IRS to Employers - - - Remember February 1, 2021 Deadline for Form W-2, other Wage Statements

U.S. Internal Revenue Service to Employers: Remember February 1, 2021 Deadline for Form W-2, other Wage Statements | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release: December 3, 2020)

Washington - - The Internal Revenue Service today reminded employers that they must file Form W-2 and other wage statements by February 1, 2021, to avoid penalties and help the IRS prevent fraud.

A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. That is also the date the Forms W-2 are due to workers. This upcoming tax season, however, January 31 falls on a Sunday, pushing the due dates to the next business day, which is Monday, February 1.

Certain Forms 1099-MISC, Miscellaneous Income and Forms 1099-NEC, Nonemployee Compensation,...

IRS National Tax Security Awareness Week, Day 2: 2021 Online Tax Preparation Products to Offer Multi-factor Authentication for Taxpayers, Tax Pros | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: December 1, 2020) Washington - - The Internal Revenue Service, state tax agencies and the tax industry today marked the second day of National Tax Security Awareness Week by announcing an improved feature that will be available on all 2021 online tax preparation products. Designed to protect both taxpayers and tax professionals, multi-factor authentication means the returning user must enter two pieces of data to securely access an account or application. For example, taxpayers must enter their credentials (username and password) plus a numerical code sent as a text to their mobile phone. The agreement to add the multi-factor authentication feature is just one publicly visible example of the ongoing collaboration by the...

National Tax Security Awareness Week opens with Warnings to all Taxpayers and Tax Professionals as holidays, 2021 Tax Season approach | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release: November 30, 2020)

WASHINGTON — The Internal Revenue Service and the Security Summit partners today issued warnings to all taxpayers and tax professionals to beware of scams and identity theft schemes by criminals taking advantage of the combination of holiday shopping, the approaching tax season and coronavirus concerns. The IRS, state tax agencies and the tax industry opened the National Tax Security Awareness Week to coincide with Cyber Monday, the traditional start of the online holiday shopping season. But the holiday shopping season combined with the impending tax season and an increased trend toward working remotely make online security an absolute necessity. "This is generally the hunting season for online thieves, but...

U.S. Internal Revenue Service says Special $300 Tax Deduction helps most People give to Charity this Year – Even if they Don’t Itemize | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release: November 25, 2020) WASHINGTON – The Internal Revenue Service today reminded taxpayers of a special new provision that will allow more people to easily deduct up to $300 in donations to qualifying charities this year. Following special tax law changes made earlier this year, cash donations of up to $300 made before December 31, 2020, are now deductible when people file their taxes in 2021. "Our nation's charities are struggling to help those suffering from COVID-19, and many deserving organizations can use all the help they can get," said IRS Commissioner Chuck Rettig. "The IRS reminds people there's a new provision that allows for up to $300 in cash donations to qualifying organizations to be deducted from income. We encourage people to expl...

The Treasury Department and IRS issue Final Regulations regarding Like-kind Exchanges of Real Property | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release: November 23, 2020)

WASHINGTON – Today the Treasury Department and Internal Revenue Service issued final regulations relating to section 1031 like-kind exchanges. These final regulations address the definition of real property under section 1031 and also provide a rule addressing the receipt of personal property that is incidental to real property received in a like-kind exchange. The 2017 Tax Cuts and Jobs Act (TCJA) limited like-kind exchange treatment to exchanges of real property. As of January 1, 2018, exchanges of personal or intangible property such as vehicles, artwork, collectibles, patents, and other intellectual property generally do not qualify for nonrecognition of gain as like-kind exchanges. Also, like-kind exchange treatment applies only to exchange...

U.S. Internal Revenue Service announces Procurement Research Partnership to improve Contracting Processes | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release: November 23, 2020) WASHINGTON — The Internal Revenue Service's Office of the Chief Procurement Officer today announced a research partnership with Data and Analytic Solutions, a small business located in Fairfax, Virginia. The partnership also includes a group of academic researchers with a goal to use data science to improve IRS procurement operations. The effort will bring together a multi-disciplinary team comprised of procurement practitioners as well as university professors and students with procurement and machine learning experience. Machine learning is a form of artificial intelligence that allows computers to become more accurate at predicting outcomes without being explicitly programmed. "As with many agencies, we have a wealth of data available to us to u...

IRS says Register by Nov. 21 to get an Economic Impact Payment; same Deadline for Federal Beneficiaries to get missed $500 per Child Payments | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release: November 19, 2020)

WASHINGTON — The Internal Revenue Service today reminded people who don't normally file tax returns that they have until November 21 at 3 p.m. Eastern time to register for an Economic Impact Payment. They also may be eligible to get to a $1,200 payment for their spouse and $500 for each qualifying child.

The extended November 21 deadline also gives more time to federal beneficiaries who already received an EIP but didn't register to receive supplemental $500 payments for qualifying children. Those eligible to provide this information include people with qualifying children who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad...

Treasury and IRS Issue Guidance Clarifying the Deductibility of Expenses Where a Business Received a PPP Loan | site |


(Information contained in U.S. Department of the Treasury press release: November 18, 2020) WASHINGTON – The U.S. Treasury Department and Internal Revenue Service (IRS) released guidance today clarifying the tax treatment of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received. Since businesses are not taxed on the proceeds of a forgiven PPP loan, the expenses are not deductible. This results in neither a tax benefit nor tax harm since the taxpayer has not paid anything out of pocket. If a business reasonably believes that a PPP loan will be forgiven in the future, expenses related to the loan are not deductible, whether the business has filed for forgiveness or not. Therefore, we encourage businesses to file for forgiveness as soon as possible. In the case where a PPP loan was expe...

U.S. Internal Revenue Service says Nov. 21 deadline nears to Register online for Economic Impact Payment | site |


IRS says some people can claim special credit next tax filing season


(November 17, 2020) - - On November 17, 2020 the U.S. Internal Revenue Service (IRS) published the following information:

WASHINGTON — The Internal Revenue Service today reminded anyone who doesn't normally file a tax return that they have until 3 p.m. EST this Saturday, November 21, to register with the IRS for an Economic Impact Payment (EIP).

The only way remaining to get a payment in 2020 is to register using the Non-Filers: Enter Info Here tool on IRS.gov before the Saturday deadline. The only people who should register are those who don't typically file a tax return, are not required to do so and have not yet registered, or for certain benefit recipients who got an EIP for themselves but need to provide information about a non-benef...

U.S. Internal Revenue Service says Get Ready for Taxes: Get ready now to File 2020 Federal Income Tax Returns | site |


(November 17, 2020) - - On November 17, 2020 the U.S. Internal Revenue Service (IRS) published the following information:

Washington - - The Internal Revenue Service today encouraged taxpayers to take necessary actions this fall to help them file their federal tax returns timely and accurately in 2021, including special steps related to Economic Impact Payments (EIP).

This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to prepare for the 2021 tax return filing season ahead.

Steps taxpayers can take now to make tax filing easier in 2021

Taxpayers should gather Forms W-2, Wage and Tax Statement, Forms 1099-MISC, Miscellaneous Income, and other income documents...

IRS Criminal Investigation releases Fiscal Year 2020 Annual Report; identifies $2.3 Billion in Tax Fraud | site |


(November 16, 2020) - - Today the U.S. Internal Revenue Service (IRS) published the following information:

WASHINGTON — The Internal Revenue Service today released the Criminal Investigation Division's annual report, highlighting the agency's successes and criminal enforcement actions taken in fiscal year 2020, the majority of which occurred during COVID-19. A key achievement was the identification of over $10 billion in tax fraud and other financial crimes. "The special agents and professional staff who make up Criminal Investigation continue to perform at an incredibly high-level year after year," said IRS Commissioner Chuck Rettig. "Even in the face of a global pandemic, the CI workforce initiated nearly 1,600 investigations and identified $2.3 billion in tax fraud schemes. This is no small feat during a challenging year, and their w...

U.S. Internal Revenue Service to Mask Key Business Transcript details; Protect Taxpayers from Identity Theft | site |



(November 13, 2020) - - Today the U.S. Internal Revenue Service (IRS) published the following information: WASHINGTON – Moving to protect business taxpayers from identity theft, the Internal Revenue Service today announced that starting Dec. 13 it will begin masking sensitive data on business tax transcripts. The announcement provides 30 days for stakeholders to make any adjustments. The IRS began informing tax professionals of this change during the summer Nationwide Tax Forums. The agencypreviously masked sensitive data on individual tax transcripts two years ago. A tax transcript is a summary of a tax return. Transcripts are often used by tax professionals to prepare prior year tax returns or represent the client before the IRS. Lenders and others use tax transcripts for income verification purposes....

IRS reminder to Non-filers: Nov. 10 is ‘National EIP Registration Day;’ Community Partners can help People sign up for Economic Impact Payment | site |



(November 9, 2020) - - On November 9, 2020 the U.S. Internal Revenue Service (IRS) published the following information: WASHINGTON – The Internal Revenue Service today urged anyone who doesn’t normally file a tax return and has not yet received an Economic Impact Payment (EIP) to take advantage of “National EIP Registration Day,” on Tuesday, Nov. 10. National EIP Registration Day is part of the agency’s further concerted push with partners across the country to make sure every eligible American has registered before the Nov. 21 deadline to receive their Economic Impact Payment this year. National EIP Registration Day will take place just a few days ahead of the Nov. 21 deadline for registering online to receive an Economic Impact Payment. This special event will feature support from IRS partner groups...

IRS provides certainty regarding the Deductibility of Payments by Partnerships and S Corporations for State and Local Income Taxes | site |


(November 9, 2020) - - Today the U.S. Internal Revenue Service published the following information:

WASHINGTON — The Internal Revenue Service (IRS) today issued Notice 2020-75, which announces rules to be included in forthcoming proposed regulations. Specifically, the proposed regulations will clarify that State and local income taxes imposed on and paid by a partnership or S corporation on its income are allowed as a deduction by the partnership or S corporation in computing its non-separately stated taxable income or loss for the taxable year of payment, and therefore are not subject to the State and local tax deduction limitation for partners and shareholders who itemize deductions.

The notice describing the forthcoming proposed regulations applies to these types of income taxes starting today, and...

U.S. Internal Revenue Service provides Tax Inflation Adjustments for Tax Year 2021 | site |



(October 26, 2020) - - On October 26, 2020 the U.S. Internal Revenue Service (IRS) published the following information:

WASHINGTON — The Internal Revenue Service today announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2020-45 provides details about these annual adjustments.

Highlights of changes in Revenue Procedure 2020-45

The Consolidated Appropriation Act for 2020 increased the amount of the minimum addition tax for failure to file a tax return within 60 days of the due date. Beginning with returns due after Dec. 31, 2019, the new additional tax is $435 or 100 percent of the amount of tax due, whichever is less, an increase from $330. The $435 additional tax will be adjusted for inflation.

The tax year...