e-News for Tax Professionals 2024-40

Disaster-area taxpayers in parts of Illinois affected by severe storms and flooding that began on July 13 have until Feb. 3, 2025, to file various individual and business tax returns and make tax payments. Currently, this includes Cook, Fulton, Henry, St. Clair, Washington, Will and Winnebago counties. The same relief will be available to other Illinois localities added later to the disaster area.
Taxpayers in Washington state affected by wildfires that began on June 22 now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. Currently, this includes the Confederated Tribes and Bands of the Yakama Nation. Individuals and households that reside or have a business in these localities qualify for tax relief. The same relief will be available to any other localities added later to the disaster area.
IRS declared tax relief in seven states impacted by Hurricane Helene. Individuals and businesses in all of Alabama, Georgia, North and South Carolina, as well as portions of Florida, Tennessee and Virginia have until May 1, 2025, to file various federal individual and business tax returns and make required payments.

The IRS offers relief to any area designated by the Federal Emergency Management Agency (FEMA), and the same relief will be available to other states and localities that receive FEMA disaster declarations. The current list of eligible localities is available on the Tax relief in disaster situations page on IRS.gov.

2. Dyed diesel penalty relief granted because of Hurricane Helene

In response to Hurricane Helene-related disruptions, the IRS will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway throughout Alabama, Georgia, North Carolina and South Carolina. Selected counties in Florida, Tennessee and Virginia will be subject to the same rules.

3. IRS deploys 500 employees to help FEMA with Hurricane Helene efforts

The IRS deployed over 500 workers to assist with the Federal Emergency Management Agency (FEMA) disaster relief efforts to aid Hurricane Helene victims. To assist FEMA with phone operations, the IRS sent representatives from Dallas and Philadelphia earlier this week. Employees of the IRS will take the initial information from callers, assist with federal relief as IRS Criminal Investigation (IRS-CI) agents will help with search and rescue efforts and other relief work.

4. Volunteers needed to provide free tax services

The Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are currently seeking volunteers for the upcoming filing season. The IRS’s peak period for enlisting volunteers is October through January. Individuals can enroll during other months, but their information will be held until IRS partners are accepting volunteers for the next filing season. No experience is necessary to become a VITA or TCE volunteer; free specialized training is provided by the IRS. Available positions are not limited to tax preparation and can include interpreters, greeters and computer specialists. Volunteers have the option to participate at both in-person and virtual sites. Hours are flexible with many sites operating at night and on weekends. Locating a nearby free tax help site is simple. They can often be found in local libraries, community centers, schools and churches. Locate the VITA/TCE site closest to you by using the VITA Locator Tool.

For additional information or to learn more about becoming a VITA/TCE volunteer, visit IRS tax volunteers.

5. IRS invites public feedback on draft Form 7217

Tax Pros: The IRS welcomes public feedback on draft Form 7217 and its accompanying instructions. On Aug. 28, the IRS released draft Form 7217, with the new title “Partner’s Report of Property Distributed by a Partnership.” The new tax form will be used for distributions to partners made in the 2024 tax year. The form’s objective is to document every property distribution that a partner gets from a partnership. According to draft instructions posted by the IRS on Sept. 3, any partner receiving a property distribution from a partnership is required to file Form 7217. Comments can be submitted to the IRS about drafts, instructions or publications on the IRS Draft tax forms page.

6. 2024 IRS Nationwide Tax Forum Online to launch Oct. 14

The 2024 IRS Nationwide Tax Forum Online will go live on Oct. 14, providing tax professionals access to interactive video seminars and downloadable resources and materials from the 2024 IRS Nationwide Tax Forum. This year, the Nationwide Tax Forum Online will launch 18 new seminars featuring IRS subject matter experts offering insights into the latest developments in tax law and IRS procedures. Courses can be taken for continuing education (CE) credit for a fee of $29, or they can be reviewed for free (no CE credit). Don’t miss this opportunity to stay informed about important tax changes and further your professional knowledge. Visit the Nationwide Tax Forum Online website to learn more.

7. IRS launches “Corporate Group Mailbox” pilot program

As part of its continuous transformation efforts to increase the number of online tools and enhance user experiences, the IRS’s Independent Office of Appeals has initiated a new pilot program. The “Corporate Group Mailbox” pilot program is designed to improve secure messaging for large business taxpayers with multiple representatives. The use of this new feature permits qualified business taxpayers with a team of representatives to request a Group Mailbox to communicate with the Appeals employee assigned to their case. The pilot program is available now through March 31.

Corporate Group Mailboxes will help Appeals deliver:

Prompt taxpayer service with 24/7 online access to secure digital messages
Streamlined communication with central access available for multiple authorized individuals
Secure records sharing and 
Faster case resolution

Large business taxpayers represented by multiple individuals with an open case in Appeals should ask their assigned Appeals employee if this pilot is available for them.

8. News from the Justice Department’s Tax Division

The United States issued a permanent injunction in the U.S. District Court for the Southern District of Florida to permanently bar Gregory Salgado and his tax return preparation business from preparing federal income tax returns for others. According to the complaint, Salgado entered a guilty plea in 2012 for filing a false return for himself and another taxpayer. The IRS levied civil penalties against Salgado totaling more than $500,000 for intentionally underreporting tax on returns he prepared for customers. The complaint alleges neither Salgado’s conviction, 33-month incarceration nor civil penalties corrected his behavior. After his release from prison in August 2015, Salgado continued to prepare thousands of returns. Salgado is required by the court’s order to pay $85,000 and notify all the individuals for whom he or his business prepared federal tax returns between January 2019 and the present of the injunction.

9. Technical Guidance

Notice 2024-70 explains the circumstances under which the four-year replacement period under section 1033(e)(2) is extended for livestock sold on account of drought.

Notice 2024-72 postpones various time-sensitive deadlines for taxpayers affected by the terrorist attacks in Israel throughout 2023 and 2024.

Notice 2024-73 provides guidance regarding discrete issues related to the application of the nondiscrimination rules of section 403(b)(12) with respect to the ERISA long-term, part-time (LTPT) employee rules for a section 403(b) plan.

Revenue Ruling 2024-23 holds that European Energy Exchange is a “qualified board or exchange” within the meaning of section 1256(g)(7)(C).

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