Improper ERC claims, abusive partnership transactions, impersonation scams; education assistance FAQs; childcare tax credit; late filing options; energy credits

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e-News for Small Business June 25, 2024

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Issue Number: ?2024-13

Inside This Issue

* IRS in new stage of ERC work; Businesses should fix incorrect claims now [ #First ]
* Guidance issued on using retirement plan distributions for emergencies [ #Second ]
* New FAQs for employers offering education assistance programs [ #Third ]
* Businesses: Childcare Tax Credit is worth up to $150,000 [ #Fourth ]
* IRS focusing on abusive use of partnerships [ #Fifth ]
* IRS warns seniors about scammers posing as government agencies [ #Sixth ]
* Still haven?t filed a 2023 tax return? Review these options [ #Seventh ]
* Disaster tax relief for Kentucky and West Virginia [ #Eighth ]
* Energy credits [ #Ninth ]
* IRS Careers website revamped for job seekers [ #Tenth ]
* Revised draft Form 6765 released [ #Eleventh ]
* 2024 IRS Nationwide Tax Forum: seminars, special events for tax professionals [ #Twelfth ]
* Other tax news [ #Thirteenth ]

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*1.? IRS in new stage of ERC work; Businesses should fix incorrect claims now*
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After a detailed review to protect businesses, the IRS plans to deny thousands of improper high-risk Employee Retention Credit claims [ [link removed] ] while starting a new round of processing lower-risk claims to help eligible taxpayers.

The IRS urges businesses to review IRS resources and consult their trusted tax professional [ [link removed] ] for help with resolving incorrect claims.


* ERC Eligibility Checklist [ [link removed] ] (interactive version and a printable guide [ [link removed] ]) includes cautions about common areas of misinformation and links to facts and examples.
* 7 warning signs ERC claims may be incorrect [ [link removed] ] outlines tactics that unscrupulous promoters have used and why their points are wrong.
* Frequently asked questions about the Employee Retention Credit [ [link removed] ] includes eligibility rules, definitions, examples and more.

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*2.? Guidance issued on using retirement plan distributions for emergencies*
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The IRS issued new guidance on exceptions to the 10% additional tax when taking early permissible retirement plan distributions [ [link removed] ] for emergency personal expenses and for victims of domestic abuse. These provisions became effective *Jan. 1, 2024*.

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*3.? New FAQs for employers offering education assistance programs*
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The IRS issued frequently asked questions in FS-2024-22 related to educational assistance programs [ [link removed] ]. Taxpayers may exclude certain educational assistance benefits from their gross income if they are provided under an educational assistance program.

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*4.? Businesses: Childcare Tax Credit is worth up to $150,000*
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The Employer-Provided Childcare Tax Credit is an incentive for businesses [ [link removed] ] to provide childcare services to employees. To be eligible, an employer must have paid or incurred qualified childcare costs during the tax year to provide childcare services to employees.

Find out more at IRS Employer-Provided Childcare Tax Credit [ [link removed] ] including rules on expenses and facilities, and how to claim the credit on Form 8882 [ [link removed] ].

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*5.? IRS focusing on abusive use of partnerships*
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The IRS announced new steps to combat abusive partnership transactions [ [link removed] ] that help wealthy taxpayers avoid paying what they owe. A new group in the Office of Chief Counsel will focus on developing guidance on partnerships, including closing loopholes. The office will work closely with a pass-through group in the Large Business and International division that will be established this fall.

Treasury and the IRS issued a fact sheet on the inappropriate use of partnership rules [ [link removed] ] following discoveries by IRS audit teams.

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*6.? IRS warns seniors about scammers posing as government agencies*
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The IRS issued a warning about the rising threat of impersonation scams [ [link removed] ].

The warning was part of a wider effort before World Elder Abuse Awareness Day on *June 15*. These efforts aim to foster a better understanding of the neglect and abuse faced by millions of older adults, focusing attention on the contributing cultural, social, economic and demographic factors.

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*7.? Still haven?t filed a 2023 tax return? Review these options*
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The IRS has options to help taxpayers who missed the April 15 deadline [ [link removed] ] to file their 2023 federal income tax return. Get information on:


* Adjusting withholding
* Payment options
* Qualifying for automatic extensions
* Qualifying for penalty relief

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*8.? Disaster tax relief for Kentucky and West Virginia*
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Tax relief was announced for individuals and businesses in parts of Kentucky [ [link removed] ] and West Virginia [ [link removed] ] affected by severe storms, straight-line winds, tornadoes, landslides and mudslides that began on *April 2, 2024*.

These taxpayers have until *Nov. 1, 2024*, to file various federal individual and business tax returns and make payments.

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*9.? Energy credits*
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The IRS and Treasury recently issued guidance on energy incentives.


* Final regulations on the prevailing wage and apprenticeship requirements [ [link removed] ] related to increased credit or deduction amounts for certain clean energy incentives.
* Revenue Procedure 2024-26 for the submission of information by qualified manufacturers [ [link removed] ] of new clean vehicles and dealers and sellers of new clean vehicles and previously owned clean vehicles. The guidance provides procedures for qualified manufacturers to submit attestations, certifications and documentation demonstrating their compliance with rules regarding new clean vehicles placed in service after *Dec. 31, 2024*.
* Notice 2024-48, which includes information taxpayers may use to determine whether they meet certain requirements [ [link removed] ] under the Statistical Area Category or the Coal Closure Category in Notice 2023-29 for purposes of qualifying for the Energy Community Bonus Credit. The IRS also updated the frequently asked questions for energy communities [ [link removed] ].

Find more information on the Inflation Reduction Act of 2022 [ [link removed] ] page on IRS.gov.

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*10.? IRS Careers website revamped for job seekers*
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The IRS Careers website is designed to connect job seekers with IRS opportunities [ [link removed] ]. Part of the ongoing hiring campaign enabled by Inflation Reduction Act funding, the IRS modernized its primary vehicle to publicize job opportunities and hire new talent.

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*11.? Revised draft Form 6765 released*
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Form 6765, Credit for Increasing Research Activities, also known as the Research Credit, was revised to ease taxpayer burden [ [link removed] ] and improve the information received for tax administration.

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*12.? 2024 IRS Nationwide Tax Forum: seminars, special events for tax professionals*
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The continuing education agenda is available [ [link removed] ] for the 2024 IRS Nationwide Tax forum featuring 45 seminars on topics that will help tax professionals serve clients.

Attendees can also attend special events [ [link removed] ].

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


* Builders of energy efficient homes [ [link removed] ] may qualify for a valuable tax credit
* IRS self-service payment plan [ [link removed] ] options
* Mediation can help taxpayers settle tax issues [ [link removed] ]
* Newlyweds tax checklist [ [link removed] ]

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