WASHINGTON — Victims of Hurricane Delta that began on Oct. 6 now have until Feb. 16, 2021 to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Acadia, Calcasieu, Cameron, Jefferson Davis and Vermilion parishes in Louisiana, but taxpayers in localities qualifying for individual assistance added later to the disaster area, elsewhere in the state and in neighboring states, will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Oct. 6, 2020. As a result, affected individuals and businesses will have until Feb. 16, 2021, to file returns and pay any taxes that were originally due during this period.

This means individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, will now have until Feb. 16, 2021, to file. For any of these localities that were also impacted by Hurricane Laura, this also means an additional extension beyond the Dec. 31 deadline announced in August. The IRS noted, however, that because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief.

The Feb. 16, 2021 deadline also applies to quarterly estimated income tax payments due on Jan. 15, 2021, and the quarterly payroll and excise tax returns normally due on Nov. 2, 2020 and Feb. 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020. Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020.    

In addition, penalties on payroll and excise tax deposits due on or after Oct. 6 and before Oct. 21, will be abated as long as the deposits are made by Oct. 21, 2020.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within 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.

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 2020 return normally filed next year), or the return for the prior year (2019). Be sure to write the FEMA declaration number – 4570 − for Hurricane Delta in Louisiana on any return claiming a loss. See Publication 547 for details.

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

WASHINGTON — The Internal Revenue Service is combating fraud by once again joining organizations around the world to highlight the third annual International Charity Fraud Awareness Week, Oct. 19-23.

International Charity Fraud Awareness Week (ICFAW) brings together everyone involved in the charity and not-for-profit sectors to raise awareness of and share good practices for tackling fraud and cybercrime. This award-winning campaign is led by a coalition of over 40 charities, regulators, law enforcement organizations, representative and umbrella bodies, and other not-for-profit stakeholders.

The IRS is partnering with ICFAW as part of its ongoing commitment to fight fraud against charities, businesses and individuals.

All charities are susceptible to fraud and can be targeted. Those providing services and supporting local communities may be especially vulnerable to fraudsters attempting to exploit the current pandemic or weather-related disasters. More than ever, charities need to be fraud aware and take steps to protect their money, people and assets from harm.

“Especially during these uncertain times, it’s vital for everyone to remain vigilant against fraud, identity theft, scams and schemes,” said IRS Director of Exempt Organizations and Government Entities, Margaret Von Lienen. “Cybercriminals are always on the lookout for new opportunities, and COVID-19 is just one more chance to take advantage of unsuspecting individuals and charities. This campaign provides resources that can help protect charities and other organizations.”

This year’s campaign has three core messages: be fraud aware, take time to check, and keep your charity safe.

The ICFAW Charity Fraud Hub features helpful documents, free tutorials, videos, case studies and on-demand webinars, including, ‘COVID-19 and charity fraud: what to watch out for and how to stay safe.’ Charities and anyone else interested in fighting fraud can also take part in the ICFAW social media campaign using #charityfraudout.

Those encouraged to participate in the week’s activities include:

In addition to crooks who target charities, those who create fake charities are a problem for the non-profit community. In fact, fake charities are once again part of the IRS’ “Dirty Dozen” tax scams for 2020. Taxpayers can find legitimate and qualified charities with the Tax Exempt Organization Search tool on IRS.gov.

Visit the Fraud Advisory Panel website to learn more about ICFAW and how to get involved.

Revenue Procedure 2020-46 modifies and updates Rev. Proc. 2016-47, 2016-37 I.R.B. 346, which provides a list of permissible reasons for a taxpayer to self-certify eligibility for a waiver of the 60-day rollover requirement under certain eligible retirement plans. This Revenue Procedure modifies that list by adding a new reason: a distribution was made to a state unclaimed property fund.

Revenue Ruling 2020-24 clarifies the federal income tax withholding and reporting obligations that apply for the year a payment is made from a qualified plan to a state unclaimed property fund.

Revenue Ruling 2020-22 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

 

WILL BE IN IRB:  2020-45              DATED:  November 2, 2020

Revenue Procedure 20-43 provides the inflation-adjusted maximum dollar amount that may be made newly available for excepted benefit health reimbursement arrangements or other account-based group health plans for plan years beginning after December 31, 2020, and before January 1, 2022. Due to indexing methodology requiring rounding down to the nearest $50 increment, this amount remains $1,800 for the 2021 plan year.

 

WILL BE IN IRB: 2020-45   DATED:  11/02/2020

Notice 2020-77 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code.  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), as reflected by the application of § 430(h)(2)(C)(iv). 

Tax pros: 18 new self-study seminars available for continuing education credit

WASHINGTON — The Internal Revenue Service today announced 18 new seminars from the 2020 Nationwide Tax Forums are now available on IRS Nationwide Tax Forums Online. The cost is $29 per seminar.

These self-study seminars provide information to participants using interactive videos, PowerPoint slides and audio transcripts.

These and all other previously recorded sessions from prior IRS Nationwide Tax Forums will be available for $29.

2020 Nationwide Tax Forums Online course listing

The following is the comprehensive list of the new 2020 courses available: 

Advocating for Immigrant Taxpayers

Advocating for Taxpayers with Collection Information Statements

Be Tax Ready – Understanding Eligibility Rules for EITC, AOTC, CTC and Head of Household Filing Status

Bipartisan Budget Act of 2015’s Centralized Partnership Audit Regime (The)

Charities & Tax-Exempt Organizations Update

Créditos Reembolsables (In Spanish)

Diligence in Practice before the IRS: Record-Keeping

Federal Ethics for the Tax Professionals: Office of Professional Responsibility (OPR) and Circular 230

Impact of Non-filing and Non-payment

IRS Key Enforcement Issues

Keys to Mastering Due Diligence Requirements and Audits

Keynote Address

Preparation of Form 1040-NR, U.S. Nonresident Alien Income Tax Return

Retirement Plan Distributions, Loans and More

Tax Changes from a Forms Perspective

Tax Cuts and Jobs Act (TCJA) Update: Opportunity Zones

Tax Cuts and Jobs Act (TCJA) Update: Qualified Business Income Deduction

Update from the IRS Independent Office of Appeals

These 18 courses are available in addition to the more than 60 previously recorded sessions from prior years still available for credit or to audit.

Continuing education credits information

The IRS Nationwide Tax Forums Online is registered with the IRS Return Preparer Office and the National Association of State Boards of Accountancy as a qualified sponsor of continuing education. For a fee, CPAs, Enrolled Agents and Annual Filing Season Program participants taking NTFO seminars can earn continuing education credits.

To earn credit, users must create an account, answer review questions throughout the seminar and pass short tests at the end of the seminars.

NTFO seminars can also be audited for free. Individuals who choose to audit seminars will not have access to the review questions or final examination. They will not receive credit for the seminars. 

For more information please visit www.irstaxforumsonline.com. 

Revenue Procedure 2020-44; to facilitate the market’s transition away from the London Interbank Offered Rate and other interbank offered rates, this revenue procedure mitigates certain potential tax consequences of adopting fallback language recommended by the Alternative Reference Rates Committee (“ARRC”) and the International Swaps and Derivatives Association (“ISDA”).  The revenue procedure generally provides that modifying certain contracts to incorporate the ARRC’s and ISDA’s recommended fallback language will not result in a realization event.  In addition, the revenue procedure generally provides that such modifications will not result in legging out of an integrated transaction or in the disposition or termination of either leg of a hedging transaction.

Revenue Procedure 2020-44 will appear in IRB 2020-45, Nov. 2, 2020.