e-News for Tax Professionals 2024-33

A coalition representing the Internal Revenue Service, state tax agencies and the nation’s tax industry today announced a new joint effort to combat the growth of scams and schemes threatening taxpayers and tax systems. The new combined effort follows a variety of increased scams and schemes that intensified during the past filing season that aimed to exploit vulnerable taxpayers while enriching fraudsters and promoters.

Convened at the request of IRS Commissioner Danny Werfel, the coalition of federal and state tax agencies, software and financial companies and key national tax professional associations agreed to a three-pronged approach. They will work to expand outreach and education about emerging scams, develop new approaches to identify potentially fraudulent returns at the point of filing and create infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems.

2. New Written Information Security Plan protects tax professionals, their businesses and clients

In the sixth installment of the “Protect Your Clients; Protect Yourself” special series, the IRS and its Security Summit partners informed tax professionals of a new, updated Written Information Security Plan (WISP) designed to help safeguard tax professionals from identity theft and data breaches. After a year-long endeavor, the new WISP is an easily comprehensible document created by and for tax and industry professionals to protect client and business data. Tax pros are required to have a security plan under federal law.

“Tax professionals play a vital role in the nation’s tax system, and they hold a vast amount of taxpayer information that can be a treasure trove to identity thieves,” said IRS Commissioner Danny Werfel. “The newly updated Written Information Security Plan provides a helpful road map for tax pros to help protect their clients and themselves from the constant threat of data breaches. The IRS and the Security Summit partners urge tax pros to stay on top of these evolving threats, and this updated plan is an important part of that effort.”

Tax professionals may do the following to report stolen data:

Share information with the appropriate state tax agency by visiting Report a Data Breach;
Review and understand the FTC data breach response requirements as part of their overall information and data security plan; and
Report the incident to their local IRS stakeholder liaison.

Visit the Data Theft information for tax professionals webpage to learn more.

3. IRS reopens Employee Retention Credit Voluntary Disclosure Program through Nov. 22

The IRS has announced the reopening of the Voluntary Disclosure Program to assist businesses in correcting erroneous received Employee Retention Credit (ERC) claims.

4. Tax pros: Special information available to provide information to clients on Employee Retention Credit Voluntary Disclosure Program

For businesses and clients with questions on the ERC Voluntary Disclosure Program, the IRS has created special information that will help provide information on the new program. The second Employee Retention Credit Voluntary Disclosure Program (VDP) is available for businesses to settle inaccurate claims without incurring penalties or interest. The second ERC-Voluntary Disclosure Program will run through Nov. 22, and allows businesses to correct improper payments at a 15% discount and avoid future consequences. The IRS continues to urge businesses to review the eligibility requirements given aggressive marketing around the pandemic-era credit.

5. Tax relief available for disaster victims in Minnesota, Vermont

Disaster-area taxpayers in Minnesota and Vermont now have until Feb. 3, 2025, to file various federal individual and business tax returns and make required payments. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA), and the same relief will be available to any other counties added later to the disaster areas. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

6. IRS accepting 2025 Compliance Assurance Process (CAP) applications

The IRS announced the opening of the application period for the 2025 Compliance Assurance Process (CAP) program, which will run from Sept. 4 to Oct. 31. Applicants will be informed of acceptance into the program in February 2025.

For more information, visit the CAP webpage.

7. Impending tax deadline for truckers Sept. 3

The IRS reminds drivers who operate large buses and trucks that, for vehicles used in July 2024, the deadline for filing Form 2290, Heavy Highway Vehicle Use Tax Return is Sept. 3.

For additional information, visit the Trucking Tax Center on IRS.gov.

8. Taxpayers can use new option to request relief for certain late-filed international documents

The IRS reminded taxpayers of the capability to submit electronic requests for relief for certain late-filed international documents. Requests can be submitted via eFax at 855-582-4842. Guidance for making each request can be found on IRS.gov using the following links:

9. Upcoming webinar for tax practitioners

The IRS offers the upcoming live webinar to the tax practitioner community:

In the know with RPO: An update from the Return Preparer Office on August 22, at 2 p.m. ET. Earn up to 1 CE credit (Federal Tax). Certificates of completion are being offered.

For more information or to register, visit Webinars for tax practitioners webpage.

10. Technical Guidance

Announcement 2024-30 announces a second Voluntary Disclosure Program for taxpayers to resolve refunds or credits for erroneous Employee Retention Credit (ERC) claims. It explains taxpayer eligibility criteria, terms, and procedures for taxpayers electing to participate in the second Voluntary Disclosure Program.

Revenue Ruling 2024-17 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by section 1274.

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