a three-year period, and an individual has three years to repay a coronavirus-related distribution to a plan or IRA and undo the tax consequences of the distribution.

Taxpayers should also remember that they can make contributions to traditional IRAs until April 15, 2021, and still deduct that amount on their 2020 tax return, if eligible.

New for 2020: non-itemizers can deduct $300 for charitable cash contributions
Previously, charitable contributions could only be deducted if taxpayers itemized their deductions.
However, with the CARES act, taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose.

Now more than ever, e-file is best
Now more than ever, the safest and best way to file a complete and accurate tax return and get a refund is to file electronically and use direct deposit. Taxpayers can visit IRS.gov/filing for more details about IRS Free File, Free File Fillable Forms and Free tax preparation sites. E-filing is also available through a trusted tax professional. Free File is a great option for people who are only filing a tax return to claim the Recovery Rebate Credit, either because they didn't receive an Economic Impact Payment or did not receive the full amount.

The fastest way to get a refund is to file electronically and use direct deposit. Most refunds are issued in less than 21 days, but some refunds may take longer for a variety of reasons. Taxpayers can track their refund using "Where's My Refund?" on IRS.gov or by downloading the IRS2Go mobile app where they’ll get a personalized refund date as soon as 24 hours after the tax return is electronically submitted.

Most early Earned Income Tax Credit/Additional Child Tax Credit filers should see an update to “Where’s My Refund?” by Feb. 22. The IRS cannot answer refund status inquiries unless it has been 21 days since the return was electronically filed.

IRS tax help is available 24 hours a day on IRS.gov, where people can find answers to tax questions and resolve tax issues online from the safety of their home. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide PDF links to other important IRS services.

WASHINGTON – The Internal Revenue Service, state tax agencies and tax industry today warned tax professionals of a new scam email that impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs).

The Security Summit partners said the latest scheme, arriving just before the start of the nation’s tax season, should serve as another reminder that tax professionals remain prime targets for identity thieves. These thieves try to steal client data and tax preparers’ identities that will allow them to file fraudulent tax returns for refunds.

“Phishing scams are the most common tool used by identity thieves to trick tax professionals into disclosing sensitive information, and we often see increased activity during filing season,” said IRS Commissioner Chuck Rettig. “Tax professionals must remain vigilant. The scammers are very active and very creative.”

The latest scam email says it is from “IRS Tax E-Filing” and carries the subject line “Verifying your EFIN before e-filing.”

The IRS warns tax pros not to take any of the steps outlined in the email, especially responding to the email. The body of the bogus email states:

In order to help protect both you and your clients from unauthorized/fraudulent activities, the IRS requires that you verify all authorized e-file originators prior to transmitting returns through our system. That means we need your EFIN (e-file identification number) verification and Driver's license before you e-file.

Please have a current PDF copy or image of your EFIN acceptance letter (5880C Letter dated within the last 12 months) or a copy of your IRS EFIN Application Summary, found at your e-Services account at IRS.gov, and Front and Back of Driver's License emailed in order to complete the verification process. Email: (fake email address)

If your EFIN is not verified by our system, your ability to e-file will be disabled until you provide documentation showing your credentials are in good standing to e-file with the IRS.
 
© 2021 EFILE. All rights reserved. Trademarks
2800 E. Commerce Center Place, Tucson, AZ 85706

Tax professionals who received the scam should save the email as a file and then send it as an attachment to phishing@irs.gov. They also should notify the Treasury Inspector General for Tax Administration at www.TIGTA.gov to report the IRS impersonation scam. Both TIGTA and the IRS Criminal Investigation division are aware of the scam.

Like all phishing email scams, it attempts to bait the receiver to take action (opening a link or attachment) with a consequence for failing to do so (disabling the account). The links or attachment may be set up to steal information or to download malware onto the tax professional’s computer.

In this case, the tax preparers are being asked to email documents that would disclose their identities and EFINs to the thieves. The thieves can use this information to file fraudulent returns by impersonating the tax professional.

Tax professionals also should be aware of other common phishing scams that seek EFINs, Preparer Tax Identification Numbers (PTINs) or e-Services usernames and passwords.

Some thieves also pose as potential clients, an especially effective scam currently because there are so many remote transactions during the pandemic. The thief may interact repeatedly with a tax professional and then send an email with an attachment that claims to be their tax information.

The attachment may contain malware that allows the thief to track keystrokes and eventually steal all passwords or take over control of the computer systems.
 
Some phishing scams are ransomware schemes in which the thief gains control of the tax professionals’ computer systems and holds the data hostage until a ransom is paid. The Federal Bureau of Investigation (FBI) has warned against paying a ransom because thieves often leave the data encrypted.

For additional information and help, tax professionals should review Publication 4557, Safeguarding Taxpayer Data, and Identity Theft Information for Tax Professionals.

WASHINGTON — With some areas seeing mail delays, the Internal Revenue Service reminds taxpayers to double-check to make sure they have all of their tax documents, including Forms W-2 and 1099, before filing a tax return.

The IRS reminds taxpayers that many of these forms may be available online. When other options aren’t available, taxpayers who haven’t received a W-2 or Form 1099 should contact the employer, payer or issuing agency directly to request the missing documents before filing their 2020 federal tax return. This also applies for those who received an incorrect W-2 or Form 1099.

Those who don’t get a response, are unable to reach the employer/payer/issuing agency or cannot otherwise get copies or corrected copies of their Forms W-2 or 1099 must still file their tax return on time by the April 15 deadline (or October 15 if requesting an automatic extension). They may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. to avoid filing an incomplete or amended return.

If the taxpayer doesn’t receive the missing or corrected form in time to file their tax return by the April deadline, they may estimate the wages or payments made to them, as well as any taxes withheld. Use Form 4852 to report this information on their federal tax return.

If the taxpayer receives the missing or corrected Form W-2 or Form 1099-R after filing their return and the information differs from their previous estimate, they must file Form 1040-X, Amended U.S. Individual Income Tax Return. For additional information on filing an amended return, see Topic No. 308 and Should I File an Amended Return?

Taxpayers should allow enough time for tax records to arrive in the mail before filing their 2020 tax return. In a normal year, most taxpayers should have received income documents near the end of January, including:

Incorrect Form 1099-G for unemployment benefits
Millions of Americans received unemployment compensation in 2020, many of them for the first time. This compensation is taxable and must be included as gross income on their tax return.

Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits. Taxpayers who are unable to obtain a timely, corrected form from states should still file an accurate tax return, reporting only the income they received.

Use IRS.gov
IRS tax help is available 24 hours a day on IRS.gov, the official IRS website, where people can find answers to tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide links to other important IRS services.

WASHINGTON – The Internal Revenue Service announced today that Nancy Sieger has been selected as the Chief Information Officer. She has served as acting CIO since June 2019.

“Nancy has done an exemplary job as Acting CIO supporting delivery of two rounds of Economic Interest Payments totaling more than $420 billion along with individual tax refunds of more than $320 billion during the pandemic,” said IRS Commissioner Chuck Rettig. “She is a remarkable person, enjoys tremendous support from our entire IT team and throughout the IRS. She excelled from every perspective during a very challenging time for our organization and we are extremely pleased that Nancy has agreed to continue leading the IT organization.”

Sieger is responsible for all aspects of IT systems that operate the nation's tax infrastructure. She oversees the 7,000-person IT organization that maintains hundreds of systems and supports the processing of millions of tax returns annually.

Sieger previously served as the Deputy CIO for Filing Season and Tax Reform. In that capacity, she provided leadership for executing all technology changes needed to deliver the Tax Cuts and Jobs Act, in addition to ensuring IT delivered a seamless annual tax filing season and integrated software and operational solutions that aligned with modernization goals. She also previously served as the Acting Deputy CIO for Operations and the Associate CIO for Applications Development.

A graduate of the IRS 2004 Executive Development class, Nancy has a strong business background. Prior to joining the IT organization, she served in several headquarters and field positions in both Wage and Investment and Small Business/Self Employed Operating Divisions.

Throughout her career, Sieger has been committed to the principles of Equal Employment Opportunity and Diversity. She served as chair of the IT Diversity and EEO Advisory Committee and actively mentors employees at all levels.

Sieger is the recipient of Fed Scoop 50 awards for exemplary Federal Leadership, a Gears of Government President’s Award, and was honored with a Presidential Rank Award for Meritorious Service.

Sieger is a graduate of the University of Maryland.

WASHINGTON – The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA).

Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. They’ll claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and Dec. 31, 2020, and on their 2021 Form 1040 for leave taken between Jan. 1, 2021, and March 31, 2021.

The FFCRA, passed in March 2020, allows eligible self-employed individuals who, due to COVID-19 are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax. The credits are equal to either their qualified sick leave or family leave equivalent amount, depending on circumstances. IRS.gov has instructions to help calculate the qualified sick leave equivalent amount and qualified family leave equivalent amount. Certain restrictions apply.

Who may file Form 7202
Eligible self-employed individuals must:

Taxpayers must maintain appropriate documentation establishing their eligibility for the credits as an eligible self-employed individual.

Resources:

WASHINGTON – The Internal Revenue Service reminds taxpayers to avoid “ghost” tax return preparers whose refusal to sign returns can cause a frightening array of problems. It is important to file a valid, accurate tax return because the taxpayer is ultimately responsible for it.

Ghost preparers get their scary name because they don’t sign tax returns they prepare. Like a ghost, they try to be invisible to the fact they’ve prepared the return and will print the return and get the taxpayer to sign and mail it. For e-filed returns, the ghost preparer will prepare but refuse to digitally sign it as the paid preparer.

By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund.

Unscrupulous tax return preparers may also:

The IRS urges taxpayers to choose a tax return preparer wisely. The Choosing a Tax Professional page on IRS.gov has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.

No matter who prepares the return, the IRS urges taxpayers to review it carefully and ask questions about anything not clear before signing. Taxpayers should verify both their routing and bank account number on the completed tax return for any direct deposit refund. And taxpayers should watch out for preparers putting their bank account information onto the returns.

Taxpayers can report preparer misconduct to the IRS using IRS Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.

WASHINGTON – The Internal Revenue Service today named Heather C. Maloy to the position of director, Taxpayer First Act Office. She will report directly to the IRS Commissioner in her new role.

The IRS continues work on the Taxpayer First Act, part of legislation passed in July 2019. The IRS delivered the Taxpayer First Act Report to Congress earlier this year, providing a comprehensive set of recommendations that will reshape the taxpayer experience, enhance employee training and restructure the organization to increase collaboration and innovation.

“I’m truly pleased to welcome Heather back to the IRS and into this critical role,” said IRS Commissioner Chuck Rettig. “Given Heather’s vast knowledge and leadership experience from both inside and outside the IRS, she will be an important asset to both the IRS and the nation’s taxpayers going forward as we strategically implement the Taxpayer First Act report’s recommendations.”

Maloy replaces Lia Colbert, who will continue in her current role as Deputy Chief of the Independent Office of Appeals. Colbert is a long-time IRS executive who formerly served as both TFA lead and Chief of Staff before moving to Appeals in October 2020.

In her new position, Maloy will provide advice and assistance to the Commissioner in areas such as implementation strategy, management and organizational issues and equitable treatment of taxpayers. She will help set the strategic direction of IRS programs with a focus on a comprehensive taxpayer experience strategy, a holistic training strategy and a modernized IRS organizational structure.

Maloy recently retired from her position as a Principal at Ernst & Young, LLP, where she led a national practice group of specialized tax professionals in serving large, multinational corporations, partnerships, tax-exempt organizations and individuals navigating IRS tax controversies.

In her previous roles at IRS, Maloy served as the Commissioner, Large Business and International Division (LB&I), where she led over 5,000 employees and oversaw tax compliance programs for corporations, subchapter S corporations and partnerships with assets greater than $10 million and incorporated international tax compliance operations into the division. During her tenure, she oversaw the successful expansion of the Compliance Assurance Process, championed the development of new audit procedures to increase transparency and discipline in the LB&I audit process, including the Information Document Request (IDR) procedures and oversaw the issuance and implementation of the Uncertain Tax Position reporting requirements. She also acted as the Deputy Commissioner for Services and Enforcement.

Prior to her selection as the LB&I Commissioner, Maloy held several other prominent IRS positions, including Associate Chief Counsel for both the Income Tax & Accounting and Passthroughs & Special Industries Divisions and Assistant to the Commissioner.

From 2006-2009, she was Counsel at Skadden, Arps, Slate, Meagher & Flom’s Tax Group. Maloy graduated from Emory University, received her law degree from Cornell Law School and an LL.M. in Taxation from the University of Florida School of Law.

Revenue Procedure 2021-15 provides a safe harbor for eligible educators, within the meaning of § 62(d)(1) of the Internal Revenue Code (Code), to treat unreimbursed expenses paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of COVID–19 in the classroom, as expenses that are described in § 62(a)(2)(D)(ii) and allowable as a deduction under § 62(a)(2)(D) pursuant to section 275 of the COVID-related Tax Relief Act of 2020 (COVID Tax Relief Act), which was enacted as part of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, 134 Stat. 1182, 1978 (2020).

Revenue Procedure 2021-15 will appear in Internal Revenue Bulletin IRB-2021-8, dated Feb. 22, 2021.