Revenue Procedure 2022-14 provides the List of Automatic Changes to which the automatic change procedures apply.  

Revenue Procedure 2022-14 will be published in Internal Revenue Bulletin 2022-7 on Feb. 14, 2022.

Notice 2022-08 sets forth the 2022 Cumulative List of Changes in Section 403(b) Requirements for Section 403(b) Pre-approved Plans (2022 Cumulative List). The 2022 Cumulative List will assist providers of section 403(b) pre-approved plans applying to the IRS for opinion letters for the second remedial amendment cycle (Cycle 2) under the IRS’s section 403(b) pre-approved plan program. The 2022 Cumulative List identifies changes in the requirements of section 403(b) that will be taken into account by the IRS with respect to a plan document submitted to the IRS for Cycle 2 and that were not taken into account during the first remedial amendment cycle.

Notice 2022-08 will be in IRB:  2022-7, dated 02/14/2022.

IRS YouTube Videos:
Earned Income Tax Credit (EITC) Can Put More Money in Your Pocket – English | Spanish

WASHINGTON – More people without children now qualify for the Earned Income Tax Credit (EITC), the  federal government’s largest refundable tax credit for low- to moderate-income families.

In addition, families can use pre-pandemic income levels to qualify if it results in a larger credit. The Internal Revenue Service and partners across the nation highlight those changes today as they mark the the 16th annual EITC Awareness Day.

Enacted in 1975, EITC is regarded as one of the government’s largest antipoverty programs helping millions of American families every year. The IRS and partners nationwide urge people to check to see if they qualify for this important credit, and also urge people who don’t normally file a tax return to review whether they qualify for EITC and other valuable credits like the Child Tax Credit or the Recovery Rebate Credit, also referred to as stimulus payments.

“There are important changes to EITC that will help this credit reach more hard-working families this year,” said IRS Commissioner Chuck Rettig. “We urge people potentially eligible for this valuable credit to review the guidelines; many people each year overlook this and leave money on the table. On this EITC Awareness Day, we want to make sure everyone who qualifies for the credit knows about it and has the information they need to get it.”

The IRS began accepting 2021 tax returns on Jan. 24, 2022. Taxpayers can ensure they’re getting all the credits and deductions for which they qualify, including EITC, by filing their taxes electronically, using a trusted tax professional or using an IRS Free File partner’s name-brand software. Taxpayers whose adjusted gross income (or AGI) is $73,000 or less qualify for Free File partner offers.

The IRS also reminds taxpayers that the quickest way to get a tax refund is by filing an accurate tax return electronically and choosing direct deposit for their refund. Tax software, tax professionals and other free options can help people see if they qualify for the EITC.

What’s new?
Childless EITC expanded for 2021
For 2021 only, more childless workers and couples can qualify for the EITC, and the maximum credit is nearly tripled for these taxpayers. For the first time, the credit is now available to both younger workers and senior citizens.

For 2021, the EITC is generally available to filers without qualifying children who are at least 19 years old with earned income below $21,430; $27,380 for spouses filing a joint return. The maximum EITC for filers with no qualifying children is $1,502, up from $538 in 2020. There are also special exceptions for people who are 18 years old and were formerly in foster care or are experiencing homelessness. Full-time students under age 24 don't qualify. There is no upper age limit for claiming the credit if taxpayers have earned income. In the past, the EITC for those with no dependents was only available to people ages 25 to 64.

Income from 2019
Another change for 2021 allows individuals to figure the EITC using their 2019 earned income if it was higher than their 2021 earned income. To qualify for the EITC, people must have earned income through employment or other sources, so this option may help workers get a larger credit if they earned less in 2021 or received unemployment income instead of their regular wages. See the instructions for Form 1040 (.pdf), line 27 c.

Phase out and credit limits
For 2021, the amount of the credit has been increased and the phaseout income limits at which taxpayers can claim the credit have been expanded. For instance, the maximum EITC for a married couple filing jointly with three or more children is $6,728 and the upper-income level for that same family is $57,414. In 2020, the maximum EITC for a family in that situation was $6,660 and the upper-income level was $56,844.

Taxpayers should also note that any Economic Impact Payments or Child Tax Credit payments received are not taxable or counted as income for purposes of claiming the EITC. Eligible individuals who did not receive the full amounts of their Economic Impact Payments may claim the Recovery Rebate Credit on their 2021 tax return. See IRS.gov/rrc for more information.

2021 and beyond
New law changes expand the EITC for 2021 and future years. These changes include:

• More workers and working families who also have investment income can get the credit. Starting in 2021, the amount of investment income they can receive and still be eligible for the EITC increases to $10,000. In 2020, the limit was $3,650. After 2021, the $10,000 limit is indexed for inflation.

• Married but separated spouses can choose to be treated as not married for EITC purposes. To qualify, the spouse claiming the credit cannot file jointly with the other spouse, must have a qualifying child living with them for more than half the year and either:

o Do not have the same principal residence as the other spouse for at least the last six months out of the year.

o Are legally separated according to their state law under a written separation agreement or a decree of separate maintenance and not live in the same household as their spouse at the end of the tax year for which the EITC is being claimed.

- Taxpayers should file Schedule EIC (Form 1040) and check the box showing them as married filing separately with a qualifying child.

-  In the past, married taxpayers had to file with their spouse to claim the EITC.

• Single people and couples with children who have Social Security numbers can claim the credit, even if their children do not have SSNs. In this instance, they would get the smaller credit available to childless workers. In the past, these filers didn't qualify for the credit.

o Taxpayers should file Schedule EIC (Form 1040) if they have a qualifying child. If they have at least one child who meets the conditions to be their qualifying child for purposes of claiming the EITC, they should complete and attach Schedule EIC to their Form 1040 or 1040-SR even if that child doesn't have a valid SSN. For more information, including how to complete Schedule EIC if your qualifying child doesn't have a valid SSN, see the instructions for Form 1040, line 27a, and Schedule EIC.

Vital refund boost
The EITC is the federal government’s largest refundable federal income tax credit for low- to moderate-income workers. For those who qualify, and if the credit is larger than the amount of tax they owe, they will receive a refund for the difference. While the majority of those eligible claim the EITC every year, IRS estimates that one of five eligible taxpayers do not claim the credit.

Nationwide last year, almost 25 million eligible workers and families received over $60 billion in EITC allowing for the payment of necessities, housing, and educational training, with an average EITC nationwide of $2,411. For 2021, the EITC is worth as much as $6,728 for a family with three or more children or up to $1,502 for taxpayers who do not have a qualifying child.

Look for EITC Refunds by early March if no issues with tax return
By law, the IRS cannot issue refunds before mid-February for tax returns that claim the EITC or the Additional Child Tax Credit (ACTC). The IRS must hold the entire refund − even the portion not associated with the EITC or ACTC and the Recovery Rebate Credit if applicable. This helps ensure taxpayers receive the refund they deserve and gives the agency more time to detect and prevent errors and fraud.
 
 'Where’s My Refund?' on IRS.gov and the IRS2Go app will be updated with projected deposit dates for most early EITC/ACTC refund filers by Feb. 19. Therefore, EITC/ACTC filers will not see an update to their refund status for several days after Feb. 15. Due to weekends and other factors, the IRS expects most EITC or ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they choose direct deposit and there are no other issues with their tax return.
 
Workers who can claim the EITC
Workers at risk for overlooking this important credit include taxpayers:

How to claim the EITC
To get the EITC, workers must file a tax return and claim the credit. Eligible taxpayers should claim the credit even if their earnings were below the income requirement to file a tax return. Free tax preparation help is available online and through volunteer organizations.

Those eligible for the EITC have these options:

• Find a trusted tax professional. The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. Tips for choosing a return preparer, including certified public accountants, enrolled agents, attorneys and many others who don’t have a professional credential, and details about national tax professional groups are available on IRS.gov. EITC recipients should be careful not to be duped by an unscrupulous return preparer.

• Free File on IRS.gov. Free brand-name tax software is available that leads taxpayers through a question-and-answer format to help prepare the tax return and claim credits and deductions if they’re eligible. Free File also provides online versions of IRS paper forms, an option called Free File Fillable Forms, best suited for taxpayers comfortable preparing their own returns.

• Free tax preparation sites. EITC-eligible workers can seek free tax preparation at thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest site, use the search tool on IRS.gov, the IRS2go smartphone application, or call toll-free 800-906-9887. Taxpayers should bring all required documents and information.

The IRS reminds taxpayers to be sure they have valid Social Security numbers for themselves, their spouse if filing a joint return, and for each qualifying child claimed for the EITC. The SSNs must be issued before the due date of the return, including extensions. There are special rules for those in the military or those out of the country.

Avoid errors
Taxpayers are responsible for the accuracy of their tax return even if someone else prepares it for them. Since the rules for claiming the EITC can be complex, the IRS urges taxpayers to understand all of them. People can find help to make sure they’re eligible by visiting a free tax return preparation site, or using Free File software or by using a paid tax professional.

Beware of scams
Be sure to choose a tax preparer wisely. Beware of scams that claim to increase the EITC refund. Scams that create fictitious qualifying children or inflate income levels to get the maximum EITC could leave taxpayers with a penalty.

Visit IRS online
IRS.gov is a valuable first stop to help taxpayers get it right this filing season. Information on other tax credits, such as the Child Tax Credit, is also available.

Related items

• EITC Central, helpful resources for IRS partners and others.
• Publication 596, Earned Income Credit (EIC).
• Tax Professionals, another place for valuable EITC resources and assistance

Tax Scams - How to Report Them

WASHINGTON – The Internal Revenue Service announced today that all third-round Economic Impact Payments have been issued and reminds people how to claim any remaining stimulus payment they’re entitled to on their 2021 income tax return as part of the 2021 Recovery Rebate Credit.

Parents of a child born in 2021 – or parents and guardians who added a new child to their family in 2021 – did not receive a third-round Economic Impact Payment for that child and may be eligible to receive up to $1,400 for the child by claiming the Recovery Rebate Credit.

While some third-round Economic Impact Payments may still be in the mail, the IRS is no longer issuing first-, second-, or third-round Economic Impact Payments. Through December 31, the IRS issued more than 175 million third-round payments totaling over $400 billion to individuals and families across the country while simultaneously managing an extended filing season in 2021.

Third-round Economic Impact Payments were advance payments of the 2021 Recovery Rebate Credit. In late January, the IRS began issuing Letter 6475, Your Third Economic Impact Payment, to recipients of the third-round Economic Impact Payment. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their 2021 tax returns when they file in 2022.

The American Rescue Plan Act of 2021, signed into law on March 11, 2021, authorized a third round of Economic Impact Payments and required them to be issued by Dec. 31, 2021. The IRS began issuing these payments on March 12, 2021, and continued through the end of the year.

Eligible parents of children born in 2021 and families that added dependents in 2021 should claim the 2021 Recovery Rebate Credit; most other eligible people already received the full amount and won’t need to claim a credit on their tax return

The third-round Economic Impact Payment was an advance payment of the tax year 2021 Recovery Rebate Credit. The amount of the third-round Economic Impact Payment was based on the income and number of dependents listed on an individual’s 2019 or 2020 income tax return. The amount of the 2021 Recovery Rebate Credit is based on the income and number of dependents listed on an individual’s 2021 income tax return.

Families and individuals in the following circumstances, among others, may not have received the full amount of their third-round Economic Impact Payment because their circumstances in 2021 were different than they were in 2020. These families and individuals may be eligible to receive more money by claiming the 2021 Recovery Rebate Credit on their 2021 income tax return:

• Parents of a child born in 2021 who claim the child as a dependent on their 2021 income tax return may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400 for this child.

o All eligible parents of qualifying children born in 2021 are also encouraged to claim the child tax credit—worth up to $3,600 per child born in 2021—on their 2021 income tax return.

• Families who added a dependent – such as a parent, a nephew or niece, or a grandchild – on their 2021 income tax return who was not listed as a dependent on their 2020 income tax return may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400 for this dependent.

• Single filers who had incomes above $80,000 in 2020 but less than this amount in 2021; married couples who filed a joint return and had incomes above $160,000 in 2020 but less than this amount in 2021; and head of household filers who had incomes above $120,000 in 2020 but less than this amount in 2021 may be eligible for a 2021 Recovery Rebate Credit of up to $1,400 per person.

• Single filers who had incomes between $75,000 and $80,000 in 2020 but had lower incomes in 2021; married couples who filed a joint return and had incomes between $150,000 and $160,000 in 2020 but had lower incomes in 2021; and head of household filers who had incomes between $112,500 and $120,000 in 2020 but had lower incomes in 2021 may be eligible for a 2021 Recovery Rebate Credit.

Individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return in order to get this money; the IRS will not automatically calculate the 2021 Recovery Rebate Credit. The IRS began accepting 2021 income tax returns on January 24.

Most other eligible people already received the full amount of their credit in advance and don't need to include any information about this payment when they file their 2021 tax return. The IRS issued additional payments – called “Plus-Up” Payments – to individuals who initially received a third-round Economic Impact Payment based on information on their 2019 tax return and were eligible for a larger amount based on information on their 2020 tax return.

Avoid processing delays when claiming the 2021 Recovery Rebate Credit

The IRS strongly encourages people to have all the information they need to file an accurate return to avoid processing delays. If the return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund.

To claim the 2021 Recovery Rebate Credit, individuals will need to know the total amount of their third-round Economic Impact Payment, including any Plus-Up Payments, they received.  People can view the total amount of their third-round Economic Impact Payments through their individual Online Account. The IRS will also send Letter 6475 through March to those who were issued third-round payments confirming the total amount for tax year 2021. For married individuals filing a joint return with their spouse, each spouse will need to log into their own Online Account or review their own letter for their portion of their couple’s total payment.

The IRS urges recipients of stimulus payments to carefully review their tax return before filing. Having this payment information available while preparing the tax return will help individuals determine if they are eligible to claim the 2021 Recovery Rebate Credit for missing third-round stimulus payments. If eligible for the credit, they must file a 2021 tax return. Using the total amount of the third payments from the individual’s online account or Letter 6475 when filing a tax return can reduce errors and avoid delays in processing while the IRS corrects the tax return.

The Get My Payment application will no longer be available as of Jan. 29, 2022, and individuals are encouraged to access Online Account to view their first-, second-, and third-round Economic Impact Payment amounts under the related tax year tab.

File electronically, and choose direct deposit

The amount of the 2021 Recovery Rebate Credit will reduce the amount of tax owed for 2021, or, if it’s more than the tax owed, it will be included as part of the individual’s 2021 tax refund. Individuals will receive their 2021 Recovery Rebate Credit included in their refund after the 2021 tax return is processed. The 2021 Recovery Rebate Credit will not be issued separately from the tax refund.

To avoid processing delays, the IRS urges people to file a complete and accurate tax return. Filing electronically allows tax software to figure credits and deductions, including the 2021 Recovery Rebate Credit. The 2021 Recovery Rebate Credit Worksheet on Form 1040 and Form 1040-SR instructions can also help.

The fastest and most secure way for eligible individuals to get their 2021 tax refund that will include their allowable 2021 Recovery Rebate Credit is by filing electronically and choosing direct deposit.

Anyone with income of $73,000 or less, including those who don't have a tax return filing requirement, can file their federal tax return electronically for free through the IRS Free File program. The fastest and most secure way to get a tax refund is to file electronically and have it direct deposited - contactless and free - into the individual's financial account. Bank accounts, many prepaid debit cards, and several mobile apps can be used for direct deposit when taxpayers provide a routing and account number.

IRS.gov/filing has details about IRS Free File, Free File Fillable Forms, free VITA or TCE tax preparation sites in communities or finding a trusted tax professional.

Claim 2020 Recovery Rebate Credit for missing first- or second-round Economic Impact Payments

All first- and second-round Economic Impact Payments have been issued. The first- and second-round Economic Impact Payments were an advance payment of tax year 2020 Recovery Rebate Credit. People who didn't qualify for a first- and second- Economic Impact Payment or got less than the full amounts may be eligible to claim the 2020 Recovery Rebate Credit on a 2020 income tax return. Individuals will need to file a 2020 tax return if they have not filed yet or amend their 2020 income tax return if it's already been processed.

If the individual’s 2020 income tax return has not yet been fully processed, the individual should not file a second return. Some returns need special handling to correct errors or credit amounts, which can delay processing. The IRS is having to correct significantly more errors on 2020 tax returns than in previous years. If the IRS corrects the credit claimed on the return, the IRS will send a letter with an explanation.

More information

• Online Account Information
• Recovery Rebate Credit
• 2021 Recovery Rebate Credit Frequently Asked Questions

2020 Recovery Rebate Credit Frequently Asked Questions

The IRS published the latest executive column, “A Closer Look,” which features Ken Corbin, Commissioner, Wage and Investment Division, providing an overview of the 2022 filing season and tips to help file an accurate return. “It’s important to all of us at the IRS that each taxpayer’s experience is one that meets their needs and preferences,” said Corbin. “We want to ensure that everyone understands the importance of filing electronically and choosing direct deposit, and we want people to know what they need to claim credits and deductions they may be eligible for when they file.” Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Check here for prior posts and new updates.

Revenue Procedure 2022-12 provides three procedures for individuals not otherwise required to file 2021 Federal income tax returns. The first two procedures permit these individuals to file simplified returns in order to receive the child tax credit, the 2021 recovery rebate credit, and the earned income credit.  The third procedure enables these individuals to file complete returns electronically even if they have zero adjusted gross income.

It will appear in IRB 2022-6 dated 2/7/2022.

IRS begins 2022 tax season; urges extra caution for taxpayers to file accurate tax returns electronically to speed refunds, avoid delays 

IR-2022-18, Jan. 24, 2022 

WASHINGTON – The Internal Revenue Service today kicked off the 2022 tax filing season with an urgent reminder to taxpayers to take extra precautions this year to file an accurate tax return electronically to help speed refunds. 

The start of this year’s tax season – which takes place earlier than last year’s February 12 opening – signals the IRS is now accepting and processing 2021 tax returns. 

More than 160 million individual tax returns for the 2021 tax year are expected to be filed, with most before the April 18 tax deadline. 

Most taxpayers face an April 18 deadline this year due to the Emancipation Day holiday in Washington, D.C falling on April 15. Taxpayers in Massachusetts and Maine will have an April 19 deadline due to Patriots Day; disaster victims have later filing deadlines in some locations. 

IRS Commissioner Chuck Rettig noted that taxpayers need to take special care this year due to several critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic. 

“IRS employees are working hard to deliver a successful 2022 tax season while facing enormous challenges related to the pandemic,” Rettig said. “There are important steps people can take to ensure they avoid processing delays and get their tax refund as quickly as possible. We urge people to carefully review their taxes for accuracy before filing. And they should file electronically with direct deposit if at all possible; filing a paper tax return this year means an extended refund delay.” 

For most taxpayers who file a tax return with no issues, the IRS anticipates they will receive their refund within 21 days of when they file electronically if they choose direct deposit – similar to previous years. Last year's average tax refund was more than $2,800. 

“There are simple steps that people can take that will help them navigate this challenging tax season,” Rettig said. “Filing electronically and using online resources instead of calling are just some of the steps that can help people avoid delays.” 

“IRS employees will do everything possible with the available resources to serve taxpayers this year,” Rettig said. “We will work hard to deliver refunds quickly, serve as many people as possible and work to catch up on past tax returns affected by the pandemic. The IRS thanks you for filing your taxes, a critical part of helping our great nation.” 

IRS tips for a smooth filing season:

Fastest refunds by e-filing, avoiding paper returns: Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year to avoid refund delays. If you need a tax refund quickly, do not file on paper – use software, a trusted tax professional or Free File on IRS.gov.

Avoid delays; file an accurate tax return: More than ever this year, the IRS urges people to make sure they’re ready to file an accurate tax return. An accurate tax return can avoid processing delays, extensive refund delays and later IRS notices.

Special care for EIP, advance Child Tax Credit recipients:  The IRS also encourages caution to those people who received a third Economic Impact Payment or advance Child Tax Credit in 2021. Taxpayers should ensure the amounts they’ve received are entered correctly on the tax return. Incorrect entries when reporting these payments mean the IRS will need to further review the tax return, creating an extensive delay. To help taxpayers, the IRS is mailing special letters about the stimulus payments and advance Child Tax Credit payment amounts. People can also check the amount of their payments in their Online Accountavailable on IRS.gov.

Earned Income Tax Credit or Additional Child Tax Credit refunds: By law, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, though eligible people may file their returns beginning on January 24. The law provides this additional time to help the IRS stop fraudulent refunds from being issued.

Avoid phone delays; online resources best option for help: IRS.gov is the quickest and easiest option for help. IRS assisted phone lines continue to receive record numbers of calls, more than the agency can handle with its limited resources. Avoid delays: Check IRS.gov first for refund information and answers to tax questions. Establishing an Online Account on IRS.gov can also help taxpayers get information quickly. The Online Account feature has recently been expanded to allow more people to gain access.

Don’t normally file a return? Consider filing for CTC, other valuable credits: For people who don’t normally file a tax return and didn’t file a 2020 return or use the Non-Filers tool, they can still qualify for important credits they’re eligible for, including the Recovery Rebate Credit (stimulus payment), advance Child Tax Credit or the Earned Income Tax Credit. The IRS encourages people in this group to file a 2021 tax return so they can receive all the credits for which they’re eligible.

Online options for free help; answers to common questions: Use IRS.gov to get answers to tax questions, check a refund status or pay taxes. There’s no wait time or appointment needed — online tools and resources are available 24 hours a day.

Other free options for help: IRS Free File is available to any person or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

2020 tax return still being processed? Tips to help with filing 2021 tax return: For people whose tax returns from 2020 have not yet been processed, they can still file their 2021 tax returns. For those filing electronically in this group, here’s a critical point. Taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return when they file electronically. For those waiting on their 2020 tax return to be processed, make sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. Visit IRS.gov for more details.

April 18 tax deadline: The filing deadline is April 18 for most taxpayers; automatic six-month extensions of time to file are available for anyone by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

WASHINGTON – The Internal Revenue Service’s Office of Chief Counsel today announced plans to hire up to 200 additional attorneys to help the agency combat syndicated conservation easements, abusive micro-captive insurance arrangements and other tax schemes.

“Combating abusive tax transactions that threaten to undermine our tax system remains a top priority for our enforcement efforts,” said IRS Commissioner Chuck Rettig. “It’s critical we work to ensure a fair tax system and adding these new attorneys will help us in on our ongoing efforts in this arena.”

These positions will be available around the country, and the IRS encourages qualified candidates to apply. The first announcements for these positions have already been posted on USAJOBS. Interested persons should apply today or as soon as possible via the following announcements:

Promoters have been particularly active developing and marketing tax shelter schemes that purportedly enable taxpayers to avoid paying what they legally owe. These new hires will help the IRS manage the increasing caseload in its multi-year effort to stamp out these abusive schemes and ensure that those participating in them pay the tax they owe plus penalties.

"This is an excellent opportunity for attorneys with experience in litigation, partnership tax law and planning complex transactions to join the Office of Chief Counsel and make a real difference for our tax system,” said Principal Deputy Chief Counsel William M. Paul.

These positions will be available in more than 50 locations, including Washington D.C. Those hired will provide legal advice to IRS professionals as they conduct audits of complex corporate and partnership issues and increasingly sophisticated and abusive transactions. The Chief Counsel office, working closely with IRS and the Treasury Department, provides world-class litigation and substantive tax training for all experience levels.

New hires will work in a variety of areas, including handling cases in the United States Tax Court, as well as serving on trial teams in our largest and most complex trials involving fact and expert witnesses, depositions and multi-week trials. They will also work with the Department of Justice Tax Division, which handles refund cases in district courts and the Court of Federal Claims.

Others hired will serve in the IRS national office with a focus on developing global regulatory solutions to the most sophisticated and abusive transactions and providing highly specialized advice to IRS litigation teams.

Abusive syndicated conservation easement deals remain a major focus for the IRS. These transactions generally use inflated appraisals of undeveloped land and partnerships devoid of legitimate business purpose designed to generate inflated and unwarranted tax deductions.

"Bogus syndicated conservation easement transactions undermine the public's trust in private land conservation and defraud the government," Rettig said. "Putting an end to these schemes is imperative."

Abusive micro-captive insurance arrangements also remain a key focus of IRS enforcement. These deals are generally sold to owners of closely held entities. The deals commonly lack many of the necessary attributes of insurance, have excessive premiums, insure highly improbable risks and have no connection to genuine business and insurance needs.

These are just some of the abusive schemes that the new hires will be working on.

Paul noted that there are numerous advantages to joining Chief Counsel. The Office of Chief Counsel has successfully transitioned in response to the Covid-19 Pandemic. Chief Counsel is currently in full telework mode and will have a competitive telework policy going forward.

To learn more about these opportunities, visit IRS Office of Chief Counsel | IRS Careers. The mission of the Office of Chief Counsel is to serve America’s taxpayers fairly and with integrity by providing correct and impartial interpretation of the Internal Revenue laws and the highest quality legal advice and representation for the Internal Revenue Service.

The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deductionon their 2021 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business.

Here are some details about this deduction to help taxpayers determine if they can claim it:

• Employees are not eligible to claim the home office deduction.  
• The home office deduction, calculated on Form 8829, is available to both homeowners and renters.  
• There are certain expenses taxpayers can deduct. These may include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.  
• Taxpayers must meet specific requirements to claim home expenses as a deduction. Even then, the deductible amount of these types of expenses may be limited.  
• The term "home" for purposes of this deduction:  

Includes a house, apartment, condominium, mobile home, boat or similar property.

Also includes structures on the property. These are places like an unattached garage, studio, barn or greenhouse.

Doesn't include any part of the taxpayer's property used exclusively as a hotel, motel, inn or similar business.

• Generally, there are two basic requirements for the taxpayer's home to qualify as a deduction:  

There generally must be exclusive use of a portion of the home for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.

The home must generally be the taxpayer's principal place of business. A taxpayer can also meet this requirement if administrative or management activities are conducted at the home and there is no other location to perform these duties. Therefore, someone who conducts business outside of their home but also uses their home to conduct business may still qualify for a home office deduction.  

• Expenses that relate to a separate structure not attached to the home may qualify for a home office deduction. They will qualify only if the structure is used exclusively and regularly for business.  
  
  
• Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:  

The simplified option has a rate of $5 a square foot for business use of the home. The maximum size for this option is 300 square feet. The maximum deduction under this method is $1,500.
When using the regular method, deductions for a home office are based on the percentage of the home devoted to business use. Taxpayers who use a whole room or part of a room for conducting their business need to figure out the percentage of the home used for business activities to deduct indirect expenses. Direct expenses are deducted in full.

Share this tip on social media -- #IRSTaxTip: How small business owners can deduct their home office from their taxes. https://go.usa.gov/xtbkP