IRS Tax News

  • 16 Apr 2024 3:08 PM | Anonymous

    Revenue Ruling 2024-09 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

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

    Revenue Ruling 2024-09 will be in IRB:  2024-19, dated May 6, 2024.


  • 16 Apr 2024 12:10 PM | Anonymous

    Inside This Issue

    1. IRS Commissioner thanks tax community for hard work, long hours this filing season
    2. Dirty Dozen: IRS warns tax pros, individuals to be cautious of ongoing scams designed to steal valuable information
    3. Register today for the IRS Nationwide Tax Forum
    4. Treasury, IRS issue new rules on corporate stock repurchase excise tax
    5. Treasury, IRS releases corrected census tracts for the qualified alternative fuel vehicle refueling property credit 
    6. Guidance on clean hydrogen production credit and the election to treat clean hydrogen production facilities as energy property
    7. Upcoming webinars for tax practitioners
    8. News from the Justice Department’s Tax Division
    9. Technical Guidance

    1.  IRS Commissioner thanks tax community for hard work, long hours this filing season

    IRS Commissioner Danny Werfel today thanked the tax community for their continuing efforts to help taxpayers during this filing season. In a news release highlighting IRS resources available as the filing deadline approaches, Werfel highlighted this:

    “Delivering tax season is a massive undertaking, and we greatly appreciate people in many different areas working long hours to serve taxpayers as the tax deadline approaches,” Werfel said. “This effort reaches far beyond the IRS and includes hard-working tax professionals, software providers, the payroll community as well as our colleagues in the state tax agencies. Their work helping taxpayers makes a difference.”

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    2.  Dirty Dozen: IRS warns tax pros, individuals to be cautious of ongoing scams designed to steal valuable information

    The IRS continues to share its Dirty Dozen list of tax scams reminding taxpayers and tax professionals to remain vigilant and protect themselves against fraudsters’ attempts intended to steal valuable information and file false tax returns. The IRS and the Security Summit partners urge tax pros and taxpayers to watch out for:

    “It’s crucial for tax professionals and businesses to be wary of creative and evolving cyberattacks designed to access sensitive systems,” said IRS Commissioner Danny Werfel. The IRS urges individuals to report unscrupulous promoters and tax preparers.

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    3.  Register today for the IRS Nationwide Tax Forum

    Tax pros: Register today to attend an upcoming IRS Nationwide Tax Forum. This year the forums will take place in Chicago, Orlando, Baltimore, Dallas and San Diego. Each forum is a three-day event, running Tuesday through Thursday, with more than 40 continuing education seminars, networking opportunities and more.

    The IRS encourages attendees to maximize their time at the forums by participating in special pre-forum events on Monday, including the annual filing season program refresher course and a special practice management session during which IRS association partners will provide advice and strategies on how to improve their individual tax businesses.

    Visit IRSTaxForum.com for information on the program, accommodations and registration.

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    4.  Treasury, IRS issue new rules on corporate stock repurchase excise tax

    The Department of Treasury and the IRS this week announced proposed regulations that would offer taxpayers and tax professionals with new guidance concerning the one percent excise tax owed on corporate stock repurchases. The proposed regulations would impact publicly traded domestic corporations that repurchase their stock or whose stock is acquired by certain affiliates. The regulations also would impact certain publicly traded foreign corporations that repurchase their stock or whose stock is acquired by certain affiliates. These regulations follow Notice 2023-2, published on Jan. 17, 2023, which provided initial guidance on the application of the stock repurchase excise tax.

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    5.  Treasury, IRS releases corrected census tracts for the qualified alternative fuel vehicle refueling property credit

    The Treasury Department and the IRS corrected Appendix A and Appendix B of Notice 2024-20 to add supplementary eligible census tracts for the qualified alternative fuel vehicle refueling property credit. This correction reflects additional census tracts that were determined to meet the description of eligible census tracts in Notice 2024-20. Additional details about the alternative fuel vehicle refueling property credit can also be found in the frequently asked questions.

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    6.  Guidance on clean hydrogen production credit and the election to treat clean hydrogen production facilities as energy property

    The Treasury Department and the IRS issued guidance for the collection of information for taxpayers to request an emissions value from the Department of Energy (DOE) to petition the Secretary of the Treasury for a determination of a provisional emissions rate (PER). The guidance complements proposed rules Treasury and the IRS issued in December on the hydrogen production tax credit, which was established in the 2022 Inflation Reduction Act. Those rules have yet to be finalized.

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    7.  Upcoming webinars for tax practitioners

    The IRS offers the upcoming live webinars to the tax practitioner community. For more information or to register, visit the Webinars for Tax Practitioners webpage:

    • Impacts of Gaming on Tax Exempt Organizations on April 18 at 2 p.m. ET. Earn up to 1 CE credit (Federal Tax). Certificates of completion are being offered.
    • Tax Implications of Chapter 11 Bankruptcy Filing for Individuals on May 1, at 1 p.m. ET. Earn up to 2 CE credits (Federal Tax). Certificates of completion are being offered. 

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    8.  News from the Justice Department’s Tax Division

    The U.S. District Court for the Middle District of Florida permanently enjoined Kenia Rodriguez from preparing returns for others and from owning, managing or working at any tax return preparation business in the future. The complaint alleges Rodriguez, through a fictitious entity called Rodriguez Tax Services, claimed extensive fraudulent deductions and credits on customers’ tax returns to purposely underreport their tax liabilities and claim refunds they were not entitled to receive. The complaint also alleged that Rodriguez hid her tax preparation activity by failing to properly identify herself on the tax returns that she prepared.

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    9.  Technical Guidance

    Announcement 2024-19 addresses the Federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements as part of the Department of Energy’s “Home Energy Rebate Programs” under sections 50121 and 50122 of the Inflation Reduction Act.

    Notice 2024-34 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for March 2024 used under section 417(e)(3)(D), the 24-month average segment rates applicable for April 2024, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv). 


  • 16 Apr 2024 12:05 PM | Anonymous

    WASHINGTON – With the April tax filing deadline here, the Internal Revenue Service highlighted a variety of improvements that dramatically expanded service for millions of taxpayers during the 2024 filing season.

    Through Inflation Reduction Act funding, the IRS continued to expand taxpayer service levels not seen in more than a decade with double-digit gains occurring in critical areas. Compared to a year ago, the IRS answered over 1 million more taxpayer phone calls this tax season, helped over 170,000 more people in-person and saw 75 million more IRS.gov visits fueled by a new and expanded “Where’s My Refund?” tool.

    “Taxpayers continued to see major improvements from the IRS during the 2024 tax season,” said IRS Commissioner Danny Werfel. “A well-funded IRS is like night and day for taxpayers. With the help of more funding and added resources, service for taxpayers this filing season eclipsed levels seen during the past decade. This tax season meant real-world improvements for people looking for help, whether calling, visiting in-person or using IRS.gov.”

    “We still have much more work to do, both to finish the 2024 tax season as well as put in place continued improvements made possible by Inflation Reduction Act funding,” Werfel said. “But this filing season marks another important chapter where we’ve improved service for taxpayers, continuing an accelerating trend in the story of transforming the IRS.”

    Through April 6, the IRS processed more than 100 million individual tax returns. Tens of millions more will come in advance of the April deadline, the busiest time of the year for tax returns. The IRS also projects about 19 million taxpayers will file extensions, which will be due Oct. 15.

    Since the start of the January tax season, the IRS has delivered more than $200 billion in refunds through early April. The average refund was $3,011, a 4.6% increase from last April’s average of $2,878.

    Here are major filing season numbers in 10 key areas. These numbers, generally from late March and early April, reflect the historic 2024 tax season taking place at the IRS:

    • Improved phone service. Continuing a trend seen last year following the addition of 5,000 new telephone assistors, the IRS level of service on its main phone lines reached more than 88%. That’s above the 84% level seen last year and more than a five-fold increase from the phone service levels seen during the pandemic era period, when the level of service was at just 15% in 2022.
    • More calls answered. The IRS answered more taxpayer calls on its live assistor lines this year, a 16.8% increase from 2023. IRS assistors handled 7,608,000 calls, up from 6,513,000 the year before. IRS automated lines handled another approximately 7 million calls, 280,000 more than the previous year.
    • Faster response times. Taxpayers waited, on average, just over three minutes for help on the IRS main phone lines. This is down from four minutes in 2023 and 28 minutes in filing season 2022.
    • More callback options. The IRS offered callback options on 97% of the phone lines this filing season. The agency offered call back for over 4 million taxpayers this tax season, more than double the 1.8 million calls in 2023. This option, offered when phone lines were busy, saved taxpayers nearly 1.4 million hours of wait time on the phones.
    • More in-person help. The IRS helped 170,000 more taxpayers in-person this filing season than in 2023. IRS employees at Taxpayer Assistance Centers (TACs) served 648,000 taxpayers this year, up from 474,000 in 2023, a 37% increase.
    • Expanded in-person hours. The IRS added extended hours at 242 TAC locations across the nation, generating more than 11,000 extra service hours for taxpayers during the 2024 filing season. In addition to extended service hours, IRS also offered taxpayer assistance on Saturdays in more than 70 locations. These evening and Saturday hours made it more convenient for thousands of hard-working taxpayers to get help.
    • Additional free help at volunteer sites. The IRS saw tax return preparation work at volunteer sites increase to more than 2.3 million returns this tax season, up 2000,000 from last year following work at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites.
    • More taxpayers file for free. In addition to volunteer sites, the IRS saw more taxpayers file for free this year; in all, there were over 450,000 more returns filed between volunteer sites, Direct File and Free File. The new Direct File pilot, offered on a limited basis in 12 states, generated more than 60,000 tax returns after opening widely in mid-March. At the same time, the IRS partnership with the Free File partners offering free private-sector software via IRS.gov saw growth with more than 2 million tax returns filed, an increase of 11.2% or more than 200,000 more Free File returns than 2023.
    • Higher usage of IRS.gov. Driven by increased use of the expanded information on the “Where’s My Refund?” for the 2024 filing season, IRS.gov saw large increases in traffic. The website had nearly 500 million visits, an 18% increase. And “Where’s My Refund?” accounted for more than 275 million of those visits, up 62 million from 2023 representing a 29% increase.
    • More chatbot use. The IRS saw more use of its virtual assistant tool on key IRS.gov pages. There were 832,000 uses this filing season, up nearly 150% from 330,000 uses in 2023. 

    “These numbers illustrate the strength of this year’s filing season, but the IRS needs to continue working hard to make more improvements and continue transforming to serve taxpayers – not just through the April tax deadline but throughout the year and into the future,” Werfel said.

    With the April deadline approaching, the IRS reminds taxpayers there are many ways to get last-minute help. They can visit the special “free help” page on IRS.gov.

    For taxpayers who need an extension of time to file their taxes, there are several options to get an automatic extension through Oct. 15. Although an extension grants extra time to file, it does not extend the obligation to pay taxes due on April 15, 2024. To avoid penalties and late fees, taxpayers who owe should pay either their full tax bill or at least what they can afford to pay by the April 15 deadline.

    The IRS estimates 19 million taxpayers will file for an automatic extension.

    Taxpayers in Maine and Massachusetts have until April 17 to file and pay taxes due this year. This is because these states observe the Patriots’ Day holiday on April 15 this year and April 16 is the Emancipation Day holiday in the District of Columbia. 


  • 16 Apr 2024 12:04 PM | Anonymous

    Notice 2024-33 provides limited relief to CAMT taxpayers from the addition to tax under § 6655 of the Internal Revenue Code (Code) for failure to pay estimated income tax with respect to its CAMT liability under § 55 of the Code for the 2024 first quarterly installment of estimated income tax due on or before April 15, 2024 (or on or before May 15, 2024, for taxpayers with taxable years beginning in February 2024).

     

    Notice 2024-33 will be in IRB:  2024-18, dated 04/29/2024.


  • 16 Apr 2024 12:03 PM | Anonymous

    WASHINGTON – The Department of Treasury and Internal Revenue Service today corrected Appendix A and Appendix B of Notice 2024-20 to add additional eligible census tracts for the qualified alternative fuel vehicle refueling property credit.

    This correction reflects additional census tracts that were determined to meet the description of eligible census tracts in Notice 2024-20.

    Appendix A was corrected to include:

    02158000100    Alaska              Kusilvak/Wade Hampton
    04019002704    Arizona             Pima
    04019005200    Arizona             Pima
    36053030101    New York          Madison
    36053030102    New York          Madison
    36053030200    New York          Madison
    46102940500    South Dakota    Oglala Lakota County/Shannon
    46102940800    South Dakota    Oglala Lakota County/Shannon
    46102940900    South Dakota    Oglala Lakota County/Shannon

    Appendix B was corrected to include:

    17095000600    Illinois             Knox County
    19145490300    Iowa                Page County
    20181453700    Kansas            Sherman County

    The Inflation Reduction Act amended the credit for qualified alternative fuel vehicle refueling property. The changes apply to qualified alternative fuel vehicle refueling property placed in service after Dec. 31, 2022, and before Jan. 1, 2033.

    The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year. The credit amount for depreciable property is 6% of the cost of the qualified property placed in service during the tax year but may be increased to 30% of the cost of the qualified property if the prevailing wage and apprenticeship requirements are met. The credit is limited to $100,000 for depreciable property and $1,000 for non-depreciable property.

    Property must be placed in service in an eligible census tract to qualify for the credit. An eligible census tract is any population census tract that is a low-income community or any population census tract that is not an urban area.

    More information about the alternative fuel vehicle refueling property credit may be found in the frequently asked questions.

     


  • 16 Apr 2024 12:01 PM | Anonymous

    Anyone who sold crypto, received it as payment or had other digital asset transactions needs to accurately report it on their tax return

    The Internal Revenue Service reminds taxpayers they must answer the digital asset question and report all digital asset related income when they file their 2023 federal income tax return. Taxpayers should also keep these reporting guidelines in mind for 2024.

    The question appears at the top of Forms 1040, Individual Income Tax Return1040-SR, U.S. Tax Return for Seniors; and 1040-NR, U.S. Nonresident Alien Income Tax Return, and was revised this year to update wording. The question was also added to these additional forms: Forms 1041, U.S. Income Tax Return for Estates and Trusts1065, U.S. Return of Partnership Income1120, U.S. Corporation Income Tax Return; and 1120-S, U.S. Income Tax Return for an S Corporation.

    With appropriate variations tailored for corporate, partnership or estate and trust taxpayers, the digital asset question is:

    At any time during 2023, did you:

    (a) receive (as a reward, award or payment for property or services); or

    (b) sell, exchange or otherwise dispose of a digital asset (or a financial interest in a digital asset)?

    What is a digital asset?

    A digital asset is a digital representation of value that is recorded on a cryptographically secured, distributed ledger or any similar technology. Common digital assets include:

    • Convertible virtual currency and cryptocurrency.
    • Stablecoins.
    • Non-fungible tokens (NFTs).

    Digital assets are treated as property for tax purposes, and general property tax principles apply to any of these transactions.

    Everyone must answer the question correctly

    Everyone who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 and 1120S must check one box answering either "Yes" or "No" to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving a digital asset in 2023.

    When to check "Yes"

    Normally, a taxpayer must check the "Yes" box if they:

    • Received digital assets as payment for property or services provided;
    • Received digital assets resulting from a reward or award;
    • Received new digital assets resulting from mining, staking and similar activities;
    • Received digital assets resulting from a hard fork (a branching of a cryptocurrency's blockchain that splits a single cryptocurrency into two);
    • Disposed of digital assets in exchange for property or services;
    • Disposed of a digital asset in exchange or trade for another digital asset;
    • Sold a digital asset; or
    • Otherwise disposed of any other financial interest in a digital asset.

    Report digital asset income

    In addition to checking the "Yes" box, taxpayers must report all income related to their digital asset transactions. For example, an investor who held a digital asset as a capital asset and sold, exchanged or transferred it during 2023 must use Form 8949, Sales and other Dispositions of Capital Assets, to figure their capital gain or loss on the transaction and then report it on Schedule D (Form 1040), Capital Gains and Losses. A taxpayer who disposed of any digital asset by gift may be required to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

    If an employee was paid with digital assets, they must report the value of assets received as wages. Similarly, if they worked as an independent contractor and were paid with a digital asset, they must report that income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Schedule C is also used by anyone who sold, exchanged or transferred a digital asset to customers in connection with a trade or business.

    Keep in mind that most income is subject to taxation. Failing to accurately report income may result in accrued interest and penalties. This includes various sources of income such as interest earningsunemployment benefits and income derived from the service industrygig economy and digital assets. For further details, consult Publication 525, Taxable and Nontaxable Income.

    When to check "No"

    Normally, a taxpayer who just owned digital assets during 2023 can check the "No" box as long as they did not engage in any transactions involving a digital asset during the year. They can also check the "No" box if their activities were limited to one or more of the following:

    • Holding digital assets in a wallet or account;
    • Transferring digital assets from one wallet or account they own or control to another wallet or account they own or control; or
    • Purchasing digital assets using U.S. or other real currency, including through electronic platforms.

    For a set of frequently asked questions (FAQs) and other details, visit the Digital Assets page on IRS.gov. 


  • 16 Apr 2024 11:59 AM | Anonymous

    WASHINGTON – The Internal Revenue Service wraps up the 2024 Dirty Dozen campaign with a warning to taxpayers regarding promoters selling bogus tax strategies and fraudulent offshore schemes designed to reduce or avoid taxes altogether.

    Various fraudulent schemes threatening taxpayers can take different forms, including exploitative agreements related to syndicated conservation easements and micro-captive insurance arrangements. These schemes may also have an international aspect, such as concealing money and digital assets in foreign accounts or using foreign captive insurance and Maltese foreign individual retirement accounts.

    “Taxpayers should be wary of anything that seeks to completely eliminate a legitimate tax responsibility,” said IRS Commissioner Danny Werfel. “Promoters continue to peddle elaborate schemes to reduce taxes and make a handsome profit. Taxpayers contemplating these arrangements should always seek advice from a trusted tax professional, not an aggressive promoter focused on pushing questionable transactions to make a buck.”

    Today is the last day of the IRS annual Dirty Dozen campaign. Started in 2002, the IRS' annual Dirty Dozen campaign lists 12 scams and schemes that put taxpayers, businesses and the tax professional community at risk of losing money, personal information, data and more. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, the education effort is designed to raise awareness and protect taxpayers and tax pros from common tax scams and schemes.

    Today’s final installment of the 2024 Dirty Dozen series includes the eleventh and twelfth items on the list: bogus tax avoidance strategies and schemes with an international element. There are several parts in each of these lists which reflects that wide range of schemes and scams that taxpayers can face. Although the IRS focuses on 12 items in the Dirty Dozen list, the agency reminds taxpayers there are many more items that taxpayers should be wary of throughout the year given the complexity of the tax system and the evolving nature of these scams.

    Bogus tax avoidance strategies include syndicated conservation easements, micro-captive insurance

    Syndicated conservation easements
    A conservation easement is a restriction on the use of real property. Generally, taxpayers may claim a charitable contribution deduction for the fair market value of a conservation easement transferred to a charity if the transfer meets Internal Revenue Code section 170 requirements.

    In abusive arrangements, promoters are syndicating conservation easement transactions that purport to give an investor the opportunity to claim charitable contribution deductions and corresponding tax savings that significantly exceed the amount the investor invested. These abusive arrangements, which generate high fees for promoters, attempt to game the tax system with grossly inflated tax deductions.

    As part of recent legislation, Congress amended section 170 to curb certain abusive conservation easement transactions. The IRS is committed to ensuring compliance with the conservation easement deduction law as amended and will continue to keep an eye on transactions that are “too good to be true.”

    Micro-captive insurance arrangements
    Also called a small captive, a micro-captive is an insurance company whose owners elect to be taxed on the captive's investment income only. Abusive micro-captives involve schemes that lack many of the attributes of legitimate insurance. These structures often include implausible risks, failure to match genuine business needs, and in many cases, unnecessary duplication of the taxpayer’s commercial coverages. In addition, the “premiums” paid under these arrangements are often excessive, reflecting non-arm’s length pricing.

    Abusive micro-captive transactions continue to be a high-priority enforcement area for the IRS. The agency has prevailed in all micro-captive Tax Court and appellate court cases decided on their merits since 2017.

    Schemes involving international elements include Maltese retirement arrangements, digital assets
    The Foreign Account Tax Compliance Act (FATCA) plays a key part in combating tax evasion by U.S. persons holding accounts and other financial assets offshore. It requires most U.S. taxpayers holding financial assets outside the United States to report those assets to the IRS. It also requires certain foreign financial institutions to report directly to the IRS about financial accounts held by U.S. taxpayers. These institutions include not only banks, but also other financial institutions, such as investment entities, brokers and certain insurance companies. Reporting requirements carry penalties for failure to file.

    Unscrupulous promoters continue to lure U.S. persons into placing their assets in offshore accounts and structures, saying they are out of reach of the IRS. These assertions are not true. The IRS can identify and track anonymous transactions of foreign financial accounts.

    Many of these schemes are promoted and advertised online, but all these schemes have one thing in common - they promise tax savings that are “too good to be true” and will likely cause legal harm to taxpayers who use them.

    Misusing a tax treaty with Maltese individual retirement arrangements
    This scheme involves U.S. citizens or residents attempting to avoid U.S. tax by contributing to foreign individual retirement arrangements in Malta or another country. These countries allow for contributions in a form other than cash and do not limit the amount of contributions by reference to employment or self-employment activities. By improperly asserting this as a "pension fund" for U.S. tax treaty purposes, the U.S. taxpayer improperly claims an exemption from U.S. income tax on gains and earnings in, and distributions from, the foreign individual retirement arrangement.

    Digital assets
    A digital asset is a digital representation of value that is recorded on a cryptographically secured, distributed ledger or any similar technology. Common digital assets include:

    • Convertible virtual currency and cryptocurrency.
    • Stablecoins.
    • Non-fungible tokens (NFTs).

    Unscrupulous promoters often recommend digital assets as being untraceable and undiscoverable by the IRS. However, the truth is that the IRS can identify and track anonymous transactions of digital assets around the globe.

    For federal tax purposes, digital assets are treated as property. General tax principles applicable to property transactions apply to transactions using digital assets.

    Reporting digital asset income
    Transactions involving a digital asset are generally required to be reported on a federal tax return. For example, an investor who held a digital asset as a capital asset and sold, exchanged or transferred it during 2023, must use Form 8949, Sales and other Dispositions of Capital Assets, to figure their capital gain or loss on the transaction and then report it on Schedule D (Form 1040), Capital Gains and Losses.

    A taxpayer who disposed of any digital asset by gift may be required to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

    If an employee was paid with digital assets, they must report the value of assets received as wages. Similarly, if they worked as an independent contractor and were paid with digital assets, they must report that income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Schedule C is also used by anyone who sold, exchanged or transferred digital assets to customers in connection with a trade or business.

    Eye on compliance
    Where appropriate, the IRS will challenge the purported tax benefits from transactions in today’s Dirty Dozen and other questionable arrangements and impose penalties where needed. The IRS Criminal Investigation Division continues to seek out promoters and participants of these types of schemes.

    As a reminder, taxpayers should:

    • Think twice before including questionable arrangements like this on their tax returns, as they are responsible for what’s on it once signed.
    • Rely on a reputable tax professional they know and trust.

    IRS remains vigilant
    Whether anchored offshore or in the U.S., abusive transactions and schemes remain a high priority for the IRS. The IRS is always on the lookout for promoters and participants of these types of schemes and where appropriate, the IRS will challenge them and impose penalties.

    The IRS continues to improve investigation and enforcement in these areas by utilizing new and evolving data analytic tools and enhanced document matching.

    Report fraud
    As part of the Dirty Dozen awareness effort regarding tax schemes and unscrupulous tax return preparers, the IRS urges individuals to report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.

    To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed paper Form 14242, Report Suspected Abusive Tax Promotions or Preparers, and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

    Mail:

    Internal Revenue Service Lead Development Center
    Stop MS5040
    24000 Avila Road
    Laguna Niguel, California 92677 3405
    Fax: 877 477 9135

    Taxpayers and tax professionals can also submit this information to the IRS Whistleblower Office, where they may be eligible for an award. For details, please refer to the sections on Abusive Tax Schemes and Abusive Tax Return Preparers.


  • 11 Apr 2024 9:55 AM | Anonymous

    Notice 2024-34 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for March 2024 used under § 417(e)(3)(D), the 24-month average segment rates applicable for April 2024, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

    Notice 2024-34 will be in IRB: 2024-18, dated April 29, 2024.

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    Thank you for subscribing to IRS GuideWire, an IRS e-mail service. If you are a Tax Professional and have a specific concern about your tax situation, call the IRS Practitioner Priority Service 1-866-860-4259.


  • 11 Apr 2024 9:32 AM | Anonymous

    WASHINGTON — On day eight of the Dirty Dozen tax scam series, the Internal Revenue Service today warned about bad tax information on social media that can lure honest taxpayers with bad advice, potentially leading to identity theft and tax problems.

    Social media can routinely circulate inaccurate or misleading tax information, where people on TikTok and other social media platforms share wildly inaccurate tax advice. Some involve urging people to misuse common tax documents like Form W-2, or more obscure ones like Form 8944 involving a technical e-file form not commonly used by taxpayers. Both schemes encourage people to submit false, inaccurate information in hopes of getting a refund.

    The IRS warns people not to fall for these scams. Taxpayers who knowingly file fraudulent tax returns potentially face significant civil and criminal penalties.

    "Social media is an easy way for scammers and others to try encouraging people to pursue some really bad ideas, and that includes ways to magically increase your tax refund,” said IRS Commissioner Danny Werfel. “There are many ways to get good tax information, including @irsnews on social media and from trusted tax professionals. But people should be careful with who they’re following on social media for tax advice. Unlike hacks to fix a leaky kitchen sink or creative makeup tips, people shouldn’t rely on made-up ways on social media to patch up their tax return and boost their refund.”

    Warnings against bad advice on social media is day eight of the 2024 IRS annual Dirty Dozen campaign – a list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data and more. Started in 2002, the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, but the education effort is designed to raise awareness and protect taxpayers and tax pros from common tax scams and schemes, including bad social media advice.

    As a member of the Security Summit, the IRS has worked with state tax agencies and the nation’s tax industry for nine years to cooperatively implement a variety of internal security measures to protect taxpayers. The collaborative effort by the Summit partners also has focused on educating taxpayers about scams and fraudulent schemes throughout the year, which can lead to tax-related identity theft. Through initiatives like the Dirty Dozen and the Security Summit initiative, the IRS strives to protect taxpayers, businesses and the tax system from cyber criminals and deceptive activities that seek to extract information and money, including bad advice on social media.

    Social media: Not the ideal place for solid tax advice

    Social media can connect people and information from all over the globe. Unfortunately, sometimes people provide bad advice that can lure good taxpayers into trouble.

    The IRS warns taxpayers to be wary of trusting internet advice, whether it's a fraudulent tactic promoted by scammers or it's a patently false tax-related scheme trending across popular social media platforms. While some producers of misleading content are driven by criminal profit motive, others are simply trying to gain attention and clicks. They will post anything, no matter how wrong or outlandish, if it garners more attention.

    The IRS is aware of various filing season hashtags and social media topics leading to inaccurate and potentially fraudulent information. The central theme of these examples involves people trying to use legitimate tax forms for the wrong reason.

    Here are just two of the recent schemes circulating online:

    Fraudulent advice on Form W-2

    This scheme, circulating on social media, encourages people to use tax software to manually fill out Form W-2, Wage and Tax Statement, and include false income information. In this W-2 scheme, scam artists suggest people make up large income and withholding figures, as well as the employer its coming from. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund – sometimes as much as five figures – due to the large amount of withholding.

    There are two other variations of the W-2 scheme. Both involve misusing Form W-2 wage information in hopes of generating a larger refund:

    The IRS, along with the Security Summit partners in the tax industry and the states, are actively watching for this scheme. In addition, the IRS works with payroll companies and large employers – as well as the Social Security Administration – to verify W-2 information.

    Form 8944 scheme

    Another example of bad advice circulating on social media involves Form 8944, Preparer e-file Hardship Waiver Request. Wildly inaccurate claims made about this form include its use by taxpayers to receive a refund from the IRS, even if the taxpayer has a balance due. This is false information. Form 8944 is for tax professional use only.

    While Form 8944 is a legitimate IRS tax form, it is intended for tax return preparers who are requesting a waiver so they can file tax returns on paper instead of electronically. It is not a form the average taxpayer can use to avoid tax bills.

    Taxpayers who intentionally file forms with false or fraudulent information can face serious consequences, including potentially civil and criminal penalties, like criminal prosecution for filing a false tax return and a frivolous return penalty of $5,000.

    How taxpayers can verify information

    The best place for taxpayers to learn how to properly use tax forms, and to accurately follow social media channels related to taxes, is to go to IRS.gov.

    • IRS.gov has a forms repository with legitimate and detailed instructions for taxpayers on how to fill out the forms properly.
    • Use IRS.gov to find the official IRS social media accounts, or other government sites, to fact check information.

    Report fraud

    As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes, as well as tax return preparers who deliberately prepare improper returns.

    To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed paper Form 14242, Report Suspected Abusive Tax Promotions or Preparers, and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

    Mail:

    Internal Revenue Service Lead Development Center Stop MS5040 24000 Avila Road Laguna Niguel, CA 92677-3405 Fax: 877-477-9135

    Alternatively, taxpayers and tax practitioners may send the information to the IRS Whistleblower Office for possible monetary award.

    For more information, see Abusive Tax Schemes and Abusive Tax Return Preparers.


  • 11 Apr 2024 9:31 AM | Anonymous

    WASHINGTON – As the April 15 federal tax filing deadline nears, the Internal Revenue Service today announced it will open more than 70 Taxpayer Assistance Centers (TACs) around the country on Saturday, April 13, for face-to-face help. This special help is available from 9 a.m. to 4 p.m. local time.

    At TACs, people meet face-to-face with IRS employees to get help with tax account issues, such as authenticating someone’s identity, asking about account adjustments and making payments by check or money order. The IRS plans one additional special Saturday opening on May 18.

    “IRS employees have been working hard throughout this tax season to help taxpayers, and the special Saturday hours are one more way we’ve expanded our services,” said IRS Commissioner Danny Werfel. “With the help of additional funding through the Inflation Reduction Act, we’ve been able to serve more taxpayers and provide additional assistance. For these special Saturday sessions, we encourage taxpayers to plan ahead so they have the right information. Frequently, taxpayers can get the help they need by visiting IRS.gov.”

    Before travelling to an office, the IRS encourages everyone to visit the event page IRS face-to-face Saturday helpto get current information. The IRS notes representatives can’t accept cash payments during the special Saturday openings, and tax return preparation is not an available service.

    The IRS has online resources for many common tax situations, including several tools for making payments, getting an extension to file and setting up installment agreements. Taxpayers can make payments using their personal financial accounts, debit or credit cards and even digital wallets using tools on IRS.gov.

    Tips for taxpayers planning a visit

    Individuals should bring the following documents when they visit IRS Taxpayer Assistance Centers:

    • Current government-issued photo identification, along with a second form of identification for identity verification services.
    • Social Security or Individual Taxpayer Identification numbers for themselves and all members of their household, including their spouse and dependents (if applicable).
    • Any IRS letters or notices received and related documents.
    • A copy or digital image of the tax return in question if one was filed.

    The IRS noted that because appointments aren’t necessary for these special Saturday hours, some locations may see high demand and wait times can be longer than usual. To help with this and avoid delays, the IRS encourages people to plan ahead, review key tips and come prepared with needed information. IRS employees will be working hard to serve as many people as quickly as possible.

    Extended office hours on Tuesdays and Thursdays

    During the filing season, the IRS has also been providing extended office hours at many TACs nationwide. The added hours will end on Tuesday, April 16. To see if a nearby office is participating in the program, check its listing on the IRS/taclocator. Taxpayers can walk in or make appointments for service during extended hours. Cash payments are accepted during the additional office time, but taxpayers must have an appointment at a TAC currently accepting cash.

    Normally, TACs are open Monday through Friday, 8:30 a.m. to 4:30 p.m., and provide service by appointment only. To make an appointment, call 844-545-5640.

    Services provided

    The IRS’s Contact Your Local Officesite lists all services provided at specific TACs. Tax return preparation is not a service offered at IRS TACs during these events or any operating hours. The IRS will provide information to anyone needing to find free local tax preparation resources. Additionally, File your return on IRS.gov gives step-by-step information on how to file individual tax returns.

    If someone has questions about a tax bill or IRS audit, or if they need help resolving a tax problem, they’ll receive assistance from IRS employees specializing in those services. If these employees aren’t available, the individual will receive a referral for these services. IRS Taxpayer Advocate Service employees may also be available to help with some issues.

    Professional foreign language interpretation will be available in many languages through an over-the-phone translation service. For deaf or hard of hearing individuals who need sign language interpreter services, IRS staff will schedule appointments for a later date. Alternatively, these individuals can call TTY/TDD 800-829-4059 to make an appointment.

    During the visit, IRS staff may also request the following information:

    • A current mailing address,
    • Proof of financial account information included on a tax return to receive payments or refunds by direct deposit.

    Tax return preparation options

    While tax return preparation is not a service offered at IRS TACs, information will be shared about available local free tax preparation options. Help is also available using the following services:

    • Eligible individuals or families can get free help preparing their tax return at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find the closest free tax return preparation help, use the VITA Locator Tool or call 800-906-9887.
    • To find an AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669.
    • Any individual or family whose adjusted gross income (AGI) was $79,000 or less in 2023 can use IRS Free File’s Guided Tax Software at no cost. There are products in English and Spanish.
    • Free File Fillable Forms are electronic federal tax forms, equivalent to a paper 1040 form. Taxpayers should know how to prepare their own tax return using form instructions and IRS publications, if needed. Anyone, regardless of income, can use the forms. They are a free option for those whose AGI is greater than $79,000.
    • MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members, and some veterans, with no income limit.
    • IRS Direct File. Eligible taxpayers can file 2023 federal tax returns online, for free, directly with the IRS. Direct File is available to taxpayers who live in one of the 12 participating pilot states and report certain types of income, deductions and credits. Taxpayers can check their eligibility at directfile.irs.gov to see if Direct File is the right option for them. Once they’ve started their return, taxpayers can pause and sign back into IRS Direct File securely to complete it any time before the April filing deadline.

    Help available 24/7 at IRS.gov

    The fastest and easiest way for people to get the help they need is through IRS.gov. Go to IRS.gov for more information. Available resources include:

    For additional information on available services, see IRS Publication 5136, IRS Services Guide.


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