irs news & announcements

Here's a link on the Qualifying counties for The California Disasters affected by the current weather disasters . Extension to file taxes extended to this counties until Oct 16th 2023

These FAQ are for informational purposes and only relate to the Zelle Network®. Zelle® does not provide tax advice. If you have any tax questions about your individual situation, please consult a tax or legal professional.

The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022.

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.

During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.

Form 1099-K, Payment Card and Third-Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance. You should receive Form 1099-K by January 31 if, in the prior calendar year, you received payments:

• From all payment card transactions (e.g., debit, credit, or stored-value cards), and
• In settlement of third-party payment network transactions above the minimum reporting thresholds as follows:
  • For returns for calendar years prior to 2022:
    • Gross payments that exceed $20,000, AND
    • More than 200 such transactions
  • For returns for calendar years after 2021:
    • Gross payments for goods or services that exceed $600, AND
    • Any number of transactions

Form 1099-K has been around for a while, but it’s received more attention recently because of a recent rule change. With the change, it was expected that many more people would get this form in 2023.

However, the IRS announced on Dec. 23, 2022, the new rule will be delayed. So, what does this twist mean, and what applies for your 2022 taxes (filed in 2023)?

Here’s what we know:

• In general, the rules for sending Form 1099-K for tax year 2022 will apply as they did for tax year 2021 according to the IRS announcement.
• Some people will still receive Form 1099-K for tax year 2022 early in 2023 based on the previous rules. With the delay of the rule, not as many people will be affected as expected this year.

 The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring and employing individuals from certain targeted groups who have faced significant barriers to employment.

WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.

The Consolidated Appropriations Act, 2021 (Section 113 of Division EE P.L. 116-260) authorized the extension of the WOTC until December 31, 2025.

Notice 2021-43, issued on August 10, 2021, provided transition relief by extending the 28-day deadline for employers hiring individuals who are Designated Community Residents or Qualified Summer Youth Employees who begin work on or after January 1, 2021, and before October 9, 2021, to submit a completed Form 8850 to the designated local agency (DLA) no later than November 8, 2021.

Notice 2020-78, issued on December 11, 2020, provided transition relief for employers that hired certain individuals residing in empowerment zones by extending the 28-day deadline for employers who submit a certification request for an individual who began work between January 1, 2018, and December 31, 2020.

To be eligible for the transition relief under either notice, an individual must reside within an empowerment zone.

  Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500. 

 To help struggling taxpayers affected by the COVID-19 pandemic, the IRS issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or 2020 returns late. The IRS is also taking an additional step to help those who paid these penalties already. To qualify for this relief, eligible tax returns must be filed on or before September 30, 2022. See this IRS news release for more information on this relief.  

 Publication 5697, IRS provides automatic penalty relief to most people and businesses who file certain 2019 and 2020 returns late. To qualify for this relief, any eligible income tax return must be filed on or before September 30, 2022.

 The tax year 2022 adjustments described below generally apply to tax returns filed in 2023.

The tax items for tax year 2022 of greatest interest to most taxpayers include the following dollar amounts:

• The standard deduction for married couples filing jointly for tax year 2022 rises to $25,900 up $800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,950 for 2022, up $400, and for heads of households, the standard deduction will be $19,400 for tax year 2022, up $600.
• The personal exemption for tax year 2022 remains at 0, as it was for 2021, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act. 

For more information on who is eligible to claim the Health Coverage Tax Credit for tax year 2021, which plans are qualified health plans for the HCTC, and how to figure your credit, see Form 8885, Health Coverage Tax Credit.

Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments, which reports the portion of HCTC advance monthly payment amounts we paid for your benefit in 2021, will be sent out by January 31, 2022. See Understanding Your Letter 6129 for more information.

You MUST file Form 8885 with Form 1040, 1040-NR, 1040-SS, or 1040-PR on or before April 18, 2022, (April 19, 2022, if you live in Maine or Massachusetts), or request an extension to file your tax return on or before April 18, 2022 (April 19, 2022, if you live in Maine or Massachusetts), even if you're not claiming any additional HCTC on Form 8885.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, Section 134 extended the HCTC program through December 31, 2021. For Participants enrolled in the Monthly HCTC Program, the final payment due date is December 10, 2021 for December coverage. The final 2021 payment file will be sent on December 21, 2021.

The IRS does not have the administrative authority to further extend the credit. If an extension is enacted by Congress, then the IRS will implement the change and notify affected taxpayers. Individuals can also monitor this site for updates.

Do not submit any payments for coverage months in 2022. If new legislation is passed, you will need to re-enroll in the program for 2022 to request advance payments and request allowable reimbursement of payments you paid directly to your vendor or provider for 2022 qualified health coverage.

Instructions and timelines will be provided on this webpage and through participant letters.

 IRS Tax Tip 2022-147, September 26, 2022

Many people know IRS.gov has the latest filing info and tax forms, but they may not be aware that it also has a wide range of other tax-related topics. Here are five things people can find on IRS.gov besides filing info.

1. Find the Taxpayer Bill of Rights – Each taxpayer has a set of fundamental rights when dealing with the IRS. It's important for taxpayers to know their rights and the IRS's obligation to protect them.
    
2. Learn how to apply for 501(c)(3) status – The requirements and process to apply for 501(c)(3) status can be a lot. The IRS' webinars and resources help organizations apply for and maintain federal tax-exempt status.
    
3. Discover IRS tax volunteer opportunities – People can learn to prepare taxes and make a difference in their community at the same time by volunteering to prepare taxes free of charge with the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs.
    
4. Keep up with the latest tax scams – Knowing how identity thieves and fraudsters work is one way taxpayers can keep themselves safe.
    
5. Use the Interactive Tax Assistant – People can get personalized answers to tax questions with the Interactive Tax Assistant. This tool provides answers to many common tax law questions based on the taxpayer's individual circumstances.