IRS Tax News

  • 18 Aug 2022 11:10 AM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds taxpayers who’ve yet to file their 2021 federal income tax return to make sure they take advantage of the deductions and credits for which they’re entitled and to file electronically as soon as possible.

    “Each year, eligible taxpayers overlook money saving deductions and credits that can help them with the cost of raising a family, daycare, paying for college, saving for retirement or making a donation to charity,” said IRS Commissioner Chuck Rettig. “We want to ensure they’re aware of all the tax benefits for which they may qualify.”

    This year, the IRS received about 19 million requests for extensions to file until Oct. 17. Those who qualify can prepare and file their return for free with IRS Free File. Electronically filing and choosing direct deposit can help taxpayers get their refund faster. If they owe, sending the tax return with full payment prevents additional interest and penalties. There's no penalty for failure to file if the taxpayer is due a refund.

    Filing tips for taxpayers who haven’t filed their 2021 tax return are available on

    Taxpayers should consider the following tax benefits when filing their tax return:

    • Earned Income Tax Credit: Qualified low- to moderate-income workers and families may get a tax break.
    • Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021.
    • Child and Dependent Care Credit: Families who pay expenses for the care of a qualifying individual so they can work, or look for work, can get a tax credit worth up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons.
    • Recovery Rebate Credit (RRC): Those who missed out on last year's third round of Economic Impact Payments (EIP3), also known as stimulus payments, may be eligible to claim the RRC. This credit can also help eligible people whose EIP3 was less than the full amount, including those who welcomed a child in 2021.
    • Deduction for gifts to charity: The majority of taxpayers who take the standard deduction can deduct eligible cash contributions they made to charity during 2021. Married couples filing jointly can deduct up to $600 in cash donations and individual taxpayers can deduct up to $300 in donations. In addition, itemizers who make large cash donations often qualify to deduct the full amount in 2021.
    • American Opportunity Tax Credit and the Lifetime Learning Credit: Tax credits for higher education can help offset taxpayers’ tuition and other costs by reducing the amount of tax owed on their tax return.
    • Retirement Savings Contributions Credit (Saver’s Credit): A tax credit is available for making eligible contributions to an individual retirement account or employer-sponsored retirement plan.

    Helpful reminders

    The IRS urges taxpayers to ensure they have all their year-end statements in hand before filing their 2021 return. Besides W-2s and 1099s, this includes two statements issued by the IRS – Letter 6419, showing their total advance Child Tax Credit payments, and Letter 6475, showing their total EIP3 payments.

    Individuals can also use their IRS Online Account to see the total amounts of their third round of Economic Impact Payments or advance Child Tax Credit payments. Married spouses who received joint payments will each need to sign into their own account to retrieve their separate amounts.

    Taxpayers can find answers to questions, forms and instructions, and easy-to-use tools online at They can use these resources to get help when it's needed at home, at work or on the go.

    Adjust 2022 withholding now to avoid tax surprises next year

    Summer is a great time for taxpayers to check their 2022 withholding to avoid a tax surprise when they file next year. Life events like marriage, divorce, having a child or a change in income can affect taxes. Too little tax withheld can lead to a tax bill or penalty. Too much can mean the taxpayer won’t have use of the money until they get their tax refund in 2023.

    The IRS Tax Withholding Estimator on helps employees assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding. If a change is recommended, the estimator will provide instructions to update their withholding with their employer, either online or by submitting a new Form W-4, Employee's Withholding Allowance Certificate.

    Find a Taxpayer Assistance Center

    The Taxpayer Assistance Center Locator tool has a new look and feel, featuring a dynamic map, a directions button and two tabs for entering search criteria. It’s important to remember that Taxpayer Assistance Centers operate by appointment only. Taxpayers must make an appointment by calling the number for the office they want to visit.

    Read information in other languages

    Many pages on are now available in Spanish, Vietnamese, Russian, Korean, Haitian Creole and Chinese. Some of the multilingual resources include the Taxpayer Bill of Rights, e-file resources and many tax forms and publications.

  • 17 Aug 2022 3:10 PM | Anonymous

    WASHINGTON — As part of a larger effort to expand tax resources in more languages, the Internal Revenue Service announced today the addition of a translation of the Instructions for Form 8821, Tax Information Authorization, in traditional Chinese.

    A Tax Information Authorization (TIA) is a critical form often used in assisting taxpayers with their IRS tax matters. Form 8821 is a taxpayer's written authorization designating one or more third parties, including an entity, to receive and view the taxpayer's information.

    The designee(s) may inspect or receive confidential tax information for the tax matters, forms and periods specified on Form 8821. This authorization includes the right to receive verbal and written account information (e.g., transcripts) and copies of IRS notices. The designee(s) of a TIA can be anyone the taxpayer chooses, including family and friends.

    Form 8821 and its instructions were already available in English and Spanish; also making the instructions available in traditional Chinese will expand access and understanding of this important process.

    “This is another step we’ve taken in our ongoing efforts to do more to help taxpayers in their most comfortable language,” said IRS Commissioner Chuck Rettig. “Providing Chinese-language instructions for this form helps ensure additional taxpayers with limited English proficiency can understand the authorization they’re giving to those who are helping them with tax matters.”

    While Form 8821 is not yet available in traditional Chinese, the Instructions for Form 8821 (zh-t) in traditional Chinese joins other multilingual forms and publications available to assist tax professionals and third-party designees:

    Most tax professionals now use the online Tax Pro Account at Tax Pro Account allows for faster processing of certain Form 8821 authorizations versus filing Form 8821; most online requests record immediately to the Centralized Authorization File (CAF). See the Instructions for Form 8821 for details.

    Increasing the availability of services and tax products that are easy to use and support the needs of all communities is part of the IRS’s recently released new five-year Strategic Plan that outlines the agency’s goals to improve taxpayer service and tax administration. Information about IRS services available in languages other than English is available at

    IRS multilingual resources
    The IRS also has a Languages webpage available in 20 languages to help taxpayers find basic tax information. Some of the multilingual resources include the Taxpayer Bill of Rights, e-file resources and many tax forms and publications. Other available multilingual resources include:

    Alternative media resources for blind, sight-impaired individuals
    The IRS recently announced that the agency’s Alternative Media Center (AMC) is converting IRS Form 1040, its main schedules and six publications in Spanish Braille and large print. Taxpayers can download forms and instructions from the Accessible Forms and Publications page of or request copies by going to or calling 800-829-3676.

    If a taxpayer has questions about IRS accessibility services, they can contact the Accessibility Helpline at 833-690-0598. This helpline does not have access to taxpayers' IRS accounts. For help with tax law, refunds or other account-related issues, visit the Let Us Help You page on

  • 16 Aug 2022 2:23 PM | Anonymous

    Revenue Ruling 2022-17 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

    The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

    Revenue Ruling 2022-17 will be in IRB:  2022-36, dated September 6, 2022. 

  • 16 Aug 2022 11:52 AM | Anonymous

    WASHINGTON – The Security Summit partners today concluded a special summer education campaign by outlining steps tax professionals can take to help clients from becoming statistics in identity-theft related tax-fraud scams.

    The IRS, state tax agencies and the tax industry – working together as the Security Summit – have been combatting identity theft since 2015. This is the final part in a five-part summer series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data. The “Protect Your Clients; Protect Yourself” campaign is an effort to urge tax professionals to secure their computer systems and protect client data following the pandemic and its aftermath.

    “Identity thieves always seem to find a hook to lure victims, and we increasingly see tax professionals as a target given the sensitive client data they handle,” said IRS Commissioner Chuck Rettig. “Tax professionals have their hands full taking care of their clients and staying on top of the latest in professional developments. But they shouldn’t overlook the basics of protecting their data and their systems. Missing these basic steps can be devastating to a tax pro – and their clients. But a few common-sense steps and being aware of security basics can go a long way to provide important protection.”

    While many may be working from home either full- or part-time, the IRS and Security Summit partners urge the use of virtual private networks, or VPNs, to securely conduct business.

    Online business/commerce and banking should only be done while using a secure browser connection -never at a coffee shop, restaurant or other business offering ‘free wifi.’ One way users can tell if they’re using a secure browser is by looking for a small lock visible in the lower right corner or upper left of the web browser window.

    Some additional considerations:

    • Be cautious of email attachments and web links. Do not open a link or attachment that arrives unexpectedly. Always call the sender to confirm receipt and validity of any unexpected links or attachments before opening.
    • Use separate personal and business computers, mobile devices and email accounts. This is particularly important for those who may share hardware with other family members, especially children, who may not be aware of safety protocols.
    • Do not send sensitive business information to personal email devices. Do not conduct business, including online business banking, on a personal computer or device. Likewise, do not engage in web surfing, gaming or video downloading on business computers or devices.
    • Do not share USB drives or external hard drives between personal and business computers or devices. Never connect an unknown/untrusted piece of hardware into the system or network. Also do not insert any unknown CD/DVD or USB drive. Disable the “Autorun” feature for USB ports and optical drives on business computers to help prevent malicious programs from being installed.
    • Be careful with downloads. Do not download software from an unknown web page. Always exercise caution with freeware or shareware.
    • Use strong passwords. Never give out usernames or passwords to others. Strong passwords consist of a random sequence of letters to include upper and lower-case, numbers and special characters. Ideally, passwords should be at least 12 characters long. For systems or applications that have sensitive information, use multiple forms of identification (multifactor or dual-factor authentication).
    • Change default passwords. Many devices come with default administrative passwords. Change them immediately and regularly thereafter. Default passwords are easily found or known by hackers.
    • Change passwords often. Every three months is recommended. Consider using a password management application to store passwords. Passwords to devices and applications that contain business information should not be reused.

    Additional resources
    In addition to reviewing IRS Publication 4557, Safeguarding Taxpayer Data, tax professionals can also get help with security recommendations by reviewing Small Business Information Security: The Fundamentals by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well.

    Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on

  • 15 Aug 2022 3:57 PM | Anonymous

    Notice 2022-34 announces that the Department of the Treasury and the Internal Revenue Service intend to amend the regulations under section 987 to defer the applicability date of the final regulations under section 987, as well as certain related final regulations, by one additional year.  The applicability date of these regulations has been deferred under prior notices to taxable years beginning after December 7, 2022.  The Treasury Department and the IRS intend to amend §§1.861-9T, 1.985-5, 1.987-11, 1.988-1, 1.988-4, and 1.989(a)-1 of the 2016 final regulations and §§1.987-2 and 1.987-4 of the 2019 final regulations (the related 2019 final regulations) to provide that the 2016 final regulations and the related 2019 final regulations apply to taxable years beginning after December 7, 2023.  The Notice also states that taxpayers may rely on certain related proposed regulations that cross-reference temporary regulations which have expired.

    Notice 2022-34 will be published in Internal Revenue Bulletin 2022-34 on Aug. 22, 2022.

  • 15 Aug 2022 3:48 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct. 1, 2022.

    For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. Here is a complete list of the new rates:

    • 6% for overpayments [5% for corporations]. (payments made in excess of the amount owed)
    • 3.5% for the portion of a corporate overpayment exceeding $10,000.

    • 6% for underpayments. (taxes owed but not fully paid)
    • 8% 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 3 percentage points.

    Generally, for a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 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 (0.5) of a percentage point.

    The interest rates announced today are computed from the federal short-term rate determined during July 2022. See the revenue ruling for details.

    Revenue Ruling 2022-15,

    announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2022-35, dated Aug. 29, 2022.

  • 15 Aug 2022 2:27 PM | Anonymous

    Revenue Ruling 2022-15 provides interest rates, underpayments and overpayments, for the quarter beginning Oct. 1, 2022. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning October 1, 2022, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.


    Revenue Ruling 2022-15 will be published in Internal Revenue Bulletin 2022-35 on Aug. 29, 2022.

  • 15 Aug 2022 9:34 AM | Anonymous

    Beginning August 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic Notice for Tax-Exempt Organizations (e-Postcard), must sign into the IRS modernized authentication platform using either their active IRS username or create an account with, the current IRS credential service provider.

    When accessing the Form 990-N submission page, Form 990-N filers have three options:

    1. Sign in with their active IRS username: Users with an active IRS username have the option to access the Form 990-N submission page using their existing IRS credentials or they can choose to create a new account with
    2. Sign in with their existing account: Users that have an account to access other IRS online services or from a state or federal agency can sign in using their existing account.
    3. Create a new account: Users that don’t have an active IRS username credential must register and sign in with account creation requires an email address and multifactor authentication. Form 990-N filers who have an existing IRS username and register for an account must use the same email address.

    For Form 990-N filing instructions, see Publication 5248, Form 990-N Electronic Filing System User Guide (PDF).

    The filing process has not changed for organizations that file Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

    Free Online Training for Small to Mid-Sized Section 501(c)(3) Charities

    The IRS provides interactive online training to help officers, board members and volunteers maintain your organization's Section 501(c)(3) tax-exempt status - including a course on filing Form 990-series annual returns. The Virtual Small to Mid-Sized Tax-Exempt Workshop at is an important resource for all charities, old and new. 

  • 10 Aug 2022 12:21 PM | Anonymous

    WASHINGTON — Storm victims in parts of Missouri now have until Nov. 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

    The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, individuals and households that reside or have a business in the Independent City of St. Louis, as well as St. Charles, Montgomery and St. Louis counties in Missouri, qualify for tax relief. The same relief will be available to any other locality added later by FEMA. The current list of eligible localities is always available on the disaster relief page on

    The tax relief postpones various tax filing and payment deadlines that occurred starting on July 25, 2022. As a result, affected individuals and businesses will have until Nov. 15, 2022, to file returns and pay any taxes that were originally due during this period.

    This means individuals who had a valid extension to file their 2021 return due to run out on Oct. 17, 2022, will now have until Nov. 15, 2022, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. 

    The Nov. 15, 2022 deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2022, and the quarterly payroll and excise tax returns normally due on Aug. 1 and Oct. 31, 2022. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2021 extensions run out on Sept. 15, 2022 and calendar-year corporations whose 2021 extensions run out on Oct. 17, 2022.    

    In addition, penalties on payroll and excise tax deposits due on or after July 25, 2022 and before Aug. 9, 2022, will be abated as long as the deposits were made by Aug. 9, 2022.

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

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

    In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

    Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021). Be sure to write the FEMA declaration number – DR-4665-MO − on any return claiming a loss. See Publication 547 for details.

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

  • 10 Aug 2022 12:10 PM | Anonymous

    WASHINGTON – As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year.

    This is the first time the annual limit has increased since the special educator expense deduction was enacted in 2002. For tax years 2002 through 2021, the limit was $250 per year. The limit will rise in $50 increments in future years based on inflation adjustments.

    For 2022, an eligible educator can deduct up to $300 of qualifying expenses. If they’re married and file a joint return with another eligible educator, the limit rises to $600. But in this situation, not more than $300 for each spouse.

    Who qualifies?
    Educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide in a school for at least 900 hours during the school year. Both public and private school educators qualify.

    What's deductible?
    Educators can deduct the unreimbursed cost of:

    • Books, supplies and other materials used in the classroom.
    • Equipment, including computer equipment, software and services.
    • COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers and other items recommended by the Centers for Disease Control and Prevention.
    • Professional development courses related to the curriculum they teach or the students they teach. But the IRS cautions that, for these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. For details, see Publication 970, Tax Benefits for Education, particularly Chapter 3.

    Qualified expenses don’t include the cost of home schooling or for nonathletic supplies for courses in health or physical education. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, cancelled checks and other documentation.

    Reminder for 2021 tax returns being filed now: Deduction limit is $250
    For those who received a tax filing extension or still need to file a 2021 tax return, the IRS reminds any educator still working on their 2021 return that the deduction limit is $250. If they are married and file a joint return with another eligible educator, the limit rises to $500. But in this situation, not more than $250 for each spouse.

    File electronically when ready. Tax-filing software uses a question-and-answer format that makes doing taxes easier. Whether a return is self-prepared or prepared with the assistance of a tax professional or trained community volunteer, the IRS urges everyone to file electronically and choose direct deposit for refunds. For details, visit

    In addition, the IRS urges anyone who owes taxes to choose the speed and convenience of paying electronically, such as with IRS Direct Pay, a free service available only on For information about this and other payment options, visit

    Taxpayers who requested more time to file an accurate return have until Oct. 17, 2022. Those who have what they need to file, however, should file as soon as possible to avoid delays in processing their return. Taxpayer are urged to file electronically when they are ready and avoid the last-minute rush to file at the deadline.

©2019, Virginia Society of Tax & Accounting Professionals, formerly The Accountants Society of Virginia, 
is a 501(c)6 non-profit organization.

8100 Three Chopt Rd. Ste 226 | Richmond, VA 23229 | Phone: (800) 927-2731 |

Powered by Wild Apricot Membership Software