The Internal Revenue Service today reminded employers that the next quarterly payroll tax return is due November 1, 2021. The IRS urges employers to use the speed and convenience of filing the returns electronically.

E-filing is the most accurate method to file returns and saves taxpayers time by performing calculations and auto-populating forms and schedules with a step-by-step process. The IRS acknowledges receipt of e-filed returns within 24 hours, giving taxpayers reassurance that their return was not misplaced or lost in the mail. Electronically filed returns reduce processing time and have fewer errors, which reduces a taxpayer’s chance of receiving an IRS notice. E-file users also receive missing information alerts.

Two options for electronically filing payroll tax returns:

• Self file

  • Purchase IRS-approved software.
  • Business owners may need to pay a fee to electronically file their returns.
  • Apply for an online signature PIN or scan and attach Form 8453-EMP for the required signature.

• Tax professional file

  • Use the Authorized IRS e-file Provider Locator Service to find a tax professional who can file on behalf of the business.

The IRS requires all authorized IRS e-file providers to ensure only authorized users have access to secure information. Only the business owner, authorized signers and reporting agents can apply for an online signature PIN. Third parties (such as attorneys, CPAs, tax return preparers or other tax professionals) can’t request a PIN on behalf of the business, nor can they use the PIN to sign returns on behalf of their clients.

For more information on electronic filing of payroll tax returns, see the E-file Employment Tax Forms page.

COVID-related Employer Tax Credits

The credit for qualified sick and family leave wages has been extended and amended.

The employer tax credits for qualified sick and family leave wages gives all American businesses with fewer than 500 employees funds to provide their employees with paid leave, either for the employee’s own health needs or to care for family members. The American Rescue Plan of 2021 further amended and extended the tax credits (and the availability of advance payments of the tax credits) for paid sick and family leave. See Notice 2021-24 PDF for guidance on the ability to reduce deposits and request advances for the credits for periods of leave through September 30, 2021.

The Employee Retention Credit has been extended and amended.

The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees. The modified and extended credit is available for qualified wages paid before January 1, 2022. Generally, the rules for the Employee Retention Credit for the second quarter of 2021 and the third and fourth quarters of 2021 are substantially similar.

For more information about other coronavirus-related tax relief, visit IRS.gov/coronavirus.

Advance Child Tax Credit

The IRS encourages employers to help get the word out about the advance payments of the Child Tax Credit. Employers have direct access to many who may receive this credit. More information on the Advance Child Tax Credit is available on IRS.gov. The website has tools employers can use to deliver this information, including e-posters, drop-in articles (for paycheck stuffers, newsletters) and social media posts to share.

For more information see Advance Child Tax Credit Payments.

Source: IRS, October 20, 2021

The Internal Revenue Service today announced that beginning October 18, the IRS’s large business division will accept all taxpayer requests to meet with IRS employees using secure videoconferencing. This step extends the practice used during the pandemic to accommodate taxpayers who sought more than meeting with an IRS employee over telephone calls.

“Since 2020, we advanced several measures to better interact virtually and digitally with large business taxpayers,” said Nikole Flax, IRS commissioner of the Large Business and International Division (LB&I). “Our success in using these tools and the convenience and efficiency for taxpayers and their representatives convinced us that the way forward will continue to involve the use of video-teleconferencing.”

The new guidance, Video Meetings with LB&I Taxpayers and their Representatives PDF, requires LB&I employees to grant large business taxpayer requests for a secure video meeting with IRS-approved platforms in lieu of an in-person or telephone discussion with a compliance function.

Today’s announcement represents a step forward in the IRS’s effort to work with taxpayers in a virtual environment, including the expanded use of secure email PDF and the launch of a virtual reading room environment to enable large LB&I taxpayers and IRS agents to share certain privileged taxpayer documents in a read-only capacity. In addition, LB&I also launched and expanded its use of paperless processes so that cases can continue to move swiftly through examination and resolution.

These efforts are aimed at continuing to improve service to meet the needs of large business taxpayers and their representatives and are a part of the IRS’s ongoing commitment to find more convenient and effective ways to interact with taxpayers and the community of tax professionals.

LB&I is responsible for tax administration activities for domestic and foreign businesses with a United States tax reporting requirement and assets equal to or exceeding $10 million, as well as the Global High Wealth and International Individual Compliance programs.

Source: IRS

WASHINGTON — The Internal Revenue Service recently awarded over $41 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants to organizations that provide free federal tax return preparation.

This year, the IRS awarded grants to 34 TCE and 300 VITA applicants. The IRS received 379 applications requesting over $70 million.

The TCE program, established in 1978, provides free tax counseling and federal return preparation to individuals who are age 60 or older. Volunteers receive training and technical assistance to provide assistance at community locations across the nation.

The VITA program, created in 1969, assists underserved communities, such as low- and moderate-income individuals and limited English proficient taxpayers. VITA grant recipients provide free federal tax return preparation and electronic filing. The grant program helps to expand VITA services to underserved populations.

The IRS forms partnerships with a wide variety of organizations across the country to develop VITA and TCE programs. Community partners include non-profit agencies, faith-based organizations, community centers and large employers. The IRS provides tax law training, certification and oversight to these organizations assisting their efforts to prepare accurate returns.

For information on applying for the TCE or VITA programs along with a list of current grant recipients, visit the TCE webpage or the VITA Grant webpage. For details on becoming a TCE or VITA volunteer, visit IRS Tax Volunteers.

Source: IRS – IR-2021-200, October  12, 2021

Tax pros: 2021 self-study seminars now available for continuing education credit

WASHINGTON — The Internal Revenue Service today announced that 18 new self-study seminars are available through the IRS Nationwide Tax Forums Online.

Tax professionals – CPAs, enrolled agents, Annual Filing Season Program participants and others – can earn continuing education for $29 per credit.

The new seminars were recorded in July and August at the 2021 IRS Nationwide Tax Forum.

2021 Nationwide Tax Forums Online course listing

1. Advocating for Taxpayers in Order to Avoid Abusive Tax Schemes
2. Be Tax Ready – Understanding Rules for Due Diligence and the Child Tax Credit and Earned Income Tax Credit Under the American Rescue Plan Act of 2021
3. Charities & Tax-Exempt Organizations Update
4. Closer Look at the IRS Independent Office of Appeals
5. Collection Flexibilities During Difficult Economic Times
6. Common Issues Presented to OPR and Best Practices to Address Them
7. Determining an Individual’s Tax Residency Status
8. e-Services and You
9. Gig Economy
10.  Helping You and Your Clients Steer Clear of Fraud and Scams
11.  Key Enforcement Issues
12. Keynote Address
13. Keys to Mastering Due Diligence Requirements and What to Expect During a Due Diligence Audit
14.  Overview of Taxpayer Civil Rights
15.  Professional Responsibility Obligations when Practicing before the IRS: OPR and Circular 230
16.  Retirement Plans – IRS Compliance Initiatives
17.  Tax Law Changes from a Forms Perspective
18.  Virtual Currency

These 18 courses are now available in addition to 37 sessions from previous years that are also available for credit.

Information on continuing education credits

The Nationwide Tax Forums Online is a qualified sponsor of continuing education registered with the IRS Return Preparer Office (RPO) and the National Association of State Boards of Accountancy (NASBA).

To earn credit, tax pros need to create an account, answer review questions throughout the seminar and pass a short test.

The online seminars can be reviewed for free. Individuals who choose this option will not have access to the review questions or final examination and will not receive credit.

For more information, visit IRS Nationwide Tax Forums Online.

Source: IRS