Support you Deserve

We offer a broad range of services to help you secure a sound financial future. You've worked hard to get where you are. You deserve a firm that works hard for you.

IRS Updates

 New and draft forms, instructions and publications on IRS.gov


New forms

  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Form 940 (Schedule A), Multi-State Employer and Credit Reduction Information
  • Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund
  • Form 943, Employer's Annual Federal Tax Return for Agricultural Employees
  • Form 944, Employer's Annual Federal Tax Return

Draft forms

  • Form W-4P, Withholding Certificate for Pension or Annuity Payments 
  • Form 941, Employer's Quarterly Federal Tax Return
  • Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands

New instructions

  • Inst 940, Instructions for Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Inst 941-X, Instructions for Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund
  • Inst 943, Instructions for Form 943, Employer's Annual Federal Tax Return for Agricultural Employees
  • Inst 944, Instructions for Form 944, Employer's Annual Federal Tax Return

New publications

  • Pub 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G
  • Pub 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters
  • Pub 5258, Affordable Care Act (ACA) Information Returns (AIR) Submission Composition and Reference Guide

Draft Publications

  • Pub 15, Circular E, Employer's Tax Guide
  • Pub 15-T, Federal Income Tax Withholding Methods
  • Pub 51, Circular A, Agricultural Employer's Tax Guide 

 Dear Clients:

Seasons greeting. As calendar year 2020 comes to an end and the start of the

2021 filing season

is about to begin. The IRS has launched a 2021 Get Ready for

axes campaign.

Please share

this just in time information with your members, clients, employees and

staff and let me

know your

method of distribution.

Get Ready for Taxes: Stay home and stay safe with IRS online tools

IR-2020-277, December 16, 2020 — The Internal Revenue Service

today encouraged taxpayers to take

necessary actions now to help file federal tax returns timely and

accurately in 2021.

Get Ready for Taxes: What’s new and what to consider when filing in 2021

IR-2020-272, December 8, 2020 — The Internal Revenue Service

today encouraged taxpayers to take

necessary actions in the final weeks of the year to help file federal tax

returns timely and accurately

in 2021.

Get Ready for Taxes: Steps to take now to make tax filing easier in 2021

IR-2020-263, November 24, 2020 — The Internal Revenue Service today

encouraged taxpayers to take

necessary actions this fall to help file federal tax returns timely and accurately

in 2021.

You can share the following publications via email, post them in your common

workplace area(s) or use

them as stuffers if you still snail mail Form W2 to your employees.

Publication 5348 - Get Ready to File

Publication 5349 - Year Around Tax Planning for Everyone 

Social media, we have that too; feel free to re-tweet our messages

(see attached jpg.)

We encourage you to take the necessary actions in the final weeks of

the year to help file

your taxes timely and accurately in 2021. See the #IRS to #getready 

https://go.usa.gov/x7hPP

Year-round tax planning is for everyone. #IRS Publication 5349 has

multiple tools to help:

 https://www.irs.gov/pub5349

Sincerely yours,

Jeanine

https://www.remotebusinesssolutionsinc.org

Updates on the implementation of the TCJA can be found on the 

Tax Reform page of

IRS.gov.  In the third of a series of reminders to help individuals

get ready for the

upcoming tax filing season, the IRS outlines steps your clients

can take now to

make tax filing easier in 2021.  The IRS released the 2020 Form 1040.

Additionally,

draft instructions for 2020 Form 1040 and 1040-SR have been updated 

as of

IRS Newswire December 18, 2020

News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions


The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News Home


IRS Resources

Compliance & Enforcement

Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

IRS Social Media


Issue Number:    IR-2020-278

Inside This Issue

Year-end reminder: Expanded tax benefits help individuals and businesses give to charity during 2020

WASHINGTON – The Internal Revenue Service today explained how expanded tax benefits can help both individuals and businesses give to charity before the end of this year.

The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring, includes four temporary tax changes that are designed to help people and businesses who give to charity this year. Here is a rundown of these key changes.

New deduction for people who don’t itemize

Individuals who elect to take the standard deduction generally cannot claim a deduction for their charitable contributions. However, the CARES Act permits these individuals to claim a limited deduction on their 2020 federal income tax returns for cash contributions made to certain qualifying charitable organizations and still claim the standard deduction. Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify.
Under this change, these individuals can claim an “above-the-line” deduction of up to $300 for cash contributions made to qualifying charities during 2020. The maximum above-the-line deduction is $150 for married individuals filing separate returns.
Though cash contributions to most charitable organizations qualify, those made either to supporting organizations or to establish or maintain a donor advised fund, do not. Cash contributions carried forward from prior years do not qualify, nor do most cash contributions to charitable remainder trusts.  In general, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund on how to distribute or invest amounts 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. See Pub. 526 for more information on the types of organizations that qualify.

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 the individual’s volunteer services to a qualifying charitable organization. Cash contributions don’t include the value of volunteer services, securities, household items or other property.

Up to 100% limit on eligible cash contributions made by itemizers in 2020

Subject to certain limits, individuals who itemize may claim a deduction for charitable contributions they make to qualifying charitable organizations. These limits generally range from 20% to 60% of an individual’s adjusted gross income (“AGI”) and vary by the type of contribution and type of charitable organization.  For example, a cash contribution made by an individual to a qualifying public charity generally is limited to 60% of the individual’s AGI. Excess contributions may be carried forward for up to five tax years.

The CARES Act permits electing individuals to apply an increased limit, up to 100% of their AGI, for qualified contributions (“Increased Individual Limit”). The election is made on a contribution-by-contribution basis. Qualified contributions are limited to those made in cash during calendar year 2020 to qualifying charitable organizations.

As with the new limited deduction for nonitemizers, cash contributions to most charitable organizations qualify, but, once again, those made either to supporting organizations or to establish or maintain a donor advised fund, do not.  Nor do most cash contributions to charitable remainder trusts.

Unless an individual makes the election for any given qualified contribution, the usual percentage limit applies. Keep in mind an individual’s other allowed charitable contribution deductions reduce the maximum amount allowed under this election. Individuals who would like to take advantage of the Increased Individual Limit must make their elections with their Form 1040 or Form 1040-SR.

Corporate limit increased to 25% of taxable income

The CARES Act permits C Corporations to apply an increased limit of 25% of taxable income (Increased Corporate Limit) for charitable contributions of cash they make to eligible charities during the 2020 calendar year. The maximum allowable deduction is usually limited to 10% of a corporation’s taxable income.

Here again, the Increased Corporate Limit does not automatically apply. C Corporations must elect application of the Increased Corporate Limit on a contribution-by-contribution basis.

Increased limits on amounts deductible by businesses for certain donated food inventory

Businesses donating food inventory that is eligible for the enhanced deduction (for contributions for the care of the ill, needy, and infants) are eligible for increased deduction limits. For contributions made in 2020, the limit for these contribution deductions is increased from 15% to 25%. For C Corporations, the 25% limit is based on their taxable income. For other businesses, including sole proprietorships, partnerships, and S corporations, the limit is based on their aggregate net income for the year from all trades or businesses from which the contributions were made. A special method for computing the enhanced deduction continues to apply, as do food quality standards and other requirements.

Keep good records

The IRS reminds both individuals and businesses that special recordkeeping rules apply to any taxpayer claiming a charitable contribution deduction. Usually, this includes obtaining a receipt or acknowledgment letter from the charity before filing a return and retaining a cancelled check or credit card receipt. For donations of property, additional recordkeeping rules may apply, including filing a form 8283 and obtaining a qualified appraisal.

For additional details on how to apply the percentage limits described above and a description of the recordkeeping rules for substantiating gifts to charity, see Publication 526, Charitable Contributions, available on IRS.gov.

For more information about other Coronavirus-related tax relief, visit IRS.gov/Coronavirus.

December 9.   Per IR-2020-267, December 2, 2020:  

New Security Measures Help Protect Against Tax-Related

Identity Theft  English

WASHINGTON — As part of the Security Summit effort, the

Internal Revenue

Service announced today that starting in January the Identity

Protection PIN

Opt-In Program will be expanded to all taxpayers who can

properly verify their

identities.

The Summit partners, including state tax agencies, the nation's

tax industry and

he IRS, marked the third day of the National Tax Security

Awareness Week by

urging taxpayers who want the proactive protection against

identity theft to opt

into the Identity Protection PIN program in 2021.

The IP PIN is a six-digit number assigned to eligible taxpayers

to help prevent

the misuse of their Social Security number on fraudulent federal

income tax

returns. An IP PIN helps the IRS verify a taxpayer's identity and a

ccept their electronic or paper tax return. The online Get An IP PIN

tool at IRS.gov/ippin immediately displays the taxpayer's IP PIN.

Here is a video tax tip from the IRS: 

Individual Taxpayer Identification Number (ITIN) 

English | Spanish | ASL

Subscribe today: The IRS YouTube channels provide short,

informative videos on

various tax related topics in English, Spanish and ASL.

IRS provides guidance

on legislation that

increases automatic

enrollment cap

percentage and eases

burdens for certain

safe harbor plans

IR-2020-273, December 9, 2020

WASHINGTON — The Internal Revenue

Service today issued Notice 2020-86 PDF

addressing certain provisions of the Setting

Every Community Up for Retirement

Enhancement Act of 2019 (SECURE Act)

affecting safe harbor plans, including safe

arbor 401(k) plans and certain 403(b) plans.

A safe harbor 401(k) plan is similar to a

traditional 401(k) plan but is structured in a

way that certain compliance testing can be

avoided. Among other things, a safe harbor

401(k) plan must provide for employer

contributions that are fully vested when made.

These contributions may be employer

matching contributions, limited to

employees who defer, or employer contributions

made on behalf of all eligible employees,

regardless of whether they make elective deferrals.

Notice 2020-86 is written in the form of questions

and answers to assist small businesses and other

employers that maintain safe harbor plans comply

with the SECURE Act.

The SECURE Act generally increases from 10 percent

to 15 percent the maximum automatic elective

deferral under an automatic enrollment safe harbor plan.

It also eliminates certain safe harbor notice requirements

for plans that provide safe harbor nonelective contributions

and adds new provisions for the retroactive adoption of safe

harbor status for those plans.

The notice provides initial guidance on these provisions of the

SECURE Act and impacts certain safe harbor 401(k) and

401(m) plans (including 403(b) plans that apply the 401(m)

safe harbor).

Notice 2020-86 is intended to assist taxpayers by providing

guidance on particular issues while the Treasury Department

and the IRS develop regulations to fully implement these

provisions of the SECURE Act.

For more information about this and other tax information,

visit IRS.gov.

IRS Newswire November 25, 2020

News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions


The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News Home


IRS Resources

Compliance & Enforcement

Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

IRS Social Media


Issue Number:    IR-2020-264

Inside This Issue


Special $300 tax deduction helps most people give to charity this year – even if they don’t itemize

WASHINGTON – The Internal Revenue Service today reminded taxpayers of a special new provision that will allow more people to easily deduct up to $300 in donations to qualifying charities this year.

Following special tax law changes made earlier this year, cash donations of up to $300 made before Dec. 31, 2020, are now deductible when people file their taxes in 2021.

“Our nation’s charities are struggling to help those suffering from COVID-19, and many deserving organizations can use all the help they can get,” said IRS Commissioner Chuck Rettig. “The IRS reminds people there’s a new provision that allows for up to $300 in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve.”

The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring, includes several temporary tax changes helping charities, including the special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their deductions.

Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify for this new tax deduction. In tax-year 2018, the most recent year for which complete figures are available, more than 134 million taxpayers claimed the standard deduction, just over 87% of all filers.

Under this new change, individual taxpayers can claim an “above-the-line” deduction of up to $300 for cash donations made to charity during 2020. This means the deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.

Before making a donation, the IRS reminds people they can check the special Tax Exempt Organization Search tool on IRS.gov to make sure the organization is eligible for tax-deductible donations.

Cash donations include those made by check, credit card or debit card. They don’t include securities, household items or other property. Though cash contributions to most charitable organizations qualify, some do not. Check Publication 526, Charitable Contributions, and the TEOS for more information.

Though cash contributions to most charitable organizations qualify, those made to supporting organizations and donor-advised funds do not.

The IRS reminds everyone giving to charity to be sure to keep good records. By law, special recordkeeping rules apply to any taxpayer claiming a charitable contribution deduction. Usually, this includes obtaining a receipt or acknowledgement letter from the charity, before filing a return, and retaining a cancelled check or credit card receipt. For details on these recordkeeping rules, see Publication 526, available on IRS.gov.

In addition, the CARES Act includes other temporary provisions designed to help charities. These include higher charitable contribution limits for corporations, individuals who itemize their deductions and businesses that give food inventory to food banks and other eligible charities. For more information about these and other Coronavirus-related tax relief provisions, visit IRS.gov/Coronavirus.

The US Treasury and the IRS released final regulations for section 1031 like-kind exchanges, 

T.D. 9935, on November 23, confirming the Tax Cuts and Jobs Act’s (TCJA) (P.L. 115-97) limitation

of section 1031 like-kind exchanges to those of “real" property held for use in a trade or business

or for investment.

Nov. 21 ended the deadline to register online for Economic Impact Payment; Some people

can claim special credit next tax filing season.  Anyone can check the status of their

payment by using the Get My Payment application, available only on IRS.gov. The Get My Payment

application will show “Payment Status Not Available” until the payment is scheduled to be issued.

This response does not mean a person is not eligible or will not receive a payment. Visit the IRS 

Economic Impact Payment Information Center for answers to questions about eligibility, payment

amounts, payment timing and more.

IRS Tax Tips December 18, 2020

Useful Links:

IRS.gov

Help For Hurricane Victims


News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions


The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams/Consumer Alerts

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News


IRS Resources

Compliance & Enforcement News

Contact Your Local IRS Office

Filing Your Taxes

Forms & Instructions

Frequently Asked Questions

Taxpayer Advocate Service

Where to File

IRS Social Media


Issue Number:    Choose a Tax Preparer Wisely

Inside This Issue


Here is a video tax tip from the IRS: 

Choose a Tax Preparer Wisely English |Spanish | ASL

Subscribe today: The IRS YouTube channels provide short, informative videos on various tax related topics in English, Spanish and ASL.

New and draft forms, instructions and publications on IRS.gov


New forms

  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Form 940 (Schedule A), Multi-State Employer and Credit Reduction Information
  • Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund
  • Form 943, Employer's Annual Federal Tax Return for Agricultural Employees
  • Form 944, Employer's Annual Federal Tax Return

Draft forms

  • Form W-4P, Withholding Certificate for Pension or Annuity Payments 
  • Form 941, Employer's Quarterly Federal Tax Return
  • Form 941-SS, Employer's Quarterly Federal Tax Return - American Samoa, Guam,
  • the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands

New instructions

  • Inst 940, Instructions for Form 940, Employer's Annual Federal Unemployment
  • (FUTA) Tax Return
  • Inst 941-X, Instructions for Form 941-X, Adjusted Employer's Quarterly Federal
  • Tax Return or Claim for Refund
  • Inst 943, Instructions for Form 943, Employer's Annual Federal Tax Return for
  • Agricultural Employees
  • Inst 944, Instructions for Form 944, Employer's Annual Federal Tax Return

New publications

  • Pub 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921,
  • 3922, 5498, and W-2G
  • Pub 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information
  • Returns for Software Developers and Transmitters
  • Pub 5258, Affordable Care Act (ACA) Information Returns (AIR) Submission
  • Composition and Reference Guide

Draft Publications

  • Pub 15, Circular E, Employer's Tax Guide
  • Pub 15-T, Federal Income Tax Withholding Methods
  • Pub 51, Circular A, Agricultural Employer's Tax Guide

EO Update: e-News for Charities & Nonprofits November 20, 2020

Useful Links

IRS.gov

Charities and Nonprofits
Homepage

EO FAQs

EO Forms and Instructions

EO Newsletter

Life Cycle

Tax Exempt Organization Search

A-Z Index

Calendar of Events

Stay Exempt

Free articles for your publications

Subscribe to the EO Update


Other IRS Resources

Compliance & Enforcement

Contact My Local Office

e-file

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

IRS Social Media

Education Sessions


IRS is revising Form 1024-A to allow for electronic submission

As part of an ongoing effort to improve service for the tax-exempt community, the IRS is revising Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), and its instructions to allow electronic filing for the first time.

The IRS expects electronic filing to be available early in 2021, at which point applications for recognition of exemption on Form 1024-A must be submitted electronically online at www.pay.gov. The IRS will provide a grace period during which it will continue to accept paper versions of Form 1024-A.

Stay tuned to irs.gov for more details regarding the release of the revised Form 1024-A.

 

New Issue Snapshots

Visit IRS.gov for a complete listing of available Issue Snapshots.

Online training for small and mid-size 501(c)(3) organizations


The IRS provides interactive online training to help your organization maintain its exemption at StayExempt.irs.gov. Its Virtual Tax Exempt Organization Workshop helps organizational leadership and volunteers understand the benefits, limitations and expectations for exempt organizations.

e-News for Small Business November 20, 2020

Tax Resources for Small Business

Small Business and Self-Employed One-Stop Resource

Small Business Forms & Instructions

Small Business Events

Small Business Webinars

e-File for Businesses and Self-Employed

Businesses with Employees

Small Business Products

Self-Employed Individuals

S Corporations


Other Resources

IRS.gov

Find it Fast!

All Forms and Instructions

Filing Your Taxes

Make a Payment

Taxpayer Advocate Service

Retirement Plans

Tax Information for Charities
and Other Non-Profits

State Links

SSA/IRS Reporter

IRS Social Media

Issue Number: 2020-20

Inside This Issue

  1. Common errors to avoid when claiming employer tax credits
  2. Reminder: Work Opportunity Tax Credit extended
  3. Delivering the CARES Act and Filing Season 2020; IRS offers electronic signature options
  4. IRS to mask key business transcript details; protect taxpayers from identity theft
  5. Here’s who qualifies for the employee business expense deduction
  6. IRS resources to help small business owners
  7. November 21 deadline nears to register online for Economic Impact Payment; Some people can claim special credit next tax filing season
  8. New COVID-related text scam; National Tax Security Awareness Week announced

1.  Common errors to avoid when claiming employer tax credits


Employers who are filing Form 941, Employer's Quarterly Federal Tax Return and claiming an employer tax credit should read the instructions carefully and take their time when completing the form to avoid mistakes.

This IRS Tax Tip covers:

  • Using a reputable tax preparer including certified public accountants, enrolled agents or other knowledgeable tax professionals
  • Mistakes can result in a processing delay or a balance due notice, which could mean a delay or require filing an amended return
  • Common mistakes to avoid when completing Form 941
    • Reporting advances requested instead of the advance payments of credits received
    • Incorrectly reconciling the advance payment of the credit requested and received
  • Requirements when using third-party payers or reporting agents
  • What third-party payers and reporting agents should also ask employers

Back to top


2.  Reminder: Work Opportunity Tax Credit extended


The Work Opportunity Tax Credit is a valuable tax credit available to employers who hire long-term unemployment recipients and others certified by their state workforce agency if the individual began or begins work for the employer after December 31, 2014, and before January 1, 2021.

Back to top


3.  Delivering the CARES Act and Filing Season 2020; IRS offers electronic signature options


The CARES Act and Filing Season 2020
Deputy Commissioner for Operations Support Jeff Tribiano gives a behind-the-scenes look into how the IRS was able to deliver Economic Impact Payments and other tax relief to help Americans during the COVID-19 outbreak while simultaneously executing a highly successful filing season.

Electronic signature options will simplify third-party authorizations
Submitting Form 2848, Power of Attorney and Form 8821, Tax Information Authorization, are currently done on paper. By moving to a new online submission process, it gives tax professionals and taxpayers a safe option to electronically sign and upload these critical documents without an in-person meeting, explains Sharyn Fisk, Director, Office of Professional Responsibility.

“A Closer Look”
These are part of the IRS “A Closer Look” feature. It will be updated frequently and will include articles from a variety of IRS leaders. The online publication will cover a variety of timely issues of interest to taxpayers and the tax community. It will also provide a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Back to top


4.  IRS to mask key business transcript details; protect taxpayers from identity theft


Moving to protect business taxpayers from identity theft, the IRS announced that starting December 13, 2020, it will begin masking sensitive data on business tax transcripts.

The announcement provides 30 days for stakeholders to make any adjustments and additional information about:

  • What a tax transcript is
  • What they are used for
  • What’s visible on the new transcript
  • How it would work for a taxpayer seeking to verify income for a lender

Back to top


5.  Here’s who qualifies for the employee business expense deduction


People can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they’re a qualified employee or an eligible educator. See who qualifies in this IRS Tax Tip.

Back to top


6.  IRS resources to help small business owners


During National Veterans Small Business Week, the IRS shared a variety of resources to help small business owners, including veterans, understand their tax responsibilities. Best of all, most of these resources are available online at IRS.gov.

Here are a few webpages with helpful information for small business owners:

  • Small Business and Self-Employed Tax Center
  • Self-Employed Individuals Tax Center
  • Sharing Economy Tax Center

Back to top


7.  November 21 deadline nears to register online for Economic Impact Payment; Some people can claim special credit next tax filing season


The Internal Revenue Service reminded anyone who doesn’t normally file a tax return that they have until 3 p.m. EST this Saturday, November 21, to register with the IRS for an Economic Impact Payment.

The extended November 21 deadline also gives more time to federal beneficiaries who already received an EIP but didn't register to receive supplemental $500 payments for qualifying children.

Find out the details.

Back to top


8.  New COVID-related text scam; National Tax Security Awareness Week announced


Security Summit partners warn taxpayers of new COVID-related text scam
The IRS, state tax agencies and the tax industry warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment.

National Tax Security Awareness Week
The IRS, state tax agencies and the nation's tax industry announced that the 5th Annual National Tax Security Awareness Week will take place between November 30 and December 4, 2020.

This year, there's a heightened need for security as fraudsters seek to use COVID-19 to scam taxpayers and tax preparers. New protections being offered by Security Summit partners in January can help protect people against tax-related identity theft.

e-News for Small Business Issue 2020-19

Inbox

e-News for Small Business irs@service.govdelivery.com

Fri, Nov 6, 11:07 AM (3 days ago)
to jeanine

Bookmark and Share

IRS.gov Banner
e-News for Small Business November 6, 2020

Tax Resources for Small Business

Small Business and Self-Employed One-Stop Resource

Small Business Forms & Instructions

Small Business Events

Small Business Webinars

e-File for Businesses and Self-Employed

Businesses with Employees

Small Business Products

Self-Employed Individuals

S Corporations


Other Resources

IRS.gov

Find it Fast!

All Forms and Instructions

Filing Your Taxes

Make a Payment

Taxpayer Advocate Service

Retirement Plans

Tax Information for Charities
and Other Non-Profits

State Links

SSA/IRS Reporter

IRS Social Media

Issue Number: 2020-19

Inside This Issue

  1. IRS issues new relief for taxpayers experiencing COVID-19-related financial difficulties
  2. November 10 is National EIP Registration Day; Register at IRS.gov for Economic Impact Payment
  3. SB/SE releases 2021 focus guide
  4. Don’t forget the Work Opportunity Tax Credit
  5. Impact of Presidential Memorandum on Forms W-2 and W-2c

1. IRS issues new relief for taxpayers experiencing COVID-19-related financial difficulties


The IRS issued new details this week to help taxpayers who are experiencing financial difficulties due to COVID-19. The IRS is committed to helping taxpayers wherever possible, including offering many options for those struggling to pay their tax bills.

The IRS also published additional details in a new post of “A Closer Look.” This feature will be updated frequently and will include articles from a variety of IRS leaders. The online publication will cover a variety of timely issues of interest to taxpayers and the tax community. It will also provide a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Back to top


2. November 10 is National EIP Registration Day; Register at IRS.gov for Economic Impact Payment


Employers can help spread the word that November 10 is National EIP Registration Day.

The IRS set November 10 as National EIP Registration Day, to launch a final push to encourage everyone who doesn't normally file a tax return to register to receive an Economic Impact Payment.

National EIP Registration Day will take place just a few days ahead of the extended November 21 registration deadline. This special event will feature support from IRS partner groups inside and outside of the tax community, including those that work with low-income and underserved communities. These groups will help spread the word about the new November 21 deadline and, in some cases, provide special support for people who still need to register for the payments.

Back to top


3. SB/SE releases 2021 focus guide


The IRS Small Business and Self-Employed business unit released its Fiscal 2021 Focus Guide -- It’s Still the Time -- laying out the compliance and service strategies for the coming year.

This document provides an overview for both internal and external audiences to understand the agency operational priorities for SB/SE’s audit and collection activities, which continue to focus on the health and safety of employees and taxpayers.

This is a newly revised operational update and is the first year of public distribution. In addition to the SB/SE Annual Report, its purpose is to provide transparency to the public and employees on the operational direction and assessment of SBSE responsibilities.

Back to top


4. Don’t forget the Work Opportunity Tax Credit


There’s a valuable tax credit available to those who hire long-term unemployment recipients and others certified by their state workforce agency if the individual began or begins work for the employer after Dec. 31, 2014 and before Jan. 1, 2021.

The Work Opportunity Tax Credit is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.

Back to top


5. Impact of Presidential Memorandum on Forms W-2 and W-2c


The IRS issued instructions to employers and employees on the issuance of Forms W-2 and W-2c to employees for whom the employee share of Social Security tax is deferred under the Presidential Memorandum (Aug. 8, 2020). In short, the 2020 Form W-2 must reflect only the amount of Social Security tax actually withheld from 2020 wages, and a Form W-2c will need to be issued when the 2020 Social Security tax is withheld in 2021. This follows previous guidance in Notice 2020-65.

Here is a video tax tip from the IRS: 

Tax Exempt Organization Search (TEOS) English | ASL

IRS Tax Tips December 17, 2020

Useful Links:

IRS.gov

Help For Hurricane Victims


News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions


The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams/Consumer Alerts

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News


IRS Resources

Compliance & Enforcement News

Contact Your Local IRS Office

Filing Your Taxes

Forms & Instructions

Frequently Asked Questions

Taxpayer Advocate Service

Where to File

IRS Social Media


Issue Number: Tax Tip 2020-173


Small businesses should make sure to use the right form when filing employment tax returns


Some small businesses pay employment tax quarterly while others may pay it just once a year.

The IRS advises small business owners to review the rules for filing two commonly used employment tax returns. The two forms are:

   •  Form 941, Employer's Quarterly Federal Tax Return
   •  Form 944, Employer's Annual Federal Tax Return

These two forms are not interchangeable. A small business files one or the other. The employer should never flip-flop between the two forms on their own and should always file according to their designated filing requirement.

Here are some more details about these two forms.

Form 941, Employer's Quarterly Federal Tax Return
   •  Employers use Form 941 to:
      - Report income taxes, Social Security tax, Medicare tax and additional Medicare tax withheld from employee's wages, tips and other compensation.
      - Claim employment tax credits and adjustments
      - Report the amount of employment taxes owed or claim an overpayment of employment taxes.
   •  If the IRS advises the employer to file Form 941 quarterly, they must do so.

Form 944, Employer's Annual Federal Tax Return
   •  This form is for employers who owe $1,000 or less. It allows them to report employment tax liabilities only once a year, instead of quarterly.
   •  This form can’t be used unless an employer receives official IRS notification that they are eligilble to use this form.
   •  Once the employer receives notice they can file Form 944, they must file this form every year.
   •  They must continue to file Form 944, regardless of the tax they owe, unless the IRS notifies them differently.

If a taxpayer is not sure which form they should file, they can call the IRS at 800-829-4933 or 267-941-1000.


More information:
Form 941 Instructions
Form 944 Instructions
Publication 15, Circular E, Employer's Tax Guide

IRS YouTube video:
Some Taxpayers Can File Their Employment Taxes Annually

Useful Links:

IRS.gov

Help For Hurricane Victims


News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions


The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams/Consumer Alerts

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News


IRS Resources

Compliance & Enforcement News

Contact Your Local IRS Office

Filing Your Taxes

Forms & Instructions

Frequently Asked Questions

Taxpayer Advocate Service

Where to File

IRS Social Media


Issue Number:  Tax Tip 2020-174


How people can give back by becoming an IRS-certified volunteer 

The IRS and its community partners are looking for people around the country to become IRS-certified volunteers for the upcoming tax season.

These long-standing programs offer valuable help to America's taxpayers:

  • Volunteer Income Tax Assistance offers free tax return preparation to eligible taxpayers who generally earn $57,000 or less, people with disabilities and limited English-speaking taxpayers.
  • Tax Counseling for the Elderly is mainly for people age 60 or older. Although the program focuses on tax issues unique to seniors, most taxpayers can usually get free assistance. AARP participates in the TCE program through AARP Tax-Aide.

New processes make volunteering safe and easy To keep everyone safe, potential volunteers can tune in virtually to learn more about the programs, ask questions and find out which volunteer role is right for them.

Some volunteer sites will offer virtual help to taxpayers in place of face-to-face assistance. This allows volunteers to help taxpayers complete their tax returns over the phone or online. Other volunteers will conduct a virtual quality review with the taxpayer before e-filing their tax return.

While virtual volunteering will be an option this tax season, some VITA and TCE sites will still offer in-person free tax help. Safety and social distancing will be emphasized during face-to-face interactions.

There are many available volunteer roles:

  • Greeters to help screen taxpayers to determine the type of assistance they need.
  • Interpreters to provide language services.
  • Tax preparers to use electronic filing software to complete tax returns.
  • Tax coaches at some sites, to encourage taxpayers to prepare their own tax returns and help them through the process.

 Other benefits of volunteering include:

  • Volunteers can work flexible hours. Volunteers can generally choose their own hours and days to volunteer. The programs are usually open from late January through the tax filing deadline in April. Some sites are even open all year.
  • No prior experience needed. Volunteers receive specialized training to become IRS-certified. They can also choose from a variety of volunteer roles to serve taxpayers. VITA and TCE programs want volunteers of all backgrounds and ages, as well as individuals who are fluent in other languages.
  • The IRS provides free tax law training and materials. Volunteers receive training materials at no charge. The tax law training covers how to prepare basic federal tax returns electronically. The training also covers tax topics like deductions and credits.
  • Tax pros can earn continuing education credits. Enrolled agents and non-credentialed tax return preparers can earn continuing education credits when volunteering as a VITA/TCE instructor, quality reviewer or tax return preparer.

People can sign up through the Volunteer Income Tax Assistance program by visiting the sign-up page on IRS.gov. Shortly after signing up, interested participants will receive an invite to attend a virtual orientation.

IRS YouTube VideoVolunteer Income Tax Assistance Recruitment

What Others Say

View Our Client Reviews