Communications alert: Tax relief for storm victims; Employee Retention Credit; Simple Notice Initiative; Digital assets; Tax form updates; IRS Energy Credits Online (ECO); and more
Key notes:
- Tax relief for those impacted by Connecticut storms: The Internal Revenue Service announced tax relief for individuals and businesses in parts of Connecticut affected by severe storms, flooding and a potential dam breach that began on Jan. 10.
- IRS continues to increase compliance activity to protect against fraud: The Internal Revenue Service renewed calls for businesses to review their eligibility for the Employee Retention Credit as the agency’s law enforcement arm, Criminal Investigation (CI), begins a series of educational sessions for tax professionals.
- Shorter, clearer letters to reduce taxpayer confusion: The Internal Revenue Service announced work is underway on the Simple Notice Initiative, a sweeping effort to simplify and clarify about 170 million letters sent annually to taxpayers.
- IRS reminds taxpayers to properly report all digital assets: Everyone who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120 and 1120S must check one box answering either "Yes" or "No" to the digital asset question.
- Limited group of tax exempt organizations won't be able to electronically file certain forms: IRS system upgrades mean e-filing of Forms 990-T and Forms 1120-POL (including returns on extension) with due dates from Jan. 15, 2024, to March 15, 2024, are currently unavailable.
- Registration tool helps taxpayers take advantage of clean energy tax credits: The Internal Revenue Service and the Treasury Department reached a major milestone in implementation of key provisions in the Inflation Reduction Act with more than 1,000 projects registered through the new IRS Energy Credits Online (ECO) tool.
News releases:
- IRS: Connecticut taxpayers impacted by storms qualify for tax relief; various deadlines postponed to June 17
- IRS continues work on Employee Retention Credit; new IRS CI education sessions come as agency urges businesses to review VDP, withdrawal program for questionable claims
- IRS launches Simple Notice Initiative redesign effort
- Taxpayers should continue to report all cryptocurrency, digital asset income
- IRS and Treasury reach major milestone implementing key provisions using the IRS Energy Credits Online Elective Pay and Transferability Tool
Tax tip: EITC, Free File
- Everyone eligible for the Earned Income Tax Credit qualifies for the free tax software of #IRS Free File. Keep more #EITC in your pocket: www.irs.gov/freefile
- If you qualify for the Earned Income Tax Credit, you can claim it for free with #IRS Free File. Keep more #EITC in your pocket: www.irs.gov/freefile
- The Earned Income Tax Credit is for workers who don't earn a lot. If you qualify, #IRS Free File makes it free and easy to claim. Keep more #EITC in your pocket: www.irs.gov/freefile
- Many working people qualify for the Earned Income Tax Credit. Use #IRS Free File and keep more #EITC in your pocket: www.irs.gov/freefile
EITC AD, Direct Deposit #FriendlyReminders
EITC Awareness Day (1/26)
EITC Awareness Day (1/26)
- One-third of workers eligible for the Earned Income Tax Credit are new to the credit each year. #FriendlyReminder: You can help #IRS spread the word on #EITC Awareness Day to make sure no one misses this benefit: https://ow.ly/FJRr50QulVt
- Many working people qualify for the #IRS Earned Income Tax Credit. Do you? Do your loved ones? On #EITC Awareness Day, spread a #FriendlyReminder to anyone who may qualify: https://ow.ly/FJRr50QulVt
EITC (military)
- Members of the military can include their combat pay as earned income for purposes of the Earned Income Tax Credit. Help #IRS spread the word: www.irs.gov/eitc
- Military families have options when deciding whether to include combat pay to claim the Earned Income Tax Credit. Help #IRS spread the word so no one misses out: www.irs.gov/eitc
- #IRS reminds members of the military and veterans that they may qualify for the Earned Income Tax Credit. Don’t miss the #EITC — file a tax return. See: www.irs.gov/eitc
Direct Deposit
- Eight out of 10 taxpayers get their refunds by using #IRS direct deposit. Why? Here’s a #FriendlyReminder that electronic filing combined with direct deposit is the fastest way to get your federal tax refund. www.irs.gov/directdeposit
- #IRS direct deposit is the fastest way to get your refund – but a #FriendlyReminder to deposit refunds only into accounts that are in your name, your spouse’s name or both if a joint account. www.irs.gov/directdeposit
EITC (refunds, non-filer/homelessness, EITC Assistant)
Refund timing
Non-filer/homelessness
EITC Assistant
Refund timing
- If you claim an #EITC or ACTC, the law requires #IRS to hold the tax refund for a period to review. Barring other issues, the first of these refunds should be available by Feb. 27, 2024, if using direct deposit. See www.irs.gov/refundtiming
- As in prior years, by law #IRS must hold refunds claiming an #EITC or ACTC. That means taxpayers should see the first refunds in their accounts by Feb. 27, 2024, if using direct deposit. See www.irs.gov/refundtiming
Non-filer/homelessness
- For working people experiencing homelessness, filing a tax return often carries an added bonus — getting an #IRS refund based on various tax benefits, especially the Earned Income Tax Credit, or #EITC. See www.irs.gov/eitc
- The Earned Income Tax Credit, or #EITC, can be a powerful tool to combat hunger and homelessness in communities nationwide. Help #IRS spread the word: www.irs.gov/eitc
- Experiencing homelessness shouldn’t stop someone from claiming valuable tax benefits like the Earned Income Tax Credit, or #EITC. A person may list the address of a friend or trusted service provider — like a shelter — on an #IRS return. www.irs.gov/eitc
EITC Assistant
- Each year, one third of workers become eligible for the #EITC. An #IRS tool can help anyone figure out their eligibility: www.irs.gov/eitcassistant
- Millions of workers and families benefit from the #EITC. If you’re unsure whether you qualify or not, check out the EITC Assistant on the #IRS website: www.irs.gov/eitcassistant
- Many working people qualify for the #IRS Earned Income Tax Credit. Do you? Do your loved ones? Check eligibility with the #EITC Assistant: www.irs.gov/eitcassistant
- #EITC is a refundable credit – that means if you qualify and claim it, you could pay less in taxes or get a bigger #IRS refund. Check your eligibility today at www.irs.gov/eitcassistant
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