The IRS has posted updated FAQs related to the Temporary procedures to fax certain Forms 1139 and 1045 due to COVID-19

Notice 2020-27 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code.  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under 431(c)(6)(E)(ii)(I), as reflected by the application of § 430(h)(2)(C)(iv).  

Notice 2020-27 will be in IRB: 2020-19, dated May 4, 2020.

Revenue Ruling 2020-11 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, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

Revenue Ruling 2020-11 will be in IRB:  2020-19, dated May 4, 2020.

WASHINGTON – The Internal Revenue Service, working in partnership with the Treasury Department and the Social Security Administration, announced today that recipients of Supplemental Security Income (SSI) will automatically receive automatic Economic Impact Payments.

SSI recipients will receive a $1,200 Economic Impact Payment with no further action needed on their part. The IRS projects the payments for this group will go out no later than early May.

Moving SSI recipients into the automatic payment category follows weeks of extensive cooperative work between SSA, Treasury, IRS as well as the Bureau of Fiscal Services.

“Since SSI recipients typically aren’t required to file tax returns, the IRS had to work extensively with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,” said IRS Commissioner Chuck Rettig. “Additional programming work remains, but this step simplifies the process for SSI recipients to quickly and easily receive these $1,200 payments automatically. We appreciate the assistance of SSA and the Bureau of Fiscal Services in this effort.”

No action needed by most taxpayers
Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don’t typically file tax returns. People in these groups are expected to see the automatic $1,200 payments later this month.

Eligible taxpayers who filed tax returns for 2019 or 2018 will also receive the payments automatically. About 80 million payments are hitting bank accounts this week.

For benefit recipients with dependents, extra step needed to claim $500 for children
The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic.

However, many benefit recipients typically aren’t required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn’t file a tax return in 2018 or 2019.

For those who receive Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI and have a qualifying child, they can quickly register by visiting special tool available only on IRS.gov and provide their information in the Non-Filers section. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these groups do not provide their information to the IRS soon, they will have to wait until later to receive their $500 per qualifying child.

The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. Recipients will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits.

For those with dependents who use Direct Express debit cards, additional information will be available soon regarding the steps to take on the IRS web site when claiming children under 17.

For information about Social Security retirement, survivors and disability insurance beneficiaries, please visit the SSA website at SSA.gov.

General information about the Economic Impact Payments is available on a special section of IRS.gov.

Watch out for scams related to Economic Impact Payments
The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

More information
The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available. 

WASHINGTON – Working with the Treasury Department, the Internal Revenue Service today unveiled the new Get My Payment with features to let taxpayers check on their Economic Impact Payment date and update direct deposit information.

With an initial round of more than 80 million Economic Impact Payments starting to hit bank accounts over the weekend and throughout this week, this new tool will help address key common questions. Get My Payment will show the projected date when a deposit has been scheduled, similar to the “Where’s My Refund tool” many taxpayers are already familiar with.

Get My Payment also allows people a chance to provide their bank information. People who did not use direct deposit on their last tax return will be able to input information to receive the payment by direct deposit into their bank account, expediting receipt.

“Get My Payment will offer people with a quick and easy way to find the status of their payment and, where possible, provide their bank account information if we don’t already have it,” said IRS Commissioner Chuck Rettig. “Our IRS employees have been working non-stop on the Economic Impact Payments to help taxpayers in need. In addition to successfully generating payments to more than 80 million people, IRS teams throughout the country proudly worked long days and weekends to quickly deliver Get My Payment ahead of schedule.”

Get My Payment is updated once daily, usually overnight. The IRS urges taxpayers to only use Get My Payment once a day given the large number of people receiving Economic Impact Payments.

How to use Get My Payment
Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process.

• • For taxpayers to track the status of their payment, this feature will show taxpayers the payment amount, scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled. They will need to enter basic information including:
  • • Social Security number
    • Date of birth, and
    • ailing address used on their tax return.
• Taxpayers needing to add their bank account information to speed receipt of their payment will also need to provide the following additional information:
• • Their Adjusted Gross Income from their most recent tax return submitted, either 2019 or 2018
  • The refund or amount owed from their latest filed tax return
  • Bank account type, account and routing numbers

Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS. 

A Spanish version of Get My Payment is expected in a few weeks.

Don’t normally file a tax return? Additional IRS tool helps non-filers
In addition to Get My Payment, Treasury and IRS have a second a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.

The Non-filers: Enter Payment Info tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The new web tool is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

Non-filers: Enter Payment Info is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement, disability (SSDI), or survivor benefits and Railroad Retirement benefits. Additional information is available at https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here.

No action needed by most taxpayers
Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement, or disability (SSDI), or survivor benefits and Railroad Retirement benefits.

General information about the Economic Impact Payments is available on a special section of IRS.gov: https://www.irs.gov/coronavirus/economic-impact-payment-information-center.

Watch out for scams related to Economic Impact Payments
The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

More information
The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available. 

WASHINGTON – The Internal Revenue Service and its Security Summit partners today urged tax professionals to take additional security steps immediately to protect taxpayer data as more practitioners telework and security risks increase.

The IRS, state tax agencies and the nation’s tax industry continue to see an upswing in data thefts from tax professionals as cybercriminals try to take advantage of COVID-19 and Economic Impact Payments to create new scams.

“Identity thieves view the pandemic as a chance to exploit tax professionals as well as taxpayers,” said IRS Commissioner Chuck Rettig. “They are using every trick of their criminal trade to con people as well as steal valuable personal and financial information to help enable tax-related identity theft. In many ways, tax pros are one of the first lines of defense. We urge the entire tax community to take additional steps and protect their sensitive data.”

The partners in the Security Summit – including the IRS, state tax agencies and private-sector tax industry – continue working closely together to watch for new threats during the coronavirus.

In addition, IRS Criminal Investigation is actively working to combat scam artists trying to exploit Economic Impact Payments and other provisions related to coronavirus. So far, the scams CI has already seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS CI is prioritizing these types of investigations to help protect taxpayers and the tax system.

Tax Pros: Use a Virtual Private Network for extra security
All tax professionals who are teleworking should be using an encrypted Virtual Private Network or VPN. A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the internet and the company network.

Cybercriminals can exploit various weaknesses, whether by using a phishing email or an unsecured network, to gain control of a tax professional’s computer. Once they have remote control, they can either steal data or complete and file client tax returns but change the bank account information for refunds.

The government cannot recommend a VPN provider, but tax professionals can ask trusted colleagues or search for “Best VPNs” to find a legitimate vendor. Major technology sites often provide lists of top services. Never fall for “pop-ups” on websites for VPN or any kind of security software. Those generally are all scams.

Multi-Factor Authentication helps protect data
This year, most tax software providers for tax professionals and for taxpayers are offering the option of multi-factor authentication. Security Summit partners urge the use of this option.

Multi-factor authentication means a returning user to the software product must enter not only their credentials (username/password) but also a security code, generally sent as a text to a mobile phone. The idea is the thieve may compromise log-in credentials, but it is unlikely they will have stolen the mobile phone as well.

Multi-factor authentication protects the software account from being breached and from client data being stolen. Tax professionals should activate this feature immediately.

Avoid phishing scams
Identity thieves have stepped up phishing scam efforts to capitalize on COVID-19 and Economic Impact Payments. Crooks are targeting tax professionals as well as taxpayers.

Tax professionals should beware of emails from criminals posing as potential clients. As people practice social distancing these days, criminals may exploit this process to try to trick tax practitioners into opening links or attachments. For example, crooks may present themselves as a new client and ask the practitioner to view the wage and income information they have in an attachment.

The Security Summit reminds tax professionals of simple steps to remember: Know your customers. Use the phone to confirm identities. And, don’t take the bait. 

Thieves also seek to impersonate tax software providers, cloud storage providers banks and others. Remember, phishing emails generally have an urgent message, i.e. your account password expired, and direct you to a link or attachment.

Taxpayers can report suspicious emails posing as the IRS to our *PHISHING mailbox at phishing@irs.gov.

Watch out for IRS impersonation scams
The IRS will not call, email or text anyone about Economic Impact Payments. These are impersonation scams by thieves seeking to steal bank account or other sensitive data. Do not fall for these scams.

Don’t forget security software
Everyone, especially all tax professionals, should be using broad-based security software that protects not just their computers but mobile phones as well. Security features will help identify and stop potentially dangerous malware that can infect digital networks.

For more help, the IRS and  the Security Summit partners urge tax practitioners to review the security measures outlined in Publication 4557, Safeguarding Taxpayer Data.

The IRS has updated FAQs regarding Form 1139 and Form 1045 to Claim Quick Refunds of the Credit for Prior Year Minimum Tax Liability of Corporations and Net Operating Loss Deductions

Revenue Procedure 2020-26 provides guidance relating to the tax qualification of certain securitization vehicles that hold mortgage loans for which borrowers have participated in forbearance programs arising from the COVID-19 emergency.  This revenue procedure also provides guidance for certain real estate mortgage investment conduits (REMICs) that acquire mortgage loans for which borrowers have participated in forbearance programs arising from the COVID-19 emergency.

WASHINGTON – The Internal Revenue Service reminds taxpayers they have several options to schedule and pay federal taxes electronically that are due on July 15. Taxpayers with payments scheduled for April 15 also have a midnight Monday deadline to reschedule payments.

Several options allow taxpayers to schedule payments up to a year in advance. For taxpayers using Direct Pay and Electronic Funds Withdrawal (EFW) with payments scheduled for April 15, they will need to take special steps to reschedule their payments if they would like a later date. Direct Pay and EFW users with a scheduled April 15 deadline will need to reschedule these payments before midnight Eastern time on Monday.

In Notice 2020-18 (PDF), the Treasury Department and the Internal Revenue Service announced special Federal income tax return filing and payment relief in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency.

The Federal income tax filing due date is automatically extended from April 15 to July 15. Taxpayers can also defer federal income tax payments due on April 15 to July 15 without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Filing and paying federal taxes due by July 15

Taxpayers can schedule their payment electronically online, by phone or using their mobile device and the IRS2Go app.

Scheduling or rescheduling your payment

For taxpayers looking to reschedule or schedule their federal tax payments, the IRS offers two payment options where payments can be scheduled up to 365 days in advance. These two options are optimal for those who cancelled their payments that were due April 15 and want to reschedule their payment to the July 15 due date. They are:

Additional electronic payment options

Additional payment options and explanations on how to cancel payments already scheduled are available on IRS.gov/payments. 

Bank Account (Direct pay) You can pay for free with your bank account using Direct Pay, where taxpayers can schedule a payment up to 30 days in advance. Payments for the July 15 due date can be scheduled beginning June 15. Scheduled payments need to be cancelled at least two days in advance. This means taxpayers who originally scheduled their payment on April 15 and want to reschedule it for later need to take action no later than Monday, April 13 at midnight Eastern time. 

Paying when filing electronically

Taxpayers who filed electronically and scheduled their payment with an Electronic Funds Withdrawal, and want to reschedule their payment to the July 15 due date, can call the IRS e-file Payment Services automated line at 888-353-4537 to cancel their payment no later than 11:59 p.m. Eastern time two business days prior to the scheduled payment date. This means taxpayers who originally scheduled their payment on April 15 and want to reschedule it for July 15, need to take action no later than Monday, April 13 at midnight Eastern time. Taxpayers are reminded that they will need to schedule their tax payment for the new tax deadline date of July 15.

EFW payments cannot be resubmitted. Taxpayers should select a different electronic payment option to reschedule the payments.  

Need more time to file?

Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension two ways.

Estimated Payments

Estimated tax payments, for tax year 2020, originally due April 15 and June 15 are now due July 15. Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. IRS offers two free electronic payment options, where taxpayers can schedule their estimated federal tax payments up to 30 days in advance, with Direct Pay or up to 365 days in advance, with the Electronic Federal Tax Payment System (EFTPS).

For details on how to cancel a specific type of payment, see question 14 in our Filing and Payment Deadlines Questions and Answers page.

Revenue Procedure 2020-22 provides guidance under section 163(j) relating to elections to be an electing real property or farming trade or business.  This revenue procedure also provides the time and manner for making three elections under section 2306 of the CARES Act relating to the section 163(j) limitation. 

Revenue Procedure 2020-22 will be in IRB:  2020-18, dated 4/27/2020.