IRS Tax News

  • 26 May 2020 3:35 PM | Anonymous

    Revenue Procedure 2020-33 provides guidance with respect to the United States and area median gross income figures that are to be used by issuers of qualified mortgage bonds, as defined in § 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in § 25(c), in computing the housing cost/income ratio described in § 143(f)(5).

    Revenue Procedure 2020-33 will be in IRB 2020-25, dated June 15, 2020.


  • 26 May 2020 12:40 PM | Anonymous

    WASHINGTON – The Internal Revenue Service has named attorney Carolyn Schenck as the National Fraud Counsel serving the agency’s new Fraud Enforcement Program.  

    Schenck currently serves as Assistant Division Counsel (International) in the Small Business/Self Employed (SB/SE) Division of the IRS Office of Chief Counsel. For more than 10 years, she has been assigned as counsel to the IRS Offshore Compliance Initiative. 

    “Carolyn is extremely well-regarded in the practitioner community and brings unparalleled experience to the job,” IRS Commissioner Chuck Rettig said.

    Schenck will be working closely with Eric Hylton, SB/SE Division Commissioner; Damon Rowe, Director of Fraud Enforcement; and Brendan O’Dell, the new IRS Promoter Investigation Coordinator. She will help provide advice on the Fraud Enforcement Program’s design, development, and delivery of major activities in support of Service-wide efforts to detect and deter fraud. 

    “We are very pleased with Carolyn’s selection as the Chief Counsel National Fraud Counsel, which could not have come at a more opportune time,” Chief Counsel Michael Desmond said. “With the critical role the IRS is playing in responding to the unprecedented challenges of the COVID pandemic, having someone with her talent and experience should send a strong signal that those who seek to take advantage of the situation will face dire consequences.”

    As Assistant Division Counsel (International), Schenck has been responsible for coordination and management of all international and offshore tax and Report of Foreign Bank and Financial Accounts (FBAR) matters under the jurisdiction of SB/SE Division Counsel. She helped to ensure the government consistently applies law and policy in international and offshore tax and FBAR matters, including in non-docketed cases and cases docketed in the U.S. Tax Court, U.S. district courts, the Court of Federal Claims and the U.S. Courts of Appeals. Schenck also provides guidance to and serves as the principal legal advisor and contact point on international and offshore tax and FBAR matters to the SB/SE Division and the Withholding and International Individual Compliance function of the IRS Large Business and International Division. Her international work also involves John Doe summons actions, the Offshore Voluntary Disclosure programs and Streamlined Filing Compliance Procedures, working with Treaty partners on cross-border issues and cases, and conducting nationwide trainings for attorneys and agents on investigative techniques, evidence and substantive tax issues.

    Schenck has litigated numerous cases in U.S. Tax Court on behalf of the IRS. She also works with IRS special enforcement agents on cases involving fraud, foreign accounts, and foreign reporting penalties; she also assists the Department of Justice in cases involving criminal tax prosecutions, injunctions, summons enforcement, and abusive tax return preparers and promoters. Schenck has also focused her efforts as of late on virtual currency with the civil and criminal divisions, to shape the compliance and enforcement efforts of the IRS. 

    Prior to joining the IRS, Schenck was an attorney for the Division of Enforcement at the Securities and Exchange Commission. She also worked for Chief Judge Alex Kozinski of the Ninth Circuit and Chief Judge H. Robert Mayer of the Federal Circuit Courts of Appeals. Before her law career, Schenck worked for U.S. Senator John McCain and as a weapons analyst.

  • 22 May 2020 2:44 PM | Anonymous

    WASHINGTON –The Treasury Department and the Internal Revenue Service today released updated state-by-state figures for Economic Impact Payments reflecting the opening weeks of the program.

    “Economic Impact Payments have continued going out at a rapid rate to Americans across the country,” said IRS Commissioner Chuck Rettig. “We remind people to visit IRS.gov for the latest information, including answers to the most common questions we see surrounding the payments. We also continue to urge those who don’t normally have a filing requirement, including those with little or no income, that they can quickly register for the payments on IRS.gov.”

    Millions of people who do not typically file a tax return are eligible to receive these payments. Payments are automatic for people who filed a tax return in 2018 or 2019, receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return in the last two years.

    For those who don’t receive federal benefits and didn’t have a filing obligation in 2018 or 2019, the IRS continues to encourage them to visit the Non-Filer tool at IRS.gov so they can quickly register for Economic Impact Payments. People can continue to receive their payment throughout the year. 

     

     

    Economic Impact Payments, totals by State.

    State

    State postal code

    Total Number of EIP Payments

    Total Amount of EIP Payments

    Alabama

    AL

    2,332,771

    $       3,988,469,624

    Alaska

    AK

    333,429

    $         580,774,111

    Arizona

    AZ

    3,242,043

    $       5,573,167,261

    Arkansas

    AR

    1,428,624

    $       2,496,524,966

    California

    CA

    16,869,636

    $     27,897,283,972

    Colorado

    CO

    2,605,089

    $       4,407,408,401

    Connecticut

    CT

    1,601,397

    $       2,609,644,445

    Delaware

    DE

    463,653

    $         778,262,906

    District of Columbia

    DC

    308,306

    $         421,734,460

    Florida

    FL

    10,618,792

    $     17,546,164,251

    Georgia

    GA

    4,763,109

    $       8,081,253,826

    Hawaii

    HI

    691,424

    $       1,179,264,436

    Iowa

    IA

    1,477,214

    $       2,660,402,672

    Idaho

    ID

    808,118

    $       1,512,453,150

    Illinois

    IL

    5,729,351

    $       9,630,495,809

    Indiana

    IN

    3,174,698

    $       5,613,824,661

    Kansas

    KS

    1,310,151

    $       2,359,448,490

    Kentucky

    KY

    2,199,370

    $       3,824,826,391

    Louisiana

    LA

    2,186,332

    $       3,680,836,165

    Maine

    ME

    714,941

    $       1,215,239,330

    Maryland

    MD

    2,692,062

    $       4,380,831,484

    Massachusetts

    MA

    3,136,787

    $       5,028,963,151

    Michigan

    MI

    4,813,156

    $       8,286,614,929

    Minnesota

    MN

    2,613,771

    $       4,577,086,990

    Mississippi

    MS

    1,427,440

    $       2,422,655,854

    Missouri

    MO

    2,933,973

    $     5,118,911,639

    Montana

    MT

    527,902

    $         932,003,084

    Nebraska

    NE

    887,877

    $       1,611,581,538

    Nevada

    NV

    1,496,510

    $       2,484,078,422

    New Hampshire

    NH

    676,004

    $       1,139,776,925

    New Jersey

    NJ

    3,955,396

    $       6,507,621,505

    New Mexico

    NM

    997,072

    $       1,684,917,178

    New York

    NY

    9,341,632

    $     15,034,060,259

    North Carolina

    NC

    4,820,974

    $       8,264,415,092

    North Dakota

    ND

    354,768

    $         632,983,746

    Ohio

    OH

    5,828,477

    $       9,833,041,489

    Oklahoma

    OK

    1,799,803

    $       3,190,860,867

    Oregon

    OR

    2,031,861

    $       3,425,278,483

    Pennsylvania

    PA

    6,258,107

    $     10,596,406,088

    Rhode Island

    RI

    536,218

    $         869,615,684

    South Carolina

    SC

    2,443,864

    $       4,174,979,940

    South Dakota

    SD

    416,962

    $         759,483,658

    Tennessee

    TN

    3,305,606

    $       5,693,071,645

    Texas

    TX

    12,396,590

    $     21,635,810,592

    Utah

    UT

    1,287,162

    $       2,494,199,291

    Vermont

    VT

    327,867

    $         555,841,287

    Virginia

    VA

    3,796,975

    $       6,447,589,217

    Washington

    WA

    3,453,810

    $       5,876,091,642

    West Virginia

    WV

    913,264

    $       1,578,210,674

    Wisconsin

    WI

    2,817,912

    $       4,948,382,340

    Wyoming

    WY

    270,626

    $         488,905,666

    Foreign Addresses

     

    748,724

    $    1,222,795,510


    Economic Impact Payment help available on IRS.gov

    IRS.gov has a variety of tools and resources available to help individuals and businesses navigate  Economic Impact Payments and get the information they need about EIP and other CARES Act provisions.

    Economic Impact Payment FAQs: The IRS is seeing a variety of questions about Economic Impact Payments, ranging from eligibility to timing. These FAQs provide an overview and are updated frequently. Taxpayers should check the FAQs often for the latest additions; many common questions are answered on IRS.gov already, and more are being developed.

  • 21 May 2020 12:12 PM | Anonymous

    WASHINGTON — The Internal Revenue Service today announced the 2020 IRS Nationwide Tax Forums will be held virtually in 2020 with a series of live-streamed webinars beginning this July.

    “Given restrictions on large gatherings and difficulties with travel, we’ve made the decision to present the IRS Nationwide Tax Forums in a virtual format this year,” IRS Commissioner Chuck Rettig said. “While we’re unable to meet in person, tax professionals will still be able to choose from a wide variety of virtual seminars on tax law.Many will be able to fully satisfy their annual continuing education requirements by registering and attending.”

    Held each summer for the past 30 years, the IRS Nationwide Tax Forums are the IRS’s marquee outreach event to the tax professional community. The forums were scheduled to take place in six cities around the country this summer. Those in-person events are canceled.

    However, the change to a virtual format allows experts from the IRS and its association partners to still educate and update the tax professional community on tax law, cybesecurity, ethics and other topics.

    Seminar dates and agenda
    The 2020 Nationwide Tax Forums will begin on July 21 and continue through Aug. 20 with live-streamed webinars broadcast on Tuesdays, Wednesdays and Thursdays. Registration enables attendees to participate in all of the live webinars and earn up to 30 Continuing Education Credits at one price.

    As in previous years, the Nationwide Tax Forums agenda will feature a plenary session with tax law and publications update, as well as multiple sessions on high-interest topics such as qualified business income, exam and enforcement priorities, due diligence, cybersecurity and more. Presentations are made by both IRS experts and partner associations.

    This year several seminars, including the plenary session, will be provided in Spanish.

    Further details, including course titles, dates and times, will be available beginning in early June.

    2020 registration and fees
    Tax professionals who register by June 15 at 5 p.m. ET qualify for an Early Bird rate of $240 per person. The standard rate, starting June 16, will be $289.

    Initial registration for the in-person 2020 forums began in March. Those who have already registered may transfer their registration to the virtual format at no additional cost. Refunds are available for those who choose not to participate.

    Registration information, as well as information on transfers and cancelations, is available at www.IRSTaxForum.com.

    Discounts for national association members
    Members of partner associations listed below qualify for a discount of $10 off the Early Bird rate, but only if they register by June 15. Participating association members should contact their association directly for more information:

    • American Bar Association (ABA) Section of Taxation
    • American Institute of Certified Public Accountants (AICPA)
    • National Association of Enrolled Agents (NAEA)
    • National Association of Tax Professionals (NATP)
    • National Society of Accountants (NSA)
    • National Society of Tax Professionals (NSTP)
    • Low Income Taxpayer Clinics (LITC)
    • Volunteer Income Tax Assistance Program (VITA)

    View presentations from past forums

  • 21 May 2020 11:16 AM | Anonymous

    WASHINGTON — The Internal Revenue Service reminds taxpayers today about several online tools available to help them get the tax information they need as the IRS has limited operations due to the coronavirus.

    More taxpayers are using IRS.gov than ever before; as of May 8, the agency’s website had been visited a record 1 billion times, up 141% compared to the same time last year.

    The tools on IRS.gov are easy-to-use and available 24 hours a day. Millions of taxpayers use them to help file and pay taxes, find information about their accounts and get answers to tax questions.

    Take advantage of Free File products 
    The IRS Free File program, available only through IRS.gov, offers 70% of all taxpayers the choice of 10 brand-name tax preparation software packages to use at no cost. The software does all the work of finding deductions, credits and exemptions for which the taxpayer qualifies. It‘s free for those who earned $69,000 or less in 2019. Some of the Free File packages also offer free state tax return preparation.

    Any taxpayer, regardless of income, who is comfortable preparing their own taxes can use Free File Fillable Forms. Taxpayers also use this electronic version of paper IRS tax forms to file tax returns online.

    The IRS automatically extended the federal income tax filing due date from April 15, 2020, to July 15, 2020. Individual taxpayers who need more time to file their income tax returns beyond the July 15 deadline can use IRS Free File to electronically request an automatic tax-filing extension. This gives the taxpayer until Oct. 15 to file their tax return. To get the extension, the taxpayer must estimate their tax liability and pay any amount due.

    Choose from a variety of payment options
    Taxpayers should visit the "Pay" tab on IRS.gov to see their payment options. Most tax software products give taxpayers various payment options, including the option to withdraw the funds from a bank account. These include:

    Last month, the IRS also announced that taxpayers generally have until July 15, 2020, to pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due. This includes estimated tax payments normally due April 15 and June 15, which are now extended to July 15, 2020.

    View tax account information online
    To see their tax account, taxpayers can use the View Your Account tool. They’ll find information such as a payoff amount, the balance for each tax year owed, up to 24 months of their payment history and key information from their current tax year return as originally filed.

    Taxpayers can use the Get Transcript tool to view, print or download their tax transcripts after the IRS has processed the return. Taxpayers will notice a delay in the processing of their Forms 4506, Request for Copy of Tax Return, because of closed IRS offices due to COVID-19. Tax return transcripts show most line items from an original tax return, along with any forms and schedules, but not any changes made after the taxpayer filed it. The tool is free and available on IRS.gov. Ordering a tax transcript will not speed up a taxpayer's refund or provide an updated refund date.

    Taxpayers can easily find the most up-to-date information about their tax refund using the "Where's My Refund?" tool on IRS.gov and on the official IRS mobile app, IRS2Go. Within 24 hours after the IRS acknowledges receipt of an e-filed return, taxpayers can start checking on the status of their refund. Taxpayers should be aware that the IRS isn’t currently processing paper tax returns due to the COVID-19 pandemic.

    Get answers to tax questions and Economic Impact Payments
    Taxpayers may find answers to many of their questions using the Interactive Tax Assistant (ITA), a tax law resource that works using a series of questions and provides responses. IRS.gov has answers for Frequently Asked Questions. The IRS website has tax information in: Spanish (Español); Chinese (中文); Korean (한국어); Russian (Pусский); Vietnamese (Tiếng Việt); and Haitian Creole (Kreyòl ayisyen).

    For questions concerning Economic Impact Payments, visit the Economic Impact Payments section of IRS.gov. Taxpayers will find two tools there to help them get their payments: “Get My Payment” and “Nonfilers: Enter Payment Info Here.” Both tools are available in English and in Spanish.

    Taxpayers should use “Get My Payment” to check payment status, confirm payment type and enter bank account information for direct deposit if the IRS doesn’t have that information and hasn’t sent payment yet. Those who don’t normally file taxes must use “Nonfilers: Enter Payment Info Here” to provide simple information, so they can get their payment.

    People who receive Social Security retirement or disability benefits (SSDI), Supplemental Security Income (SSI), Railroad Retirement benefits and VA Compensation and Pension (C&P) benefits don’t use the “Nonfilers: Enter Payment Info Here” tool to receive their Economic Impact Payment. The IRS already has this information and those who receive these benefits will automatcially receive $1,200. But, for those who receive benefits in these groups and have a qualifying child, they they may be eligible for an additioanl $500 per child. However, their payment will be $1,200 and, by law, the the IRS would pay the additional $500 per eligible child amount in association with a return filing for tax year 2020.

    For more infromation on the payments see the Economic Impact Payment FAQs and see our Get My Payment FAQs for more infromation about this tool.

    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.

    The IRS is regularly updating Economic Impact Payments and Get My Payment application frequently asked questions pages on IRS.gov. Check IRS.gov/coronavirus often for the latest additions that answer many common questions.

  • 20 May 2020 4:49 PM | Anonymous

    WASHINGTON – The Internal Revenue Service announced today that Andy Keyso has been selected to serve as the Chief of the IRS Independent Office of Appeals.

    Keyso, who has an extensive background with the IRS and Chief Counsel organizations, will set strategy and oversee the operations of Appeals, which seeks to resolve tax controversies between taxpayer and the IRS without litigation. Keyso has served as the Deputy Chief of Appeals since July 2017 and has been acting as the Appeals Chief since January.

    “Andy has a wide range of experience and expertise inside the IRS as well as Chief Counsel,” said IRS Commissioner Chuck Rettig. “His leadership will complement the talented team of Appeals employees. Andy and Appeals have done a fabulous job of helping continue their important work during this challenging time.”

    Appeals is independent of the IRS compliance functions, including the examination and collection functions that make tax assessments and initiate collection actions. Appeals’ mission is to resolve tax controversies without litigation on a basis that is fair and impartial to both the government and taxpayers. Appeals has approximately 1,200 employees across the country.

    Prior to joining Appeals, Keyso had more than 25 years of experience across the IRS, including serving as the IRS Chief of Staff. Before joining the Chief of Staff’s office, he served for 18 years in various positions in the IRS Office of Chief Counsel, including as Associate Chief Counsel of the Income Tax and Accounting Division. He previously served as Special Counsel to the Chief Counsel and as an attorney in the Procedure and Administration Division. Prior to joining Chief Counsel, Keyso was a revenue agent in the former Newark, New Jersey District, where he later served as a technical advisor to the Chief, Examination Division. 

    Keyso is a graduate of Temple University School of Law, a member of the Pennsylvania Bar and a certified public accountant.  

  • 20 May 2020 4:48 PM | Anonymous

    Revenue Procedure 2020-32 provides the 2021 inflation adjusted amounts for Health Savings Accounts as determined under § 223 of the Internal Revenue Code. 

    Revenue Procedure 2020-32 will be in IRB:  2020-24, dated June 8, 2020.


  • 19 May 2020 3:42 PM | Anonymous

    Announcement 2020-06 provides the Treasury Department and IRS view on how to interpret references in U.S. income tax treaties to the North American Free Trade Agreement (NAFTA) once it is replaced by the Agreement between the United States Canada and Mexico (the USMCA).  The announcement provides that once the USMCA goes into force, the IRS and Treasury will interpret any references to NAFTA in a U.S. income tax treaty as a reference to the USMCA. 

    Announcement 2020-06 will be in IRB:  2020-23, dated 06/01/2020.


  • 18 May 2020 8:13 AM | Anonymous

    Due to COVID-19, the IRS is providing relief on a variety of issues as part of the People First Initiative. The IRS is modifying certain activities through the filing and payment deadline, Wednesday, July 15, 2020. Here’s what people need to know about relief related to IRS exams or audits

    Field, office and correspondence audits– Generally, the IRS won’t start new field, office and correspondence audits. The agency will continue to work refund claims, where possible, without in-person contact.
    However, the IRS may start new audits if needed to preserve the statute of limitations.

    In-person meetings – In-person meetings for current field and office audits are on hold. However, examiners will continue their work remotely, where possible. Taxpayers should respond to any requests for information during this period, if possible.

    Unique situations – Corporations and businesses may want to begin a previously scheduled audit while people and records are available. When it's in the best interest of both parties and appropriate people are available, the IRS may move forward with an audit. COVID-19 developments could slow activities.

    General requests for information – Taxpayers should reply to all IRS correspondence, if requested. 

    Earned income tax credit and wage verification reviews – Taxpayers have until July 15, 2020, to respond to the IRS and verify that they qualify for the earned income tax credit or to verify their income. These taxpayers should submit all requested information. If they can’t contact the agency and explain why the information is not available, the IRS won’t deny these credits for a failure to provide information until July 15, 2020.

    Independent Office of Appeals – Appeals employees will continue to work their cases. They aren’t currently holding in-person meetings, but conferences may be held by phone or video. Taxpayers should respond to any requests for information form the Independent Office of Appeals.

    Statute of limitations – The IRS will continue to protect all statutes of limitations. If statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending these statutes. Otherwise, the IRS will issue Statutory Notices of Deficiency and pursue similar actions to protect the interests of the government.

    Share this tip on social media -- #IRSTaxTip: IRS People First Initiative provides relief to taxpayers. https://go.usa.gov/xvstn

  • 15 May 2020 2:19 PM | Anonymous

    Revenue Ruling 2020-12 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates for June 2020, 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 2020-12 will be in IRB:  2020-24, dated June 8, 2020.


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