新窗
Treasury, IRS provide additional guidance to employers claiming the employee ret New
IR-2021-165, August 4, 2021 WASHINGTON — The Treasury Department and the Internal Revenue Service today issued further guidance on the employee retention credit, including guidance for employers who pay qualified wages after June 30, 2021, and before January 1, 2022, and additional guidance on miscellaneous issues that apply to the employee retention credit in both 2020 and 2021. Notice 2021-49 PDF amplifies prior guidance regarding the employee retention credit provided in Notice 2021-20 PDF and Notice 2021-23 PDF. Notice 2021-49 addresses changes made by the American Rescue Plan Act of 2021 (ARP) to the employee retention credit that are applicable to the third and fourth quarters of 2021. Those changes include, among other things: [*]making the credit available to eligible employers that pay qualified wages after June 30, 2021, and before January 1, 2022,[*]expanding the definition of eligible employer to include "recovery startup businesses,"[*]modifying the definition of qualified wages for "severely financially distressed employers," and[*]providing that the employee retention credit does not apply to qualified wages taken into account as payroll costs in connection with a shuttered venue grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, or a restaurant revitalization grant under section 5003 of the ARP. Notice 2021-49 also provides guidance on several miscellaneous issues with respect to the employee retention credit for both 2020 and 2021. This guidance responds to various questions that the Treasury Department and the IRS have been asked about the employee retention credit, including: [*]The definition of full-time employee and whether that definition includes full-time equivalents,[*]The treatment of tips as qualified wages and the interaction with the section 45B credit,[*]The timing of the qualified wages deduction disallowance and whether taxpayers that already filed an income tax return must amend that return after claiming the credit on an adjusted employment tax return, and[*]Whether wages paid to majority owners and their spouses may be treated as qualified wages.Reporting Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their employment tax returns (generally, Form 941) for the applicable period. If a reduction in the employer's employment tax deposits is not sufficient to cover the credit, certain employers may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19. Where can I find more information on the employee retention credit and other COVID-19 economic relief efforts? Treasury and the IRS continue to closely monitor pending legislation related to the employee retention credit and will provide additional information as needed. Updates on the implementation of this employee retention credit, Frequently Asked Questions on Tax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov. Source link
lastpost: nearmetips@ 6 小时前 42 0 6 小时前 预览
IRS reminds heavy vehicle owners of August 31 highway use tax return deadline New
IRS YouTube Video:[*]Truckers: Mark Your Calendars to File Form 2290 IR-2021-164, August 4, 2021 WASHINGTON — The Internal Revenue Service reminds those who have registered, or are required to register, large trucks and buses that it's time to file Tax Year 2021 Form 2290, Heavy Highway Vehicle Use Tax Return PDF. The deadline to file and pay is August 31, 2021, for vehicles used on the road during July 2021. The highway use tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Taxpayers unsure if they must file can use the IRS online tool, "Do I Need to Pay the Heavy Highway Vehicle Use Tax?" The question-and-answer format helps owners determine if they are required to pay the highway use tax. The"Understanding Form 2290 – Heavy Highway Vehicle Use Tax" recorded webinar is also available. Ready to file? Gather information[*]Employer Identification Number (EIN) – not a Social Security number. For those who do not have one, it can take about four weeks to establish a new EIN. See How to Apply for an EIN.[*]Vehicle Identification Number and taxable gross weight of each vehicle.How to file[*]E-file is required when reporting 25 or more vehicles on Form 2290 and is the preferred filing method. The IRS provides a watermarked Schedule 1 within minutes after accepting the electronically filed return. [*]Visit IRS.gov for a list of IRS-approved e-file providers.[*]On paper.Complete and mail Form 2290. Expect to receive the stamped Schedule 1 within 6 weeks after the IRS receives the form. See Tax Year 2021 Instructions for Form 2290 PDF for the correct mailing address.How to Pay[*]Pay by credit card or debit card.[*]Electronic funds withdrawal can be authorized as part of the e-file process.[*]Electronic Federal Tax Payment System; requires advanced enrollment.[*]Check or money orderusing Form 2290-V, Payment Voucher PDF, mailed to: Internal Revenue Service P.O. Box 932500 Louisville, KY 40293-2500Vehicle registration date The filing deadline is not tied to the vehicle registration date. Regardless of the vehicle's registration renewal date, taxpayers must file Form 2290 by the last day of the month following the month in which the taxpayer first used the vehicle on a public highway during the taxable period. For more information, visit the Trucking Tax Center at IRS.gov/trucker (also available in Spanish). Need more help? Call the Form 2290 Call Site, weekdays between 8 a.m. and 6 p.m. Eastern time. From the U.S., 866-699-4096 (toll-free), from Canada or Mexico, 859-320-3581 (not toll-free). For more information, see Frequently Asked Questions for Truckers who e-file (also available in Spanish) and Frequently Asked Questions for Indian Tribal Governments Regarding Highway Use Tax. Source link
lastpost: nearmetips@ 昨天 08:10 100 0 昨天 08:10 预览
Security Summit: Tax Pros can help clients battle identity theft risk related to New
IR-2021-163, August 3, 2021 WASHINGTON — Internal Revenue Service Security Summit partners today outlined for tax professionals how they can assist clients who were victims of unemployment compensation fraud schemes that targeted state workforce agencies in 2020 and 2021. The IRS, state tax agencies and the tax industry – working together as the Security Summit – reported that unemployment compensation fraud was one of the more common identity theft schemes that emerged in 2020 as criminals exploited the COVID-19 pandemic and the resulting economic impact. Addressing unemployment compensation fraud is the third in a five-part series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data. This year's theme "Boost Security Immunity: Fight Against Identity Theft," is an effort to urge tax professionals to try harder to secure their systems and protect client data during the pandemic and its aftermath. "Identity thieves always look for opportunities, and the unemployment surge presented a new opportunity to exploit the pain and financial hardships faced by Americans," said IRS Commissioner Chuck Rettig. "This particular scam is especially egregious because 23 million Americans were jobless or underemployed last year and desperately needed these benefits." The U.S. Department of Labor's Inspector General estimated approximately $89 billion in unemployment compensation was lost in 2020 due to fraud. Unemployment compensation is taxable income on federal taxes, although Congress waived the tax for 2020 for many people. States report compensation to the individual and to the IRS by using the Form 1099-G. Because of fraud and identity theft, many taxpayers received Forms 1099-G for compensation they did not receive. Some taxpayers received forms from multiple states. This scam could affect 2021 returns next year as well as 2020 returns this year. Here are a few steps tax professionals should take to assist clients who are victims of the unemployment compensation fraud scheme: [*]File a Form 14039, Identity Theft Affidavit PDF, only if an e-filed tax return rejects because the client's Social Security number has already been used. Do not file the IRS Form 14039 to report unemployment compensation fraud to the IRS.[*]Report the fraud to state workforce agencies, and request a corrected Form 1099-G. Each state has its own process for reporting unemployment compensation fraud. The U.S. Department of Labor has created an information page with all state contacts and other information at DOL.gov/fraud.[*]File a tax return reporting only the actual income received. State workforce agencies may not be able to timely issue a corrected Form 1099-G. Even if the client has not received a corrected Form 1099-G, report only wages and income received and exclude any fraudulent claims.[*]Consider an IRS Identity Protection PIN. Clients receiving Forms 1099-G are identity theft victims whose personal information could be used for additional criminal activities, such as filing fraudulent tax returns. All taxpayers who can verify their identities can now obtain an Identity Protection PIN to protect their SSNs. Read more about IP PINs at IRS.gov/ippin.[*]Follow Federal Trade Commission recommendations for identity theft victims. Taxpayers should consider steps to protect their credit and other actions outlined by the FTC. The DOL also includes this information on its DOL.gov/fraud page.[*]Finally, tax professionals' business clients can also assist in fighting unemployment compensation fraud by responding quickly to state notices about employees filing jobless claims, especially when it has no record of those employees. Although unemployment compensation is taxable, the American Rescue Plan Act of 2021 allows an exclusion of unemployment compensation of up to $10,200 for individuals for taxable year 2020. In the case of married individuals filing a joint Form 1040 or 1040-SR, this exclusion is up to $10,200 per spouse. To qualify for this exclusion, adjusted gross income (AGI) must be less than $150,000. This threshold applies to all filing statuses. The exclusion may ease the burden on many fraud victims. However, victims who received Forms 1099-G from multiple states may have fraud claims that exceed that exclusion amount. Clients should retain any records of fraud reports to states. Additional resources Tax professionals can also get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data PDF, and Small Business Information Security: The Fundamentals PDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax Professionals PDF, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media. For more information, see Boost Security Immunity: Fight Against Identity Theft. Source link
lastpost: nearmetips@ 前天 08:10 50 0 前天 08:10 预览
Paid leave credit available for providing leave to employees caring for individu New
IR-2021-160, July 29, 2021 WASHINGTON — The IRS today updated  frequently asked questions (FAQs)  on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021 (ARP). The updates clarify that eligible employers can claim the credits for providing leave to employees to accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19 or to care for a family or household member or certain other individuals recovering from the immunization. The paid sick and family leave credits reimburse eligible employers for the cost of providing paid sick and family leave for reasons related to COVID-19. The revised FAQs make clear this includes leave taken by employees to care for certain individuals to obtain immunization relating to COVID-19 or to recover from immunization relating to COVID-19. This new reason for paid sick or family leave also applies for the comparable credits for self-employed individuals. The paid sick and family leave tax credits under the ARP are similar to those put in place by the Families First Coronavirus Response Act (FFCRA), as amended and extended by the COVID-related Tax Relief Act of 2020 (Tax Relief Act), under which certain employers could receive tax credits for providing paid sick or family leave that met the requirements of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act (as added by FFCRA). The tax credits under the FFCRA, as amended and extended by the Tax Relief Act, covered leave taken beginning April 1, 2020, through March 31, 2021. The ARP amends and extends these credits to leave taken beginning April 1, 2021, through September 30, 2021. The FAQs include information on how eligible employers may claim the paid sick and family leave credits, including how to file for and compute the applicable credit amounts, and how to receive advance payments for and refunds of the credits. Under the ARP, eligible employers, including businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, may claim tax credits for qualified leave wages and certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits). Self-employed individuals may claim comparable credits on the Form 1040, U.S. Individual Income Tax Return. Source link
lastpost: nearmetips@ 6 天前 144 0 6 天前 预览
IRS: Businesses, charities, others with Employer Identification Numbers must upd New
YouTube Video [*]Five Things to Know about the Employer Identification Number IR-2021-161, July 30, 2021 WASHINGTON — Calling it a key security issue, the Internal Revenue Service today urged those entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information. IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party - Business. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts. The data around the "responsible parties" for business-type entities is often outdated or incorrect, meaning that the IRS does not have accurate records of who to contact for identity theft issues. This means a time-consuming process to identify the point of contact so the IRS can inquire about a suspicious filing. As a result, the IRS intends to step up its awareness efforts aimed at businesses, partnerships, trusts and estates, charities and other entities that are EIN holders. Starting in August, the IRS will begin sending letters to approximately 100,000 EIN holders where it appears the responsible party is outdated. All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (Social Security number, Individual Taxpayer Identification Number or EIN) of the true principal officer, general partner, grantor, owner or trustor. The IRS defines the responsible party as the individual or entity who "controls, manages, or directs the applicant entity and the disposition of its funds and assets." Unless the applicant is a government entity, the responsible party must be an individual, not an entity. If there is more than one responsible party, the entity may list whichever party the entity wants the IRS to recognize as the responsible party. EINs are to be used strictly for tax administration purposes. Entities with EINs that are no longer in use should close their IRS tax accounts and follow steps outlined at Canceling an EIN - Closing Your Account. Source link
lastpost: nearmetips@ 6 天前 132 0 6 天前 预览
IRS announces 2021 Supplemental Application Low Income Taxpayer Clinic grant rec New
IR-2021-162, July 30, 2021 WASHINGTON — The Internal Revenue Service announced today that West Virginia University (WVU) College of Law has been selected for its 2021 Supplemental Application Low Income Taxpayer Clinic matching grant. The IRS's LITC supplemental application expands coverage to states without a clinic, giving priority to qualified organizations in underrepresented geographic areas. WVU College of Law operates an important tax controversy litigation clinic and will now be available to assist low-income and English as a second language (ESL) taxpayers located within West Virginia, a state that has not had an LITC-funded clinic for two and a half years. WVU was awarded a grant for $100,000 with a period of performance of 18 months from July 1, 2021, to December 31, 2022. The LITC grant will allow the law school to expand the tax clinic and offer more tax assistance to students. LITCs represent low-income taxpayers in federal tax disputes with the IRS and provide taxpayer education and outreach to both low income and ESL taxpayers. They must provide all services for no more than a nominal fee. Through the LITC program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations. The LITC program is a federal matching grant program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin Collins. Although LITCs receive partial funding from the IRS, LITCs, their employees and volunteers operate independent of the IRS. "The LITC program has been extremely successful and very beneficial to taxpayers," Collins said. "Through outreach and education activities, LITCs strive to ensure individuals understand their rights and responsibilities as U.S. taxpayers by recently conducting more than 1,800 educational activities that were attended by nearly 42,000 people. More than 1,500 volunteers contributed to the success of LITCs by volunteering over 52,500 hours of their time." More information about LITCs, and the work they do to represent, educate, and advocate on behalf of low income and ESL taxpayers, is available in IRS Publication 5066, LITC Program Report PDF. IRS Publication 4134, Low Income Taxpayer Clinic List PDF, provides information about LITCs by geographic area, including contact information and details about the languages, in addition to English, in which each LITC offers services. Publication 5066 and Publication 4134 are available at IRS.gov. Source link
lastpost: nearmetips@ 6 天前 127 0 6 天前 预览
IRS continues unemployment compensation adjustments, prepares another 1.5 millio
IR-2021-159, July 28, 2021 WASHINGTON — The Internal Revenue Service reported today that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns. The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000. Refunds by direct deposit will begin July 28 and refunds by paper check will begin July 30. This is the fourth round of refunds related to the unemployment compensation exclusion provision. Since May, the IRS has issued over 8.7 million unemployment compensation refunds totaling over $10 billion. The IRS will continue reviewing and adjusting tax returns in this category this summer. The IRS effort focused on minimizing burden on taxpayers so that most people won't have to take any additional action to receive the refund. The IRS review means most taxpayers affected by this change will not have to file an amended return because IRS employees have reviewed and adjusted their tax returns for them. For taxpayers who overpaid, the IRS will either refund the overpayment or apply it to other outstanding taxes or other federal or state debts owed. For this round, the IRS identified approximately 1.7 million taxpayers due an adjustment. Of that number, approximately 1.5 million taxpayers are expected to receive a refund. The refund average is $1,686. The IRS started with the simplest tax returns and is now reviewing more complex returns. The average refund amount is higher for this round because the IRS included an adjustment to the Advance Premium Tax Credit (APTC). Most taxpayers need not take any action and there is no need to call the IRS. However, if, because of the excluded unemployment compensation, taxpayers are now eligible for deductions or credits not claimed on the original return, they should file a Form 1040-X, Amended U.S. Individual Income Tax Return. Taxpayers should file an amended return if they: [*]did not submit a Schedule 8812 with the original return to claim the Additional Child Tax Credit and are now eligible for the credit after the unemployment compensation exclusion;[*]did not submit a Schedule EIC with the original return to claim the Earned Income Tax Credit (with qualifying dependents) and are now eligible for the credit after the unemployment compensation exclusion;[*]are now eligible for any other credits and/or deductions not mentioned below. Make sure to include any required forms or schedules. Taxpayers do not need to file an amended return if they: [*]already filed a tax return and did not claim the unemployment exclusion; the IRS will determine the correct taxable amount of unemployment compensation and tax;[*]have an adjustment, because of the exclusion, that will result in an increase in any non-refundable or refundable credits reported on the original return;[*]did not claim the following credits on their tax return but are now eligible when the unemployment exclusion is applied: Recovery Rebate Credit, Earned Income Credit with no qualifying dependents or the Advance Premium Tax Credit. The IRS will calculate the credit and include it in any overpayment;[*]filed a married filing joint return, live in a community property state, and entered a smaller exclusion amount than entitled on Schedule 1, line 8. Taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment. Source link
lastpost: nearmetips@ 7 天前 157 0 7 天前 预览
Security Summit: Tax pros should encourage clients to obtain IP PINs to protect
IR-2021-158, July 27, 2021 WASHINGTON — Internal Revenue Service Security Summit partners today called on tax professionals to increase efforts to inform clients about the Identity Protection PIN Opt-In Program that can protect against tax-related identity theft. The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit  – need assistance from tax professionals to spread the word to clients that the IP PIN is now available to anyone who can verify their identity. Sharing information about the IP PIN Opt-In Program is the second in a five-part weekly series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data. This year's theme "Boost Security Immunity: Fight Against Identity Theft" is an effort to urge tax professionals to intensify efforts to secure their systems and protect client data during this pandemic and its aftermath. "An Identity Protection PIN prevents someone else from filing a tax return using your Social Security number," said Chuck Rettig, IRS commissioner. "We've now made the IP PIN available to anyone who can verify their identity. This is a free way for taxpayers to protect themselves, but we need the help of tax professionals to make sure more people know about it." The IRS created  Publication 5367 (EN-SP), IP PIN Opt-In Program for Taxpayers, PDF  in English and Spanish, so that tax professionals could print and share the IP PIN information with clients. There are also special posters available in English PDF and Spanish PDF. For security reasons, tax professionals cannot obtain an IP PIN on behalf of clients. Taxpayers must obtain their own IP PIN. Summit partners urged taxpayers and tax professionals to protect the IP PIN from identity thieves. Taxpayers should share their IP PIN only with their trusted tax prep provider. Tax professionals should never store clients' IP PINs on computer systems. Also, the IRS will never call, email or text either taxpayers or tax preparers to request the IP PIN. 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. Here are a few things taxpayers 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.[*]The IP PIN should be entered onto the electronic tax return when prompted by the software product or onto a paper return next to the signature line.[*]The IP PIN is valid for one calendar year; taxpayers must obtain a new IP PIN each year.[*]Only dependents 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. Currently, taxpayers may obtain an IP PIN for 2021, which should be used when filing any federal tax returns during the year. New IP PINs will be available starting in January 2022. To obtain an IP PIN, the best option is the Get an IP PIN, the IRS online tool. Taxpayers must validate their identities through Secure Access authentication to access the tool and their IP PIN. Before attempting this rigorous process, see Secure Access: How to Register for Certain Online Self-Help Tools. The tool is offline between November and January. If you are unable to validate your identity online and if your income is $72,000 or less, you may file Form 15227, Application for an Identity Protection Personal Identification Number PDF. The IRS will call the telephone number provided on Form 15227 to validate your identity. However, for security reasons, the IRS will assign an IP PIN for the next filing season. The IP PIN cannot be used for the current filing season. 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 will 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 Tax professionals also can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data PDF, and Small Business Information Security: The Fundamentals PDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax Professionals PDF, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media. For more information, see Boost Security Immunity: Fight Against Identity Theft. Source link
lastpost: nearmetips@ 2021-7-27 08:10 44 0 2021-7-27 预览
More than 2.2 million additional Economic Impact Payments disbursed under the Am
IR-2021-157, July 21, 2021 WASHINGTON — The Internal Revenue Service, U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced today they have disbursed more than 2.2 million additional Economic Impact Payments under the American Rescue Plan. Today's announcement covering the most recent six weeks of the effort brings the total disbursed so far under the American Rescue Plan to more than 171 million payments. They represent a total value of more than $400 billion since these payments began rolling out to Americans in batches on March 12. Here is additional information on the last six weeks of payments, which includes those with official payment dates through July 21: [*]In total, this includes about 2.2 million payments with a value of more than $4 billion.[*]About 1.3 million payments, with a value of approximately $2.6 billion, went to eligible individuals for whom the IRS previously did not have information to issue an Economic Impact Payment but who recently filed a tax return. [*]This also includes additional ongoing supplemental payments for people who earlier this year received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns. In the last six weeks, there were more than 900,000 of these "plus-up" payments, with a value of more than $1.6 billion. In all, the IRS has made more than 9 million of these supplemental payments this year worth approximately $18.5 billion. The IRS will continue to disburse Economic Impact Payments on a weekly basis. Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for "plus-up" payments. Special reminder for those who don't normally file a tax return Although payments are automatic for most people, the IRS continues to urge people who don't normally file a tax return and haven't received Economic Impact Payments to file a 2020 tax return to get all the benefits they're entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit. Filing a 2020 tax return will also assist the IRS in determining whether someone is eligible for monthly advance payments of the 2021 Child Tax Credit, which began earlier this month. For example, some federal benefits recipients may need to file a 2020 tax return – even if they don't usually file – to provide information the IRS needs to send payments for a qualifying dependent. Eligible individuals in this group should file a 2020 tax return as quickly as possible to be considered for an additional payment for their qualifying dependents. People who don't normally have an obligation to file a tax return and don't receive federal benefits may qualify for these Economic Impact Payments. This includes those experiencing homelessness, the rural poor, and other historically under-served groups. Individuals who didn't get a first or second round Economic Impact Payment or got less than the full amounts may be eligible for the 2020 Recovery Rebate Credit, but they'll need to file a 2020 tax return. See the special section on IRS.gov: Claiming the 2020 Recovery Rebate Credit if you aren't required to file a tax return. The IRS has provided an online Non-Filer tool to allow individuals who weren't required to file (and have not filed) a tax return for 2020 to file a simplified tax return. This simplified tax return allows eligible individuals to register for advance Child Tax Credit payments and the third Economic Impact Payment, as well as claim the 2020 Recovery Rebate Credit. Free tax return preparation is also available for qualifying people. The IRS reminds taxpayers that the income levels in this third round of Economic Impact Payments have changed. This means that some people won't be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income ($150,000 for married filing jointly). The payments end at $80,000 for individuals ($160,000 for married filing jointly); people with Adjusted Gross Incomes above these levels are ineligible for a payment. Individuals can check the Get My Payment tool on IRS.gov to see the payment status of these payments. Additional information on Economic Impact Payments is available on IRS.gov. Source link
lastpost: nearmetips@ 2021-7-22 08:11 40 0 2021-7-22 预览
Security Summit partners urge tax pros to use multi-factor authentication; criti
IR-2021-155, July 20, 2021 WASHINGTON — With security incidents on the rise, the Internal Revenue Service, state tax agencies and the tax industry urged tax professionals and taxpayers to use a special feature – multi-factor authentication – available on tax software products to help protect against identity and data theft. The Security Summit partners today kicked off the annual 2021 "Protect Your Clients; Protect Yourself" summer campaign aimed at tax professionals. This year's theme is "Boost Security Immunity: Fighting Against Identity Theft" to urge tax professionals to step up their efforts to protect client data amid the pandemic and its aftermath. Multi-factor authentication, also known as two-factor authentication, provides more security. It allows the tax professional or taxpayer to use another feature such as a security code sent to a mobile device, a pin number or a fingerprint in addition to the username and password. A thief may steal usernames and passwords but cannot access accounts without the additional multifactor feature. "The Security Summit has made great strides to protect the tax community, but we need the help of everyone in the tax professional community," said IRS Commissioner Chuck Rettig. "Using the multi-factor authentication feature available on tax preparation products is one of the easiest and cheapest security measures any tax pro can take. It's offered for free by the tax software providers. As people continue to get vaccines, we urge tax professionals as well as taxpayers to boost their security immunity and help in the battle against identity theft." This marks the sixth year of the tax professional campaign, part of a wider effort by the Security Summit coalition of the IRS, state tax agencies and the nation's tax community to strengthen protections against identity and data theft threatening the tax system. This is the first in a series of weekly news releases running through August 17. Through June 30, 2021, there have been 222 data theft reports this year from tax professionals to the IRS, outpacing the rate of 211 in 2020 and 124 in 2019. Each individual report may involve hundreds to thousands of taxpayers. Client information stolen from tax professionals' offices is used to create fraudulent tax returns that are difficult to detect because the identity thief is using real financial data. Based on reports to the IRS in 2020, many tax professionals whose client data was stolen failed to use multifactor authentication, and the feature could have prevented some of the thefts. Tax professionals also should use multi-factor authentication features anywhere it is offered, such as commercial email products and cloud storage providers. Multi-factor authentication is just one of several security steps tax professionals – and taxpayers – should use to protect sensitive data. Other steps include: [*]Use anti-virus software and set it for automatic updates. Anti-virus software scans existing files and drives on computers - and mobile phones – to protect from malware.[*]Use a firewall to shield digital devices from external attacks.[*]Use backup software/services to protect data. Making a copy of files can be crucial, especially if the user becomes a victim of a ransomware attack. [*]Use drive encryption to secure computer locations where sensitive files are stored. Encryption makes data on the files unreadable to unauthorized users.[*]Create and secure Virtual Private Networks. A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the Internet and the company network. Search for "Best VPNs" to find a legitimate vendor; major technology sites often provide lists of top services. The IRS also reminds tax professionals that federal law, enforced by the Federal Trade Commission, requires all professional tax preparers to create and implement a data security plan. The IRS also recommends tax professionals create a data theft response plan, which includes  contacting the IRS Stakeholder Liaisons  to report a theft. Additional resources Tax professionals also can get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data PDF, and Small Business Information Security: The Fundamentals PDF by the National Institute of Standards and Technology. The IRS Identity Theft Central pages for tax pros, individuals and businesses have important details as well. Publication 5293, Data Security Resource Guide for Tax Professionals PDF, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and Social Media. For more information, see Boost Security Immunity: Fight Against Identity Theft. Source link
lastpost: nearmetips@ 2021-7-21 08:10 97 0 2021-7-21 预览
IRS holds additional weekend events July 23-24 to help people with Child Tax Cre
Friday, Saturday events in several cities support eligible families IR-2021-156, July 21, 2021 WASHINGTON — The Internal Revenue Service and partners in non-profit organizations, churches, community groups and others will host additional events in several cities this weekend to help eligible families register for the monthly Advance Child Tax Credit (AdvCTC) payments. The special events on July 23-24, 2021, will be hosted by IRS and partner groups to help people file income tax returns and register for the advance payments. Events will be held in Birmingham, Alabama; Bronx, New York; Charlotte, North Carolina; Chicago, Illinois; Cleveland, Ohio; Dallas, Texas; Indianapolis, Indiana; Memphis, Tennessee; Minneapolis/St. Paul, Minnesota; Newark, New Jersey; New Haven, Connecticut; Oklahoma City, Oklahoma; Paterson, New Jersey; Riverside, California; Seattle, Washington; and Tampa, Florida. With the help of a new Non-filer Sign-up Tool on the IRS website, volunteers and IRS employees will assist eligible individuals and families get these important tax credits and benefits. This tool, an update of last year's IRS Non-Filers tool, is also designed to help individuals register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks) and claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed. Individuals do not need to have children to attend these events and sign up for Economic Impact Payments. This is part of a larger effort underway at the IRS to reach people eligible for the payments and other credits. The IRS also continues working with partner groups across the country, both inside and outside of the tax community, to share information and raise awareness. These activities and events are in addition to this special weekend of activities. This is part of a wider effort to raise awareness of the expanded Child Tax Credit. The IRS also encourages its partners to use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up to receive the AdvCTC. People can check their eligibility for the advance payments by using the new Advance Child Tax Credit Eligibility Assistant. For this weekend's events, people are encouraged to have the following information when they come to one of these events: (1) Social Security numbers for their children, (2) Social Security numbers or Tax Identification Numbers for themselves and their spouse, (3) a reliable mailing address, (4) an e-mail address, and (5) their bank account information if they want to receive their payment by direct deposit. Some tax credits, such as the Child Tax Credit (CTC), are "refundable," meaning that even if taxpayers don't owe income tax, the IRS will issue them a refund if they're eligible; but they must file a tax return or register with the new Non-filer Sign-up Tool to receive it. Some people who haven't filed a 2020 tax return yet are also eligible for the $1,400 per person Economic Impact Payments and the Recovery Rebate Credit. The first monthly payments of the expanded and newly-advanceable CTC from the American Rescue Plan were made on July 15, and will be sent monthly through Dec 15. Most families began receiving monthly payments without any additional action. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 to 17. People who need to file a 2020 federal income tax return, but are unable to attend one of these events, may be able to prepare and file their own federal income tax online using IRS Free File if their income is $72,000 or less. People who don't need to file a 2020 federal tax return can also use the Non-filer Sign-up Tool to register to receive the advance CTC payments, the third round of the Economic Impact Payment and the Recovery Rebate Credit. The IRS encourages people to request payments via direct deposit, which is faster and more secure than other payment methods. People who don't have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC's BankFind tool to locate an FDIC-insured bank. Finally, BankOn, American Bankers Association, Independent Community Bankers of America and National Credit Union Administration have lists of banks and credit unions that can open an account online. Veterans can see the Veterans Benefits Banking Program for financial services at participating banks. About the advance Child Tax Credit The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a family's 2020 tax return, including those who use the Non-filer Sign-up Tool. If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020. To make sure families have easy access to their money, the IRS is issuing these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail for their mailed payment. To learn more about advance CTC payments, visit IRS.gov/childtaxcredit2021 or see FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. Source link
lastpost: nearmetips@ 2021-7-21 08:10 76 0 2021-7-21 预览
IRS improves services to taxpayers with digital authorizations and launch of new
IR-2021-154, July 19, 2021 WASHINGTON — The Internal Revenue Service today launched a new feature that will give taxpayers digital control over who can represent them or view their tax records, a groundbreaking step in the agency's expansion of electronic options for taxpayers and tax professionals. The new feature, one of many recent enhancements to the Online Account for individuals, will allow individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with a Tax Information Authorizations (TIA). "The ability for taxpayers to connect online with their tax professional is a groundbreaking step for the IRS," said Chuck Rettig, IRS Commissioner. "This is the first, basic step toward a more fully integrated digital tax system that will benefit taxpayers, tax professionals and the IRS." As of today, tax professionals may go to the new Tax Pro Account on IRS.gov to digitally initiate POAs and TIAs. These digital authorization requests are simpler versions of Forms 2848 and 8821. Once completed and submitted by the tax professional, the authorization requests will appear in the taxpayers' Online Account for their review, approval or rejection and electronic signature. Because the taxpayers' identities already are verified at the time of login, they simply check a box as their signature and submit the authorization request to the IRS. A key benefit is the completed digital authorization, if accurate, will go directly to the Centralized Authorization File (CAF) database and will not require manual processing. Most requests will be immediately recorded and appear on the list of approved authorizations in the taxpayer's Online Account and the tax professional's Tax Pro Account. Some authorizations may take up to 48 hours. Tax professionals may then go to e-Services Transcript Delivery Service to see the taxpayer's records. This new digital authorization option will be a much faster process. It will allow the IRS to reduce its current CAF inventory and to focus on authorization requests received through fax, mail or the Submit Forms 2848 and 8821 Online – all of which require IRS personnel to handle. To connect with their tax professionals, taxpayers either login to their Online Account using their IRS username and password or they must create an account after passing a one-time identity verification process. Taxpayers who cannot validate their identities cannot use this option, and their tax professional must use the fax, mail or online submission process. However, the IRS will be announcing a new process for this application later this year. Tax professionals should use their IRS usernames and passwords to access the Tax Pro Account or create an account after verifying their identities. This initial launch of the Tax Pro Account represents the first release of the tool. Over time, additional functionality will be added for taxpayers and tax professionals that will increase the options for electronic interactions. Currently, the digital authorization process is available only to individual taxpayers, not businesses or other entities. Also, tax professionals must be in good standing with the IRS and already have a CAF number prior to making requests through Tax Pro Account. To initiate the authorizations, tax professionals must enter their personal information and their clients' personal information exactly as it appears on IRS tax records. Also, the feature is available only to those with addresses in the United States. Tax Pro Account is a separate tool from e-Services. To help tax professionals educate their clients about this new process, the IRS has created two e-Posters that practitioners may share. These are: [*]Publication 5533, Why You Should Create an IRS Online Account PDF[*]Publication 5533-A, How to Submit Authorizations Using Tax Pro Account and Online Account PDF There are additional features available to individual taxpayers from their Online Account. Taxpayers can view: [*]The amount they owe, updated for the current calendar day[*]Their balance details by year[*]Their payment history and any scheduled or pending payments[*]Key information from their most recent tax return[*]Payment plan details[*]Digital copies of select notices from the IRS[*]Their Economic Impact Payments, if any[*]Their address on file Taxpayers can also: [*]Make a payment online[*]See payment plan options and request a plan via Online Payment Agreement[*]Access their tax records via Get TranscriptSource link
lastpost: nearmetips@ 2021-7-20 08:10 93 0 2021-7-20 预览
IRS: Monthly Child Tax Credit payments begin
IR-2021-153, July 15, 2021 WASHINGTON — The Internal Revenue Service and the Treasury Department announced today that millions of American families have started receiving monthly Child Tax Credit payments as direct deposits begin posting in bank accounts and checks arrive in mailboxes. This first batch of advance monthly payments worth roughly $15 billion reached about 35 million families today across the country. About 86% were sent by direct deposit. The payments will continue each month. The IRS urged people who normally aren't required to file a tax return to explore the tools available on IRS.gov. These tools can help determine eligibility for the advance Child Tax Credit or help people file a simplified tax return to sign up for these payments as well as Economic Impact Payments, and other credits you may be eligible to receive. Under the American Rescue Plan, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. Normally, anyone who receives a payment this month will also receive a payment each month for the rest of 2021 unless they unenroll. Besides the July 15 payment, payment dates are: Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15. Here are further details on these payments: [*]Families will see the direct deposit payments in their accounts starting today, July 15. For those receiving payment by paper check, they should remember to take into consideration the time it takes to receive it by mail.[*]Payments went to eligible families who filed 2019 or 2020 income tax returns.[*]Tax returns processed by June 28 are reflected in these payments. This includes people who don't typically file a return, but during 2020 successfully registered for Economic Impact Payments using the IRS Non-Filers tool or in 2021 successfully used the Non-filer Sign-up Tool for Advance CTC, also on IRS.gov.[*]Payments are automatic. Aside from filing a tax return, including a simplified return from the Non-Filer Sign-Up tool, families don't have to do anything if they are eligible to receive monthly payments. Additional information is available on a special Advance Child Tax Credit 2021 page, designed to provide the most up-to-date information about the credit and the advance payments. Source link
lastpost: nearmetips@ 2021-7-16 08:10 178 0 2021-7-16 预览
IRS Security Summit announces summer campaign to raise awareness among tax pros
IR-2021-152, July 14, 2021 WASHINGTON — Continuing an effort to battle tax-related identity theft, the IRS, state tax agencies and the tax industry announced today that the annual campaign to raise awareness among tax professionals about data security will begin next week. The 2021 campaign begins as the number of data thefts reported by tax professionals to the IRS continued to climb. Through June 30, 2021, there have been 222 data theft reports this year from tax professionals to the IRS, outpacing the rate of 211 in 2020 and 124 in 2019. Each report can impact hundreds of taxpayers and threaten the tax professional's business. "Boost Security Immunity: Fighting Against Identity Theft" will urge tax professionals to take basic actions to stem the data theft from their offices. This is the sixth year that the Security Summit partners – the IRS, state tax agencies and the nation's tax community – have worked to raise awareness about these issues. "The Security Summit continues to work cooperatively to battle tax-related identity theft, but we need the help of tax professionals in this effort," said IRS Commissioner Chuck Rettig. "We continue to see instances where tax professionals did not take simple steps that could have protected their clients and their business. Tax professionals must take a shot at basic security steps to protect against relentless efforts by identity thieves to steal data and tax information." Identity thieves and fraudsters were especially active last year and this year as they used the COVID-19 pandemic, the nationwide teleworking practices and the economic downturn as fuel for a variety of scams and schemes to steal money and identities. Tax professionals are key targets of criminal syndicates that are tech-savvy, tax-savvy and well-funded. These scammers either trick or hack their way into tax professionals' computer systems to access client data. They use stolen data to file fraudulent tax returns that make it more difficult for the IRS and the states to detect because the fraudulent returns use real financial information. The Security Summit formed in 2015 to take its own shot at fighting against identity theft. The Summit partners made great inroads against tax-related identity theft, dramatically reducing confirmed identity theft returns and saving billions in tax dollars. During the next five weeks, the Security Summit partners will highlight a series of simple actions that tax professionals can take to better protect client data from theft and help ensure that the progress in tax-related identity theft that started in 2015 continues on its path. Highlighted recommendations will be to: [*]Use multi-factor authentication to protect tax preparation software accounts. All tax software providers now offer multi-factor authentication options, which require more than just a username and password to access accounts. This feature is offered on tax preparation products for both tax professionals and taxpayers. This is a key step to securing sensitive financial data. Multi-factor authentication is in addition to traditional actions such as using anti-virus software, strong password phrases and virtual private networks to protect connections between telework locations and offices – all critical steps for tax pros[*]Sign up clients for Identity Protection PINs. The IRS now offers IP PINs to all taxpayers who can verify their identities online, on the phone with an IRS employee after filing a Form 15227 or in person. The IP PIN is a six-digit number that is known only to the taxpayer and the IRS. It helps prevent an identity thief from filing a fraudulent return in the taxpayer's name. Tax professionals cannot obtain an IP PIN for their clients. Clients must verify their identities to the IRS. The easiest way is at the Get an IP PIN tool on IRS.gov.[*]Help clients fight unemployment compensation fraud. One of the larger scams of 2020 involved identity thieves using stolen identities to file for unemployment compensation benefits with the states during the pandemic-induced economic downturn. States issue Forms 1099-G to taxpayers and the IRS to report taxable unemployment income. For 2020, some taxpayers received multiple Forms 1099-G from states as thieves used their names to steal benefits.[*]Avoid spear phishing scams. One of the most successful tactics used by identity thieves against tax professionals is the spear phishing scam. Thieves take time to craft personalized emails to entice tax professionals to open a link embedded in the email or open an attachment. For 2020, tax pros were especially vulnerable to spear phishing scams from thieves posing as potential clients. Thieves might carry on an email conversation with their target for several days before sending the email containing a link or attachment. The link or attachment may secretly download software onto the tax pros' computers that will give thieves remote access to the tax professionals' systems.[*]Know the signs of identity theft. Many tax professionals who report data thefts to the IRS also say that they were unaware of the signs that a theft had occurred. There are many signs that tax pros should be aware. These include multiple clients suddenly receiving IRS letters requesting confirmation that they filed a tax return deemed suspicious. Tax professionals may see e-file acknowledgements for far more tax returns than they filed. Computer cursors may move seemingly on their own. More information on these tips will be available every Tuesday over the next five weeks. This summer series also coincides with the annual IRS Nationwide Tax Forums, which are being held virtually this summer over a five-week period beginning July 20. The 2021 Forums feature three webinars focused on cyber- and information security that will be live streamed as follows: [*]"Cybersecurity for Tax Professionals – Advanced Session," presented by the American Coalition for Taxpayer Rights, July 28 at 2 p.m. ET.[*]"Helping You and Your Clients Steer Clear of Fraud and Scams," presented by the Treasury Inspector General for Tax Administration, Aug. 4 at 11 a.m. ET.[*]"IRS Criminal Investigation: Deeper Dive into Emerging Cyber Crimes and Crypto Tax Compliance," Aug. 5 at 11 a.m. ET. For more information and to register visit IRS Nationwide Tax Forum. Source link
lastpost: nearmetips@ 2021-7-15 08:10 204 0 2021-7-15 预览
IRS readies nearly 4 million refunds for unemployment compensation overpayments
IR-2021-151, July 13, 2021 WASHINGTON — The Internal Revenue Service announced today it will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year. The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000. Refunds by direct deposit will begin July 14 and refunds by paper check will begin July 16. The IRS previously issued refunds related to unemployment compensation exclusion in May and June, and it will continue to issue refunds throughout the summer. To ease the burden on taxpayers, the IRS has been reviewing the Forms 1040 and 1040SR that were filed prior to the law's enactment to identify those people who are due an adjustment. For taxpayers who overpaid, the IRS will either refund the overpayment, apply it to other outstanding taxes or other federal or state debts owed. For this round, the IRS identified approximately 4.6 million taxpayers who may be due an adjustment. Of that number, approximately 4 million taxpayers are expected to receive a refund. The refund average is $1,265, which means some will receive more and some will receive less. Most taxpayers need not take any action and there is no need to call the IRS. However, if, as a result of the excluded unemployment compensation, taxpayers are now eligible for deductions or credits not claimed on the original return, they should file a Form 1040-X, Amended U.S. Individual Income Tax Return. Taxpayers should file an amended return if they: [*]did not submit a Schedule 8812 with the original return to claim the Additional Child Tax Credit and are now eligible for the credit after the unemployment compensation exclusion;[*]did not submit a Schedule EIC with the original return to claim the Earned Income Tax Credit (with qualifying dependents) and are now eligible for the credit after the unemployment compensation exclusion;[*]are now eligible for any other credits and/or deductions not mentioned below. Make sure to include any required forms or schedules. Taxpayers do not need to file an amended return if they: [*]already filed a tax return and did not claim the unemployment exclusion; the IRS will determine the correct taxable amount of unemployment compensation and tax;[*]have an adjustment, because of the exclusion, that will result in an increase in any non-refundable or refundable credits reported on the original return;[*]did not claim the following credits on their tax return but are now eligible when the unemployment exclusion is applied: Recovery Rebate Credit, Earned Income Credit with no qualifying dependents or the Advance Premium Tax Credit. The IRS will calculate the credit and include it in any overpayment;[*]filed a married filing joint return, live in a community property state, and entered a smaller exclusion amount than entitled on Schedule 1, line 8. Taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment. Source link
lastpost: nearmetips@ 2021-7-14 08:10 64 0 2021-7-14 预览
IRS: Online Child Tax Credit eligibility tool now available in Spanish; other mu
IR-2021-150, July 12, 2021 WASHINGTON — The Internal Revenue Service has launched a new Spanish-language version of its online tool, Child Tax Credit Eligibility Assistant, designed to help families determine whether they qualify for the Child Tax Credit and the special monthly advance payments of the credit, due to begin on July 15. Available exclusively on IRS.gov, the new Spanish version of the tool, like its English-language counterpart, is interactive and easy to use. By answering a series of questions about themselves and their family members, a parent or other family member can quickly determine whether they qualify for the credit. Though anyone can use this tool, it may be particularly useful to families who don't normally file a federal tax return and have not yet filed either a 2019 or 2020 return. Often, these are people who receive little or no income, including those experiencing homelessness, low income households, and other underserved groups. Using this tool can help them decide whether they should take the next step and either register for the Child Tax Credit payments using another IRS tool, the Non-filer Sign-up Tool, or file a regular tax return using the IRS Free File system. To help people understand and receive this benefit, the IRS has developed materials in several languages and additional multi-lingual resources will roll out in coming weeks and months. All tools and materials, in English and other languages, are posted on a special Advance Child Tax Credit 2021 page at IRS.gov/childtaxcredit2021. Multilingual resources already available include: [*]A step-by-step guide to using the Non-filer Sign-up Tool (Publication 5538) in Spanish, Chinese Simplified, Korean, Vietnamese, Haitian Creole and Russian. [*]A basic You Tube video on the Advance Child Tax Credit in Spanish and Chinese, as well as English.[*]E-posters in various languages.[*]Information about Free File in seven languages. Besides the Child Tax Credit, the IRS has a variety of tax-related tools and resources available in various languages.  Community partners can help The IRS urges community groups, especially those who serve non-English speakers, to help share this critical information about the Advance Child Tax Credit as well as other important benefits. This includes nonprofits, associations, education organizations and anyone else with connections to people with children. Among other things, The IRS is providing these groups with information that can be easily shared through social media, email and other methods. Watch out for scams The IRS urges everyone, especially those who speak languages other than English, to be on the lookout for scams related to both Advance Child Tax Credit payments and Economic Impact Payments. In particular, scammers often target non-English speakers and underserved communities. The IRS emphasized that the only way to get either of these benefits is by either filing a tax return with the IRS or registering online through the Non-filer Sign-up Tool, exclusively on IRS.gov. Any other option is a scam. Watch out for scams using email, phone calls or texts related to the payments. Remember, the IRS never sends unsolicited electronic communications asking anyone to open attachments or visit a non-governmental web site. More about the Child Tax Credit Eligibility Assistant The Child Tax Credit Eligibility Assistant does not request any personally-identifiable information (PII) for any family member. For that reason, its results are not an official determination by the IRS. Though the results are reliable, if the questions are answered accurately, they should be considered preliminary. Neither the answers supplied by the user, nor the results, are retained by the IRS. Non-filer Sign-Up Tool If the Child Tax Credit Eligibility Assistant indicates that a family qualifies for the credit, the next step is to either register with the IRS or file a return. For families who don't normally need to file a return, The online Non-filer Sign-Up Tool is the easiest way to register for the advance payments. This tool, an update of last year's IRS Economic Impact Payment Non-filers tool, is also designed to help eligible individuals who don't normally file tax returns register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks). In addition, it can help them claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed. Developed in partnership with Intuit and delivered through the Free File Alliance, the tool enables them to provide the IRS with basic information, such as their name, address, and social security numbers, as well as information about their qualifying children age 17 and under and their other dependents. It also enables them to provide their bank account information, so the IRS can quickly and easily deposit the payments directly into their checking or savings account. The Non-filer Sign-Up tool should not be used by anyone who has already filed a 2019 or 2020 federal income tax return, or plans to do so. Free File; a better option for some Though the Non-filer Sign-up Tool is the easiest way to register for Advance Child Tax Credit payments, it may not be the best option for all families. That's because many families also qualify for the Earned Income Tax Credit and other benefits for low-and moderate-income people. For them, a better option is filing a regular tax return using the Free File system, available only on IRS.gov. About the Advance Child Tax Credit The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a family's 2020 tax return, including those who use the Non-filer Sign-up Tool. If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020. The payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17. To make sure families have easy access to their money, the IRS will issue these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment. The dates for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15. For more information, visit IRS.gov/childtaxcredit2021, or read FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. Source link
lastpost: nearmetips@ 2021-7-13 08:10 125 0 2021-7-13 预览
IRS holds special weekend events to help people who don’t normally file taxes ge
Friday, Saturday events in 12 cities held to support eligible families IR-2021-146, July 7, 2021 WASHINGTON — The Internal Revenue Service and partners in non-profit organizations, churches, community groups and others will host events in 12 cities this weekend to help people who don't normally file a federal tax return to register for the monthly Advance Child Tax Credit (AdvCTC) payments. The special events PDF by IRS and partner groups to help people quickly file income tax returns and register for the advance payments will take place July 9-10, 2021. Events will be held in Atlanta, New York, Detroit, Houston, Los Angeles, Las Vegas, Miami, Milwaukee, Philadelphia, Phoenix, St. Louis and Washington, DC/Maryland. "This is part of a wider effort by the IRS to reach as many people as possible who don't file a tax return but may be eligible for the Child Tax Credit and Economic Impact Payments," said Ken Corbin, IRS Wage and Investment Commissioner and the agency's Chief Taxpayer Experience Officer. "We encourage people to share this information widely and encourage those who need help to visit these locations." With the help of a new Non-filer Sign-up Tool on the IRS website, volunteers and IRS employees will assist eligible individuals and families get these important tax credits and benefits. This tool, an update of last year's IRS Non-Filers tool, is also designed to help individuals register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks) and claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed. Individuals do not need to have children to attend these events and sign up for Economic Impact Payments. People can check their eligibility for the AdvCTC payments by using the new Advance Child Tax Credit Eligibility Assistant. For this weekend's events, to make the sign-up process go quickly and smoothly, people are encouraged to have the following information when they come to one of these events: [*]Social Security numbers for their children,[*]Social Security numbers or Tax Identification Numbers for themselves and their spouse,[*]a reliable mailing address,[*]an email address, and[*]their bank account information if they want to receive their payment by direct deposit. The IRS is also planning to do additional events in the future as well as work with partners inside and outside the tax community to share information as widely as possible to people who may be eligible for Child Tax Credits and the Economic Impact Payments. This is part of a wider effort to raise awareness of the expanded Child Tax Credit, the IRS also encourages its partners to use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up to receive the AdvCTC. Some tax credits, such as the Child Tax Credit (CTC), are "refundable," meaning that even if taxpayers don't owe income tax, the IRS will issue them a refund if they're eligible; but they must file a tax return or register with the new Non-filer Sign-up Tool to receive it. Some people who haven't filed a 2020 tax return yet are also eligible for the $1,400 per person Economic Impact Payments and the Recovery Rebate Credit. The first monthly payments of the expanded and newly-advanceable CTC from the American Rescue Plan will be made starting July 15. Most families will begin receiving monthly payments without any additional action. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 to 17. People who need to file a 2020 federal income tax return, but are unable to attend one of these events, may be able to prepare and file their own federal income tax online using IRS Free File if their income is $72,000 or less. People who don't need to file a 2020 federal tax return can also use the Non-filer Sign-up Tool to register to receive the advance CTC payments, the Third Round Economic Impact Payment, and the Recovery Rebate Credit. The IRS encourages people to request payments via direct deposit, which is faster and more secure than other payment methods. People who don't have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC's BankFind tool to locate an FDIC-insured bank. Finally, BankOn, American Bankers Association, Independent Community Bankers of America and National Credit Union Administration have lists of banks and credit unions that can open an account online. Veterans can see the Veterans Benefits Banking Program for financial services at participating banks. About the advance Child Tax Credit The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a family's 2020 tax return, including those who use the Non-filer Sign-up Tool. If that return is not available because it has not yet been filed or is still being processed, the IRS will instead determine the initial payment amounts using the 2019 return or the information entered using the Non-filers tool that was available in 2020. The payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17. To make sure families have easy access to their money, the IRS will issue these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment. The dates for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15. To learn more about advance CTC payments, visit IRS.gov/childtaxcredit2021 or see FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. Source link
lastpost: nearmetips@ 2021-7-8 08:11 181 0 2021-7-8 预览
IRS provides answers for certain transportation companies eligible for Treasury
IR-2021-145, July 6, 2021 WASHINGTON — The Internal Revenue Service today posted answers to questions that certain transportation companies may have regarding Treasury grants and related taxes. The Coronavirus Economic Relief for Transportation Services (CERTS) Act of the Consolidated Appropriations Act of 2021 authorizes the Department of the Treasury to provide grants to transportation service providers--including eligible motorcoach companies, school bus companies, and passenger vessel companies-- that experienced annual revenue losses of 25% or more as a result of COVID-19. These companies must generally prioritize the use of the grants for payroll costs, though grants may be used for certain operating expenses (including the acquisition of services and equipment needed to protect workers and customers from COVID-19) and the repayment of debt accrued to maintain payroll. Funds not used for eligible activities within one year of receipt of the grant must be returned to the Treasury Department. The FAQs posted today answer two important questions: [*]Are the grants taxable? Yes, the receipt of a CERTS Act grant is not excluded from the recipient's gross income under the Code and therefore is taxable.[*]Are costs for which the grants are used deductible? Yes, the costs are deductible to the extent that they are otherwise deductible under the law. The tax law generally permits the payment of wages, salaries, and benefits to employees and other amounts paid to carry on a trade or business to be deducted as ordinary and necessary business expenses. Additional information about tax relief for businesses affected by the COVID-19 can be found on IRS.gov. Source link
lastpost: nearmetips@ 2021-7-7 08:10 210 0 2021-7-7 预览
IRS extends tax relief for employer leave-based donation programs that aid victi
IR-2021-142, June 30, 2021 WASHINGTON — The Internal Revenue Service today extended the tax relief provided in Notice 2020-46 for calendar year 2021 for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic. Notice 2021-42 PDF provides that cash payments employers make to charitable organizations that provide relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave which their employees forgo will not be treated as compensation. Similarly, the employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer. Employers, however, may deduct these cash payments as a business expense or as a charitable contribution deduction if the employer otherwise meets the respective requirements of either section. Notice 2020-46 PDF and Notice 2021-42 PDF provide further details for employers with leave-based donation programs Additional information about tax relief for those affected by the COVID-19 pandemic can be found at Coronavirus Tax Relief for Businesses and Tax-Exempt Entities. . Source link
lastpost: nearmetips@ 2021-7-1 08:10 96 0 2021-7-1 预览
IRS: Families receiving monthly Child Tax Credit payments can now update their d
IR-2021-143, June 30, 2021 WASHINGTON — The Internal Revenue Service today upgraded a key online tool to enable families to quickly and easily update their bank account information so they can receive their monthly Child Tax Credit payment. The bank account update feature was added to the Child Tax Credit Update Portal, available only on IRS.gov. Any updates made by August 2 will apply to the August 13 payment and all subsequent monthly payments for the rest of 2021. Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS. Those who are not enrolled for direct deposit will receive a check. The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner. The IRS also urges people to be on the lookout for scams related to the Child Tax Credit. People who need to update their bank account information should go directly to the IRS.gov site and not click on links received by email, text or phone. How to update direct deposit information First, families should use the Child Tax Credit Update Portal to confirm their eligibility for the payments. If eligible, the tool will also indicate whether they are enrolled to receive their payments by direct deposit. If so, it will list the full bank routing number and the last four digits of their account number. This is the account that will receive their July 15 payment, and if they don't change the account, all future payments will go there as well. Next, if they choose, they can change the bank account receiving the payment starting with the August 13 payment. They can do that by updating the routing number and account number and indicating whether it is a savings or checking account. Note that only one account number is permitted for each recipient—that is, the entire payment must be direct deposited in only one account. How to switch from paper check to direct deposit If the Update Portal shows that a family is eligible to receive payments but not enrolled to receive direct deposits, they will receive a check each month. If they want to switch to receiving their payments by direct deposit, they can use the tool to add their bank account information. They do that by entering their bank routing number and account number and indicating whether it is a savings or checking account. The IRS urges any family receiving checks to consider switching to direct deposit. With direct deposit, families can access their money more quickly. Direct deposit removes the time, worry and expense of cashing a check. In addition, direct deposit eliminates the chance of a lost, stolen or undelivered check. Families can stop payments anytime Even after payments begin, families can stop all future monthly payments if they choose. They do that by using the unenroll feature in the Child Tax Credit Update Portal. Eligible families who make this choice will still receive the rest of their Child Tax Credit as a lump sum when they file their 2021 federal income tax return next year. To stop all payments starting in August and the rest of 2021, they must unenroll by August 2, 2021. For more information about the unenrollment process, including a schedule of deadlines for each monthly payment, see Topic J of the Child Tax Credit FAQs on IRS.gov. Who should unenroll? Instead of receiving these advance payments, some families may prefer to wait until the end of the year and receive the entire credit as a refund when they file their 2021 return. The Child Tax Credit Update Portal enables these families to quickly and easily do that. The unenroll feature can also be helpful to any family that no longer qualifies for the Child Tax Credit or believes they will not qualify when they file their 2021 return. This could happen if, for example: [*]Their income in 2021 is too high to qualify them for the credit.[*]Someone else (an ex-spouse or another family member, for example) qualifies to claim their child or children as dependents in 2021.[*]Their main home was outside of the United States for more than half of 2021.What is the Child Tax Credit Update Portal? The Child Tax Credit Update Portal is a secure, password-protected tool, available to any eligible family with internet access and a smart phone or computer. It is designed to enable them to manage their Child Tax Credit accounts. Right now, this includes updating their bank account information with the IRS or unenrolling from monthly payments. Soon, it will allow people to check on the status of their payments. Later this year, the tool will also enable them to make other status updates and be available in Spanish. To access the Child Tax Credit Update Portal, a person must first verify their identity. If a person has an existing IRS username or an ID.me account with a verified identity, they can use those accounts to easily sign in. People without an existing account will be asked to verify their identity with a form of photo identification using ID.me, a trusted third party for the IRS. Identity verification is an important safeguard and will protect the user's account from identity theft. Anyone who lacks internet access or otherwise cannot use the online tool may unenroll by contacting the IRS at the phone number included in the outreach letter they received from the IRS. Who is getting a monthly payment? In general, monthly payments will go to eligible families who: [*]Filed either a 2019 or 2020 federal income tax return.[*]Used the Non-Filers tool on IRS.gov in 2020 to register for an Economic Impact Payment.[*]Registered for the advance Child Tax Credit this year using the new Non-Filer Sign-up Tool on IRS.gov. An eligible family who took any of these steps does not need to do anything else to get their payments. Normally, the IRS will calculate the advance payment based on the 2020 income tax return. If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS is instead determining the payment using the 2019 tax return. Eligible families will receive advance payments, either by direct deposit or check. Each payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. The IRS will issue advance Child Tax Credit payments on these dates: July 15, August 13, September 15, October 15, November 15 and December 15. Tax returns processed by June 28 will be reflected in the first batch of monthly payments scheduled for July 15. Taxpayers will receive several letters Taxpayers will also receive several letters related to the Child Tax Credit. In the next few weeks, letters are going to eligible families who filed either a 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov to register for an Economic Impact Payment. The letters will confirm their eligibility, the amount of payments they'll receive and that the payments begin July 15. Families who receive these letters do not need to take any further action. The personalized letters follow up on the Advance Child Tax Credit Outreach Letter, sent in early- and mid-June, to every family who appeared to qualify for the advance payments. Child Tax Credit 2021 The IRS has created a special Advance Child Tax Credit 2021 page, designed to provide the most up-to-date information about the credit and the advance payments. Among other things, it provides direct links to the Child Tax Credit Update Portal, as well as two other online tools −the Non-filer Sign-up Tool and the Child Tax Credit Eligibility Assistant, a set of frequently asked questions and other useful resources. Child Tax Credit changes The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children ages 6 through 17. Before 2021, the credit was worth up to $2,000 per eligible child. The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of: [*]$75,000 or less for singles,[*]$112,500 or less for heads of household and[*]$150,000 or less for married couples filing a joint return and qualified widows and widowers. For most people, modified AGI is the amount shown on Line 11 of their 2020 Form 1040 or 1040-SR. Above these income thresholds, the extra amount above the original $2,000 credit — either $1,000 or $1,600 per child — is reduced by $50 for every $1,000 in modified AGI. In addition, the credit is fully refundable for 2021. This means that eligible families can get it, even if they owe no federal income tax. Before this year, the refundable portion was limited to $1,400 per child. For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021. Source link
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