WASHINGTON – Continuing an effort to battle tax-related identity theft, the IRS, state tax agencies and the tax industry announced today that the annual campaign to raise awareness among tax professionals about data security will begin next week.

The 2021 campaign begins as the number of data thefts reported by tax professionals to the IRS continued to climb. Through June 30, 2021, there have been 222 data theft reports this year from tax professionals to the IRS, outpacing the rate of 211 in 2020 and 124 in 2019. Each report can impact hundreds of taxpayers and threaten the tax professional’s business.

“Boost Security Immunity: Fighting Against Identity Theft” will urge tax professionals to take basic actions to stem the data theft from their offices. This is the sixth year that the Security Summit partners – the IRS, state tax agencies and the nation’s tax community – have worked to raise awareness about these issues.

“The Security Summit continues to work cooperatively to battle tax-related identity theft, but we need the help of tax professionals in this effort,” said IRS Commissioner Chuck Rettig. “We continue to see instances where tax professionals did not take simple steps that could have protected their clients and their business. Tax professionals must take a shot at basic security steps to protect against relentless efforts by identity thieves to steal data and tax information.”

Identity thieves and fraudsters were especially active last year and this year as they used the COVID-19 pandemic, the nationwide teleworking practices and the economic downturn as fuel for a variety of scams and schemes to steal money and identities.

Tax professionals are key targets of criminal syndicates that are tech-savvy, tax-savvy and well-funded. These scammers either trick or hack their way into tax professionals’ computer systems to access client data. They use stolen data to file fraudulent tax returns that make it more difficult for the IRS and the states to detect because the fraudulent returns use real financial information.

The Security Summit formed in 2015 to take its own shot at fighting against identity theft. The Summit partners made great inroads against tax-related identity theft, dramatically reducing confirmed identity theft returns and saving billions in tax dollars.

During the next five weeks, the Security Summit partners will highlight a series of simple actions that tax professionals can take to better protect client data from theft and help ensure that the progress in tax-related identity theft that started in 2015 continues on its path.

Highlighted recommendations will be to:

More information on these tips will be available every Tuesday over the next five weeks.

This summer series also coincides with the annual IRS Nationwide Tax Forums, which are being held virtually this summer over a five-week period beginning July 20. The 2021 Forums feature three webinars focused on cyber- and information security that will be live streamed as follows:

For more information about the IRS Nationwide Tax Forums and to register visit www.IRSTaxForum.com.

WASHINGTON – The Internal Revenue Service announced today it will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year.

The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

Refunds by direct deposit will begin July 14 and refunds by paper check will begin July 16. The IRS previously issued refunds related to unemployment compensation exclusion in May and June, and it will continue to issue refunds throughout the summer.

To ease the burden on taxpayers, the IRS has been reviewing the Forms 1040 and 1040SR that were filed prior to the law’s enactment to identify those people who are due an adjustment. For taxpayers who overpaid, the IRS will either refund the overpayment, apply it to other outstanding taxes or other federal or state debts owed.

For this round, the IRS identified approximately 4.6 million taxpayers who may be due an adjustment. Of that number, approximately 4 million taxpayers are expected to receive a refund. The refund average is $1,265, which means some will receive more and some will receive less.

Most taxpayers need not take any action and there is no need to call the IRS. However, if, as a result of the excluded unemployment compensation, taxpayers are now eligible for deductions or credits not claimed on the original return, they should file a Form 1040-X, Amended U.S. Individual Income Tax Return.

Taxpayers should file an amended return if they:

Taxpayers do not need to file an amended return if they:

Taxpayers will generally receive letters from the IRS 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.

WASHINGTON —The Internal Revenue Service has launched a new Spanish-language version of its online tool, Child Tax Credit Eligibility Assistant, designed to help families determine whether they qualify for the Child Tax Credit and the special monthly advance payments of the credit, due to begin on July 15.

Available exclusively on IRS.gov, the new Spanish version of the tool, like its English-language counterpart, is interactive and easy to use. By answering a series of questions about themselves and their family members, a parent or other family member can quickly determine whether they qualify for the credit.

Though anyone can use this tool, it may be particularly useful to families who don’t normally file a federal tax return and have not yet filed either a 2019 or 2020 return. Often, these are people who receive little or no income, including those experiencing homelessness, low income households, and other underserved groups. Using this tool can help them decide whether they should take the next step and either register for the Child Tax Credit payments using another IRS tool, the Non-filer Sign-up Tool, or file a regular tax return using the IRS Free File system.

To help people understand and receive this benefit, the IRS has developed materials in several languages and additional multi-lingual resources will roll out in coming weeks and months. All tools and materials, in English and other languages, are posted on  a special Advance Child Tax Credit 2021 page at IRS.gov/childtaxcredit2021.

Multi-lingual resources already available include:

Besides the Child Tax Credit, the IRS has a variety of tax-related tools and resources available in various languages. To find out more, visit IRS.gov/help/languages.

Community partners can help

The IRS urges community groups, especially those who serve non-English speakers, to help share this critical information about the Advance Child Tax Credit as well as other important benefits. This includes nonprofits, associations, education organizations and anyone else with connections to people with children. Among other things, The IRS is providing these groups with information that can be easily shared through social media, email and other methods.

Watch out for scams

The IRS urges everyone, especially those who speak languages other than English, to be on the lookout for scams related to both Advance Child Tax Credit payments and Economic Impact Payments. In particular, scammers often target non-English speakers and underserved communities. The IRS emphasized that the only way to get either of these benefits is by either filing a tax return with the IRS or registering online through the Non-filer Sign-up Tool, exclusively on IRS.gov. Any other option is a scam.

Watch out for scams using email, phone calls or texts related to the payments. Remember, the IRS never sends unsolicited electronic communications asking anyone to open attachments or visit a non-governmental web site.

More about the Child Tax Credit Eligibility Assistant

The Child Tax Credit Eligibility Assistant does not request any personally-identifiable information (PII) for any family member. For that reason, its results are not an official determination by the IRS. Though the results are reliable, if the questions are answered accurately, they should be considered preliminary. Neither the answers supplied by the user, nor the results, are retained by the IRS.

Non-filer Sign-Up Tool

If the Child Tax Credit Eligibility Assistant indicates that a family qualifies for the credit, the next step is to either register with the IRS or file a return.  For families who don’t normally need to file a return, The online Non-filer Sign-Up Tool is the easiest way to register for the advance payments.

This tool, an update of last year’s IRS Economic Impact Payment Non-filers tool, is also designed to help eligible individuals who don’t normally file tax returns register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks). In addition, it can help them claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed.

Developed in partnership with Intuit and delivered through the Free File Alliance, the tool enables them to provide the IRS with basic information, such as their name, address, and social security numbers, as well as  information about their qualifying children age 17 and under and their other dependents. It also enables them to provide their bank account information, so the IRS can quickly and easily deposit the payments directly into their checking or savings account.

The Non-filer Sign-Up tool should not be used by anyone who has already filed a 2019 or 2020 federal income tax return, or plans to do so.

Free File; a better option for some

Though the Non-filer Sign-up Tool is the easiest way to register for Advance Child Tax Credit payments, it may not be the best option for all families. That’s because many families also qualify for the Earned Income Tax Credit and other benefits for low-and moderate-income people. For them, a better option is filing a regular tax return using the Free File system, available only on IRS.gov.

About the Advance Child Tax Credit

The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a family’s 2020 tax return, including those who use the Non-filer Sign-up Tool.  If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020.

The payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17.

To make sure families have easy access to their money, the IRS will issue these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment. The dates for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15.

For more information, visit IRS.gov/childtaxcredit2021, or read FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments.

July 13 is the last day to register to attend keynote address by IRS Commissioner Chuck Rettig

IRS YouTube Videos:
2021 IRS Nationwide Tax Forum – English

WASHINGTON — This Tuesday, July 13, is the last day for tax professionals to register to attend the 2021 IRS Virtual Nationwide Tax Forum and have access to all 30 webinars, including IRS Commissioner Chuck Rettig’s keynote address on the first day of the forum.

The 2021 Tax Forum is being held over a five-week period from July 20 through Aug. 19. Webinars will be live-streamed on Tuesday, Wednesday and Thursday each week. To guarantee access to a webinar, registration must be completed a minimum of seven days in advance. Participants who register after July 13 will not have access to the full lineup of webinars.

Webinars are scheduled for 11 a.m. and 2 p.m. EDT each Tuesday, Wednesday and Thursday. Participants are encouraged to view the Forum schedule and course descriptions to plan their experience.

For more information and to register, visit www.irstaxforum.com.

Tax Forum Virtual Expo

Included with the registration, attendees may also visit the Forum’s Virtual Expo with dozens of exhibitors representing tax and business services, IRS national association partners and several key IRS offices and initiatives in the “IRS Zone.” Hours for the live Expo are Noon - 2 p.m. and 3- 5 p.m. EDT every Tuesday, Wednesday, and Thursday. However, registrants will have access to the Expo 24 hours per day from July 20 through Aug. 20.

Focus groups

As a special feature of the 2021 Forum, the IRS invites attendees to participate in one or more virtual focus groups. Focus groups are arranged around the following topics:

Continuing education

Attendance at any of the 2021 Nationwide Tax Forum webinars qualifies as continuing education (CE) for enrolled agents, certified public accountants, Annual Filing Season Program participants, California Tax Education Council (CTEC) participants and Certified Financial Planners (CFP).

Note: With two seminars this year presented in both English and Spanish, participants can earn up to 28 continuing education credits.

Visit the CE and CFP Certification page for more information.

Registration information
For more information and to register online, visit www.irstaxforum.com.

Notice 2021-38 provides guidance under § 432(k) of the Code to sponsors of multiemployer defined benefit pension plans that are required to reinstate certain previously suspended benefits as a condition of receiving special financial assistance from the Pension Benefit Guaranty Corporation under § 9704 of the American Rescue Plan Act of 2021. The notice also provides guidance on whether make-up payments with respect to previously suspended benefits are eligible to be rolled over to another eligible retirement plan under § 402(c), and the extent to which any special financial assistance received by the plan is not taken into account in determining contributions required under § 431. 

WASHINGTON — The Internal Revenue Service today provided guidance for multiemployer qualified retirement plans that receive special financial assistance from the Pension Benefit Guaranty Corporation (PBGC) and for participants and beneficiaries in those plans.   

Notice 2021-38 provides guidance under provisions of the American Rescue Plan Act of 2021 regarding special financial assistance paid by the PBGC to eligible multiemployer defined benefit pension plans that are financially at risk. 

The notice provides direction for multiemployer plans, and specifically addresses three important areas regarding: 

• The reinstatement of previously suspended pension benefits, along with make-up payments, as a condition that eligible multiemployer plans must meet if they receive special financial assistance. 

• The individual income tax treatment of these make-up payments. 

• How a plan that receives special financial assistance must treat the plan’s special financial assistance account for purposes of the minimum funding requirements for multiemployer defined benefit plans 

PBGC guidance on the application process for special financial assistance can be found at www.PBGC.gov/arp-sfa

WASHINGTON — The IRS web site provides millions of visitors with the answers they need to fit their busy summer schedules. On IRS.gov, waiting for service is not a problem and no appointment is needed to use the online tools.

Many taxpayers who requested an extension to Oct. 15 or missed the May 17 deadline can still prepare and e-file tax returns for free with IRS Free File. Here are some great reasons for taxpayers to add IRS.gov to their ‘internet favorites’ list this summer.

Tax information when it’s needed

IRS.gov is always there. Taxpayers can view, download or print tax products right away. They can also do the following:

Find answers in more languages than ever

Many pages on IRS.gov are now available in Spanish, Vietnamese, Russian, Korean, Haitian Creole and Chinese − Simplified and Traditional. Earlier this year, the agency posted a Spanish language version of Form 1040 PDF and the related instructions PDF to IRS.gov.

Help for people who use assistive technology

At the online Alternative Media Center (AMC), taxpayers will find a variety of accessible products like screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications that can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print. Please note that every product is not available in all formats. For example, tax forms are not available as HTML. To request paper copies of tax forms, instructions or publications in Braille or large print, call the tax form telephone number at 800-829-3676. Or if a taxpayer prefers to receive correspondence such as letters or notices from the IRS in an alternative format they can call 800-829-1040.

Keep current with IRS Tax Tips

Summer activities like homebuying or working a part-time job often affect taxes. Additionally, while many summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return to get a refund for taxes withheld early next year. Subscribe to IRS Tax Tips to get easy-to-read articles by e-mail from the IRS that not only cover summer topics but also those topics which are good to know throughout the entire year. Tax Tips are brief, to the point and cover a wide range of subjects like common errors to avoid when you prepare your tax return and the latest guidance on current tax deductions and credits.

Partner and promotional materials for Coronavirus Tax Relief

Discover ready-to-use articles, e-posters, videos and much more on IRS.gov about Economic Impact Payments, the Recovery Rebate Credit, and the Advance Child Tax Credit. The IRS has placed a special emphasis on partnering with organizations that work with groups focusing on veterans, homeless and low-income taxpayers as well as non-English speaking audiences to share information. In all, the IRS has worked with thousands of partners across the country reaching organizations representing hundreds of millions of taxpayers. The IRS asks community groups, non-profits, associations, education organizations and anyone else with connections to people with children to share the critical information about the advance child tax credit as well as other important benefits.

Adjust withholding now to avoid tax surprises next year

Summer is a great time for taxpayers to check their withholding and avoid a tax surprise next filing season. Life events like marriage, divorce, having a child, or a change in income can all affect taxes. The IRS Tax Withholding Estimator on IRS.gov helps employees assess their income tax, credits, adjustments and deductions and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate. Taxpayers should remember that, if needed, they should submit their new W-4 to their employer, not the IRS.

Today, the IRS published the latest executive column “A Closer Look,” which features Karen Michaels, Director, Accounts Management, Wage & Investment, discussing how the IRS continuously strives to provide the assistance taxpayers need to properly file and pay their taxes while also enforcing the tax laws to maintain fairness for all. “We understand that complex tax issues and the pandemic have many taxpayers confused and looking for help.  We are committed to providing the service they need to help them – on the phone or through whatever channel they prefer – and we will utilize all allocated funding to improve taxpayer communications with our agency,” said Michaels. 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.

WASHINGTON — The Internal Revenue Service and partners in non-profit organizations, churches, community groups and others will host events in 12 cities this weekend to help people who don’t normally file a federal tax return to register for the monthly Advance Child Tax Credit (AdvCTC) payments.

The special events by IRS and partner groups to help people quickly file income tax returns and register for the advance payments will take place July 9-10, 2021. Events will be held in Atlanta, New York, Detroit, Houston, Los Angeles, Las Vegas, Miami, Milwaukee, Philadelphia, Phoenix, St. Louis and Washington, DC/Maryland. 

“This is part of a wider effort by the IRS to reach as many people as possible who don’t file a tax return but may be eligible for the Child Tax Credit and Economic Impact Payments,” said Ken Corbin, IRS Wage and Investment Commissioner and the agency’s Chief Taxpayer Experience Officer. “We encourage people to share this information widely and encourage those who need help to visit these locations.” 

With the help of a new Non-filer Sign-up Tool on the IRS website, volunteers and IRS employees will assist eligible individuals and families get these important tax credits and benefits. This tool, an update of last year’s IRS Non-Filers tool, is also designed to help individuals register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks) and claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed. Individuals do not need to have children to attend these events and sign up for Economic Impact Payments. 

People can check their eligibility for the AdvCTC payments by using the new Advance Child Tax Credit Eligibility Assistant. 

For this weekend’s events, to make the sign-up process go quickly and smoothly, people are encouraged to have the following information when they come to one of these events: (1) Social Security numbers for their children, (2) Social Security numbers or Tax Identification Numbers for themselves and their spouse, (3) a reliable mailing address, (4) an e-mail address, and (5) their bank account information if they want to receive their payment by direct deposit. 

The IRS is also planning to do additional events in the future as well as work with partners inside and outside the tax community to share information as widely as possible to people who may be eligible for Child Tax Credits and the Economic Impact Payments. This is part of a wider effort to raise awareness of the expanded Child Tax Credit, the IRS also encourages its partners to use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up to receive the AdvCTC.

Some tax credits, such as the Child Tax Credit (CTC), are "refundable," meaning that even if taxpayers don’t owe income tax, the IRS will issue them a refund if they’re eligible; but they must file a tax return or register with the new Non-filer Sign-up Tool to receive it. Some people who haven’t filed a 2020 tax return yet are also eligible for the $1,400 per person Economic Impact Payments and the Recovery Rebate Credit. 

The first monthly payments of the expanded and newly-advanceable CTC from the American Rescue Plan will be made starting July 15. Most families will begin receiving monthly payments without any additional action. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 to 17. 

People who need to file a 2020 federal income tax return, but are unable to attend one of these events, may be able to prepare and file their own federal income tax online using IRS Free File if their income is $72,000 or less. 

People who don’t need to file a 2020 federal tax return can also use the Non-filer Sign-up Tool to register to receive the advance CTC payments, the Third Round Economic Impact Payment, and the Recovery Rebate Credit.

The IRS encourages people to request payments via direct deposit, which is faster and more secure than other payment methods. People who don't have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC's BankFind tool to locate an FDIC-insured bank. 

Finally, BankOn, American Bankers Association, Independent Community Bankers of America and National Credit Union Administration have lists of banks and credit unions that can open an account online. Veterans can see the Veterans Benefits Banking Program for financial services at participating banks. 

About the advance Child Tax Credit

The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a family’s 2020 tax return, including those who use the Non-filer Sign-up Tool. If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020.

The payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17.

To make sure families have easy access to their money, the IRS will issue these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment. The dates for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15. 

To learn more about advance CTC payments, visit IRS.gov/childtaxcredit2021 or see FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments.

WASHINGTON — The Internal Revenue Service today posted answers to questions that certain transportation companies may have regarding Treasury grants and related taxes.

The Coronavirus Economic Relief for Transportation Services (CERTS) Act of the Consolidated Appropriations Act of 2021 authorizes the Department of the Treasury to provide grants to  transportation service providers--including eligible motorcoach companies, school bus companies, and passenger vessel companies-- that experienced annual revenue losses of 25 percent or more as a result of COVID-19.

These companies must generally prioritize the use of the grants for payroll costs, though grants may be used for certain operating expenses (including the acquisition of services and equipment needed to protect workers and customers from COVID-19) and the repayment of debt accrued to maintain payroll.  Funds not used for eligible activities within one year of receipt of the grant must be returned to the Treasury Department.

The FAQs posted today answer two important questions:

Additional information about tax relief for businesses affected by the COVID-19 can be found on IRS.gov.