IRS grants Dyed Diesel Fuel Penalty Relief due to Disruptions of the Fuel Supply Chain

U.S. Internal Revenue Service grants Dyed Diesel Fuel Penalty Relief due to Disruptions of the Fuel Supply Chain | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 13, 2021) Washington - - The Internal Revenue Service, in response to disruptions of the fuel supply chain, will not impose a penalty when dyed diesel fuel is sold for use or used on the highway in the states of Alabama, Delaware, Georgia, Florida, Louisiana, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and the District of Columbia. This relief is retroactive to May 7, 2021, and will remain in effect through May 21, 2021. This penalty relief is available to any person that sells or uses dyed diesel fuel for highway use. In the case of the operator of the vehicle in which the dyed diesel fuel is used, the relief is available only if the operator or the person selling such fuel pays the tax of 24.4 cents per...

U.S. Internal Revenue Service offers Overview of Tax Provisions in American Rescue Plan | site |



IRS says retroactive tax benefits help many people now preparing 2020 returns


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 11, 2021) Washington - - The Internal Revenue Service today provided an overview of some of the key tax provisions in the American Rescue Plan Act. Several provisions affect the 2020 tax return people are filling out this filing season, including one exempting up to $10,200 in unemployment compensation from tax and another benefiting many people who purchased subsidized health coverage through either federal or state Health Insurance Marketplaces. In addition, the law also includes a third round of Economic Impact Payments, now going out to eligible Americans, that are generally equal to $1,400 per person for most people, as well as several other key changes for tax-year 2021. The...

U.S. Internal Revenue Service issues Guidance on Taxability of Dependent Care Assistance Programs for 2021, 2022 | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 10, 2021) Washington - - The Internal Revenue Service today issued guidance on the taxability of dependent care assistance programs for 2021 and 2022, clarifying that amounts attributable to carryovers or an extended period for incurring claims generally are not taxable. The guidance also illustrates the interaction of this standard with the one-year increase in the exclusion for employer-provided dependent care benefits from $5,000 to $10,500 for the 2021 taxable year under the American Rescue Plan Act. Because of the pandemic, many people were unable to use the money they set aside in their dependent care assistance programs in 2020 and 2021. Generally, under these plans, an employer allows its employees to set aside a certain amount of pre-tax wages...

U.S. Internal Revenue Service says some People get more Time to File without asking; Says anyone else can Request an Automatic Extension | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: April 29, 2021)

Washington - - Anyone can request an automatic tax-filing extension, but some people get extra time without asking, according to the Internal Revenue Service.

Due to the ongoing pandemic, this year the IRS postponed the usual April 15 deadline for filing individual income tax returns until May 17, 2021. Even so, as is the case every year, many Americans will still need more time to meet their tax-filing obligation. The IRS estimates that more than 16 million taxpayers will get an automatic extension this filing season, either by filing a form or making an electronic tax payment. But some taxpayers, including disaster victims, those serving in a combat zone and Americans living abroad get ...

U.S. Internal Revenue Service says more than 1.1 Million additional Economic Impact Payments disbursed under the American Rescue Plan | site |


IRS says payments total approximately 164 million


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 5, 2021)

Washington - - Today, the Internal Revenue Service, the U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced they are disbursing more than 1.1 million payments in the eighth batch of Economic Impact Payments from the American Rescue Plan.

Today's announcement brings the total disbursed so far to approximately 164 million payments, with a total value of approximately $386 billion, since these payments began rolling out to Americans in batches as announced on March 12. The eighth batch of payments began processing on Friday, April 30, with an official payment date of May 5, with some people rece...

IRS says Those experiencing Homelessness can get Economic Impact Payments and other Tax Benefits; Permanent Address Not Required | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: April 15, 2021) Washington - - The Internal Revenue Service today continued an ongoing effort to help those experiencing homelessness during the pandemic by reminding people who don't have a permanent address or a bank account that they may still qualify for Economic Impact Payments and other tax benefits. While Economic Impact Payments continue to be made automatically to most people, the IRS can't issue a payment to eligible Americans when information about them isn't available in the tax agency's systems. To help people experiencing homelessness, the rural poor and other historically under-served groups, the IRS urges community groups, employers and others to share information about Economic Impact Payments and help more eligi...

U.S. Internal Revenue Service Letters Explain why some 2020 Recovery Rebate Credits are Different than Expected | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: April 5, 2021)

Washington - - As people across the country file their 2020 tax returns, some are claiming the 2020 Recovery Rebate Credit (RRC). The IRS is mailing letters to some taxpayers who claimed the 2020 credit and may be getting a different amount than they expected. It's important to remember that the first and second Economic Impact Payments (EIP) were advance payments of the 2020 credit. Most eligible people already received the first and second payments and shouldn't or don't need to include this information on their 2020 tax return. People who didn't receive a first or second EIP or received less than the full amounts may be eligible for the 2020 RRC. They must file a 2020 tax return to claim the credit, even if they don't usua...

Treasury, IRS Disburse 25 Million more Economic Impact Payments under the American Rescue Plan | site |


Social Security and other beneficiaries bring total to more than 156 million payments; VA beneficiaries payments to be disbursed on April 14


(Information contained in U.S. Department of the Treasury press release dated: April 7, 2021)

Washington - - Today, the U.S. Department of the Treasury, the Internal Revenue Service, and the Bureau of the Fiscal Service announced they are disbursing more than 25 million payments in the fourth batch of Economic Impact Payments from the American Rescue Plan.

Today’s announcement brings the total disbursed so far to more than 156 million payments, with a total value of approximately $372 billion, since these payments began rolling out to Americans in batches, as announced on March 12. The fourth batch of payments began processing on Friday, April 2, with an official payment dat...

U.S. Internal Revenue Service says Low Income Taxpayer Clinic 2021 Supplemental Application Period now Open | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: March 15, 2021) Washington - - The Internal Revenue Service today announced it will accept applications for an 18-month Low Income Taxpayer Clinic (LITC) matching grant from all qualified organizations. The application period will run from March 15, 2021-April 16, 2021. The budget and the period of performance for the supplemental grant will be July 1, 2021-December 31, 2022. Organizations currently receiving a grant for 2021 are not eligible to apply. Qualified organizations that are awarded grants will ensure the fairness and integrity of the tax system for taxpayers who are low-income or speak English as a second language (ESL taxpayers) by: providing pro bono representation on their behalf in tax disputes with the IRS, educating them about their rig...

New IRS Form available for Self-employed Individuals to claim COVID-19 Sick and Family Leave Tax Credits under FFCRA | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: February 8, 2021)

Washington - - The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA).

Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. They'll claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and December 31, 2020, and on their 2021 Form 1040 for leave taken between January 1, 2021, and March 31, 2021. The FFCRA, passed in March 2020, allows eligible self-employ...

U.S. Internal Revenue Service says Educators can now Deduct out-of-pocket Expenses for COVID-19 Protective Items | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: February 4, 2021)

Washington - - Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to:

• face masks;
• disinfectant for use against COVID-19;
• hand soap;
• hand sanitizer;
• disposable gloves;
• tape, paint or chalk to guide social distancing;
• physical barriers (for example, clear plexiglass);
• air purifiers; and
• other items recommended by the Centers for Disease Control and Prevention (CDC) to be used for the prevention of the spread of COVID-19.

Rev. Proc. 2021-15, issued today, provides guidance related to educators and their expenses under the COVID-related Tax Relief Act of 2020, which was enacted as part of...

U.S. Internal Revenue Service updates FAQs on Paid Sick Leave Credit and Family Leave Credit | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 29, 2021)


Washington - - The Internal Revenue Service today posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs. The updates to the FAQs cover how the COVID-related Tax Relief Act of 2020, enacted December 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits. The paid sick and family leave credits, which previously were available only unt...

U.S. Internal Revenue Service says New Law extends COVID Tax Credit for Employers who Keep Workers on Payroll | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 26, 2021)

Washington - - The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2020, made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021. Several of the changes apply only to 2021, while others apply to both 2020 and 2021. As a result of the new ...

U.S. Internal Revenue Service urges Taxpayers to gather Tax Documents now for smooth Filing later | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 22, 2021)

Washington - - The Internal Revenue Service is reminding taxpayers that organizing tax records is an important first step for getting ready to prepare and file their 2020 tax return. Taxpayers should keep all necessary records, such as W-2s, 1099s, receipts, canceled checks and other documents that support an item of income, or a deduction or credit, appearing on their tax return. Taxpayers should develop a system that keeps all their important information together, which could include a software program for electronic records or a file cabinet for paper documents in labeled folders. Having records readily at hand makes preparing a tax return easier. To avoid refund delays, taxpayers should be sure to gather all year-end inco...

2021 Tax Filing Season begins Feb. 12; IRS outlines Steps to Speed Refunds during Pandemic | site |




(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 15, 2021)

Washington - - The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus mone...