News

After Successful Filing Season, IRS Reports Progress in Service and Modernization Efforts

An updated Federal Trade Commission rule takes effect on June 9, 2023, and it affects many members, including tax practitioners. A Written Information Security Plan (WISP) is required by the Federal Trade Commission’s (FTC) Safeguards Rule of the Gramm-Leach-Bliley Act (GLBA) whereby financial institutions, including tax preparers, must develop, implement and maintain a comprehensive security plan to protect customer and client information.

Arkansas storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments. The Internal Revenue Service announced this news on April 3, 2023. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes and severe storms that occurred on March 31. This means that individuals and households that reside or have a business in Cross, Lonoke and Pulaski counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. As a result, affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period.

Notice 2023-21, the IRS lengthened the lookback period for refund claims for returns with due dates that were deferred by Notice 2021-21 or Notice 2020-23, which postponed the due dates for filing certain tax returns and making certain tax payments during the COVID-19 pandemic.

IR-2023-23, Feb. 10, 2023 WASHINGTON – The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022.

The Internal Revenue Service today announced Monday, January 23, 2023, as the beginning of the nation's 2023 tax season when the agency will begin accepting and processing 2022 tax year returns. More than 168 million individual tax returns are expected to be filed, with the vast majority of those coming before the April 18 tax deadline. People have three extra days to file this year due to the calendar. With the three previous tax seasons dramatically impacted by the pandemic, the IRS has taken additional steps for 2023 to improve service for taxpayers. As part of the August passage of the Inflation Reduction Act, the IRS has hired more than 5,000 new telephone assistors and added more in-person staff to help support taxpayers.

WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.

IR-2022-197, Nov. 9, 2022 WASHINGTON – In addition to the more than 4,000 people recently hired to fill critical customer service representative positions, the Internal Revenue Service is now seeking over 700 new employees to help taxpayers at Taxpayer Assistance Centers across the country.