IRS Tax News

  • 08 Jun 2021 2:50 PM | Anonymous

    WASHINGTON — The Internal Revenue Service is looking to hire motivated acquisition professionals interested in providing America’s taxpayers top quality service. The agency’s Procurement office plans to fill 80 vacancies nationwide, many of which are contract specialists.

    The IRS Procurement office provides acquisition services for IRS business units, Treasury departmental offices and Information Technology for the Bureau of Engraving and Printing. The office administers all aspects of the acquisition process from planning, contract award, management and closeout. IRS Procurement’s goal is to create agile and innovative best value contract solutions to ensure the IRS meets its mission.

    “It’s an exciting time to work for IRS Procurement. Our culture shift of embracing innovation, agility and speed means our procurement professionals are empowered to think outside the box and take intelligent risks,” said Shanna Webbers, IRS Chief Procurement Officer. “Integrity in the procurement process is of utmost importance and leveraging Federal Acquisition Regulation (FAR) flexibilities allows us to be bold in enabling the IRS mission. We’re looking for the “best of the best” to join Team Procurement.”

    Contract specialists are responsible for a full range of planning, directing and administering complex acquisitions, which are often service-wide in scope and for pre- and/or post-award. Contract specialists will also:

    • Assist customers in developing statements of work and procurement strategy.
    • Develop evaluation plans, pricing methodologies and administration plans.
    • Recommend streamlining initiatives and utilize the use of innovative principles to improve procurement operations and customer service.
    • Serve as an advisor on acquisitions for complex equipment, supplies and services, which have a significant impact on the effectiveness of the entire tax system nationwide.
    • Solicit contractual proposals, as well as negotiate, execute, administer and terminate public contracts for the Service.
    • Perform contract administration functions, such as verifying evidence of contractor's progress, negotiating modifications, issuing termination notices, reviewing contract claims, approving payments and conducting contract closeouts.
    • Ensure that all requirements of law, executive orders, regulations and other applicable procedures have been met and report all unlawful behavior.

    Interested individuals can apply by creating a profile at usajobs.gov. To see all available IRS positions or share these job postings with friends, family or neighbors who may be interested and qualified for the positions visit https://www.jobs.irs.gov/careers

    The IRS is an equal opportunity employer. All employees must be U.S. citizens, pass an FBI fingerprint check and tax compliance verification, and meet the mandatory education, training and experience qualification requirements.


  • 08 Jun 2021 9:48 AM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds taxpayers who pay estimated taxes that they have until June 15 to pay their estimated tax payment for the second quarter of tax year 2021 without penalty.

    Estimated tax is the method used to pay tax on income that isn’t subject to withholding. This includes income from self-employment, interest, dividends, rent, gains from the sale of assets, prizes and awards. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension or other income isn’t enough.

    Who must pay estimated tax?
    Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when they file their return.

    Individual taxpayers can use the IRS Interactive Tax Assistant online to see if they are required to pay estimated taxes. They can also see the worksheet in Form 1040-ES, Estimated Tax for Individuals for more details on who must pay estimated tax.

    Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when they file their return. Corporations can see Form 1120-W, Estimated Tax for Corporations for more information.

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

    Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can be especially helpful to those who have dividend or capital gain income, owe alternative minimum tax or self-employment tax, or have other special situations.

    Taxes are pay-as-you-go
    This means taxpayers need to pay most of their taxes owed during the year as income is received. There are two ways to do that:

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

    Taxpayers can avoid an underpayment penalty by owing less than $1,000 at tax time or by paying most of their taxes during the year. Generally, for 2021 that means making payments of at least 90% of the tax expected on their 2021 return. Most taxpayers who pay at least 100 percent of the tax shown on their return for tax year 2020 may also avoid the penalty. There are special rules for farmers and fishermen, certain household employers and certain higher income taxpayers. For more information, refer to Form 1040-ES.

    Generally, taxpayers should make estimated tax payments in four equal amounts to avoid a penalty. However, if they receive income unevenly during the year, they may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method. Taxpayers can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts to see if they owe a penalty for underpaying their estimated tax.

    Third quarter payments are due September 15 and the final estimated tax payment for tax year 2021 is due on January 17, 2022.

    Tax Withholding Estimator
    If a taxpayer receives salaries and wages, they can avoid having to pay estimated tax by asking their employer to withhold more tax from their earnings. To do this, they would submit a new Form W-4 to their employer.

    If a taxpayer receives a paycheck, the Tax Withholding Estimator can help them make sure they have the right amount of tax withheld from their pay.

    The Tax Withholding Estimator offers workers, as well as retirees, self-employed individuals and other taxpayers a clear, step-by-step method for effectively checking their withholding to protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.

    How to pay estimated taxes
    Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes.

    The fastest and easiest ways for individuals to make an estimated tax payment is electronically by using IRS Direct Pay from their checking or savings account or pay using a debit or credit card. Taxpayers should note that the payment processor, not the IRS, charges a fee for debit and credit card payments. Both Direct Pay and the pay by debit or credit card options are available online at IRS.gov and through the IRS2Go app.  

    Taxpayers can also use the Electronic Federal Tax Payment System (EFTPS) to make an estimated tax payment.

    Corporations must use electronic funds transfer to make all federal tax deposits (such as deposits of employment, excise, and corporate income tax). This includes installment payments of estimated tax. Generally, electronic funds transfer is made using the Electronic Federal Tax Payment System (EFTPS). However, if the corporation does not want to use EFTPS, it can arrange for its tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on its behalf.

    If taxpayers opt to mail a check or money order, they should make them payable to the "United States Treasury."

    For information on all payment options, visit IRS.gov/payments.

    IRS.gov assistance 24/7
    Tax help is available 24/7 on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions.

    The IRS is continuing to expand ways to communicate to taxpayers who prefer to get information in other languages. The IRS has posted translated tax resources in 20 other languages on IRS.gov. For more information, see We Speak Your Language.


  • 07 Jun 2021 2:49 PM | Anonymous

    WASHINGTON — The Internal Revenue Service has started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July.

    The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. The letters are going to families who may be eligible based on information they included in either their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment.
    Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15.

    Most families do not need to take any action to get their payment. Normally, the IRS will calculate the payment amount based on the 2020 tax return.  If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS will instead determine the payment amount using the 2019 return.

    Eligible families will begin receiving advance payments, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17.The IRS will issue advance Child Tax Credit payments on July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.

    Eligible families should file tax returns soon

    The IRS urges individuals and families who haven’t yet filed their 2020 return – or 2019 return – to do so as soon as possible so they can receive any advance payment they’re eligible for.

    Filing soon will also ensure that the IRS has their most current banking information, as well as key details about qualifying children. This includes people who don’t normally file a tax return, such as families experiencing homelessness, the rural poor, and other underserved groups.

    For most people, the fastest and easiest way to file a return is by using the Free File system, available only on IRS.gov.

    Throughout the summer, the IRS will be adding additional tools and online resources to help with the advance Child Tax Credit. One of these tools will enable families to unenroll from receiving these advance payments and instead receive the full amount of the credit when they file their 2021 return next year.

    Additionally, later this year, individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information; and make other changes to ensure they are receiving the right amount as quickly as possible.

    Other tools coming soon

    The IRS has created a special Advance Child Tax Credit 2021 page at IRS.gov/childtaxcredit2021, designed to provide the most up-to-date information about the credit and the advance payments.

    In the next few weeks, the page will also feature other useful new online tools, including:

    • An interactive Child Tax Credit eligibility tool to help families determine whether they qualify for the Advance Child Tax Credit payments.
    • Another tool, the Child Tax Credit Update Portal, will initially enable anyone who has been determined to be eligible for advance payments unenroll/ to opt out of the advance payment program. Later this year, it will allow people to check on the status of their payments, make updates to their information, and be available in Spanish.  More details will be available soon about the online Child Tax Credit Update Portal.

    Child Tax Credit Changes

    The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 for qualifying children under the age of 6 and to $3,000 per child for qualifying children between ages 6 and 17. Before 2021, the credit was worth up to $2,000 per eligible child, and 17 year-olds were not considered as qualifying children for the credit.

    The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of:
    • $75,000 or less for singles,
    • $112,500 or less for heads of household, and
    • $150,000 or less for married couples filing a joint return and qualified widows and widowers.

    For most people, modified AGI is the amount shown on Line 11 of their 2020 Form 1040 or 1040-SR. Above these income thresholds, the extra amount above the original $2,000 credit — either $1,000 or $1,600 per child — is reduced by $50 for every extra $1,000 in modified AGI.

    In addition, the entire credit is fully refundable for 2021. This means that eligible families can get it, even if they owe no federal income tax. Before this year, the refundable portion was limited to $1,400 per child.

    The IRS urges community groups, non-profits, associations, education organizations, and others with connections to people with children to share this critical information about the Child Tax Credit as well as other important benefits. The IRS will be providing in the near future additional materials and information that can be easily shared by social media, email and other methods.

    For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021.


  • 04 Jun 2021 2:08 PM | Anonymous

    WASHINGTON —The Internal Revenue Service is sending more than 2.8 million refunds this week to taxpayers who paid taxes on unemployment compensation that new legislation now excludes as income.

    IRS efforts to correct unemployment compensation overpayments will help most affected taxpayers avoid filing an amended tax return. So far, the IRS has identified 13 million taxpayers that may be eligible for the adjustment. Some will receive refunds, which will be issued periodically, and some will have the overpayment applied to taxes due or other debts. For some there will be no change.

    The American Rescue Plan Act of 2021 (ARPA) excluded up to $10,200 in unemployment compensation per taxpayer paid in 2020. The $10,200 is the maximum amount that can be excluded when calculating taxable income; it is not the amount of refunds.

    Earlier this month, the IRS began its programming review of tax returns filed prior to the enactment of ARPA to identify the excludible unemployment compensation. The IRS also is making corrections for the Earned Income Tax Credit, Premium Tax Credit and Recovery Rebate Credit affected by the exclusion.

    Taxpayers who have qualifying children and who become eligible for EITC after the exclusion is calculated may have to file an amended return to claim any new benefits. The IRS can adjust tax returns for those who are single with no children and who become eligible for EITC. The IRS also can adjust tax returns where EITC was claimed and qualifying children identified.

    To date, the IRS has reviewed over 3.1 million returns, with more than 2.8 million receiving refunds.

    The IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns.

    Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment.


  • 02 Jun 2021 11:14 AM | Anonymous

    WASHINGTON – The Internal Revenue Service today reminded taxpayers living and working outside of the United States that they must file their 2020 federal income tax return by Tuesday, June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.

    Just as most taxpayers in the United States are required to timely file their tax returns with the IRS, those living and working in another country are also required to file. An automatic two-month deadline extension is normally granted for those overseas and in 2021 that date is still June 15 even though the normal income tax filing deadline was extended a month from April 15 to May 17.

    Benefits and qualifications
    An income tax filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, which substantially reduce or eliminate U.S. tax liability. These tax benefits are only available if an eligible taxpayer files a U.S. income tax return.

    A taxpayer qualifies for the special June 15 filing deadline if both their tax home and abode are outside the United States and Puerto Rico. Those serving in the military outside the U.S. and Puerto Rico on the regular due date of their tax return also qualify for the extension to June 15. IRS recommends attaching a statement if one of these two situations apply.

    Reporting required for foreign accounts and assets
    Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

    In addition, certain taxpayers may also have to complete and attach to their return Form 8938, Statement of Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. See the instructions for this form for details.

    Foreign accounts reporting deadline
    Separate from reporting specified foreign financial assets on their tax return, taxpayers with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2020, must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Because of this threshold, the IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is only available through the BSA E-filing System website.

    The deadline for filing the annual Report of Foreign Bank and Financial Accounts (FBAR) was April 15, 2021, but FinCEN is granting filers who missed the original deadline an automatic extension until October 15, 2021, to file the FBAR.  There is no need to request this extension.

    Report in U.S. dollars
    Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars.

    Both FINCEN Form 114 and IRS Form 8938 require the use of a December 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign Currency and Currency Exchange Rates.

    Expatriate reporting
    Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the United States during 2020 must file a dual-status alien tax return, and attach Form 8854, Initial and Annual Expatriation Statement. A copy of Form 8854 must also be filed with Internal Revenue Service, 3651 S IH35 MS 4301AUSC, Austin, TX 78741, by the due date of the tax return (including extensions). See the instructions for this form and Notice 2009-85 PDF, Guidance for Expatriates Under Section 877A, for further details.

    More time is available
    Extra time is available for those who cannot meet the June 15 date. Individual taxpayers who need additional time to file can request a filing extension to Oct. 15 by printing and mailing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. The IRS can’t process extension requests filed electronically after May 17, 2021. Find out where to mail the form.

    Businesses that need additional time to file income tax returns must file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.

    Combat zone extension
    Members of the military qualify for an additional extension of at least 180 days to file and pay taxes if either of the following situations apply:

    • They serve in a combat zone or they have qualifying service outside of a combat zone or
    • They serve on deployment outside the United States away from their permanent duty station while participating in a contingency operation. This is a military operation that is designated by the Secretary of Defense or results in calling members of the uniformed services to active duty (or retains them on active duty) during a war or a national emergency declared by the President or Congress.

    Deadlines are also extended for individuals serving in a combat zone or a contingency operation in support of the Armed Forces. This applies to Red Cross personnel, accredited correspondents and civilian personnel acting under the direction of the Armed Forces in support of those forces.

    Spouses of individuals who served in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and more military tax information is available in IRS Publication 3, Armed Forces’ Tax Guide.

    Visit IRS.gov for tax information
    Tax help and filing information is available anytime on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions. https://www.irs.gov/payments provides information on electronic payment options.

    Other resources:


  • 01 Jun 2021 12:40 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced it is accepting applications for the Internal Revenue Service Advisory Council (IRSAC). Applications will be accepted through July 9, 2021.

    The IRSAC serves as an advisory body to the IRS commissioner and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.

    The advisory council:

    • proposes enhancements to IRS operations,
    • recommends administrative and policy changes to improve taxpayer service, compliance and tax administration,
    • discusses relevant information reporting issues,
    • addresses matters concerning tax-exempt and government entities and
    • conveys the public’s perception of professional standards and best practices for tax professionals.

    IRSAC members are appointed to three-year terms by the IRS commissioner and submit a report to the commissioner annually at a public meeting. Applications are currently being accepted for terms that will begin in January 2022.

    Nominations of qualified individuals may come from individuals or organizations. IRSAC members are drawn from substantially diverse backgrounds representing a cross-section of the taxpaying public with substantial, disparate experience in:

    • tax preparation for individuals, small businesses and large, multi-national corporations,
    • tax-exempt and government entities
    • information reporting and
    • taxpayer or consumer perspective.

    Applications should document the proposed member’s qualifications. In particular, the IRSAC is seeking applicants with knowledge and background in some of the following areas:

    Individual Wage & Investment

    • Knowledge of tax law application/tax preparation experience, income tax issues related to refundable credits, the audit process, and/or how information returns are used and integrated for compliance,
    • Experience educating on tax issues and topics with multi-lingual taxpayer communications and taxpayer advocacy or contact center operations, marketing/applying industry benchmarks to operations with tax software industry and/or with the creation or use of diverse information returns used to report income, deductions, withholding or other information for tax purposes,
    • Familiarity with IRS tax forms and publications and
    • Financial services information technology background with knowledge of technology innovations in public and private customer service sectors.

    Small Business & Self-Employed

    • Knowledge or experience with virtual currency/cryptocurrency and/or peer to peer payment applications,
    • Knowledge of passthrough entities and/or fiduciary tax and
    • Experience with online or digital businesses, audit representation and/or educating on tax issues and topics

    Large Business & International

    • International tax expertise,
    • Experience as a certified public accountant or tax attorney working in or for a large, sophisticated organization and
    • Experience working in-house at a major firm dealing with complex organizations.

    Tax Exempt & Government Entities

    • Experience with exempt organizations and/or employee plans.

    Information Reporting

    • Service provider, banking industry and/or insurance industry background with experience filing information returns.

    Applicants must be in good standing regarding their own tax obligations and demonstrate high professional and ethical standards. All applicants must complete and submit an application and pass a tax compliance and practitioner check. For those applicants deemed “Best Qualified,” FBI fingerprint checks will also be required.

    More information, including the application form, is available at Open Season for Membership - Internal Revenue Service Advisory Council. Questions about the application process can be emailed to publicliaison@irs.gov.


  • 27 May 2021 11:18 AM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2021. 

    The rates will be: 

    • 3% for overpayments (two (2) % in the case of a corporation),
    • 0.5% for the portion of a corporate overpayment exceeding $10,000,
    • 3% for underpayments and
    • 5% for large corporate underpayments. 

    Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. 

    Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

    The interest rates announced today are computed from the federal short-term rate determined during April 2021 to take effect May 1, 2021, based on daily compounding.

    Revenue Ruling 2021-10, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2021-25, dated June 21, 2021.


  • 27 May 2021 11:17 AM | Anonymous

    Revenue Ruling 2021-10 provides interest rates for underpayments and overpayments for the 3rd quarter 2021. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning July 1, 2021, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent.

    Revenue Ruling 2021-10 will be in IRB:  2021-25, dated June 21, 2021.


  • 26 May 2021 3:15 PM | Anonymous

    WASHINGTON — Today, the Internal Revenue Service, the U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced they have disbursed more than 1.8 million additional Economic Impact Payments under the American Rescue Plan.

    Today’s announcement covering the most recent two weeks of the effort brings the total disbursed so far to nearly 167 million payments. They represent a total value of approximately $391 billion since these payments began rolling out to Americans in batches on March 12

    Here is additional information on the last two weeks of payments, which includes those with official payment dates through May 26:

    • In total, this includes more than 1.8 million payments with a value of more than $3.5 billion.
    • More than 900,000 payments, with a value of approximately $1.9 billion, went to eligible individuals for whom the IRS previously did not have information to issue an Economic Impact Payment but who recently filed a tax return. 
    • This also includes additional ongoing supplemental payments for people who earlier this year received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns. In the last two weeks, there were more than 900,000 of these “plus-up” payments, with a value of more than $1.6 billion. In all, the IRS has made nearly 7 million of these supplemental payments this year.
    • Overall, the last two weeks of payments contain more than 900,000 direct deposit payments (with a total value over $1.6 billion) with the remainder as paper check payments.

    The IRS will continue to make Economic Impact Payments on a weekly basis. Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for “plus-up” payments.

    Special reminder for those who don't normally file a tax return

    Although payments are automatic for most people, the IRS continues to urge people who don’t normally file a tax return and haven’t received Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit.  Filing a 2020 tax return will also assist the IRS in determining whether someone is eligible for an advance payment of the 2021 Child Tax Credit, which will begin to be disbursed this summer.

    For example, some federal benefits recipients may need to file a 2020 tax return – even if they don't usually file – to provide information the IRS needs to send payments for a qualifying dependent. Eligible individuals in this group should file a 2020 tax return as quickly as possible to be considered for an additional payment for their qualifying dependents.

    People who don't normally file a tax return and don't receive federal benefits may qualify for these Economic Impact Payments. This includes those experiencing homelessness, the rural poor, and others. Individuals who didn't get a first or second round Economic Impact Payment or got less than the full amounts may be eligible for the 2020 Recovery Rebate Credit, but they’ll need to file a 2020 tax return. See the special section on IRS.gov: Claiming the 2020 Recovery Rebate Credit if you aren't required to file a tax return.

    Free tax return preparation is available for qualifying people.

    The IRS reminds taxpayers that the income levels in this third round of Economic Impact Payments have changed. This means that some people won't be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income ($150,000 for married filing jointly). The payments end at $80,000 for individuals ($160,000 for married filing jointly); people with Adjusted Gross Incomes above these levels are ineligible for a payment.

    Individuals can check the Get My Payment tool on IRS.gov to see the payment status of these payments. Additional information on Economic Impact Payments is available on IRS.gov.


  • 24 May 2021 10:20 AM | Anonymous

    Tax pros may earn continuing education credits and more

    IRS YouTube Video:
    2021 IRS Tax Forum Will Be Virtual – English

    IR-2021-118, May 24, 2021

    WASHINGTON — The Internal Revenue Service today announced that the 2021 Virtual IRS Nationwide Tax Forum will be held over five weeks starting July 20, with a series of live-streamed webinars every Tuesday, Wednesday and Thursday. 

    Held each summer for 30 years, the IRS Nationwide Tax Forums are the IRS’s marquee outreach event to the tax professional community. This year, the IRS decided once again to provide these events in a virtual format in an abundance of caution and for the safety of the tax professional community.

    The virtual format allows experts from the IRS and its association partners to educate and update the tax professional community on tax law, cybesecurity, ethics and other topics. Registering and attending these virtual seminars will allow many to fully satisfy their annual continuing education requirements. 

    Tax professionals are encouraged to register now to take advantage of this virtual program. 

    Seminar dates and agenda

    The 2021 Virtual Nationwide Tax Forum will begin on July 20 and continue through Aug. 19 with live-streamed webinars broadcast on Tuesdays, Wednesdays and Thursdays. Registration enables attendees to participate in all of the live webinars earning up to 28 continuing education credits.

    The Nationwide Tax Forum will feature a keynote address from Commissioner Chuck Rettig, a plenary session with tax law and publications updates, and multiple sessions on high-interest topics such as the new Advance Child Tax Credit, virtual currencies, the gig economy, tax professional ethics, advanced cybersecurity and more. Presentations are made by both IRS experts and partner associations.

    This year, the plenary session and an ethics webinar will be offered both in English and Spanish. Additional multilngual resources will be available for attendees in the Virtual Expo.

    Course details, including webinar titles, descriptions and schedule are available now.

    2021 registration and fees

    Tax professionals who register by June 15 at 5 p.m. ET qualify for an Early Bird rate of $240 per person. The standard rate, starting June 16, will be $289.

    Discounts for national association members

    Members of the IRS’s national partner associations listed below qualify for a discount of $10 off the Early Bird rate, but only if they register by June 15. Participating association members should contact their association directly for more information:

    • American Bar Association (ABA) Section of Taxation
    • American Institute of Certified Public Accountants (AICPA)
    • National Association of Enrolled Agents (NAEA)
    • National Association of Tax Professionals (NATP)
    • National Society of Accountants (NSA)
    • National Society of Tax Professionals (NSTP)
    • Low Income Taxpayer Clinics (LITC)
    • Volunteer Income Tax Assistance Program (VITA)

    Virtual Expo and Focus Groups

    Registration at the 2021 Virtual IRS Nationwide Tax Forum includes access to the Virtual Expo. The Virtual Expo provides a great opportunity to visit with exhibitors representing dozens of commercial leaders in the industry, as well as leading national associations and several key IRS offices.

    New this year is the IRS’s multilingual engagement and services booth, which will feature the expanded resources, IRS publications, forms and webpages that are now available in various languages. They will also share some related efforts coming soon. Highlights of the Virtual Expo include:

    • The latest tax products and software
    • The IRS Zone and engagement with representatives from IRS program offices
    • Bonus Q&A sessions in the Speaker's Corner
    • Live webinars from many of our sponsors

    In addition, attendees are invited to share their experiences and discuss innovative ideas directly with the IRS in small, virtual focus groups. Please check the website for the list of topics and qualifying criteria


©2024, Virginia Society of Tax & Accounting Professionals, formerly The Accountants Society of Virginia, 
is a 501(c)6 non-profit organization.

8100 Three Chopt Rd. Ste 226 | Richmond, VA 23229 | Phone: (800) 927-2731 | asv@virginia-accountants.org

Powered by Wild Apricot Membership Software