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National Tax Security Awareness Week: Tax pros, taxpayers can use secure online New
IR-2021-240, December 2, 2021 WASHINGTON — The Internal Revenue Service, state tax agencies and the tax industry marked the fourth day of National Tax Security Awareness Week with a reminder to tax professionals and taxpayers that they can use digital signatures on a variety of common IRS forms and access a secure online platform to view and make changes to their account. The partners, working together as the Security Summit, today added to the 6th annual National Tax Security Awareness Week, a week-long effort to heighten awareness about identity theft and data security measures among taxpayers, businesses and tax professionals. To help reduce burden for the tax community, the IRS allows taxpayers to use electronic or digital signatures on certain paper forms they cannot file electronically. The IRS is balancing the e-signature option with critical security and protection needed against identity theft and fraud. "The pandemic and the need for increased telework has created opportunities for sophisticated cybercriminals to scam people," said IRS Commissioner Chuck Rettig. "As an agency, we've been working to strengthen our defenses, and working to help taxpayers. These efforts include accepting digital signatures and improving our online platforms to give people protected access to their tax information." Types of acceptable electronic signatures The IRS will accept a wide range of electronic signatures. An electronic signature is a way to get approval on electronic documents. It can be in many forms and created by many technologies. Acceptable electronic signature methods include: [*]A typed name on a signature block,[*]A scanned or digitized image of a handwritten signature that's attached to an electronic record,[*]A handwritten signature input onto an electronic signature pad,[*]A handwritten signature, mark or command input on a display screen with a stylus device or[*]A signature created by a third-party software. The IRS doesn't specify what technology a taxpayer must use to capture an electronic signature. The IRS will accept images of signatures (scanned or photographed) including common file types supported by Microsoft 365 such as .tiff, .jpg, .jpeg, .pdf, Microsoft Office suite or Zip. The IRS allows taxpayers and representatives to use electronic or digital signatures on certain paper forms which they cannot file using IRS e-file. The forms are available at IRS.gov and through tax professional's software products. Online accounts and added features A new feature, added this year, gives 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 Authorization (TIA). 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 are already 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 sign in to their Online Account using their IRS username or ID.me account. The IRS unveiled an improved identity verification and sign-in process using ID.me that enables more people to securely access and use IRS online tools and applications. This new process also applies to Tax Pro Account. The Security Summit partners remind all tax professionals to review their security measures. IRS Publication 4557, Safeguarding Taxpayer Data PDF, provides tax pros with a starting point for basic steps to protect clients. In addition to the required information security plan, tax pros should also consider an emergency response plan should they experience a breach and data theft. This time-saving step should include contact information for the IRS Stakeholder Liaisons, who are the first point of contact for data theft reporting to the IRS and to the states. IRS Publication 5293, Data Security Resource Guide for Tax Professionals PDF, provides a compilation of data theft information available on IRS.gov, including the reporting processes. The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is part of a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details. Also, check out the most recent A Closer Look column on National Tax Security Awareness Week. Source link
lastpost: nearmetips@ 昨天 08:10 135 0 昨天 08:10 预览
National Tax Security Awareness Week, Day 5: Security Summit partners remind bus New
IR-2021-241, December 3, 2021 WASHINGTON — The Internal Revenue Service, state tax agencies and the nation's tax industry urged businesses to be alert to cyberattacks aimed at gaining access to business data and customer information and be aware of steps to help them on tax-related issues related to identity theft. The partners, operating cooperatively as the  Security Summit  to fight identity theft, marked the final day of National Tax Security Awareness Week with a warning to businesses to use the strongest measures possible to protect their data and systems. "Businesses, just like individuals and tax pros, need to stay alert," said IRS Commissioner Chuck Rettig. "Thieves may steal enough information to file a business tax return or use other scams that involve the company or its employees." More than 70% of cyberattacks are aimed at businesses with 100 or fewer employees. Con artists can target credit card or payment information, the business identity information or employee identity information. Businesses are encouraged to follow best practices from the Federal Trade Commission including: [*]Set security software to update automatically,[*]Back up important files,[*]Require strong passwords for all devices,[*]Encrypt devices and[*]Use multi-factor authentication. More information is available at FTC's Cybersecurity for Small Businesses. Businesses should especially be alert to any COVID-19 or tax-related phishing email scams that attempt to trick employees into opening embedded links or attachments. IRS related scams may be sent to [email protected] Starting late last year, the IRS began masking sensitive information from business tax transcripts, the summary of corporate tax returns, to help prevent thieves from obtaining identifiable information that would allow them to file fake business tax returns. Only financial entries are fully visible. All other information has varying masking rules. For example, only the first four letters of each first and last name – of individuals and businesses – will display. Only the last four digits of the Employer Identification Number will be visible. The IRS also has the Form 14039-B, Business Identity Theft Affidavit PDF, that will allow companies to proactively report possible identity theft to the IRS when, for example, an e-filed tax return is rejected. Businesses should file the Form 14039-B if it receives a: [*]Rejection notice for an electronically filed return because a return already is on file for that same period.[*]Notice about a tax return that the entity didn't file.[*]Notice about Forms W-2 filed with the Social Security Administration that the entity didn't file.[*]Notice of a balance due that is not owed. This form will enable the IRS to respond to the business much faster than in the past and work to resolve issues created by a fraudulent tax return. Businesses should not use the form if they experience a data breach but see no tax-related impact. For more information, see Identity Theft Central's Business section. Although various tax scams can come and go, all employers should remain alert to Form W-2 theft schemes. In the most common version, a thief poses as a high-ranking company executive who emails payroll employees and asks for a list of employees and their W-2s. Businesses often don't know they've been scammed until an employee reports a fraudulent tax return has been filed. There is a special reporting procedure for employers who experience the W-2 scam. It also may be found at Identity Theft Central's Business section. Finally, Security Summit partners urge businesses to keep their EIN application information current. Changes of address or responsible party may be reported using Form 8822-B. Reminder: Changes in the responsible party must be reported to the IRS within 60 days. Current information can help the IRS find a point of contact to resolve identity theft and other issues. The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is the final installment in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details. Also, check out the most recent A Closer Look column on National Tax Security Awareness Week. Source link
lastpost: nearmetips@ 昨天 08:10 86 0 昨天 08:10 预览
National Tax Security Awareness Week, Day 4: Security Summit warns tax pros that New
IR-2021-239, December 2, 2021 WASHINGTON — The Internal Revenue Service, state tax agencies and the nation's tax industry today warned tax professionals that they face additional security risks from cybercriminals seeking to use the pandemic and phishing scams to steal sensitive client information. The partners, working together as the  Security Summit , urged tax pros to remain focused on security issues and ensure they follow important steps to safeguard their information, including using multi-factor authentication and using a Virtual Private Network to guard against data loss. And Summit partners continued to remind tax pros, both large and small, that they are required to have a security plan in place. This is part of the National Tax Security Awareness Week. Now in its sixth year, the initiative aims to heighten awareness about identity theft and data security measures among taxpayers, businesses, and tax professionals. This effort is particularly important right now as the 2022 tax filing season approaches, and identity thieves continue trying to steal sensitive data to file fraudulent tax returns. "We continue to see scams and security risks during this period targeting tax professionals and the sensitive information they hold," said IRS Commissioner Chuck Rettig. "Identity thieves continue to evolve with the times and use the pandemic and other tricks to take advantage of tax pros and gain access to their data. We continue to urge tax preparers to remain aware of this changing threat. Taking important security steps can help avoid a security breach that can be devastating to them and their clients." As the IRS and Security Summit partners took important steps to strengthen defenses against cybercriminals, identity thieves increasingly turned to tax professionals, targeting their offices and systems. Data thefts from tax professionals can provide valuable information to thieves trying to file fraudulent tax returns. The Summit partners remind tax professionals to review their security measures. IRS Publication 4557, Safeguarding Taxpayer Data PDF, provides tax professionals with a starting point for basic steps to protect clients. The Security Summit also created the "Taxes-Security-Together" Checklist to help tax professionals identify the basic steps they should take. As more tax preparers work from home or remote locations because of COVID-19, these measures are even more critical for securing tax data. Basic protections - the "Security Six" measures These easy steps can make a big difference, both for tax pros and taxpayers: [*]Use anti-virus software and set it for automatic updates to keep systems secure. This includes all digital products, computers and mobile phones.[*]Use firewalls. Firewalls help shield computers from outside attacks but cannot protect systems in cases where users accidentally download malware, for example, from phishing email scams.[*]Use multi-factor authentication to protect all online accounts, especially tax products, cloud software providers, email providers and social media.[*]Back up sensitive files, especially client data, to secure external sources, such as external hard drive or cloud storage.[*]Encrypt data. Tax professionals should consider drive encryption products for full-drive encryption. This will encrypt all data.[*]Use a Virtual Private Network (VPN) product. As more practitioners work remotely during the pandemic, a VPN is critical for secure connections.Use multi-factor authentication to protect tax accounts In 2021, all online tax preparation products for tax professionals included an option for using multi-factor authentication. The Security Summit urges all tax professionals to use this option as the 2022 filing season approaches. Practitioners can download to their mobile phones readily available authentication apps offered through Google Play or the Apple Store. These apps will generate a security code. Codes also may be sent to preparer's email or text, but the IRS notes those are not as secure as the authentication apps. Search for "Authentication apps" in a search engine to learn more. Use virtual private networks to protect remote sites A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the Internet and the company network. As teleworking or working from home continues during COVID-19, VPNs are critical to protecting and securing internet connections. Failing to use VPNs can add risks to remote takeovers by cyberthieves, giving criminals access to the tax professional's entire office network simply by accessing an employee's remote internet. Tax professionals should seek out cybersecurity experts whenever possible. Practitioners can also search for "Best VPNs" to find a legitimate vendor, or major technology sites often provide lists of top services. Remember, never click on a "pop-up" ad that's marketing a security product. Those generally are scams. Avoid phishing scams, including attempts to gain EFINs Phishing emails generally have an urgent message, such as "your account password expired." They direct users to an official-looking link or attachment. But the link may take users to a fake site made to appear like a trusted source, where it requests a username and password. Or, the attachment may contain malware, which secretly downloads software that tracks keystrokes and allows thieves to eventually steal all the tax pro's passwords. Remember, scam emails can target tax pros by seeking EFIN information. One scam example says it's from "IRS Tax E-Filing" and carries the subject line "Verifying your EFIN before e-filing." The IRS warns tax pros not to take any of the steps outlined in these types of email, especially responding to the email. The body of the bogus email states: In order to help protect both you and your clients from unauthorized/fraudulent activities, the IRS requires that you verify all authorized e-file originators prior to transmitting returns through our system. That means we need your EFIN (e-file identification number) verification and Driver's license before you e-file. Please have a current PDF copy or image of your EFIN acceptance letter (5880C Letter dated within the last 12 months) or a copy of your IRS EFIN Application Summary, found at your e-Services account at IRS.gov, and Front and Back of Driver's License emailed in order to complete the verification process. Email: (fake email address) If your EFIN is not verified by our system, your ability to e-file will be disabled until you provide documentation showing your credentials are in good standing to e-file with the IRS. © 2021 EFILE. All rights reserved. Trademarks 2800 E. Commerce Center Place, Tucson, AZ 85706   Tax professionals who received the scam should save the email as a file and then send it as an attachment to [email protected] They also should notify the Treasury Inspector General for Tax Administration to report the IRS impersonation scam. Both TIGTA and the IRS Criminal Investigation division are aware of the scam. Like all phishing email scams, it attempts to bait the receiver to take action (opening a link or attachment) with a consequence for failing to do so (disabling the account). The links or attachment may be set up to steal information or to download malware onto the tax professional's computer. In this case, the tax preparers are being asked to email documents that would disclose their identities and EFINs to the thieves. The thieves can use this information to file fraudulent returns by impersonating the tax professional. Tax professionals also should be aware of other common phishing scams that seek EFINs, Preparer Tax Identification Numbers (PTINs) or e-Services usernames and passwords. Some thieves also pose as potential clients, an especially effective scam currently because there are so many remote transactions during the pandemic. The thief may interact repeatedly with a tax professional and then send an email with an attachment that claims to include their tax information. The attachment may contain malware that allows the thief to track keystrokes and eventually steal all passwords or take over control of the computer systems. Some phishing scams are ransomware schemes in which the thief gains control of the tax professionals' computer systems and holds the data hostage until a ransom is paid. The Federal Bureau of Investigation (FBI) has warned against paying a ransom because thieves often leave the data encrypted. The need for a security plan and data theft plan The IRS and Security Summit partners remind tax professionals that federal law requires them to have a written information security plan. In addition to the required information security plan, tax pros also should consider an emergency response plan should they experience a breach and data theft. This time-saving step should include contact information for the IRS Stakeholder Liaisons, who are the first point of contact for data theft reporting to the IRS and to the states. IRS Publication 5293, Data Security Resource Guide for Tax Professionals PDF, provides a compilation of data theft information available on IRS.gov, including the reporting processes. The IRS, state tax agencies, the private sector tax industry - including tax professionals - work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is the fourth in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details. Also, check out the most recent A Closer Look column on National Tax Security Awareness Week. Source link
lastpost: nearmetips@ 前天 08:10 41 0 前天 08:10 预览
National Tax Security Awareness Week, Day 2: Giving Tuesday reminder that scamme New
IR-2021-237, November 30, 2021 WASHINGTON — The Internal Revenue Service and Security Summit partners today warned taxpayers to be wary of fake charities used by scammers to get money as well as sensitive financial and personal information from victims. Today being Giving Tuesday marks a special day as the holidays approach and people give to their favorite causes through charitable organizations. Scammers can take advantage of this by setting up fake charities to trick unsuspecting donors into providing not only money, but also their sensitive information. The Security Summit –– a coalition of state tax agencies, the nation's tax community and the IRS –– urged people to make sure they are giving to a legitimate charity. This can help protect taxpayer's personal and financial data and help prevent tax-related identity theft. Donors should always check to make sure they are giving to a legitimate charity and can easily do so by using a special IRS tool: the Tax Exempt Organization Search Tool. This is Day 2 of National Tax Security Awareness Week, now in its sixth year. The IRS, state tax agencies and the nation's tax industry –– working together as the Security Summit –– are providing tips this week to help protect people against identity theft as well as help safeguard sensitive tax information that criminals can use to try filing fake tax returns and obtaining refunds. The special week includes special informational graphics and social media efforts on platforms including Twitter and Instagram through @IRSnews and #TaxSecurity. The combination of the holiday shopping season, the upcoming tax season and the pandemic create additional opportunities for criminals to steal sensitive information. People should take extra care while shopping online or viewing emails and texts. The Summit partners remind taxpayers to be on the lookout for scammers and identity thieves who set up fake organizations to take advantage of the public's generosity. Scammers take advantage of tragedies and disasters. Scams requesting donations for disaster relief efforts are especially common over the phone. Taxpayers should always check out a charity before they donate, and they should not feel pressured to give immediately. Tips to help taxpayers avoid fake charity scams: [*]Individuals should never let any caller pressure them. A legitimate charity will be happy to get a donation at any time, so there's no rush. Donors are encouraged to take time to do their own research.[*]Confirm the charity is real. Potential donors should ask the fundraiser for the charity's exact name, website and mailing address so they can confirm it later. Some dishonest telemarketers use names that sound like well-known charities to confuse people.[*]Be careful about how a donation is made. Taxpayers shouldn't work with charities that ask for donations by giving numbers from a gift card or by wiring money. That's a scam. It's safest to pay by credit card or check –– and only after researching the charity. Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return by reducing the amount of their taxable income. However, to receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the IRS Tax Exempt Organization Search tool. The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is part of a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details. Source link
lastpost: nearmetips@ 4 天前 138 0 4 天前 预览
Taxpayer alert as holidays, tax season approach: Watch out for scams, protect fi New
IR-2021-236, November 29, 2021 IRS YouTube Video: [*]Security Measures Protect Against Tax-Related Identity Theft WASHINGTON — Kicking off a special week, the Internal Revenue Service and the Security Summit partners today warned taxpayers and tax professionals to beware of a dangerous combination of events that can increase their exposure to tax scams or identity theft. The combination of the holiday shopping season, the upcoming tax season and the pandemic create additional opportunities for criminals to steal sensitive personal or finance information. People should take extra care while shopping online or viewing emails and texts. The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit – mark today's start of the 6th annual National Tax Security Awareness Week with tips on basic safeguards everyone should take. These can help protect against identity theft as well as help safeguard sensitive tax information that criminals can use to try filing fake tax returns and obtaining refunds. "Don't let this be the most wonderful time of the year for identity thieves," said IRS Commissioner Chuck Rettig. "The approach of the holidays and tax season increases risk for taxpayers and opportunities for criminals. We urge people to be extra careful with their personal and financial information during this period while shopping online or getting suspicious emails or text. Taking a few simple steps can keep people from becoming victims of identity theft and protect their sensitive personal information needed for tax returns and refunds." Since 2015, the IRS and Security Summit partners have taken important steps to protect taxpayers and the nation's tax professionals from tax-related identity theft. But progress in this area led identity thieves to evolve their tactics, trying to obtain sensitive information from taxpayers and tax professionals to help prepare fraudulent tax returns. Taxpayers can help in this fight by protecting their financial and tax information. Summit partners continue to highlight safety steps in the "Taxes.Security.Together" effort. As part of that effort, National Tax Security Awareness Week is designed to help share information with taxpayers and tax professionals during this critical period. The special week includes special informational graphics and social media efforts on platforms including Twitter and Instagram through @IRSnews and #TaxSecurity. A special emphasis for this year on social media will be focusing tax security awareness on younger and older Americans. Even if someone doesn't file a tax return, their online interactions can lead to scam artists obtaining sensitive information and using it to try obtaining a refund. 10 key steps to protect sensitive information: To help taxpayers and tax professionals, the Security Summit offers 10 basic steps everyone should remember during the holidays and as the 2022 tax season approaches: [*]Don't forget to use security software for computers, tablets and mobile phones – and keep it updated. Protect electronic devices of family members, especially teens and young children.[*]Make sure anti-virus software for computers has a feature to stop malware, and there is a firewall enabled that can prevent intrusions.[*]Phishing scams – like imposter emails, calls and texts -- are the No. 1 way thieves steal personal data. Don't open links or attachments on suspicious emails. This year, fraud scams related to COVID-19, Economic Impact Payments and other tax law changes are common.[*]Use strong and unique passwords for online accounts. Use a phrase or series of words that can be easily remembered or use a password manager.[*]Use multi-factor authentication whenever possible. Many email providers and social media sites offer this feature. It helps prevent thieves from easily hacking accounts.[*]Shop at sites where the web address begins with "https" – the "s" is for secure communications over the computer network. Also, look for the "padlock" icon in the browser window.[*]Don't shop on unsecured public Wi-Fi in places like a mall. Remember, thieves can eavesdrop.[*]At home, secure home Wi-Fis with a password. With more homes connected to the web, secured systems become more important, from wireless printers, wireless door locks to wireless thermometers. These can be access points for identity thieves.[*]Back up files on computers and mobile phones. A cloud service or an external hard drive can be used to copy information from computers or phones – providing an important place to recover financial or tax data.[*]Working from home? Consider creating a virtual private network (VPN) to securely connect to your workplace.Other common warning signs; additional places for information The IRS and Summit partners continue to see identity thieves trying to look like government agencies and others in the tax community by emailing or texting about tax refunds, stimulus payments or other items. Remember, the IRS will not call or send unexpected texts or emails about things like refunds. More information about these common scams is available at IRS Tax Tip: Common tax scams and tips to help taxpayers avoid them. The IRS and Security Summit partners are sharing YouTube videos on security steps for taxpayers. The videos can be viewed or downloaded at Easy Steps to Protect Your Computer and Phone and Here's How to Avoid IRS Text Message Scams. Employers also can share Publication 4524, Security Awareness for Taxpayers PDF, with their employees and customers while tax professionals can share with clients. In addition, the Summit partners remind people these security measures include mobile phones – an area that people sometimes can overlook. Thieves have become more adept at compromising mobile phones. Phone users also are more prone to open a scam email from their phone than from their computer. Taxpayers can check out security recommendations for their specific mobile phone by reviewing the Federal Communications Commission's Smartphone Security Checker. Since phones are used for shopping and even for doing taxes, remember to make sure phones and tablets are just as secure as computers. During the pandemic, there continue to be numerous scams related to COVID-19. These can be attempts to gain sensitive personal or financial information. The Federal Trade Commission also has issued alerts; consumers can keep atop the latest scam information and report COVID-related scams. The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is the first in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details. Source link
lastpost: nearmetips@ 5 天前 141 0 5 天前 预览
IRS: Tax relief now available to Ida victims in New York and New Jersey; Oct. 15 New
IR-2021-179, September 8, 2021 WASHINGTON — Victims of Hurricane Ida in parts of New York and New Jersey now have until January 3, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. This is comparable to relief provided last week to Ida victims in Louisiana. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA)  as qualifying for individual or public assistance. In New York, this currently includes Bronx, Kings, New York, Queens, Richmond and Westchester counties, and in New Jersey, it includes Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset counties. Taxpayers in Ida-impacted localities subsequently designated by FEMA in other parts of these states will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. “During this difficult time, the IRS stands ready to help victims of Hurricane Ida,” said IRS Commissioner Chuck Rettig. “We want people affected by this devastating hurricane focused on their safety and recovery for themselves and their families. To provide assistance now and in the weeks ahead, we have a variety of different types of relief available to help people and businesses affected by this disaster.” The tax relief postpones various tax filing and payment deadlines that occurred starting on September 1, 2021. As a result, affected individuals and businesses will have until January 3, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2020 return due to run out on October 15, 2021, will now have until January 3, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief. The January 3, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2021, and the quarterly payroll and excise tax returns normally due on November 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15, 2021. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on September 15, 2021 and calendar-year corporations whose 2020 extensions run out on October 15, 2021. In addition, penalties on payroll and excise tax deposits due on or after September 1 and before September 16, will be abated as long as the deposits are made by September 16, 2021. The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated. In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year (2020). Be sure to write the FEMA declaration number – 4614 for New Jersey or 4615 for New York or  − on any return claiming a loss. See Publication 547 for details. The tax relief is part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov. Source link
lastpost: nearmetips@ 7 天前 100 0 7 天前 预览
COVID relief: IRS helps employers wanting to rehire retirees or retain employees New
IR-2021-208, October 22, 2021 WASHINGTON — To help address COVID-related labor shortages, the Internal Revenue Service today reminded employers that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan's normal retirement age. With the COVID-19 pandemic, many employers, including governmental employers (such as public school districts), are looking for ways to encourage retirees to return to the workforce to fill open positions and experienced employees to stay on the job. The IRS is providing help to these employers in two new frequently asked questions (FAQs), designed to offer technical guidance to public and private employers who sponsor pension plans for their employees. The FAQs highlight existing ways that employers can meet their employment objectives and still comply with the plan qualification rules. Under the FAQs, an employer can generally choose to address unforeseen hiring needs by rehiring former employees, even if those employees have already retired and begun receiving pension benefit payments. Also, if permitted under plan terms, those employees may continue receiving the benefits after they are rehired. Moreover, an employer can generally choose to make retirement distributions available to existing employees who have reached age 59 ½ or the plan's normal retirement age. This may assist in the retention of employees eligible for retirement. Further details can be found in the two new FAQs now posted on IRS.gov. Also, next Wednesday and Thursday (October 27 and 28) from 4-5 p.m. ET, the Department of the Treasury and the Department of Education will be holding webinars for education leaders and other stakeholders to discuss approaches to addressing school staff labor shortages, including a discussion about these new FAQs. Webinars: Webinar 1: Teacher and substitute teacher shortages [*]October 27, 2021, 4 p.m. Eastern Time[*]Participants should pre-registerWebinar 2: Staff shortages, such as school bus drivers and food service workers [*]October 28, 2021 at 4 p.m. Eastern Time[*]Participants should pre-registerSource link
lastpost: nearmetips@ 7 天前 208 0 7 天前 预览
IRS, Security Summit partners remind families to make online safety a priority d New
IR-2021-209, October 22, 2021 WASHINGTON — The Internal Revenue Service today reminded families, teens and senior citizens about the continued importance of protecting personal and financial information PDF online. Although the IRS and its Security Summit partners continue making strides in fighting identity theft and fraudulent tax returns, help is needed. The Security Summit works to protect taxpayers from criminals that file fraudulent returns for refunds. The Summit coalition includes representatives of the software industry, tax preparation firms, payroll and tax financial product processors as well as state tax administrators and the IRS, which work together year-round to protect taxpayers. During National Cybersecurity Month, the IRS is asking parents, families and others to be mindful of the pitfalls that can be found by sharing devices at home, shopping online and through navigating various social media platforms. Often, those who are less experienced can put themselves and others at risk by leaving an unnecessary trail of personal information for fraudsters. Staying safe online Here are a few common-sense suggestions that can make a difference for children, teens and other vulnerable groups to potential dangers to protect their personal data: [*]Teach them to recognize and avoid scams. Phishing emails, threatening phone calls and texts from thieves posing as the IRS or legitimate organizations pose ongoing risks. Do not click on links or download attachments from unknown or suspicious emails.[*]Remind them why security is important. Be careful not to reveal too much personal information. Keeping data secure and only providing what is necessary minimizes online exposure to scammers and criminals. Birthdates, addresses, age, financial information such as bank account and Social Security numbers are among things that should not be shared freely.[*]Teach them about public Wi-Fi networks. Connection to Wi-Fi in a mall or coffee shop is convenient but it may not be safe. Hackers and cybercriminals can easily intercept personal information. Always use a virtual private network when connecting to public Wi-Fi.[*]Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Remember, to encrypt sensitive files such as tax records stored on computers. Be sure all family members have comprehensive protection especially if devices are being shared. Use strong, unique passwords for each account. Remember, the IRS does not use text messages or social media to discuss personal tax issues, such as those involving tax refunds, stimulus payments or tax bills. For more information, visit the Tax Scams and Consumer Alerts page on IRS.gov. Additional information about tax scams is also available on IRS social media sites, including YouTube videos. Also see Publication 4524, Security Awareness for Taxpayers PDF. Source link
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Additional Hurricane Ida relief from IRS: Sept. 15, Oct. 15 deadlines, other dat New
IR-2021-210, October 27, 2021 WASHINGTON — Victims of Hurricane Ida in parts of Mississippi now have additional time – until January 3, 2022 – to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Following last week's disaster declaration by the Federal Emergency Management Agency (FEMA), the IRS is offering this expanded relief to those parts of the state newly designated for either individual or public assistance. Previously, the IRS had provided special relief to the entire state of Mississippi, generally postponing various tax-filing and tax-payment deadlines until November 1, 2021. Currently, the expanded relief applies to Amite, Claiborne, Copiah, Covington, Franklin, Georgia, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Pearl River, Pike, Simpson, Walthall, Wayne and Wilkinson counties. Any jurisdiction added to the October 22 FEMA declaration will automatically receive the expanded IRS relief. The deadline remains November 1 for affected taxpayers in other parts of Mississippi. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The new relief postpones various tax filing and payment deadlines that occurred starting on August 28, 2021. As a result, affected individuals and businesses will have until January 3, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2020 return that ran out on October 15, 2021, will now have until January 3, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief. The January 3, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2021, and the quarterly payroll and excise tax returns normally due on November 1, 2021. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions ran out on September 15, 2021 and calendar-year corporations whose 2020 extensions ran out on October 15, 2021. It also applies to calendar-year tax-exempt organizations whose 2020 extensions run out on November 15, 2021. In addition, penalties on payroll and excise tax deposits due on or after August 28, 2021 and before September 13, will be abated as long as the deposits were made by September 13, 2021. The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated. In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year (2020). Be sure to write the FEMA declaration number – EM-3569 associated with the earlier relief or EM-4626 for the new relief − on any return claiming a loss. See Publication 547 for details. The tax relief is part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov. Source link
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Child Tax Credit: Families with income changes must enter them in IRS online por New
IR-2021-211, October 29, 2021 WASHINGTON — On Monday, November 1, the Internal Revenue Service will launch a new feature allowing any family receiving monthly Child Tax Credit payments to update their income using the Child Tax Credit Update Portal (CTC UP), found exclusively on IRS.gov. To help families plan ahead, the IRS also announced today that in late November it will launch a new Spanish-language version of the CTC UP. The IRS urges families to enter any significant income changes by midnight on November 1 in order for them to be reflected in their November payment, scheduled for November 15. If a family is unable to make the changes on November 1, enter them by November 29 so they are reflected in the December payment. Once the update is made, the IRS will adjust the remaining payment amounts to ensure people receive the total advance payment for the year. For married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses' future monthly advance payments of the Child Tax Credit. Income feature right for some  The new income feature can help families make sure they are getting the right amount of advance Child Tax Credit payments during 2021. For that reason, it will be especially useful to any family who wants to raise or lower their monthly payments because their 2021 income has risen or fallen substantially, compared to 2020. In many, but not all, cases a big income swing can either raise or lower a family's monthly payments. Normally, this means that small changes in income will not impact the payment amount and need not be entered into the CTC UP. Any change to the monthly payment amount will be reflected in both the November 15 and December 15 payments, but only if a person completes their updated income request before midnight Eastern Time on Monday, November 1. Changes made after that date, but before midnight on November 29, will only impact the December 15 payment, which is the last scheduled monthly payment for 2021. The IRS will adjust the payment amount to reflect these changes and ensure people receive their total advance payment for the year of up to $1,800 for each child under age 6 and up to $1,500 for each child ages 6 through 17. Who qualifies for a bigger payment In some cases, families who are currently receiving monthly payments that are below the maximum may qualify to have their payments increased. This could happen if, for example, they experienced job loss during 2021, or for some other reason are receiving substantially less income this year. If the reduction in income is large enough, reporting that change now may increase the amount of their advance CTC payments for the rest of this year. For any family already receiving the maximum payment, a drop in income will not increase the payment amount. Normally, the maximum CTC payment is $300 per month for each qualifying child, under the age of 6, and $250 per month for each child, ages 6 to 17. Most families are receiving half of the total CTC through monthly payments. This means that any changes entered into the CTC UP will increase or decrease their monthly payments to ensure they receive half of their total expected credit before the end of 2021. They will claim the remaining portion on their 2021 tax return. Who should have their payments reduced Any family whose income rose substantially in 2021 should consider having their payments reduced. This is especially true if they are now receiving the maximum monthly payment, and they expect to qualify for less than the full credit when they file their 2021 federal income tax return. For more information on calculating the CTC, see Topic C of the agency's Frequently Asked Questions. In particular, where a family qualifies to receive less than the full amount, see QC 4 &  QC 5. Using the portal to report income changes Only families who are already eligible for and receiving advance CTC payments based on their 2020 tax return can use the CTC UP to update their income. Note that someone who filed a joint return for 2020 can only update their income if they plan to file a joint return for 2021 with the same spouse. IRS representatives cannot process income changes over the phone or at Taxpayer Assistance Centers. After an income update is completed, the Update Portal will acknowledge a change was made but will not display the change. Likewise, IRS representatives won't be able to confirm that an update was made. Low-income families can still sign up It's not too late for low-income families to sign up for advance CTC payments. The IRS urged any family not already receiving payments who normally isn't required to file a tax return to explore the tools available through IRS.gov. These tools can help determine eligibility for the advance CTC or help them file a simplified tax return to sign up for these payments as well as Economic Impact Payments and the Recovery Rebate Credit. The deadline to sign up is November 15, 2021. People can get these benefits, even if they don't work and even if they receive no income. Families who sign up will normally receive half of their total Child Tax Credit on December 15. This means a payment of up to $1,800 for each child, under 6, and up to $1,500 for each child, ages 6 to 17. Get ready to file next year Early in 2022, families will receive Letter 6419 documenting any advance payments issued to them during 2021 and the number of qualifying children used to calculate the advance payments. This letter can help them accurately reconcile the advance CTC payments they have received and claim any remaining portion of the CTC when completing their 2021 federal income tax return next year. The income change feature joins a growing set of services available through CTC UP. Available only on IRS.gov, the portal already allows families to verify their eligibility for the payments and then, if they choose to: [*]Switch from receiving a paper check to direct deposit;[*]Change the account where their payment is direct deposited;[*]Update their address or[*]Stop monthly payments for the rest of 2021.Latest information available on IRS.gov 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. It's at IRS.gov/childtaxcredit2021. The agency encourages partners and community groups to share information and use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up. People can check their eligibility by using the advance Child Tax Credit Eligibility Assistant. The webpage features a set of frequently asked questions and a user guide for the Child Tax Credit Update Portal (Publication 5549) PDF. It also provides direct links to the portal, as well as two other online tools – the Non-filer Sign up Tool and the Child Tax Credit Eligibility Assistant – and other useful resources. Source link
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IRS issues another 430,000 refunds for adjustments related to unemployment compe New
IR-2021-212, November 1, 2021 WASHINGTON — The Internal Revenue Service recently sent approximately 430,000 refunds totaling more than $510 million to taxpayers who paid taxes on unemployment compensation excluded from income for tax year 2020. The IRS efforts to correct unemployment compensation overpayments will help most of the affected taxpayers avoid filing an amended tax return. So far, the IRS has identified over 16 million taxpayers who may be eligible for the adjustment. Some will receive refunds, while others will have the overpayment applied to taxes due or other debts. The American Rescue Plan Act (ARPA) of 2021, enacted in March, excluded the first $10,200 in unemployment compensation per taxpayer paid in 2020. The $10,200 is the amount excluded when calculating one's adjusted gross income (AGI); it is not the amount of refund. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000. Earlier this year, the IRS began its review of tax returns filed prior to the enactment of ARPA to identify the excludible unemployment compensation. To date, the IRS has issued over 11.7 million refunds totaling $14.4 billion. This latest batch of corrections affected over 519,000 returns, with 430,000 taxpayers receiving refunds averaging about $1,189. The review of returns and processing corrections is nearly complete as the IRS already reviewed the simplest returns and is now concentrating on more complex returns. The IRS plans to issue another batch of corrections before the end of the year. Impacted taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made (refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment. The IRS also is making corrections for Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Credit, Premium Tax Credit and Recovery Rebate Credit amounts affected by the exclusion. Most taxpayers need not take any action and there is no need to call the IRS. The IRS will be sending notices in November and December to individuals who did not claim the Earned Income Tax Credit or the Additional Child Tax Credit but may now be eligible for them. These notices are not confirmation that they are eligible for these credits and will require a response from the taxpayer if eligible rather than filing an amended return. For taxpayers who become eligible for other credits and/or deductions after the exclusion is calculated but not claimed on their original return, they must file a Form 1040-X, Amended U.S. Individual Income Tax Return, to claim any new benefits. See the 2020 Unemployment Compensation Exclusion FAQs for more information, including details on filing an amended return. Source link
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More Ida relief from IRS: Sept. 15, Oct. 15 deadlines, other dates extended to J New
IR-2021-213, November 3, 2021 WASHINGTON — Victims of Hurricane Ida in parts of Connecticut now have until January 3, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Following the October 30 disaster declaration by the Federal Emergency Management Agency (FEMA), the IRS is offering this relief to those parts of the state designated for either individual or public assistance. Currently, this includes Fairfield and New London counties, including the Mashantucket Pequot Tribal Nation and the Mohegan Tribal Nation. Any jurisdiction added to the FEMA declaration will automatically receive the IRS relief. The current list of eligible localities is always available on the disaster relief page. This relief postpones various tax filing and payment deadlines that occurred starting on September 1, 2021. As a result, affected individuals and businesses will have until January 3, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2020 return that ran out on October 15, 2021, will now have until January 3, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief. The January 3, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2021, and the quarterly payroll and excise tax returns normally due on November 1, 2021. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions ran out on September 15, 2021 and calendar-year corporations whose 2020 extensions ran out on October 15, 2021. It also applies to calendar-year tax-exempt organizations whose 2020 extensions run out on November 15, 2021. In addition, penalties on payroll and excise tax deposits due on or after September 1, 2021 and before September 16, will be abated as long as the deposits were made by September 16, 2021. The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated. In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year (2020). Be sure to write the FEMA declaration number – DR-4629 −on any return claiming a loss. See Publication 547 for details. The tax relief is part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov. Source link
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Year-end giving reminder: Special tax deduction helps most people give up to $60 New
IR-2021-214, November 3, 2021 WASHINGTON — The Internal Revenue Service today reminded taxpayers that a special tax provision will allow more Americans to easily deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return. Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But a temporary law change now permits them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify. Under this provision, individual tax filers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021. The maximum deduction is increased to $600 for married individuals filing joint returns. Included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, a more limited version of this temporary tax benefit originally only applied to tax-year 2020. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted last December, generally extended it through the end of 2021. Cash contributions include those made by check, credit card or debit card as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization. Cash contributions don't include the value of volunteer services, securities, household items or other property. The IRS reminds taxpayers to make sure they're donating to a recognized charity. To receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the IRS Tax Exempt Organization Search tool. Cash contributions to most charitable organizations qualify. But contributions made either to supporting organizations or to establish or maintain a donor advised fund do not. Contributions carried forward from prior years do not qualify, nor do contributions to most private foundations and most cash contributions to charitable remainder trusts. In general, a donor-advised fund is a fund or account maintained by a charity in which a donor can, because of being a donor, advise the fund on how to distribute or invest amounts contributed by the donor and held in the fund. A supporting organization is a charity that carries out its exempt purposes by supporting other exempt organizations, usually other public charities. Keep good records Special recordkeeping rules apply to any taxpayer claiming a charitable contribution deduction. Usually, this includes obtaining an acknowledgment letter from the charity before filing a return and retaining a cancelled check or credit card receipt for contributions of cash. For details on the recordkeeping rules for substantiating gifts to charity, see Publication 526, Charitable Contributions, available on IRS.gov. Remind families about the Child Tax Credit Besides the special charitable contribution deduction, the IRS also encourages employers to help get the word out about the advance payments of the Child Tax Credit because they have direct access to many employees and individuals who receive this credit. In particular, remind low-income workers, especially those who don't normally file returns, that the deadline for signing up for these payments is now November 15, 2021. More information on the advance Child Tax Credit is available on IRS.gov. For more information about other coronavirus-related tax relief, visit IRS.gov/coronavirus. Source link
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IRS releases reporting guidance for partnership interests held in connection wit New
IR-2021-215, November 3, 2021 WASHINGTON — The Internal Revenue Service today posted detailed reporting directions for certain passthrough entities and taxpayers reporting of partnership interests held in connection with the performance of services, often referred to as "carried interests," in the form of frequently asked questions (FAQs). The FAQs contain sample worksheets that certain passthrough entities and taxpayers may be required to use in reporting "carried interests," partnership interests held in connection with the performance of services for tax returns, filed after December 31, 2021 in which a passthrough entity applies the final regulations. In addition, the FAQs contain additional instructions for certain passthrough entities and taxpayers who though not required to file the sample worksheets must provide similar information and must disclose whether the information was determined under the proposed regulations or another method for tax returns filed after December 31, 2021 for a taxable year beginning before January 19, 2021. A 2017 tax law change recharacterized certain net long-term capital gains of a partnership that holds one or more applicable partnership interest (APIs) as short-term capital gains. The provision generally requires that a capital asset be held for more than three years for capital gains allocated with respect to any API to be treated as a long-term capital gain. The purpose of the FAQs is to provide guidance relating to both Passthrough Entity filing and reporting requirements and Owner Taxpayer filing requirements in accordance with Department of the Treasury regulations revised in TD 9945 PDF. This updated reporting guidance will also be added to the next revision of Publication 541, Partnerships PDF, which will be released in 2022. Source link
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IRS announces 401(k) limit increases to $20,500 New
IR-2021-216, November 4, 2021 WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020. The IRS today also issued technical guidance regarding all of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2022 in Notice 2021-61 PDF, posted today on IRS.gov. Highlights of changes for 2022 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $20,500, up from $19,500. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the Saver's Credit all increased for 2022. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2022: [*]For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to $68,000 to $78,000, up from $66,000 to $76,000.[*]For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to $109,000 to $129,000, up from $105,000 to $125,000.[*]For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to $204,000 to $214,000, up from $198,000 to $208,000.[*]For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000. The income phase-out range for taxpayers making contributions to a Roth IRA is increased to $129,000 to $144,000 for singles and heads of household, up from $125,000 to $140,000. For married couples filing jointly, the income phase-out range is increased to $204,000 to $214,000, up from $198,000 to $208,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000. The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $68,000 for married couples filing jointly, up from $66,000; $51,000 for heads of household, up from $49,500; and $34,000 for singles and married individuals filing separately, up from $33,000. The amount individuals can contribute to their SIMPLE retirement accounts is increased to $14,000, up from $13,500. Key employee contribution limits that remain unchanged The limit on annual contributions to an IRA remains unchanged at $6,000. The IRA catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan remains unchanged at $6,500. Therefore, participants in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan who are 50 and older can contribute up to $27,000, starting in 2022. The catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans remains unchanged at $3,000. Details on these and other retirement-related cost-of-living adjustments for 2022 are in Notice 2021-61 PDF, available on IRS.gov. Source link
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Get ready for taxes: Easy steps taxpayers can take now to make tax filing easier New
IR-2021-217, November 8, 2021 WASHINGTON — The Internal Revenue Service today encouraged taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, to take important steps this fall to help them file their federal tax returns in 2022. Planning ahead can help people file an accurate return and avoid processing delays that can slow tax refunds. This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to prepare to file a 2021 tax return next year. Gather and organize tax records Organized tax records make preparing a complete and accurate tax return easier. It helps avoid errors that lead to processing and refund delays. Individuals should have all their tax information available before filing to ensure the return is complete and accurate. They should notify the IRS if their address changes and notify the Social Security Administration of a legal name change. Remember, most income is taxable. Recordkeeping for individuals includes: [*]Forms W-2 from employer(s)[*]Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan[*]Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy[*]Form 1099-INT for interest received[*]Other income documents and records of virtual currency transactions Income documents can help individuals determine if they're eligible for deductions or credits. Additionally, people who need to reconcile their advance payments of the Child Tax Credit and Premium Tax Credit will need their related 2021 information. Those who received third Economic Impact Payments and think they qualify for an additional amount will need their stimulus payment and plus-up amounts to figure and claim the 2021 Recovery Rebate Credit. Taxpayers should also keep end of year documents including:[*]Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance Child Tax Credit payments[*]Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit[*]Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverageOnline Account securely provides tax account information on IRS.gov; helps provide important filing information Taxpayers who access Online Account can securely gain entry to the Child Tax Credit Update Portal to see their payment dates and amounts. Taxpayers will need this information to reconcile their advance Child Tax Credit payments with the Child Tax Credit they can claim when they file their 2021 tax returns. Eligible individuals claiming a 2021 Recovery Rebate Credit can log in to their online account to see their Economic Impact Payment amounts so they can accurately claim the credit when they file. Individuals who have not set up an Online Account yet should act soon to create an account. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers who have an Online Account may: [*]View the amounts of their Economic Impact Payments[*]Access Child Tax Credit Update Portal for information about their advance Child Tax Credit payments[*]View key data from your most recent tax return and access additional records and transcripts[*]View details of your payment plan if you have one[*]View 5 years of payment history and any pending or scheduled paymentsTaxpayers should make sure they've withheld enough tax Individuals may want to consider adjusting their withholding if they owed taxes or received a large refund the previous year. Changing withholding can help avoid a tax bill or let individuals keep more money each payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also be reasons to change withholding. Taxpayers might think about completing a new Form W-4, Employee's Withholding Certificate, each year and when personal or financial situations change. People also need to consider estimated tax payments. Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2021 is due on Jan. 18, 2022. Individuals can log in to their Online Account to make a payment online or go to IRS.gov/payments. ITINs need to be renewed only if expired and if needed on a U.S. federal tax return If an Individual Taxpayer Identification Number (ITIN) was not included on a U.S. federal tax return at least once for tax years 2018, 2019 and 2020, the ITIN will expire on Dec. 31, 2021. As a reminder, ITINs with middle digits 70 through 88 have expired. In addition, ITINs with middle digits 90 through 99, IF assigned before 2013, have expired. Individuals who previously submitted a renewal application that was approved, do not need to renew again. Want a faster refund? Getting banked speeds tax refunds with direct deposit Direct deposit gives individuals access to their refund faster than a paper check.Those without a bank account can learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool. Veterans should see the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks. Volunteer to help eligible taxpayers file their returns The IRS and its community partners are preparing for the upcoming filing season and are looking for people around the country to become IRS-certified volunteers. Join the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. VITA/TCE volunteers provide free tax return preparation for eligible taxpayers. With many people experiencing financial changes this year, additional volunteers are needed to assist them. Visit IRS.gov/volunteers to learn more and sign up. After signing up, more information about attending a virtual orientation will be provided. Source link
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IRS updates 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequent New
IR-2021-218, November 9, 2021 WASHINGTON — The Internal Revenue Service today updated frequently-asked-questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit Payments to describe how taxpayers can now provide the IRS an estimate of your 2021 income using the Child Tax Credit Update Portal (CTC UP). These FAQs update PDF the Advance Child Tax Credit Topic A FAQs by adding a new question, question 17 and Topic F FAQs by adding new questions, questions 2 through 6. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. Additional Advance Child Tax Credit information The IRS has created a special Advance Child Tax Credit Payments in 2021 page designed to provide the most up-to-date information about the credit and the advance payments. It's at IRS.gov/childtaxcredit2021. The IRS encourages partners and community groups to share information and use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up. People can check their eligibility by using the Advance Child Tax Credit Eligibility Assistant. The webpage features a set of frequently asked questions. It also provides direct links to the portal, as well as two other online tools – the Non-filer Sign up Tool and the Child Tax Credit Eligibility Assistant – and other useful resources. IRS-FAQ Source link
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IRS provides tax inflation adjustments for tax year 2022 New
IR-2021-219, November 10, 2021 WASHINGTON — The Internal Revenue Service today announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 PDF provides details about these annual adjustments. Highlights of changes in Revenue Procedure 2021-45: The tax year 2022 adjustments described below generally apply to tax returns filed in 2023. The tax items for tax year 2022 of greatest interest to most taxpayers include the following dollar amounts: [*]The standard deduction for married couples filing jointly for tax year 2022 rises to $25,900 up $800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,950 for 2022, up $400, and for heads of households, the standard deduction will be $19,400 for tax year 2022, up $600.  [*]The personal exemption for tax year 2022 remains at 0, as it was for 2021, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act.   [*]Marginal Rates: For tax year 2022, the top tax rate remains 37% for individual single taxpayers with incomes greater than $539,900 ($647,850 for married couples filing jointly). The other rates are: 35%, for incomes over $215,950 ($431,900 for married couples filing jointly); 32% for incomes over $170,050 ($340,100 for married couples filing jointly); 24% for incomes over $89,075 ($178,150 for married couples filing jointly); 22% for incomes over $41,775 ($83,550 for married couples filing jointly); 12% for incomes over $10,275 ($20,550 for married couples filing jointly). The lowest rate is 10% for incomes of single individuals with incomes of $10,275 or less ($20,550 for married couples filing jointly).   [*]For 2022, as in 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.  [*]The Alternative Minimum Tax exemption amount for tax year 2022 is $75,900 and begins to phase out at $539,900 ($118,100 for married couples filing jointly for whom the exemption begins to phase out at $1,079,800). The 2021 exemption amount was $73,600 and began to phase out at $523,600 ($114,600 for married couples filing jointly for whom the exemption began to phase out at $1,047,200).  [*]The tax year 2022 maximum Earned Income Tax Credit amount is $6,935 for qualifying taxpayers who have three or more qualifying children, up from $6,728 for tax year 2021. The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.  [*]For tax year 2022, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $280.  [*]For the taxable years beginning in 2022, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements increases to $2,850. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $570, an increase of $20 from taxable years beginning in 2021.  [*]For tax year 2022, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,450, up $50 from tax year 2021; but not more than $3,700, an increase of $100 from tax year 2021. For self-only coverage, the maximum out-of-pocket expense amount is $4,950, up $150 from 2021. For tax year 2022, for family coverage, the annual deductible is not less than $4,950, up from $4,800 in 2021; however, the deductible cannot be more than $7,400, up $250 from the limit for tax year 2021. For family coverage, the out-of-pocket expense limit is $9,050 for tax year 2022, an increase of $300 from tax year 2021.  [*]The modified adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit provided in § 25A(d)(2) is not adjusted for inflation for taxable years beginning after December 31, 2020. The Lifetime Learning Credit is phased out for taxpayers with modified adjusted gross income in excess of $80,000 ($160,000 for joint returns).  [*]For tax year 2022, the foreign earned income exclusion is $112,000 up from $108,700 for tax year 2021.  [*]Estates of decedents who die during 2022 have a basic exclusion amount of $12,060,000, up from a total of $11,700,000 for estates of decedents who died in 2021.  [*]The annual exclusion for gifts increases to $16,000 for calendar year 2022, up from $15,000 for calendar year 2021.  [*]The maximum credit allowed for adoptions for tax year 2022 is the amount of qualified adoption expenses up to $14,890, up from $14,440 for 2021.More Information [*]News Release IR-2021-216, IRS announces 401(k) limit increases to $20,500.Source link
lastpost: nearmetips@ 7 天前 197 0 7 天前 预览
IRS Financial Report available on IRS.gov New
IR-2021-220, November 10, 2021 WASHINGTON — The Internal Revenue Service published its Financial Report on IRS.gov today. This new report provides the American people with a comprehensive view of the IRS's financial activities as well as the accomplishments of its finance management community. In fiscal year 2021, the IRS managed more than $4.1 trillion in tax revenue, $1.1 trillion in refunds and $658 billion in unpaid assessments, as well as the resources that support its mission. In addition, Congress and both Administrations entrusted the IRS with $2.4 billion in supplemental funding to support the nation's recovery from the COVID-19 pandemic. "The IRS disbursed an unprecedented $1.1 trillion to Americans in fiscal year 2021," said Teresa Hunter, IRS Chief Financial Officer. "To implement legislative requirements resulting in the expedient roll out of Economic Impact Payments, COBRA, Premium Tax Credit changes and the advanced Child Tax Credits, we overcame significant barriers. I'm proud of the finance management community's hard work and dedication," she said. "We strive for excellence in reporting and will continue to ensure taxpayer dollars are managed with integrity and accuracy." For more information see Publication 5456, IRS FY 2021 Financial Report PDF. Source link
lastpost: nearmetips@ 7 天前 81 0 7 天前 预览
IRS updates FAQs for 2020 Unemployment Compensation Exclusion New
IR-2021-221, November 12, 2021 WASHINGTON — The Internal Revenue Service today updated its frequently-asked-questions (FAQs) on 2020 Unemployment Compensation Exclusion. These updated FAQs (FS-2021-14) PDF are: Question 2, Topic D: Amended Return (Form 1040-X)  Questions 8 & 9, Topic G: Receiving a Refund, Letter, or Notice  Question 3, Topic I: Post Unemployment Compensation Exclusion Adjustment. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available. IRS-FAQ Source link
lastpost: nearmetips@ 7 天前 41 0 7 天前 预览

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