e-News for Small Business Issue 2024-14

The IRS warns taxpayers not to fall victim to a new emerging scam involving buying clean energy tax credits. Unscrupulous tax return preparers are misrepresenting the rules for claiming the credits under the Inflation Reduction Act. They?re claiming credits that the taxpayer is ultimately unable to benefit from. The scam is generally targeting Form 1040 filers. Visit IRS.gov to report fraud.

Evolving identity theft scams threaten tax professionals, client data

To help protect businesses and individual taxpayers, the IRS and the Security Summit renewed a warning to tax professionals to pay extra attention to trending threats aimed at stealing business and taxpayer information.

Learn how scammers steal information: posing as new clients, using phishing emails to trick people into sharing information and elaborate schemes involving calling and texting.

2.? New FAQs: Registration for the Clean Fuel Production Credit

IRS Fact Sheet 2024-25 provides frequently asked questions related to which entities must apply for registration for the Clean Fuel Production Credit.

The Inflation Reduction Act of 2022 added a new income tax credit for clean fuel production, available beginning Jan. 1, 2025. To claim a Clean Fuel Production Credit, the taxpayer must be registered as a producer of clean fuel at the time of production.

3.? IRS tops $1 billion in past-due taxes collected from high-wealth groups

As part of continuing compliance efforts under the Inflation Reduction Act, the IRS surpassed the $1 billion mark in collections from high-wealth groups, corporations, partnerships and millionaires with past-due taxes.

As part of larger efforts taking place, the IRS has stepped up activity specifically on 1,600 individuals whose incomes were more than $1 million per year and who each owed the IRS more than $250,000 in recognized tax debt.

?We continue working to add staff and technology to ensure that the taxpayers with the highest income, including partnerships, large corporations and millionaires and billionaires, pay what is legally owed under federal law,? IRS Commissioner Danny Werfel said. ?At the same time, we are focused on improving our taxpayer service for hard-working taxpayers. The additional resources the IRS received under the Inflation Reduction Act are making a difference, both for taxpayers who play by the rules and those who don?t.?

4.? Disaster relief

Recently announced relief: Mississippi

The IRS provided tax relief for individuals and businesses in Mississippi that were affected by severe storms, straight-line winds, tornadoes and flooding that began on April 8, 2024. These taxpayers now have until Nov. 1, 2024, to file various federal individual and business tax returns and make tax payments.

Upcoming deadline reminders

Taxpayers who live or have a business in these disaster-affected areas have filing deadlines in coming months for filing 2023 returns and paying any taxes due:

July 31 for Massachusetts: Bristol and Worcester counties
Aug. 7 for Hawaii: Hawaii and Maui counties
Sept. 3 for Ohio: Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland and Union counties
Oct. 7 for Israel, the West Bank or Gaza

More information

Tax Tip: Disaster tax relief information and resources on IRS.gov, including filing extensions and tax relief
Current list of disaster areas: Tax relief in disaster situations

5.? IRS offers help with registration for clean energy and CHIPS credits

The IRS is offering office hours through Microsoft Teams for entities to ask questions about the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is required to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act.

Register at the links below. Attendees can come for as much time as they?d like during the sessions, which run from 1 ? 2:30 p.m. ET.

July 17
July 31
Aug. 14
Sept. 4
Sept. 18
Oct. 2

6.? Custodial brokers must report sales and exchanges of digital assets

The Treasury and the IRS issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These reporting requirements will help taxpayers file accurate tax returns with respect to digital asset transactions, which are already subject to tax under current law. See more information in Fact Sheet 2024-23.

7.? Other tax news

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

Electronic Tax Administration Advisory Committee 2024 Annual Report includes recommendations to Congress and IRS
Energy efficient home improvements could help people reduce energy bills and taxes
IRS sending settlement offer letters in July to certain taxpayers who participated in Syndicated Conservation Easement transactions
Marijuana?remains a Schedule I controlled substance; Internal Revenue Code Section 280E still applies
National Taxpayer Advocate issues mid-year report to Congress
Treasury and IRS announce final regulations on how to report and pay the corporate stock repurchase excise tax

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