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Outreach Connection FY24-01

Inside this issue:

1. Inflation Reduction Act updates

2. Form 1099-K update

3. Employee Retention Credit updates 

4. IRS recent fraud and scam awareness campaigns

5. Direct File update

6. Tax volunteers requested

7. Clean Energy Credits updates

The IRS continues to improve customer service and modernize core technology infrastructure. These technology expansions are supported through the Inflation Reduction Act funding to transform the IRS and improve services to help taxpayers.

Following a dramatically improved 2023 filing season thanks to Inflation Reduction Act (IRA) investments, the Internal Revenue Service has targeted IRA resources on strengthening enforcement, with announcements on new initiatives to pursue high-income, high-wealth individuals who do not pay overdue tax bills and complex partnerships. 

Related news releases:

• IRS expands use of chatbots to help answer questions on key notices; expands on technology that’s served 13 million taxpayers
• IRS delivers new capabilities to Tax Pro Account; latest expansion part of effort to improve technology, tools to help tax professionals serve clients
• IRS launches new initiatives using Inflation Reduction Act funding to ensure large corporations pay taxes owed; continues to improve service and modernize technology with launch of business tax account

Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the IRS released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023.

Find related Form 1099-K materials on irs.gov/1099k. 

The IRS continues to warn businesses and organizations not to fall for aggressive marketing or scams related to the ERC. Employers should check with their trusted tax professional before submitting an ERC claim. The ERC Eligibility Checklist can help employers and their tax professionals figure out if an employer may be eligible. As part of a larger effort to protect small businesses and organizations from scams, IRS announced a special withdrawal process to help those who filed an ERC claim and no longer want to have their claim processed.

Find related ERC content on irs.gov/erc.

IRS, state tax agencies and the nation's tax industry work together in the Security Summit initiative to protect taxpayers, businesses and the tax system from identity thieves and related scams. Here are the most recent campaigns highlighted:

National Tax Security Awareness Week (NTSAW): The Security Summit, the IRS, state tax agencies and the nation's tax industry joined together for the 8th Annual National Tax Security Awareness Week on November 27-December 1, to urge increased security measures to protect against tax-related identity theft and scams. 

Check out related NTSAW materials at irs.gov/ntsaw. 

International Fraud Awareness Week: The IRS Office of Fraud Enforcement and IRS Criminal Investigation ran the International Fraud Awareness Week on November 12-18, in an effort to raise awareness to fraud and scams affecting taxpayers across the country.

Related news release: IRS highlights International Fraud Awareness Week; taxpayers urged to protect against scams, schemes

As part of larger transformation efforts underway, the IRS announced key details about the Direct File pilot for the 2024 filing season with several states planning to join the innovative effort. The IRS will conduct a limited-scope pilot during the 2024 tax season to further assess customer support and technology needs.

Related news release: IRS advances innovative Direct File project for 2024 tax season; free IRS-run pilot option projected to be available for eligible taxpayers in 13 states 

Related fact sheet: IRS Direct File Update: Free, secure, IRS-run, electronic filing option on track to be available in 2024 as a limited pilot

The Internal Revenue Service's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are currently recruiting volunteers for the upcoming filing season.

Related news release: Volunteers needed across the country for free tax services

The IRS announced that sellers of clean vehicles can now register using the new IRS Energy Credits Online tool, available free from the IRS.

The IRS issued Notice 2023-65 which provides guidance on the new energy efficient home credit as amended by the Inflation Reduction Act (IRA). The provision allows eligible contractors who construct or substantially reconstruct and rehabilitate qualified new energy efficient homes a tax credit of up to $5,000 per home.

Related news releases:

• IRS opens free Energy Credit Online tool for sellers of clean vehicles to register for time-of-sale reporting and dealer advance payments for the Clean Vehicle Credit
• IRS issues guidance for the transfer of clean vehicle credits and updates frequently asked questions
• IRS: Builders of qualified new energy efficient homes may qualify for an expanded tax credit under Section 45L

Related fact sheet: IRS updates frequently asked questions related to new, previously owned and qualified commercial clean vehicle credits

Related tax tip: Builders of new energy efficient homes may qualify for an expanded tax credit

Related video:  How dealers and sellers register for Energy Credits Online

IRS is looking for talented professionals to make our nation stronger. We are more than just the nation's tax collection agency. We're an organization that has been part of events that have helped shape the nation we serve.

Visit the IRS Careers page on USAJOBS where you can find all IRS job opportunities in one place. Then use keywords or filters to tailor your search even further.

Where to find more materials on IRS.gov

Visit these pages on IRS.gov to get materials and information you can use in your tax practice or community:

• Outreach Connection. Tax content tailored to individuals, businesses and tax exempt entities you can include in your communications.
• Tax Professionals.  Access online tools, register or renew your PTIN, apply for an EFIN and more.
• e-News Subscriptions. The IRS offers several e-News subscriptions on a variety of tax topics. Subscribe to receive emails on topics of importance to you: 
• e-News for Small Businesses
• e-News for Payroll Professionals
• e-News for Tax Professionals