Today, the IRS published the latest executive column “A Closer Look,” which features Michael Beebe, Director, Return Integrity & Compliance Services, providing tips to help protect taxpayers during National Tax Security Awareness Week and the holiday season. “We encourage people and organizations to visit IRS.gov or follow our social media channels to receive information every day during National Tax Security Awareness Week,” said Beebe. “Keeping personal and financial information safe is a shared responsibility. People can take simple steps to protect their sensitive tax and financial information.” Read more here. Read the Spanish version here.

Check out the National Tax Security Awareness kick-off news release 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.

IRS YouTube Video:
Security Measures Protect Against Tax-Related Identity Theft - English

WASHINGTON — Kicking off a special week, the Internal Revenue Service and the Security Summit partners today warned taxpayers and tax professionals to beware of a dangerous combination of events that can increase their exposure to tax scams or identity theft.

The combination of the holiday shopping season, the upcoming tax season and the pandemic create additional opportunities for criminals to steal sensitive personal or finance information. People should take extra care while shopping online or viewing emails and texts.

The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit – mark today’s start of the 6th annual National Tax Security Awareness Week with tips on basic safeguards everyone should take. These can help protect against identity theft as well as help safeguard sensitive tax information that criminals can use to try filing fake tax returns and obtaining refunds.

"Don’t let this be the most wonderful time of the year for identity thieves,” said IRS Commissioner Chuck Rettig. “The approach of the holidays and tax season increases risk for taxpayers and opportunities for criminals. We urge people to be extra careful with their personal and financial information during this period while shopping online or getting suspicious emails or text. Taking a few simple steps can keep people from becoming victims of identity theft and protect their sensitive personal information needed for tax returns and refunds.”

Since 2015, the IRS and Security Summit partners have taken important steps to protect taxpayers and the nation’s tax professionals from tax-related identity theft. But progress in this area led identity thieves to evolve their tactics, trying to obtain sensitive information from taxpayers and tax professionals to help prepare fraudulent tax returns. Taxpayers can help in this fight by protecting their financial and tax information. Summit partners continue to highlight safety steps in the “Taxes.Security.Together” effort.

As part of that effort, National Tax Security Awareness Week is designed to help share information with taxpayers and tax professionals during this critical period. The special week includes special informational graphics and social media efforts on platforms including Twitter and Instagram through @IRSnews and #TaxSecurity.

A special emphasis for this year on social media will be focusing tax security awareness on younger and older Americans. Even if someone doesn’t file a tax return, their online interactions can lead to scam artists obtaining sensitive information and using it to try obtaining a refund.

10 key steps to protect sensitive information:

To help taxpayers and tax professionals, the Security Summit offers 10 basic steps everyone should remember during the holidays and as the 2022 tax season approaches:

Other common warning signs; additional places for information

The IRS and Summit partners continue to see identity thieves trying to look like government agencies and others in the tax community by emailing or texting about tax refunds, stimulus payments or other items. Remember, the IRS will not call or send unexpected texts or emails about things like refunds. More information about these common scams is available at IRS Tax Tip: Common tax scams and tips to help taxpayers avoid them.

The IRS and Security Summit partners are sharing YouTube videos on security steps for taxpayers. The videos can be viewed or downloaded at Easy Steps to Protect Your Computer and Phone and Here’s How to Avoid IRS Text Message Scams.

Employers also can share Publication 4524, Security Awareness for Taxpayers (.pdf), with their employees and customers while tax professionals can share with clients.

In addition, the Summit partners remind people these security measures include mobile phones – an area that people sometimes can overlook. Thieves have become more adept at compromising mobile phones. Phone users also are more prone to open a scam email from their phone than from their computer.

Taxpayers can check out security recommendations for their specific mobile phone by reviewing the Federal Communications Commission's Smartphone Security Checker. Since phones are used for shopping and even for doing taxes, remember to make sure phones and tablets are just as secure as computers.

During the pandemic, there continue to be numerous scams related to COVID-19. These can be attempts to gain sensitive personal or financial information. The Federal Trade Commission also has issued alerts; consumers can keep atop the latest scam information and report COVID-related scams.

The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is the first in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details.

WASHINGTON — The Internal Revenue Service this week launched a new Spanish-language version of the Child Tax Credit Update Portal (CTC-UP). This tool is designed to help families quickly and easily make changes to the monthly Child Tax Credit payments they are receiving from the IRS.

Families who are already receiving monthly payments use the CTC-UP to update their accounts. Now, all the features that have only been available in English are also available in Spanish. Updates made by 11:59 pm Eastern Time on Nov. 29 will be reflected in the last monthly payment for 2021, scheduled for Dec. 15.

Under the American Rescue Plan, most eligible families began receiving monthly payments starting in July. For these families, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. Payments are based on returns filed for 2019 or 2020, including those who registered online with the IRS.

Available only on IRS.gov, CTC-UP allows families to verify their eligibility for the payments and then, if they choose to:

Be sure to make any changes by 11:59 pm ET on Nov. 29. To access the portal, visit IRS.gov/childtaxcredit2021.

Families are typically receiving half of their total CTC in advance monthly payments during 2021. They can claim the rest of the credit when they file their 2021 federal income tax return next year. To help them do that, early in 2022, families will receive Letter 6419 documenting any advance payments issued to them during 2021 and the number of qualifying children used to calculate the advance payments.

Non-filers can get lump-sum next year; community partners can help

The IRS encourages partners and community groups to share information and use available online tools to help non-filers, low-income families and other underserved groups learn about the expanded Child Tax Credit. While it’s now too late to sign up for advance payments of the CTC during 2021, it’s not too late for eligible families to get the full benefit of the credit.

To do that, any eligible family who missed out on this year’s monthly payments can still get a lump-sum payment by filing a 2021 federal income tax return next year. This includes families who don’t normally need to file a return with the IRS.

Links to online tools, answers to frequently asked questions and other helpful resources are available on the IRS’ special advance CTC 2021 page.

Revenue Ruling 2021-24 provides interest rates for underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning January 1, 2022, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent.

Revenue Ruling 2021-24 will be in IRB: IRB 2021-50, dated December 13, 2021.

WASHINGTON –The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2022. The rates will be: 

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.  The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during October 2021 to take effect Nov. 1, 2021, based on daily compounding.

Revenue Ruling 2021-24, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2021-50, dated Dec. 13, 2021.

Attached is an advance copy of REG-109128-21 , proposed regulations, which provide that “minimum essential coverage,” as that term is used in health insurance-related tax laws, does not include Medicaid coverage that is limited to COVID-19 testing and diagnostic services provided under the Families First Coronavirus Response Act.  The proposed regulations also provide an automatic extension of time for providers of minimum essential coverage to furnish individual statements regarding such coverage, and an alternative method for furnishing individual statements when the shared responsibility payment amount is zero.  Lastly, the proposed regulations provide an automatic extension of time for “applicable large employers” to furnish statements relating to health insurance that the employer offers to its full-time employees.

WASHINGTON – With the 2022 tax season and the holidays rapidly approaching, the Internal Revenue Service, state tax agencies and the nation's tax industry today announced a special week focusing attention on taxpayers protecting sensitive financial information against identity thieves.

Working together as the Security Summit, the coalition of the IRS, the states and the nation’s tax community plan the 6th Annual National Tax Security Awareness Week to take place from Nov. 29-Dec. 3. The announcement coincides with International Fraud Awareness Week coming to a conclusion.

The Summit partners warned that taxpayers and tax professionals face a heightened risk in coming months as fraudsters continue to use the pandemic as a way of tricking people into sharing sensitive personal information by email, text message and online. Identity thieves can use that information to try filing tax returns and stealing refunds.

As Security Summit partners have increased their joint defenses against identity theft, including through the Identity Theft Information Sharing and Analysis Center (ISAC), fraudsters have increasingly looked for ways to obtain sensitive personal financial information to help slip past common defenses. That has made tax professionals – who hold valuable tax information for their clients – a tempting target for scam artists.
 
“The nation’s tax community has successfully joined forces to protect taxpayers through the Security Summit effort, but we need help in this continuing battle,” said IRS Commissioner Chuck Rettig. “Taxpayers and tax professionals are the first line of defense against scammers looking for refunds. We are entering a sensitive holiday and tax period, and we urge people to protect their personal information – and avoid problems at tax time.”
 
The IRS and Summit partners continue to see constantly evolving threats and scams. They can mimic IRS and others in the tax community with fake emails, texts and online scams. These schemes can lurk underneath COVID-related messages, stimulus payments or tax refunds. And they can frequently use recent tragedies or charitable groups to coax people into sharing sensitive financial data.

To help combat this, the Summit partner’s National Tax Security Awareness Week will feature a week-long series of educational materials to help protect individuals, businesses and tax pros from identity theft. The effort will include special informational graphics and a social media effort on Twitter and Instagram with @IRSnews and #TaxSecurity.

A special emphasis for this year will be focusing tax security awareness on younger and older Americans. Even if someone doesn’t file a tax return, their online interactions can lead to scam artists obtaining sensitive information and using it to try obtaining a refund.

As part of the larger effort, the IRS and Security Summit partners are sharing YouTube videos on security steps for taxpayers. The videos can be viewed or downloaded at Easy Steps to Protect Your Computer and Phone and Security Measures Help Protect Against Tax-Related Identity Theft.

Employers also can share Publication 4524, Security Awareness for Taxpayers, with their employees and customers while tax professionals can share with clients.

Highlights of this year’s National Tax Security Awareness Week include:

Day 1 - Cyber Monday: Protect personal and financial information online
The IRS and the Security Summit partners remind people to take these basic steps:

• Use security software for computers and mobile phones – and keep it updated.
• Avoid phishing scams, especially related to tax refunds and COVID-19, Economic Impact Payments and other tax law changes.
• Use strong and unique passwords for all accounts.
• Use multi-factor authentication whenever possible.
• Shop only secure websites; look for the "https" in web addresses and the padlock icon; avoid shopping on unsecured and public Wi-Fi in places like coffee shops, malls or restaurants.

Day 2 - Giving Tuesday: Beware of scammers using fake charities
The IRS and the Security Summit partners warn people to avoid getting scammed when donating to charities. The agency provides the following tips:

• Individuals should never let any caller pressure them into giving a donation without allowing time for them to do some research.
• Confirm the charity is real by asking for its exact name, website and mailing address and confirming it later.
• Be careful about how a donation is made. After researching the charity, pay by credit card or check and not by gift card or wiring money.

Day 3 – Get an Identity Protection PIN
Taxpayers who can verify their identities online may opt into the IRS IP PIN program – a major expansion of the program from previous years. This is another tool taxpayers can use to protect themselves – and their tax refund. Here’s what taxpayers need to know:

• The Identity Protection PIN or IP PIN is a six-digit code known only to the individual and the IRS. It provides another layer of protection for taxpayers’ Social Security numbers on tax returns.
• Use the Get an Identity Protection PIN (IP PIN) tool at IRS.gov/IPPIN to immediately get an IP PIN.
• Never share the IP PIN with anyone but a trusted tax provider.

Day 4 – Tax professionals should review their security protocols
As identity thieves continue targeting tax professionals, the IRS and the Summit partners urge practitioners to review the “Taxes-Security-Together” Checklist, including:

• Deploy basic security measures.
• Use multi-factor authentication to protect tax software accounts.
• Create a Virtual Private Network if working remotely.
• Create a written data security plan as required by federal law.
• Know about phishing and phone scams, especially related to Electronic Filing Identification Numbers (EFINs), COVID-19 related tax-law changes including Economic Impact Payments.
• Create data security and data theft recovery plans.

Day 4 - Use digital signatures to submit IRS forms and check account details on secure portal
The IRS began accepting digital signatures on a variety of forms this past year. Additionally, the agency made improvements to its online accounts platform to help both tax pros and individuals.

• Tax pros may go to the new Tax Pro Account on IRS.gov to digitally initiate Power of Attorney and Tax Information Authorization requests.
• Taxpayers have digital control over who can represent them or see their account information on the Online Account portal.
• The IRS now accepts a wide array of digital signatures on a number of forms that cannot be electronically filed.

Day 5 – Businesses should implement safeguards; watch out for tax-related scams
Most cyberattacks are aimed at small businesses with fewer than 100 employees. Here are some details from this segment:

• Learn about best security practices for small businesses.
• IRS continues protective masking of sensitive information on business transcripts.
• A Business Identity Theft Affidavit – Form 14039-B – is available for all businesses to report theft to the IRS.
• Beware of various scams, especially the W-2 scam that attempts to steal employee income information.
• Check out the “Business” section on IRS’s Identity Theft Central at IRS.gov/identify theft.

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Also today, the IRS published the latest executive column “A Closer Look,” which features James Lee, IRS Criminal Investigation Chief, and Damon Rowe, Executive Director, IRS Office of Fraud Enforcement, providing a glimpse of how the IRS investigates and helps prosecute fraud.

Today, the IRS published the latest executive column “A Closer Look,” which features James Lee, IRS Criminal Investigation Chief, and Damon Rowe, Executive Director, IRS Office of Fraud Enforcement, providing a glimpse of how the IRS investigates and helps prosecute fraud. “As financial crimes become more complex, we will do our best to make sure our investigators  stay ahead of the game,” said Lee. “Combined with your vigilance, we can help stamp out fraud and keep the American people safe.” 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 2021-48 provides that taxpayers may treat amounts that are excluded from gross income (tax-exempt income) in connection with the forgiveness of Paycheck Protection Program (PPP) Loans as received or accrued: (1) as eligible expenses are paid or incurred, (2) when an application for PPP Loan forgiveness is filed, or (3) when PPP Loan forgiveness is granted.  To the extent tax-exempt income resulting from the forgiveness of a PPP Loan is treated as gross receipts under a particular Federal tax provision, this revenue procedure applies for purposes of determining the timing and, to the extent relevant, reporting of such gross receipts.

Revenue Procedure 2021-49 provides guidance for partnerships and consolidated groups regarding amounts excluded from gross income and deductions relating to the Paycheck Protection Program and certain other COVID-19 relief programs.  More specifically: This revenue procedure provides guidance for partners and their partnerships regarding allocations under § 704(b) of the Internal Revenue Code and  the corresponding adjustments to be made with respect to the partners’ bases in their partnership interests under § 705 of the Code. This revenue procedure also provides guidance under § 1502 of the Code and § 1.1502-32 of the Income Tax Regulations regarding the corresponding basis adjustments for stock of subsidiary members of consolidated groups as a result of tax exempt income arising from certain forgiven PPP Loans, grant proceeds, or subsidized payment of certain principal, interest and fees.

Revenue Procedure 2021-50 allows eligible BBA partnerships to file amended Forms 1065 and furnish amended Schedules K-1 on or before December 31, 2021, to adopt the guidance set forth in Rev. Procs. 2021-48 and 2021-49 if certain requirements are met.

All three of these revenue procedures will be published in Internal Revenue Bulletin 2021-49 on Dec. 6, 2021.

Notice 2021-62 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for November 2021 used under § 417(e)(3)(D), the 24-month average segment rates applicable for November 2021, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv). 

Notice 2021-62 will be in IRB:   2021-49, dated December 6, 2021.