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:

• Tax professionals should watch out for a “new client” scam during the tax filing season.
• Military personnel who want to file free federal tax returns have several options, including the Department of Defense’s MilTax and the IRS Free File program.
• IRS updated FS-2024-04, Fact Sheet frequently asked questions for the Premium Tax Credit.
  IRS begins audits of corporate jet usage to ensure tax compliance.
• Low Income Taxpayer Clinic (LITC) is taking applications for supplemental grantsthrough April 10.
• IRS issued FAQs related to the USDA Discrimination Financial Assistance Programfor farmers, ranchers and forest landowners who experienced discrimination by the USDA in farm lending prior to 2021.
• The IRS announced the addition of two private-sector experts to help the agency’s efforts in the cryptocurrency and other digital assets arena.

Some unscrupulous promoters have marketed misleading information about Employee Retention Credit eligibility rules to well-intentioned businesses. The IRS is highlighting seven suspicious signs and urging business to seek a trusted tax professional to resolve an incorrect claim while they still can without penalties or interest.

There’s a deadline of March 22, 2024, for the ERC Voluntary Disclosure Program, which lets businesses who filed a claim in error and received a payment repay just 80% of the claim. Taxpayers who filed an incorrect claim that hasn’t been processed, or who have an ERC check they haven’t cashed or deposited, should quickly pursue the claim withdrawal process.

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. Some promoters also suggested that an employer qualifies based on communications from the Occupational Safety and Health Administration. This is generally not true. Employers should review the frequently asked questions about ERC – Qualifying Government Orders for more information and helpful examples for these topics.
• Too many employees and wrong calculations. Employers should be cautious about claiming the ERC for all wages paid to every employee on their payroll. 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. 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. Records available to the IRS show some businesses that claimed ERC didn’t have any employees or they claimed ERC for tax periods before the business existed.
• 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 Direct File pilot gives people an option they’ve asked for – a way to file their taxes quickly, easily, and for free directly with the IRS. It’s now available for eligible taxpayers in in Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.  

The Direct File pilot is easy to use and helps eligible taxpayers:

• File a 2023 federal tax return in as little as 30 minutes using a mobile device.  
• Add tax information with step-by-step guidance
• Connect with real-time online support from IRS customer service representatives
• Access it from smartphones, laptops, tablets and desktop computers
• Get a federal tax refund in less than 21 days

Taxpayers who join the pilot can claim the Earned Income Tax Credit, Child Tax Credit and Credit for Other Dependents.

Who’s eligible

IRS Direct File pilot is available for taxpayers who file simple federal tax returns in 12 participating states and who report the following types of income:

• W-2 wage income
• SSA-1099 Social Security income
• 1099-G unemployment compensation
• 1099-INT interest income of $1,500 or less

IRS Direct File pilot participants must take the standard deduction and can claim deductions only for student loan interest and educator expenses.

If Direct File isn’t an option, there are many other filing options available.

State tax returns

The Direct File pilot doesn’t prepare state returns. However, if taxpayers live in Arizona, California, Massachusetts or New York, the Direct File pilot guides taxpayers to a state-supported tool they can use to prepare and file a state tax return.

Find out more about the IRS Direct File pilot

Taxpayers can check their eligibility for the IRS Direct File pilot.

Get the latest news about the pilot at Direct File pilot news, subscribe to the Direct File pilot newsletter or visit Direct File on IRS.gov to learn more.

The IRS urges businesses to review their eligibility for the Employee Retention Credit because there’s limited time for them to voluntarily resolve incorrect claims and avoid future issues, such as penalties and interest.

Some honest businesses were misled into filing claims for the Employee Retention Credit by promoters who often misrepresented or oversimplified eligibility rules. Businesses that received the credit but don’t meet the ERC rules should consider applying for the ERC Voluntary Disclosure Program before the March 22 deadline. The IRS also offers a withdrawal program for those whose claims haven’t yet been paid.

The ERC, sometimes called ERTC, is a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. The requirements vary depending on the time of claim, and it is not available to individuals.

ERC Voluntary Disclosure Program open until March 22, 2024
Businesses that filed a claim in error and received a payment may be able to apply to the IRS Voluntary Disclosure Program. The special program runs through March 22, 2024, and lets taxpayers repay just 80% of the claim received.

Withdrawal program still available for pending ERC claims
The IRS continues to accept and process requests to withdraw a full ERC claim. Employers that claimed an ERC that hasn’t been paid can withdraw their claim so they don’t get a refund for which they’re ineligible and can avoid penalties and interest. They can also withdraw their claim if they’ve received a check but haven’t deposited or cashed it.

ERC information for businesses with questions
IRS offers resources online to answer questions and help employers check whether they’re eligible for the credit. They can review the ERC frequently asked questions and the ERC Eligibility Checklist, which is available as an interactive tool or as a printable guide. The IRS also has free recorded webinars for the withdrawal process and the VDP.

Moratorium status
Following concerns from tax professionals and others about aggressive ERC marketing, the IRS announced on Sept. 14 a moratorium on processing new ERC claims. In the coming months, the IRS plans to continue steps on fraud protection measures, which are necessary before the IRS anticipates resuming processing of claims submitted after the Sept. 14 moratorium. A date hasn’t been determined.

The IRS continues to process ERC claims submitted before the moratorium, but with higher scrutiny and at a much slower rate.

WASHINGTON – The Internal Revenue Service renewed calls today for businesses to review their eligibility for the Employee Retention Credit as the agency’s law enforcement arm, Criminal Investigation (CI), begins a series of educational sessions for tax professionals.

As part of ongoing IRS efforts around the pandemic-era credit, the agency continues to increase compliance activity to protect against fraud. The IRS also renewed calls for businesses and employers to review their qualifications for the Employee Retention Credit, or ERC. If businesses do not meet the criteria, but claimed the credit, they should consider applying for the Voluntary Disclosure Program before the March 22 deadline. The IRS has also created a special withdrawal program for those with pending claims about which they have eligibility concerns. Both programs can help affected employers avoid penalties and interest on incorrect claims.

“Our compliance activities involving these payments continue to accelerate, and the IRS urges businesses with concerns about their claims to talk to a reputable tax professional and consider joining one of our special disclosure or withdrawal programs,” said IRS Commissioner Danny Werfel. “We saw aggressive marketing around this credit, and well-intentioned businesses were misled into filing claims. There’s a limited time window available for these businesses to voluntarily come in and avoid future issues.”
In the latest effort, CI special agents will host a series of educational sessions geared specifically to tax professionals about ERC at its field offices across the country. The sessions will take place in February and are part of a nationwide initiative to ensure that tax professionals have the latest information about ERC claims and understand ERC eligibility criteria.

The IRS has been working closely with the tax community following concerns that ERC promoters were aggressively marketing and encouraging businesses to ignore the advice of tax professionals and apply for the credit anyway.

“During the COVID-19 pandemic, tax credits and loans were extended to struggling businesses. We’ve seen many of these COVID-relief programs and credits misappropriated – sometimes knowingly and in other instances not,” said IRS CI Chief Jim Lee. “These educational sessions will help tax preparers navigate the complexities of ERC claims to ensure they’re in compliance with U.S. tax laws.”

CI special agents will walk attendees through ERC eligibility criteria, documentation requirements to receive ERC claims, and best practices for compliance and accurate reporting. These events will take place in at least 23 U.S. states and the District of Columbia and are specifically designed for tax professionals who have claimed ERCs for their clients on previous years’ tax returns. Invitations to attend will arrive by mail through the U.S. Postal Service.

The ERC is a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. The requirements vary depending on the time of claim, and it is not available to individuals.

With the end of the pandemic, the IRS announced in July it was shifting its focus to review ERC claims for compliance concerns, including intensifying audit work and criminal investigations on promoters and businesses filing dubious claims.

Following concerns about aggressive ERC marketing from tax professionals and others, the IRS announced Sept. 14 a moratorium on processing new ERC claims. During the next four months, the IRS plans to continue steps on fraud protection measures, which are necessary before the IRS anticipates resuming processing of claims submitted after the Sept. 14 moratorium. A specific resumption date has not been determined.

The IRS continues to process ERC claims submitted before the moratorium, but with additional scrutiny and at a much slower rate than before the agency’s approach changed in the summer and fall. Since the IRS announced the moratorium in September, the IRS has more than $1 billion in ERC claims in process. Enhanced compliance reviews of the claims submitted before the moratorium is critical to combat fraud and protect businesses and organizations from facing penalties or interest payments stemming from bad claims pushed by promoters. Werfel has noted the IRS continues to make progress on a variety of ERC issues.

To help businesses lured into making inappropriate claims, the IRS has several special initiatives underway to assist.

ERC Voluntary Disclosure Program open until March 22, 2024

Businesses that filed a claim in error and received a payment may be able to participate in the IRS Voluntary Disclosure Program. The special program runs through March 22, 2024, and the IRS has added provisions allowing repayment of just 80% of the claim received. This reflects the share that ERC promoters took of a business’ ERC payment – frequently around 20%.

Withdrawal program still available for pending ERC claims

The IRS continues to accept and process requests to withdraw an employer’s full ERC claimunder the special withdrawal process.

This withdrawal option allows certain employers that filed an ERC claim, but have not yet received a refund, to withdraw their submission and avoid future repayment, interest and penalties. Employers that submitted an ERC claim that has not yet been paid can withdraw their claim and avoid the possibility of getting a refund for which they’re ineligible. They can also withdraw their claim if they’ve received a check but have not yet deposited or cashed it.

The IRS continues to see a large number of employers interested in the withdrawal program, with more than $167 million from pending applicants withdrawn through mid-January.

ERC eligibility information for businesses with questions

For more information on ERC eligibility, the IRS has prepared special information to help businesses understand the complex guidelines about the credit, sometimes referred to as the Employee Retention Tax Credit or ERTC. The special information includes ERC frequently asked questions and the ERC Eligibility Checklist, which is available as an interactive tool or as a printable guide. The interactive tool provides an easy, interactive way for businesses to check their eligibility.

Increased IRS compliance activity: Audits, criminal investigations, special letters

Last month, the IRS started sending thousands of letters to taxpayers notifying them of disallowed ERC claims. These disallowed claims involved entities that did not exist or did not actually have employees on the payroll during the period of eligibility – meaning the businesses failed to meet basic criteria for the ERC program.

In addition, the IRS plans to send a different set of letters to thousands of ERC recipients related to claiming an erroneous or excessive credit. These notices inform recipients that the IRS will recapture the erroneously claimed ERC payment through normal tax assessment and collection procedures.

These letters are for tax year 2020 where the statute of limitations is nearing in April. As we continue to ramp up our compliance work, the IRS will send more recapture letters for tax year 2021 this spring.

These efforts are in addition to other IRS compliance work:

• Audits. The IRS has thousands of audits in the pipeline.
• Civil investigations. Promoters are not off the hook. Promoter investigations are ongoing. The IRS has nine open investigations and another 123 under review. Plus, participants in the Voluntary Disclosure Program must share the promoter names with the IRS to assist the agency in its ongoing compliance work.
• Criminal Investigation. As of Dec. 31, CI has initiated 352 investigations involving more than $2.9 billion in potentially fraudulent ERCs in tax years 2020-2023. Eighteen of the 352 investigations have resulted in federal charges, with 11 convictions and four sentencings with an average sentence of 21 months.

CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a nearly 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

WASHINGTON – With tax season rapidly approaching, the IRS reminds employers that Jan. 31 is the deadline for submitting wage statements and forms for independent contractors with the government.

Employers must file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31.

The Jan. 31 deadline also applies to Forms 1099-MISC, Miscellaneous Income, and Forms 1099-NEC, Nonemployee Compensation, that are filed with the IRS to report non-employee compensation to independent contractors. Various other due dates related to Form 1099-MISC, Form 1099-K and Form 1099-NEC, including dates due to the IRS, can be found on the forms’ instructions.

The IRS offers a free electronic filing service for the Form 1099 series using the Information Returns Intake System (IRIS). Filers can also use this online portal to prepare payee copies for distribution, file corrections and request automatic extensions.

New filing requirements

New electronic filing requirements affect Forms W-2 that are required to be filed in 2024. Businesses that file 10 forms or more must file W-2s and certain information returns electronically. See New electronic filing requirements for Forms W-2 for more information.

E-filing is the quickest, most accurate and convenient way to file forms. For more information on e-filing Forms W-2, employers can refer to Employer W-2 Filing Instructions & Informationon the Social Security Administration’s website.

Key points to remember

• Extensions to file are not automatically granted. Employers may request a 30-day extension to file Forms W-2 by submitting Form 8809, Application for Extension of Time to File Information Returns, by Jan. 31.
• Filing Form 8809 does not extend the due date for furnishing wage statements to employees. A separate extension must be filed by Jan. 31. See Extension of time to furnish Forms W-2 to employees for more information.
• Filing by the deadline helps the IRS to fight fraud by making it easier to verify income. Employers can help support that process and avoid penalties by filing the forms on time and without errors.
• Penalties may be assessed for failure to file correctly and on time. For more information visit the IRS’ Information Return Penalties page.
• Form 1099-K $600 reporting threshold delayed. This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

The IRS encourages employers and taxpayers to visit About Form W-2, Wage and Tax Statement and Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G for more information.

WASHINGTON — The Internal Revenue Service today announced tax relief for individuals and businesses affected by Idalia, anywhere in South Carolina. These taxpayers now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments. This is similar to relief already being provided in most of Florida.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). All 46 counties in South Carolina qualify. Individuals and households that reside or have a business in these counties qualify for tax relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

Filing and Payment Relief
The tax relief postpones various tax filing and payment deadlines that occurred from Aug. 29, 2023, through Feb. 15, 2024 (postponement period). As a result, affected individuals and businesses will have until Feb. 15, 2024, to file returns and pay any taxes that were originally due during this period.

This means, for example, that the Feb. 15, 2024, deadline will now apply to:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief.
• Quarterly estimated income tax payments normally due on Sept. 15, 2023, and Jan. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, 2024.
• Calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, 2023.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.

In addition, penalties for the failure to make payroll and excise tax deposits due on or after Aug. 29, 2023, and before Sept. 13, 2023, will be abated as long as the deposits are made by Sept. 13, 2023.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief.

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these kinds of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Additional Tax Relief
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or the return for the prior year (2022). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. Be sure to write the FEMA declaration number – DR-3597-EM − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details.

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

The IRS may provide additional disaster relief in the future.

The tax relief is part of a coordinated federal response to the damage caused by this storm and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

Kilolo Kijakazi, Acting Commissioner of Social Security, announced 12 new Compassionate Allowances conditions: 1p36 Deletion Syndrome, Anaplastic Ependymoma, Calciphylaxis, Cholangiocarcinoma, FOXG1 Syndrome, Leber Congenital Amaurosis, Metastatic Endometrial Adenocarcinoma, Paraneoplastic Cerebellar Degeneration, Pineoblastoma – Childhood, Primary Omental Cancer, Sarcomatoid Carcinoma of the Lung – Stages II-IV, and Trisomy 9.

The Compassionate Allowances program quickly identifies claims where the applicant’s medical condition or disease clearly meets Social Security’s statutory standard for disability. Due to the severe nature of many of these conditions, these claims are often allowed based on medical confirmation of the diagnosis alone. To date, nearly 900,000 people with severe disabilities have been approved through this accelerated, policy-compliant disability process, which now includes a total of 278 conditions.

“The Social Security Administration remains committed to reducing barriers and ensuring people who are eligible for benefits receive them,” said Acting Commissioner Kijakazi. “Our Compassionate Allowances program allows us to reinforce that commitment by expediting the disability application process for people with the most severe disabilities.”

When a person applies for disability benefits, Social Security must obtain medical records in order to make an accurate determination. The agency incorporates leading technology to identify potential Compassionate Allowances cases and make quick decisions. Social Security’s Health IT brings the speed and efficiency of electronic medical records to the disability determination process. With electronic records transmission, Social Security can quickly obtain a claimant’s medical information, review it, and make a faster determination.

For more information about the program, including a list of all Compassionate Allowances conditions, please visit www.ssa.gov/compassionateallowances.

To learn more about Social Security’s Health IT program, please visit www.ssa.gov/hit.

People may apply online for disability benefits by visiting www.ssa.gov.

By law, all taxpayers have the right to finality of tax matters. For example, taxpayers have the right to know when the IRS has finished an audit. This is one of ten basic rights — known collectively as the Taxpayer Bill of Rights.

Here’s what taxpayers should know about their right to finality:

• Taxpayers have the right to know:
  • The maximum amount of time they have to challenge the IRS’s position.
  • The maximum amount of time the IRS has to audit a particular tax year or collect a tax debt.
  • When the IRS has finished an audit.
• The IRS generally has three years from the date taxpayers file their returns to assess any additional tax for that tax year.
• There are some limited exceptions to the three-year rule, including when taxpayers fail to file returns for specific years or file false or fraudulent returns. In these cases, the IRS can assess tax for that tax year at any time.
• The IRS generally has 10 years from the assessment date to collect unpaid taxes. The IRS can’t extend this 10-year period unless the taxpayer agrees to extend the period as part of an installment agreement to pay tax debt or a court judgment allows the IRS to collect unpaid tax after the 10-year period.
• There are circumstances when the 10-year collection period may be suspended. This can happen when the IRS can’t collect unpaid tax due to the taxpayer’s bankruptcy or there’s an ongoing collection due process proceeding involving the taxpayer.
• A statutory notice of deficiency is a letter proposing additional tax the taxpayer owes. This notice must include the deadline for filing a petition with the tax court to challenge the amount proposed.
• Generally, a taxpayer can be subject to only one audit per tax year. The IRS may reopen an audit for a previous tax year if the agency finds it necessary. This could happen, for example, if a taxpayer files a fraudulent return.