Announcement 2024-19 addresses the Federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements as part of the Department of Energy’s “Home Energy Rebate Programs” under §§ 50121 and 50122 of the Inflation Reduction Act. The announcement also provides coordination rules for taxpayers who receive such amounts and wish to claim a Federal tax credit under § 25C of the Internal Revenue Code.

Announcement 2024-19 will be in IRB: 2024-17, dated 4/22/24.

Dear IVES Participants,

We are happy to announce the 2024 Income Verification Express Service (IVES) Working Group is now up and running.

The Working Group is committed to promoting transparency and communication among all stakeholders involved in the IVES process.

This shared effort between the IVES participant community and IRS aims to explore important IVES topics and obtain valuable feedback on current and proposed IVES policies. This process also gives all IVES participants the opportunity to share their ideas and/or concerns. Please do so by sending them to: ives.working.group.comms@aven.com. 

Thank you,

IRS IVES Team

WASHINGTON – In the sixth part of the “Dirty Dozen” tax scams for 2024, the Internal Revenue Service warned taxpayers about groups masquerading as charitable organizations to attract donations from unsuspecting contributors.

In natural disasters and other tragic events, it’s common for compassionate individuals to donate money to help the victims. Unfortunately, scammers often use fake charities as a cover to not only obtain money but also gather sensitive personal and financial information that can be exploited for tax-related identity fraud.

“We see repeated instances of scammers using major disasters as a way to prey on well-meaning taxpayers,” said IRS Commissioner Danny Werfel. “In these tragic situations, many people want to help, but con artists too frequently come in posing as charitable groups to take advantage of the situation, stealing money and personal information. People should remember it’s important to never feel pressured to give donations immediately. They should do some research and only donate to clearly established charities that help victims.”

Fake charities mark day six of the Dirty Dozen. Started in 2002, the IRS' annual Dirty Dozen campaign lists 12 scams and schemes that put taxpayers, businesses and the tax professional community at risk of losing money, personal information, data and more. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, the education effort is designed to raise awareness and protect taxpayers and tax pros from common tax scams and schemes, including fake charities.

As a member of the Security Summit, the IRS has worked with state tax agencies and the nation’s tax industry for nine years to cooperatively implement a variety of internal security measures to protect taxpayers. The collaborative effort by the Summit partners also has focused on educating taxpayers about scams and fraudulent schemes throughout the year, which can lead to tax-related identity theft. Through initiatives like the Dirty Dozen and the Security Summit program, the IRS strives to protect taxpayers, businesses and the tax system from cyber criminals and deceptive activities that seek to extract information and money, including fake charities.

Real tragedies; fake charities

During times of disasters, fake charities become a concern. These deceitful organizations are created by scammers who take advantage of people’s generosity. They solicit money and personal information to victimize individuals through identity theft.

When taxpayers decide to contribute funds or goods to an organization, they may qualify for a deduction on their tax return, but only if they itemize their deductions. It is important to remember that charitable donations are valid when directed toward IRS-recognized tax-exempt organizations. Individuals intending to donate can utilize the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to ensure legitimacy.

Beware of scammers who might use email communications or manipulate caller IDs to deceive people into donating funds to charities. These fraudsters often target groups such as seniors and those with limited English proficiency.

Here are some helpful tips to avoid getting scammed:

• Don’t give in to pressure. Scammers often create situations to get people to make payments. Genuine charities are always grateful for donations. Donors should take their time and research before making a charitable contribution.
• Exercise caution when making donation payments. Avoid any charity that requests gift card numbers or wire transfers. It’s better to pay by credit card or check after ensuring the charity’s authenticity.
• Verify the legitimacy of the charity. Scammers often use similar-sounding names for charities to confuse people. Before donating, potential donors need to ask the fundraiser for the charity's name, website and mailing address so they can independently verify its authenticity. Use the special IRS TEOS tool to verify if an organization is a legitimate tax-exempt charity.
• Avoid sharing too much information. Scammers are always on the lookout for both money and personal data. Never disclose Social Security numbers, credit card numbers or Personal Identification Numbers. Only provide bank or credit card details after confirming the charity's legitimacy.

Report fraud

As part of the Dirty Dozen awareness effort regarding tax schemes and unscrupulous tax return preparers, the IRS encourages individuals to report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed paper Form 14242, Report Suspected Abusive Tax Promotions or Preparers, and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677 3405
Fax: 877 477 9135

Taxpayers and tax professionals can also submit this information to the IRS Whistleblower Office, where they may be eligible for a monetary award. For details, refer to the sections on Abusive Tax Schemes and Abusive Tax Return Preparers.

Inside This Issue

 

1. Deadline approaches to file 2023 tax returns, make payment or request extension
2. IRS reminder: 2024 first quarter estimated tax payment deadline is April 15
3. TDS Authorization Change
4. Treasury, IRS issue guidance on the tax treatment of amounts paid as rebates for energy efficient property and improvements
5. Dirty Dozen: Beware of evolving scams
6. Dirty Dozen: IRS urges taxpayers to not fall prey to untrustworthy tax preparers; ‘ghost preparers’ can disappear with taxpayer cash, information
7. Reminder to U.S. taxpayers impacted by Israel attacks have until Oct. 7; more relief available
8. Tax relief available for Maine, Rhode Island disaster victims
9. See what’s new at the IRS Nationwide Tax Forum
10. Upcoming Webinars for tax practitioners
11. Report digital asset income, including cryptocurrency on tax return
12. News from the Justice Department’s Tax Division

1.  Deadline approaches to file 2023 tax returns, make payment or request extension

The IRS reminds taxpayers of the April 15 deadline to electronically file their federal income tax return and request direct deposit.

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2.  IRS reminder: 2024 first quarter estimated tax payment deadline is April 15

The Internal Revenue Service advised taxpayers, including self-employed individuals, retirees, investors, businesses and corporations about the April 15 deadline for first quarter estimated tax payments for tax year 2024.

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3.  TDS Authorization Change

As part of the IRS’ effort to continue combatting identity theft and protecting taxpayers’ personal information, we’re making changes that will impact how tax professionals receive transcripts.

Beginning April 8, 2024, tax professionals must call the Practitioner Priority Service (PPS) to request transcripts to be deposited into their Secure Object Repository (SOR). While PPS has been the primary avenue for these requests, other IRS toll-free lines will no longer offer the SOR as a delivery method.

Additionally, tax professionals need to pass the current required authentication and also verify their Short Identification (ID). The Short ID is a unique 8-10 alphanumeric code that is systemically assigned when an IRS account is established. This Short ID is visible when the tax professional logs in to their e-Services SOR. If the identity can’t be verified, transcripts will only be mailed to the address of record. PPS assistors cannot resolve issues with ID.Me identity proofing or the status of an ID.Me account.

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4.  Treasury, IRS issue guidance on the tax treatment of amounts paid as rebates for energy efficient property and improvements

The Department of Treasury and the Internal Revenue Service issued Announcement 2024-19 that addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements. Generally, taxpayers who receive rebates for the purchase of energy efficient homes will not include the value of those rebates as income o their tax returns, however they will need to reduce the basis of the property when they sell it by the amount of the rebate.

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5.  Dirty Dozen: Beware of evolving scams

The Internal Revenue Service continues to share its Dirty Dozen list of tax scams reminding taxpayers and tax professionals to be wary of evolving phishing and smishing scams designed to steal sensitive taxpayer information.

Taxpayers are advised by the IRS to be cautious of the following scenarios:

• Helpful scammers offering to set up an Online Account
• False Fuel Tax Credit claims
• False Offer in Compromise (OIC) "mills" claiming services to resolve IRS debt
• False Charities exploitation

The IRS urges individuals to report unscrupulous promoters and tax preparers. To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed paper Form 14242, Report Suspected Abusive Tax Promotions or Preparers and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

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6.  Dirty Dozen: IRS urges taxpayers to not fall prey to untrustworthy tax preparers; ‘ghost preparers’ can disappear with taxpayer cash, information

The Internal Revenue Service and Security Summit partners alerted taxpayers to be on the lookout for unscrupulous tax preparers who could encourage people to file false tax returns and steal valuable personal information.

A common problem seen annually during tax season, “ghost preparers” pop up to encourage taxpayers to take advantage of tax credits and benefits for which they don’t qualify. These preparers can charge a large percentage fee of the refund or even steal the entire tax refund. After the tax return is prepared, these “ghost preparers” can simply disappear, leaving well-meaning taxpayers to deal with the consequences.

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7.  Reminder to U.S. taxpayers impacted by Israel attacks have until Oct. 7; more relief available

The IRS reminds U.S. taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel, have until Oct. 7, 2024, to both file and pay most taxes due.

Other tax-related deadlines are postponed as well. Among other things, this includes individuals, corporations and tax-exempt organizations that had valid extensions to file their 2022 federal income tax returns, though payments for these returns do not get the extra time because they were due before the attacks occurred. See Notice 2023-71 and Rev. Proc. 2018-58 for details. For additional information, affected taxpayers may call the IRS disaster hotline at 866-562-5227. Alternatively, international callers may call 267-941-1000.

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8.  Tax relief available for Maine, Rhode Island disaster victims

The IRS is providing tax relief to the following individuals and businesses who have recently been affected by storms and flooding:

• Disaster-area taxpayers in parts of Maine affected by severe storms and flooding that began on Jan. 9 have until July 15 to file various federal individual and business tax returns and make tax payments. The IRS is offering relief to areas designated by the Federal Emergency Management Agency (FEMA). Currently, this includes individuals and households that reside or have a business in Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington and York counties qualify for tax relief. The same relief will be available to any other Maine localities added later to the disaster area.
• Individuals and businesses in parts of Rhode Island that were affected by severe storms and flooding that began on Dec. 17 and Jan. 9, now have until July 15, 2024, to file various federal individual and business tax returns and make tax payments. Currently, this includes Kent, Providence and Washington counties. The same relief will be available to any counties added later to the disaster areas.

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9.  See what’s new at the IRS Nationwide Tax Forum

Tax professionals can attend the upcoming IRS Nationwide Tax Forum, where they will have access to the latest insights and expertise straight from the IRS. Each of the five forums is a three-day event with seminars, workshops, networking opportunities, and much more. Attendees can maximize their time by participating in additional events as early as the Monday before the forums officially begin, from the annual filing season refresher course to the practice management session for tips to running their businesses.

In addition to learning about the latest developments in tax law and other issues affecting the tax community, attendees will also have a chance to meet in-person with IRS hiring experts. The IRS looks to hire talented people in the tax community and other industries as the agency continues the historic transformation work under the Inflation Reduction Act.

Register now to take advantage of the Early Bird rate available until June 17. Visit 2024 IRS Nationwide Tax Forum for information on the program, accommodations and registration.

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10.  Upcoming Webinars for tax practitioners

The IRS is presenting the webinar “Impacts of Gaming on Tax Exempt Organizations” on April 18 at 2 p.m. ET. Tax professionals can earn up to one continuing education credit.

For more information or to register for the webinar, visit the Webinars for Tax Practitioners webpage. 

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11.  Report digital asset income, including cryptocurrency on tax return

Any income earned from digital asset transactions must be reported on your federal tax return.

Detailed reporting requirements are available in the Instructions for Form 1040 and Form 1040-SR and on the Digital Assets page on IRS.gov.

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12.  News from the Justice Department’s Tax Division

The United States filed a civil complaint in the U.S. District Court for the Eastern District of Washington to bar Donald J. Taylor, a former IRS revenue agent and registered enrolled agent, who left the IRS in 2008 to work as a paid tax return preparer in Kennewick, Washington. By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Taylor’s conduct resulting in the loss in federal tax revenue, estimated to be over $42 million for tax years 2017 and 2020.

The Justice Department filed a civil injunction suit against a group of Texas tax return preparers seeking to bar them from owning or operating a tax preparation business and preparing tax returns. The complaint also requests that the court require the defendants to disgorge the return preparation fees they obtained by preparing allegedly false or fraudulent tax returns. The IRS estimates the harm to the United States in the form of underreported income and unpaid taxes from the defendants’ misconduct could exceed $10 million.

New Jersey tax return preparer Leon Haynes, of Teaneck, New Jersey, was charged with 55 counts of aiding and assisting in the preparation of false tax returns, five counts of mail fraud, one count of aggravated identity theft and two counts of tax evasion. Haynes filed hundreds of false returns and caused a tax loss to the IRS of $1,428,592 based on false claims he submitted relating to his businesses. Haynes faces a maximum penalty of 20 years in prison for mail fraud charges, a maximum penalty of five years in prison for each tax evasion charge, three years in prison for aiding and assisting in the preparation of false return charge and two years in prison for the aggravated identity 

WASHINGTON – As part of the annual Dirty Dozen list of tax scams, the Internal Revenue Service today renewed its warning to taxpayers concerning pricey Offer in Compromise (OIC) "mills” that aggressively mislead taxpayers into thinking their tax debts can disappear.

As in past years, companies running OIC mills continue heavily advertising their promises to settle taxpayer debt at steep discounts for pennies on the dollar. While OIC is a legitimate IRS program, many taxpayers do not meet the technical requirements for the tax resolution program, often leaving them facing excessive fees from the promoters for information they could have easily obtained for free by using the IRS's Offer in Compromise Pre-Qualifier tool.

The OIC is a valuable IRS program to help taxpayers who cannot pay their federal tax debts, and some companies offer legitimate services. But the IRS encourages individuals to take a few minutes to assess the information available on IRS.gov to determine if they meet the eligibility criteria for the OIC program and to avoid hiring expensive promoters.

"Taxpayers need to be cautious with aggressive marketing around the Offer in Compromise program that can mislead taxpayers,” said IRS Commissioner Danny Werfel. “These mills try to pull in steep fees while raising false expectations and exploiting vulnerable individuals with promises that tax debt can magically disappear.”

“The program is legitimate, but it’s not for everyone,” Werfel added. “The IRS wants to help taxpayers who qualify for this program, but there are very specific requirements for people to qualify. A good first step is for taxpayers to take a few minutes and explore our free resources on IRS.gov. They can find out if they might qualify for this program – and at the same time avoid paying someone a hefty fee.”

OIC mills are the focus of the fifth news release in the Dirty Dozen series. Started in 2002, the IRS' annual Dirty Dozen campaign lists 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data and more. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, the education effort is designed to raise awareness and protect taxpayers and tax pros from common tax scams and schemes.

Beware of Offer in Compromise mills

An OIC is a legitimate IRS program that allows qualifying taxpayers to work with the IRS to settle a tax debt for less than the full amount owed. It is an option for those who may be unable to pay their full tax liability, or if doing so creates a financial hardship. In determining eligibility, the IRS considers the taxpayer’s unique situation. The OIC agreement occurs directly between the taxpayer and the IRS without a third party.

Taxpayers, however, should be cautious of OIC mills, which make exaggerated claims through radio and TV ads about settling tax debts inexpensively. In reality, these mills often charge excessive fees, and taxpayers end up paying for a service they could have obtained for free directly from the IRS.

The IRS urges individuals to spend a few minutes reviewing information on IRS.gov to determine if they may be eligible for the OIC program by using the IRS's Offer in Compromise Pre-Qualifier tool for free.

The IRS also reminds taxpayers about the First Time Penalty Abatement policy, where taxpayers can go directly to the IRS for administrative relief from a penalty that would otherwise be added to their tax debt.

Help others: Report fraud, scams and schemes

The IRS encourages taxpayers to report any individuals promoting improper, abusive or fraudulent tax schemes, as well as tax return preparers who deliberately prepare improper or fraudulent returns.

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed paper Form 14242, Report Suspected Abusive Tax Promotions or Preparers, and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:
Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: 877-477-9135

Additionally, taxpayers and tax practitioners may submit their report of improper or fraudulent practices to the IRS Whistleblower Office, which may offer a possible monetary award.

To learn more about avoiding becoming a victim of tax preparation schemes and fraud, please see Abusive Tax Schemes and Abusive Tax Return Preparers on IRS.gov.

WASHINGTON – The Department of Treasury and the Internal Revenue Service today issued Announcement 2024-19 that addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.

Generally, taxpayers who receive rebates for the purchase of energy efficient homes will not include the value of those rebates as income on their tax returns. They will, however, need to reduce the basis of the property when they sell it by the amount of the rebate.

The Inflation Reduction Act (IRA) statutory language describes performance-based incentives and electrification product subsidies as “rebates.”

Announcement 2024-19 provides that amounts received from the Department of Energy (DOE) home energy rebate programs funded through the IRA will be treated as a reduction in the purchase price or cost of property for eligible upgrades and projects. Accordingly, the consumer that receives an IRA rebate will not be required to report the value of the rebate as income.

Additional information about energy-related tax benefits under the Inflation Reduction Act, such as energy efficient homes, can be found on IRS.gov.

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of Rhode Island that were affected by severe storms and flooding that began on Dec. 17, 2023, and Jan. 9, 2024.

These taxpayers now have until July 15, 2024, to file various federal individual and business tax returns and make tax 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 Kent, Providence and Washington counties qualify for tax relief.

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

Among other things, this means that 2023 individual and business tax returns and tax payments are now due on July 15, 2024.  For more information on filing and payment relief for these two incidents, please refer to RI-24-05 and RI-24-06.

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.

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 Internal Revenue Service announced today tax relief for individuals and businesses in parts of Maine affected by severe storms and flooding that began on Jan. 9, 2024.

These taxpayers now have until July 15, 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 Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington and York 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 Jan. 9, 2024, through July 15, 2024 (postponement period). As a result, affected individuals and businesses will have until July 15, 2024, to file returns and pay any taxes that were originally due during this period.

This means, for example, that the July 15, 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 Jan. 16, April 15 and June 17, 2024.
• Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024.
• Calendar-year partnership and S corporation returns normally due on March 15, 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 Jan. 9, 2024, and before Jan. 24, 2024, will be abated as long as the deposits were made by Jan. 24, 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.

Reminder about extensions

The IRS urges anyone who needs an additional tax-filing extension, beyond July 15, 2024, for their 2023 federal income tax return to request it electronically by April 15, 2024. Though a disaster-area taxpayer qualifies to request an extension between April 15 and July 15, 2024, a request filed during this period can only be submitted on paper. Whether requested electronically or on paper, the taxpayer will then have until Oct. 15, 2024, to file, though payments are still due on July 15, 2024. Visit IRS.gov/Extensions for details.

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 – 4764-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 Internal Revenue Service today advised taxpayers, including self-employed individuals, retirees, investors, businesses and corporations about the April 15 deadline for first quarter estimated tax payments for tax year 2024.

Since income taxes are a pay-as-you go process, the law requires individuals who do not have taxes withheld to pay taxes as income is received or earned throughout the year. Most people meet their tax obligations by having their taxes deducted from their paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

Generally, taxpayers who are self-employed or in the gig economy are required to make estimated tax payments. Likewise, retirees, investors and others frequently need to make these payments because a significant portion of their income is not subject to withholding.

When estimating quarterly tax payments, taxpayers should include all forms of earned income, including part-time work, side jobs or the sale of goods or services commonly reported on Form 1099-K.

Income such as interest, dividends, capital gains, alimony and rental income is normally not subject to withholding. By making quarterly estimated tax payments, taxpayers can avoid penalties and uphold their tax responsibilities.

Certain groups of taxpayers, including farmers and fishers, recent retirees, individuals with disabilities, those receiving irregular income and victims of disasters are eligible for exceptions to penalties and special regulations.

Following recent disasters, eligible taxpayers in Tennessee, Connecticut, West Virginia, Michigan, California and Washington have an extended deadline for 2024 estimated tax payments until June 17, 2024. Similarly, eligible taxpayers in Alaska, Maine and Rhode Island have until July 15, 2024, and eligible taxpayers in Hawaii have until Aug. 7, 2024. For more information, visit Tax relief in disaster situations.

In addition, taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel, have until Oct. 7, 2024, to make estimated tax payments.

Paying estimated taxes

Taxpayers can rely on Form 1040-ES, Estimated Tax for Individuals, for comprehensive instructions on computing their estimated taxes.

Opting for the IRS Online Account streamlines the payment process, allowing taxpayers to view their payment history, monitor pending payments and access pertinent tax information. Taxpayers have several options to make an estimated tax payment, including IRS Direct Pay, Debit Card, Credit Card, Digital Wallet or the Treasury Department's Electronic Federal Tax Payment System (EFTPS).

To pay electronically and for more information on other payment options, visit IRS.gov/payments. If paying by check, be sure to make the check payable to the "United States Treasury."

Publication 505, Tax Withholding and Estimated Tax, offers detailed information for individuals navigating dividend or capital gain income, alternative minimum tax or self-employment tax, or who have other special situations.

Tax Withholding Estimator

The IRS recommends taxpayers use the Tax Withholding Estimator tool to accurately determine the appropriate amount of tax withheld from paychecks.

Regularly monitoring withheld taxes helps mitigate the risk of underpayment, reducing the likelihood of unexpected tax bills or penalties during tax season. It also allows individuals to adjust withholding upfront, leading to larger paychecks during the year and potentially smaller refunds at tax time.

Filing Options

The IRS encourages people to file their tax returns electronically and choose direct deposit for faster refunds. Filing electronically reduces tax return errors because tax software does the calculations, flags common errors and prompts taxpayers for missing information.

The IRS offers free online and in-person tax preparation options for qualifying taxpayers through the IRS Free File program and the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

In addition, the Direct File pilot program, a new option that allows eligible taxpayers to file their federal tax returns online directly with the IRS for free, is currently available in 12 participating states.

Assistance available 24/7 on IRS.gov

IRS.gov offers tax assistance 24/7. To address general tax concerns, taxpayers can access various online tools on the IRS website, to include the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions.

The IRS has also posted translated tax resources in 20 other languages on IRS.gov to communicate to taxpayers who prefer to get information in other languages. For more information, see the IRS Languages page on IRS.gov.

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WASHINGTON, April 4, 2024—The FCC’s Enforcement Bureau today issued a cease-and-desist letter against Veriwave Telco. The letter ordered Veriwave Telco to cease and desist its origination of an apparently illegal robocall campaign pertaining to a “National Tax Relief Program.” The Bureau also warned the company that failure to comply with the requirements outlined in the cease-and-desist letter may result in mandatory blocking by downstream providers of all traffic from Veriwave. In addition, the Bureau issued a “K4 Order,” notifying all U.S.-based voice service providers that they may be permitted to cease accepting traffic from Veriwave Telco.

Between November 1, 2023 and January 31, 2024, the YouMail software app company estimates that approximately 15.8 million calls playing prerecorded messages pertaining to a “National Tax Relief Program” were placed. The Bureau found no evidence that this program actually exists. This illegal robocalling campaign increased in volume in the three months immediately preceding the start of the 2024 tax filing season. These calls offered to “rapidly clear” the call recipient’s tax debt. Those receiving the call were apparently asked to provide personal information, including dates of birth and social security numbers. An example call transcript is available in the FCC’s cease-and-desist letter. FCC investigators and the Industry Traceback Group traced a number of these calls back to Veriwave Telco as the originating provider.

Today’s action kicks off a “Spring Cleaning” initiative from the Enforcement Bureau during which it plans to coordinate closely with other federal agencies to issue a series of robocall actions against entities harming consumers and eroding trust in the telecommunications infrastructure. The Bureau’s focus is on preventing the damage and distress resulting from active scams particularly widespread during the spring season. The perpetrators of illegal robocalls use the springtime calendar, with the tax filing deadline a notable feature, to initiate predatory activities seeking to maximize the harm to consumers.

FCC Leadership:
Chairwoman Jessica Rosenworcel: “Tricking consumers with tax season scams is just plain wrong, but we all know it remains a common ploy. While illegal robocallers continue to try to hide from us, we’ll keep seeking them out and hold them accountable for putting consumers at risk.”

Enforcement Bureau:
Chief Loyaan Egal: “Through our ‘Spring Cleaning’ initiative, we are taking targeted actions to ensure the integrity of U.S. communications networks and increase consumers’ confidence that their phones are not being weaponized against them to commit fraud. We want to thank our partners at the IRS for helping us kick off the ‘Spring Cleaning’ initiative and will be working closely with other agencies throughout the spring to address different illegal robocall campaigns that are harming consumers.”

FTC’s Bureau of Consumer Protection
Director Samuel Levine: “Illegal robocalls waste Americans’ time and can cost them money, and unscrupulous VoIP providers knowingly enable these scams. I commend FCC Chair Rosenworcel for continuing to use every tool to hold upstream actors accountable and protect Americans in the fight against illegal telemarketing.”

What’s New
The Enforcement Bureau issued a cease-and-desist letter demanding that Delaware-based voice service provider Veriwave Telco no longer facilitate an illegal robocall campaign, specifically citing evidence it was the originating provider for “National Tax Relief Program” robocalls. The Bureau warned the company that, if it does not stop its support for illegal robocalls and promptly report to the FCC the actions it has taken to prevent continued illegal activity, it may be cut off from handing call traffic off to other voice service providers. Providers received a “K4” public notice informing them that, depending on Veriwave Telco’s cooperation, they may cease accepting traffic from Veriwave Telco.

How We Got Here
Since March 2021, the FCC has been issuing cease and desist letters to companies suspected of originating and/or transmitting illegal robocall campaigns. These warnings have largely resulted in the targets ending their robocall activities. Where a warning was not enough, the FCC has moved quickly to block ongoing robocall campaigns. The FCC has prioritized addressing ongoing robocall campaigns to save consumers from the scams and the frustration of illegal calls.

Getting Results:
The FCC’s Robocall Response Team serves as an FCC staff working group to combat the unyielding menace of illegal spoofed, or scam, robocalls.

• Blocking active robocall scam campaigns by issuing first-of-their-kind actions:
• • 99% drop in auto warranty scam robocalls after an FCC action;
  • 88% month-to-month drop in student loan scam robocalls;
  • Halted predatory mortgage robocalls targeting homeowners nationwide;
• Fining companies record-breaking amounts for illegal robocalls and spoofing;
• Closing gateways used by international robocallers to reach Americans’ phones;
• Widespread implementation of STIR/SHAKEN caller ID authentication standards – including applying the requirements to gateway providers;
• Working with industry to traceback illegal calls to their sources;
• Ensuring voice service providers meet FCC robocall mitigation requirements;
• • Signing robocall investigation partnerships with 49 states, District of Columbia, Guam and international partners;
• Establishing first-of-their-kind regulations targeting scam text messaging; and
• Launching the Robocall Mitigation Database to monitor STIR/SHAKEN compliance.

"The IRS continues to warn taxpayers about aggressive scam attempts that threaten people’s cash as well as sensitive financial and personal information,” said IRS Commissioner Danny Werfel. “Impersonating the IRS and others in the tax community remains a favorite tactic for scammers hoping to prey on innocent taxpayers, and we highlight these as part of our annual IRS ‘Dirty Dozen’ tax scams. The IRS urges people to be extra cautious about unsolicited messages, whether by phone or text as well as avoiding clicking any links in an unexpected email. These scams can occur at any time of the year, not just during tax season.”

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Media Relations: (202) 418-0500 / ASL: (844) 432-2275 / Twitter: @FCC / www.fcc.gov

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).