IRS unveils Online Tool to help Low-income Families register for Monthly Child Tax Credit Payments

IRS unveils Online Tool to help Low-income Families register for Monthly Child Tax Credit Payments | site |




(Information contained in U.S. Internal Revenue Service [IRS] press release dated: June 14, 2021)

Washington - - The Treasury Department and the Internal Revenue Service today unveiled an online Non-filer Sign-up tool designed to help eligible families who don't normally file tax returns register for the monthly Advance Child Tax Credit payments, scheduled to begin July 15. This tool, an update of last year's IRS Non-filers tool, is also designed to help eligible individuals who don't normally file income tax returns register for the $1,400 third round of Economic Impact Payments (also known as stimulus checks) and claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments they may have missed. Developed in partnership with Intuit and delivered through the Free File Alliance, this tool provides a fr...

IRS posts new FAQs making available information to aid Families and Small Business under the American Rescue Plan | site |




Information for enhanced 2021 child and dependent care tax credits; updated paid sick and family leave credits for Q2 and Q3 of 2021


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: June 11, 2021)

Washington - - The Internal Revenue Service today posted two new, separate sets of frequently-asked-questions (FAQs) to assist families and small and mid-sized employers in claiming credits under the American Rescue Plan (ARP). Both the child and dependent care credit as well as the paid sick and family leave credit were enhanced under the ARP, enacted in March to assist families and small businesses with the fallout of the COVID-19 pandemic and recovery underway. The two sets of FAQs provide information on eligibility, computing the credit amounts, and how to clai...

U.S. Internal Revenue Service reminds Taxpayers Living and Working Abroad of June 15 Deadline | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: June 2, 2021)

Washington - - The Internal Revenue Service today reminded taxpayers living and working outside of the United States that they must file their 2020 federal income tax return by Tuesday, June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.

Just as most taxpayers in the United States are required to timely file their tax returns with the IRS, those living and working in another country are also required to file. An automatic two-month deadline extension is normally granted for those overseas and in 2021 that date is still June 15 even though the normal income tax filing deadline was extended a month from April 15 to May 17.

Benefits and qualifications ...

U.S. Internal Revenue Service sending more than 2.8 Million Refunds to those who already paid Taxes on 2020 Unemployment Compensation | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: June 4, 2021) Washington - - The Internal Revenue Service is sending more than 2.8 million refunds this week to taxpayers who paid taxes on unemployment compensation that new legislation now excludes as income. IRS efforts to correct unemployment compensation overpayments will help most affected taxpayers avoid filing an amended tax return. So far, the IRS has identified 13 million taxpayers that may be eligible for the adjustment. Some will receive refunds, which will be issued periodically, and some will have the overpayment applied to taxes due or other debts. For some there will be no change. The American Rescue Plan Act of 2021 (ARPA) excluded up to $10,200 in unemployment compensation per taxpayer paid in 2020. The $10,...

U.S. Internal Revenue Service says 2021 IRS Virtual Nationwide Tax Forum begins in July | site |



Tax pros may earn continuing education credits and more


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 24, 2021)

Washington - - The Internal Revenue Service today announced that the 2021 Virtual IRS Nationwide Tax Forum will be held over five weeks starting July 20, with a series of live-streamed webinars every Tuesday, Wednesday and Thursday. Held each summer for 30 years, the IRS Nationwide Tax Forums are the IRS's marquee outreach event to the tax professional community. This year, the IRS decided once again to provide these events in a virtual format in an abundance of caution and for the safety of the tax professional community. The virtual format allows experts from the IRS and its association partners to educate and update the tax professional community on tax law, cybesecurity, ethi...

IRS says more than 1.8 Million additional Economic Impact Payments disbursed under the American Rescue Plan; total Payments reach nearly 167 Million | site |


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

Washington - - Today, the Internal Revenue Service, the U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced they have disbursed more than 1.8 million additional Economic Impact Payments under the American Rescue Plan.

Today's announcement covering the most recent two weeks of the effort brings the total disbursed so far to nearly 167 million payments. They represent a total value of approximately $391 billion since these payments began rolling out to Americans in batches on March 12.

Here is additional information on the last two weeks of payments, which includes those with official payment dates through May 26:

• In total, this includes

...

IRS says, With the May 17 Deadline in the Past, File Taxes Now to get Refund or Cut Penalties and Interest | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 20, 2021)

Washington - - The Internal Revenue Service reminds taxpayers who missed the recent tax-filing deadline who are due a refund that there is no penalty for filing late. Those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest.

Extra time to file and pay any taxes due without penalties and interest is available for some taxpayers. Included are:

• Members of the military who served or are currently in a combat zone. They may qualify for an additional extension of at least 180 days to file and pay taxes.
• Support personnel in combat zones or a contingency operation in support of the Armed Forces. They may also qualify for a filing and payment extension of at

...

U.S. Internal Revenue Service provides Guidance on Premium Assistance and Tax Credit for Continuation Health Coverage | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 18, 2021)

Washington - - The Internal Revenue Service today provided guidance on tax breaks under the American Rescue Plan Act of 2021 for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

Notice 2021-31 provides guidance for employers, plan administrators, and health insurers regarding the new credit available to them for providing continuation health coverage to certain individuals under COBRA. The American Rescue Plan provides a temporary 100% reduction in the premium that individuals would have to pay when they elect COBRA continuation health coverage following a reduction in hours or an involuntary termination of employment. The new law provides a correspondi...

Treasury and IRS Announce Families of 88% of Children in the U.S. to Automatically Receive Monthly Payment of Refundable Child Tax Credit | site |



First Payments to Be Made on July 15


(Information contained in U.S. Department of the Treasury press release dated: May 17, 2021) Washington - - The U.S. Department of the Treasury and the Internal Revenue Service announced today that the first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. Roughly 39 million households — covering 88 percent of children in the United States — are slated to begin receiving monthly payments without any further action required. Treasury and the IRS also announced the increased CTC payments, will be made on the 15th of each month, unless the 15th falls on a weekend or holiday, allowing families who receive the credit by direct deposit to plan their budgets a...

U.S. Internal Revenue Service reminds Taxpayers of May 17 Deadline for Individual Income Tax Returns: Extensions, other Help available | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 17, 2021)

Washington - - The Internal Revenue Service reminds taxpayers that the deadline for filing most individual income tax returns this year is May 17. The agency also wants taxpayers who have yet to file their tax returns to know that there are a variety of options available to help them.

IRS tax help is available 24 hours a day on IRS.gov. Whether filing a tax return, requesting an extension or making a payment, the IRS website can help last-minute filers on just about everything related to taxes.

The IRS encourages taxpayers to file electronically. Doing so, whether through e-file or IRS Free File, vastly reduces tax return errors as the tax software does the calculations,...

U.S. Internal Revenue Service begins Correcting Tax Returns for Unemployment Compensation Income Exclusion | site |


Periodic payments to be made May through summer


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 14, 2021)

Washington - - The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income. The IRS identified over 10 million taxpayers who filed their tax returns prior to the American Rescue Plan of 2021 becoming law in March and is reviewing those tax returns to determine the correct taxable amount of unemployment compensation and tax. This could result in a refund, a reduced balance due or no change to tax (no refund due nor amount owed). These corrections are being made automatically in a phased approach, easing the burden on ta...

IRS extends May 17, other Tax Deadlines for Victims of Tennessee storms; provides Special Guidelines for Disaster Area Individuals needing further Extensions | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: May 14, 2021)

Washington - - Victims of this spring's storms and tornadoes in Tennessee will have until August 2, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

Following The recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to taxpayers affected by storms, tornadoes, and flooding that took place between March 25 and April 3, 2021, in parts of Tennessee. Currently, relief is available to affected taxpayers who live or have a business in Campbell, Cannon, Cheatham, Claiborne, Clay, Davidson, Decatur, Fentress, Grainger, Hardeman, Henderson,...

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...