WASHINGTON —The Internal Revenue Service today reminded individual retirement arrangement (IRA) owners age 70½ or over that they can transfer up to $100,000 to charity tax-free each year.

These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner’s required minimum distribution (RMD) for the year.

How to set up a QCD

Any IRA owner who wishes to make a QCD for 2023 should contact their IRA trustee soon so the trustee will have time to complete the transaction before the end of the year.

Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they’re paid directly from the IRA to an eligible charitable organization.

QCDs must be made directly by the trustee of the IRA to the charity. An IRA distribution, such as an electronic payment made directly to the IRA owner, does not count as a QCD. Likewise, a check made payable to the IRA owner is not a QCD.

Each year, an IRA owner age 70½ or over when the distribution is made can exclude from gross income up to $100,000 of these QCDs. For a married couple, if both spouses are age 70½ or over when the distributions are made and both have IRAs, each spouse can exclude up to $100,000 for a total of up to $200,000 per year.

The QCD option is available regardless of whether an eligible IRA owner itemizes deductions on Schedule A. Transferred amounts are not taxable, and no deduction is available for the transfer.

Report correctly

A 2023 QCD must be reported on the 2023 federal income tax return, normally filed during the 2024 tax filing season.

In early 2024, the IRA owner will receive Form 1099-R from their IRA trustee that shows any IRA distributions made during calendar year 2023, including both regular distributions and QCDs. The total distribution is shown in Box 1 on that form. There is no special code for a QCD.

Like other IRA distributions, QCDs are reported on Line 4 of Form 1040 or Form 1040-SR. If part or all of an IRA distribution is a QCD, enter the total amount of the IRA distribution on Line 4a. This is the amount shown in Box 1 on Form 1099-R.

Then, if the full amount of the distribution is a QCD, enter 0 on Line 4b. If only part of it is a QCD, the remaining taxable portion is normally entered on Line 4b.

Either way, be sure to enter “QCD” next to Line 4b. Further details will be in the instructions to the 2023 Form 1040.

Get a receipt

QCDs are not deductible as charitable contributions on Schedule A. But, as with deductible contributions, the donor must get a written acknowledgement of their contribution from the charitable organization before filing their return.

In general, the acknowledgement must state the date and amount of the contribution and indicate whether the donor received anything of value in return. For details, see the Acknowledgement section in Publication 526, Charitable Contributions.

For more information about IRA distributions and QCDs, see Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that provide guidance under a new section of the law that disallows deductions for certain charitable conservation contributions by partnerships and other pass-through entities. Syndicated conservation easements have been included in the IRS’ annual list of “Dirty Dozen” tax schemes for many years.

The SECURE 2.0 Act of 2022 added new subsections to the part of the tax law that provides rules for deductions for charitable contributions under Internal Revenue Code section 170.

"The IRS is focusing its new compliance efforts on those who evade taxes through complex partnership structures and overvalued conservation easement contributions. The regulations issued today will stem the tide of certain syndicated conservation easements that are nothing more than retail tax shelters, while protecting the integrity of legitimate conservation easements and helping law-abiding taxpayers more easily meet their obligations,” said IRS Commissioner Danny Werfel.

Generally, these regulations affect partnerships and S corporations that make conservation contributions and upper-tier partnerships, upper-tier S corporations, partners and S corporation shareholders that are allocated a portion of these contributions. The regulations provide definitions, explanations, computational guidance and examples of the new law, which disallows deductions if the amount of the contribution is more than two and a half times the sum of each partner’s or shareholder’s relevant basis in the partnership or S corporation.

The proposed regulations also provide guidance on the statutory exceptions to the new disallowance rule, particularly the exception for family partnerships and S corporations and the exception for contributions made outside a three-year holding period. The proposed regulations also provide updates concerning substantiation and reporting rules for certain charitable contributions.

The commitment to making sure that partnerships, other pass-through entities and their owners comply with the tax law is a significant part of the agency’s strategic plan.

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2024.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:

• 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
• 5.5% for the portion of a corporate overpayment exceeding $10,000.
• 8% for underpayments (taxes owed but not fully paid).
• 10% 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 three percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five 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 of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during October 2023. See the revenue ruling for details.

Revenue Ruling 2023-22 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2023-49, dated Dec. 4, 2023.

Revenue Ruling 2023-22 provides the interest rates: underpayments and overpayments, determined under Section 6621 of the code for the calendar quarter beginning January 1, 2024. They will be 8 percent for overpayments (7 percent in the case of a corporation), 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 5.5 percent.

Revenue Ruling 2023-22 will be in IRB: IRB 2023-49, dated December 4, 2023.

1.  8th annual National Tax Security Awareness week begins Nov. 27

The Internal Revenue Service, along with its Security Summit partners in state tax agencies and the nation's tax industry, today announced a special week focusing taxpayer and tax professional awareness on protecting sensitive financial information against identity thieves as the holidays and the 2024 tax season approach.

The 8th annual National Tax Security Awareness Week takes place this year from Nov. 27 – Dec. 1, marking an annual campaign by the Security Summit, a coalition of the IRS, state tax administrators, tax software companies, the tax professional community and others in the larger tax community.

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2.  IRS Webinar on Written Information Security Plan scheduled for Nov. 30

The IRS in partnership with the Security Summit will hold a webinar entitled “Developing a Written Information Security Plan, (WISP), on Thursday, November 30, 2023 at 10:30 a.m. Eastern. The webinar will last 75 minutes including Q&A. Register here.

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3.  Get prepared for the upcoming filing season

With the nation's tax season rapidly approaching, remind your clients about the important steps they can take now to help "get ready" to file their 2023 federal tax return, such as:
• Filing through IRS online account.
• Gathering and updating tax records.
• Withholding enough tax from paychecks.
• Establishing direct deposit for refunds.

This is the first in a series of special IRS "Get Ready" reminders to help taxpayers prepare for the upcoming tax filing season in early 2024.

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4.  Tax pros: Become an authorized IRS e-file provider

To file your clients’ federal tax returns electronically, you’ll need to become an authorized e-file provider. The application process takes only a few steps, which are outlined on IRS.gov.

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5.  ITIN holders can register for online access

As a reminder, taxpayers with an Individual Taxpayer Identification Number (ITIN) can access their IRS online account, which provides balance due, payment history, payment plans, tax records and more.

ITIN holders will first verify their identity through a one-time video chat process. During this verification, they will provide documentation proving their identity, address and ITIN. Once verified, taxpayers can access many IRS services including Online Account, Get Transcript Online, Online Payment Agreement, Get an Identity Protection PIN (IP PIN) and other available applications.

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6.  IRS reminds eligible 2020 and 2021 non-filers to claim Recovery Rebate Credit before time runs out

The Internal Revenue Service is reminding those who may be entitled to the Recovery Rebate Credit to file a tax return and claim their money before it’s too late.

The vast majority of those eligible for Economic Impact Payments related to Coronavirus tax relief have already received them or claimed them through the Recovery Rebate Credit. The deadlines to file a return and claim the 2020 and 2021 credits are May 17, 2024, and April 15, 2025, respectively.

The Recovery Rebate Credit is a refundable credit for those who missed out on one or more Economic Impact Payments.

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7.  Eligible IRA owners may transfer up to $100,000 in tax-free gifts to charity

Tax pros: Remember individual retirement arrangement (IRA) owners age 70½ or older can transfer up to $100,000 to charity tax-free each year. These transfers, known as qualified charitable distributions (QCDs), offer eligible older Americans a great way to easily give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.

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8.  Treasury, IRS propose regulations implementing disallowance of deductions for certain conservation easement contributions

The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that provide guidance under a new section of the law that disallows deductions for certain charitable conservation contributions by partnerships and other pass-through entities. Syndicated conservation easements have been included in the IRS' annual list of Dirty Dozen tax schemes for many years.

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9.  Taxpayers urged to protect against scams, schemes during International Fraud Awareness Week

As part of ongoing efforts to protect taxpayers, the IRS reminds people that International Fraud Awareness Week serves as an important time to protect personal and financial information from scam artists and tax schemes. International Fraud Awareness Week, which runs through Nov. 18, is an effort to minimize the impact of fraud through awareness and education. During the special week, the IRS – including the agency's Office of Fraud Enforcement and IRS Criminal Investigation – continue working to raise awareness to fraud and scams affecting taxpayers across the country.

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10. Energy efficient commercial buildings deductions available for those who qualify

Building owners who place in service energy efficient commercial building property or energy efficient building retrofit property may be able to claim a tax deduction. Find out more about eligibility and qualifications in the Energy Efficient Commercial Buildings Deduction e-poster that you can share with your clients. Visit the Energy Efficient Commercial Buildings Deduction page on IRS.gov for more information.

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11.  News from the Justice Department’s Tax Division

Crystal Ojeda of Houston and her tax return preparation business, Money Market Tax Company LLC, have been permanently enjoined from preparing federal tax returns for others, among other related prohibitions. The complaint alleges that Ojeda prepared more than 10,000 federal income tax returns during 2018-2023, significantly overstating her customers’ tax refund amounts. The complaint also alleges that for some customers’ returns, Ojeda falsely claimed residential energy credits to which her customers were not entitled. Ojeda allegedly caused the United States harm of an estimated $4.8 million in tax revenue just from the years 2020 to 2022, and millions more from earlier years.

Lamar “Cory” Thompson of Texas, formerly of Chicago, was sentenced to 30 months in prison for mail fraud arising out of a scheme to fraudulently obtain tax refunds from the IRS. In total, Thompson attempted to obtain approximately $1.5 million in fraudulent tax refunds from the IRS. In addition to the prison sentence, Thompson has been ordered to serve three years of supervised release and to pay $908,727restitution to the United States.

Vervia Watts of Illinois pleaded guilty to aiding and assisting in the preparation of false income tax returns. According to court documents and statements made in court, from January 2017 through June 2023, Watts prepared and filed individual income tax returns for her clients, intentionally reporting false education expenses and business income. Watts received at least $300 for each return she prepared, which, in total, claimed more than $1.5 million in fraudulent refunds. Watts is scheduled to be sentenced on Feb. 14, 2024, and faces a maximum penalty of three years in prison, and a period of supervised release, restitution and monetary penalties.

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12.  Technical Guidance

Notice 2023-76 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for November 2023 used under section 417(e)(3)(D), the 24-month average segment rates applicable for November 2023, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

Revenue Procedure 2023-34 sets forth inflation-adjusted items for 2024 for various Code provisions as in effect on Nov. 9, 2023. The inflation adjusted items for the Code sections set forth in section 3 of this revenue procedure are generally determined by reference to section 1(f) of the Code.

Revenue Ruling 2023-21 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.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations updating rules for the investment tax credit under section 48 (ITC) that have been unchanged since 1987. The proposed rules update the types of energy properties eligible for the section 48 ITC, reflecting changes in the energy industry, technological advances, and updates from the Inflation Reduction Act of 2022 (IRA).

Energy industry participants will appreciate that the proposed regulations provide definitions of energy properties for which the ITC was available before the IRA. These include, but are not limited to, solar process heat, fiber-optic solar property, combined heat and power system property, qualified fuel cell property, and qualified microturbine property.

These proposed regulations also address technologies that were added to the ITC as energy property by the IRA, including electrochromic glass, energy storage technology, microgrid controllers, and biogas property. Importantly, the IRA added new provisions to the ITC to allow smaller projects to include the cost of certain types of interconnection property in their credit amount.

Additionally, the proposed regulations provide general rules for the ITC including the application of the “80/20” Rule to retrofitted energy property, dual use property, and issues related to multiple owners of an energy property.

Additional information about guidance issued under the IRA is available at IRS.gov

Clean vehicle sellers and dealers should register with Energy Credits Online; register by Dec. 1, 2023 to ensure Jan. 1 availability

WASHINGTON — The Internal Revenue Service reminded dealers and sellers of clean vehicles to register their organizations immediately on the Energy Credits Online tool. The IRS is strongly urging sellers of clean vehicles to register by Dec. 1, 2023, if they want to be in a position to receive advance payments starting Jan. 1, 2024.

Energy Credits Online or IRS ECO, is a free electronic service that is secure, accurate and requires no special software. Though available to any business of any size, IRS Energy Credit Online may be especially helpful to any small business that currently sells clean vehicles.

Clean vehicle sellers should begin the online enrollment process immediately. The IRS encourages any dealer or seller to register using Energy Credits Online by Dec. 1, 2023 to share in its benefits and ensure that by Jan. 1, 2024, dealers and sellers are ready to submit time-of-sale reports and receive advance payments. The tool will generate a time-of-sale report the taxpayer will use when filing their federal tax return to claim or report the credit.

Beginning in 2024, clean vehicle sellers and licensed dealers must use the tool for their customers to successfully claim or transfer the new or previously owned clean vehicle credit for vehicles placed in service Jan.1, 2024, or later.

To participate and take advantage of the new and used clean vehicle credits available to taxpayers, a dealer must register through the IRS Energy Credits Online tool.  

Initially, only one individual representative of the dealer or seller can complete the registration through IRS Energy Credits Online: That representative must be currently authorized to legally bind the dealer or seller. Future enhancements of the tool will allow dealers and sellers to authorize more than one employee to submit time-of-sale reports and advance payment requests. Authorizing additional employees is an easy update for registered dealers.

More information about clean vehicle credits and tax benefits from the Inflation Reduction Act is available on IRS.gov.

Issue Number:    IR-2023-207

WASHINGTON — The Internal Revenue Service Advisory Council (IRSAC) today issued its annual report for 2023, including recommendations to the IRS on new and continuing issues in tax administration. 

The 2023 Public Report includes recommendations on 23 issues covering a broad range of topics including: 

·         Section 302, Escrow and Certification Procedure

·         Timely Obtaining Employer ID Numbers (EINs) to Comply with the Corporate Transparency Act Requirements

·         Form 1099-K Reporting

·         Self-Correction Guidance for Employee Plans

·         Forms Modernization 

The IRSAC serves as a federal advisory committee to the IRS commissioner that provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members offer constructive observations regarding current or proposed IRS policies, programs and procedures. 

The IRSAC is administered under the Federal Advisory Committee Act by the Office of National Public Liaison, part of IRS Communications and Liaison, and draws its members from the taxpaying public, the tax professional community, representatives of the low-income community, small and large businesses, tax-exempt and government entities, the payroll industry and academia. Five subgroups report to the parent council: 

·         Information Reporting

·         Large Business & International

·         Small Business/Self-Employed

·         Tax Exempt/Government Entities

·         Wage & Investment 

Commissioner Danny Werfel and IRS executives thanked 11 members of the council whose terms end this year: 

• Martin Armstrong – Armstrong served as Chair of IRSAC.
• Sharon Brown – Brown served on the Tax Exempt/Government Entities Subgroup.
• Jeremiah Coder – Coder served on the Large Business & International Subgroup.
• Steven Klitzner – Klitzner served as Chair of the Small Business/Self Employed Subgroup.
• Charles Parr – Parr served on the Large Business & International Subgroup.
• Luis Parra – Parra served on the Wage & Investment Subgroup.
• Phillip Poirier – Poirier served as Chair of the Wage & Investment Subgroup.
• Seth Poloner – Poloner served on the Information Reporting Subgroup.
• Nancy Ruoff – Ruoff served as Chair of the Tax Exempt/Government Entities Subgroup.
• Paul Sterbenz – Sterbenz served on the Information Reporting Subgroup.
• Kathryn Tracy – Tracy served on the Wage & Investment Subgroup. 

The full 2023 IRSAC Public Report is available at IRS.gov.

Relief for Taxpayers Affected by the Terroristic Action in the State of Israel

Notice 2023-71 postpones various time-sensitive deadlines for taxpayers affected by the October 7, 2023 terrorist attacks in the State of Israel. The notice defines the covered area, identifies categories of “affected taxpayers,” and provides a list of the acts postponed. The postponement period is October 7, 2023 to October 7, 2024.

Notice 2023-71 will be in IRB 2023-44, dated 10/30/2023.

IRS updates tax gap projections for 2020, 2021; projected annual gap rises to $688 billion

WASHINGTON — The Internal Revenue Service today released new tax gap projections for tax years 2020 and 2021 showing the projected gross tax gap increased to $688 billion in tax year 2021, a significant jump from previous estimates.

The new estimate reflects a rise of more than $192 billion from the prior estimates for tax years 2014-2016 and a rise of $138 billion from the revised projections for tax years 2017-2019. This marks the first year tax gap projections have been provided for single tax years and also marks the beginning of tax gap updates on an annual basis.

“This increase in the tax gap underscores the importance of increased IRS compliance efforts on key areas,” said IRS Commissioner Danny Werfel. “With the help of Inflation Reduction Act funding, we are adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships and corporations. “These steps are urgent in many ways, including adding more fairness to the tax system, protecting those who pay their taxes and working to combat the tax gap.”

Tax gap details: late payments and IRS enforcement generated $63 billion in 2021

The $688 gross tax gap is the difference between estimated ‘true’ tax liability for a given period and the amount of tax that is paid on time. The gross tax gap covers three key areas – nonfiling of taxes, underreporting of taxes and underpayment of taxes.

The IRS notes that the tax gap estimates and projections cannot fully account for all types of noncompliance. In addition, the projections released today are based largely upon the compliance behavior estimated from the most recent set of completed audits (from tax years 2014-2016). That estimated compliance behavior is projected forward to taxpayers in tax years 2020 and 2021.

Late payments and IRS enforcement efforts are projected to generate an additional $63 billion on tax year 2021 returns, resulting in a projected net tax gap of $625 billion. Between tax years 2014-2016 and tax year 2021, the estimated tax liability increased by about 38 percent, roughly the same increase as the gross and net tax gaps. Much of these increases in tax liability and the tax gap can be attributed to economic growth.

Voluntary compliance rate remains relatively steady

The tax year 2020 and 2021 tax gap projections translate to about 85% of taxes paid voluntarily and on time, which is in line with recent levels. After IRS compliance efforts are factored in, the projected share of taxes eventually paid is 86.3% for tax year 2021, down slightly from the 87.0% for tax years 2014-2016. This drop in compliance does not factor in any changes in compliance behavior; instead, it is due to changes in the types of income and how that income is reported to the IRS.

The gross tax gap comprises three components:

• Nonfiling, which means tax not paid on time by those who do not file on time:

o $77 billion in tax year 2021, up from $41 billion in tax years 2017-2019.

• Underreporting, which reflects tax understated on timely filed returns.

o $542 billion in tax year 2021, up from $445 billion in tax years 2017-2019.

• Underpayment, or tax that was reported on time, but not paid on time).

o $68 billion in tax year 2021, up from $64 billion in tax years 2017-2019.

With the help of Inflation Reduction Act resources, the IRS will be taking a variety of steps to help improve voluntary compliance by improving taxpayer services and offering new technology tools to work in concert with additional compliance work. In 2022, the latest year for which data is available, the IRS collected more than $4.9 trillion in taxes, penalties, interest and user fees.

Tax gap studies through the years have consistently demonstrated that third-party reporting of income significantly raises voluntary compliance with the tax laws. And voluntary compliance rises even higher when income payments are also subject to withholding. The IRS also has an array of other taxpayer service programs aimed at supporting accurate tax filing and helping address the tax gap. These range from working with businesses and partner groups to a variety of education and outreach efforts.

The voluntary compliance rate of the U.S. tax system is vitally important for the nation. A one-percentage-point increase in voluntary compliance would bring in about $46 billion in additional tax receipts.

The tax gap estimates provide insight into the historical scale of tax compliance and to the persisting sources of low compliance.

Projecting the tax gap; offshore, digital assets, pandemic credits not fully represented

Given the complexity of the tax system and available data, no single approach can be used for estimating each component of the tax gap. Each approach is subject to measurement or nonsampling error; the component estimates that are based on samples are also subject to sampling error. For the individual income tax underreporting tax gap, Detection Controlled Estimation is used to adjust for measurement errors that result when some existing noncompliance is not detected during an audit. Other statistical techniques are used to control for bias in estimates based on operational audit data. Because multiple methods are used to estimate different subcomponents of the tax gap and then are projected into future tax years, no standard errors are reported. Those reviewing these projections should be mindful of these limitations.

Given available data, these projections of the tax gap components presented do not represent the full extent of potential non-compliance. There are several factors to keep in mind:

• The projections cannot fully represent noncompliance in some components of the tax system including offshore activities, issues involving digital assets and cryptocurrency as well as corporate income tax, income from flow-through entities and illegal activities because data are lacking.

• Projections rely upon estimates of compliance behavior. No such estimates are available for pandemic credits, so there is no reliable method of representing noncompliance for pandemic credits.

• The tax gap associated with illegal activities has been outside the scope of tax gap estimation because the objective of government is to eliminate those activities, which would eliminate any associated tax.

• For noncompliance associated with digital assets and other emerging issues, it takes time to develop the expertise to uncover associated noncompliance and for examinations to be completed that can be used to measure the extent of that noncompliance.

The IRS continues to actively work on new methods for estimating and projecting the tax gap to better reflect changes in taxpayer behavior as they emerge.

Additional information:

• Federal Tax Compliance Research: Tax Gap Projections for Tax Years 2020 and 2021, Pub. 5869

• Tax Gap Map, Projections for Tax Year 2020 and 2021, Publication 5870

IRS: Taxpayers impacted by the terrorist attacks in Israel qualify for tax relief; Oct. 16 filing deadline, other dates postponed to Oct. 7, 2024

Oct. 13, 2023

WASHINGTON — The Internal Revenue Service today announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.

In Notice 2023-71PDF, posted today on IRS.gov, the IRS provided relief to certain taxpayers who, due to the terrorist attacks, may be unable to meet a tax-filing or tax-payment obligation, or may be unable to perform other time-sensitive tax-related actions. The IRS will continue to monitor events and may provide additional relief.

Filing and Payment Relief

Today's notice postpones various tax filing and payment deadlines that occurred or will occur during the period from Oct. 7, 2023, through Oct. 7, 2024 (postponement period). As a result, affected individuals and businesses will have until Oct. 7, 2024, to file returns and pay any taxes that were originally due during this period. Among other things, this includes:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief. So, these individuals filing on extension have more time to file, but not to pay.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023. Similarly, these corporations have more time to file, but not to pay.
• 2023 individual and business returns and payments normally due on March 15 and April 15, 2024. So, these individuals and businesses have both more time to file and more time to pay.
• Quarterly estimated income tax payments normally due on Jan. 16, April 15, June 17 and Sept. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, April 30 and July 31, 2024.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
• Retirement plan contributions and rollovers.

Other tax-related deadlines are postponed as well. See Notice 2023-71 and Rev. Proc. 2018-58 for details.

In addition, the penalty for failure to make payroll and excise tax deposits due on or after Oct. 7, 2023 and before Nov. 6, 2023, will be abated as long as the deposits are made by Nov. 6, 2023.

Who Qualifies for Relief?

• Any individual whose principal residence or business entity or sole proprietor whose principal place of business is in Israel, the West Bank or Gaza (the covered area).
• Any individual, business or sole proprietor, or estate or trust whose books, records or tax preparer is located in the covered area.
• Anyone killed, injured, or taken hostage due to the terrorist attacks.
• Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker.

The IRS automatically identifies taxpayers whose principal residence or principal place of business is located in the covered area based on previously filed returns and applies relief. Other eligible taxpayers can obtain this relief by calling the IRS disaster hotline at 866-562-5227. Alternatively, international callers may call 267-941-1000.

If an affected taxpayer receives 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