Notice 2024-29 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for February 2024 used under § 417(e)(3)(D), the 24-month average segment rates applicable for March 2024, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

Notice 2024-29 will be in IRB: 2024-14, dated April 1, 2024.

Notice 2024-31 provides for adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for the 2024 tax year. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States. If the limitation on housing expenses is higher for the 2024 tax year than the adjusted limitations on housing expenses provided in Notice 2023-26, qualified taxpayers may apply the adjusted limitations in this notice for the 2024 tax year to their 2023 tax year.

Notice 2024-31 will be in IRB: 2024-15, dated Monday, April 8, 2024.

WASHINGTON — To counter promoters that marketed misleading information about the Employee Retention Credit (ERC), the Internal Revenue Service urged businesses to review seven suspicious signs of a bad claim and see if the agency’s special programs can help them avoid future compliance issues.

To combat a wave of dubious ERC claims, the IRS has sharply increased compliance action through audits and criminal investigations – with more activity planned in the future. To help those businesses that were misled, the IRS has created special programs to help, including a limited-time offer through March 22 for employers to correct improper ERC claims at a sharp discount.

Employers who improperly claimed ERC can avoid penalties and interest – and even get a discount on repayments if they apply by March 22, 2024, to the ERC Voluntary Disclosure Program. The IRS also offers a special claim withdrawal process for businesses whose claim is still pending. Taking steps now to resolve these issues can help businesses get right and avoid future IRS action, and the agency urged businesses to immediately seek the help of a trusted tax professional to get help.

“Time is running out to take advantage of special IRS programs designed to help businesses misled into making questionable Employee Retention Credit claims,” said IRS Commissioner Danny Werfel. “We have set up a special program that allows repayment of bad claims at a steep discount, and we’re also offering those with pending claims to withdraw with no strings attached. Good people have gotten caught up in the frenzy around this credit, and the IRS wants to help those who want to get right through these special, limited-time programs. There are seven important red flags that businesses should review to determine if their claim is questionable.”

Seven suspicious signs an ERC claim could be incorrect

• Too many quarters being claimed. Some promoters urged employers to claim the ERC for all quarters that the credit was available. Qualifying for all quarters is uncommon. Employers should carefully review their eligibility for each quarter.
• Government orders that don’t qualify. Some promoters told employers they can claim the ERC if any government order was in place in their area, even if their operations weren’t affected or if they chose to suspend their business operations voluntarily. This is false. To claim the ERC under government order rules:
• • Government orders must have been in effect and the employer’s operations must have been fully or partially suspended by the government order during the period for which they’re claiming the credit.
  • The government order must be due to the COVID-19 pandemic.
  • The order must be a government order, not guidance, a recommendation or a statement.

Some promoters suggest that an employer qualifies based on communications from the Occupational Safety and Health Administration (OSHA). This is generally not true. See the ERC FAQ about OSHA communications and the 2023 legal memo on OSHA communications for details and examples.

The frequently asked questions about ERC – Qualifying Government Orders section of IRS.gov has helpful examples. Employers should make sure they have documentation of the government order related to COVID-19 and how and when it suspended their operations. Employers should avoid a promoter that supplies a generic narrative about a government order.

• Too many employees and wrong calculations. Employers should be cautious about claiming the ERC for all wages paid to every employee on their payroll. The law changed throughout 2020 and 2021. There are dollar limits and varying credit amounts, and employers need to meet certain rules for wages to be considered qualified wages, depending on the tax period. Employers should review all calculations to avoid overclaiming the credit. They should not use the same credit amount across multiple tax periods for each employee. For details on credit amounts, see the ERC 2020 vs 2021 Comparison Chart.
• Business citing supply chain issues. Qualifying for ERC based on a supply chain disruption is very uncommon. A supply chain disruption by itself doesn’t qualify an employer for ERC. An employer needs to ensure that their supplier’s government order meets the requirements. Employers should carefully review the rules on supply chain issues and examples in the 2023 legal memo on supply chain disruptions.
• Business claiming ERC for too much of a tax period. It's possible, but uncommon, for an employer to qualify for ERC for the entire calendar quarter if their business operations were fully or partially suspended due to a government order during a portion of a calendar quarter. A business in this situation can claim ERC only for wages paid during the suspension period, not the whole quarter. Businesses should check their claim for overstated qualifying wages and should keep payroll records that support their claim.
• Business didn’t pay wages or didn’t exist during eligibility period. Employers can only claim ERC for tax periods when they paid wages to employees. Some taxpayers claimed the ERC but records available to the IRS show they didn’t have any employees. Others have claimed ERC for tax periods before they even had an employer identification number with the IRS, meaning the business didn’t exist during the eligibility period. The IRS has started disallowing these claims, and more work continues in this area as well as other aspects of ERC.
• Promoter says there’s nothing to lose. Businesses should be on high alert with any ERC promoter who urged them to claim ERC because they “have nothing to lose.” Businesses that incorrectly claim the ERC risk repayment, penalties, interest, audit and other expenses.

The IRS has an interactive ERC Eligibility Checklist that tax professionals and taxpayers can use to check potential eligibility for ERC. It’s also available as a printable guide. The IRS’s frequently asked questions on ERC also include links to additional resources and some helpful examples.

More details on ERC Voluntary Disclosure Program, special withdrawal option

The IRS has two programs to voluntarily resolve improper claims and reduce costs and follow-up steps for businesses who fell for misinformation and aggressive marketing about the ERC.

• The ERC Voluntary Disclosure Program, available through March 22, 2024, is for employers who need to repay ERC they received by Dec. 21, 2023, either as a refund or as a credit on a tax return. This option lets a taxpayer repay the incorrect ERC, minus 20%, for any tax period they weren’t eligible for ERC. Generally, businesses who enter this program don’t have to amend other returns affected by the incorrect ERC and don’t have to repay interest they received from the IRS on an ERC refund.
• Businesses should quickly pursue the claim withdrawal process if they need to ask the IRS not to process an ERC claim for any tax period that hasn’t been paid yet. Taxpayers who received an ERC check but haven’t cashed or deposited it can also use this process to withdraw the claim and return the check. The IRS will treat the claim as though the taxpayer never filed it. No interest or penalties will apply.

WASHINGTON - As the April 15 filing deadline approaches, the Internal Revenue Service issued a reminder to taxpayers on ways to prevent typical errors on their federal tax returns to help speed potential refunds.

Collect all tax-related paperwork
Taxpayers should collect all key documents, including Forms W-2 and 1099, as well as any supporting paperwork for tax deductions or credits such as educational credits or mortgage interest payments. Additionally, having the previous year's tax return accessible is advisable as it may be required.

Use electronic filing
The IRS advises taxpayers and their tax advisors use electronic filing methods such as IRS Free File or alternative e-file service providers. The Direct File pilot is available for some taxpayers in 12 states. Electronic filing minimizes mathematical errors and identifies potential tax credits or deductions for which the taxpayer qualifies.

It's essential for taxpayers to carefully review their tax returns to ensure accuracy. Opting for electronic filing and selecting direct deposit is the fastest and safest way to receive a refund.

Ensure filing status is correct
Tax software serves to prevent errors in selecting a tax return filing status. For taxpayers unsure of their filing status, the Interactive Tax Assistant on IRS.gov can assist in choosing the correct status, particularly when multiple statuses might apply.

Make sure names, birthdates and Social Security numbers are correct
Taxpayers must accurately provide the name, date of birth and Social Security number for each dependent listed on their individual income tax return. The SSN and individual's name should be entered precisely as indicated on the Social Security card.

In cases where a dependent or spouse lacks a SSN and is ineligible to obtain one, an assigned Individual Tax Identification Number (ITIN) should be listed instead of a SSN.

Answer the digital assets question
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 digital assets in 2023. Taxpayers must report all income related to digital asset transactions.

See IRS.gov Digital Assets | Internal Revenue Service for details on when to check “yes” and how to report the income.

Report all taxable income
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 earnings, unemployment benefits and income derived from the service industry, gig economy and digital assets. For further details, consult Publication 525, Taxable and Nontaxable Income.

Make sure banking routing and account numbers are correct
Taxpayers have the option to request direct deposit of a federal refund into one, two or even three accounts. Provide correct banking information: If expecting a refund, ensure the routing and account numbers provided for direct deposit are accurate to avoid delays or misdirected refunds.

Additionally, taxpayers can use their refund to buy U.S. Savings Bonds.

Remember to sign and date the return
When submitting a joint return, it is required for both spouses to sign and date the return. If taxpayers are preparing their taxes independently and filing electronically, they need to sign and authenticate their electronic tax return by inputting their adjusted gross income (AGI) from the prior year. Taxpayers can refer to "Validating Your Electronically Filed Tax Return" for guidance if they have any inquiries.

Ensure address is correct if mailing paper returns
Taxpayers and tax professionals are urged to choose electronic filing whenever possible. However, for those who must submit a paper tax return, it's essential to verify the accurate mailing address either on IRS.gov or in the instructions provided with Form 1040 to prevent processing delays.

Keep a copy of the tax return
Upon readiness to file, taxpayers should create duplicates of their signed return and any accompanying schedules for their personal records. Maintaining copies can help them prepare future tax returns and figure mathematical computations in the event of filing an amended return. Typically, taxpayers should retain records supporting income, deductions or credits claimed on their tax return until the period of limitations for that specific tax return expires.

Request an extension, if needed
Taxpayers requiring more time to file their taxes can easily request a six-month extension until October 15, thereby avoiding late filing penalties. This extension can be requested either through IRS Free File or by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by April 15. It's important to note that while an extension provides extra time for filing, tax payments are still due on April 15 for most taxpayers.

Alternatively, taxpayers can seek an extension by making a full or partial payment of their estimated income tax and indicating that the payment is for an extension. This can be done using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit/credit card or digital wallet. By doing so, taxpayers avoid the necessity of filing a separate extension form and receive a confirmation number for their records.

 

WASHINGTON — The Internal Revenue Service today reminded individuals and businesses that the agency continues to increase the amount of information available in multiple languages.

As the tax filing deadline approaches, the IRS reminds taxpayers that there a variety of ways that people can get help in multiple languages. IRS work in the multilingual area continues to expand, and providing information in more languages is part of the IRS transformation work under the Strategic Operating Plan, made possible by additional resources provided by the Inflation Reduction Act.

“The IRS is committed to making further improvements for taxpayers in a wide range of areas, including expanding options available to taxpayers in multiple languages,” said IRS Commissioner Danny Werfel. “Understanding taxes can be challenging enough, so it’s important for the IRS to put a variety of information on IRS.gov and other materials into the language a taxpayer knows best. This is part of the larger effort by the IRS to make taxes easier for all taxpayers.”

On the IRS website, much of the information has now been translated into seven languages other than English. Taxpayers can simply select their preferred language from the dropdown menu at the top of the page, including Spanish, Vietnamese, Russian, Korean, Haitian Creole, Traditional Chinese and Simplified Chinese.

In addition, a special resource page on IRS.gov is offered in even more languages. The Languages page gives taxpayers an overview of key topics related to information about federal taxes in 21 languages. Topics include:

• Your Rights as a Taxpayer
• Who Needs to File
• Filing for Your Business
• Get Help Preparing Your Tax Return
• Refunds

Designate a preferred language

As the IRS continues translating more information into multiple languages, taxpayers have the option to tell the IRS what language they’d like to use now.

The Schedule LEP, with instructions available in multiple languages, can be filed with a tax return by those taxpayers who prefer to communicate with the IRS in another language. If available, the IRS will then send letters, notices and other information to that taxpayer in their preferred language.

The IRS's commitment to taxpayers who speak various languages is part of a multiyear effort that began several years ago, expanding during the pandemic period and intensifying under the current IRS transformation work. The IRS strives to serve all taxpayers, no matter where they live, their background or what language they speak.

Interpretation services

If taxpayers can't find the answers to their tax questions on IRS.gov, taxpayers can call the IRS or get help in-person at an IRS Taxpayer Assistance Center.

Over the phone, the IRS offers help in more than 350 languages with the support of professional interpreters. For assistance in English and Spanish, taxpayers should call 800-829-1040. For all other languages, taxpayers should call 833-553-9895.

IRS phone help:

• Can provide an interpreter over the phone.
• Can schedule an appointment for the taxpayer at one of IRS's local Taxpayer Assistance Centers so they can get help face-to-face. Local offices provide assistance only on specific topics.

In addition, hundreds of IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs across the country have access to Over the Phone Interpreter (OPI) services. VITA and TCE offer free basic tax return preparation to qualified individuals.

Other language resources

• IRS Publication 17, Your Federal Income Tax is available in seven languages.
• The IRS YouTube multilingual channel now has videos in five different languages.
• IRS social media platforms offer the latest news and information in multiple languages. Find more at @IRSnews, @IRSenEspanol.
• Tax Updates and News From the IRS, available in seven languages, includes the latest filing season updates and the latest info on mileage rates, inflation adjustments and more.

Revenue Ruling 2024-07 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 2024-07 will be in IRB: 2024-14, dated April 1, 2024.

WASHINGTON ― With the April 15 filing deadline approaching, the Internal Revenue Service encourages taxpayers who may find it difficult to gather the necessary documents they need to file or pay the taxes they owe to consider several options offered on IRS.gov to avoid late filing and interest penalties.

This is the last in a four-part series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. As taxpayers approach the April 15 deadline, those who owe taxes can benefit from knowing their options.

Eligible individuals and families who earned $79,000 or less in 2023 can use IRS Free File on IRS.gov, to electronically file their taxes. But all taxpayers, regardless of income, who need more time to file a return can use IRS Free File as an easy and quick way to electronically file for a six-month extension before April 15, 2024. An extension will help to avoid penalties and interest for failing to file on time, and gives taxpayers until Oct. 15, 2024, to file. However, they still must pay what they owe by the April 15 deadline.

Except for eligible victims of recent natural disasters who have until Oct. 15 to make tax payments, taxpayers who can’t pay the full amount of taxes they owe by April 15 should file and pay what they can to reduce total penalties and interest.

There are multiple ways to make electronic payments and there are options for a payment plan or an agreement with the IRS.

IRS Online Account

An IRS Online Account provides taxpayers access to important information when preparing to file a tax return, pay a balance or follow up on notices. Taxpayers can view their information online including:

• Adjusted Gross Income.
• Payment history and any scheduled or pending payments.
• Payment plan details.
• Digital copies of select notices from the IRS.

Taxpayers can also use their Online Account to securely make a same-day payment for an outstanding 2023 tax balance, pay quarterly estimated taxes for the 2024 tax season or request an extension to file a 2023 return.

Interest and a late payment penalty will apply to any payments made after April 15. Making a payment, even a partial payment, will help limit penalty and interest charges.

Other electronic options

Direct Pay, available at IRS.gov, is the fastest, easiest way to make a one-time payment without signing into an IRS Online Account.

• Direct Pay: Direct Pay is free and allows taxpayers to securely pay their taxes directly from their checking or savings account without any fees or registration. Taxpayers can schedule payments up to 365 days in advance. After submitting a payment through Direct Pay, taxpayers will receive immediate confirmation.
• IRS2Go mobile app: IRS2Go is the official mobile app of the IRS. Taxpayers can check their refund status, make a payment, find free tax preparation assistance, sign up for helpful tax tips and more. IRS2Go is available in both English and Spanish.
• Electronic Funds Withdrawal (EFW): This option allows taxpayers to file and pay electronically from their bank account when using tax preparation software or a tax professional. This option is free and only available when electronically filing a tax return.
• Electronic Federal Tax Payment System: This free service gives taxpayers a safe, convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can call 800-555-4477 or visit eftps.gov.
• Debit or credit card and digital wallet: Individuals can pay online, by phone or with a mobile device through any of the authorized payment processors. Processors do charge a fee to use these services. The IRS doesn’t receive any fees for these payments. Authorized card processors and phone numbers are available at IRS.gov/payments.

Other payment options

• Cash: For taxpayers who prefer to pay in cash, the IRS offers a way to pay taxes at one of its many retail partners. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, are at IRS.gov/paywithcash.
• Check or money order: Payments made by check or money order should be made payable to the “United States Treasury.” To make sure that the payment gets credited promptly, taxpayers should also enclose a 2023 Form 1040-V payment voucher and print the following on the front of the check or money order:
• • “2023 Form 1040”.
  • Name.
  • Address.
  • Daytime phone number.
  • Social Security number.

Help for taxpayers who cannot pay in full

The IRS encourages taxpayers who cannot pay in full to pay what they can and consider a variety of payment options available for the remaining balance including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties that the IRS must charge under federal law. Taxpayers should act as quickly as possible and are urged not to wait to respond to a notice: Tax bills accumulate more interest and fees the longer they remain unpaid. For all payment options, visit IRS.gov/payments.

Online self-service payment plans

Most individual taxpayers qualify for a payment plan and can use Online Payment Agreement to set up a payment plan (including an installment agreement) to pay off an outstanding balance over time.

Once the online application is complete, the taxpayer receives immediate notification of whether their payment plan has been approved. Taxpayers can setup a plan using the Online Payment Agreement in a matter of minutes. There’s no paperwork and no need to call, write or visit the IRS. Setup fees may apply for some types of plans.

Online payment plan options for individual taxpayers include:

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.
• Long-term payment plan (installment agreement) – The total balance owed is less than $50,000 in combined tax, penalties and interest. Pay in monthly payments for up to 72 months. Payments may be set up using direct debit (automatic bank withdraw) which eliminates the need to send in a payment each month, saving postage costs and reducing the chance of default. For balances between $25,000 and $50,000, direct debit is required.

Qualified taxpayers with existing payment plans may be able to use the Online Payment Agreement to make changes including revising payment dates, payment amounts or bank information for payments made by direct debit. Go to Online Payment Agreementfor more information.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay tax penalty rate is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on the IRS’ Additional Information on Payment Plans webpage.

Other payment options

Taxpayers struggling to meet their tax obligation may also consider these additional payment options:

• Offer in Compromise – Certain taxpayers qualify to settle their tax liabilities for less than the total amount they owe by submitting an Offer in Compromise. To help determine their eligibility, they can use the Offer in Compromise Pre-Qualifier tool.
• Temporary delay of collection – Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves. Penalties and interest continue to accrue until the full amount is paid.
• Other payment plan options – Taxpayers who do not qualify for online self-service should contact the IRS using the phone number or address on their most recent notice for other payment plan options. For individuals and out-of-business sole proprietors who are already working with IRS Campus Collection and who owe $250,000 or less, one available option is to propose a monthly payment that will pay the balance over the length of the Collection Statute (usually 10 years). These payment plans don’t require a financial statement, but they do require a determination for the filing of a Notice of Federal Tax Lien.

For more information about payments, see Topic No. 202, Tax Payment Options, on IRS.gov.

Taxpayer rights

The IRS reminds taxpayers that they have rights and protections throughout the collection process. For details, see Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer.

Taxpayers should know before they owe. The IRS encourages all taxpayers to check their withholdings with the IRS Tax Withholding Estimator.

This information is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

WASHINGTON – The Joint Board for the Enrollment of Actuaries is retroactively extending the temporary waiver of its physical presence requirement for continuing professional education (CPE) programs and is proposing regulations to eliminate this in-person requirement altogether.

Adopted as a pandemic-related safety measure, the original temporary waiver, announced on Aug. 10, 2020, applied to any formal CPE program conducted from Jan. 1, 2020, through Dec. 31, 2022. Without this waiver, an enrolled actuary earning credit hours for a formal program would need to do so while being in the same physical location with at least two other participants engaged in substantive pension service.

The Joint Board has issued proposed regulations eliminating the physical presence requirement altogether. Therefore, the Joint Board is extending the temporary waiver until the date the proposed regulations are finalized. Accordingly, the extended waiver applies to CPE credits earned for programs held during the period from Jan. 1, 2023, through the date that is 30 days after the publication of the Treasury decision finalizing these proposed regulations.

Like the original waiver, the extended waiver applies to all enrolled actuaries, whether they are in active or inactive status, and all other CPE requirements remain unchanged. Enrolled actuaries are still required to earn the same number of credit hours under formal programs that would otherwise be required. The other requirements for a formal program continue to apply, including all requirements for a qualifying program under the Joint Board regulations, attendance by at least three participants engaged in substantive pension service and an opportunity for participants to interact with the instructor during the program. In addition, the certificate of completion or instruction issued by a qualifying sponsor of the program must indicate that the program is a formal program.

An enrolled actuary is anyone who meets the requirements established by the Joint Board and is approved to perform actuarial services under the Employee Retirement Income Security Act (ERISA) of 1974. The Joint Board’s most recent roster of enrolled actuaries, posted on IRS.gov, lists more than 3,300 individuals. More information about the Joint Board and enrolled actuaries can be found on the Enrolled Actuaries page on IRS.gov.

WASHINGTON – The Internal Revenue Service announced today that Guy Ficco will become the new IRS Criminal Investigation chief effective on April 1.

Ficco, the current Deputy Chief and a 29-year agency veteran, will succeed James Lee, who announced last month that he will retire at the end of March. In his new role, Ficco will oversee a worldwide staff of more than 3,200 Criminal Investigation (CI) employees, including 2,200 special agents who investigate crimes involving tax, money laundering, public corruption, human trafficking, drug trafficking, cybercrime and terrorism-financing.

“Guy has enjoyed a remarkable career as a CI special agent and leader who brings a wealth of experience to this job,” said IRS Commissioner Danny Werfel. “He is highly respected in the IRS and has spent his career building strong relationships with law enforcement agencies around the country. Guy’s leadership is important during a pivotal period where the IRS is focusing on ensuring fairness in the tax system and renewing our enforcement work in key areas.”

In addition to serving as CI’s deputy chief, Ficco has served in leadership positions across the agency, ranging from supervisory special agent in the Washington, D.C. Field Office to executive director of Global Operations, Policy and Support at CI headquarters. He is also a certified fraud examiner.

“I’m thrilled to become CI’s next chief and look forward to expanding the agency’s successes,” Ficco said. “Our CI team is uniquely positioned to combat not only tax crimes, but also the illicit movement of funds tied to drug and human trafficking, sanctions evasion and cybercrime. We are here to protect U.S. taxpayers from criminals who hold no regard for the victims or government coffers they drain.”

Ficco holds a bachelor’s degree in business administration with a concentration in accounting from Dominican University in New York.

CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, human and narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI plays an important and unique role in the federal law enforcement community. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a nearly 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

 IRS Direct File pilot is a new choice for eligible taxpayers to file their 2023 federal tax return online for free, directly with IRS.

Direct File is easy to use and helps them:

• File a 2023 federal tax return – for free – in English or Spanish
• Add their tax information with step-by-step guidance
• Connect with real-time online support from IRS customer service representatives
• Access it from smartphones, laptops, tablets and desktop computers

Check your eligibility
Direct File is available to you if you live in one of the 12 participating states and report certain types of income, deductions and credits. Check your eligibility at the Direct File website to determine if Direct File is the right option for you.

The participating pilot states are, Arizona, California, Florida, Massachusetts. Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming. No additional states will be added to the pilot.

If you’re eligible, use the below information to help you prepare to file your return with Direct File.

Gather your personal information

• Social Security number or individual tax ID number (ITIN) for you and anyone else on your return
• Bank account and routing numbers to get a refund by direct deposit
• Your adjusted gross income (AGI) and exact refund amount from your last tax return
• Your current address — notify IRS if you changed your address
• If you e-filed last year, your self-select PIN
• If you were a victim of identity theft, your IP PIN

Organize your tax records
You may be eligible to join the pilot if you report these income types:

• Form W-2 (wages from employers). Here's what to do if you didn't get a W-2.
• Form SSA-1099 for Social Security benefits
• Form 1099-G for government payments such as unemployment benefits
• Form 1099-INT from banks and brokers showing $1,500 or less interest you received

Direct File is not an option if you have other types of income such as retirement income, gig economy or business income.

If you aren’t claiming any credits or deductions, you can use Direct File if you’re eligible and take the standard deduction.

If you’re eligible, you can claim the limited number of credits and deductions below if you use Direct File and you must take the standard deduction.

Prepare to claim credits
Direct File allows you to claim the following credits:

• Earned Income Tax Credit
• Child Tax Credit
• Credit for Other Dependents

Direct File is not an option if you claim other tax credits like the Child and Dependent Care Credit, Saver's Credit or the Premium Tax Credit if you had Marketplace health insurance coverage.

Prepare to take tax deductions
Direct File allows you to claim the following deductions.

• Standard deduction
• Student loan interest
• Educator expenses

Direct File is not an option if you itemize or claim other tax deductions.

Sign-in to Direct File securely
To use Direct File, you need an IRS account with ID.me. If you are an existing ID.me member, do not create another account. You can use your existing account to access Direct File.

If you’ve never created an ID.me account and are 18 years of age or older, create an account using your personal email and then verify your identity to access Direct File. You only need to verify your identity once — then you can use your ID.me account to access Direct File and other IRS online services.

Verifying your identity is quick and can be done using self-service or on a video call with an ID.me agent. Learn more about the sign-up process for an IRS ID.me account.

Signing your Direct File tax return electronically

When self-preparing your taxes and filing electronically, you must sign and validate your electronic tax return by entering your prior-year Adjusted Gross Income (AGI) or your prior-year Self-Select PIN.

Since you are using Direct File for the first time, you must enter the information yourself.

There are several ways to find your prior-year AGI:

• On your 2022 tax return, your AGI is on line 11 of the Form 1040.
• Use your online account to immediately view your AGI on the Tax Records tab.
• Use Get Transcript by Mail. You can also request a transcript by mail by calling our automated phone transcript service at 800-908-9946. Please allow 5 to 10 days for delivery.

If you have an Identity Protection (IP) PIN (via a CP01A or the Get an IP PIN Tool), you must enter it when prompted by Direct File. It will serve to verify your identity instead of your prior-year AGI or prior-year Self Select PIN.

Find out more about Direct File

• Direct File Pilot Overview IRS YouTube videos in English and Spanish
• IRS Publication 5952, Still haven’t filed your 2023 taxes?
• IRS Publication 5916, File for free with Direct File pilot
• IRS Publication 5917, Direct File pilot - What you need to know
• Subscribe to the Direct File pilot newsletter
• Visit Direct File on IRS.gov