e-News for Small Business Issue 2024-18

The IRS reminds employers who offer educational assistance programs that they can also use them to help pay for their employees’ student loan obligations through Dec. 31, 2025.

Though educational assistance programs have been available for many years, the option to use them to pay for workers’ student loans has only been available for payments made after March 27, 2020.

2. Estimated tax payments due Sept. 16; disaster-area taxpayers have more time

The IRS reminds small businesses and self-employed taxpayers the deadline to make third quarter estimated tax payments is Sept. 16, 2024.

Taxpayers affected by disasters in 17 states, Puerto Rico and the Virgin Islands may automatically qualify for a delayed tax-payment deadline.

Get more information on Direct Pay and options to pay by debit card, credit card or digital wallet at IRS.gov/payments and through the IRS2Go app.

3. Disaster relief and preparedness

Ernesto

The IRS announced tax relief for individuals and businesses throughout Puerto Rico and the U.S. Virgin Islands affected by Tropical Storm Ernesto that began on Aug. 13, 2024. These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.

South Dakota

The IRS announced tax relief for individuals and businesses in South Dakota that were affected by severe storms, straight-line winds and flooding that began on June 16, 2024. These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.

September is National Preparedness Month

With the peak of hurricane season arriving and an elevated wildfire risk across much of the West, the IRS reminds taxpayers to develop an emergency preparedness plan or, if they already have one, to update it for 2024.

4. Application period open for Qualifying Advanced Energy Project Tax Credit

The Treasury, the IRS and the U.S. Department of Energy (DOE) announced that they received more than 800 concept papers — project proposals — seeking a total of nearly $40 billion in tax credits, representing $200 billion in total project investments, for Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) Program.

Applicants who submitted a concept paper, whether they received an encourage or discourage letter, may submit a full application on the 48C Portal. Applications are due by Friday, Oct. 18 11:59 pm ET.

Applicants can register for a webinar hosted by DOE, IRS and Treasury on Monday, Sept. 16, at 1:00 pm ET.

5. Do an end-of-summer tax checkup to avoid tax surprises next year

The IRS urges taxpayers to make tax withholding or payment updates to avoid a potential surprise next year at tax time.

People who should be especially careful are:

Gig economy workers
Those with a “side hustle”
Anyone earning income not subject to withholding

Taxpayers can use the IRS Tax Withholding Estimator to figure out the amount of federal income tax they should pay during the year.

6. Where’s my elective pay or transfer credit registration number

Taxpayers who are waiting on approval of their elective pay or transfer credit registration package can contact the IRS.

The IRS wants to hear from taxpayers who submitted a pre-filing registration package and:

The extended due date for their annual tax return is approaching in 60 days or fewer, and
They submitted a registration package more than 90 days ago and the status of their registration package has not changed within the last 30 days.

Please contact the IRS by email at [email protected] with the following information:

Subject line: Where's My Registration Number
Name, last four digits of EIN and address of the registering entity
Date the registration package was submitted (or an estimated date)
Name and telephone number for a contact person

Note: The contact person must be authorized to receive private taxpayer information about the registering entity: an officer, trustee, or representative (IRS Form 2848, Power of Attorney) of the registering entity.

7. Interest rates remain the same for the fourth quarter of 2024

The IRS announced interest rates will remain the same for the calendar quarter beginning Oct. 1, 2024.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.

The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates are computed from the federal short-term rate determined during July 2024. See Revenue Ruling 2024-18 for details.

8. Other tax news

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

Security Summit partners conclude special campaign with reminders to protect tax professionals from identity theft, security threats
IRS reminder for schoolteachers: Up to $300 in classroom expenses deductible for 2024

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