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Issue Number: 2022-06

Inside This Issue

1. IRS announces its "Dirty Dozen" list for 2022
2. IRS provides guidance for leave donations to help Ukrainians
3. Tips on how to choose a third-party payroll service provider
4. IRS offering jobs to thousands of workers this summer
5. IRS 2022 National Small Business Week wrap-up
6. Missed the April 18th deadline to file and pay taxes your taxes?

The IRS began announcing its "Dirty Dozen" list for 2022”, which includes potentially abusive arrangements that taxpayers should avoid.

The first four entries in this year's Dirty Dozen series involve charitable remainder annuity trusts, Maltese individual retirement arrangements, foreign captive insurance, and monetized installment sales.

The next four entries on the scams warning list remind taxpayers that criminals still use the COVID-19 pandemic to steal people's money. They include:

• Economic Impact Payment and tax refund scams
• Unemployment fraud leading to inaccurate taxpayer 1099-Gs
• Fake employment offers posted on social media
• Fake charities that steal your money

The IRS will soon announce the final four additional scams to round-out the Dirty Dozen list for 2022. Some will focus on the average taxpayer and others will focus on more complex arrangements that promoters market to higher-income individuals.

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IRS Notice 2022-28 provides guidance to employers about special tax relief for leave-based donation programs they may set up to aid victims of the “further Russian invasion of Ukraine” that began in February 2022.

Under a leave-based donation program, an employer may permit its employees to give up their vacation, sick or personal leave in exchange for cash payments by the employer to charitable organizations.

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When hiring a company to handle payroll and payroll tax, it’s important for businesses to choose wisely. This can help a business avoid missed deposits for employment taxes and other unpaid bills.

The IRS created a Tax Tip for payroll professionals to share with interested employers about how to choose a third-party payroll service provider.

The tip explains the services of certified professional employer organizations and reporting agents. It also touts the benefits of using the Electronic Federal Tax Payment System.

A related IRS Tax Tip encourages businesses to simplify payroll responsibilities by filing these taxes electronically. E-file software performs calculations and populates forms and schedules using a step-by-step process. It will also alert the filer if they are missing information which reduces the chances of receiving an IRS notice.

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To better help taxpayers and businesses, the IRS is looking to hire over 4,000 contact representative positions at several IRS offices nationwide this summer. Find more information and links to sign up for virtual and in-person job sharing events in IRS news release 2022-114.

A contact representative provides administrative and technical assistance to individuals and businesses primarily over the phone, through written correspondence or in person. These full-time positions fall under a special hiring condition called direct-hire authority. Full-time, bilingual (Spanish) positions are also available. No prior tax experience is required.

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Find a wrap-up of all the IRS’s featured information and resources for small businesses and self-employed individuals during this year’s National Small Business Week in early May. Highlights include:

• Tax Tips
• News Releases
• e-Posters and IRS social media
• Featured SB/SE videos
• IRS Small Business Virtual Tax Workshop
• And more!

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The federal income tax deadline has passed for most individual taxpayers. However, some haven’t filed their 2021 tax returns or paid their tax due.

Anyone who didn't file and owes tax should file a return as soon as they can and pay as much as they can to reduce penalties and interest. Electronic filing options, including IRS Free File, are still available on IRS.gov to prepare and file returns electronically.

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