The IRS recently reissued a warning urging taxpayers to review the Employee Retention Credit guidelines before trying to claim the credit. Businesses should be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true.

“While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be promoters who aggressively mislead people and businesses into thinking they can claim these credits,” said Acting IRS Commissioner Doug O’Donnell.

“Anyone who is considering claiming this credit needs to carefully review the guidelines. If the tax professional they’re using raises questions about the accuracy of the Employee Retention Credit claim, people should listen to their advice. The IRS is actively auditing and conducting criminal investigations related to these false claims. People need to think twice before claiming this.”

2. IRS begins new Digital Intake initiative

As part of ongoing transformation efforts, the IRS successfully expanded its digital scanning. The Form 940 scanning process is off to a strong start. It will soon include Forms 1040 and 941. This effort is part of a multi-form, multi-solution initiative known as Digital Intake.

3. Tax Time Guides – Resource to help taxpayers file accurate return

With the 2023 tax filing season in full swing, the IRS reminds taxpayers to gather their necessary information and visit IRS.gov for updated resources and tools to help with their 2022 tax return. Below is a list of this year’s Tax Time Guides and the topics covered in each.

Things to consider when filing a 2022 tax return
- Changes to credits and deductions
- Transition year for 1099-K reporting
Report all income; gig economy and service industry, digital or foreign assets and sources
- Gig economy earnings are taxable
- Service industry tips are also taxable
- Understand digital asset reporting and tax requirements
Electronic payment and agreement options for taxpayers who owe
- Late filing versus late payment
- Same day payments, short- and long-term payment plans
- Options for those struggling to meet their tax obligations
- Video: Avoiding Interest and Penalty Charges
Use the Where’s My Refund? tool or IRS2Go app to conveniently check tax refund status
- Refund updates
- Refund timing
- Earned Income Tax Credit and Additional Tax Credit
Make IRS.gov the first stop for tax help
- Prepare and file taxes online for free
- Online Account can help
- Find answers with Interactive Tax Assistant

4. More important filing season information

IRS Free File expanded to state return filing
Millions of eligible taxpayers in more than 20 states can use the IRS’s Free File Guided Tax Preparation service to file both federal and state returns. Any taxpayer or family earning $73,000 or less in 2022 can use this free service.

Beware of new filing season scams involving Form W-2 wages
New scams urge people to use wage information on a tax return to claim false credits in hopes of getting a big refund. Scam artists suggest people make up large income and withholding figures as well as the employer it is coming from.

5. Tax deadline further extended for storm victims

The IRS is offering additional relief to storm victims in Federal Emergency Management Agency (FEMA) designated disaster areas. Disaster-area taxpayers in most of California and parts of Georgia and Alabama now have until Oct. 16, 2023 to file returns and pay taxes. Previously, the deadline was postponed to May 15, 2023.

6. Final regulations on e-file for businesses

The Department of Treasury and IRS issued final regulations amending rules for filing returns and other documents electronically. A free online portal, known as Information Returns Intake System (IRIS), launched last month to help businesses file Form 1099 series information returns electronically.

These final regulations reflect changes made by the Taxpayer First Act to increase e-filing without undue hardship on taxpayers.

7. Other tax news

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

Reminder to many retirees: Last day to start taking money out of IRAs and 401(k)s is April 1, 2023
2023 supplemental application period now open for Low Income Taxpayer Clinic grants
2023 IRS Nationwide Tax Forums to be held in five cities
Taxpayer Advocacy Panel welcomes 8 new members dedicated to improving IRS taxpayer services
Taxpayers can approve power of attorney or tax information authorization requests online
Taxpayer Assistance Centers open Saturdays across the nation to improve service

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