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

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...

IRS Free File available Today; claim Recovery Rebate Credit and other Tax Credits | site |




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

Washington - - IRS Free File – online tax preparation products available at no charge – launched today, giving taxpayers an early opportunity to claim credits like the Recovery Rebate Credit and other deductions, the Internal Revenue Service announced. Leading tax software providers make their online products available for free as part of a 19-year partnership with the Internal Revenue Service. There are nine products in English and two in Spanish. “As we continue to confront the COVID-19 pandemic, IRS Free File and certain other similar online tax preparation products such as MilTax – Tax Services for the Military offered through the Department of Defense − offers taxpayers a free way to do their taxes from the safety of their own hom...

U.S. Internal Revenue Service says All Taxpayers now Eligible for Identity Protection PINs | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release: January 12, 2021) Washington - - The Internal Revenue Service today expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities. The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers' personally identifiable information. "This is a way to, in essence, lock your tax account, and the IP PIN serves as the key to opening that account," said IRS Commissioner Chuck Rettig. "Electronic returns that do not contain the correct IP PIN will be rejected, and paper returns will go through additional scrutiny for fraud." The IRS launched the IP PIN program nearly a decade ago to protect confirmed identity thef...

U.S. Internal Revenue Service sends Taxpayer First Act Report to Congress | site |



Recommendations aimed at providing greater ease, convenience to taxpayers and the tax community



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

Washington - - The IRS today sent the Taxpayer First Act Report to Congress, a comprehensive set of recommendations that will reimagine the taxpayer experience, enhance employee training and restructure the organization to increase collaboration and innovation. The IRS will continue conversations with key stakeholders and congressional committees to secure funding and begin to work toward implementation of these recommendations over the next several years. "The way we interact with taxpayers and the tax community, the way that we train our employees and the way we structure our organizational structure are important foundations for our future success,...

Treasury, IRS provide Final Regulations to help Businesses Claim Credits for Carbon Capture | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 6, 2021)

Washington - - Today the Treasury Department and Internal Revenue Service issued final regulations regarding the credit for qualified carbon oxide captured using carbon capture equipment placed in service on or after February 9, 2018.

The final regulations help businesses understand how the credit for qualified carbon oxide sequestration may benefit those claiming two carbon capture credit amounts, which are:

• Up to $50 per metric ton of qualified carbon oxide for permanent sequestration; and
• Up to $35 per metric ton of qualified carbon oxide for Enhanced Oil or Natural Gas Recovery purposes.

Neither of these new credit amounts, contained in the Bipartisan Budget Act of 2018, is subject to a limitation on the number of metric...

IRS revises Form 1024-A, Application for Section 501(c)(4) Tax-exempt Status as part of Ongoing Efforts to Improve Service | site |


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

Washington - - As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), and its instructions to allow electronic filing. "Electronic filing will make the Form 1024-A application easier to complete while reducing errors," said Edward Killen, Acting Commissioner of the IRS Tax Exempt and Government Entities division. "Electronic filing also shortens IRS processing time so applicants won't wait as long for a response." Beginning January 5, 2021, IRS will make available the electronic version of the Form 1024-A that organizations seeking to be exempt under Section 501(c)(4) may use to su...

IRS says Economic Impact Payments on their way, Visit IRS.gov instead of Calling | site |




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

Washington - - The Internal Revenue Service today urged people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov. The IRS and the Treasury Department began issuing a second round of Economic Impact Payments, often referred to as stimulus payments, last week. The direct deposit payments may take several days to post to individual accounts. Some Americans may have seen the direct deposit payments as pending or as provisional payments in their accounts before the scheduled payment date of January 4, 2021, which is the offi...

Treasury, IRS provide Relief for those developing Renewable Energy Projects Offshore or on Federal Land | site |




(Information contained in U.S. Internal Revenue Service [IRS] press release dated: December 31, 2020)

Washington - - The Treasury Department and the Internal Revenue Service today issued guidance providing an extension of the safe harbor for taxpayers developing renewable energy projects offshore or on federal land. Renewable energy projects constructed offshore or on federal land are ordinarily subject to significant delays that can result in project completion times of up to twice as long as other renewable energy projects. These delays threaten taxpayers’ ability to satisfy requirements to claim the production tax credit and the investment tax credit. To address this hurdle, the Treasury Department and the IRS have determined that it is necessary to extend the safe harbor period to up to 10 calendar years after the year in...

U.S. Department of the Treasury says Treasury and IRS Begin Delivering the Second Round of Economic Impact Payments to Millions of Americans | site |




(Information contained in U.S. Department of the Treasury press release dated: December 29, 2020)

"Treasury and IRS Begin Delivering the Second Round of Economic Impact Payments to Millions of Americans"

Washington - - Today, the Treasury Department and the Internal Revenue Service will begin delivering a second round of Economic Impact Payments to millions of Americans as part of the implementation of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. The initial direct deposit payments may begin arriving as early as tonight for some and will continue into next week. Paper checks will begin to be mailed tomorrow, Wednesday, December 30. This second round of payments will provide critical economic support to those who, through...

IRS says Treasury and IRS begin delivering Second Round of Economic Impact Payments to Millions of Americans | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: December 29, 2020)

"Treasury and IRS begin delivering second round of Economic Impact Payments to millions of Americans"

Washington - - Today, the Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year. The initial direct deposit payments may begin arriving as early as tonight for some and will continue into next week. Paper checks will begin to be mailed tomorrow, Wednesday, December 30. The IRS emphasizes that there is no action required by eligible individuals to receive this second ...