Employee Retention Credit, report who owns your business, unannounced revenue officer visits

Bookmark and Share [ [link removed] ]

a { color:#0073AF !important;} a:hover { color:#004673 !important;}
IRS.gov Banner
e-News for Small Business August 4, 2023

Tax Resources for Small Business

Small Business Self-Employment Center [ [link removed] ]

Small Business Forms & Instructions [ [link removed] ]

Small Business Tax Workshops, Meetings and Seminars [ [link removed] ]

Webinars for Small Businesses [ [link removed] ]

E-file Employment Tax Forms [ [link removed] ]

Businesses with Employees [ [link removed] ]

Self-Employed Individuals Tax Center [ [link removed] ]

S Corporations [ [link removed] ]

________________________________________________________________________

Other Resources

IRS Home Page [ [link removed] ]

A-Z Index for Business [ [link removed] ]

Forms, Instructions & Publications [ [link removed] ]

Filing Your Taxes [ [link removed] ]

Pay Online [ [link removed] ]

Taxpayer Advocate Service [ [link removed] ]

Retirement Plans for Small Entities and Self-Employed [ [link removed] ]

Tax Information for Charities [ [link removed] ]
and Other Non-Profits [ [link removed] ]

State Government Websites [ [link removed] ]

SSA/RS Reporter [ [link removed] ]

IRS Social Media [ [link removed] ]

?

?


Issue Number: 2023-10

Inside This Issue

* New phase of Employee Retention Credit work to deal with growing fraud; watch out for aggressive marketing [ #First ]
* New requirement for most businesses beginning January 1, 2024 [ #Second ]
* Info to help gig workers stay on top of their taxes [ #Third ]
* Major IRS policy change ending unannounced RO visits [ #Fourth ]
* IRS launches paperless processing initiative [ #Fifth ]
* ID thieves bombard taxpayers with fraudulent emails and texts this summer [ #Sixth ]
* Video tax tip for those making extra cash selling goods or providing services [ #Seventh ]
* IRS invites public suggestions on ways to improve dispute resolution programs [ #Eighth ]
* IRS encourages those with extensions to file soon [ #Ninth ]
* Vermont flooding victims now eligible for tax relief [ #Tenth ]
* Subscribe to IRS social media and e-news and stay current on tax news [ #Eleventh ]
* Other tax news [ #Twelfth ] [ #Fourteenth ]
________________________________________________________________________

*1.??New phase of Employee Retention Credit work to deal with growing fraud; watch out for aggressive marketing*
________________________________________________________________________

With the IRS making substantial progress in the ongoing effort related to Employee Retention Credit claims [ [link removed] ], Commissioner Danny Werfel said the agency has entered a new phase of increasing scrutiny on suspicious submissions while renewing consumer warnings against aggressive marketing.

Many businesses legitimately apply for the credit, but aggressive marketing has overshadowed the program. The period of eligibility for the credit for affected businesses is very limited, covering only between *March 13, 2020*, and *December 31, 2021*.

The IRS recently updated the ERC frequently asked questions (FAQs) [ [link removed] ] to provide general information about eligibility, claiming the credit, scams and more.

Also, the IRS reminds anyone who improperly claims the ERC that they must pay it back, possibly with penalties and interest. A business or tax-exempt group could find itself in a much worse cash position if they have to pay back the credit than if they had not claimed the credit in the first place.?

Back to top [ #top ]

________________________________________________________________________

*2.??New requirement for most businesses beginning January 1, 2024*
________________________________________________________________________

Beginning on *January 1, 2024*, many corporations, limited liability companies, and other entities created or registered to do business in the United States must report information about their beneficial owners?the persons who ultimately own or control the company?to the U.S. Department of the Treasury?s Financial Crimes Enforcement Network (FinCEN).

FinCEN.gov/BOI [ [link removed] ] provides?guidance to help the small business community understand these requirements and includes:


* Answers to Frequently Asked Questions [ [link removed] ]
* Infographics about Key Filing Dates [ [link removed] ] and Key Questions [ [link removed] ]
* An Introductory Video [ [link removed] ] and more detailed Informational Video [ [link removed] ]

Contact FinCEN [ [link removed] ] for more information and answers to any questions.

Back to top [ #top ]

________________________________________________________________________

*3.??Info to help gig workers stay on top of their taxes*
________________________________________________________________________

The gig economy - also called sharing economy or access economy - is a popular way for people to earn money by providing on-demand work, goods or services. Some people take up a side hustle on a part-time basis, and for others do it full-time.

Check out the IRS?s gig economy tax tip [ [link removed] ] for information on:


* Taxable income
* Proper worker classification
* Paying the right amount of taxes throughout the year

Back to top [ #top ]

________________________________________________________________________

*4.??Major IRS policy change ending unannounced RO visits*
________________________________________________________________________

The IRS announced a major policy change [ [link removed] ] that ends most unannounced visits to taxpayers by agency revenue officers (ROs) to reduce public confusion and enhance overall safety measures for taxpayers and employees.

This change is part of a larger effort to transform IRS operations following passage of the Inflation Reduction Act last year and the creation of the new IRS Strategic Operating Plan [ [link removed] ] in April.

Instead of making an unannounced or unscheduled field visit, ROs will send an appointment letter to schedule an initial or follow-up meeting with the taxpayer. Revenue officer unannounced visits will only be done in a few unique circumstances.

The rest of the IRS collection process will remain the same and will depend on the facts and circumstances of the case. Information on the IRS collection process is available on Topic No. 201, The Collection Process [ [link removed] ].

Back to top [ #top ]

________________________________________________________________________

*5.??IRS launches paperless processing initiative*
________________________________________________________________________

Paper-based processes have long hampered the IRS and frustrated taxpayers. Using resources from the Inflation Reduction Act, the IRS has made significant progress in adopting new technology that automates the scanning of millions of paper returns, and taxpayers are now able to respond to more notices online.

In the next phase of its modernization, the IRS is accelerating paperless processing efforts. Plans are to ensure that by filing season 2024, taxpayers will be able to go paperless if they choose to do so, and by filing season 2025, the IRS will achieve paperless by processing digitizing all paper-filed returns when received.

The IRS paperless processing initiative [ [link removed] ] will eliminate up to 200 million pieces of paper annually, cut processing times in half and expedite refunds by several weeks.

Back to top [ #top ]

________________________________________________________________________

*6.??ID thieves bombard taxpayers with fraudulent emails and texts this summer*
________________________________________________________________________

Identity thieves continue to inundate taxpayers with emails and text messages promising tax refunds or offers to help 'fix' tax problems. The latest email schemes touch on a variety of topics, but many center around promises about a third round of Economic Impact Payments.

Like many scams, these emails urge people to click on a link so they can complete their "application." Instead, it takes the taxpayer to a website where identity thieves will try to harvest valuable personal information.

IRS news release 2023-131 [ [link removed] ] details other current schemes and scams including the:


* Claim your tax refund online
* Delivery service at your door
* Help you fix-it text
* You may be eligible for the Employee Retention Credit (ERC) claim

Remember, the IRS never initiates contact with taxpayers by email, text or social media regarding a bill or tax refund.

Back to top [ #top ]

________________________________________________________________________

*7.??Video tax tip for those making extra cash selling goods or providing services*
________________________________________________________________________

People who sell items or provide a service and get paid by a payment card or through a payment app may get a Form 1099-K reporting these transactions.

IRS video tax tip: ?Are you making extra cash selling stuff or providing a service? [ [link removed] ]? provides taxpayers tips on how to report this type of income or correct erroneous 1099-Ks.

Back to top [ #top ]

________________________________________________________________________

*8.??IRS invites public suggestions on ways to improve dispute resolution programs*
________________________________________________________________________

The IRS invites public input on improvements to certain post-filing alternative dispute resolution (ADR) programs [ [link removed] ] currently offered to taxpayers. The IRS is committed to resolving disputes with taxpayers without a costly legal process whenever possible.

Public comments can be sent through *August 25, 2023*.

Back to top [ #top ]

________________________________________________________________________

*9.??IRS encourages those with extensions to file soon*
________________________________________________________________________

The IRS reminds taxpayers with an extension to file as soon as possible [ [link removed] ] to take advantage of special tools available on IRS.gov.

Every year millions of taxpayers postpone filing their tax returns by requesting an extension. While taxes may not be the first thing to come to mind in the summertime, it is an ideal time to start tax planning. IRS.gov is the fastest and most convenient way to get tax-related information and help. The online tools are available any time, so taxpayers can use them at their convenience.

Back to top [ #top ]

________________________________________________________________________

*10.? Vermont flooding victims now eligible for tax relief*
________________________________________________________________________

Flooding victims anywhere in Vermont [ [link removed] ] now have until *November 15, 2023*, to file various individual and business tax returns and make tax payments.

The tax relief postpones various tax filing and payment deadlines that occurred starting on or after *July 7, 2023*. As a result, affected individuals and businesses will have until November 15, to file returns and pay any taxes that were originally due between July 7 and November 15.

Back to top [ #top ]

________________________________________________________________________

*11.??Subscribe to IRS social media and e-news and stay current on tax news*
________________________________________________________________________

It?s easy to stay up to date on tax information year-round [ [link removed] ] with IRS verified social media accounts and e-news services. Taxpayers can get tips, guidance and the latest tax law news delivered to their social feed or inbox.

Back to top [ #top ]

________________________________________________________________________

*12.??Other tax news*
________________________________________________________________________

The following information may be of interest to individuals and groups in or related to small businesses:


* IRS continues reopening closed Taxpayer Assistance Centers [ [link removed] ]; begins special series of Community Assistance Visits to help taxpayers in 8 states to expand service for people who aren?t near agency offices
* Electronic Tax Administration Advisory Committee issues annual report [ [link removed] ] with 26 recommendations to Congress and IRS
* National Taxpayer Advocate issues midyear report [ [link removed] ] to Congress
* IRS sends special mailing to taxpayers in certain disaster areas [ [link removed] ]

Back to top [ #top ] [ #top ]

________________________________________________________________________

FaceBook Logo [ [link removed] ]??YouTube Logo [ [link removed] ] ?Instagram Logo [ [link removed] ]? Twitter Logo [ [link removed] ] ?LinkedIn Logo [ [link removed] ]

________________________________________________________________________

Thank you for subscribing to this IRS email service.

This message was distributed automatically from the mailing list e-News for Small Business. Please Do Not Reply To This Message.



?

________________________________________________________________________

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com [ [link removed] ].

This service is provided to you at no charge by the Internal Revenue Service (IRS) [ [link removed] ].


body .abe-column-block {min-height: 5px;} ________________________________________________________________________

This email was sent to [email protected] by: Internal Revenue Service (IRS) ? Internal Revenue Service ? 1111 Constitution Ave. N.W. ? Washington DC 20535 GovDelivery logo [ [link removed] ]
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;}