e-News for Tax Professionals 2023-01

The IRS recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation they received in 2020. The IRS corrected approximately 14 million returns. This resulted in nearly 12 million refunds totaling $14.8 billion, with an average refund of $1,232. The American Rescue Plan Act of 2021, which became law in March 2021, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations (up to $10,200 for each spouse if married filing joint). The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000. This news release is also available in Spanish and Simplified Chinese.

2.??Final 2022 quarterly estimated tax payment due Jan. 17

Many taxpayers make quarterly estimated tax payments during the year to stay current on their taxes. But many who should make estimated payments do not. If you have clients who paid too little tax in 2022, urge them to make a fourth quarter payment on or before Jan. 17 to avoid an unexpected potential tax bill or penalty when they file in 2023. This news release is also available in Spanish and Simplified Chinese.

3.??Tax relief for victims of severe winter storm in New York

New York victims of the severe winter storm beginning Dec. 23, 2022, now have until April 18, 2023, to file various individual and business tax returns and make tax payments. Individuals and households affected by severe winter storm that reside or have a business in Erie and Genessee counties qualify for tax relief.

4.??A Closer Look: Large Business and International division

In the current issue of the executive column, ?A Closer Look,? Holly Paz, acting Commissioner of Large Business and International, discusses the LB&I division?s dedicated workforce and the important role they play in IRS operations. This feature is also available in Spanish.

5.??Webinars for tax practitioners

Tax pros: Here are some upcoming webinars for the tax practitioner community. For more information or to register, visit IRS.gov.

2023 IRS/CSEA Practitioner Seminars on Jan. 18-19. Earn up to 9 hours of IRS qualified CPE (includes 2 hours of federal Ethics). Plus, an additional 1 hour of California CE (no IRS credit).
Looking to Tax Year 2022: American Rescue Plan Tax Changes to Earned Income Tax Credit and Other Child-Related Credits on Jan. 19 at 2 p.m. EST. Earn up to 1 continuing education (CE) credit.
Estate and Gift Tax on Jan. 31 at 2 p.m. EST. Earn up to 1 CE credit.
Practical Considerations ? Foreign Tax Credit on Feb. 7 at 2 p.m. EST. Earn up to 2 CE credits.
K2/K3 with a Focus on the Foreign Tax Credit ? Individuals on Feb. 9 at 2 p.m. EST. Earn up to 2 CE credits.

Tax professionals are also encouraged to visit the IRS Nationwide Tax Forums Online for additional continuing education opportunities.

6.??News from the Justice Department?s Tax Division

Return preparer Labanda Loyd of Waco, TX, pleaded guilty to engaging in a multi-year conspiracy to prepare and file false tax returns on behalf of clients and obtaining a fraudulent loan under the Paycheck Protection Program (PPP). Loyd faces a maximum penalty of five years in prison for the conspiracy charge and twenty years in prison for wire fraud.

Betty Hawkins and Phyllis Ricks, both of Rocky Mount, N.C., conspired with others to file false tax returns for clients. Hawkins, Ricks and their co-conspirators caused more than 1,000 false tax returns to be filed with the IRS that claimed a total of approximately $5 million in fraudulent refunds. Ricks was sentenced to three years in prison and Hawkins was sentenced to two years in prison. In addition to the term of imprisonment, both women were ordered to serve three years of supervised release and to pay approximately $5.2 million in restitution to the United States.

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