WASHINGTON — The Internal Revenue Service today announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.

In Notice 2023-71PDF, posted today on IRS.gov, the IRS provided relief to certain taxpayers who, due to the terrorist attacks, may be unable to meet a tax-filing or tax-payment obligation, or may be unable to perform other time-sensitive tax-related actions. The IRS will continue to monitor events and may provide additional relief.

Filing and Payment Relief

Today’s notice postpones various tax filing and payment deadlines that occurred or will occur during the period from Oct. 7, 2023, through Oct. 7, 2024 (postponement period). As a result, affected individuals and businesses will have until Oct. 7, 2024, to file returns and pay any taxes that were originally due during this period. Among other things, this includes:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief. So, these individuals filing on extension have more time to file, but not to pay.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023. Similarly, these corporations have more time to file, but not to pay.
• 2023 individual and business returns and payments normally due on March 15 and April 15, 2024. So, these individuals and businesses have both more time to file and more time to pay.
• Quarterly estimated income tax payments normally due on Jan. 16, April 15, June 17 and Sept. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, April 30 and July 31, 2024.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
• Retirement plan contributions and rollovers.

Other tax-related deadlines are postponed as well. See Notice 2023-71 and Rev. Proc. 2018-58 for details.

In addition, the penalty for failure to make payroll and excise tax deposits due on or after Oct. 7, 2023 and before Nov. 6, 2023, will be abated as long as the deposits are made by Nov. 6, 2023.

Who Qualifies for Relief?

• Any individual whose principal residence or business entity or sole proprietor whose principal place of business is in Israel, the West Bank or Gaza (the covered area).
• Any individual, business or sole proprietor, or estate or trust whose books, records or tax preparer is located in the covered area.
• Anyone killed, injured, or taken hostage due to the terrorist attacks.
• Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker.

The IRS automatically identifies taxpayers whose principal residence or principal place of business is located in the covered area based on previously filed returns and applies relief. Other eligible taxpayers can obtain this relief by calling the IRS disaster hotline at 866-562-5227. Alternatively, international callers may call 267-941-1000.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS for the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

Source: IRS-2023-188, Oct. 13, 2023

Generally, if you’re in a trade or business and receive more than $10,000 in cash in a single transaction or in related transactions, you must file Form 8300.

The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering. Money is “laundered” to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking, tax evasion and terrorist financing.

Who Must File

A “person” who must file Form 8300 includes an individual, company, corporation, partnership, association, trust or estate.

You must file Form 8300 electronically with FinCEN, or in paper-form with the IRS, if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory (American Samoa, The Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands).

Note: See How to File. Electronic filing mandate starting January 1, 2024.

When to File

You must file Form 8300 within 15 days after the date the cash transaction occurred.

Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. This statement must include the name, address, contact person and telephone number of your business and the aggregate amount of reportable cash. The statement must also indicate that you provided this information to the IRS.

Persons who file the required Form 8300 and do not provide a written statement to each person named on Form 8300 are subject to penalties. Penalty amounts are adjusted annually for inflation.

Keep in mind, when Forms 8300 filed due to suspicious activity that are filed under the $10,000 threshold and box 1b is checked off on the form, the statement is not to be provided to the individuals identified on the form. Forms filed under the dollar threshold are not required to be filed. Filing under the threshold is done on a voluntary basis. IRS highly encourages you to file suspicious activity when identified regardless of the dollar amount. Forms marked as suspicious are also treaded confidentially.

How to File

Effective January 1, 2024, you must electronically file (e-file) Forms 8300 if you’re required to e-file other information returns, such as Forms 1099 series and Forms W-2. You must e-file your Forms 8300 if you’re required to file at least 10 information returns of one or more type(s) other than Form 8300 during a calendar year.

For example, if you’re required to file five Forms W-2 and five Forms 1099-INT, then you’re required to file certain other information returns during that year electronically, including any Forms 8300. However, if you file less than 10 total information returns other than Forms 8300, you’re not required to file the information returns electronically and not required to file any Forms 8300 electronically. The number of Forms 8300 you file does not affect the electronic filing requirement.

Keep in mind, if you’re not required to e-file, you can still choose to do so.

Businesses that are not required to file their Forms 8300 electronically that choose to physically mail in their Forms 8300 to the IRS, will send their forms to:

Internal Revenue Service
Detroit Federal Building
P.O. Box 32621
Detroit, MI 48232

Waivers

You may file a request for a waiver from filing information returns electronically due to undue hardship. For more information, refer to Form 8508, Request for Waiver from Filing of Information ReturnsPDF. If the IRS grants you a waiver from electronically filing information returns, the waiver automatically applies to all Forms 8300 for the duration of the calendar year.

You must include the word ‘WAIVER’ on the center top of each Form 8300 (Page 1) when submitting the paper filed returns.

Note: Waivers for electronic filing are not required when business files less than 10 total information returns other than Forms 8300.

Exemptions

If using the technology required to e-file conflicts with your religious beliefs, you are automatically exempt from filing Form 8300 electronically. You must include the words “RELIGIOUS EXEMPTION” on the center top of each Form 8300 (Page 1) when submitting the paper filed returns.

Penalty for Paper Filing

If you are required to e-file but file by paper and you don’t have a waiver or religious exemption, you will be subject to a failure to file penalty.

Late Returns

You must identify late returns. You must file a late Form 8300 in the same way, either electronically or on paper, as a timely filed Form 8300. When filing a late Form 8300 electronically you must include the word “LATE” in the comments section of the return. When filing a late Form 8300 on paper you must write “LATE” on the center top of each Form 8300 (Page 1).

Note: Failure to file timely includes a failure to file in the required manner. If you are required to file electronically and failed to do so, Form 8300 would be considered late. Forms 8300 that are late are subject to penalty.

Recordkeeping

Remember, you must keep a copy of Form 8300 for five years. When e-filing, be sure to save a copy of the form before you finish submitting the return. Confirmation receipts don’t meet the recordkeeping requirement. You should associate the confirmation number with the saved copy.

Source: IRS-2023

The Internal Revenue Service is reminding taxpayers who pay estimated taxes that the deadline to submit their third quarter payment is Sept. 15, 2023.

Taxpayers not subject to withholding may need to make quarterly estimated tax payments. Taxpayers such as gig workers, sole proprietors, retirees, partners and S corporation shareholders generally must make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return.

A general rule of thumb is that taxpayers should make estimated tax payments if they expect:

• To owe at least $1,000 in taxes for 2023 after subtracting their withholding and tax credits.
• Their withholding and tax credits to be less than the smaller of:
  • 90% of the tax to be shown on their 2023 tax return or
  • 100% of the tax shown on their complete 12-month 2022 tax return.

More taxpayers will receive 1099-Ks for 2023

Taxpayers who were paid over $600 by payment apps and online marketplaces or received any amount by payment cards could receive a Form 1099-K, Payment Card and Third Party Network Transactions, starting January 2024, for payments received in 2023. This includes anyone with a side hustle, sole proprietors, and anyone selling goods and services online. It’s important to remember that taxpayers should report their income, unless it’s excluded by law, regardless of whether they receive a Form 1099-K or any other third-party reporting document. The 1099-K reporting threshold for third party reporting doesn’t change what counts as income or how tax is calculated. Find more information at Understanding Your Form 1099-K.

Figuring estimated tax

To figure estimated tax, taxpayers must calculate their expected Adjusted Gross Income (AGI), taxable income, taxes, deductions and credits for the year. To figure 2023’s estimated tax, it may be helpful to use income, deductions and credits from 2022 as a starting point.

Taxpayers can use the tools on IRS.gov to check if they are required to pay estimated taxes. The Tax Withholding Estimator, the IRS Interactive Tax Assistant and the worksheet in Form 1040-ES, Estimated Tax for Individuals all offer clear step-by-step instructions.

Avoid a penalty for underpayment

Taxpayers who underpay their taxes may have to pay a penalty regardless of whether they paid through withholding or through estimated tax payments. Late and skipped estimated tax payments can incur penalties even if a refund is due when a tax return is filed.

Taxpayers should use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if they owe a penalty. Taxpayers can also request a waiver of the penalty if they underpaid because of unusual circumstances and not willful neglect.

Special rules apply to some groups of taxpayers such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year.

Paying the easy way

An electronic payment is the easiest, fastest and most secure way to make an estimated tax payment. The Payments page on IRS.gov provides complete tax payment information, how and when to pay, payment options and more.

Taxpayers can securely log into their IRS Online Account or use IRS Direct Pay to submit a payment from their checking or savings account.

Taxpayers can also pay using a debit card, credit card or digital wallet. Taxpayers should note that the payment processor, not the IRS, charges a fee for debit and credit card payments. Both Direct Pay and the pay by debit card, credit card or digital wallet options are available online at IRS.gov/payments and through the IRS2Go app.

Taxpayers can also use the Electronic Federal Tax Payment System (EFTPS) to make an estimated tax payment. Payment by check or money order made payable to the “United States Treasury” is also an option.

The IRS encourages taxpayers earning income not normally subject to withholding to consider making estimated tax payments throughout the year to stay current and avoid a surprise at tax time.

The fourth and final estimated tax payment for tax year 2023 is due on Jan. 16, 2024.

Source: IRS-2023-165, Sept. 6, 2023

The Internal Revenue Service reminded consumers considering an automobile purchase to be sure to understand several recent changes to the new Clean Vehicle Credit for qualified plug-in electric drive vehicles, including qualified manufacturers and tax rules.

The Inflation Reduction Act of 2022 (IRA) made several changes to the new Clean Vehicle Credit for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles. The IRA also added a new credit for previously owned and commercial clean vehicles.

Before taxpayers purchase a clean vehicle they should be sure that the vehicle was made by a qualified manufacturer. Taxpayers must also meet other requirements such as the modified adjusted gross income limits.

To be a qualified manufacturer, the manufacturer must enter into an approved agreement with the Internal Revenue Service and supply the IRS with valid vehicle identification numbers (VINs) that can later be matched at the time of filing to the VIN reported on the return.

When purchasing a new or used clean vehicle, purchasers should check if the make and model are eligible. In addition, for a new or used clean vehicle to be eligible for a Clean Vehicle Credit, the seller must provide the buyer with a seller report verifying that the vehicle purchased will qualify for the credit, which will include the make, model, and VIN.

Also, the clean vehicles tax credits are non-refundable, meaning that they can increase a refund or reduce the amount of tax owed, they cannot be used to create a tax refund.

The amount of tax owed will determine if the full amount or only a portion of the credit can be claimed.

For more information on these credits and other clean energy credits related to the Inflation Reduction Act, check Credits and Deductions Under the Inflation Reduction Act of 2022.

Source: IRS-2023-160, Sept. 1, 2023

As part of an expanding effort to improve service, the Internal Revenue Service continues expanding Taxpayer Assistance Centers across the country while also starting a special series of events to help taxpayers located in areas not close to the agency’s in-person offices.

In these new Community Assistance Visits, the IRS will set up a temporary Taxpayer Assistance Center to give taxpayers from underserved areas an opportunity to meet face-to-face with IRS assistors. This is part of a larger effort underway to transform the IRS and improve service to taxpayers as part of the new Strategic Operating Plan with funding made available through the Inflation Reduction Act.

Agency continues reopening walk-in offices; 35 TACs reopened or added following Inflation Reduction Act funding

The IRS conducted the first event last month in Paris, Texas, and has plans to hold similar events in more states. Currently, seven additional locations have been determined in Michigan, Nebraska, Idaho, Alaska, Hawaii, Oregon and New Mexico.

“A key part of the IRS transformation effort will be getting taxpayers the help they need,” said IRS Commissioner Danny Werfel. “While an important part of this involves providing improved online tools and services, in-person assistance is a vital piece that the IRS cannot overlook. We continue to add staff and reopen previously closed offices. But to help people farther away, these special community visits are designed to get into places where IRS offices are a long distance away or are not convenient for some taxpayers. We want to do more to help taxpayers, and the IRS is putting our additional funding to work through important projects like this.”

The Inflation Reduction Act, approved in August, provided the IRS long-term funding for the agency to transform its operations and improve taxpayer service, enforcement and technology. Projects like the Community Assistance Visits represent part of the IRS Strategic Operating Plan, the blueprint for the agency’s transformation work.

For years, observers have noted that IRS Taxpayer Assistance Centers were too limited in number or are too far to help many people who need in-person assistance or who don’t have access to online tools.

To address this, the IRS has opened or reopened 35 Taxpayer Assistance Centers since the Inflation Reduction Act funding was approved at locations across the country; a full list is below. In addition, the IRS has hired more than 600 personnel in TACs to provide in-person assistance.

The IRS believes Community Assistance Visits will help address the needs of taxpayers who aren’t able to visit an in-person office. Paris, Texas was selected, in part, based on its distance to the closest permanent IRS Taxpayer Assistance Center. The nearest center is about 90 miles away.

Currently, the IRS plans to hold additional Community Assistance Visits in at least seven locations through October. The initial list includes Alpena, Michigan; Hastings, Nebraska; Twin Falls, Idaho; Juneau, Alaska; Lihue, Hawaii; Baker City, Oregon; and Gallup, New Mexico.

For the Paris visit, the IRS partnered with the local United Way organization. The IRS will be working with other community groups for future visits to obtain secure space to help taxpayers. To get help, taxpayers must bring current state or government issued photo identification and any relevant letters or notices they received from the IRS, plus any requested documents.

During the event, the IRS also welcomes tax professionals, lawyers and preparers and their clients to work account-related issues.

During the Community Assistance Visit, taxpayers can meet one-on-one with IRS assistors to receive these services:

• Account inquiries (help with letters, notices and levies on wages or bank account).
• Adjustments (changes to tax account information or payments).
• Basic tax law assistance (answers related to individual federal tax returns).
• Payment arrangements. Because this is a temporary location, IRS assistors cannot accept payments of any kind. Taxpayers are encouraged to make payments online.
• Authentication of taxpayer identities as part of the Taxpayer Protection Program (TPP).
• Transcripts and tax forms (order only).
• Information on IRS.gov resources and tools.

Professional foreign language interpretation will be available in many languages through an over-the-phone translation service. For deaf or hard of hearing individuals who need sign language interpreter services, IRS staff will schedule appointments for a later date. Alternatively, these individuals can call TTY/TDD 800-829-4059 to make an appointment.

Taxpayers who would like to get help can call 844-545-5640 from 7 a.m. to 7 p.m., to make an appointment to visit an existing IRS Taxpayer Assistance Center. Contact Your Local Office has information for IRS Taxpayer Assistance Centers.

List of reopened Taxpayer Assistance Centers since August 2022 following Inflation Reduction Act funding

 *TACs that have been added. The others were reopened.

Source: IRS-2023-127, July 14, 2023