WASHINGTON — The Internal Revenue Service today reminded taxpayers, businesses, tax professionals and others to take advantage of a wide variety of free IRS e-mail subscription services that feature things like the annual "Dirty Dozen" list of tax scams, which is coming this month.

The e-News Subscription service issues tax information by email for many different audiences providing tips, tools and helpful materials of interest to taxpayers  and organizations. Among others, the IRS offers subscription services tailored to tax exempt and government entities, small and large businesses as well as individuals. The service is easy to use; sign up for by visiting IRS e-News Subscriptions.

The IRS currently has 20 registration-based e-News options, including: 

For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions. The resources will help taxpayers and organizations keep up with the latest information during and after filing season.

WASHINGTON – Victims of this week’s tornadoes and severe storms in parts of Tennessee, including Nashville, will have until July 15, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Davidson, Putnam and Wilson counties, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on March 3. As a result, affected individuals and businesses will have until July 15, 2020, to file returns and pay any taxes that were originally due during this period. This includes 2019 individual and business returns normally due on April 15, as well as various 2019 business returns due on March 15. Among other things, this also means that affected taxpayers will have until July 15 to make 2019 IRA contributions.

The July 15 deadline also applies to quarterly estimated income tax payments due on April 15 and June 15 and the quarterly payroll and excise tax returns normally due on April 30. It also applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2019 return due on May 15.    

In addition, penalties on payroll and excise tax deposits due on or after March 3 and before March 18 will be abated as long as the deposits are made by March 18.

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 2020 return normally filed next year), or the return for the prior year. This means that taxpayers can, if they choose, claim these losses on the 2019 return they are filling out this tax season. Be sure to write the FEMA declaration number – 4476 − 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 disasterassistance.gov.

Notice 2020-14 sets forth the 2020 Cumulative List of Changes in Plan Qualification Requirements for Pre-Approved Defined Benefit Plans (2020 Cumulative List). The 2020 Cumulative List sets forth specific matters the IRS has identified for review in determining whether a defined benefit plan document that has been filed for an opinion letter has been properly updated. The provisions in the 2020 Cumulative List include statutory and regulatory provisions that were issued between October 1, 2012 and December 1, 2019.

Notice 2020-14 will be in IRB:    2020-13, dated March 23, 2020.

WASHINGTON — The Internal Revenue Service has updated two comprehensive publications designed to help anyone making IRA contributions or receiving IRA distributions for tax year 2019 or considering making retirement donations before April 15, 2020.

The 2019 editions of Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) and Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), are both now available on IRS.gov. Both publications address the unique features of both Roth and traditional IRAs.

Most people who work can make contributions to a traditional or Roth IRA. Contributions to a traditional IRA are usually tax deductible and distributions are generally taxable. On the other hand, contributions to a Roth IRA are not tax deductible, but qualified distributions are tax-free. Taxpayers can make contributions until April 15, 2020, and count them on their 2019 tax returns.

Publication 590-A explains the rules for contributing to an IRA, with examples and worksheets illustrating how to correctly figure the contribution and deduction limits. Other topics covered include rollovers, trustee-to-trustee transfers and what to do if too much is contributed to an IRA.

Publication 590-B explains how to correctly figure required minimum distributions (RMDs) from traditional IRAs. In 2019, the RMD rules generally apply to anyone born before July 1, 1949. Those who turned 70½ during 2019 can choose to wait until April 1, 2020, to take their first RMD.

Examples and worksheets help illustrate the calculation. There is also a discussion of qualified charitable distributions (QCDs), including how to count them toward an RMD. For those who take money out of an IRA before reaching 59½, the publication also covers situations where the 10% tax on early distributions does and does not apply.

For those planning ahead for 2020 and future years, legislation enacted in December made several changes affecting IRAs and other retirement plans. One change generally allows those born after June 30, 1949, to wait until they turn 72 to begin taking distributions from their traditional IRAs. Another allows those 70½ or older to make contributions to traditional IRAs.

For details, visit IRS.gov/RMD or see fact sheet FS-2020-4, also available on IRS.gov.

WASHINGTON – As part of a continuing focus on compliance issues, the Internal Revenue Service announced today that Damon Rowe will serve as the agency’s director of the newly created Fraud Enforcement Office beginning in mid-March.

Rowe and the new office will reside in the IRS Small Business/Self Employed Division and work on agency-wide compliance issues. He will serve as the principal advisor and consultant to IRS Division Commissioners and Deputy Commissioners on all issues involving Fraud Enforcement strategic plans, programs and policy.

A veteran of IRS Criminal Investigation, he will also provide agency-wide executive leadership and direction in the design, development and delivery of major activities within the Fraud Enforcement office in support of IRS efforts to detect and deter fraud while strengthening the National Fraud Program.

In addition to leveraging existing law enforcement relationships, Rowe will have a continued focus on unscrupulous activities of taxpayers and professional enablers that undermine our Federal Tax Laws in a manner that is consistent and fair to the American public. With additional training, resources and applied analytics, SBSE will thwart emerging threats as it relates to fraudulent filings and related activities.

“Our compliance and enforcement functions are working together to improve tax administration for everyone,” said IRS Commissioner Chuck Rettig. “Every compliance employee has a commitment for a general awareness of tax fraud related issues, which is a priority for the agency. Damon’s exceptional leadership skills, background and expertise will strongly support agency determinations regarding the existence of fraud, and, just as important, determinations where a fraud referral should not occur. We are proud to have Damon lead the coordination of our fraud enforcement efforts.”

Eric Hylton, SBSE Commissioner, noted that Rowe will continue to strengthen the internal compliance relationships in the IRS between CI agents and civil-side revenue agents and revenue officers as well as work with external partners. In the past two years, revenue officers have been the single largest supplier of criminal fraud and deterrence referrals and account for most accepted case referrals.

“Damon’s selection to this new office will help strengthen our compliance work and is yet an additional opportunity to engineer partnerships with the tax professionals as well as strengthen our capacity and resolve across all business units with coordinated enforcement efforts,” Hylton said. “Fraud Policy will be getting more attention this year to ensure it has the staff and resources it needs to expand detection and deterrence efforts of our campus and field employees across the IRS.”

As the agency expands its enforcement presence, Rowe will also work with Brendan O’Dell, the new Promoter Investigation Coordinator, to pursue potential fraud referrals regarding abusive promoters.

Prior to this position, Rowe served as Executive Director of International Operations for Criminal Investigation (CI) where he was responsible for ensuring international law enforcement cooperation between foreign governments and CI field offices. Previously, he served as Special Agent in Charge of the Los Angeles and Dallas Field offices and Assistant Special Agent in Charge for the New Orleans Field Office.

Rowe began his IRS career as a special agent in 1998. He holds a Bachelor of Accounting degree from the University of Houston, a J.D. from Texas Southern University, and a Master of Legal Letters in Taxation from Southern Methodist University School of Law. Rowe is a member of the Texas Bar.

WASHINGTON — The Internal Revenue Service today reminded taxpayers that if they need to make a tax payment or owe and can’t pay, the IRS offers several options.

This news release is part of a series of IRS tips called the Tax Time Guide, designed to help taxpayers file an accurate tax return.

This year’s tax-filing deadline is April 15. Taxpayers should know before they owe. The IRS encourages all taxpayers to check their withholding with the IRS Withholding Estimator.

Taxpayers who do end up owing taxes this year can choose among the following quick electronic payment options:

Taxpayers must file their 2019 tax returns by April 15, 2020, or request a six-month extension; however, any taxes owed are still due on April 15. If they can’t pay, taxpayers should still file an extension to avoid the higher penalties for not filing at all.

Extensions can be requested using Free File, by filing Form 4868 or by paying all or part of  the income tax due and indicating that the payment is for an extension or Form 4868 using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a credit or debit card. Taxpayers paying electronically do not have to file a separate extension form and they receive a confirmation number for their records.

Taxpayers who choose to pay by check or money order should make the payment out to the “United States Treasury.” To help ensure that the payment gets credited promptly, also enclose a Form 1040-V payment voucher. Also, print on the front of the check or money order: “2019 Form 1040”; name; address; daytime phone number; and Social Security number.

Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review their payment history; and view key tax return information for the current year as originally filed.

Owe tax? IRS has a plan − Taxpayers who owe but cannot pay the balance in full have options and should not delay in resolving their balance. Interest and penalties grow the longer the debt is owed. Often, these taxpayers qualify for one of several relief programs.

Most individual taxpayers and many business taxpayers may qualify to use Online Payment Agreement to set up a payment plan.

Available payment plan options include a full-pay agreement, a short-term plan of up to 120 days to pay in full, or a long-term monthly payment plan (installment agreement). The amount owed and tax filing compliance determines which payment plan options may be available

Taxpayers can setup a plan on IRS.gov/paymentplan in a matter of minutes. There is no paperwork, there is no need to call, write or visit the IRS. Setup fees may apply for some types of plans.

Offer in Compromise − Some taxpayers may qualify for an Offer in Compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. To help determine eligibility, individual taxpayers may use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.

Taxpayers can find answers to tax questions, tax forms and instructions and easy-to-use tools online at IRS.gov 24 hours a day, seven days a week. No appointments needed and no waiting on hold.

IRS YouTube Videos:
Free Help Preparing Your Tax Return – English | Spanish | ASL
Do-It-Yourself Free Tax Preparation – English | Spanish | ASL

WASHINGTON –– The Internal Revenue Service reminds taxpayers that free tax help is available in-person at nearly 11,000 volunteer sites nationwide and online through IRS Free File.

This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

Get free tax help from volunteers
During the 2019 filing season, volunteers helped prepare over 3.5 million returns at thousands of tax sites nationwide. The Volunteer Income Tax Assistance (VITA) program offers free tax help to individuals who generally make $56,000 or less, persons with disabilities, the elderly and individuals with limited English proficiency who need assistance in preparing their taxes. The Tax Counseling for the Elderly (TCE) program also offers free tax help to taxpayers, particularly those age 60 and older.

IRS-certified VITA and TCE volunteers are trained to help taxpayers claim the tax credits they are entitled to such as the Earned Income Tax Credit and the Child Tax Credit and Credit for Other Dependents.

The Earned Income Tax Credit (EITC) is a significant tax credit for workers who earned $55,952 or less in 2019. The IRS estimates four of five eligible taxpayers claim and get the EITC. Nationwide in 2019, 25 million taxpayers received over $61 billion in EITC. The average EITC amount received was $2,504. The EITC is as much as $6,557 for a family with children or up to $529 for taxpayers who do not have a qualifying child.

The VITA and TCE programs can help answer many EITC questions and help taxpayers claim the credit if they qualify. Taxpayers may also use the IRS.gov EITC Assistant to help them determine their eligibility.

To find the nearest VITA or TCE site, taxpayers can use the VITA and TCE locator tool available on IRS.gov, download the IRS mobile app IRS2GO or call 800-906-9887. Help in other languages – Chinese, Cantonese, Hindi, Korean, Mandarin, Russian, Spanish, Tagalog and Vietnamese – is also available at select locations across the country. The locator tool indicates where these services are offered.

For assistance preparing a tax return at a VITA or TCE site, taxpayers must bring all required documents and information including:

Use IRS Free File online
Taxpayers that want to prepare and file their tax returns electronically can use IRS Free File. IRS Free File offers brand-name tax software for taxpayers who earned $69,000 or less in 2019 so they can prepare and file their tax federal returns free. Taxpayers who earned more can use Free Fillable Forms, the electronic version of IRS paper forms. IRS Free File is only available through the IRS website by visiting IRS.gov/freefile.

IRS Free File also allows the taxpayer to get an automatic extension of time to file.

Taxpayers who owe taxes can pay online by phone or with a mobile device and the IRS2Goapp.   When filing electronically they can pay with electronic funds withdrawal for free. Another option is to pay with their bank account using Direct Pay. All payment options are available on IRS.gov/payments.

Filing electronically and using direct deposit is the fastest and most accurate way to file. The IRS issues nine out of 10 refunds in 21 days or less. Taxpayers filing paper returns can choose direct deposit, but paper returns take longer to process.

Military service members and some veterans have more choices for free tax help
Military OneSource is a program funded by the Department of Defense that provides a range of free resources for military members, veterans and their families.

MilTax, Military OneSource’s tax service, provides online software for eligible individuals to electronically file a federal and up to three state returns for free.

More information about OneSource is available at MilitaryOneSource.mil or by calling 800-342-9647.
 
Get more help
Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov. No appointment required and no waiting on hold.

Revenue Procedure 2020-17 exempts from foreign trust information reporting requirements certain U.S. individuals’ transactions with, and ownership of, certain tax-favored foreign trusts that are established and operated exclusively or almost exclusively to provide pension or retirement benefits, or to provide medical, disability, or educational benefits.  In addition, this revenue procedure provides procedural guidance for certain eligible individuals on how to request abatement of penalties that have been assessed, or refunds of penalties that have been paid, for a failure to comply with the information reporting requirements regarding these foreign trusts.

Revenue Procedure 2020-17 will be in IRB 2020-12, dated March 16, 2020.

WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning April 1, 2020.  The rates will be: 

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, in the case of 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 January 2020 to take effect Feb. 1, 2020, based on daily compounding.

Revenue Ruling 2020-7, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2020-12, dated March 16, 2020.

Revenue Ruling 2020-07 provides the rates for interest determined under Section 6621 of the code for the calendar quarter beginning April 1, 2020, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.

Revenue Ruling 2020-07 will be published in Internal Revenue Bulletin 2020-12 on March 16, 2020.