US Taxes News

News

Taxpayer Advocate

Where to File

Issue Number: 2024-14

Inside This Issue

IDES system experiencing intermittent services
IDES open testing window revised start date

1. IDES system experiencing intermittent services

The FATCA International Data Exchange System (IDES) is experiencing intermittent issues with system notifications. Certain notifications are not being generated.

IDES users should be able to successfully update their passwords, upload digital certificates and upload files. Some users will be contacted directly from lbi.fatca.ides@irs.gov to re-upload their digital certificates.

The IRS is working diligently to fully resolve IDES services. IDES users will be notified when the system has been fully restored.

Forms 8966 with a due date of June 30, 2024, will be considered timely if received by July 31, 2024.

2. IDES open testing window revised start date

The FATCA International Data Exchange Service (IDES) testing window has been revised and will be open from Monday, July 8, 2024, at 8:00 AM EDT to Friday, July 26, 2024, at 5:00 PM EDT. The July 1, 2024, testing window is currently not available.

The test session will only be open to users that completed IDES enrollment by Wednesday, June 26, 2024, at 5:00 PM EDT. A completed IDES enrollment means the IDES account is active with a valid Digital Certificate attached.

All eligible testers may receive an e-mail with specific instructions to connect to the test site on or prior to the testing window start date. The test environment will only support the FATCA XML Schema v2.0, Notification XML Schema v2.5 and test data document types such as FATCA11 and FATCA12.

All testing sessions will be announced on the IDES Testing Schedule web page. For more information on testing, sample files, and FAQs, visit the IDES Resources web page. If you need immediate assistance, contact the IDES Help Desk.

Note: Any production files submitted to the test environment will not be processed. Do not submit production files to the test environment or test files to the production environment.

Thank you for subscribing to FATCA News & Information, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.

This message was distributed automatically from the FATCA News & Information mailing list. Please Do Not Reply To This Message.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535

IR-2024-182: IRS warns of new scam targeting clean energy tax credit

IRS Newswire

July 3, 2024

News Essentials

The Newsroom Topics

IRS Resources

Issue Number: IR-2024-182

Inside This Issue

IRS warns of new scam targeting clean energy tax credit

WASHINGTON – The Internal Revenue Service today warned taxpayers not to fall victim to a new emerging scam involving buying clean energy tax credits.

In this latest scam, the IRS is seeing instances where unscrupulous tax return preparers are misrepresenting the rules for claiming clean energy tax credits under the Inflation Reduction Act (IRA).

The transferability provisions of the IRA enable the purchase of eligible federal income tax credits from investments in clean energy to offset a buyer's tax liability. The IRS has seen taxpayers file returns using unscrupulous return preparers who are claiming purchased clean energy credits that the taxpayer is ultimately unable to benefit from.

The scam is generally targeting individuals who file Form 1040. The preparers file returns that have individuals improperly claiming IRA credits that offset income tax from sources such as wages, Social Security and retirement account withdrawals.

Individuals purchasing tax credits under the IRA are subject to the passive activity rules for any purchased credits. Generally, this means they can only use purchased credits to offset income tax from a passive activity. Most taxpayers do not have passive income and a passive income tax liability. Most investment activities are not considered passive.

"This is another example where scammers are trying to use the complexity of the tax law to entice people into claiming credits they're not entitled to," said IRS Commissioner Danny Werfel. Taxpayers should be wary of promoters pushing dubious credits like this and others. The IRS is watching out for this scam, and we urge people to use a reputable tax professional before claiming complex credits like clean energy."

The IRS noted individual taxpayers claiming inappropriate credits risk future compliance action by the IRS and are responsible for repaying the inflated credit, plus interest and possible penalties.

Individual taxpayers considering purchasing clean energy credits under the IRA should consult a trusted tax professional for advice on whether they are eligible to purchase credits and claim the tax benefits. They should also understand how the limitations under the passive activity rules, and other portions of the tax code, may apply to their particular tax situation.

More information about clean energy can be found on the Inflation Reduction Act of 2022 page on IRS.gov.

The IRS continues to warn taxpayers about other scams it continues to see that are misleading taxpayers into filing inappropriate claims for other tax credits. The IRS has warned taxpayers not to fall for scams centered around the Fuel Tax Credit, the Sick and Family Leave Credit and household employment taxes. Fueled by misleading social media advice and promoters, the IRS has seen thousands of dubious claims come in earlier this year where it appears taxpayers are claiming credits for which they are not eligible, leading to refunds being delayed and the need for taxpayers to show they have legitimate documentation to support these claims.

Report fraud

The IRS is committed to investigating paid tax return preparers who act improperly. To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242 – Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed Form 14242 and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center

Stop MS5040

24000 Avila Road

Laguna Niguel, California 92677 3405

Fax: 877 477 9135

Taxpayers and tax professionals can also submit this information to the IRS Whistleblower Office, where they may be eligible for a monetary award. For details, refer to Abusive tax schemes and abusive tax return preparers on IRS.gov.

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe.

This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535

CORRECTION: IR-2024-181: IRS reminder to disaster victims in three states: July 15 filing and payment deadline nears; others face due dates later this summer

IRS Newswire

July 3, 2024

News Essentials

The Newsroom Topics

IRS Resources

Issue Number: IR-2024-181

Inside This Issue

IRS reminder to disaster victims in three states: July 15 filing and payment deadline nears; others face due dates later this summer

WASHINGTON — The Internal Revenue Service today reminded individuals and businesses in parts of Alaska, Maine and Rhode Island that their 2023 federal income tax returns and tax payments are due on Monday, July 15, 2024.

The IRS normally provides relief, including postponing various tax filing and payment deadlines, for any area designated by the Federal Emergency Management Agency (FEMA). As long as their address of record is in a disaster-area locality, individual and business taxpayers automatically get the extra time, without having to ask for it.

What areas qualify for the July 15 deadline?

The July 15 deadline applies to taxpayers affected by disaster declarations in three states. These include:

The Wrangell Cooperative Association of Alaska Tribal Nation.
Eight counties in Maine: Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington and York.
Four counties in Rhode Island: Kent, Newport, Providence and Washington.

The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.

What returns and payments qualify for the July 15 deadline?

Eligible returns and payments include:

Calendar-year 2023 partnership and S corporation returns normally due on March 15.
2023 individual income tax returns and payments normally due on April 15.
Quarterly estimated tax payments normally due on April 15 and June 17.
Calendar-year 2023 corporate and fiduciary income tax returns and payments normally due on April 15.

Calendar-year 2023 returns filed by tax-exempt organizations normally due on May 15.

Other returns, payments and time-sensitive tax-related actions also qualify for the extra time. See the Disaster assistance and emergency relief for individuals and businesses page for details.

Further extensions available

Affected individual taxpayers who need more time to file beyond the July 15 deadline must file their extension requests on paper using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. That's because e-file options for requesting an extension are not available after April 15.

By filing this form, disaster-area taxpayers will have until Oct. 15 to file, though tax payments are still due by July 15. Visit IRS.gov/extensions for details.

Other relief

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting with relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred or the return for the prior year. See Publication 547, Casualties, Disasters, and Thefts, for details.

Reminder for other disaster-area taxpayers

In addition, individuals and businesses in three other states face deadlines, later this summer, for filing their 2023 returns and paying any taxes due. This includes:

July 31 for two counties in Massachusetts: Bristol and Worcester.
Aug. 7 for two counties in Hawaii: Hawaii and Maui.
Eleven counties in Ohio: Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland and Union.

Special relief for terrorist attacks in Israel

Taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel, have until Oct. 7, 2024, to file and pay.

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe.

This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535

IR-2024-181: IRS reminder to disaster victims in three states: July 15 filing and payment deadline nears; others face due dates later this summer

IRS Newswire

July 3, 2024

News Essentials

The Newsroom Topics

IRS Resources