IRS Tax News

  • 14 Nov 2024 2:26 PM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds individual retirement arrangement (IRA) owners age 70½ and older that they can make up to $105,000 in tax-free charitable donations during 2024 through qualified charitable distributions. That’s up from $100,000 in past years.

    For those age 73 or older, qualified charitable distributions (QCDs) also count toward the year's required minimum distribution (RMD).

    Generally, IRA distributions are taxable, but QCDs remain tax-free if sent directly to a qualified charity by the trustee. To make a QCD for 2024, IRA owners should contact their IRA trustee soon to ensure the transaction completes by year-end.

    Each eligible IRA owner can exclude up to $105,000 in QCDs from taxable income. Married couples, if both meet qualifications and have separate IRAs, can donate up to $210,000 combined. QCDs don’t require itemizing deductions.

    For those planning ahead, starting this year, the QCD limit is subject to annual adjustment, based on inflation. For that reason, the annual QCD limit will rise to $108,000 in 2025.

    Reporting and documenting QCDs

    For 2024, QCDs should be reported on the 2024 tax return. IRA trustees will issue Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., in early 2025 documenting IRA distributions.

    The full amount of any IRA distribution goes on Line 4a of Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors. Enter “0” on Line 4b if the full amount is a QCD, marking it as such.

    Donors must obtain a written acknowledgement from the charity showing the contribution date, amount and confirmation that no goods or services were received.

    For more details, see Publication 526, Charitable Contributions, and Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)


  • 13 Nov 2024 12:00 PM | Anonymous

    Notice 2024-81 forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for October 2024 used under § 417(e)(3)(D), the 24-month average segment rates applicable for November 2024, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).  

    Notice 2024-81 will be in IRB:  2024-49, dated December 2, 2024.


  • 12 Nov 2024 12:20 PM | Anonymous

    WASHINGTON — The Internal Revenue Service will sponsor a free one-hour webinar designed to help the many businesses that must report their beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network.

    Because this is not an IRS or tax-related requirement, FinCEN representatives will conduct the webinar on this new anti-money laundering provision. The webinar will take place on Tuesday, Nov. 19, 2025, beginning at 2 p.m. ET.

    Many companies created or registered to do business before Jan. 1, 2024, must e-file their initial beneficial ownership information (BOI) to FinCEN by Jan. 1, 2025. In general, this means reporting the names and other information about the people who own or control the company. Exceptions and special rules apply.

    During this free webinar, FinCEN will:

    • Explain the Corporate Transparency Act.
    • Provide Beneficial Ownership reporting resources.
    • Analyze the BOI reporting requirement using the Small Entity Compliance Guide.
    • Describe what happens if a company does not timely report BOI to FinCEN.

    The webinar will also feature a live question-and-answer session. Though primarily aimed at tax professionals, anyone is welcome to attend.

    Certificates of completion will be offered, but no continuing education credits are available for this webinar. Closed captioning will also be offered.

    Time: 2 p.m. (Eastern); 1 p.m. (Central); 12 p.m. (Arizona and Mountain); 11 a.m. (Pacific); 10 a.m. (Alaska); 9 a.m. (Hawaii and Aleutian) time zones.

    Registration: Visit the Internal Revenue Service webinar website. Questions about the webinar can be emailed to cl.sl.web.conference.team@irs.gov.

    For more information about the BOI reporting requirement, including FAQs and a five-minute video illustrating how to file, visit FinCEN’s BOI page.


  • 08 Nov 2024 3:57 PM | Anonymous
    1. Notice of renewal for enrolled agents
    2. Tax pros: New continuing education seminars now available on IRS Nationwide Tax Forum Online
    3. Tax Talk Today highlights IRS Nationwide Tax Forum: Interview with Tax Exempt Commissioner
    4. IRS releases 2024 Financial Report
    5. IRS shares healthcare FSA reminder: Employees may contribute up to $3,300 in 2025
    6. Upcoming webinars for tax professionals

    1.  Notice of renewal for enrolled agents

    Enrolled agents: If your Social Security number (SSN) ends in 0,1, 2 or 3, you have until Jan. 31, to renew your status. Enrolled agents must renew their status every three years to remain eligible to practice before the IRS. Failure to renew by the deadline will result in your enrolled agent status becoming “inactive.” To renew:

    • Complete Form 8554, Application for Renewal of Enrollment to Practice Before the IRS, online at Pay.gov.
    • Pay the $140 renewal fee.

    All enrolled agents must also have an active Preparer Tax Identification Number (PTIN) that must be entered on Form 8554.

    Visit IRS.gov/ea for more information.

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    2.  Tax pros: New continuing education seminars now available on IRS Nationwide Tax Forum Online

    The IRS encourages tax professionals to register for the IRS Nationwide Tax Forum Online to get access to 18 seminars recorded at the 2024 IRS Nationwide Tax Forum. The Nationwide Tax Forum Online offers tax professionals a convenient way to stay informed about current legislation, IRS procedures and key topics for the upcoming tax season.

    Each seminar features a 50-minute interactive video presentation with synchronized slides, downloadable materials and complete transcripts. Courses can be taken for continuing education (CE) credit for a fee of $29, or they can be reviewed for free (no CE credit).

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    3.  Tax Talk Today highlights IRS Nationwide Tax Forum: Interview with Tax Exempt Commissioner

    Want to learn more about the annual IRS Nationwide Tax Forum? Tax Talk Today’s Alan Pinck conducted several on-site interviews at the 2024 San Diego Tax Forum touching on an array of topics.

    View his interview with Edward Killen, IRS Commissioner, Tax Exempt/Government Entities Division.

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    4.  IRS releases 2024 Financial Report

    The Internal Revenue Service this week released financial information and highlighted selected accomplishments and challenges in its fiscal year 2024 Financial Report.

    During fiscal year 2024, the IRS collected more than $5.1 trillion in tax revenue, collected more than $98 billion in enforcement revenue and distributed $553 billion in federal tax refunds and other outlays. This year’s report presents the IRS’s current financial position and discusses key financial topics. It highlights the programs, accomplishments, challenges and management's accountability for the resources entrusted to the IRS.

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    5.  IRS shares healthcare FSA reminder: Employees may contribute up to $3,300 in 2025

    The Internal Revenue Service reminds taxpayers that during open enrollment season for flexible spending arrangements (FSAs) they may be eligible to use tax-free dollars to pay medical expenses not covered by other health plans. An employee who chooses to participate in an FSA can contribute up to $3,300 through payroll deductions during the 2025 plan year. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. If the plan allows, the employer may also contribute to an employee's FSA. If the employee's spouse has a plan through their employer, the spouse can also contribute up to $3,300 to that plan. In this situation, the couple could jointly contribute up to $6,600 for their household.

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    6.  Upcoming webinars for tax professionals

    The IRS offers the upcoming live webinars to the tax professional community:

    • Energy Efficient Home Improvements Credit & Residential Clean Energy Property Credit: How the Inflation Reduction Act revised these credits on Nov. 14, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of completion are being offered. Click here to register.
    • Beneficial Ownership Information presented by Financial Crimes Enforcement Network (FinCEN) on Nov. 19, at 2 p.m. ET. No continuing education credit is being offered. Click here to register.


  • 08 Nov 2024 12:22 PM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds taxpayers that during open enrollment season for Flexible Spending Arrangements (FSAs) they may be eligible to use tax-free dollars to pay medical expenses not covered by other health plans. 

    An employee who chooses to participate in an FSA can contribute up to $3,300 through payroll deductions during the 2025 plan year. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. 

    If the plan allows, the employer may also contribute to an employee's FSA. If the employee's spouse has a plan through their employer, the spouse can also contribute up to $3,300 to that plan. In this situation, the couple could jointly contribute up to $6,600 for their household. 

    For FSAs that permit the carryover of unused amounts, the maximum carryover amount to 2025 is $660, increasing from $640 in tax year 2024. The carryover doesn’t affect the maximum amount of salary reduction contributions that can be made. 

    It's important for taxpayers to annually review their health care selections during health care open enrollment season and maximize their savings. 

    Eligible employees of companies that offer a health flexible spending arrangement (FSA) need to act before their medical plan year begins to take advantage of an FSA during 2025. Self-employed individuals are not eligible. 

    Expenses to consider

    Throughout the year, taxpayers can use FSA funds for qualified medical expenses not covered by their health plan. These can include co-pays, deductibles and a variety of medical products. Also covered are services ranging from dental and vision care to eyeglasses and hearing aids. Interested employees should check with their employer for details on eligible expenses and claim procedures. 

    Before enrollment (if an employer offers an FSA), review any expected health care expenses projected for the year. Participating employees should plan for healthcare activities when they calculate their contribution amounts. Consider: 

    • Updating medicine cabinet with necessary supplies.
    • Big ticket expenses.
    • Seasonal needs such as allergy products, sunscreen or warm steam vaporizers.
    • Routine checkups or visits with specialists that regular insurance plans do not cover.
    • Many over-the-counter items that are FSA eligible.
    • Eye exams or dental visits: Out-of-pocket costs for dental and vision care are also covered by an FSA. 

    Employers are not required to offer FSAs. Interested taxpayers should check with their employer to see if they offer an FSA. Also, all FSAs are subject to plan terms which may be more restrictive than the maximums allowed under the law, including both the maximum dollar amounts and the expenses covered. More information about FSAs can be found at IRS.gov in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.


  • 29 Oct 2024 2:22 PM | Anonymous

    Outreach Connection FY25-01

    Disaster tax relief toolkit for people affected by recent disasters

     

    In this edition

    Disaster relief resources

    Disaster victim resources on IRS.gov

    Help hand concept

    IRS.gov has information disaster victims may need as they recover, including information about disaster-related tax relief and extensions to file and pay taxes.

    FAQs for disaster victims

    IRS webinar: Dealing with disaster from an individual tax perspective

    IRS tax relief after major disasters

    Team navigating a flooded street in a raft. Three members wearing safety helmets and life jackets as they assess the flood damage

    Disaster tax relief

    The IRS can authorize disaster tax relief when the disaster meets criteria from the Federal Emergency Management Agency (FEMA). 

    All disaster tax relief announcements

    Disaster tax relief announcements by location

    Beware of disaster charity scams

    Cupped hands extended on green background with text reading "Charity Scam". Background pattern with the word "donate" and dollar sign coins symbol

    Charity scams following recent hurricanes

    In the aftermath of Hurricanes Milton and Helene, the IRS cautions taxpayers about scammers who use fake charities to gather sensitive personal and financial data from unsuspecting donors.

    Tools to help people verify legitimate groups

    Tips for reconstructing tax and financial records

    New green sprout plant growth in cracked concrete and shading a big tree shadow on the wall

    Resources to rebuild records after a disaster

    The IRS has tips to help disaster victims reconstruct their tax and financial records. They may need these records to help prove and document their losses so they can get federal help or insurance reimbursement. 

    Casualty, disaster, and theft loss workbook (for individuals)

    Business casualty, disaster, and theft loss workbook

    More information


  • 29 Oct 2024 2:11 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced the selection of the first Associate Chief Counsel for the newly created Passthroughs, Trusts and Estates office that will focus exclusively on partnerships, S corporations, trusts and estates. Staffing for this office will be drawn from the current Passthroughs and Special Industries office. The new Associate Chief Counsel, Jeffrey Erickson, is expected to join the IRS in January 2025. Most recently, he served as a Principal in Ernst & Young’s National Tax Passthroughs Transaction Group. 

    Holly Porter will be the Associate Chief Counsel for the Energy, Credits, and Excise Tax office, which also will be drawn from the current Passthroughs and Special Industries office. 

    “We are excited that Jeff will be returning to the IRS to lead Chief Counsel’s work in this priority area,” said IRS Chief Counsel Margie Rollinson. “He will bring an extensive background in tax law that encompasses over 30 years of experience in both the federal government and the private sector.”  

    As the Associate Chief Counsel for Passthroughs, Trusts and Estates, Erickson will coordinate and direct the activities of the office and oversee legal advisory services that support the uniform interpretation, application, enforcement and litigation of tax laws involving partnerships, S corporations, trusts and estates. 

    Erickson began his tax career in 1991 as an Attorney Advisor at the IRS’s Office of Chief Counsel in Passthroughs and Special Industries and left the IRS in 1999 as an Assistant Branch Chief. Additionally, Erickson has served as an Adjunct Professor at the Georgetown University Law Center, where he co-taught Taxation of Partnerships for LL.M. and J.D. students and has authored articles for inclusion in tax publications.


  • 28 Oct 2024 4:14 PM | Anonymous

    WASHINGTON – As National Cybersecurity Awareness Month concludes and preparation for next tax season begins, the Internal Revenue Service and its Security Summit partners today reminded taxpayers to be wary of online threats like identity theft and fraud.

    Whether shopping online or browsing social media, people unfamiliar with online security could be putting themselves at risk. Lax online behavior can open the door to swindlers eager to swipe people’s personal information and leave themselves vulnerable to tax-related identity theft.

    The IRS and Security Summit alert taxpayers to remain vigilant and to teach children and teens how to recognize and avoid online scams to minimize their chances of falling prey or unwittingly exposing their families to identity theft and tax fraud.

    The public-private sector partnership encourages everyone to be aware of the many security vulnerabilities they face online and to review a wide range of resources available to them as October’s National Cybersecurity Awareness Month draws to a close.

    Members of the Security Summit – a coalition that includes tax software and financial companies, tax professionals, state tax administrators and the IRS – also offer multiple online safety recommendations to protect taxpayers from tax-related identity theft.

    Online safety tips

    Options to help protect against cybersecurity attacks include:

    • Recognize scams and report phishing. It’s important to remember that the IRS does not use unsolicited email and social media to discuss personal tax issues, such as those involving tax refunds, payments or tax bills. Don't reply, open any attachments or click any links. To report phishing, send the full email headers or forward the email as is to phishing@irs.gov; do not forward screenshots or scanned images of emails because this removes valuable information. Then delete the email.
    • Protect personal information. Refrain from revealing too much personal information online. Birthdates, addresses, age and financial information, such as bank accounts and Social Security numbers, are among things that should not be shared freely. Encrypt sensitive files such as tax records stored on computers.
    • Use strong passwords. Consider using a password manager to store passwords.
    • Enable multi-factor authentication (MFA). Use this for extra security on online accounts.
    • Use and update computer and phone software. Enable automatic updates to install critical security updates, including anti-virus and firewall protections.
    • Use a VPN. Criminals can intercept personal information on insecure public Wi-Fi networks. Individuals are encouraged to always use a virtual private network (VPN) when connecting to public Wi-Fi.


  • 28 Oct 2024 10:04 AM | Anonymous

    Notice 2024-78 extends the temporary relief provided in Notice 2023-11, subject to the procedures and requirements of this notice, for certain foreign financial institutions (FFIs) required to report U.S. taxpayer identification numbers (U.S. TINs) for certain preexisting accounts.  The extension of the temporary relief granted by Notice 2023-11 is intended to enable the Internal Revenue Service (IRS) to continue to collect and analyze additional information for accounts without U.S. TINs.

    Notice 2024-78will be published in Internal Revenue Bulletin 2024-46, on November 12, 2024.


  • 25 Oct 2024 3:58 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced disaster tax relief for individuals and businesses in the Juneau area of Alaska, affected by flooding that began on Aug. 5, 2024. 

    Affected taxpayers now have until May 1, 2025, 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, this includes the City and Borough of Juneau in Alaska.

    Individuals and households that reside or have a business in this locality qualify for tax relief. The same relief will be available to any other localities 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 beginning on Aug. 5, 2024, and end on May 1, 2025 (postponement period). As a result, affected individuals and businesses will have until May 1, 2025, to file returns and pay any taxes that were originally due during this period. 

    This means, for example, that the May 1, 2025, deadline will now apply to: 

    • Any 2024 individual or business tax return normally due during March or April 2025.
    • Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the flooding occurred. 
    • 2024 quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025, and 2025 quarterly estimated tax payments normally due on April 15, 2025.
    • Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 31 and April 30, 2025. 

    In addition, penalties for failing to make payroll and excise tax deposits due on or after Aug. 5, 2024, and before Aug. 20, 2024, will be abated, as long as the deposits were made by Aug. 20, 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 unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated. 

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

    Additional tax relief 

    Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). 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 – 4836-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 the flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov

    Reminder about tax return preparation options 

    • 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.


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