ERC deadline, Form 1099-K, High income non-filers, filing help, disaster relief

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e-News for Small BusinessMarch 12, 2024

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Issue Number:  Issue 2024-04

Inside This Issue

  1. Businesses: Review Employee Retention Credit claims by key March 22 deadline for incorrect credits; take action to avoid future issues
  2. Know the facts about receiving Form 1099-K in 2024
  3. IRS improves Where’s My Refund? tool for 2024
  4. What to know before completing a tax return
  5. Interest rates remain the same for the second quarter of 2024
  6. Electronically filed returns rejected for missing Form 8962
  7. Taxpayers impacted by severe storms qualify for tax relief
  8. Taxpayer Advocacy Panel seeks civic-minded volunteers to apply for the 2025-member year
  9. IRS launches new effort aimed at high-income non-filers
  10. Other tax news

1.  Businesses: Review Employee Retention Credit claims by key March 22 deadline for incorrect credits; take action to avoid future issues


The IRS urges businesses to review eligibility for the ERC before an approaching March deadline to voluntarily resolve incorrect claims and avoid future issues, such as penalties and interest.

Businesses that received the credit but don’t meet the ERC rules can apply for the ERC Voluntary Disclosure Program before the March 22 deadline to get a 20% discount on their repayment, among other benefits. The IRS also offers a special ERC Withdrawal Program for those whose claims haven’t been processed yet. View the IRS’s Voluntary Disclosure Program webinar for more information.

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2.  Know the facts about receiving Form 1099-K in 2024


To help taxpayers with filing, the IRS debunked some common myths and scenarios to help small businesses and taxpayers understand responsibilities about Forms 1099-K received in 2024.

The IRS continues to see misinformation circulating about why taxpayers may or may not have received a Form 1099-K.

More information is available at IRS.gov: see what to do with Form 1099-K and frequently asked questions.

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3.  IRS improves Where’s My Refund? tool for 2024


The IRS reminds taxpayers of recent improvements to Where’s My Refund? on IRS.gov. The tool now provides more information and remains the best way to check the status of a refund.

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4.  What to know before completing a tax return 


The IRS kicked off its 2024 Tax Time Guide series to help remind taxpayers of key items they’ll need to file a 2023 tax return.

As part of its four-part, weekly Tax Time Guide series, the IRS continues to provide new and updated resources to help taxpayers file an accurate tax return.

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5.  Interest rates remain the same for the second quarter of 2024


The IRS announced interest rates will remain the same for the calendar quarter beginning April 1, 2024.

In the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.

These interest rates are computed from the federal short-term rate determined during January 2024. For further details review Revenue Ruling 2024-6.

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6.  Electronically filed returns rejected for missing Form 8962


The IRS reminds taxpayers that an electronically filed tax return will be rejected if the taxpayer is required to reconcile advance payments of the premium tax credit on Form 8962, Premium Tax Credit (PTC) but doesn’t do so.

They must file Form 8962 if any family member was enrolled in Marketplace health insurance and IRS records show that APTC was paid to their Marketplace insurance company.

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7.  Taxpayers impacted by severe storms qualify for tax relief


The IRS announced tax relief for individuals and businesses in parts of California affected by severe storms and flooding that began on Jan. 21, 2024, and parts of Washington state affected by wildfires that began on Aug. 18, 2023.

These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS advises farmers and fishers who chose to forgo making estimated tax payments by January that they must generally file their 2023 federal income tax return and pay all taxes due by Friday, March 1, 2024. In such instances, taxpayers can avoid estimated tax penalties.

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

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8.  Taxpayer Advocacy Panel seeks civic-minded volunteers to apply for the 2025-member year


The IRS announced vacancies in 29 states and territories for the volunteer-led Taxpayer Advocacy Panel (TAP).

TAP members are selected to achieve demographic and geographic diversity, providing representation from all 50 states, the District of Columbia, Puerto Rico and an additional member representing the interests of taxpayers working, living or doing business abroad.

For additional information about TAP, visit ImproveIRS.org or call 888-912-1227 and select prompt number five.

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9.  IRS launches new effort aimed at high-income non-filers


The IRS announced a new effort focused on high-income taxpayers who have failed to file federal income tax returns. Using Inflation Reduction Act funding, the IRS will issue compliance letters to more than 125,000 cases where tax returns haven’t been filed since 2017.

This week, the IRS will begin mailing compliance alerts for failure to file a tax return, formally known as the CP59 notice. About 20,000 to 40,000 letters will go out each week, beginning with filers in the highest-income categories.

The new non-filer initiative is part of a larger effort underway with the IRS working to ensure large corporate, large partnership and high-income individual filers pay the taxes they owe.

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10.  Other tax news


The following information may be of interest to individuals and groups in or related to small businesses:

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