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

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

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

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

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

Filing and payment relief 

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

This means, for example, that the Nov. 1, 2024, deadline will now apply to: 

• Individual income tax returns and payments normally due on April 15, 2024. 

• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 

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

• Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 2024. 

• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024. 

• Calendar-year tax-exempt organization returns normally due on May 15, 2024. 

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

The Disaster assistance and emergency relief for individuals and businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.  

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief. 

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these kinds of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated. 

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. 

Additional tax relief 

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the prior year (2023). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number – 4783-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details. 

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details. 

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow. 

The IRS may provide additional disaster relief in the future. 

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov. 

Reminder about tax return preparation options

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

• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.
• MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members and some veterans, with no income limit.

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

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

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

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

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

Filing and payment relief 

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

This means, for example, that the Nov. 1, 2024, deadline will now apply to: 

• Individual income tax returns and payments normally due on April 15, 2024. 

• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 

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

• Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 2024. 

• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024. 

• Calendar-year tax-exempt organization returns normally due on May 15, 2024. 

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

The Disaster assistance and emergency relief for individuals and businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.  

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief. 

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these kinds of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated. 

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. 

Additional tax relief 

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the prior year (2023). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number – 4782-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details. 

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details. 

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow. 

The IRS may provide additional disaster relief in the future. 

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov. 

Reminder about tax return preparation options

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

• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.
• MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members and some veterans, with no income limit.

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

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

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

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

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

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

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

Inside This Issue

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

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

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

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

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

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

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

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

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

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

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

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

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4.  Technical Guidance

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

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

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

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

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

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

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

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

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

·       Form 1040 Series 2024v1.0

·       Form 4868 2024v1.0

·       Form 2350 2024v1.0

·       Form 9465 CUv27.0

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

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

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

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

WASHINGTON — The Internal Revenue Service announced today that in many cases payments received by individuals affected by last year’s train derailment in East Palestine, Ohio, are not taxable.

In Notice 2024-46, posted today on IRS.gov, the IRS determined that the Feb. 3, 2023, derailment qualifies as “an event of a catastrophic nature.”  As a result, various payments made to affected individuals by the common carrier that operated the derailed train are “qualified disaster relief payments,” which, by law, are excluded from gross income.  Individual taxpayers qualify for the exclusion only if the expenses covered by the qualified disaster relief payments made by the common carrier are not otherwise paid for by insurance or other reimbursement.

According to the IRS notice, the common carrier issued Forms 1099-MISCto recipients of various payments, some of which are taxable and some of which are not because they are qualified disaster relief payments.

Tax-free qualified disaster relief payments made by the common carrier are:

• One-time $1,000 “inconvenience” payments to affected individuals;
• Relocation expenses and expenses for replacing clothing and personal items;
• Cost of repairing or rehabilitating homes and the surrounding environment;
• Compensation to homeowners who sold their homes after the derailment; and
• Medical expenses.

Taxable payments include:

• Lost wages;
• Access payments to property owners to allow the common carrier access to the train track for remediation and to clean nearby creeks and streams; and
• Payments to businesses.

How to report: Returns should state “East Palestine Derailment Relief”

Any taxpayer who has not yet filed their 2023 return does not need to report qualified disaster relief payments on their tax return, even if reported to them on Form 1099-MISC. However, taxable payments must be reported.

If filing Form 1040 electronically, attach to the Form 1040 a .pdf attachment with filename “EPTDR-East Palestine Train Derailment Relief.”  The attachment should state “East Palestine Train Derailment Relief.”

If filing Form 1040 on paper, state “East Palestine Train Derailment Relief” at the top of Form 1040. Mail the Form 1040 to the address in the Form instructions.

Any taxpayer who has already filed their 2023 tax return and reported their qualified disaster relief payments as taxable can amend their return, report the exclusion and claim any refund of taxes paid, by filing Form 1040-X. The IRS urges anyone who e-filed their 2023 return to e-file their amended return to speed processing. Visit File an amended returnfor details.

If filing Form 1040-X electronically, attach a .pdf attachment with filename “EPTDR-East Palestine Train Derailment Relief.”  The attachment should state “East Palestine Train Derailment Relief.”  Individuals may also state, “East Palestine Train Derailment Relief,” at the beginning of Part III, Explanation of Changes.

If filing Form 1040-X on paper, state, “East Palestine Train Derailment Relief,” at the top of Form 1040-X, as well as at the beginning of Part II, Explanation of Changes. Mail the completed form to the address in the Form instructions.

For more information see East Palestine Train Derailment Relief FAQs.

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.
• 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.

Notice 2024-46announces that the Commissioner of Internal Revenue (Commissioner) has determined that the February 3, 2023, derailment of a freight train operated by a common carrier in East Palestine, Ohio (Derailment), is a qualified disaster for purposes of § 139 of the Internal Revenue Code (Code). As a result of this determination, certain payments made by the common carrier to individuals affected by the Derailment (affected individuals) are excludable from gross income as qualified disaster relief payments under § 139(a).

Notice 2024-46will be published in Internal Revenue Bulletin 2024-26, on June 24, 2024.