Comment on tax certainty, issue resolution; disaster relief; art alert; chatbot expansion; more
Tax Resources for Small Business
Inside This Issue
1. IRS requests small businesses to comment on expanding tax certainty and issue resolution programs
The IRS’s Strategic Operating Plan is helping small businesses resolve potential compliance issues up front, through expanded pre-filing and tax certainty programs. These programs allow the IRS and businesses to work together in resolving complex issues before the business files a tax return.
The IRS requests comments from small businesses about improving and expanding tax certainty and issue resolution options for business taxpayers by March 31, 2024.
See the expanding tax certainty and issue resolution programs IRS news release for details and how to submit comments.
Terrorist attacks in the State of Israel
Individuals and businesses affected by the terrorist attacks in the State of Israel now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.
California storm victims
The IRS further postponed tax deadlines for most California taxpayers to Nov. 16, 2023. In the wake of last winter’s natural disasters, the normal spring due dates had previously been postponed to Oct. 16.
Seawater and hurricanes
Individuals and businesses impacted by seawater intrusion in parts of Louisiana, Hurricane Lee anywhere in Maine and Massachusetts and Hurricane Idalia in 28 of 159 counties in Georgia now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments.
The IRS provided guidance for employers whose employees forgo sick, vacation or personal leave to aid victims of the wildfires that began in parts of Hawaii on Aug. 8, 2023.
Farmers and ranchers
Eligible farmers and ranchers in 49 states and other areas forced to sell livestock due to drought may have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales.
The IRS warns taxpayers to watch for promotions involving exaggerated art donation deductions that can target high-income filers, and offers special tips to avoid getting caught them.
As part of a larger effort to increase compliance work on high-income individuals and corporations, and protect taxpayers from scams, the IRS has active promoter investigations and taxpayer audits underway in this area.
Find details about these schemes, including:
The IRS is using Inflation Reduction Act funding to expand its chatbot technology, which quickly answers basic questions for taxpayers receiving notices about possibly underreporting their taxes. The newest chatbot feature will assist taxpayers who receive notices CP2000, CP2501 and CP3219A. These mailings inform taxpayers if the tax information the IRS received from third parties doesn’t match the information they provided to the IRS themselves.
Rollout of the newest chatbot builds on prior IRS successes using the technology to help improve taxpayer service. Since January 2022, IRS voice and chatbots, both in English and Spanish, helped more than 13 million taxpayers avoid wait times by resolving their tax issues, including setting up roughly $151 million in payment agreements.
The IRS plans to continue additional bot technology features in the future to assist taxpayers with more complex issues.
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain groups who have consistently faced significant barriers to employment. The WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.
For more information, guidelines and to determine if an employer qualifies for the credit, visit the WOTC page on IRS.gov.
The following information may be of interest to individuals and groups in or related to small businesses:
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