From the IRS: "Year-end giving reminder"

The Internal Revenue Service today (11/03/21) 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 (https://www.irs.gov/charities-non-profits/tax-exempt-organization-search).

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 (https://www.irs.gov/forms-pubs/about-publication-526), 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.

From the IRS: "Year-end giving reminder"

New IRS imposter scam targets college students and staff

New IRS imposter scam targets college students and staff by Ari Lazarus, Consumer Education Specialist, FTC If you're a college student, faculty, or staff member, you're going to want to pay attention to this one. IRS imposters are sending phishing emails to people with ".edu" email addresses, saying they have information about your "tax refund payment." What do they really want? Your personal information. Shared from  https://www.consumer.ftc.gov/blog/2021/04/new-irs-imposter-scam-targets-college-students-and-staff?utm_source=govdelivery

New IRS imposter scam targets college students and staff

Federal "Tax Day for individuals extended to May 17"

"The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

"This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," said IRS Commissioner Chuck Rettig. "Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to."

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17."

Additional info from the IRS on the delay and what it means can be found at the IRS page

https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

 

IRS expands help to taxpayers in multiple languages with new forms, communication preferences 

https://www.irs.gov/newsroom/irs-expands-help-to-taxpayers-in-multiple-languages-with-new-forms-communication-preferences

Quick note that the tax extension applies only to Federal taxes. MA has not yet indicated they would go along with the delay.

 

National News: no mail fraud in PA found; check on your IRS stimulus payment; intelligence report highlights terrorists threats

"Postal Service finds no evidence of mail ballot fraud in Pa. case cited by top Republicans"

"U.S. Postal Service investigators found no evidence to support a Pennsylvania postal worker’s claim that his supervisors had tampered with mail-in ballots, according to an inspector general’s report — allegations cited by top Republicans to press baseless claims of fraud in the presidential election."

Continue reading the article online (subscription may be required)

https://www.washingtonpost.com/business/2021/03/17/usps-ballot-fraud-investigation/

 

 "The IRS has sent out 90 million stimulus payments."

"The Internal Revenue Service told financial institutions to expect roughly 90 million direct deposits amounting to $242.2 billion on March 17 in the initial distribution of the American Rescue Plan stimulus payments, according to a banking industry group.

Following the deposits, the IRS mailed an additional 150,000 checks amounting to $442 million, with a pay date of March 19, according to the Independent Community Bankers of America, based on a briefing from the IRS.

“Additional batches of payments will be sent in the coming weeks with the vast majority sent by direct deposit,” the group said in an online update to banking members. “Payments will also be sent through the mail as a check or debit card.” 

• How to check on your status ->  https://www.irs.gov/coronavirus/get-my-payment

Continue reading the article online (subscription may be required)

https://www.washingtonpost.com/business/2021/03/16/irs-stimulus-payment-tracker/

"Racist extremists pose most deadly terrorist threat to US, intelligence report warns"

"Racially motivated extremists pose the most lethal domestic terrorism threats to the US, according to an unclassified intelligence report that warned that the threats could grow this year.

The blunt assessment, in a report released by the Office of the Director of National Intelligence, echoes warnings made by US officials, including the FBI director, Christopher Wray, who testified earlier this month that the threat from domestic violent extremism was “metastasizing” across the country."

• Direct link to report => https://www.dni.gov/files/ODNI/documents/assessments/UnclassSummaryofDVEAssessment-17MAR21.pdf

Continue reading the article online (subscription may be required)

https://www.theguardian.com/us-news/2021/mar/17/racist-extremists-us-domestic-terrorism-intelligence-report

 

IRS: All taxpayers now eligible for Identity Protection PINs

The Internal Revenue Service today expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities.

The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers' personally identifiable information.

"This is a way to, in essence, lock your tax account, and the IP PIN serves as the key to opening that account," said IRS Commissioner Chuck Rettig. "Electronic returns that do not contain the correct IP PIN will be rejected, and paper returns will go through additional scrutiny for fraud."

The IRS launched the IP PIN program nearly a decade ago to protect confirmed identity theft victims from ongoing tax-related fraud. In recent years, the IRS expanded the program to specific states where taxpayers could voluntarily opt into the IP PIN program. Now, the voluntary program is going nationwide.

About the IP PIN Opt-In Program
Here are a few key things to know about the IP PIN Opt-In program:

  -  This is a voluntary program.
  -  You must pass a rigorous identity verification process.
  -  Spouses and dependents are eligible for an IP PIN if they can verify their identities.
  -  An IP PIN is valid for a calendar year.
  -  You must obtain a new IP PIN each filing season.
  -  The online IP PIN tool is offline between November and mid-January each year.
  -  Correct IP PINs must be entered on electronic and paper tax returns to avoid rejections and delays.
  -  Never share your IP PIN with anyone but your trusted tax provider. The IRS will never call, text or email requesting your IP PIN. Beware of scams to steal your IP PIN.
  -  There currently is no opt-out option but the IRS is working on one for 2022.

How to get an IP PIN
Taxpayers who want an IP PIN for 2021 should go to IRS.gov/IPPIN and use the Get an IP PIN tool. This online process will require taxpayers to verify their identities using the Secure Access authentication process if they do not already have an IRS account. See IRS.gov/SecureAccess for what information you need to be successful. There is no need to file a Form 14039, an Identity Theft Affidavit, to opt into the program

Once taxpayers have authenticated their identities, their 2021 IP PIN immediately will be revealed to them. Once in the program, this PIN must be used when prompted by electronic tax returns or entered by hand near the signature line on paper tax returns.

All taxpayers are encouraged to first use the online IP PIN tool to obtain their IP PIN. Taxpayers who cannot verify their identities online do have options.

Taxpayers whose adjusted gross income is $72,000 or less may complete Form 15227, Application for an Identity Protection Personal Identification Number (https://www.irs.gov/pub/irs-pdf/f15227.pdf), and mail or fax to the IRS. An IRS customer service representative will contact the taxpayer and verify their identities by phone. Taxpayers should have their prior year tax return at hand for the verification process.

Taxpayers who verify their identities through this process will have an IP PIN mailed to them the following tax year. This is for security reasons. Once in the program, the IP PIN will be mailed to these taxpayers each year.

Taxpayers who cannot verify their identities online or by phone and who are ineligible for file Form 15227 can contact the IRS and make an appointment at a Taxpayer Assistance Center (https://www.irs.gov/help/contact-your-local-irs-office) to verify their identities in person. Taxpayers should bring two forms of identification, including one government-issued picture identification.

Taxpayers who verify their identities through the in-person process will have an IP PIN mailed to them within three weeks. Once in the program, the IP PIN will be mailed to these taxpayers each year.

No change for confirmed identity theft victims
Taxpayers who are confirmed identity theft victims or who have filed an identity theft affidavit because of suspected stolen identity refund fraud will automatically receive an IP PIN via mail once their cases are resolved. Current tax-related identity theft victims who have been receiving IP PINs via mail will experience no change.

See IRS.gov/IPPIN for additional details.

The IRS also encourages tax professionals and employers to share information with taxpayers about the availability of the IP PIN. Tax professionals and employers can print or email Publication 5367 or share IRS social media/e-poster products.  

 

IRS: Stay home and stay safe with IRS online tools

The Internal Revenue Service today (12/16/20)encouraged taxpayers to take necessary actions now to help file federal tax returns timely and accurately in 2021.

This is the fourth 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 to make tax filing easier in 2021.

With continued social distancing, taxpayers can stay home and stay safe with IRS online tools and resources that help them find the information they need. These IRS.gov tools are easy to use and available 24 hours a day. Millions of people use them to find information about their accounts, get answers to tax questions or file and pay taxes.

Free File

Almost everyone can file electronically for free. The IRS Free File program, available only through IRS.gov or the IRS2Go app, offers brand-name tax preparation software packages at no cost. The software does all the work of finding deductions, credits and exemptions. It's free for those who earned $72,000 or less in 2020. Some of the Free File packages also offer free state tax return preparation.

Taxpayers comfortable filling out tax forms electronically, can use Free File Fillable Forms, regardless of income, to file their tax returns either by mail or online.

Choosing a preparer

The IRS has several options for finding a tax preparer. One resource is Choosing a Tax Professional, which offers a wealth of information for selecting a tax professional. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find preparers in their area who currently hold professional credentials recognized by the IRS, or who hold an Annual Filing Season Program Record of Completion.

Other online help

The Interactive Tax Assistant answers general tax questions, including helping to determine if a type of income is taxable or if someone is eligible to claim certain credits and deductions. With changes to income and other life events for many in 2020, tax credits and deductions can mean more money in a taxpayer's pocket and thinking about eligibility now can help make tax filing easier next year.

Taxpayers may qualify for credits like the Child Tax Credit and Child and Dependent Care Credit. Taxpayers whose dependent does not qualify for the CTC might be able to claim the Credit for Other Dependents. Individuals paying higher education costs for themselves, a spouse or a dependent, may be eligible to save some money with education tax credits or deductions. Additionally, low- to moderate-income taxpayers may qualify for the Earned Income Tax Credit.

Beginning in January 2021, the Interactive Tax Assistant will be updated to include answers to more tax law questions.

Taxpayers can check the status of their refund using the Where's My Refund? tool. The status is available within 24 hours after the IRS receives their e-filed tax return or up to four weeks after they mailed a paper return. The Where's My Refund? tool updates once every 24 hours, usually overnight, so taxpayers only need to check once a day.

The best and fastest way for taxpayers to get their tax refund is to have it direct deposited into their financial account. Taxpayers who don't have a financial account can visit the FDIC website for information to help open an account online.

For more information about planning ahead, see Publication 5348, Get Ready to File PDF, and Publication 5349, Year-Round Tax Planning is for Everyone PDF.

Shared from the IRS News Release https://www.irs.gov/newsroom/get-ready-for-taxes-stay-home-and-stay-safe-with-irs-online-tools

National Tax Security Awareness Week, Day 4: Security Summit urges businesses to tighten security, offers new protections against identity theft

The Internal Revenue Service, state tax agencies and the tax industry urged businesses to be on guard as thieves try to use their stolen names and data to file fraudulent tax returns.

The partners, operating cooperatively as the Security Summit (https://www.irs.gov/newsroom/security-summit) to fight identity theft, marked the fourth day of National Tax Security Awareness Week with a warning to businesses to enact the strongest measures possible to protect their data and systems. The IRS also is planning additional steps to help businesses combat cybercriminals trying to steal their data.

“As the IRS and our partners have strengthened our security standards, identity thieves have looked for new ways to find sources of information, and businesses need to stay alert,” said IRS Commissioner Charles Rettig. “Businesses, just like individuals, can be victims of identity theft. Thieves may steal enough information to file a business tax return for refund or use other scams using the company’s identity.”

More than 70% of cyberattacks are aimed at businesses with 100 or fewer employees. Thieves may be targeting credit card information, the business identity information or employee identity information.

Business are encouraged to follow best practices from the Federal Trade Commission include:
 -   Set your security software to update automatically
 -  Back up important files
 -   Require strong passwords for all devices
 -   Encrypt devices
 -   Use multi-factor authentication

More information is available at FTC’s Cybersecurity for Small Businesses (https://www.ftc.gov/tips-advice/business-center/small-businesses/cybersecurity).

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 phishing@irs.gov.

Starting Dec. 13, 2020, the IRS will begin 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 will be fully visible. All other information will have 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 publicly launched the Form 14039-B, Business Identity Theft Affidavit (https://www.irs.gov/pub/irs-pdf/f14039b.pdf), that will allow companies to proactively report possible identity theft to the IRS when, for example, the 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 (https://www.irs.gov/identity-theft-central).

Although the 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 a fraudulent return shows up in employees’ names.

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 (https://www.irs.gov/identity-theft-central).

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 (https://www.irs.gov/forms-pubs/about-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 third in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details. 

 

 IRS YouTube Video:  https://youtu.be/ELzTL6hQKQc   New Security Measures Help Protect Against Tax-Related Identity Theft 

IR-2020-256: Get Ready for Taxes: Get ready now to file 2020 federal income tax returns

The Internal Revenue Service today encouraged taxpayers to take necessary actions this fall to help them file their federal tax returns timely and accurately in 2021, including special steps related to Economic Impact Payments.

This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page (https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes), updated and available on IRS.gov, outlines steps taxpayers can take now to prepare for the 2021 tax return filing season ahead.

Steps taxpayers can take now to make tax filing easier in 2021

Taxpayers should gather Forms W-2, Wage and Tax Statement, Forms 1099-Misc, Miscellaneous Income, and other income documents to help determine if they’re eligible for deductions or credits. They’ll also need their Notice 1444, Your Economic Impact Payment, to calculate any Recovery Rebate Credit they may be eligible for on their 2020 Federal income tax return.

Most income is taxable, including unemployment compensation, refund interest and income from the gig economy and virtual currencies.

Taxpayers with an Individual Tax Identification Number should ensure it hasn’t expired before they file their 2020 federal tax return. If it has, IRS recommends they submit a Form W-7, Application for IRS Individual Taxpayer Identification Number, now to renew their ITIN. Taxpayers who fail to renew an ITIN before filing a tax return next year could face a delayed refund and may be ineligible for certain tax credits.

Taxpayers can use the Tax Withholding Estimator on IRS.gov to help determine the right amount of tax to have withheld from their paychecks. If they need to adjust their withholding for the rest of the year time is running out, they should submit a new Form W-4, Employee’s Withholding Certificate, to their employer as soon as possible.

Taxpayers who received non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income, may have to make estimated tax payments. Payment options can be found at IRS.gov/payments.

New in 2021: Those who didn’t receive an EIP may be able to claim the Recovery Rebate Credit

Taxpayers may be able to claim the Recovery Rebate Credit if they met the eligibility criteria in 2020 and:

 -   They didn’t receive an Economic Impact Payment this year, or
 -  Their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018) plus $500 for each qualifying child.
 -  For additional information about the Economic Impact Payment, taxpayers can visit the Economic Impact Payment Information Center.

Received interest on a federal tax refund? Remember these are taxable; include when filing

Taxpayers who received a federal tax refund in 2020 may have been paid interest. The IRS sent interest payments to individual taxpayers who timely filed their 2019 federal income tax returns and received refunds. Most interest payments were received separately from tax refunds. Interest payments are taxable and must be reported on 2020 federal income tax returns. In January 2021, the IRS will send a Form 1099-INT, Interest Income, to anyone who received interest totaling at least $10.

Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a 2020 federal tax refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer.

EITC/ACTC-related refunds should be available by first week of March

By law, the IRS cannot issue refunds for people claiming the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. The law requires the IRS to hold the entire refund − even the portion not associated with EITC or ACTC. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they chose direct deposit and there are no other issues with their tax return. Taxpayers should “Where’s My Refund?” for their personalized refund date.

With social distancing continuing, taxpayers can stay home and stay safe with IRS online tools

Taxpayers can find online tools and resources to help get the information they need. These IRS.gov tools are easy-to-use and available 24 hours a day. Millions of people use them to find information about their accounts, get answers to tax questions or file and pay their taxes.  

Almost everyone can file electronically for free.The IRS Free File program, available only through IRS.gov or the IRS2Go app, offers brand-name tax preparation software packages at no cost. The software does all the work of finding deductions, credits and exemptions for you. It‘s free for those who earned $72,000 or less in 2020. Some of the Free File packages also offer free state tax return preparation.

If you’re comfortable filling out  your own tax forms electronically, you can use Free File Fillable Forms, regardless of your income, to file your tax returns either by mail or online.

Taxpayers have several options to find a tax preparer. One resource is Choosing a Tax Professional, which offers a wealth of information for selecting a tax professional.

The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find preparers in their area who currently hold professional credentials recognized by the IRS, or who hold an Annual Filing Season Program Record of Completion.

Taxpayers can use the Interactive Tax Assistant beginning in January 2021 to get answers to a number of tax law questions. The ITA can help determine if a type of income is taxable, if someone is eligible to claim certain credits, or if they can deduct expenses on their tax return.

Taxpayers can check the status of their refund using "Where's My Refund?". The status is available within 24 hours after the IRS receives their e-filed tax return or up to four weeks if they after they mailed a paper return. The “Where’s My Refund?” tool updates once every 24 hours, usually overnight, so taxpayers only need to check once a day.

The best and fastest way for taxpayers to get their tax refund is to have it direct deposited into their financial account. Taxpayers who don’t have a financial account can visit the FDIC website for information to help open an account online.

Taxpayers are invited to join the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. VITA/TCE volunteers receive training to provide free tax return preparation for eligible taxpayers. There’s never been a better time to get ready to help others file and the IRS is rolling out new ways to make volunteering easier. Visit IRS.gov/volunteers to learn more.  

Visit IRS page for the deep links to all the tips for preparing to file

https://www.irs.gov/newsroom/get-ready-for-taxes-get-ready-now-to-file-2020-federal-income-tax-returns

 

IRS Non-filers: Expect a letter about your stimulus check

Non-filers: Expect a letter about your stimulus check by Lisa Lake, Consumer Education Specialist, FTC If you don't usually file a tax return, or didn't file a return for 2018 or 2019, you might not know you could qualify for an economic impact payment.  You might be one of the nine million people getting a letter from the IRS letting you know how to register on their website to claim your payment by October 15, 2020. Read more  https://www.consumer.ftc.gov/blog/2020/09/non-filers-expect-letter-about-your-stimulus-check  This is a free service provided by the Federal Trade Commission.

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IRS.gov has answers about filing, paying and July 15 due date

As the July due date for filing a tax return draws closer, the Internal Revenue Service reminds taxpayers about the many resources available on IRS.gov. Whether on home computers or mobile devices, the number of taxpayers visiting IRS.gov continues to grow year after year.

Easy-to-use tools, available 24 hours a day on the IRS website, have been used more than 1.2 billion times this year.

IRS.gov is home to IRS Free File, "Where's My Refund?", the Tax Withholding Estimator and a host of other convenient applications. Additional help is available in Publication 17, Your Federal Income Tax, available on IRS.gov. Publication 17 is also available as an eBook.

Taxpayers who have yet to file their tax returns should file electronically now and choose direct deposit if they’re getting a refund. Taxpayers who owe for tax year 2019 can pay anytime up to the July 15 due date.

File electronically for free

Taxpayers whose income was $69,000 or less last year are eligible to use the IRS Free File software to do their taxes. Also, regardless of income, any taxpayer who is comfortable preparing their own taxes can use Free File Fillable Forms. Taxpayers can use these electronic versions of IRS tax forms to complete their taxes and file them online. Free File options are available at IRS.gov/freefile.

Get answers to tax questions

Taxpayers can find answers to many of their questions using the Interactive Tax Assistant. It’s a tax law resource that uses a series of questions and responses to help. IRS.gov also has answers to Frequently Asked Questions on a variety of topics. The IRS website also has tax information in: Spanish (Español); Chinese (中文); Korean (한국어); Russian (Pусский); Vietnamese (Tiếng Việt); and Haitian Creole (Kreyòl ayisyen).

"Where's My Refund?"

Taxpayers can easily find the most up-to-date information about their tax refund using the "Where's My Refund?" tool on IRS.gov and on the IRS mobile app, IRS2Go. Within 24 hours after the IRS acknowledges receipt of an electronically filed return, taxpayers can start checking on the status of their refund.

Schedule a payment

Taxpayers can file now and schedule their federal tax payments up to the July 15 due date. They can pay online, by phone or with their mobile device and the IRS2Go app. When paying federal taxes electronically, taxpayers should remember:

• Electronic payment options are the best way to make a tax payment.
• They can pay when they e-file by using tax software online.
• If using a tax preparer, taxpayers should ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account.
• IRS Direct Pay allows taxpayers to pay online directly from a checking or savings account for free.
• Taxpayers can choose to pay with a credit card, debit card or digital wallet option through a payment processor. No fees go to the IRS.
• The IRS2Go app provides mobile-friendly payment options, including Direct Pay and payment processors on mobile devices.
• Taxpayers may also enroll in the Electronic Federal Tax Payment System and pay online or by phone.
• They can pay with cash at a retail partner. New locations available.
• Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, access their tax records online, review their payment history and view key information for the most recent tax return as originally filed.

Not required to file a tax return? Non-Filers tool available to register for Economic Impact Payments

People who are not normally required to file a tax return and don’t plan to do so can use the Non-Filers tool to get an Economic Impact Payment. The only way they can get this payment is to register with the IRS by using this free tool. Available in both English and Spanish, the tool was developed jointly by the IRS and the Free File Alliance. The registration deadline is Oct. 15, 2020.

More information

IRS.gov/COVIDtaxdeadlines
IRS.gov/payments
IRS.gov/account
IRS.gov/ITA
IRS.gov/estimatedtaxes

Shared from the IRS page

https://www.irs.gov/newsroom/irsgov-has-answers-about-filing-paying-and-july-15-due-date

IR-2020-105: Economic Impact Payments being sent by prepaid debit cards, arrive in plain envelope; IRS.gov answers frequently asked questions

As Economic Impact Payments continue to be successfully delivered, the Internal Revenue Service today reminds taxpayers that some payments are being sent by prepaid debit card. The debit cards arrive in a plain envelope from "Money Network Cardholder Services."

Nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers received a debit card was made by the Bureau of the Fiscal Service, a part of the Treasury Department that works with the IRS to handle distribution of the payments.

Those who receive their Economic Impact Payment by prepaid debit card can do the following without any fees.

• Make purchases online and at any retail location where Visa is accepted
• Get cash from in-network ATMs
• Transfer funds to their personal bank account
• Check their card balance online, by mobile app or by phone
• This free, prepaid card also provides consumer protections available to traditional bank account owners, including protection against fraud, loss and other errors.

Frequently asked questions continually updated on IRS.gov

The IRS has two sets of frequently asked questions to help Americans get answers about their Economic Impact Payments, including those arriving on prepaid debit card. These FAQs include answers to eligibility and other many common questions, including help to use two Economic Impact Payment tools.

Get My Payment (https://www.irs.gov/coronavirus/get-my-payment), an IRS online tool, shows the projected date when a direct deposit has been scheduled or date when the payment will be mailed by check or prepaid debit card. The Non-Filers Enter Payment Info tool (https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here) helps taxpayers successfully submit basic information to receive Economic Impact Payments quickly.

The IRS regularly updates the Economic Impact Payment (https://www.irs.gov/coronavirus/economic-impact-payment-information-center) and the Get My Payment (https://www.irs.gov/coronavirus/get-my-payment) frequently asked questions pages on IRS.gov as more information becomes available. Taxpayers should check the FAQs often for the latest additions.

Here are answers to some of the top questions people are asking about the prepaid debit cards:

Can I have my economic impact payment sent to my prepaid debit card?

Maybe. It depends on your prepaid card and whether your payment has already been scheduled. Many reloadable prepaid cards have account and routing numbers that you could provide to the IRS through the Get My Payment application or Non-Filers: Enter Payment Info Here tool. You would need to check with the financial institution to ensure your card can be re-used and to obtain the routing number and account number, which may be different from the card number. If you obtained your prepaid debit card through the filing of a federal tax return, you must contact the financial institution that issued your prepaid debit card to get the correct routing number and account number. Do not use the routing number and account number shown on your copy of the tax return filed. When providing this information to the IRS, you should indicate that the account and routing number provided are for a checking account unless your financial institution indicates otherwise.

Will IRS be sending prepaid debit cards?

Some payments may be sent on a prepaid debit card known as The Economic Impact Payment Card The Economic Impact Payment Card is sponsored by the Treasury Department's Bureau of the Fiscal Service, managed by Money Network Financial, LLC and issued by Treasury's financial agent, MetaBank®, N.A.

If you receive an Economic Impact Payment Card, it will arrive in a plain envelope from "Money Network Cardholder Services." The Visa name will appear on the front of the Card; the back of the Card has the name of the issuing bank, MetaBank®, N.A. Information included with the Card will explain that the card is your Economic Impact Payment Card. Please go to EIPcard.com for more information.

Can I specifically ask the IRS to send the Economic Impact Payment to me as a debit card?

Not at this time. For those who don't receive their Economic Impact Payment by direct deposit, they will receive their payment by paper check, and, in a few cases, by debit card. The determination of which taxpayers receive a debit card will be made by the Bureau of the Fiscal Service (BFS), another part of the Treasury Department that works with the IRS to handle distribution of the payments. BFS is sending nearly 4 million debit cards to taxpayers starting in mid-May. At this time, taxpayers cannot make a selection to receive a debit card. Please go to EIPcard.com for more information.

Watch out for scams related to Economic Impact Payments
The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

Quick links to the Frequently Asked Questions on IRS.gov:
Economic Impact Payments: www.irs.gov/eipfaq
Get My Payment tool: www.irs.gov/getmypaymentfaq
Please go to EIPcard.com for more information about prepaid debit cards.


Shared from https://www.irs.gov/newsroom/economic-impact-payments-being-sent-by-prepaid-debit-cards-arrive-in-plain-envelope-irsgov-answers-frequently-asked-questions 

IRS: Three new credits are available to many businesses hit by COVID-19

The Internal Revenue Service today reminds employers affected by COVID-19 about three important new credits available to them.

Employee Retention Credit:
The employee retention credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

Qualifying employers must fall into one of two categories:

• The employer's business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
• The employer's gross receipts are below 50% of the comparable quarter in 2019. Once the employer's gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.

Employers will calculate these measures each calendar quarter.

Paid Sick Leave Credit and Family Leave Credit:
The paid sick leave credit is designed to allow business to get a credit for an employee who is unable to work (including telework) because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis. Those employees are entitled to paid sick leave for up to 10 days (up to 80 hours) at the employee's regular rate of pay up to $511 per day and $5,110 in total.

The employer can also receive the credit for employees who are unable to work due to caring for someone with Coronavirus or caring for a child because the child's school or place of care is closed, or the paid childcare provider is unavailable due to the Coronavirus. Those employees are entitled to paid sick leave for up to two weeks (up to 80 hours) at 2/3 the employee's regular rate of pay or, up to $200 per day and $2,000 in total.

Employees are also entitled to paid family and medical leave equal to 2/3 of the employee's regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the family leave credit.

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees' wages by the amount of the credit.
Eligible employers are entitled to immediately receive a credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer's share of Medicare tax on the leave, for the period of April 1, 2020, through Dec. 31, 2020. The refundable credit is applied against certain employment taxes on wages paid to all employees.

How will employers receive the credit?
Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees' wages by the amount of the credit.
Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer's employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19 (https://www.irs.gov/forms-pubs/about-form-7200).

Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

The IRS has also posted Employee Retention Credit FAQs (https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act) and Paid Family Leave and Sick Leave FAQs (https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs) that will help answer questions.

Updates on the implementation of the Employee Retention Credit and other information can be found on the Coronavirus page of IRS.gov.

Related Items:
•FS-2020-05, New Employee Retention Credit helps employers keep employees on payroll (https://www.irs.gov/newsroom/new-employee-retention-credit-helps-employers-keep-employees-on-payroll)


Shared from 
https://www.irs.gov/newsroom/irs-three-new-credits-are-available-to-many-businesses-hit-by-covid-19