IRS updates 1099-K frequently asked questions

In an effort to provide more resources for taxpayers during this filing season, the IRS revised frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third Party Network Transactions. The FAQs now offer more general information, common situations, along with more clarity for industry and identifies which organizations should send Forms 1099-K. The FAQs are in addition to the recently …

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New IRS webpage helps employers determine Employer-Provided Childcare Tax Credit eligibility

The IRS has launched a new webpage on IRS.gov explaining the Employer-Provided Childcare Tax Credit, an incentive for businesses to provide child care services to their employees. “We’ve heard that some employers may be overlooking this important credit, so the IRS has created a new one-stop shop for information on IRS.gov that provides an easy place to learn more,” said IRS Commissioner Danny Werfel. The …


News from the Justice Department’s Tax Division

Adis Smith, a tax return preparer formerly of Maryland, was sentenced to 27 months in prison for preparing false tax returns. Smith prepared and filed each client’s tax return as a “ghost preparer,” reporting it had been self-prepared by the client rather than by Smith. In addition to the term of imprisonment, Smith was ordered to serve one year of …

person filing tax documents

Tax filing season set for Jan. 29

The IRS has announced Monday, Jan. 29, 2024, as the official start date of the nation’s 2024 tax season when the agency will begin accepting and processing 2023 tax returns. Taxpayers will continue to see helpful changes following ongoing transformation work at the IRS, including: 


 IRS provides tips for applying to the ERC’s Voluntary Disclosure Program

As part of an ongoing initiative aimed at combating dubious Employee Retention Credit (ERC) claims, the IRS recently launched a Voluntary Disclosure Program to help businesses who want to pay back the money they received after filing ERC claims in error. Qualifying clients interested in this program have until March 22 to apply using Form 15434, Application for Employee Retention Credit Voluntary Disclosure …


Contribution limits for 401(k), IRA plans increase in 2024

The amount individuals can contribute to their 401(k) plans in 2024 has increased to $23,000, from $22,500 in 2023. Also, the limit on annual contributions to an IRA increased to $7,000, from $6,500. The IRA catch up contribution limit for individuals aged 50 and older remains at $1,000 for 2024. Details on these and other retirement-related cost-of-living adjustments for 2024 are in Notice …


New ERC withdrawal process available for those concerned about ineligible claim

The IRS announces a new Employee Retention Credit claim withdrawal process for taxpayers who filed an ERC claim and are concerned about its accuracy. The new process lets certain businesses withdraw their claims to avoid getting a refund for which they’re ineligible. Withdrawn claims will be treated as if they were never filed. The IRS will not impose penalties or interest. Businesses …

IRS launches business tax account

The IRS launched the first phase of the business tax account, allowing unincorporated sole proprietors who have an active Employer Identification Number to set up an account, view their business profile and manage authorized users. Over time, the business tax account will also allow business taxpayers to check their tax payment history, make payments, view notices, authorize powers of attorney and …

money on table with "scam" written on table

Online threats, fake charities and fraud

Protect the business against online threats As the tax season approaches, the IRS and its Security Summit partners encourage taxpayers during National Tax Security Awareness Week to remain vigilant against online threats and learn best practices to protect against cybersecurity attacks. Beware of fake charities; use IRS tool to verify legitimate organizations When fake charities scam unsuspecting donors, the proceeds don’t go to those …

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 Energy credits and deductions

Clean vehicle sellers and dealers should register by Dec. 1 The IRS reminds dealers and sellers of clean vehicles to register their organizations immediately on the Energy Credits Online tool. The IRS is strongly urging sellers of clean vehicles to register by Dec. 1, 2023, if they want to be in a position to receive advance payments starting Jan. 1, 2024. …


ITIN holders can register for online access

As a reminder, taxpayers with an ITIN can access their IRS online account, which provides balance due, payment history, payment plans, tax records, and more. ITIN holders will first verify their identity through a one-time video chat process. During this verification, they will provide documentation proving their identity, address, and ITIN. Once verified, taxpayers can access many IRS services including Online Account, Get …

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Volunteers needed for free tax service programs

The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are currently recruiting volunteers for the upcoming filing season. VITA/TCE sites can be found nationwide and prepare millions of tax returns each year for low- to moderate-income taxpayers at no cost. The free tax program serves populations such as rural taxpayers, limited English speakers and senior citizens. …

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Beware of fake charities; use IRS tool to verify legitimate organizations

When fake charities scam unsuspecting donors, the proceeds don’t go to those who need the help, and those contributing to these fake charities can’t deduct their donations on their tax return. Those who wish to make donations should use the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to help find or verify qualified, legitimate charities. This news release is also available in Spanish and Simplified Chinese.


Beware: Aggressive marketing of Employee Retention Credit scams

As a barrage of aggressive broadcast advertising, direct mail solicitations and online promotions continues, the IRS renews an alert for businesses to watch out for tell-tale signs of misleading claims involving the Employee Retention Credit. The IRS advises businesses to work with a trusted tax professional, not someone promoting the credit. The IRS stepped up enforcement actions, including audits and more. …

Tax scam employee retention credit

Beware of Employee Retention Credit schemes

The IRS recently reissued a warning urging taxpayers to review the Employee Retention Credit guidelines before trying to claim the credit. Businesses should be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. “While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be …


More important filing season information

IRS Free File expanded to state return filingMillions of eligible taxpayers in more than 20 states can use the IRS’s Free File Guided Tax Preparation service to file both federal and state returns. Any taxpayer or family earning $73,000 or less in 2022 can use this free service. Beware of new filing season scams involving Form W-2 wagesNew scams urge people …

tax documents on the table

2023 tax filing season kicks off with returns due April 18

The 2023 tax filing season has started with a focus on improving service and a reminder to taxpayers to file electronically with direct deposit to speed refunds and avoid delays. The filing season news release covers efforts to increase customer service and offers tips taxpayers can follow for a smooth filing season. _________________ January 31 deadline for wage statements: Forms W-2, W-3, …


Taxpayers should review the 401(k) and IRA limit increases for 2023

The amount individuals can contribute to their 401(k) plans in 2023 will increase to $22,500 — up from $20,500 for 2022. In addition, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver’s Credit will also increase for 2023.


More taxpayers to receive a Form 1099-K

The IRS reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year. There is no change to the taxability of income – the only change is to the reporting rules for Form 1099-K. As …