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Tax Resources for Small BusinessSmall Business and Self-Employed One-Stop Resource Small Business Forms & Instructions e-File for Businesses and Self-Employed Other ResourcesTax Information for Charities
| Issue Number: 2020-22Inside This Issue
1. A Closer Look: How the IRS ensures compliance with the tax laws The IRS published the latest executive column, "A Closer Look," featuring Sunita Lough, the Deputy Commissioner for Services and Enforcement of the IRS explaining many tools the agency has to support compliance for all income levels. "When deciding which tool to use, we work to ensure fairness while also being conscious of taxpayer burden. IRS employees work to minimize the burden of our compliance actions, seeking the right touch – all with an eye toward enforcing the nation's tax laws for the benefit of all taxpayers." Read more here. It's also available in Spanish here. "A Closer Look" is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals. Check here for prior posts and new updates. 2. Hiring employees from certain targeted groups is a win-win Giving someone the opportunity to work may result in a business tax credit. Check out the IRS Work Opportunity Tax Credit before it expires at the end of the year. 3. Small businesses should make sure to use the right form when filing employment tax returns The IRS advises small business owners to review the rules for which form to use when filing quarterly versus annually:
The two forms are not interchangeable. 4. Time running out to qualify to deduct up to $300 in charitable contributions without itemizing deductions Following tax law changes, cash donations of up to $300 made this year by December 31, 2020, are now deductible without having to itemize when people file their taxes in 2021. The CARES Act includes other temporary allowances designed to help charities. These include higher charitable contribution limits for corporations, individuals who itemize their deductions and businesses that give food inventory to food banks and other eligible charities. For more information, including record keeping, see the IRS Tax Tip. 5. Get Ready for Taxes: Stay home and stay safe with IRS online tools The IRS encourages taxpayers to take necessary actions now to help file federal tax returns timely and accurately in 2021. With continued social distancing, taxpayers can stay home and stay safe with IRS online tools and resources that help them find the information they need. 6. IRS: Volunteers needed for free tax prep help The IRS is focused on safety and social distancing, along with virtual options, now and for the upcoming tax season as the agency seeks volunteers to provide free tax return preparation through its Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. Learn more about volunteering and how to sign up. 7. Treasury and IRS issue final regulations on the deduction for qualified transportation fringe and commuting expenses The Treasury Department and the IRS issued final regulations on the deduction for qualified transportation fringe (QTF) and commuting expenses following changes made by the Tax Cuts and Jobs Act (TCJA). These final regulations address the disallowance of the deduction for expenses related to QTFs provided to an employee of the taxpayer, including providing guidance and methodologies to determine the amount of QTF parking expenses that is nondeductible. The final regulations also address the disallowance of the deduction for expenses of transportation and commuting between an employee's residence and place of employment. Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov. 8. Technical guidance: Certain safe harbor plans; Interest rates remain the same for the first quarter of 2021 Certain safe harbor plans The IRS issued Notice 2020-86 addressing certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) affecting safe harbor plans, including safe harbor 401(k) plans and certain 403(b) plans. Interest rates remain the same for the first quarter of 2021 The IRS announced interest rates will remain the same for the calendar quarter beginning January 1, 2021. See the news release for details.
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