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Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. This is one of 10 basic rights known collectively as the Taxpayer Bill of Rights.

The right to pay no more than the correct amount of tax means that taxpayers can:

  • File for a refund if they believe they overpaid their taxes.
  • Contact the IRS if they believe there is an error on a notice or bill.
  • File an amended tax return if an error is discovered after the original return was filed.
  • Sign into IRS Online Account and request that any amount owed be removed if it exceeds the correct amount due.
  • Request that the IRS remove interest from the account if the agency caused unreasonable errors or delays.
  • Submit an Offer in Compromise to ask the IRS to accept less than the full amount of tax debt. Taxpayers do this if they believe all or part of the debt is not owed.

More information:

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Taxpayers who can’t pay their tax bill by the April 15, 2024, deadline shouldn’t panic – the IRS is here to help. There are several options to help taxpayers meet their obligations.

It’s important for taxpayers to file their tax return or request an extension of time to file at IRS.gov/extension by the April 15, 2024, deadline – even if they can’t pay their full tax bill. This will help them avoid a failure to file penalty.

This extension applies only to the filing deadline, not the payment deadline. Except for eligible victims of recent natural disasters who have until Oct. 15 to make various tax payments, taxpayers who can’t pay the full amount of taxes they owe by April 15 should file and pay what they can. Making a payment, even a partial payment, will help limit penalty and interest charges.

Help for taxpayers who can’t pay in full
The IRS has options available to help those who owe a tax obligation and can’t pay all or part of it. Those struggling to meet their tax obligation may consider these options to resolve their tax bill.

Online payment plans
Taxpayers who owe but can’t pay in full by April 15 don’t have to wait for a tax bill to set up a payment plan. They can apply for a payment plan at IRS.gov/paymentplan. These plans can be short- or long-term.

Short-term payment plan – The payment period is 180 days or less, and the total amount owed is less than $100,000 in combined tax, penalties and interest.
Long-term payment plan – The payment period is longer than 180 days, paid in monthly payments, and the amount owed is less than $50,000 in combined tax, penalties and interest.

Offer in compromise
An offer in compromise lets taxpayers settle their tax debt for less than the full amount they owe. It may be an option if they can’t pay their full tax liability or doing so creates a financial hardship. The IRS considers a taxpayer’s unique set of facts and circumstances when deciding whether to accept an offer.

Taxpayers can see if they’re eligible and prepare a preliminary proposal with the Offer in Compromise Pre-Qualifier Tool.

Penalty relief to eligible taxpayers
Taxpayers may qualify for penalty relief if they tried to comply with tax laws but were unable due to circumstances beyond their control.

Penalties may apply
Taxpayers who owe tax and don’t file on time may be charged a failure to file penalty. This penalty is usually five percent of the tax owed for each month or part of a month that the tax return is late, up to 25 percent. The failure-to-pay penalty applies if a taxpayer doesn’t pay the taxes they report on their tax return by the due date.

Interest is based on the amount of tax owed and for each day it’s not paid in full. The interest is compounded daily, so it’s assessed on the previous day’s balance plus the interest. Interest rates are determined every three months and can vary based on type of tax — for example, individual or business tax liabilities. More information is available on the interest page of IRS.gov.

More information
IRS.gov/Payment
What If I Can’t Pay My Taxes?
What Is the Due Date of My Federal Tax Return or Am I Eligible to Request an Extension?
Tax Topic 653, IRS Notices and Bills, Penalties, and Interest Charges

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A tax credit is an amount taxpayers claim on their tax return generally to reduce their income tax. Eligible taxpayers can use them to potentially reduce their tax bill and increase their refund.

Refundable vs. nonrefundable tax credits

Some tax credits are refundable. If a taxpayer’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. Some taxpayers who aren’t required to file may still want to do so to claim refundable tax credits. Not all tax credits are refundable, however. For nonrefundable tax credits, once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.

There are a wide range of tax credits, and the amount and types available can vary by tax year. Taxpayers should carefully review current tax credits when preparing their federal tax return.

Earned Income Tax Credit

One refundable tax credit for moderate- and low-income taxpayers is the Earned Income Tax Credit (EITC). The IRS estimates four out of five eligible workers claim the EITC, which means millions of taxpayers are putting EITC dollars to work for them. Unfortunately, there are millions of workers who qualify but don’t claim the EITC – missing out on thousands of dollars every year. This includes workers who are:

  • Grandparents raising their grandchildren.
  • Native Americans.
  • Veterans.
  • Self-employed.
  • Without a qualifying child.
  • Recently divorced, unemployed or experienced other changes to their marital, financial or parental status.
  • Below the filing requirement with earnings.
  • Not proficient in English.
  • Living in rural areas.
  • Receiving certain disability pensions or have children with disabilities.

Taxpayers can find detailed information in Publication 596, Earned Income Credit, or use the EITC Assistant to learn if they’re eligible for the tax credit.

Child Tax Credit and Child and Dependent Care Tax Credit

The Child Tax Credit is nonrefundable and reduces the taxpayer’s tax liability. To qualify, the child must:

  • Be a U.S. citizen, U.S. national, or U.S. resident under age 17.
  • Have a Social Security number.
  • Be claimed as a dependent on the taxpayer’s tax return.

Qualifying children may include foster children or extended family members if they meet other criteria. Dependents not eligible for the Child Tax Credit may qualify a taxpayer for the credit for other dependents.

Taxpayers who paid someone to care for their child, spouse or dependent so they can work, be a full-time student or look for work may be able to reduce their tax by claiming the Child and Dependent Care Credit.

Publication 503, Child and Dependent Care Expenses, has detailed information.

American Opportunity Tax Credit

The American Opportunity Tax Credit is for qualified education expenses paid by or on behalf of an eligible student for the first four years of higher education. It is partially refundable. If the credit reduces the amount of tax a taxpayer owes to zero, they can get a refund of 40% of any remaining amount of the credit, up to $1,000. Taxpayers can get a maximum annual credit of $2,500 per eligible student. The amount of the credit is 100% of the first $2,000 and 25% of the next $2,000 of qualified education expenses a taxpayer paid for each eligible student.

To claim the full credit, a taxpayer’s income must be $80,000 or less ($160,000 or less for married filing jointly). The credit phases out entirely for taxpayers with income over $90,000 ($180,000 for joint filers).

Publication 970, Tax Benefits for Education, has detailed information.

Other tax credits

There are many other tax credits for which a taxpayer may be eligible. Taxpayers can review the credits and deductions page on IRS.gov to see which credits they may be able to claim, including:

  • Family and Dependent Credits
  • Income and Savings Credits
  • Homeowner Credits
  • Electric Vehicle Credits
  • Health Care Credits

Interactive Tax Assistant can help with tax credit questions

The Interactive Tax Assistant is a tool that provides answers to many common tax law questions based on an individual’s specific circumstances. User information is anonymous, and the system discards it when the user exits a topic. The assistant uses information to answer taxpayer questions and won’t share or store it, nor can it identify individuals. It can help taxpayers with these tax credit-related questions:

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If a taxpayer sold goods or services in 2023 and received payments through certain payment apps or online marketplaces or accepted payment cards, they could have received a third party reporting document Form 1099-K, Payment Card and Third Party Network Transactions.

Following feedback from taxpayers, tax professionals and payment processors, and to reduce taxpayer confusion, the IRS announced Notice 2023-74, which delayed the new federal law $600 reporting threshold for tax year 2023 on Form 1099-K, Payment Card and Third Party Network Transactions. The previous reporting thresholds remained in place for 2023, which are more than $20,000 in payments and over 200 transactions. Taxpayers could have still received forms below the threshold.

It’s important to know that regardless of if a taxpayer received a Form 1099-K or not, they must report their income. This includes payments they receive in cash, property, goods, digital assets or foreign sources or assets.

The Form 1099-K should not report personal payments like gifts and reimbursements.

What to do when filing taxes

It’s important to understand why an individual received a Form 1099-K. Taxpayers can then use it with their other tax records when it’s time to file their return. The form provides the gross amount of payment card/third party network transactions and may include a combination of different kinds of total payments received.

It’s important to note, just because a payment is reported on a Form 1099-K does not mean it’s taxable.

Taxpayers should review the form or forms, determine if the amount is correct, and determine any deductible expenses associated with the payment they may be able to claim when they file their taxes.

Selling personal items at a loss

If an individual sold items at a loss, which means they paid more for the items than for what they sold them, there is not a tax liability. They’ll be able to zero out the payment on their tax return by reporting both the payment and an offsetting adjustment on a Schedule 1 (Form 1040)PDF. This will ensure if they received these forms, they don’t have to pay taxes they don’t owe.

Selling personal items at a gain

If an individual sold items at a gain, which means they paid less than for what they sold it, they will have to report that gain as income, and it’s taxable.

See IRS.gov What to do with Form 1099-K for specific instruction on how to report personal item sales.

What to do with a Form 1099-K received in error

People may get a Form 1099-K when they shouldn’t have if it:

  • Reports personal payments from family or friends like gifts or reimbursements.
  • Doesn’t belong to them.
  • Duplicates a Form 1099-K or other information reporting form they already received.

If this happens:

  • Contact the issuer immediately – see “Filer” on the top left corner of Form 1099-K to find out the name and contact information of the issuer.
  • Ask for a corrected Form 1099-K that shows a zero amount.
  • Keep a copy of the original form and all correspondence with the issuer for your records.
  • Don’t wait to file taxes. File even if a corrected Form 1099-K is unavailable.

What to do with an incorrect Form 1099-K

If the payee Taxpayer Identification Number (TIN) or gross payment amount is incorrect taxpayers should request a corrected form from the issuer.

  • See “Filer” on the top left corner of Form 1099-K to find the name and contact information of the issuer. If a taxpayer doesn’t recognize the issuer, they should contact the Payment Settlement Entity (PSE) identified on the bottom left corner of the form above their account number.
  • Keep a copy of the corrected Form 1099-K with other tax records, along with any correspondence from the issuer or PSE.
  • Don’t contact the IRS. The IRS can’t correct a Form 1099-K from an issuer.

Don’t wait to file taxes. To file a tax return, take these steps:

  • If the Payee Taxpayer Identification Number (TIN) is incorrect report payments from the Form 1099-K and any sources of income on the appropriate tax return you normally file.
  • If the gross payment amount is incorrect report the amount from your incorrect Form 1099-K on Schedule 1 (Form 1040), Additional Income and Adjustments to IncomePDF.

More information

See What to do with Form 1099-K for more information on how to report an incorrect Form 1099-K.

See Understanding your Form 1099-K and Form 1099-K FAQs for more information.

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When a small business decides to bring in a tax professional, they should know what to expect and how to select a reputable practitioner. The IRS has information and resources to make choosing a tax professional easier.

What a small business can expect from a tax professional
Tax professionals are often able to advise a small business on the most effective way to structure their business. For instance, they can help a business owner decide whether their business interests would be better protected as a sole proprietorship or if another business structure, such as a partnership or S corporation, would serve them better.

Many tax professionals inspect books and records to help a business make sure that it is reporting all income. They can also make sure the business claims all the deductions and credits available to it.

A tax professional can help small business taxpayers answer other questions as well, such as whether they are subject to excise taxes or need to file employment tax returns.

A qualified tax professional may be able to represent the business if it’s contacted by the IRS regarding a tax matter.

A knowledgeable practitioner is also aware of many tax-related scams, like phishing, unclaimed refunds, ghost preparers and others described on the Tax Scams and Consumer Alerts page of IRS.gov.  A practitioner knows that if something sounds too good to be true, it probably is, and they can help businesses avoid and report such scams.

Find a small business tax professional
Taxpayers are responsible for all the information on their income tax return no matter who prepares the return, so it’s important to find a reputable preparer. The IRS offers these tips to small businesses looking for a tax professional:

  • Check the IRS Directory of Preparers. It lists preparers who hold professional credentials recognized by the IRS or a Record of Completion in the IRS’s Annual Filing Season Program.
  • Check the preparer’s history with the Better Business Bureau or verify the enrolled agent’s status on IRS.gov.
  • Ask about the practitioner’s fees up front.
  • Find out if the preparer is an authorized e-file provider.
  • Ensure the preparer is available throughout the year to help address any questions about the preparation of the tax return.
  • Always review the business tax return before signing it.
  • Ensure the preparer signs the tax return and includes their 9-digit Preparer Tax Identification Number. All paid preparers must have a PTIN to prepare tax returns.

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Taxpayers can check the status of their refund easily and conveniently with the IRS Where’s My Refund tool at IRS.gov/refunds.

Refund status is available within 24 hours after the taxpayer e-filed their current year return. The tool also gives the taxpayer a personalized refund date after the IRS processes the return and approves the refund.

Where’s My Refund tool updates
Recent updates to the tool mean fewer taxpayers will need to call the IRS. These include:

  • Messages with detailed refund status in plain language.
  • Notifications that tell taxpayers whether the IRS needs additional information.

How to get started with Where’s My Refund
To use the tool, taxpayers need their:

  • Social Security number or Individual Taxpayer Identification number.
  • Filing status.
  • Exact amount of the refund claimed on their tax return.

Status of refunds
The tool shows three statuses:

  • Return received.
  • Refund approved.
  • Refund sent. 

When the status changes to “refund approved,” the IRS is preparing to send the refund, either as a direct deposit to the taxpayer’s bank account or directly to the taxpayer by a check in the mail to the address on their tax return.

When to check for status changes
Taxpayers don’t need to check their refund status more than once a day. The IRS updates Where’s My Refund overnight in most cases. Calling the IRS won’t speed up a tax refund. The information available on Where’s My Refund is the same information available to IRS telephone assistors. Taxpayers should allow time for their bank or credit union to post the refund to their account or for it to arrive in the mail.

Timing of refunds
The IRS issues most refunds in fewer than 21 days. Some tax returns require more time to review, and this can delay a refund. It takes longer to process a return if:

The IRS will contact taxpayers by mail if more information is needed to process a return. 

Refund less than expected
If a taxpayer refund isn’t what they expected, it may be due to changes made by the IRS. These changes could include corrections to Child Tax Credit or EITC amounts or an offset from all or part of the refund amount to pay past-due tax or debts. More information about reduced refunds is available on IRS.gov.

Taxpayers may contact our tax  office if further assistance is needed in obtaining their tax refund.

 

 

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To counter promoters that marketed misleading information about the Employee Retention Credit (ERC), the Internal Revenue Service urged businesses to review seven suspicious signs of a bad claim and see if the agency’s special programs can help them avoid future compliance issues.

To combat a wave of dubious ERC claims, the IRS has sharply increased compliance action through audits and criminal investigations – with more activity planned in the future. To help those businesses that were misled, the IRS has created special programs to help, including a limited-time offer through March 22 for employers to correct improper ERC claims at a sharp discount.

Employers who improperly claimed ERC can avoid penalties and interest – and even get a discount on repayments if they apply by March 22, 2024, to the ERC Voluntary Disclosure Program. The IRS also offers a special claim withdrawal process for businesses whose claim is still pending. Taking steps now to resolve these issues can help businesses get right and avoid future IRS action, and the agency urged businesses to immediately seek the help of a trusted tax professional to get help.

“Time is running out to take advantage of special IRS programs designed to help businesses misled into making questionable Employee Retention Credit claims,” said IRS Commissioner Danny Werfel. “We have set up a special program that allows repayment of bad claims at a steep discount, and we’re also offering those with pending claims to withdraw with no strings attached. Good people have gotten caught up in the frenzy around this credit, and the IRS wants to help those who want to get right through these special, limited-time programs. There are seven important red flags that businesses should review to determine if their claim is questionable.”

Seven suspicious signs an ERC claim could be incorrect

  • Too many quarters being claimed. Some promoters urged employers to claim the ERC for all quarters that the credit was available. Qualifying for all quarters is uncommon. Employers should carefully review their eligibility for each quarter.
  • Government orders that don’t qualify. Some promoters told employers they can claim the ERC if any government order was in place in their area, even if their operations weren’t affected or if they chose to suspend their business operations voluntarily. This is false. To claim the ERC under government order rules:
    • Government orders must have been in effect and the employer’s operations must have been fully or partially suspended by the government order during the period for which they’re claiming the credit.
    • The government order must be due to the COVID-19 pandemic.
    • The order must be a government order, not guidance, a recommendation or a statement.

Some promoters suggest that an employer qualifies based on communications from the Occupational Safety and Health Administration (OSHA). This is generally not true. See the ERC FAQ about OSHA communications and the 2023 legal memo on OSHA communications for details and examples.

The frequently asked questions about ERC – Qualifying Government Orders section of IRS.gov has helpful examples. Employers should make sure they have documentation of the government order related to COVID-19 and how and when it suspended their operations. Employers should avoid a promoter that supplies a generic narrative about a government order.

  • Too many employees and wrong calculations. Employers should be cautious about claiming the ERC for all wages paid to every employee on their payroll. The law changed throughout 2020 and 2021. There are dollar limits and varying credit amounts, and employers need to meet certain rules for wages to be considered qualified wages, depending on the tax period. Employers should review all calculations to avoid overclaiming the credit. They should not use the same credit amount across multiple tax periods for each employee. For details on credit amounts, see the ERC 2020 vs 2021 Comparison Chart.
  • Business citing supply chain issues. Qualifying for ERC based on a supply chain disruption is very uncommon. A supply chain disruption by itself doesn’t qualify an employer for ERC. An employer needs to ensure that their supplier’s government order meets the requirements. Employers should carefully review the rules on supply chain issues and examples in the 2023 legal memo on supply chain disruptions.
  • Business claiming ERC for too much of a tax period. It’s possible, but uncommon, for an employer to qualify for ERC for the entire calendar quarter if their business operations were fully or partially suspended due to a government order during a portion of a calendar quarter. A business in this situation can claim ERC only for wages paid during the suspension period, not the whole quarter. Businesses should check their claim for overstated qualifying wages and should keep payroll records that support their claim.
  • Business didn’t pay wages or didn’t exist during eligibility period. Employers can only claim ERC for tax periods when they paid wages to employees. Some taxpayers claimed the ERC but records available to the IRS show they didn’t have any employees. Others have claimed ERC for tax periods before they even had an employer identification number with the IRS, meaning the business didn’t exist during the eligibility period. The IRS has started disallowing these claims, and more work continues in this area as well as other aspects of ERC.
  • Promoter says there’s nothing to lose. Businesses should be on high alert with any ERC promoter who urged them to claim ERC because they “have nothing to lose.” Businesses that incorrectly claim the ERC risk repayment, penalties, interest, audit and other expenses.

The IRS has an interactive ERC Eligibility Checklist that tax professionals and taxpayers can use to check potential eligibility for ERC. It’s also available as a printable guide. The IRS’s frequently asked questions on ERC also include links to additional resources and some helpful examples.

More details on ERC Voluntary Disclosure Program, special withdrawal option

The IRS has two programs to voluntarily resolve improper claims and reduce costs and follow-up steps for businesses who fell for misinformation and aggressive marketing about the ERC.

  • The ERC Voluntary Disclosure Program, available through March 22, 2024, is for employers who need to repay ERC they received by Dec. 21, 2023, either as a refund or as a credit on a tax return. This option lets a taxpayer repay the incorrect ERC, minus 20%, for any tax period they weren’t eligible for ERC. Generally, businesses who enter this program don’t have to amend other returns affected by the incorrect ERC and don’t have to repay interest they received from the IRS on an ERC refund.
  • Businesses should quickly pursue the claim withdrawal process if they need to ask the IRS not to process an ERC claim for any tax period that hasn’t been paid yet. Taxpayers who received an ERC check but haven’t cashed or deposited it can also use this process to withdraw the claim and return the check. The IRS will treat the claim as though the taxpayer never filed it. No interest or penalties will apply.

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WASHINGTON – The Internal Revenue Service announced today that compliance efforts around erroneous Employee Retention Credit (ERC) claims have topped more than $1 billion so far since last fall as work continues on a number of efforts to counter questionable claims pushed by aggressive marketing, including an aggressive push on claims made for 2021.

“The IRS has made important progress in our compliance efforts protecting more than $1 billion in revenue in just six months, but we remain deeply concerned about widespread abuse involving these claims that have harmed small businesses,” said IRS Commissioner Danny Werfel. “We are encouraged by the results so far of our initiatives designed to help misled businesses, and the IRS will continue our broader compliance work given the aggressive marketing we’ve seen with this credit.”

Three IRS ERC initiatives have protected more than $1 billion just since the IRS instituted a processing moratorium on new claims beginning Sept. 14, 2023. An additional $3 billion in claims is being reviewed by IRS Criminal Investigation. Key figures from the three programs show:

  • The special ERC Voluntary Disclosure Program (VDP), has yielded more than $225 million from over 500 taxpayers with another 800 submissions still being processed and more being filed at the last minute before the deadline.
  • The ongoing claim withdrawal process for those with unprocessed ERC claims has led to 1,800 entities withdrawing $251 million.
  • The IRS has determined that more than 12,000 entities filed over 22,000 claims that were improper and resulted in $572 million in assessments. The IRS is continuing this work, and more activity is planned in this – and other areas in the months ahead.

The amount protected by these IRS ERC initiatives will continue to grow as additional voluntary disclosures are processed, additional claims are withdrawn and additional compliance work is completed. The statistics above are through March 15.

These ERC initiatives are working to protect businesses from ERC promoters that shared misleading information or misrepresented eligibility rules and lured businesses to apply for the ERC when they didn’t qualify. The ERC program began as a critical effort to help businesses during the pandemic, but the program later became the target of aggressive marketing well after the pandemic ended. Some promoter groups may have called the credit by another name, such as a grant, business stimulus payment, government relief or other names besides ERC or Employee Retention Tax Credit (ERTC).

ERC VDP suspended after March 22; could potentially reopen at a future date

The IRS announced today it will suspend the VDP after March 22. The IRS may reopen the VDP at a future date depending on whether Congress extends the statute of limitations for ERC claims. The Treasury Department has proposed extending the statute of limitations to give the IRS additional time to address unscrupulous ERC claims.

Currently, the statute of limitations for claims processed for Tax Year 2020 will expire on April 15. Assessments on Tax Year 2020 claims will cease after this date. However, compliance activities regarding Tax Year 2021 ERC claims will continue since that statute does not expire until later.

“The IRS continues to closely monitor discussions in Congress regarding ERC and the need to extend by statute critical tools to protect against improper claims,” Werfel said. “In any scenario, the IRS will continue working on a wide range of ERC issues, including the larger dollar 2021 erroneous claims.”

If the VDP is reopened at a future date, the terms will be no better than the current program, which offers a special 20% discount.

The ERC Voluntary Disclosure Program, available through March 22, 2024, is for employers who need to repay ERCs they received through Dec. 21, 2023, either as a refund or as a credit on a tax return. This option lets a taxpayer repay the incorrect ERC, minus 20%, for any tax period they weren’t eligible for the ERC. Generally, businesses who enter this program don’t have to amend other returns affected by the incorrect ERC and don’t have to repay interest they received from the IRS on an ERC refund.

The IRS anticipates more participants will enter the disclosure program into the final hours, so the more than $225 million in disclosed ERCs will increase.

Special withdrawal program remains open beyond March 22 for those with unprocessed ERC claims

As the IRS continues its moratorium on processing ERC claims submitted after Sept. 14, 2023, businesses will continue to have an option to pull back on any unprocessed claims.

Businesses should quickly pursue the claim withdrawal process if they need to ask the IRS not to process an ERC claim for any tax period that hasn’t been paid yet. Taxpayers who received an ERC check but haven’t cashed or deposited it can also use this process to withdraw the claim and return the check. The IRS will treat the claim as though the taxpayer never filed it. No interest or penalties will apply.

The IRS currently has more than 1 million unprocessed ERC claims, so the claim withdrawal process remains an important option for businesses who may have submitted an improper claim.

“We continue to see instances where businesses were misled into filing dubious claims, and we urge people to review the guidelines and take steps to withdraw their claims to avoid future compliance action by the IRS,” Werfel said.

ERC claim recapture will expand; audits, investigations intensify

The IRS has already sent more than 12,000 letters to entities recapturing the ERC claim that was previously paid. This puts businesses in a position where they owe 100% of the ERC paid to them, plus penalties and interest dating back to the date the ERC was paid.

This initial round of letters covers Tax Year 2020. More letters are planned in coming months to address Tax Year 2021, which involved larger claims. Congress increased the maximum ERC from $5,000 per employee per year in 2020, to $7,000 per employee for each quarter of the year in 2021.

Among the other IRS compliance actions underway:

  • Audits: The IRS has thousands of ERC claims currently under audit.
  • Promoter investigations: The IRS is gathering information about suspected abusive tax promoters and preparers improperly promoting the ability to claim the ERC. The IRS’s Office of Promoter Investigations has received hundreds of referrals from internal and external sources. The IRS will continue civil and criminal enforcement efforts of these unscrupulous promoters and preparers.
  • Criminal investigations: As of Feb. 29, 2024, IRS Criminal Investigation has initiated more than 386 criminal cases, with claims worth almost $3 billion. Twenty-five investigations have resulted in federal charges, with 12 convictions and six sentencings with an average sentence of 24 months.

Processing moratorium on new claims continues into the late spring

On Sept. 14, 2023, amid concerns about aggressive ERC marketing, the IRS announced a moratorium on processing new claims. A specific resumption date hasn’t been determined but, at this point, the IRS anticipates it will be sometime in the late spring.

This pause will help the IRS review the ERC inventory with strong, new measures of scrutiny in place. During the upcoming months, the IRS plans to complete the transcription of amended paper returns with the help of digitalization and deploy new risk analysis strategies to identify additional compliance work.

Deploying these new risk analysis strategies is necessary before the IRS will resume processing of claims submitted after the September 14 moratorium.

In the meantime, the IRS continues to process ERC claims submitted before the moratorium, but with more scrutiny and at a much slower rate than before the agency’s approach changed last year.

Help for businesses that may have been misled on ERC

Some promoters told taxpayers every employer qualifies for ERC. The IRS and the tax professional community emphasize that this is not true. Eligibility depends on specific facts and circumstances. The IRS has dozens of resources to help people learn about and check ERC eligibility and businesses can also consult their trusted tax professional. Key IRS materials include:

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A medida que se acerca la fecha límite de presentación de impuestos del 15 de abril, el Servicio de Impuestos Internos emitió un recordatorio a los contribuyentes acerca de las maneras de evitar errores típicos en sus declaraciones federales de impuestos, con el objetivo de acelerar posibles reembolsos.

Recopile toda la documentación relacionada con los impuestos

Los contribuyentes deben reunir todos los documentos clave, incluidos los formularios W-2 y 1099, así como cualquier documentación justificativa de deducciones o créditos tributarios, como créditos educativos o pagos de intereses hipotecarios. Además, es aconsejable tener a mano la declaración de impuestos del año anterior, ya que puede ser necesaria.

Use la presentación electrónica

El IRS aconseja a los contribuyentes y a sus asesores de impuestos que usen métodos de presentación electrónica como Free File del IRS o proveedores alternativos de servicios de presentación electrónica. El programa piloto de Direct File (en inglés) está disponible para algunos contribuyentes en 12 estados. La presentación electrónica minimiza los errores matemáticos e identifica posibles créditos o deducciones tributarias para los cuales califica el contribuyente.

Es esencial que los contribuyentes revisen cuidadosamente sus declaraciones de impuestos para garantizar su exactitud. Optar por la presentación electrónica y seleccionar el depósito directo es la manera más rápida y segura de recibir un reembolso.

Asegúrese de que el estado civil tributario sea correcto

El software de impuestos sirve para evitar errores al seleccionar el estado civil tributario. Para los contribuyentes que no están seguros de su estado civil tributario, el Asistente tributario interactivo en IRS.gov puede ayudarle a elegir el estado correcto, particularmente cuando pueden aplicarse varios estados tributarios.

Asegúrese de que los nombres, fechas de nacimiento y números de Seguro Social sean correctos

Los contribuyentes deben proporcionar con precisión el nombre, la fecha de nacimiento y el número de Seguro Social (SSN) de cada dependiente que figura en su declaración de impuestos individual. El SSN y el nombre del individuo deben ingresarse exactamente como se indica en la tarjeta de Seguro Social.

En los casos en que un dependiente o cónyuge no tenga un SSN y no sea elegible para obtenerlo, se debe incluir un Número de identificación personal del contribuyente (ITIN) asignado en lugar de un SSN.

Responda la pregunta acerca de activos digitales

Todos los que presenten los Formularios 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 y 1120S deben marcar una casilla y responder “Sí” o “No” a la pregunta sobre activos digitales. La pregunta debe ser respondida por todos los contribuyentes, no solo por aquellos que participaron en una transacción que involucra activos digitales en 2023. Los contribuyentes deben declarar todos los ingresos relacionados con las transacciones de activos digitales.

Consulte Activos digitales de IRS.gov para obtener detalles acerca de cuándo marcar “sí” y cómo declarar los ingresos.

Reporte todos los ingresos sujetos a impuestos

Tenga en cuenta que la mayoría de los ingresos son tributables (en inglés). No reportar con precisión los ingresos puede resultar en intereses acumulados y multas. Esto incluye diversas fuentes de ingresos, como ganancias por interesescompensación por desempleo e ingresos derivados de la industria de servicios, la economía compartida y los activos digitales. Para obtener más detalles, consulte la Publicación 525, Ingresos sujetos a impuestos y no sujetos a impuestos (en inglés).

Asegúrese de que los números de ruta y de cuenta bancaria sean correctos

Los contribuyentes tienen la opción de solicitar el depósito directo de un reembolso federal en una, dos o incluso tres cuentas. Proporcione información bancaria correcta: si espera un reembolso, asegúrese de que los números de ruta y de cuenta proporcionados para el depósito directo sean correctos para evitar demoras o reembolsos mal dirigidos.

Además, los contribuyentes pueden usar su reembolso para comprar bonos de ahorro estadounidenses (en inglés).

Recuerde firmar y fechar su declaración de impuestos

Al presentar una declaración conjunta, se requiere que ambos cónyuges firmen y fechen la declaración. Si los contribuyentes preparan sus impuestos de forma independiente y los presentan electrónicamente, deben firmar y autenticar su declaración de impuestos electrónica ingresando su ingreso bruto ajustado (AGI) del año anterior. Los contribuyentes pueden consultar Cómo validar su declaración de impuestos presentada electrónicamente para obtener orientación si tienen alguna pregunta.

Asegúrese de que la dirección sea correcta si presenta una declaración en papel por correo

Se insta a los contribuyentes y profesionales tributarios a elegir la presentación electrónica siempre que sea posible. Sin embargo, para aquellos que deben presentar una declaración de impuestos en papel, es esencial verificar la dirección postal exacta ya sea en IRS.gov o en las instrucciones proporcionadas con el Formulario 1040 para evitar demoras en el procesamiento.

Guarde una copia de la declaración de impuestos

Al estar listos para presentar la declaración, los contribuyentes deben crear duplicados de su declaración firmada y los anexos adjuntos para sus registros personales. Mantener copias puede ayudarlos a preparar declaraciones de impuestos futuras y realizar cálculos matemáticos en caso de presentar una declaración enmendada. Por lo general, los contribuyentes deben guardar los registros que respalden los ingresos, las deducciones o los créditos reclamados en su declaración de impuestos hasta que expire el período de prescripción para esa declaración de impuestos específica.

Solicite una prórroga, si es necesario

Los contribuyentes que requieran más tiempo para presentar sus impuestos pueden solicitar fácilmente una prórroga de seis meses, hasta el 15 de octubre, evitando así multas por presentación tardía. Esta prórroga se puede solicitar a través de Free File del IRS o enviando el Formulario 4868 (SP), Solicitud de prórroga automática para presentar la declaración de impuestos sobre el ingreso individual de los Estados Unidos, antes del 15 de abril. Es importante tener en cuenta que, si bien una extensión proporciona tiempo adicional para la presentación, los pagos de impuestos todavía vencen el 15 de abril para la mayoría de los contribuyentes.

Alternativamente, los contribuyentes pueden solicitar una prórroga realizando un pago total o parcial de su impuesto sobre el ingreso estimado e indicando que el pago es para una prórroga. Esto se puede hacer mediante Pago Directo, el Sistema de Pago Electrónico de Impuestos Federales (EFTPS), o una tarjeta de débito/crédito o una billetera digital. Al hacerlo, los contribuyentes evitan la necesidad de presentar un formulario de prórroga por separado y reciben un número de confirmación para sus registros.

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For the first time in five years, the IRS has updated Form W-9Request for Taxpayer Identification Number and Certification, on its website. The previous version of the form was from 2018. Changes to Form W-9 include:

  • Modification of Line 3a to clarify how the line is to be completed by a disregarded entity
  • New Line 3b must be completed by a flow-through entity to indicate that it has direct or indirect foreign partners, owners or beneficiaries when it provides a Form W-9 to another flow-through entity in which it has an ownership interest
The addition of Line 3b was intended to provide flow-through entities with information regarding the status of their indirect foreign partners, owners or beneficiaries so they can satisfy any applicable reporting requirements.