Series of scams; changes to W-2s; energy tax credits; OIC guidance

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e-News for Small Business May 28, 2024

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Issue Number: 2024-11

Inside This Issue

* Consumer alert: Series of tax scams [ #First ]
* Reminder: Check business tax returns for signs of incorrect Employee Retention Credit claims [ #Second ]
* SECURE 2.0 Act changes how businesses complete Forms W-2 [ #Third ]
* Energy related tax credits [ #Fourth ]
* New version of Form 656-B, Offer in Compromise Booklet, released [ #Fifth ]
* Tax relief for taxpayers affected by tornadoes in Ohio [ #Sixth ]
* 2024 interest rates remain the same for the third quarter [ #Seventh ]
* Other tax news [ #Eighth ] [ #Fourteenth ]
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*1.? Consumer alert: Series of tax scams*
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The IRS warns businesses and individuals not to fall for scams [ [link removed] ] centered around the Fuel Tax Credit, the Sick and Family Leave Credit and household employment taxes. Some taxpayers could face steep financial penalties, audits or criminal action for improper claims.

The IRS urges people to review the guidelines, talk to a trusted tax preparer [ [link removed] ] and, in some cases, file an amended return [ [link removed] ] to remove claims for which they?re ineligible to avoid potential penalties.

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*2.? Reminder: Check business tax returns for signs of incorrect Employee Retention Credit claims*
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Some unscrupulous promoters have misrepresented eligibility rules for the Employee Retention Credit [ [link removed] ], luring well-intentioned businesses to claim the credit when they don?t qualify. The IRS is highlighting seven suspicious signs and urging businesses to seek a trusted tax professional to resolve an incorrect claim if they need to.

With ERC compliance work expanding, the IRS reminds businesses to quickly pursue the claim withdrawal process [ [link removed] ] if they need to ask the IRS not to process an ERC claim for any tax period that hasn?t been paid yet.

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*3.? SECURE 2.0 Act changes how businesses complete Forms W-2*
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Starting in tax year 2023 [ [link removed] ] changes under the SECURE 2.0 Act may affect the amounts businesses need to report on Forms W-2. SECURE 2.0 provisions that potentially affect Forms W-2 (including Forms W-2AS, W-2GU and W-2VI) are related to:


* De minimis financial incentives
* Roth Savings Incentive Match Plan for Employees, or SIMPLE
Roth Simplified Employee Pension, or SEP, Individual
* Retirement Arrangements
* Optional treatment of employer nonelective or matching contributions as Roth contributions?

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*4.? Energy related tax credits*
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*2024 program year carryover amount for the Low-Income Communities Bonus Credit*

The Treasury and the IRS issued Announcement 2024-25 [ [link removed] ] that provides the total amount of unallocated environmental justice solar and wind capacity limitation that has been carried over from the 2023 Low-Income Communities Bonus Credit program year to the 2024 program year.

See the Department of Energy program page [ [link removed] ] for details such as the 2024 Revenue Procedure, final regulations and program resources to help applicants prepare submissions.

*Guidance issued for Domestic Content Bonus Credit*

The Treasury and the IRS released Notice 2024-41 [ [link removed] ] to modify an existing safe harbor and to provide a new elective safe harbor for determining the Domestic Content Bonus Credit amounts for sourcing certain components in the energy industry.

*Register more than one user for IRS Energy Credits Online*

The IRS Energy Credits Online tool lets multiple people register [ [link removed] ] as users on behalf of their entity. For continuity of access to the clean energy online tools, the IRS encourages each entity to have more than one clean energy officer.

*Qualifying Advanced Energy Project Credit Program portal now open*

The Treasury, IRS and Department of Energy announced the DOE Qualified Advanced Energy Project Credit Program Applicant Portal (48C Portal) is now open [ [link removed] ] to register for a new round of allocations.

Applicants, including small, medium and large-sized manufacturers, must submit their concept papers by *Friday, June 21 at 5 p.m. ET*, using the 48C Portal.

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*5.? New version of Form 656-B, Offer in Compromise Booklet, released*
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The IRS recently released its April 2024 version of the Form 656-B, Offer in Compromise Booklet [ [link removed] ]. Tax professionals should always download and use the most current version of this form to avoid processing delays. The booklet also includes the forms taxpayers must complete as part of the Offer in Compromise (OIC) process. An OIC lets a taxpayer settle their tax debts for less than the full amount once the taxpayer has exhausted all other payment options. The IRS will consider each taxpayer?s unique set of facts and circumstances before accepting an OIC.

This IRS Tax Tip [ [link removed] ] explains the OIC process in detail. Additional information, including a chat bot, is available here [ [link removed] ].

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*6.? Tax relief for taxpayers affected by tornadoes in Ohio*
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The IRS announced tax relief for individuals and businesses in Ohio [ [link removed] ] that were affected by tornadoes that began *March 14, 2024*. These taxpayers now have until *Sept. 3, 2024*, to file various federal individual and business tax returns and make tax payments.

The current list of eligible localities is always on the tax relief in disaster situations [ [link removed] ] page on IRS.gov.

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*7.? 2024 interest rates remain the same for the third quarter*
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The IRS announced that interest rates [ [link removed] ] will remain the same for the calendar quarter beginning *July 1, 2024*.

For corporations, the underpayment rate is the federal short-term rate plus 3 percentage points. The overpayment rate is the federal short-term rate plus 2 percentage points.

These interest rates are computed from the federal short-term rate determined during April 2024. For details see Revenue Ruling 2024-11 [ [link removed] ].

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*8.? Other tax news*
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The following information may be of interest to individuals and groups in or related to small businesses:


* IRS announces extension of Free File program [ [link removed] ] through 2029
* Tax benefits for homeowners [ [link removed] ]
* Understand when IRS offers disaster-related tax relief [ [link removed] ]
* Year-round tax planning [ [link removed] ] pointers for taxpayers

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