WASHINGTON — The Internal Revenue Service strongly urges qualifying businesses, tax-exempt organizations, and state, local and Indian tribal governments to complete the pre-filing registration process now for projects placed in service in 2023 if they plan to claim elective pay.

Taxpayers should file their annual return after completing the pre-filing registration process. A timely filed return (including extensions) is required to make an elective payment election. Electronic return filing, if not required, is strongly encouraged.

Taxpayers who file their return electronically can review information about IRS approved-e-file providers to find a Modernized e-File (MeF) provider, and should confirm that the software chosen supports all necessary forms, such as Form 3800, General Business Credit, and forms required to figure and report each credit.

The Inflation Reduction Act and the CHIPS Act of 2022 allow taxpayers to take advantage of certain manufacturing investment, clean energy investment and production tax credits through elective pay or transfer.

Elective payment and the transfer election create alternative ways for applicable entities and eligible taxpayers who have earned one of the IRA clean energy or the CHIPS credits to get the benefit of the credit even if the taxpayer cannot use the credit to offset their tax liability.

Taxpayers who intend to make an elective payment or credit transfer election must earn the credit, which means they must make a tax credit qualifying investment or undertake tax credit qualifying production activities to earn a credit eligible for an elective payment or transfer election. 

The taxpayer must complete the pre-file registration process to receive a registration number. The registration number must be included on the taxpayer’s annual return as part of making a valid election. Complete and submit the pre-filing registration request no earlier than the beginning of the tax year in which the taxpayer will earn the credit related to an elective payment election or transfer election.

The IRS recommends that taxpayers submit the pre-filing registration at least 120 days prior to when the organization or entity plans to file its tax return on which it will make its election. This should allow time for IRS review, and for the taxpayer to respond if the IRS requires additional information before issuing the registration numbers.

The IRS will share information about the status of a taxpayer’s pre-file registration package exclusively through the IRA/CHIPS Pre-Filing Registration tool. If the taxpayer affirmatively opts in to receive email communications, the IRS will notify the taxpayer by email that the status of a registration package has changed.

Taxpayers are not required to opt in to receiving email notifications. However, if they choose not to opt in to receive email notifications, they are responsible to return to the IRA/CHIPS Pre-Filing Registration tool to monitor the status of the registration packages.

The IRS is hosting office hour sessions to assist organizations with the pre-filing registration process and the IRA/CHIPS Pre-filing Registration Tool for elective payment and transferability of clean energy and CHIPS credits. Subject matter experts from Large Business & International and Tax Exempt/Government Entities are available to answer questions. 

Organizations may register to attend the following sessions.

8/14/2024	1-2:30 p.m. EDT	Register
9/4/2024	1-2:30 p.m. EDT	Register
9/18/2024	1-2:30 p.m. EDT	Register
10/2/2024	1-2:30 p.m. EDT	Register

 

Resources

• Publication 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool User Guide.
• Publication 5902, Clean Energy Authorization Permission Management User Guide.
• Register for elective payment or transfer of credits.
• Elective pay and transferability | Internal Revenue Service (irs.gov).
• Elective Pay and Transferability Frequently Asked Questions.

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in 25 Minnesota counties affected by severe storms and flooding that began on June 16, 2024.

These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA).

This means that individuals and households that reside or have a business in Blue Earth, Carver, Cass, Cook, Cottonwood, Faribault, Fillmore, Freeborn, Goodhue, Itasca, Jackson, Lake, Le Sueur, Mower, Murray, Nicollet, Nobles, Pipestone, Rice, Rock, St. Louis, Steele, Wabasha, Waseca and Watonwan counties qualify for tax relief.

The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

Filing and payment relief

The tax relief postpones various tax filing and payment deadlines that occurred from June 16, 2024, through Feb. 3, 2025 (postponement period). As a result, affected individuals and businesses will have until Feb. 3, 2025, to file returns and pay any taxes that were originally due during this period.

This means, for example, that the Feb. 3, 2025, deadline will now apply to:

• Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storms occurred.
• Quarterly estimated income tax payments normally due on June 17 and Sept. 16, 2024, and Jan. 15, 2025.
• Quarterly payroll and excise tax returns normally due on July 31 and Oct. 31, 2024, and Jan. 31, 2025.

In addition, penalties for failing to make payroll and excise tax deposits due on or after June 16, 2024, and before July 1, 2024, will be abated, as long as the deposits were made by July 1, 2024.

The Disaster assistance and emergency relief for individuals and businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief.

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for 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. Tax preparers located in the disaster area with clients located outside the disaster area can choose to use theBulk Requests from Practitioners for Disaster Relief option, described on IRS.gov.

Additional tax relief

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 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number – 4797-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details.

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

The IRS may provide additional disaster relief in the future.

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

Reminder about tax return preparation options

• 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 help site, use the VITA Locator Tool or call 800-906-9887. Note that normally, VITA sites cannot help claim disaster losses.
• 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.
• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.
• 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.

Week 6 of “Protect Your Clients; Protect Yourself” series highlights tips that tax pros can take  

WASHINGTON — The Internal Revenue Service and the Security Summit partners today announced the availability of a new, updated Written Information Security Plan designed to help protect tax professionals against continuing threats from identity thieves and data breaches. 

As part of a special eight-part series, the IRS and Summit partners highlighted the newly updated Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting Practice. This Written Information Security Plan, or WISP, is a 28-page template designed to help tax pros, particularly smaller practices. The WISP has been updated and expanded to make data security planning easier. 

The new WISP, the result of a year-long effort, is an easy-to-understand document developed by and for tax and industry professionals to keep customer and business information safe and secure. Tax pros are required to have a security plan under federal law. 

The new version of the WISP includes several new information updates since the first version came out. This includes highlighting best practices for implementing multi-factor authentication for any individual accessing any information system, unless their qualified individual has approved in writing the use of reasonably equivalent or more secure access controls. 

In addition, tax pros now need to report a security event affecting 500 or more people to the Federal Trade Commission (FTC) as soon as possible, but no later than 30 days from the date of discovery. This is in addition to reporting the incident to an IRS Stakeholder Liaison and state tax authorities. 

“Tax professionals play a vital role in the nation’s tax system, and they hold a vast amount of taxpayer information that can be a treasure trove to identity thieves,” said IRS Commissioner Danny Werfel. “The newly updated Written Information Security Plan provides a helpful road map for tax pros to help protect their clients and themselves from the constant threat of data breaches. The IRS and the Security Summit partners urge tax pros to stay on top of these evolving threats, and this updated plan is an important part of that effort.” 

This marks the sixth part of a special summer news release series focused on tax professional security. Now in its ninth year, the "Protect Your Clients; Protect Yourself" campaign provides timely tips to help protect sensitive taxpayer data that tax professionals hold while also protecting their own businesses from identity thieves. 

This is part of an annual education effort by the Security Summit, a group that includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud. 

These security tips and the newly updated WISP are a key focus of the Nationwide Tax Forum, being held this summer in five cities throughout the U.S. In addition to the series of eight news releases, the tax professional security component is featured at the three-day continuing education events. The forums continue this week in Baltimore, as well as the weeks of August 19 in Dallas and September 9 in San Diego. The IRS reminds tax pros that registration deadlines are quickly approaching for the Dallas forum, as San Diego has already sold out. 

The forums will feature several specific sessions to help educate the tax professional community on security-related topics. Tax professionals will hear from experts at the IRS, the tax professional community as well as a special session from Salve Regina University’s Pell Center from Rhode Island.  

In the remaining weeks, the news release series and the IRS Tax Forums will provide timely tips to help protect sensitive taxpayer data that tax professionals hold while also protecting their own businesses from identity thieves. 

Tax professionals are required by law to secure their clients’ data, and to help them meet this obligation, the IRS and the Security Summit partners are advising them to use the WISP template designed to make data security planning easier.

Knowing that tax professionals play a critical role in our nation's tax system, the Summit – led by the Tax Professionals Working Group – spent months originally developing two publications: Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting Practice and Publication 5709, How to Create a Written Information Security Plan for Data Safety. Publication 5708 is the WISP, and Publication 5709 is a special summary flyer designed to be shared among the tax professional community. 

“It’s more important than ever for tax pros to protect their data, passwords and other information,” said Kimberly Rogers, director of the IRS Return Preparer Office and co-chair of the Summit's Tax Pro Working Group. “The updated Written Information Security Plan is a result of months of work by tax professionals across the country. The Security Summit members worked together on this plan to make it easier for all tax professionals to develop a plan and an approach that is right for them.” 

As part of legal requirements to implement and maintain a WISP in their practices, tax pros need to have it in a written form that’s accessible. In addition, tax professionals are recommended to review, test and update their WISPs.  

The basics of a WISP   

The WISP, available in Publication 5708, begins with the basics. It walks users through getting started on a plan, including understanding security compliance requirements and professional responsibilities. It continues with an outline for a basic WISP and a sample template. The sample is not intended to be the final word on written security plans, but it is intended to give tax professionals a place to start in understanding and attempting to draft a plan for their business. 

Throughout the process, tax pros are reminded that a security plan should be appropriate to the company’s size, scope of activities, complexity and the sensitivity of the customer data it handles. There is no one-size-fits-all WISP. 

The IRS also reminds tax professionals that a WISP is just one part of what they need to protect their clients and themselves. Given the rapidly evolving nature of threats, the Summit also strongly encourages tax professionals to consult with technical experts to help with security issues and safeguard their systems. 

A good WISP focuses on three areas:  

• Employee management and training;
• Information systems;
• Detecting and managing system failures. 

Tax pros required by law to have a security plan  

There are many aspects to running a successful business in the tax preparation industry, including reviewing tax law changes, learning software updates as well as managing and training staff. One often overlooked but critical component is creating a WISP. However, federal law requires all professional tax preparers to create and implement a data security plan. 

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to protect customer data. Under this law, tax and accounting professionals are considered financial institutions, regardless of size. In its implementation of this law, the FTC issued measures required to keep customer data safe. One requirement is implementing a WISP. 

As a part of the plan, the FTC requires each firm to:

• Designate one or more employees to coordinate its information security program.
• Identify and assess risks to customer information in each relevant area of the company's operation and evaluate the effectiveness of the current safeguards for controlling these risks.
• Design and implement a safeguards program and regularly monitor and test it.
• Select service providers that can maintain appropriate safeguards by ensuring the contract requires them to maintain safeguards and oversee their handling of customer information. 

Evaluate and adjust the program considering relevant circumstances, including changes in the firm's business or operations, or the results of security testing and monitoring. 

Tax pro with a security problem? Contact an IRS Stakeholder Liaison, states and FTC   

As part of a security plan, the IRS also recommends tax professionals create a data theft response plan, which includes contacting their IRS Stakeholder Liaison to report a security incident. Tax professionals can also share information with the appropriate state tax agency by visiting a special “Report a Data Breach” page with the Federation of Tax Administrators. 

Tax professionals should also understand the FTC data breach response requirements as part of their overall information and data security plan. The new WISP also includes information on the requirement to report an incident to the FTC when 500 or more people are affected within 30 days of the incident. 

Additional resources  

• Publication 5709, How to Create a Written Information Security Plan for Data Safety
• Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting Practice
• Review Publication 5293, Data Security Resource Guide for Tax Professionals, which provides an overview and resources about how to avoid data theft.
• Tax professionals can also get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data, and the IRS' Identity theft information page for tax pros.
• Read Small Business Information Security: The Fundamentals, by the National Institute of Standards and Technology. 

Tax professionals should also stay connected to the IRS through subscriptions to e-News for tax professionals and its social media sites.

Inside This Issue

1. IRS moves forward with Employee Retention Credit claims; expedites work on complex credit; remains vigilant against fraudulent claims
2. Tax relief available for Hurricane Debby victims in four states
3. Security Summit partners urge use of multi-factor authentication to protect against evolving scams to tax professionals, businesses and clients
4. IRS Nationwide Tax Forum: Limited time remaining to register for Baltimore, Dallas
5. IRS revamps draft version of Form 1099-DA, Digital Asset Proceeds from Broker Transactions; requests feedback for 2025
6. Treasury, IRS shares Inflation Reduction Act clean energy statistics
7. Upcoming webinar for tax practitioners
8. Technical Guidance

1.  IRS moves forward with Employee Retention Credit claims; expedites work on complex credit; remains vigilant against fraudulent claims

The IRS takes more steps to support small businesses and stop improper payments in the Employee Retention Credit (ERC) program. These steps include increasing the pace at which payments are made and carrying out compliance work on the intricate pandemic-era credit that saw a surge in claims as a result of deceptive marketing.

“The Employee Retention Credit is one of the most complex tax provisions ever administered by the IRS, and the agency continues working hard to balance our work to protect taxpayers from improper claims while also making payments to qualifying businesses,” said IRS Commissioner Danny Werfel. “It has been a time-consuming process to separate valid claims from invalid ones. During the past year, we maintained a steady cadence of both ERC approvals and disapprovals.”

“The IRS is committed to continuing our work to resolve this program as Congress contemplates further action, both for the good of legitimate businesses and tax administration,” Werfel added.

Back to top

2.  Tax relief available for Hurricane Debby victims in four states

Disaster-area taxpayers affected by Hurricane Debbie in South Carolina, North Carolina, Florida and Georgia now have until Feb. 3 to file various federal individual and business tax returns and make required payments. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA), and the same relief will be available to any other counties added later to the disaster areas. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

Back to top

3.  Security Summit partners urge use of multi-factor authentication to protect against evolving scams to tax professionals, businesses and clients

In the fifth installment of the “Protect Your Clients; Protect Yourself” special series, the IRS and its Security Summit partners informed tax professionals that multi-factor authentication is now required by federal law, in addition to being a crucial security measure for their businesses and their clients. The Federal Trade Commission’s safeguards rule now mandates that all tax professionals use multi-factor authentication, or MFA, to secure sensitive client data.

“Multi-factor authentication is now more than just a good idea for tax professionals; it’s a requirement,” said IRS Commissioner Danny Werfel. “This is an effective way to increase security and protect tax professionals and their clients from a data breach. Multi-factor authentication is a little like a deadbolt on a door; its additional security supplementing the doorknob lock. This is an important step to protect not just tax professionals and their firms, but also the sensitive taxpayer information from their clients.”

Tax professionals may do the following to report stolen data:

• Share information with the appropriate state tax agency by visiting Report a Data Breach;
• Review Publication 5293, Data Security Resource Guide for Tax Professionals;
• Obtain an identity protection PIN or complete Form 14039, Identity Theft Affidavit, if applicable; and
• Report the incident to their local IRS stakeholder liaison.

Visit the Data Theft information for tax professionals webpage to learn more.

Back to top

4.  IRS Nationwide Tax Forum: Limited time remaining to register for Baltimore, Dallas

Last-minute registrants: Space is still available at the upcoming IRS Nationwide Tax Forum in Baltimore, Aug. 13-15, and Dallas, Aug. 20-22. The San Diego Tax Forum, Sept. 10-12, is sold out.

Each IRS Tax Forum offers tax professionals 45 different continuing education seminars. Attendees can earn up to 19 continuing education credits.

Other forum features include the Taxpayer Advocate Service’s Case Resolution Room - where attendees can get assistance on a tough client case – and the Digital Account Services Room, which provides help on IRS Online Accounts, Preparer Tax Identification Numbers (PTINs) and Centralized Authorization File (CAF) issues. Multiple IRS experts will be on hand to answer questions on digital assets, cybersecurity, and scams, while recruiting staff will be interviewing for IRS revenue agent and officer positions.

For a description of the program and to register, visit IRS Nationwide Tax Forum.

You can learn more about this year’s program on the following videos produced independently by Tax Talk Today:

• Tax Talk Today looks at Five Things to Know about the Tax Forum
• Tax Talk Today interviews at the Chicago Tax Forum

Back to top

5.  IRS revamps draft version of Form 1099-DA, Digital Asset Proceeds from Broker Transactions; requests feedback for 2025

The IRS published a draft version of Form 1099-DA, Digital Assets, which brokers must use to report specific exchange and sale transactions involving digital assets starting in 2025. Typically, in early 2026, taxpayers and IRS will receive separate copies of these forms. The updated Form 1099-DA draft incorporates the transitional relief outlined in Notice 2024-56, Notice 2024-57 and Revenue Procedure 2024-28 and conforms to the final regulations for custodial broker reporting regulations.

Comments regarding the draft can be submitted to the IRS through the forms and publications comments page on IRS.gov.

Back to top

6.  Treasury, IRS shares Inflation Reduction Act clean energy statistics

The Department of Treasury and the IRS released data regarding the clean energy tax credits under the Inflation Reduction Act for the 2023 tax year. Taxpayers can now claim more tax credits for residential and energy efficient homes. More than $6 billion in tax credits have been claimed by taxpayers for home energy investments and more than $2 billion will be used for energy-efficient home improvements thanks to the Inflation Reduction Act.

Back to top

7.  Upcoming webinar for tax practitioners

The IRS offers the upcoming live webinar to the tax practitioner community:

• In the know with RPO: An update from the Return Preparer Office on August 22, at 2 p.m. ET. Earn up to 1 CE credit (Federal Tax). Certificates of completion are being offered.

For more information or to register, visit Webinars for tax practitioners webpage.

Back to top

8.  Technical Guidance

Revenue Procedure 2024-32 updates Rev. Proc. 2017-55 to set forth the procedure by which the sponsor of a defined benefit plan that is subject to the funding requirements of section 430 may request approval from the IRS for the use of plan-specific substitute mortality tables in accordance with section 430(h)(3)(C) and section 1.430(h)(3)-2.

WASHINGTON – The Internal Revenue Service announced today additional actions to help small businesses and prevent improper payments in the Employee Retention Credit program, including accelerating more payments and continuing compliance work on the complex pandemic-era credit that was flooded with claims following misleading marketing. 

The IRS is continuing to work denials of improper ERC claims, intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse. The findings of the IRS review, announced in June, confirmed concerns raised by tax professionals and others that there was an extremely high rate of improper ERC claims in the current inventory of ERC claims. 

In recent weeks, the IRS has sent out 28,000 disallowance letters to businesses whose claims showed a high risk of being incorrect. The IRS estimates that these disallowances will prevent up to $5 billion in improper payments. Thousands of audits are underway, and 460 criminal cases have been initiated. The IRS has also identified 50,000 valid ERC claims and is quickly moving them into the pipeline for payment processing in coming weeks. These payments are part of a low-risk group of claims. 

Given the complexity of the ERC and to reduce the risk of improper payments, the IRS emphasized it is moving methodically and deliberately on both the disallowances as well as additional payments to balance the needs of businesses with legitimate claims against the promoter-fueled wave of improper claims that came into the agency. 

“The Employee Retention Credit is one of the most complex tax provisions ever administered by the IRS, and the agency continues working hard to balance our work to protect taxpayers from improper claims while also making payments to qualifying businesses,” said IRS Commissioner Danny Werfel. “It has been a time-consuming process to separate valid claims from invalid ones. During the past year, we maintained a steady cadence of both ERC approvals and disapprovals.” 

“The IRS is committed to continuing our work to resolve this program as Congress contemplates further action, both for the good of legitimate businesses and tax administration,” Werfel added. 

The ERC program began as an effort to help businesses during the pandemic, but as time went on the program increasingly became the target of aggressive marketing – and potentially predatory in some cases – well after the pandemic ended. Some promoter groups called the credit by another name, such as a grant, business stimulus payment, government relief or other names besides ERC or the Employee Retention Tax Credit (ERTC). 

To counter the flood of claims, the IRS announced last fall a moratorium on processing claims submitted after Sept. 14, 2023, to give the agency time to digitize information on the large study group of ERC claims, which are made on amended paper tax returns. The subsequent analysis of the results during this period helped the IRS evaluate next steps, providing the agency valuable information to improve the accuracy of ERC claims processing going forward. 

The detailed review during the moratorium allowed the IRS to move into this new stage of the program with more payments and disallowances. In addition, the IRS will remain in close contact with the tax professional community to help navigate through the complex landscape. 

“This has been a resource-intensive credit for IRS teams to evaluate,” Werfel said.  “Unfortunately, the situation was compounded by misleading marketing flooding businesses to claim these credits, creating a perfect storm that added risk of improper payments for taxpayers and the government while complicating processing for the IRS and slowing claims to legitimate businesses.” 

Work continues on improper claims as IRS closely monitors feedback; appeals process available for denied claims 

With the recent issuance of 28,000 disallowance letters, the IRS is aware of concerns raised by tax professionals about potential errors. While we are still evaluating the results of this first significant wave of disallowances in 2024, early indications indicate errors are relatively isolated and that more than 90% of disallowance notices were validly issued. 

The IRS will continue to remain in contact with the tax community and monitor the situation and make any adjustments to minimize burden on businesses and their  representatives. Specifically, the IRS will adjust its processes and filters for determining invalid claims following each wave of disallowances. While the IRS is still evaluating the results of this first significant wave of disallowances in 2024, early indications indicate errors are isolated. 

The IRS also noted that in limited cases where claims can be proven to have been improperly denied, the agency will work with taxpayers to get it right. 

The IRS also reminds businesses that when they receive a denial of an ERC claim they have options available to file an administrative appeal by responding back to the address on the denial letter. IRS.gov also has additional information on administrative appeals with the IRS independent Office of Appeals. 

The IRS learned that some of the recent early mailings have inadvertently omitted a paragraph highlighting the process for filing an appeal to the IRS or District Court, and the agency is taking steps to ensure this language is mailed to all relevant taxpayers. Regardless of the language in the notice, the IRS emphasizes taxpayers have administrative appeals rights available to them and reminds all taxpayers that details on the process for filing an appeal or otherwise challenging an IRS determination can be found throughout the agency’s literature and on IRS.gov. 

Additional payments for 50,000 valid claims moving into processing; more in the fall 

In the latest step, the IRS announced today that low-risk ERC claims will be paid out quickly. The IRS is moving 50,000 of these claims. After processing is complete, the claims will be paid out to taxpayers. The IRS projects payments will begin in September with additional payments going out in subsequent weeks. The IRS anticipates adding another large block of additional low-risk claims for processing and payment in the fall. 

The IRS also noted that it is a making a shift in the moratorium period on new claims now that it has additional information. Previously, the agency was not processing claims filed after Sept. 14, 2023. As the agency moves forward, it will now start judiciously processing claims filed between Sept. 14, 2023, and Jan. 31, 2024. Like the rest of the ERC inventory, work will focus on the highest and lowest risk claims at the top and bottom end of the spectrum. This means there will be instances where the agency will start taking actions on claims submitted in this time period when the agency has seen a sound basis to pay or deny a refund claim. 

As the IRS begins to process additional claims, the agency reminds businesses that they may receive payments for some valid tax periods – generally quarters – while the IRS continues to review other periods for eligibility. ERC eligibility can vary from one tax period to another if, for example, government orders were no longer in place or a business’s gross receipts increased. Alternatively, qualified wages may vary due to a forgiven Paycheck Protection Program loan or because an employer already claimed the maximum amount of qualified wages in an earlier tax period. 

ERC compliance work continues 

The IRS continues analyzing ERC claims, intensifying audits and pursing promoter and criminal investigations. Beyond the disallowance letters, current initiatives results include:  

• ERC Claim Withdrawal Program: The claim withdrawal process for unprocessed ERC claims has led to more than 7,300 entities withdrawing $677 million.
• ERC Voluntary Disclosure Program: During the VDP, which ended in March, the IRS received more than 2,600 applications from ERC recipients that disclosed $1.09 billion worth of credits.
• Criminal investigations: As of July 1, 2024, IRS Criminal Investigation has initiated 460 criminal cases, with potentially fraudulent claims worth nearly $7 billion. In all, 37 investigations have resulted in federal charges so far, with 17 investigations resulting in convictions and nine sentencings with an average sentence of 20 months.
• Promoter investigations: The IRS is gathering information about suspected abusive tax promoters and preparers improperly promoting the ability to claim the ERC. The IRS’s Office of Promoter Investigations has received hundreds of referrals from internal and external sources. The IRS will continue civil and criminal enforcement efforts of these unscrupulous promoters and preparers.
• Audits: The IRS has thousands of ERC claims currently under audit. 

Additional information 

• Warning sign indicators about potentially improper claims.
• ERC Claim Withdrawal Program.

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued statistics on the Inflation Reduction Act clean energy tax credits for tax year 2023. 

The Inflation Reduction Act, or IRA, extended and expanded tax credits that allow taxpayers to claim residential and energy efficient home energy credits. 

Taxpayers have claimed more than $6 billion in credits for residential clean energy investments—which include solar electricity generation, solar water heating and battery storage—and more than $2 billion for energy efficient home improvements — which include heat pumps, efficient air conditioners, insulation, windows and doors — on 2023 tax returns filed and processed through May 23, 2024.

Residential and Energy Efficient Home Improvement Credit

Credit	Number of returns​	Credit value​
Residential Clean Energy Credit	1,246,440	Total: $6.3 billion, Average per return: $5,084
Rooftop solar	752,300	Up to 30% of cost
Batteries	48,840	Up to 30% of cost
Energy Efficient Home Improvement Credit	2,338,430	Total: $2.1 billion, Average per return: $882
Home insulation	669,440	Up to 30% of cost​c
Windows and skylights	694,450	Up to 30% of cost or $600​c
Central air conditioners	488,050	Up to 30% of cost or $600​c
Doors	400,070	Up to 30% of cost, $250 per door, or $500 total​
Heat pumps	267,780	Up to 30% of cost or $2,000
Heat pump water heaters	104,180	Up to 30% of cost or $2,000

 

Week 5 of “Protect Your Clients; Protect Yourself” series focuses on strengthening account security  

WASHINGTON — The Internal Revenue Service and the Security Summit partners remind tax professionals that using multi-factor authentication is now more than an important protection for their businesses and their clients – it’s now a federal requirement. 

All tax professionals are now required under the Federal Trade Commission’s safeguards rule to use multi-factor authentication, or MFA, to protect clients’ sensitive information. The June 2023 change mandates MFA to strengthen account security by requiring more than just a username and password to confirm an identity when accessing any system, application or device. 

“Multi-factor authentication is now more than just a good idea for tax professionals; it’s a requirement,” said IRS Commissioner Danny Werfel. “This is an effective way to increase security and protect tax professionals and their clients from a data breach. Multi-factor authentication is a little like a deadbolt on a door; it’s additional security supplementing the doorknob lock. This is an important step to protect not just tax professionals and their firms, but also the sensitive taxpayer information from their clients.” 

This is the fifth week of an eight-part "Protect Your Clients; Protect Yourself" summer series, part of an annual education effort by the Security Summit, a group that includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud. 

Security is a key focus of the Nationwide Tax Forum, being held this summer in five cities throughout the U.S. In addition to the series of eight news releases, the tax professional security component is featured at the three-day continuing education events. The forums continue the weeks of August 12 in Baltimore, August 19 in Dallas and September 9 in San Diego. The IRS reminds tax pros that registration deadlines are quickly approaching for the Baltimore and Dallas forums, as San Diego has already sold out. 

In upcoming weeks, the news release series and the IRS Tax Forums will provide timely tips to help protect sensitive taxpayer data that tax professionals hold while also protecting their own businesses from identity thieves. 

A key part of tax pro security now revolves around MFA. The extra layers of different authentication factors include something only a user knows, like a username and password; something they have, like a token or random number sequence sent to their cell phone; or something unique, like biometric information. These provide extra assurance that a tax pro’s client, not an impostor, is gaining access. 

The Summit partners noted that implementing MFA is one of the most cost-effective ways to increase security and reduce a tax pro’s fraud and data breach risks. Once in place, MFA helps protect against phishing, social engineering and other types of technology attacks that exploit weak or stolen passwords. 

Common MFA examples   

The general public makes wide use of MFA these days, so tax pro clients shouldn’t be surprised by the extra scrutiny asked of them. 

For example, many smartphone users are accustomed to fingerprint or facial recognition that authenticates their identity before unlocking their device. Certain smartphone applications can also rely on that biometric factor along with a PIN or password for app-level MFA. 

Many online banks, financial applications and payroll services use MFA to verify account holders’ identities before granting access or allowing high-risk transactions, such as money transfers. 

In addition, taxpayers connecting to the IRS will be asked to set up MFA to create an IRS Online Account. After that, to sign in, they will first log in with an email address and password, then receive a one-time passcode by text or call to one’s chosen device and finally enter the passcode into the account to complete sign-in. A bad actor cannot access one’s account without also having their passcode. 

MFA required by law   

Under the new FTC MFA rules, there’s a requirement to use at least two of the following factors for anyone accessing customer information: something a user knows like a username; something sent to them like numbers texted to a cell phone; or a physical part of them like a fingerprint or facial scan. 

In addition, MFA should be used to secure client information on a tax pro’s computer or network, but it should also be used to access client information stored within their tax preparation software. MFA is required by law for all companies – not just tax professionals. The size of the company does not matter. Opting out of using MFA in tax prep software is a violation of the FTC safeguards rules. 

Best implementation practices   

Tax pros should implement MFA across all their services and data access points. 

In addition, they should regularly evaluate current MFA methods, standards and new technologies to stay protected against the latest threats, and they should offer a variety of authentication factors to suit the needs of different users. 

Finally, tax pros should always enable MFA within tax software products and cloud storage services containing sensitive client data, and they should never share usernames. 

Additional resources   

If a tax pro or their firm are the victim of data theft, they should: 

• Report the incident to their local IRS Stakeholder Liaison. Speed is critical. IRS stakeholder liaisons will ensure all the appropriate IRS offices are alerted. If reported quickly, the IRS can take steps to block fraudulent returns in the clients' names and assist tax pros through the process.
• Visit the Federation of Tax Administrators to find state contact information. Tax professionals can share information with the appropriate state tax agency by visiting the special “Report a Data Breach.”
• Review Publication 5293, Data Security Resource Guide for Tax Professionals, which provides an overview and resources about how to avoid data theft.
• Tax professionals can also get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data, and the IRS' Identity theft information page for tax pros.
• Read Small Business Information Security: The Fundamentals, by the National Institute of Standards and Technology. 

Tax professionals should also stay connected to the IRS through subscriptions to e-News for tax professionals and its social media sites.

Inside This Issue

1. Security Summit partners urge continued vigilance against evolving scams to tax professionals, businesses and clients
2. IRS business forms now electronic
3. IRS Nationwide Tax Forum: Registration still open for Baltimore, Dallas
4. IRS celebrates National Whistleblower Day; collects over $7 billion thanks to whistleblowers
5. Technical Guidance

1.  Security Summit partners urge continued vigilance against evolving scams to tax professionals, businesses and clients

In the fourth installment of the “Protect Your Clients; Protect Yourself” special series, the IRS and its Security Summit partners reminded taxpayers and tax professionals about the IRS online accounts and the special Identity Protection PIN program, which can help prevent identity theft related to taxes.

“To protect against continuing and evolving threats from identity thieves, these two special tools provide an extra layer of security for taxpayers and tax professionals,” IRS Commissioner Danny Werfel said. “The IRS and the Security Summit urge people to sign up for both IP PINs and the Online Account to help protect their valuable information as well as avoid tax problems down the road.”

Tax professionals may do the following to report stolen data:

• Share information with the appropriate state tax agency by visiting Report a Data Breach;
• Obtain an identity protection PIN or complete Form 14039, Identity Theft Affidavit, if applicable; and
• Report the incident to their local IRS stakeholder liaison.

Visit the Data Theft information for tax professionals webpage to learn more.

Back to top

2.  IRS business forms now electronic

Taxpayers can now electronically file business Forms 940, 941, 943 and 945, including the Spanish version of Forms 941 and 943. In addition, the IRS can now accept related electronic payments while minimizing errors normally associated with processing paper returns.

Visit the Modernized eFile for Employment Taxes FAQ page for more information on electronically filing employment taxes.

Back to top

3.  IRS Nationwide Tax Forum: Registration still open for Baltimore, Dallas

Tax pros: It’s not too late to reserve your space at the upcoming IRS Nationwide Tax Forum in Baltimore, Aug. 13-15, and Dallas, Aug. 20-22.

Each forum offers tax professionals a total of 45 different continuing education seminars. Attendees can earn up to 19 continuing education credits. In addition, the IRS will have employees on-site to assist attendees who need personalized help. For example, those in need of assistance with a client case can make an appointment with a representative in the Case Resolution Room. Those who need help creating an IRS Online Account or resolving a Preparer Tax Identification Number (PTIN) or Centralized Authorization File (CAF) issue should visit the Digital Account Services Room. There will also be staff available to assist with e-Services, cybersecurity, digital assets, Form 1099-K, Low Income Taxpayer Clinics and more.

For information and to register, visit IRS Nationwide Tax Forum.

You can learn more about this year’s program on the following videos produced by Tax Talk Today:

• Tax Talk Today looks at Five Things to Know about the Tax Forum
• Tax Talk Today interviews at the Chicago Tax Forum

Back to top

4.  IRS celebrates National Whistleblower Day; collects over $7 billion thanks to whistleblowers

July 30 is National Whistleblower Appreciation Day because on that day in 1778, the Continental Congress passed the nation’s first whistleblower law. The first law related to whistleblowers on tax violations was enacted almost 90 years later in March 1867.

The IRS Whistleblower Office acknowledges the critical role whistleblowers play in the nation’s tax administration. The agency has paid over $1.2 billion in awards since issuing its first award in 2007, representing the successful collection of $7 billion from taxpayers who were not in compliance.

Back to top

5.  Technical Guidance

Revenue Procedure 2024-32 updates Rev. Proc. 2017-55 to set forth the procedure by which the sponsor of a defined benefit plan that is subject to the funding requirements of section 430 may request approval from the IRS for the use of plan-specific substitute 

Week 4 of “Protect Your Clients; Protect Yourself” series focuses on special protection tools  

WASHINGTON — In the fourth part of a special summer series, the Security Summit partners today reminded tax professionals and taxpayers about the special IRS Identity Protection PIN program and the IRS online accounts that can help protect against tax-related identity theft. 

These two tools help protect against the threat of tax-related identity theft, both for the taxpayers who sign up and the tax professionals who hold their sensitive tax information. 

Identity Protection PINs, also referred to as IP PINs, serve as a critical defense against identity thieves. The IRS is encouraging all tax pros and taxpayers to establish their IRS Online Account that allows access to IRS account information online, but it also guards against fraudsters trying to trick tax pros and taxpayers into creating such an account. 

“To protect against continuing and evolving threats from identity thieves, these two special tools provide an extra layer of security for taxpayers and tax professionals,” IRS Commissioner Danny Werfel said. “The IRS and the Security Summit urge people to sign up for both IP PINs and the Online Account to help protect their valuable information as well as avoid tax problems down the road.” 

The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit – need assistance from tax professionals to let their clients know that IP PINs and the IRS Online Account are available to anyone who can verify their identity. 

In addition to enrolling in the IP PIN program, the IRS is encouraging all people to establish their IRS Online Account. Doing so not only provides access to IRS account information that’s now available online, but it also guards against fraudsters trying to trick tax pros and taxpayers into creating such an account. Tax pros also have access to the Tax Pro Account. 

This is the fourth week of an eight-part “Protect Your Clients, Protect Yourself" summer series, part of an annual education effort by the Security Summit, a group that includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud. 

Security is a key focus of the Nationwide Tax Forum, being held in five cities this summer throughout the U.S. In addition to the series of eight news releases, the tax professional security component will be featured at the forums, which are three-day continuing education events. The forums continue today in Orlando, Florida, though the event is already sold out, and carry on the week of August 13 in Baltimore, August 20 in Dallas and September 10 in San Diego. The IRS reminds tax pros that registration deadlines are quickly approaching for the Baltimore and Dallas forums, as San Diego has also sold out. 

More than 10.4 million taxpayers have taken the steps to obtain an IP PIN, a six-digit number that once issued to a taxpayer must be included on their tax return prior to filing electronically. Many, many more taxpayers should consider getting one to add another layer of protection against identity theft. 

To do so, taxpayers should visit the IRS Get an IP PIN online tool. Doing that will establish a taxpayer’s access to their IRS Online Account, making themselves less likely to fall victim to social engineering schemes that trick taxpayers into setting up an IRS Online Account controlled by a bad actor. 

Beginning this summer, taxpayers who enroll in the program will have the ability to unenroll if for some reason they decide they no longer want to participate in the future. 

ETAAC notes IP PIN “effectively locks out” many fraudsters   

The Electronic Tax Administration Advisory Committee, or ETAAC, is again this year highlighting the importance of the IP PIN to taxpayers and tax professionals, echoing past endorsements from the same independent IRS advisory group. 

“The IP PIN method provides strong protection against stolen identity tax refund fraud and effectively locks out many fraudsters from e-filing using that taxpayer’s social security number,” said ETAAC’s annual report to Congress. 

But the report added that IP PINS should be more widely used, calling it an overlooked tool in the fight against fraud. Underscoring the point, the ETAAC report said only 525,000 taxpayers opted into the IP PIN program in 2022, even though the Federal Trade Commission received more than 1.1 million reports of identity theft that same year. 

The importance of someone’s IP PIN can be a tempting target for identity thieves, given the IP PINs' inherent strength. Summit partners urged taxpayers and tax professionals to be careful and protect the IP PIN from identity thieves, and noted these key tips: 

• Taxpayers should share their IP PIN only with their trusted tax provider.
• Tax professionals should never store clients' IP PINs on computer systems. This reduces taxpayer risk if a tax pro's system is compromised by an identity thief or cyberattack.
• The IRS will never call, email or text either taxpayers or tax professionals to request the IP PIN. This is a sign of a scam. 

Tax professionals who experience a data theft can assist clients by urging them to quickly obtain an IP PIN. Even if a thief already has filed a fraudulent return, an IP PIN would still offer protections for later years and prevent taxpayers from being repeat victims of tax-related identity theft. 

Key facts about IP PINs   

Here are a few other things taxpayers and tax professionals should know about the IP PIN: 

• It's a six-digit number known only to the taxpayer and the IRS.
• The opt-in program is voluntary, though strongly encouraged.
• In cases of proven identity theft, an IP PIN is assigned to a taxpayer to use for future filings.
• The IP PIN should be entered on the electronic tax return when prompted by the software product or on a paper return next to the signature line.
• The IP PIN is valid for one calendar year; a new IP PIN is generated each year.
• Only taxpayers who can verify their identities may obtain an IP PIN.
• IP PIN users should never share their number with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email or text a request for the IP PIN.
• Tax professionals cannot obtain an IP PIN on behalf of clients. Taxpayers must obtain their own IP PIN. 

Taxpayers have the opportunity to opt out if they previously opted into the program. Taxpayers who are confirmed victims of identity theft will not have the option to opt out of the program. 

How to get an IP PIN   

To obtain an IP PIN, the best option is to start at Get an IP PIN. Taxpayers need to validate their identities through ID.me to access the tool and their IP PIN. Before attempting this thorough process, the IRS recommends taxpayers first check out How to register for IRS online self-help tools. 

If taxpayers are unable to validate their identity online and if their income is less than $79,000 for individuals or $158,000 for married couples, they may file Form 15227, Application for an Identity Protection Personal Identification Number. The IRS will call the telephone number provided on Form 15227 to validate their identity. Once verified, the taxpayer will receive an IP PIN via the U.S. Postal Service within four to six weeks. 

Taxpayers who cannot validate their identities online or on the phone with an IRS employee after submitting a Form 15227, or who are ineligible to file a Form 15227, may call the IRS to make an appointment at a Taxpayer Assistance Center. They'll need to bring one picture identification document and another identification document to prove their identity. Once verified, the taxpayer will receive an IP PIN via U.S. Postal Service within three weeks. 

The IP PIN process for confirmed victims of identity theft remains unchanged. These victims will automatically receive an IP PIN each year. 

Additional resources   

If a tax pro or their firm are the victim of data theft, they should: 

• Report the incident to their local IRS Stakeholder Liaison. Speed is critical. IRS stakeholder liaisons will ensure all the appropriate IRS offices are alerted. If reported quickly, the IRS can take steps to block fraudulent returns in the clients' names and will assist tax pros through the process.
• Visit the Federation of Tax Administrators to find state contact information. Tax professionals can share information with the appropriate state tax agency by visiting the special “Report a Data Breach.”
• Review Publication 5293, Data Security Resource Guide for Tax Professionals, which provides an overview and resources about how to avoid data theft.
• Tax professionals can also get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data, and the IRS' Identity theft information page for tax pros.
• Read Small business information security: The fundamentals, by the National Institute of Standards and Technology. 

Tax professionals should also stay connected to the IRS through subscriptions to e-News for tax professionals and its social media sites.

1. IRS shares more warning signs of incorrect ERC claims; businesses urged to resolve erroneous claims to avoid penalties, interest, audit
2. IRS Nationwide Tax Forum: Registration still open for Baltimore, Dallas
3. Security Summit partners urge continued vigilance against evolving scams to tax professionals, businesses and clients
4. IRS online resources and taxpayer services continue to hit significant milestones with IRA funding
5. Tax relief available to hurricane Beryl victims in Texas
6. IRS updates FAQs on new, previously owned and qualified commercial clean vehicle credits
7. Technical Guidance

1.  IRS shares more warning signs of incorrect ERC claims; businesses urged to resolve erroneous claims to avoid penalties, interest, audit

The IRS released five new warning indicators it has seen on incorrect claims made by businesses, as the agency steps up its efforts on the Employee Retention Credit (ERC). The updated list is based on frequent problems that the IRS compliance teams have encountered during the examination and processing of ERC claims.

“The IRS continues working aggressively to pursue improper claims as well as increase payments going out to businesses with legitimate claims on these complex credits,” said IRS Commissioner Danny Werfel. “We want businesses to be aware of common errors our compliance teams are seeing, many of which reflect bad advice coming from promoters. The IRS continues to urge people with pending claims or previously approved payments to talk to a trusted tax professional rather than a promoter and see if any of these red flags apply to them.”

Back to top

2.  IRS Nationwide Tax Forum: Registration still open for Baltimore, Dallas

With some locations already sold out, the IRS encourages tax professionals to register soon for a spot at the upcoming IRS Nationwide Tax Forum in Baltimore, Aug. 13-15, or Dallas, Aug. 20-22. Each forum offers tax professionals a total of 45 different continuing education seminars. Attendees can earn up to 19 continuing education credits.

To assist attendees needing personalized help, the IRS will have employees on-site. For example, those needing assistance with their toughest client case involving a tax matter can make an appointment with a representative in the Taxpayer Advocate Service’s Case Resolution Room. If they need help with creating an IRS Online Account or resolving a Preparer Tax Identification Number (PTIN) or Centralized Authorization File (CAF) issue, there will be appointments available in the Digital Account Services Room. For other IRS related questions, there will be staff on-hand in the IRS Zone and at various tables outside the seminar rooms.

For information and to register, visit IRS Nationwide Tax Forum. You can learn more about this year’s program on the following videos produced independently by Tax Talk Today:

• Tax Talk Today looks at Five Things to Know about the Tax Forum
• Tax Talk Today interviews at the Chicago Tax Forum

Back to top

3.  Security Summit partners urge continued vigilance against evolving scams to tax professionals, businesses and clients

In the third installment of the “Protect Your Clients; Protect Yourself” special series, the IRS and its Security Summit partners urge tax professionals to recognize the warning signs of data theft so they can take immediate action to safeguard their clients’ information and their businesses. The IRS and Security Summit partners have observed an ongoing wave of identity thieves attempting to prey on tax professionals to obtain sensitive client tax information. Tax professionals should exercise caution to avoid becoming victims of these attacks, which put their businesses and clients at risk. To report stolen data right away, a tax professionals may do the following:

• Share information with the appropriate state tax agency by visiting the special Report a Data Breach;
• Obtain an identity protection PIN or complete Form 14039, Identity Theft Affidavit, if applicable; and
• Report the incident to their local IRS stakeholder liaison.

Visit the Data Theft information for tax professionals webpage to learn more.

Back to top

4.  IRS online resources and taxpayer services continue to hit significant milestones with IRA funding

As part of ongoing transformation efforts, the IRS announced continued progress on several taxpayer service and technology projects that increase online tools and digital services. The IRS is working to update its core technology infrastructure and compliance initiatives while these projects continue to enhance taxpayer service and increase the availability of online tools. IRS Commissioner Danny Werfel emphasized these initiatives during a quarterly update on the IRS Strategic Operating Plan.

“Funding from the Inflation Reduction Act is helping spur innovation and improvement across the IRS to transform our operations in our work to help taxpayers and the nation,” said Commissioner Werfel. “This progress can be seen in our continued expansion of our online accounts to provide more features, increased use of new digital tools and additional special activities to help taxpayers in-person. By providing digital forms, making payments easier and continuing work to reduce paper-based processes that have long hampered the IRS and frustrated taxpayers, our progress is accelerating to make long-overdue improvements.” 

Back to top

5.  Tax relief available to hurricane Beryl victims in Texas

Disaster-area taxpayers in 67 Texas counties affected by Hurricane Beryl that began on July 5 now have until Feb. 3, 2025, to file various federal individual and Business tax returns and make tax payments. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This currently covers 67 counties; however, any additional counties that are later added to the disaster area will be eligible for the same tax relief. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

Back to top

6.  IRS updates FAQs on new, previously owned and qualified commercial clean vehicle credits

The IRS revised frequently asked questions (FAQs) in Fact Sheet 2024-26, which renders guidance on dealer registration, income restrictions, eligibility requirements and transfer policies for New, Previously Owned and Qualified Clean Vehicle Credits. These FAQs supersede earlier FAQs that were posted in FS-2024-14 on April 16, 2024.

Back to top

7.  Technical Guidance

Notice 2024-60 describes the information that must be included in a written report described in section 1.45Q-4(c)(2) (LCA Report) and provides the procedures a taxpayer must follow to submit the LCA Report and required supporting information to the IRS and the Department of Energy for review under section 1.45Q-4(c)(5) before any credit for carbon oxide sequestration allowed under section 45Q(a)(2)(B)(ii) or (a)(4)(B)(ii) is determined for qualified carbon oxide utilized by any taxpayer in the manner described in section 45Q(f)(5) as implemented by section 1.45Q-4 (section 45Q utilization credit).