ERC claims; hurricane scams; digital assets; disaster relief; Direct File
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Tax Resources for Small BusinessSmall Business Self-Employment Center Small Business Forms & Instructions Small Business Tax Workshops, Meetings and Seminars Self-Employed Individuals Tax Center Other ResourcesForms, Instructions & Publications Retirement Plans for Small Entities and Self-Employed Tax Information for Charities
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Issue Number: 2024-21Inside This Issue
IRS accelerates work on Employee Retention Credit claimsThe IRS continues working Employee Retention Credit claims for small businesses and others, with processing underway on about 400,000 claims, representing about $10 billion of eligible claims. “The IRS understands the vital importance of Employee Retention Credits payments for struggling small businesses, and we are continuing to make important progress on one of the most complex tax administration provisions we’ve ever had,” said IRS Commissioner Danny Werfel. “The IRS is working diligently to process ERC claims as quickly as possible, while guarding against improper payments driven by unscrupulous marketers.” The IRS reminds businesses that received ERC payments to recheck eligibility rules and consider the second Voluntary Disclosure Program or the Claim Withdrawal Program to resolve incorrect claims. IRS warns of charity scams following recent hurricanesThe IRS cautions taxpayers about scammers who use fake charities to get money and sensitive personal and financial data from unsuspecting donors. Those interested in making donations should check the Tax Exempt Organization Search tool on IRS.gov to help find or verify qualified, legitimate charities. People encountering a fake or suspicious charity should check out the FBI’s resources on charity and disaster fraud. Find more info on how to protect against charity scams. IRS requests comments on Form 1099-DA, related to digital assetsThe Federal Register notice posted on Oct. 7, 2024, starts the official 30-day comment period for the draft Form 1099-DA, Digital Asset Proceed From Broker Transactions. The IRS invites the public and other federal agencies to comment on information collection requirements related to digital asset proceeds from broker transactions. Submit comments by Wednesday, Nov. 6, 2024. See final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency for more information. Regulations issued to identify syndicated conservation easement transactions as abusive tax transactionsThe Treasury and IRS issued final regulations identifying certain syndicated conservation easement transactions as "listed transactions" – abusive tax transactions that must be reported to the IRS. In these abusive transactions, investors typically acquire an interest in a partnership that owns land and then claim an inflated charitable contribution deduction based on a grossly overvalued appraisal. Participants and material advisors will need to report their participation in these transactions using Forms 8886 and 8918. Proposed regulations clarify federal tax classification of entities owned by Tribal governmentsProposed regulations address the federal tax classification of corporations or LLCs owned entirely by Indian Tribal governments (Tribes) and formed under the laws of the Tribes. Under the proposed regulations, Tribal law entities that are entirely owned by Tribes wouldn’t be recognized as separate entities for federal tax purposes and wouldn’t be subject to federal income tax. The proposed regulations would also clarify that Tribal law entities entirely owned by Tribes may receive the value of certain energy credits under the Inflation Reduction Act. Treasury and IRS encourage interested parties to submit comments on this guidance through Regulations.gov. Tax relief: fires, hurricanes, terrorist attacksThe IRS’s Tax relief in disaster situations page has the most recent tax relief provisions for taxpayers affected by disaster situations, including:
The IRS also has a special hotline for disaster victims with disaster-related tax questions. Call 866-562-5227. IRS employees help Hurricane Helene efforts The IRS provided than 500 employees to help with the Federal Emergency Management Agency’s (FEMA) disaster relief call lines and sent IRS Criminal Investigation (IRS-CI) agents into devastated areas to help with search and rescue efforts and other relief work. IRS Direct File set to double for 2025 filing seasonIRS Direct File will be available for the 2025 tax filing season in double the number of states than last year’s pilot. It will also cover a wider range of tax situations, greatly expanding the number of taxpayers who can use the free e-filing service. Direct File will expand from 12 to 24 states, adding Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin. Other tax newsThese topics may be of interest to small businesses and their partners:
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