WASHINGTON — Victims of Hurricane Ida in parts of Mississippi now have additional time--until Jan. 3, 2022--to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

Following last week’s disaster declaration by the Federal Emergency Management Agency (FEMA), the IRS is offering this expanded relief to those parts of the state newly designated for either individual or public assistance. Previously, the IRS had provided special relief to the entire state of Mississippi, generally postponing various tax-filing and tax-payment deadlines until Nov. 1, 2021.

Currently, the expanded relief applies to Amite, Claiborne, Copiah, Covington, Franklin, Georgia, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Pearl River, Pike, Simpson, Walthall, Wayne and Wilkinson counties. Any jurisdiction added to the Oct. 22 FEMA declaration will automatically receive the expanded IRS relief.

The deadline remains Nov. 1 for affected taxpayers in other parts of Mississippi. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The new relief postpones various tax filing and payment deadlines that occurred starting on Aug. 28, 2021. As a result, affected individuals and businesses will have until Jan. 3, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2020 return that ran out on Oct. 15, 2021, will now have until Jan. 3, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.

The Jan. 3, 2022 deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2021, and the quarterly payroll and excise tax returns normally due on Nov. 1, 2021. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions ran out on Sept. 15, 2021 and calendar-year corporations whose 2020 extensions ran out on Oct. 15, 2021. It also applies to calendar-year tax-exempt organizations whose 2020 extensions run out on Nov. 15, 2021.

In addition, penalties on payroll and excise tax deposits due on or after Aug. 28, 2021 and before Sept. 13, will be abated as long as the deposits were made by Sept. 13, 2021.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year (2020). Be sure to write the FEMA declaration number – EM-3569 associated with the earlier relief or EM-4626 for the new relief−on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

When taxpayers decide to support a cause they care about, they want their donation to do as much good as possible. Doing some research can help ensure donations go to legitimate and qualified charities and help donors avoid scams. The IRS’s Tax Exempt Organization Search tool, is a great place to start.

Here are some key features and functions of this tool:

Users may also download complete lists of organizations eligible to receive deductible contributions, auto-revoked organizations and e-Postcard filers using links on the Tax Exempt Organization Search page of IRS.gov.

More Information:
Can I Deduct my Charitable Contributions?
2021 Dirty Dozen Tax Scams
Expanded tax benefits help individuals and businesses give to charity in 2021

Share this tip on social media -- #IRSTaxTip: Taxpayers can find legitimate charities using the Tax Exempt Organization Search tool. https://go.usa.gov/xeqTh

WASHINGTON – The Internal Revenue Service today reminded families, teens and senior citizens about the continued importance of protecting personal and financial information (.pdf) online. Although the IRS and its Security Summit partners continue making strides in fighting identity theft and fraudulent tax returns, help is needed.

The Security Summit works to protect taxpayers from criminals that file fraudulent returns for refunds. The Summit coalition includes representatives of the software industry, tax preparation firms, payroll and tax financial product processors as well as state tax administrators and the IRS, which work together year-round to protect taxpayers.

During National Cybersecurity Month, the IRS is asking parents, families and others to be mindful of the pitfalls that can be found by sharing devices at home, shopping online and through navigating various social media platforms. Often, those who are less experienced can put themselves and others at risk by leaving an unnecessary trail of personal information for fraudsters.

Staying safe online

Here are a few common-sense suggestions that can make a difference for children, teens and other vulnerable groups to potential dangers to protect their personal data:

Remember, the IRS does not use text messages or social media to discuss personal tax issues, such as those involving tax refunds, stimulus payments or tax bills. For more information, visit the Tax Scams and Consumer Alerts page on IRS.gov. Additional information about tax scams is also available on IRS social media sites, including YouTube videos. Also see Publication 4524, Security Awareness for Taxpayers (.pdf).

WASHINGTON — To help address COVID-related labor shortages, the Internal Revenue Service today reminded employers that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan’s normal retirement age.

With the COVID-19 pandemic, many employers, including governmental employers (such as public school districts), are looking for ways to encourage retirees to return to the workforce to fill open positions and experienced employees to stay on the job.

The IRS is providing help to these employers in two new frequently asked questions (FAQs), designed to offer technical guidance to public and private employers who sponsor pension plans for their employees. The FAQs highlight existing ways that employers can meet their employment objectives and still comply with the plan qualification rules.

Under the FAQs, an employer can generally choose to address unforeseen hiring needs by rehiring former employees, even if those employees have already retired and begun receiving pension benefit payments. Also, if permitted under plan terms, those employees may continue receiving the benefits after they are rehired. Moreover, an employer can generally choose to make retirement distributions available to existing employees who have reached age 59 ½ or the plan’s normal retirement age. This may assist in the retention of employees eligible for retirement.

Further details can be found in the two new FAQs now posted on IRS.gov.  Also, next Wednesday and Thursday (Oct 27 and 28) from 4-5 pm ET, the Department of the Treasury and the Department of Education will be holding webinars for education leaders and other stakeholders to discuss approaches to addressing school staff labor shortages, including a discussion about these new FAQs. 

Webinar 1: Teacher and substitute teacher shortages                      
Time: Oct 27, 2021 04:00 PM Eastern Time. Participants should pre-register.

Webinar 2: Staff shortages, such as school bus drivers and food service workers
Time: Oct 28, 2021 04:00 PM Eastern Time. Participants should pre-register. 

Notice 2021-56 sets forth current standards that a limited liability company (LLC) must satisfy to receive a determination letter recognizing it as tax-exempt under section 501(a) of the Internal Revenue Code and described in section 501(c)(3). This notice also requests public comments on these standards as well as specific issues relating to tax-exempt status for LLCs. This notice does not affect the status of organizations currently recognized as described in section 501(c)(3).

Notice 2021-56 will be published in IRB 2021-45 on November 8, 2021.

WASHINGTON — The Internal Revenue Service reminds the more than 759,000 federal tax return preparers they must renew their Preparer Tax Identification Numbers (PTINs) now for 2022. All current PTINs will expire Dec. 31, 2021.

“Taxpayers are relying on your expertise to help them meet their tax obligations and for some to complete their largest financial transaction for the year. Make sure you’re ready by renewing your PTIN now,” said Carol A. Campbell, director, Return Preparer Office.

Anyone who prepares or assists in preparing a federal tax return for compensation must have a valid PTIN from the IRS before preparing returns. The PTIN needs to be included as the identifying number on any return filed with the IRS. All Enrolled Agents must also have a valid PTIN.

The fee to renew or obtain a PTIN is $35.95 for 2022. The PTIN fee is non-refundable, and the exact amount must be paid to complete the PTIN process.

Tax preparers with a 2021 PTIN should use the online renewal process, which takes about 15 minutes to complete. Form W-12, along with the instructions, provides a paper option for PTIN applications and renewals. However, the paper form can take four to six weeks to process. Failure to have and use a valid PTIN may result in penalties.

To renew a PTIN online:

Once completed, users will receive confirmation of their PTIN renewal.

The online system not only allows PTIN renewal, but can also be used by tax preparers to view a summary of the number of filed returns their PTIN has appeared on in the current year, and to receive communications through a secure mailbox from the IRS Return Preparer Office.

First-time PTIN applicants can also apply for a PTIN online.

To apply for a PTIN online:

Opportunity for non-credentialed tax preparers

The Annual Filing Season Program is a voluntary IRS program intended to encourage non-credentialed tax return preparers to take continuing education courses to increase their knowledge and improve their filing season readiness.

Those who choose to participate must renew their PTIN, complete 18 hours of continuing education from IRS-approved CE providers and consent to adhere to specific obligations in Circular 230 by Dec. 31, 2021. The IRS has a video available on how to sign the Circular 230 consent and print the Record of Completion.

After completing the steps, the return preparer receives an Annual Filing Season Program Record of Completion from the IRS. Program participants are then included in a public directory of return preparers with credentials and select qualifications on the IRS website.

The searchable IRS directory helps taxpayers find preparers in their area who have completed the program or hold professional credentials recognized by the IRS.

Enrolled Agent credential

The Enrolled Agent credential is an elite certification issued by the IRS to tax professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation and representation matters. Enrolled Agents have unlimited representation rights, allowing them to represent any client before the IRS on any tax matter.

As non-credentialed return preparers think about next steps in their professional career, the IRS encourages them to consider becoming an Enrolled Agent.

All Enrolled Agents, regardless of whether they prepare returns, must renew their PTIN annually in order to maintain their active status.

Notice 2021-60 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for October 2021 used under § 417(e)(3)(D), the 24-month average segment rates applicable for October 2021, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv). 

 

The IRS and its community partners encourage people to make a difference in communities across the country by becoming an IRS-certified volunteer. These volunteers will help taxpayers file their tax returns during the upcoming tax season.

• Volunteer Income Tax Assistance offers free tax return preparation to eligible taxpayers who generally earn $58,000 or less, people with disabilities and limited English-speaking taxpayers.
• Tax Counseling for the Elderly is mainly for people age 60 or older. Although the program focuses on tax issues unique to seniors, most taxpayers can usually get free assistance. Many sites in the TCE program are operated through AARP Foundation Tax-Aide.

There are many reasons to volunteer:

• Volunteers can work flexible hours. Volunteers can generally choose their own hours and days to volunteer. Tax preparation sites are usually open from late January through the tax filing deadline in April. Some sites are even open all year.
• Volunteers can work virtually from anywhere. Some volunteer sites will offer virtual help for taxpayers. This allows volunteers to help taxpayers complete their tax returns over the phone or online. Some volunteers will conduct a virtual quality review with the taxpayer before e-filing their tax return.
• No prior experience needed. Volunteers receive specialized training to become IRS-certified. They can also choose from a variety of volunteer roles to serve. VITA and TCE programs want volunteers of all backgrounds and ages, as well as individuals who are fluent in other languages.
• The IRS provides free tax law training and materials. Volunteers receive training materials at no charge. The tax law training covers how to prepare basic federal tax returns electronically. The training also covers tax topics, such as deductions and credits.
• Tax pros can earn continuing education credits. Enrolled agents and non-credentialed tax return preparers can earn continuing education credits when volunteering as a VITA or TCE instructor, quality reviewer or tax return preparer.
• Read testimonials from real VITA volunteers. Learn more about volunteers who help people in their communities.

More Information:
VITA Volunteer sign-up page
Learn new skills as an IRS-certified volunteer
IRS Free Tax Return Preparation Programs
Link & Learn Taxes

Share this tip on social media -- #IRSTaxTip: Here’s how people can become an IRS-certified volunteer. https://go.usa.gov/xMtS2

WASHINGTON — The Internal Revenue Service today reminded employers that the next quarterly payroll tax return is due Nov. 1, 2021. The IRS urges employers to use the speed and convenience of filing the returns electronically. 

E-filing is the most accurate method to file returns and saves taxpayers time by performing calculations and auto-populating forms and schedules with a step-by-step process. The IRS acknowledges receipt of e-filed returns within 24 hours, giving taxpayers reassurance that their return was not misplaced or lost in the mail. Electronically filed returns reduce processing time and have fewer errors, which reduces a taxpayer's chance of receiving an IRS notice. E-file users also receive missing information alerts. 

Two options for electronically filing payroll tax returns: Self file

• Purchase IRS-approved software.
• Business owners may need to pay a fee to electronically file their returns.
• Apply for an online signature PIN or scan and attach Form 8453-EMP for the required signature. Tax professional file 
• Use the Authorized IRS e-file Provider Locator Service to find a tax professional who can file on behalf of the business. 

The IRS requires all authorized IRS e-file providers to ensure only authorized users have access to secure information. Only the business owner, authorized signers and reporting agents can apply for an online signature PIN. Third parties (such as attorneys, CPAs, tax return preparers or other tax professionals) can't request a PIN on behalf of the business, nor can they use the PIN to sign returns on behalf of their clients. 

For more information on electronic filing of payroll tax returns, see the E-file Employment Tax Forms page. 

COVID-related Employer Tax Credits 

For more information about other Coronavirus-related tax relief, visit IRS.gov/Coronavirus. 

Advance Child Tax Credit 

The IRS encourages employers to help get the word out about the advance payments of the Child Tax Credit. Employers have direct access to many who may receive this credit. More information on the Advance Child Tax Credit is available on IRS.gov. The website has tools employers can use to deliver this information, including e-posters, drop-in articles (for paycheck stuffers, newsletters) and social media posts to share. 

For more information see Advance Child Tax Credit Payments.

WASHINGTON — The Internal Revenue Service is joining international organizations and other regulators in highlighting Charity Fraud Awareness Week, Oct. 18-22. 

The campaign is run by a partnership of charities, regulators, law enforcers and other not-for-profit stakeholders from across the world. The purpose of the week is to raise awareness of fraud and cybercrime affecting organizations and to create a safe space for charities and their supporters to talk about fraud and share good practice. 

According to the Fraud Advisory Panel, a UK-based organization leading the effort, cybercrime is on the rise, exacerbated by the pandemic, including attacks on charities, their supporters and beneficiaries. It estimates that the average charitable organization will lose 5% of its revenue to fraud each year. The IRS is a partner in Charity Fraud Awareness Week as part of its ongoing commitment to fight fraud against charities, businesses and individuals. 

In addition to cybercrime targeting charities, criminals who create fake charities are also a problem. Fake charities are once again part of the IRS’s “Dirty Dozen” tax scams for 2021. Taxpayers can find legitimate and qualified charities with the Tax Exempt Organization Search tool on IRS.gov. 

“We especially advise taxpayers to be on the lookout for scammers who set up fake organizations to take advantage of the public's generosity,” said IRS Director of Exempt Organizations and Government Entities Rob Malone. “They take advantage of tragedies and disasters, such as the COVID-19 pandemic. Campaigns like Charity Fraud Awareness Week can help remind everyone to remain vigilant.” 

Scams requesting donations for disaster relief efforts are especially common on the phone. Taxpayers should always check out a charity before they donate, and they should not feel pressured to give immediately. 

A cornerstone of international Charity Fraud Awareness Week is a social media campaign focused on the theme of “We Can Do This” and featuring the hashtag #StopCharityFraud. 

A special website was created for the campaign and features information to help partners, charities and other tax-exempt organizations and non-profits find:

Those encouraged to participate in the week’s activities include: