New and draft forms, instructions and publications on IRS.gov
New forms
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Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
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Form 940 (Schedule A), Multi-State Employer and Credit Reduction Information
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Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund
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Form 943, Employer's Annual Federal Tax Return for Agricultural Employees
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Form 944, Employer's Annual Federal Tax Return
Draft forms
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Form W-4P, Withholding Certificate for Pension or Annuity Payments
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Form 941, Employer's Quarterly Federal Tax Return
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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
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Inst 940, Instructions for Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
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Inst 941-X, Instructions for Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund
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Inst 943, Instructions for Form 943, Employer's Annual Federal Tax Return for Agricultural Employees
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Inst 944, Instructions for Form 944, Employer's Annual Federal Tax Return
New publications
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Pub 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G
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Pub 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters
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Pub 5258, Affordable Care Act (ACA) Information Returns (AIR) Submission Composition and Reference Guide
Draft Publications
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Pub 15, Circular E, Employer's Tax Guide
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Pub 15-T, Federal Income Tax Withholding Methods
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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 |
|
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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.
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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
