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Recent Developments

Changes to guidance, law and procedures that affect Indian Tribal Governments.

  • COVID Relief Payments to Individuals by Indian Tribal Governments and Alaska Native Corporations (March 28, 2022) IRS finalized frequently asked questions (FAQs) for COVID relief payments by Indian Tribal Governments and Alaska Native Corporations to individuals.
  • Delinquent Return Notices Suspended (March 28, 2022) IRS suspended several notices generally mailed in case of a delinquent return. Find the complete list of notices in March 28, 2022 news.

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2023 News

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Free webinar:  Clean Energy Credits for Indian Tribal Governments

You’re invited to join us for a free one-hour webinar through Microsoft Teams on December 12, 2023 at 12 pm ET, hosted by the Office of Indian Tribal Governments. 

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

During the webinar we’ll discuss: 

  • Available clean energy credits
  • Tribal eligibility
  • Pre-registration process
  • Resources – Publication 5817-G

Registration link: Clean Energy Credits Webinar Registration

Once you have registered you will receive a confirmation email.

If you’re unable to join the presentation live, it will be recorded and posted on the IRS Video Portal after the event.

Note: If you don’t see the confirmation email, check your Junk Email folder. Please open the attachment in the confirmation email, when prompted choose yes to open the calendar invitation and then accept to add the invitation to your calendar.

Non-Employee Payments (Form 1099) virtual Workshop for Indian Tribal Governments offered through Microsoft Teams

You’re invited to join us for a free workshop hosted by the Office of Indian Tribal Governments. This workshop will offer a review of federal tax responsibilities for non-employee payments for tribes and tribal entities, using information from Publication 4268, Employment Tax for Indian Tribal GovernmentsPDF.

It will also provide basic information for accounts payable employees and those responsible for filing Forms 1099 and Form 945, particularly those new to their positions. 

Topics include:

  • Introduction to non-employee payment reporting
  • Independent Contractor or Employee?
  • Reporting Payments to Independent Contractors (Forms 1099)
  • Form 945, Annual Return of Withheld Federal Income Tax
  • Deposit Rules
  • Gaming Per Capita Payments
  • Electronic Filing – new requirements

 Note:  No registration is required for this event. There will be two identical sessions of this workshop. When it is time to join, just click the link or call in. There is a different link for each session.

Dates and Times:

Session 1 Monday December 4, 2023
Time: 12 p.m. – 3 p.m. (Eastern) / 9 a.m. – 12 p.m. (Pacific) 
Join on your computer or mobile app: Click here to join the meeting 
call in (audio only): 737-253-8186 Conference ID: 399 425 919# 

Session 2 Monday December 11, 2023
Time: 12 p.m. – 3 p.m. (Eastern) / 9 a.m. – 12 p.m. (Pacific) 
Join on your computer or mobile app: Click here to join the meeting
call in (audio only): 737-253-8186 Conference ID: 213 553 406# 

Questions emailed to TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the “ITG Teams 1099 Reporting Workshop” will be answered as time permits.

Volunteers needed across the country for free tax services

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.

VITA/TCE sites can be found nationwide and prepare millions of tax returns each year for low- to moderate-income taxpayers at no cost. The free tax program serves populations such as rural taxpayers, limited English speakers and senior citizens. 

Each year thousands of volunteers help their community and gain invaluable professional experience. No experience is necessary to become a VITA or TCE volunteer. Free specialized training is provided by the IRS. Available positions go beyond tax preparation and include:

  • Interpreters
  • Greeters
  • Quality reviewers
  • Marketing specialists
  • Instructors
  • Computer specialists

Volunteers have the option to participate at both in-person and virtual sites. Hours are often flexible with many sites operating at night and on weekends. Finding a nearby free tax help location is easy. They can often be found in libraries, community centers, schools and churches. 

To learn more about becoming a VITA/TCE volunteer, visit IRS Tax Volunteers. Those interested can sign up using the VITA/TCE Volunteer and Partner Signup and will be provided a list of available local VITA/TCE sites and invited to a virtual orientation.

Clean energy credits: what you need to know about Alaska Native Corporations

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable. 

Are Alaska Native Corporations eligible?

Yes. Any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) is eligible, meaning any Regional Corporation, any Village Corporation, any Urban Corporation and any Group Corporation, which is organized under the laws of the State of Alaska.

Settlement Trusts are not eligible based on affiliation with an Alaska Native Corporation but do qualify if the Settlement Trust qualified for exempt status under section 501(a) and applied for and received a determination letter from the IRS recognizing any such tax-exempt status.

Publication 5817-CPDF has more information about elective pay and Alaska Native Corporations.
Additional information about clean energy credits can be found at irs.gov/tribes and IRS.gov/cleanenergy.

Clean energy credits: what you need to know about available credits

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

What credits are eligible for elective pay?

IRC section Credit name
30C Alternative Fuel Vehicle Refueling Property Credit
45(a) Renewable Electricity Production Credit
45Q(a) Carbon Oxide Sequestration Credit
45U(a) Zero-Emission Nuclear Power Production Credit
45V(a) Clean Hydrogen Production Credit
45W Qualified Commercial Clean Vehicle Credit
45X(a) Advanced Manufacturing Production Credit
45Y(a) Clean Electricity Production Credit
45Z(a) Clean Fuel Production Credit
48 Energy Credit
48C Qualified Advanced Energy Project Credit
48E Clean Electricity Investment Credit

Publication 5817-GPDF has more detailed information about each credit.

Additional information about clean energy credits can be found at irs.gov/tribes and irs.gov/cleanenergy

Clean energy credits: what you need to know about timely filing

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable. 

How do I timely file my return?

An elective payment election may only be made on an original, timely filed return (including extensions). This means the deadline is the due date (including extensions of time) for the tax return for the taxable year for which the election is made. For most tax exempt and government entities including Indian tribal governments this is generally 4.5 months (for example, May 15 for a calendar year taxpayer) (or up to 10.5 months with extensions) after the end of the entity's tax year.

An original return includes a superseding return filed on or before the due date (including extensions). No election is permitted to be made on an amended return or by filing an administrative adjustment request under section 6227 of the Code. There is no relief available under §§ 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations (26 CFR part 301) for an elective payment election that is not timely filed.

For additional information on due dates for filing Form 990-T, see Instructions for Form 990-TPDF.

An automatic six-month extension from the original due date will be granted without filing Form 8868, Application for Extension of Time to File. (REG-101607-23, RIN 1545-BQ63 NPRM, Section 6417 Elective Payment of Applicable Credits at, page 36)

Additional information about clean energy credits can be found at irs.gov/tribes and IRS.gov/cleanenergy.  

Attend our free virtual outreach event on clean energy credits

For more information on clean energy credits, join us for a free 1-hour workshop through Microsoft Teams hosted by the Office of Indian Tribal Governments. This workshop will take place on Tuesday, December 12, 2023, at 12 p.m. EST. We’ll discuss the available clean energy credits, tribal eligibility, and the how to use elective pay. Look for the Microsoft Teams invite in a future email.

Clean energy credits: what you need to know about determining the taxable year

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

How do I determine the taxable year?

Check the instructions for the annual tax return you are filing. For example, for tax-exempt entities filing Form 990-T, the return must be filed using the organization's established annual accounting period. If the organization has no established accounting period, file the return on the calendar-year basis.

Additional information about clean energy credits can be found at irs.gov/tribes and IRS.gov/cleanenergy

Clean energy credits: what you need to know about elective pay

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable. 

How do I make an elective pay election?

The elective payment election is made on your annual tax return in the manner prescribed by the IRS, along with any form required to claim the relevant tax credit (source credit forms), a completed Form 3800, General Business Credit (or its successor), and any additional information, including supporting calculations, required in instructions to the relevant forms. As previously described, making an elective payment election requires completing multiple steps, including completing the required pre-filing registration process.

The term annual tax return includes—

  1. for any person normally required to file an annual tax return with the IRS, such annual return (including Form 990-T for organizations with unrelated business income tax or a proxy tax under section 6033(e)).
  2. for any person that is not normally required to file an annual tax return with the IRS (such as taxpayers located in the territories), the return they would be required to file if they were not located in the territories, or, if no such return is required (such as for State, local, or Indian tribal governmental entities), the Form 990-T Exempt Organization Business Income Tax Return; and
  3. for short tax year filers, the short year tax return.

Electronic return filing is strongly encouraged.

Each entity making an elective payment election must have a unique EIN. More information about applying for an EIN is available in this video.

Additional information about clean energy credits can be found at irs.gov/tribes and IRS.gov/cleanenergy.  

Clean energy credits: what you need to know about making an elective payment election and receiving an elective payment

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

There are several steps to making a successful elective payment election. Not all steps need to occur in the order displayed below.

  1. Identify and pursue the qualifying project or activity: You will need to know what applicable credit you intend to earn and use elective pay for. 
     
  2. Determine your tax year, if not already known: Your tax year will determine the due date for your tax return.
     
  3. Complete pre-filing registration with the IRS: This will include providing information about yourself, which credits you intend to claim, and each eligible project/property that will contribute to the applicable credit and other information required. Once you complete these steps, the IRS will provide you a registration number for each applicable credit property. You will need to provide that registration number on your tax return as part of making the elective pay election. Complete the pre-filing registration in enough time to have a valid registration number when you file your tax return.
     
  4. Satisfy all eligibility requirements for the tax credit and any applicable bonus credits for a given tax year: For example, to claim an energy credit on a solar energy generating project, you would need to place the project in service before making an elective payment election. You will need the documentation necessary to properly substantiate any underlying tax credit, including if bonus amounts increased the credit.
     
  5. File the required annual tax return by the due date (or extended due date) and make a valid elective payment election.

More information about the pre-filing registration process will be available by late 2023.

Additional information about clean energy tax credits can be found at IRS.gov/tribes and IRS.gov/cleanenergy.

Clean energy credits: what you need to know about pre-filing registration

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable. 

Pre-filing Registration Information

A pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election on an annual tax return. Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. Watch this video to learn about using the IRS EIN tool to get an EIN.

The online pre-filing registration process is expected to launch in late 2023. After the launch, you may complete pre-filing registration as soon as you have all the information required. More detail will be available as the launch approaches.

To complete pre-filing registration, you must provide certain information about yourself, the applicable credits you intend to earn, each eligible project or property that will contribute to the applicable credit, and certain additional information. The IRS will review the information provided and will issue a separate registration number for each applicable credit property for which the applicable entity or electing taxpayer provided sufficient verifiable information. Registration is not complete until a registration number is received.

Additional information about clean energy tax credits can be found at irs.gov/tribes and irs.gov/cleanenergy.

Clean energy credits: what you need to know about eligibility

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). This newsletter is part of a series from the IRS to provide information to Indian tribal governments about clean energy tax credits and how to make elective payment elections.

The IRA allows Indian tribal governments and Alaskan Native Corporations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable. 

Eligibility Information

Applicable entities generally include certain tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives.

An Indian tribal government, political subdivision thereof, or any agency or instrumentality of a Tribal government or political subdivision is eligible elective pay.

The term, Indian tribal government, means:

the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the most recent list published in the Federal Register by the Department of the Interior under the Federally Recognized Indian Tribe List Act of 1994.

Tribal entities are also eligible to the extent they are exempt from tax under section 501(a).

Alaska Native Corporations (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) are also applicable entities that are eligible for the elective payment election. Settlement Trusts are not eligible based on affiliation with an Alaska Native corporation, but do qualify if the Settlement Trust qualified for exempt status under section 501(a) and applied for and received a determination letter from the IRS recognizing any such tax-exempt status.

The applicable entity generally must own the property that generates the eligible credit (or otherwise conduct the activities giving rise to the underlying eligible credit). That ownership can occur through various structures. For example, an applicable entity could directly own the property, or could own it through a disregarded entity, or could own an undivided interest in an ownership arrangement treated as a tenancy-in-common or pursuant to a joint operating arrangement that has properly elected out of subchapter K of chapter 1 of the Code (subchapter K) under section 761.

For more information about elective pay, see Publication 5817-FPDF (Indian Tribal Governments) and Publication 5817-CPDF (Alaska Native Corporations).

Additional information about clean energy tax credits can be found at irs.gov/tribes and irs.gov/cleanenergy.

Elective Payments of Credits under the Inflation Reduction Act: Pre-file Registration and Timely Filing Required 

Tax-exempt and governmental entities, including those that were generally unable to use tax credits previously, can now benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022. Elective pay makes certain clean energy tax credits effectively refundable. 
For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. This payment will first offset any tax liability of the entity and any excess will be refundable. 
Applicable entities generally include tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives. Specific criteria for each type of applicable entity are included in the resources below.
The Internal Revenue Service issued proposed regulations describing rules and definitions concerning elective payments for the clean energy tax credits. The IRS has also issued temporary regulations regarding the pre-filing registration requirements for taxpayers planning to make an elective payment election.
The pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election on an annual tax return. Entities for which no such return is required (such as state and local governments and Indian tribal governments) will file Form 990-T to make the elective payment election. An elective payment election may only be made on a timely filed return (including extensions). Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. Watch this video to learn about using the IRS EIN tool to get an EIN.
The IRS is continuing to work to implement the elective payment process and will provide more information, including about the pre-filing registration process, in late 2023.
For more information on elective pay, the IRS has posted Frequently Asked Questions that discuss eligibility, applicable credits, steps for completing pre-file registration, steps for making an election, and other rules. Additionally, the IRS has a series of publications with key information specifically for various types of applicable entities that may make an elective payment election, including information on how to make the elective pay election and what to do to receive a payment:
•    Elective Pay Overview, Publication 5817 (PDF) 
•    Rural Electric Cooperatives, Publication 5817-A (PDF) 
•    U.S. Territorial Governments, Publication 5817-B (PDF) 
•    Alaska Native Corporations, Publication 5817-C (PDF) 
•    Tax-Exempt Organizations, Publication 5817-D (PDF) 
•    State and Local Government, Publication 5817-E (PDF) 
•    Indian Tribal Governments, Publication 5817-F (PDF) 
•    Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits, Publication 5817-G (PDF) 

Subject: ITG - New Requirement for most businesses and certain other entities and Free Employment Tax Workshop reminder

New requirement for most businesses and certain other entities beginning January 1, 2024

Beginning January 1, 2024, corporations, limited liability companies and certain other entities must report information about their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

See the FinCEN Beneficial Ownership Information Reporting webpage for information on these requirements, including:

Free Employment Tax Workshop for Indian Tribal Governments

This is a reminder about our upcoming free employment tax workshop. You are invited to join us for a free 4-day workshop through Microsoft Teams hosted by the Office of Indian Tribal Governments. This workshop will offer a review of federal tax responsibilities for tribes and tribal entities relating to employment tax. It will include basic employment tax information for payroll and accounts payable employees, particularly those new to their positions.

The workshop will focus on information from:

Note: No registration is required. Two identical multi-day programs of this workshop will be offered. When it is time to join a session, just click the corresponding link or call in. 

Dates and Times

Program 1

Monday, September 18 – Thursday, September 21, 2023
Time: Daily from 1 p.m. – 4 p.m. (Eastern)/10 a.m. – 1p.m. (Pacific) 
Join on your computer or mobile app: Join a Program 1 session

Call in (audio only): 737-253-8186, Conference ID: 494 232 284# 
Use the same link and call-in information every day of the workshop in Program 1 
 
Program 2

Monday, September 25 – Thursday, September 28, 2023
Time: Daily from 12 p.m. – 3 p.m. (Eastern) / 9 a.m. – 12 p.m. (Pacific)
Join on your computer or mobile app: Join a  Program 2 session

Call in (audio only): 737-253-8186, Conference ID: 364 446 531#
Use the same link and call-in information every day of the workshop in Program 2

Course Topics (The daily agenda shown below is subject to change)

Monday

  • Introduction to Employment Tax
  • Independent Contractor or Employee?
  • Hiring Employees

Tuesday

  • Preparing Payroll
  • Records Retention
  • IRS Notices and Letters
  • How to Avoid Penalties
  • Taxpayer Advocate Service (TAS)

Wednesday

  • Treatment of Payments to Employees
  • Form 941, Employer's Quarterly Federal Tax Return
  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Wage Reports
  • Earned Income Tax Credit (EITC) 

Thursday

  • Reporting Payments to Independent Contractors (Forms 1099)
  • Form 945, Annual Return of Withheld Federal Income Tax
  • Reporting Payments to Foreign Persons
  • Electronic Filing

You can email questions before the workshop starts to tege.outreach@irs.gov and we may address them during the workshop if time permits. The subject line should include Pre-submitted questions for the ITG Employment Tax Workshop.

IRS releases guidance on elective payments and transfers of certain credits under the Inflation Reduction Act

The Internal Revenue Service issued proposed regulations and frequently asked questions about rules for applicable entities that earn certain clean energy credits and choose to make an elective payment election. It also included rules for eligible taxpayers that elect to transfer certain credits to unrelated parties.

Applicable entities generally include tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives.

For tax years beginning after Dec. 31, 2022, applicable entities can choose to make an elective payment election, which will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. This payment will first offset any tax liability of the entity and any excess will be refundable.

Temporary regulations that relate to a mandatory IRS pre-filing registration process, which will be through an electronic portal, were also issued. the pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election or an election to transfer eligible credits.

Applicable entities need their own Employee Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities that don't otherwise have a filing requirement cannot use borrow the EIN of a related entity.

For more information on elective payments and transferability, refer to Publication 5817-F, Elective Pay for Indian Tribal GovernmentsPDF and visit the Indian Tribal Government homepage, Elective Pay and Transferability and Elective Pay and Transferability Frequently Asked Questions at IRS.gov.

New e-file regulations for businesses

The Department of the Treasury and the Internal Revenue Service issued regulations amending the rules for electronically filing returns and other documents. Released in February, these regulations will require certain filers to e-file beginning in 2024.The final regulations reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year.

The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed and require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold.

The IRS created a new, free online portal, known as the Information Returns Intake System (IRIS), to help businesses file Form 1099 series information returns electronically. This free electronic filing service is secure, accurate and requires no special software, visit E-file Forms 1099 With IRIS for more details.

For more information on new e-file regulations, visit IRS and Treasury issue final regulations on e-file for businesses at IRS.gov.

Free Employment Tax Workshops for Indian Tribal Governments

You are invited to join us for a free 4-day workshop through Microsoft Teams hosted by the Office of Indian Tribal Governments. This workshop will offer a review of federal tax responsibilities for tribes and tribal entities relating to employment tax. It will include basic employment tax information for payroll and accounts payable employees, particularly those new to their positions.

The workshop will focus on information from:

Note: No registration is required. Two identical multiday programs of this workshop will be offered. When it is time to join a session, just click the corresponding link or call in.

Dates and Times:

Program 1

Monday, September 18–Thursday, September 21, 2023

Time: daily from 1 p.m. – 4 p.m. (Eastern)/10 a.m. – 1 p.m. (Pacific)

Join on your computer or mobile app: Join a Program 1 session

Call in (audio only): 737-253-8186, Conference ID: 494 232 284#

Use the same link and call-in information every day of the workshop in Program 1.

Program 2

Monday, September 25–Thursday, September 28, 2023

Time: daily from 12 p.m. – 3 p.m. (Eastern)/9 a.m. – 12 p.m. (Pacific) 

Join on your computer or mobile app: Join a Program 2 session

Call in (audio only): 737-253-8186, Conference ID: 364 446 531#

Use the same link and call-in information every day of the workshop in Program 2.

Course Topics (The daily agenda shown below is subject to change)

Monday

  • Introduction to Employment Tax
  • Independent Contractor or Employee?
  • Hiring Employees

Tuesday

  • Preparing Payroll
  • Records Retention
  • IRS Notices and Letters
  • How to Avoid Penalties
  • Taxpayer Advocate Service (TAS)

Wednesday

  • Treatment of Payments to Employees
  • Form 941, Employer's Quarterly Federal Tax Return
  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Wage Reports
  • Earned Income Tax Credit (EITC)

Thursday

  • Reporting Payments to Independent Contractors (Forms 1099)
  • Form 945, Annual Return of Withheld Federal Income Tax
  • Reporting Payments to Foreign Persons
  • Electronic Filing 

You can email questions before the workshop starts to tege.outreach@irs.gov and may address them during the workshop if time permits. The subject line should include Pre-submitted questions for the ITG Employment Tax Workshop.

Beware of Employee Retention Credit scams

The IRS continues to see third parties aggressively promoting Employee Retention Credit (ERC) schemes. In News Release IR-2023-105, the IRS renewed an alert for businesses and tax-exempt groups to watch out for warning signs of aggressive Employee Retention Credit marketing. 

These promoters may lie about eligibility requirements. In addition, taxpayers using these companies could be at risk of someone using the credit as a ploy to steal their identity or take a cut of the taxpayer’s improperly claimed credit. 

ERC is an important pandemic-era credit and valuable if claimed properly but could result in repayment and substantial penalties and interest if not. The IRS has trained auditors examining ERC claims posing the greatest risk. The IRS Criminal Investigation division is working to identify fraud and promoters of fraudulent claims. Illegitimate claims slow down processing of the credit for everyone.

The IRS also reminds businesses, tax-exempt groups, and others about simple steps to take to protect themselves from making an improper ERC. 

  • Work with a trusted tax professional; don’t rely on the advice of those soliciting these credits.
  • Don’t apply unless you believe you are legitimately qualified for this credit. Details about the credit are available at Employee Retention Credit.

Reporting ERC fraud: 

Employers can report illegal tax-related ERC claims and activities by submitting a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF, and any supporting materials to the IRS Lead Development Center in the Office of Promoter Investigations. The fax telephone number and mailing address are on the form. 

Attend the Sports Wagering Tax Requirements for Indian Tribal Governments Webinar on June 28

This is a reminder about our upcoming Sports Wagering Webinar. You’re invited to join us on June 28, 2023, at 2:00pm ET for a free one-hour presentation on Microsoft Teams hosted by the Office of Indian Tribal Governments. This webinar was last held in October 2021 but not recorded.

This presentation will cover the following requirements applicable to tribes and tribal entities accepting sports wagers:

  • Wagering and Occupational Excise Taxes
  • Income Tax Withholding
  • Information Return Reporting

You don’t have to register, just click the link below to join the presentation on Microsoft Teams. If you’re unable to join online, you can join by phone using the information below.

Online – Microsoft Teams (audio and video)

Click here to join the meeting on June 28, 2023, at 2 p.m. ET
Meeting ID: 221 248 601 097     
Passcode: cR6RuG
Download Teams

Join on the web

Call in (audio only)
737-253-8186  Phone Conference ID: 195 849 302#

If you’re unable to join the presentation live, it will be recorded and posted on the IRS Video Portal after the event.

We look forward to you attending the event!

Tax Tip 2023-75 (June 1, 2023)

When banks, credit unions, businesses and other payers file information returns with data that doesn’t match IRS records, the IRS sends them a CP2100 or CP2100A notice. The notices tell payers that the information returns they submitted have a missing or incorrect Taxpayer Identification Number, name or both.

Each notice has a list of payees with the issues the IRS found. Payers need to compare the accounts on the notice with their account records and correct or update their records, if necessary. Payees may also need to correct their backup withholding on payments made to payees.

The IRS sends CP2100 and CP2100A notices twice a year in September and October and again in April.

Information returns that may have incorrect information

The IRS sends notices for errors most frequently found on these forms:

  • Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
  • Form 1099-DIV, Dividends and Distributions
  • Form 1099-G, Certain Government Payments
  • Form 1099-INT, Interest Income
  • Form 1099-K, Payment Card and Third Party Network Transactions
  • Form 1099-MISC, Miscellaneous Information
  • Form 1099-NEC, Nonemployee Compensation
  • Form 1099-OID, Original Issue Discount
  • Form 1099-PATR, Taxable Distributions Received from Cooperatives
  • Form W-2G, Certain Gambling Winnings

Payments subject to backup withholding

CP2100 and CP2100A notices also tell payers that they may be required to backup withhold tax payments. If the payments are reported on the Form 1099 series and Form W-2G information returns, payments may be subject to backup withholding if:

  • The payee doesn't:
    • Give their TIN to the payer in the required manner
    • Certify that they aren’t subject to backup withholding for underreporting interest and dividends
  • The IRS tells the payer:
    • The payee gave an incorrect TIN and didn’t certify their TIN as required
    • They must begin backup withholding because the payee didn't report all their interest and dividends on their tax return

Payers are responsible for any amount they fail to backup withhold and the penalties that may apply.
More information

Indian Tribal Governments: Sports Wagering Tax Requirements webinar

You’re invited to join us on June 28, 2023, at 2:00pm ET for a free one-hour presentation on Microsoft Teams hosted by the Office of Indian Tribal Governments. This presentation will cover the following requirements applicable to tribes and tribal entities accepting sports wagers:

  • Wagering and Occupational Excise Taxes
  • Income Tax Withholding
  • Information Return Reporting

You don’t have to register, just click the link below to join the presentation on Microsoft Teams. If you’re unable to join online, you can join by phone using the information below.
Online – Microsoft Teams (audio and video)

Click here to join the meeting on June 28, 2023, at 2 p.m. ET

Download Teams

Join on the web

Call in (audio only)

737-253-8186 Phone Conference ID: 195 849 302#

If you’re unable to join the presentation live, it will be recorded and posted on the IRS Video Portal after the event.

We look forward to you attending the event!

Tribal Economic Development Bond Volume Cap is still available

National bond volume authority (volume cap) for Tribal Economic Development Bonds is available for allocation to federally recognized Indian tribal governments. This volume cap is available for tax-exempt bonds issued to finance qualified projects.

In 2009, Congress provided for $2 billion of volume cap for Tribal Economic Development Bonds through the American Recovery and Reinvestment Act of 2009. Currently, approximately $63 million of unused volume cap is available.

Notice 2012-48PDF solicits applications for volume cap and provides related guidance on application requirements and forms to request volume cap allocations. Notice 2015-83PDF modifies Notice 2012-48 and provides special rules for bonds issued under a “draw-down” loan structure.

Tribes may request an allocation of volume cap by following the application procedures provided in Notice 2012-48. The IRS will allocate available volume cap on a first-come, first-served basis by order of submission date.

Find additional information on IRS.gov at Published Volume Cap Limit for Tribal Economic Development Bonds.

The ITG webpage, Volunteer Tax Assistance Resources for Indian Country, provides information to help taxpayers located in or near Indian Country prepare their individual income tax returns. This webpage includes several free programs the IRS provides to help taxpayers prepare their individual tax returns, including the Volunteer Income Tax Assistance (VITA) program and Tax Counseling for the Elderly (TCE) and IRS Free File. Look for the link to the VITA Sites Serving Indian Country webpage, which lists VITA sites operating in or near Indian Country by state. IRS trained volunteers familiar with tax issues affecting Indian tribal members typically staff these sites. 

Tax Assistance Resources for Indian Country

The ITG webpage, Volunteer Tax Assistance Resources for Indian Country, provides information to help taxpayers located in or near Indian Country prepare their individual income tax returns. This webpage includes several free programs the IRS provides to help taxpayers prepare their individual tax returns, including the Volunteer Income Tax Assistance (VITA) program and Tax Counseling for the Elderly (TCE) and IRS Free File. Look for the link to the VITA Sites Serving Indian Country webpage, which lists VITA sites operating in or near Indian Country by state. IRS trained volunteers familiar with tax issues affecting Indian tribal members typically staff these sites.

Forms W-2, W-3, and 1099-NEC, and Information Returns are due January 31, 2023

We’re reminding employers that they must file their Forms W-2, Wage and Tax Statement and Forms W-3, Transmittal of Wage and Tax Statements with the Social Security Administration by January 31, 2023. Additionally, Forms 1099-NEC, Nonemployee Compensation must be filed with the IRS to report non-employee compensation to independent contractors by January 31. File on time to avoid penalties.

For more information see January 18, 2023 News Release: IRS reminds employers of January 31 deadline for Form W-2, other wage statements

You can also watch our video tax tip:

“W-2s, W-3s, 1099-NEC, Information Returns Due Date: January 31” in English or Spanish.

IRS opens free portal to file information returns; new electronic option can reduce millions of paper Forms 1099 estimated to be filed by businesses in 2023

IR-2023-14, January 25, 2023 — The Internal Revenue Service announced today that businesses can now file Form 1099 series information returns using a new online portal, available free from the IRS.

New YouTube Videos to Assist Tribes

The IRS Office of Indian Tribal Governments is pleased to announce three new YouTube videos to assist tribes:

2022 News

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Tax Tip 2022-14: Got a letter or notice from the IRS? Here are the next steps

When the IRS needs to ask a question about a taxpayer’s tax return, notify them about a change to their account, or request a payment, the agency often mails a letter or notice to the taxpayer. Getting mail from the IRS is not a cause for panic but, it should not be ignored either.

When an IRS letter or notice arrives in the mail, here’s what taxpayers should do:

Read the letter carefully. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do. A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return. Taking timely action could minimize additional interest and penalty charges.

Review the information. If a letter is about a changed or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should make notes about the corrections on their personal copy of the tax return and keep it for their records. Typically, a taxpayer will only need to take action or contact the IRS if they don’t agree with the information, if the IRS requested additional information, or if they have a balance due.

Take any requested action, including making a payment. The IRS and authorized private debt collection agencies do send letters by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take the appropriate action or submit a payment.

Reply only if instructed to do so. Taxpayers don’t need to reply to a notice unless specifically told to do so. There is usually no need to call the IRS. If a taxpayer does need to call the IRS, they should use the number in the upper right-hand corner of the notice and have a copy of their tax return and letter.

Let the IRS know of a disputed notice. If a taxpayer doesn't agree with the IRS, they should mail a letter explaining why they dispute the notice. They should send it to the address on the contact stub included with the notice. The taxpayer should include information and documents for the IRS to review when considering the dispute.

Keep the letter or notice for their records. Taxpayers should keep notices or letters they receive from the IRS. These include adjustment notices when an action is taken on the taxpayer's account. Taxpayers should keep records for three years from the date they filed the tax return.

Watch for scams. The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure whether they owe money to the IRS can view their tax account information on IRS.gov.

More information:

Understanding Your IRS Notice or Letter

Tax Topic 651, Notices – What to Do

Tax Topic 653, IRS Notices and Bills, Penalties, and Interest Charges

Tax Topic 654, Understanding Your CP75 or CP75A Notice Request for Supporting Documentation

Tax Scams/Consumer Alerts

Share this tip on social media -- #IRSTaxTip:Got a letter or notice from the IRS? Here are the next steps.

The IRS office of Indian Tribal Governments has updated Publication 4268, Employment Tax for Indian Tribal GovernmentsPDF. The revised publication:

  • Provides information to tribes regarding employment tax matters as they pertain to federally recognized Indian tribes and their wholly-owned entities.
  • Assists tribal entities in meeting their federal employment tax responsibilities.
  • Provides information on topics related to tribal entities, including: payments to employees and independent contractors, preparation and filing of employment tax returns, proper reporting of tips and filing of certain information returns, such as Forms 1099-NEC and 1099-MISC.
  • Includes tips for maintaining good records and hyperlinks to the IRS publications and forms mentioned in the guide.

We’ve included a link to this revised publication in the Employment Tax section on the ITG webpage at IRS.gov/tribes.

Virtual Employment Tax Workshops for Indian Tribal Governments

You are invited to join us for a free 12-hour (over 4 days) Microsoft Teams workshop hosted by the Office of Indian Tribal Governments.

This workshop reviews federal tax responsibilities for tribes and tribal entities, and will provide payroll and accounts payable employees, particularly those new to their positions, with basic employment tax information.

This workshop will focus on information provided in:

Two identical workshops will be offered. When it’s time to join, click the link or call in. There is a different link for Session 1 and Session 2.

Dates and Times:

Session 1 Monday, September 12 – Thursday, September 15, 2022
Time: 1 p.m. – 4 p.m. (Eastern) / 10 a.m. – 1 p.m. (Pacific)
Join on your computer or mobile app: Click here to join Session 1
Use this link every day for Session 1
Or call in (audio only): 737-253-8186 Conference ID: 733 148 565#

Session 2 Monday September 19th – Thursday September 22, 2022
Time: 12 p.m. – 3 p.m. (Eastern) / 9 a.m. – 12 p.m. (Pacific) 
Join on your computer or mobile app: Click here to join Session 2
Use this link every day for Session 2
Or call in (audio only): 737-253-8186 Conference ID: 244 150 30#

Course Topics:

Monday

  • Introduction to Employment Tax
  • Independent Contractor or Employee
  • Hiring Employees

Tuesday

  • Preparing Payroll
  • Records Retention
  • IRS Notices and Letters
  • How to Avoid Penalties
  • Taxpayer Advocate Service (TAS)

Wednesday

  • Treatment of Payments to Employees
  • Form 941, Employer's Quarterly Federal Tax Return
  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Wage Reports
  • Earned Income Tax Credit (EITC)

Thursday

  • Reporting Payments to Independent Contractors (Forms 1099)
  • Form 945, Annual Return of Withheld Federal Income Tax
  • Reporting Payments to Foreign Persons
  • Electronic Filing

Questions emailed to tege.outreach@irs.gov with the subject line “Pre-submitted questions for ITG Virtual Employment Tax Workshops” will be answered as time permits.

Interested in participating in a voluntary tip agreement with the IRS?

You are invited to join us for a free one-hour Microsoft Teams event on the Gaming Industry Tip Compliance Agreement (GITCA) Program hosted by the IRS office of Indian Tribal Governments (ITG). 

This event will discuss:

  • How the GITCA Program works
  • The benefits of entering into a tip agreement for tribal entities and their employees.

Click on the meeting link below when it’s time to join.

Microsoft Teams Event on Tuesday, August 16, 2022, at 12 p.m. ET:

Join on your computer or mobile app
Click here to join the meeting

Or call in (audio only)
737-253-8186 Conference ID: 241 831 295#

Questions emailed to tege.outreach@irs.gov with the subject line “Pre-submitted questions for GITCA Program” will be answered as time permits.

Bank Secrecy Act (BSA) Education Outreach

Tribal casino employees, tribal gaming commission employees and tribal officials are invited to join us for a two hour Zoom virtual Bank Secrecy Act outreach hosted by Indian Tribal Governments.

This event will discuss:

  • Currency Transaction Reports (CTR)
  • Suspicious Activity Reports (SAR)
  • Anti-Money Laundering Program Requirements
  • Recordkeeping Requirements
  • BSA Examiners findings

You don't have to register for Zoom. Just click on the Zoom link below when it's time to join.

ZoomGov Event on Wednesday, June 8, 2022
1 p.m. Eastern - Meeting ID: 161 990 6369

To join by audio only, dial by your location and input the meeting ID when prompted:

Help Improve IRS.gov – Participate in a study

We want to make it easier for you to use our website by improving how it’s organized.

Sign up to participate in our study and tell us how you want to find the information on IRS.gov that you need.

After you schedule your study session, you’ll receive an email from our research team with meeting details.

Who can participate in the study

  • You must be at least 18 years of age.
  • You must be an employer, small business owner or retirement plan administrator, or work for a charity or other tax-exempt organization.
  • You MAY NOT be a current or past employee of the IRS or U.S. Department of the Treasury.

If you’re unable to participate in this study, there will be future opportunities to help us improve the website.
If you have questions about this study, please contact us at irsgovtesting@irs.gov.

IRS sends CP2100 and 2100A notices to help payers correct backup withholding errors

In April, the Internal Revenue Service sent CP2100 and CP2100A notices to financial institutions, businesses or payers who filed certain types of information returns that don't match IRS records. These notices are sent twice a year; an initial mailing in September and October and a second mailing in April of the following year. CP2100 and CP2100A notices inform payers the information return is missing a Taxpayer Identification Number (TIN), has an incorrect name or a combination of both. For more information see IR-2022-87, April 15, 2022.

For additional resources on backup withholding:

Backup Withholding Video
Learn how to respond to the CP2100 and 2100A notices timely.

Backup Withholding
Learn what payments are subject to backup withholding.

Taxpayer Identification Number (TIN) On-Line Matching
Use the TIN Matching program to match your 1099 payee information against IRS records prior to filing information returns.

TIN Matching Program Video
Watch the video to avoid penalties and expenses from filing invalid Forms 1099.

Form 945, Annual Return of Withheld Federal Income Tax
Use this form to report withheld federal income tax from nonpayroll payments. Nonpayroll payments include backup withholding.

IRS finalizes frequently asked questions for payments by Indian Tribal Governments and Alaska Native Corporations to individuals

The Internal Revenue Service today issued final frequently asked questions (FAQs) for Payments by Indian Tribal Governments and Alaska Native Corporations to Individuals under COVID-Relief Legislation in Fact Sheet 2022-23

These reflect updates to the Draft FAQs, released in May 2021, based on input from Indian Tribal Government (Tribes) and Alaska Native Corporations (ANC) leaders.

For purposes of these FAQs, references to tribal members include other eligible recipients of COVID relief payments, such as a tribal member’s dependents. In addition, the answers in FAQs 1-14 relating to the tax treatment and information reporting of payments made from Tribes to tribal members should be considered to apply equally to payments made from ANCs to their shareholders and other eligible recipients, such as an ANC shareholder’s dependents.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provided a number of emergency relief programs that benefit Tribes and tribal members. The Consolidated Appropriations Act, 2021 (CAA), enacted on December 27, 2020, extended certain COVID-related tax provisions, and provides for appropriations for COVID-19 emergency response and relief for the fiscal year ending September 30, 2021, including additional funds for Tribes. The American Rescue Plan Act of 2021 (ARP), enacted on March 11, 2021, also extended previous programs, and added new relief provisions that benefit Tribes and tribal members. These programs allow Tribes to provide emergency relief payments to tribal members and their families for necessary expenses resulting from the COVID-19 pandemic.

More information about reliance on IRS FAQs is available.

IRS Suspends Mailing

The IRS is suspending the issuance of several notices generally mailed to tax-exempt or governmental entities in case of a delinquent return. Due to the historic pandemic, the IRS hasn’t yet processed several million returns filed by individuals and entities. The suspension of the notices will help avoid confusion when a filing is still in process.

The IRS will continue to assess the inventory of pending returns to determine the appropriate time to resume mailing these notices. Some taxpayers and tax professionals may still receive the notices during the next few weeks. Generally, there is no need to call or respond to the notices as long as the return was filed timely. 

The suspended notices are:

Number Name
CP214 Reminder Notice About Your Form 5500-EZ or 5500-SF Filing Requirement
CP217 Form 940 Not Required – Federal, State, and Local Government Agencies
CP259A First Taxpayer Delinquency Investigation Notice – Form 990/990EZ/990N
CP259B First Taxpayer Delinquency Investigation Notice – Form 990PF
CP259D First Taxpayer Delinquency Investigation Notice – Form 990T
CP259F First Taxpayer Delinquency Investigation Notice – Form 5227
CP259G First Taxpayer Delinquency Investigation Notice – Form 1120-POL
CP259H First Taxpayer Delinquency Investigation Notice – Form 990/990EZ
CP403 First Delinquency Notice – Form 5500 or 5500-SF
CP406 Second Delinquency Notice – Form 5500

When to use Forms 1099-MISC and NEC Video

Watch the new video, When to use Forms 1099-MISC and NEC, to know when to use Form 1099-MISC, Miscellaneous Information and Form 1099-NEC, Nonemployee Compensation. The video covers the 2021 updates to both forms. This video and others are available on IRSvideos.gov.

Tax Assistance Resources for Indian Country

The ITG webpage, Volunteer Tax Assistance Resources for Indian Country, provides resources that help taxpayers situated in or near Indian Country to prepare their income tax returns.

The webpage lists several free programs the IRS provides to help taxpayers prepare their tax returns, including the Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE) and IRS Free File programs.

The webpage includes a link to a locator tool for IRS VITA and TCE sites and a list of sites operating in or near Indian Country, which typically are staffed with IRS trained volunteers familiar with tax issues affecting Indian tribal members.

IRS announces new online tool to help U.S. withholding agents validate their 1042-S data prior to filing

The Internal Revenue Service launched a new online tool designed to help U.S. withholding agents comply with their reporting and withholding responsibilities with respect to IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.

The tool performs a quality review of data before submission to the IRS. Use of the tool does not change a withholding agent's obligations to file Forms 1042-S with the IRS and furnish a copy of the Form 1042-S to the payee.

The tool is designed to accept Form 1042-S data in common file formats that can be generated by most withholding agents' back office systems. After uploading the data, the user will receive a report indicating errors and potential errors. A tutorial on how to use the tool can be viewed online or downloaded.

Businesses and government entities must report nonemployee compensation

Businesses, including government entities and charities, which pay nonemployee compensation of $600 or more must use Form 1099-NEC, Nonemployee Compensation to report these payments to the IRS.

Generally, payers must file Form 1099-NEC by January 31. For 2021 tax returns, there is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.

Backup withholding

Backup withholding is the payer's requirement to withhold taxes from payments not otherwise subject to withholding. Nonemployee compensation may be subject to backup withholding if a payee has not provided a Taxpayer Identification Number (TIN) to the payer, or the IRS notifies the payer the TIN provided doesn’t match IRS records.  The current backup withholding tax rate is 24%.

A TIN can be one of the following numbers:

  • Social Security number
  • Employer identification
  • Individual taxpayer identification
  • Adoption taxpayer identification

For more information, watch Backup Withholding on IRSvideos.gov.

2021

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Filing and Tax Requirements When Accepting Sports Wagers Event

You are invited to join us for a free one hour Zoom awareness event hosted by the Office of Indian Tribal Governments. 
This event will familiarize you with the following requirements applicable to tribes and tribal entities accepting sports wagers.

  • Wagering and Occupational Excise Taxes
  • Income Tax Withholding
  • Information Return Reporting

Two identical Zoom sessions will be offered. You don’t have to register for Zoom. Just click on the Zoom link below when it is time to join.

Dates and Times:

ZoomGov Event on Thursday October 21, 2021
2 p.m. Eastern - Meeting ID: 160 383 3857

ZoomGov Event on Tuesday October 26, 2021
2 p.m. Eastern - Meeting ID: 161 533 5882

To join by audio only, dial by your location and input the meeting ID when prompted:

Questions emailed to TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for Federal Tax obligations for Sports Wagering” will be answered as time permits.

Navigating the BSA E-Filing System for Casinos Event

You are invited to attend a free Zoom event presented by Jackie Rodriquez, E-Filing Government Lead from the Financial Crimes Enforcement Network (FinCEN) and hosted by the Office of Indian Tribal Governments on October 28, 2021 at 12:00 PM (ET).

This event will cover processing issues with the BSA E-Filing system. The BSA E-Filing System supports electronic filing of Bank Secrecy Act (BSA) forms (either individually or in batches) through a FinCEN secure network.

You don’t have to register for Zoom. Just click on the Zoom link below when it is time to join.

ZoomGov Event on Thursday October 28, 2021

12 p.m. (ET) Meeting ID: 160 305 3433

To join by audio only, dial by your location and input the meeting ID when prompted:

Questions emailed to tege.outreach@irs.gov with the subject line “Pre-submitted questions for Navigating the BSA E-filing” will be researched and answered as time permits.

Reconciliation of Payroll Webinar

You are invited to register for a free webinar on Payroll Reconciliation hosted by the Office of Federal, State and Local Governments on October 14, 2021 at 2:00 PM (ET). This webinar will cover when your payroll should be reconciled and what payroll amounts to use. It will also explain reconciling gross payroll to taxable income for federal income tax and FICA.

What employers need to know when classifying workers as employees or independent contractors

IRS Tax Tip 2021-140 explains how to correctly determine whether individuals providing services are employees or independent contractors.

An employee is generally considered anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker's services are performed. Independent contractors are normally people in an independent trade, business or profession in which they offer their services to the public. Doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers or auctioneers are generally independent contractors.

Employers use Form 1099-NEC to report nonemployee compensation.

Filing and Tax Requirements When Accepting Sports Wagers Event

You are invited to join us for a free one hour Zoom awareness event hosted by the Office of Indian Tribal Governments.
 
This event will familiarize you with the following requirements applicable to tribes and tribal entities accepting sports wagers.

  • Wagering and Occupational Excise Taxes
  • Income Tax Withholding
  • Information Return Reporting

Two identical Zoom sessions will be offered. You don’t have to register for Zoom. Just click on the Zoom link below when it is time to join.

Dates and Times:

ZoomGov Event on Thursday October 21, 2021
2 p.m. Eastern - Meeting ID: 160 383 3857

ZoomGov Event on Tuesday October 26, 2021
2 p.m. Eastern - Meeting ID: 161 533 5882
 
To join by audio only, dial by your location and input the meeting ID when prompted:

Questions emailed to tege.outreach@irs.gov with the subject line “Pre-submitted questions for Federal Tax obligations for Sports Wagering” will be answered as time permits.

Navigating the BSA E-Filing System for Casinos Event

You are invited to attend a free Zoom event presented by Jackie Rodriquez, E-Filing Government Lead from the Financial Crimes Enforcement Network (FinCEN) and hosted by the Office of Indian Tribal Governments on October 28, 2021 at 12:00 PM (ET).

This event will cover processing issues with the BSA E-Filing system. The BSA E-Filing System supports electronic filing of Bank Secrecy Act (BSA) forms (either individually or in batches) through a FinCEN secure network.

You don’t have to register for Zoom. Just click on the Zoom link below when it is time to join.

ZoomGov Event on Thursday October 28, 2021
12 p.m. (ET) Meeting ID: 160 305 3433
 
To join by audio only, dial by your location and input the meeting ID when prompted:

Questions emailed to tege.outreach@irs.gov with the subject line “Pre-submitted questions for Navigating the BSA E-filing” will be researched and answered as time permits.

Filing and Tax Requirements When Accepting Sports Wagers

The IRS reminds tribal casinos of filing requirements when accepting sports wagers. Generally, tribal casinos must file and pay:

Depending upon the dollar amount and type of win, casinos are required to issue Form W-2G, Certain Gambling Winnings to most individual patrons meeting certain thresholds. If either regular gambling withholding or backup withholding is withheld, it is also reported on Form W-2G. However, foreign individuals will receive Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding.

If you would like more information on filing requirements for sports wagering, please join our Sports Wagering Tax Requirements ZoomGov event this coming October 2021. More details coming!

FIRE System Update Coming September 2021

Any filer, including corporations, partnerships, employers, estates or trusts who files 250 or more Forms 1097, 1042-S, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA or W-2G for any calendar year must file their information returns electronically using Filing Information Returns Electronically (FIRE) System. FIRE is the online tool used to transmit information returns and automatic extension requests to the IRS. Before filers can use FIRE, they must complete an online application to obtain a 5-digit alphanumeric code known as a Transmitter Control Code (TCC). Currently, Form 4419 is used to request a TCC.

A new online application, Information Returns (IR) Application for Transmitter Control Code, is scheduled to deploy on September 26, 2021 and will replace Form 4419. The new application will be available on the FIRE page. For more information on FIRE changes, see FIRE System Update: Improving the Process and Security for Information Return (IR) Application for Transmitter Control Code (TCC).

EIN Holders Must Update Any Change to Responsible Party

The IRS is urging those entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information.

IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party - Business. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts.

For more information see IR-2021-161, July 30, 2021.

Redesigned ITG Website

The IRS Office of Indian Tribal Governments announces its Tax Information for Indian Tribal Governments website has a new design and layout. The website is an important tax resource providing valuable information and resources to tribal governments and tribal entities.

Visit the homepage at irs.gov/tribes to view the redesigned site.

Advance Child Tax Credit Payments

Important changes to the Child Tax Credit will help many families get advance payments of the Child Tax Credit in 2021.

The IRS will pay half the total credit amount in advance monthly payments from July to December 2021. You will claim the other half later when you file your 2021 income tax return. 

Refer to the Advance Child Tax Credit page on IRS.gov to determine if you’re eligible for advance payments, to unenroll if you wish, and to manage your payments.

If you aren’t required to file a tax return and haven’t given the IRS your information already, you will need to provide some basic information. Use the Child Tax Credit Non-filers Sign-Up Tool.

If you need to update or add bank account information for direct deposit of your monthly Child Tax Credit payment go to the Child Tax Credit Update Portal and click on the “Manage Advance Payments” button.

See 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions for more information.

Employment Tax Workshops for Indian Tribal Governments

You are invited to join us for a free Zoom workshop hosted by the Office of Indian Tribal Governments.

This workshop is designed as a review of federal tax responsibilities of tribes and tribal entities and will provide payroll and accounts payable employees, particularly those new to their positions, with basic employment tax information.

This workshop will focus on information provided in Publication 4268, Employment Tax for Indian Tribal GovernmentsPDF and Publication 5343, Helpful Hints for Indian Tribes and Tribal Entities to Avoid Penalties on Federal Tax Deposits and Information ReturnsPDF.

Note: Register for the Zoom workshop through Eventbrite. Three identical sessions of this workshop will be offered. Each session is limited to the first 950 participants.

Dates and Times:

Session 1: Monday, August 16 – Thursday, August 19, 2021

Session 2: Monday, August 23 – Thursday, August 26, 2021

Session 3: Monday, August 23 – Thursday, August 26, 2021

One-on-one Taxpayer Assistance Days

By appointment only, please email tege.ask.itg@irs.gov with the subject line “Appointment Request for Taxpayer Assistance Day” to schedule a time.

  • Friday, August 20, 2021 8 a.m. – 8 p.m. (Eastern)/4 a.m. – 4 p.m. (Pacific) 
  • Friday, August 27, 2021 8 a.m. – 8 p.m. (Eastern)/4 a.m. – 4 p.m. (Pacific) 

Course Topics (the daily agenda shown below is subject to change.):

Monday

  • Introduction to Employment Tax
  • Independent Contractor or Employee?
  • Hiring Employees

Tuesday

  • Paying Employees
  • Preparing Payroll
  • Treatment of Payments to Employees

Wednesday

  • Form 941, Employer's Quarterly Federal Tax Return
  • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
  • Wage Reports
  • How to Avoid Penalties

Thursday

  • Reporting Payments to Independent Contractors
  • Records Retention
  • IRS Notices and Letters
  • Taxpayer Advocate Service

Friday

One-on-one Taxpayer Assistance Day

  • Schedule an appointment to meet individually with an IRS Indian Tribal Governments Specialist to discuss:
    • Your Tribe or Tribal Entities current status with the IRS,
    • Questions regarding account issues,
    • Questions regarding IRS notices and letters received, and/or
    • Payment Issues.
  • Request an appointment by sending an email to tege.ask.itg@irs.gov with the subject line “Appointment Request for Taxpayer Assistance Day.”
  • The person attending the appointment must be a duly authorized employee of the tribe or tribal entity or will need to have an executed IRS Form 2848, Power of Attorney and Declaration of Representative.

Questions emailed to TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the ITG Zoom Employment Tax Workshops” will be answered as time permits.

IRS Tax Exempt and Government Entities (TE/GE) is seeking to hire a senior tax law specialist for its Washington, D.C., Office of Indian Tribal Governments (ITG). The application closing date is June 11, 2021.

As a member of our team, you will be responsible for providing technical and analytical services to the ITG program, including enforcement and voluntary compliance support and outreach activities. The job duties for the position include preparing technical responses to the most complex inquiries submitted by IRS employees, members of Congress, Indian Tribal Governments, taxpayers, authorized representatives, government agencies, and other external and internal customers. The position involves networking and relationship building to develop and maintain effective liaisons with internal and external customers, including adherence to proper protocols in working with tribes.

Candidates must have strong analytical, organizational, writing and interpersonal skills. Please visit us at usajobs.gov.

IRS Virtual Information Sessions for Tax Law Specialist Positions

TE/GE will host virtual information sessions for this job opening. Hear from employees currently working in these positions and gain a better understanding of the work they do day-to-day. A representative from IRS Human Resources will also discuss the application process and some of the requirements for the positions.

IRS now accepting TCE and VITA grant applications

Eligible organizations can now submit applications for the IRS's Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs, allowing some organizations to apply for up to three years of annual funding. Interested organizations can apply on Grants.gov through June 4 and can find application packages and guidelines on IRS.gov.

Low Income Taxpayer Clinic 2022 grant application period now open

The  application period  for Low Income Taxpayer Clinic (LITC) matching grants for calendar year 2022 takes place now through June 18, 2021. The LITC is a federal grant program administered by the Office of the Taxpayer Advocate at the IRS.

Reporting Election Workers Earnings Webinar

The Tax Exempt and Government Entities Division and the Office of Federal, State and Local Governments would like to invite you to register to watch the free Reporting Election Workers Earnings Webinar on June 24, 2021 at 1:00 p.m. (ET).

This webinar is designed to explain which workers should be treated as election workers and when taxes should be withheld from wages. It will also cover what should be included in earnings.

Questions emailed to: TEGE.outreach@IRS.gov with the subject line "Pre-submitted questions for Election Worker webinar (June 24)" will be answered as time permits. The deadline for submitting questions is June 10, 2021.

For more information, see Webinars for Tax Exempt & Government Entities.

Draft FAQs for Payments by Indian Tribal Governments to their Individual Members Under COVID-Relief Legislation and Notice of Tribal Consultation

The IRS has a new set of FAQs for payments by Indian Tribal governments to their individual members under COVID-related legislation and Notice of Tribal Consultation.

This link will also be posted to the Tax Information for Indian Tribal Governments homepage and the Volunteer Tax Assistance Resources for Indian Country webpage.
 

The Internal Revenue Service is seeking civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP). Taxpayers interested in serving on the panel may apply by May 14.

Taxable Fringe Benefit Essentials for Employers Webinar

The Tax Exempt and Government Entities Division and the Office of Federal, State and Local Governments would like to invite you to register to watch the free Taxable Fringe Benefit Essentials for Employers Webinar on April 14, 2021 at 1:00 p.m. (ET).

This webinar is designed to explain what a fringe benefit is and how to value a fringe benefit. It will cover the most common fringe benefits and explain if those fringe benefits are taxable.

For more information, see Webinars for Tax Exempt & Government Entities.

Thank You for Attending the Publication 5424 Awareness Day Event

The IRS Office of Indian Tribal Governments thanks all the participants who attended the Publication 5424, Income Tax Guide for Native American Individuals and Sole Proprietors Awareness Day meetings on February 9, 2021.

These meetings provided an overview of the new Publication 5424 which discusses the tax treatment of certain income unique to Native American individuals and sole proprietors and helps in preparing their tax returns.

Check out these links to resources discussed during the presentations:

Online Tools and Resources

Volunteer Tax Assistance Resources for Indian Country

Resources for Indian Tribal Governments

Stay Connected

Find IRS Indian Tribal Governments Information on Social Media

The IRS uses social media to share Indian Tribal Governments information. This includes tax changes, scam alerts, initiatives, tax products and services, and more.

IRS social media resources include:

Subscribe to the platform that best fits your needs to supplement your GovDelivery subscription.

Thank You For Attending the Form 1099-NEC Awareness Day Event

The IRS Tax Exempt and Government Entities Division and the Office of Indian Tribal Governments thanks the over 5,000 participants who attended the Form 1099-NEC Awareness Day Zoom meetings January 12th, 14th and 21st, 2021.

These meetings provided an overview of the Form 1099-Non-Employee Compensation (NEC) and reporting requirements for the 2020 filing season.

Check out these links to resources discussed during the presentations:

Online Tools and Resources

Resources for Indian Tribal Governments

Stay Connected

Telephone Assistance

Business and Specialty Tax Line
Hours: 6:30 a.m. - 6 p.m. Central Time, M-F

800-829-4933

January 27

Income Tax Guide for Native American Individuals and Sole Proprietors Event

You are invited to join us for a free Zoom meeting hosted by the office of Indian Tribal Governments introducing the new IRS Publication 5424, Income Tax Guide for Native American Individuals and Sole ProprietorsPDF (rev. 9/2020).   

This meeting will familiarize you with this new publication which discusses the tax treatment of certain income unique to Native American individuals and sole proprietors and helps in preparing their tax returns.

Each session is limited to the first 950 participants.

Dates and Times:

Tuesday February 9, 2021

Participants may also join via voice call.

Questions emailed to TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the Pub. 5424 Awareness Day” will be answered as time permits. 

Form 1099-NEC Awareness Day

The Tax Exempt and Government Entities Division (TEGE) invites you to join us for a free Zoom awareness meeting on January 21, 2021. 

This meeting is designed to help tribal entities understand the new Form 1099-NEC (Nonemployee Compensation) reporting requirements for the 2020 filing season.  Each session is limited to the first 1000 participants. 

Date and Times:

Thursday January 21, 2021

Participants may also join via voice call using the following information:

Questions emailed to: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the Form 1099-NEC Awareness Day” will be answered as time permits.

Renewable Energy Tax Credit 10-Year Safe Harbor for Federal Land Projects

IRS Notice 2021-05PDF was released on Thursday, December 31, 2020. For purposes of renewable energy tax credit statutes requiring that projects be completed within a certain period after their construction begins. Notice 2021-05 provides a 10-year safe harbor period for qualifying “Federal Land Projects” where more than 50 percent of the project is sited on “Federal Land.”  The notice very broadly defines Federal Land for this purpose as “any land owned or controlled by the United States,” which would include land held in trust by the United States for the benefit of any person(s), including such land held for the benefit of Indian tribes.

Certain Seafood Trade Relief Program Payments Excludable From Income

The IRS issued Chief Counsel Advice 202053014PDF stating that members of a federally recognized Indian tribe who are excluding income from fishing rights-related activity under Internal Revenue Code section 7873 may also exclude payments received under the Seafood Trade Relief Program (STRP) administered by the U.S. Department of Agriculture.  The IRS determined that the STRP payments are “income derived from a fishing rights-related activity of the tribe”, as defined in section 7873(a)(1).

Form 1099-NEC Required to Report Nonemployee Compensation

The IRS reminds employers that, starting with tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation to report any payment of $600 or more to a payee.

Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, the due date is February 1, 2021. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.

Form 1099-NEC Awareness Day

The Tax Exempt and Government Entities Division (TEGE) invites you to join us for a free Zoom awareness meeting on either January 12, 2021 or January 14, 2021.

This meeting is designed to help tribal entities understand the new Form 1099-Non-Employee Compensation (NEC) reporting requirements for the 2020 filing season.  Each session is limited to the first 950 participants.

Dates and Times:

Several dates and times offered to maximize the reach of the event.

Tuesday January 12, 2021

9 a.m. Eastern - Meeting ID: 161 617 7980
2 p.m. Eastern - Meeting ID: 160 527 4160

Thursday January 14, 2021

11 a.m. Eastern - Meeting ID: 160 684 3808
4:00 p.m. Eastern - Meeting ID: 161 660 1009

Participants may also join via voice call using the following information:

Questions emailed to: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the Form 1099-NEC Awareness Day” will be answered as time permits. 

2020

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Indian Tribal Governments Announces New Customer Resources

The Office of Indian Tribal Governments (ITG) is excited to announce additional customer support resources on its ITG How to Contact page. These resources include:

EIN Assignment and Business & Specialty Tax - 800-829-4933

  • Providing account transcripts
  • Adjusting accounts
  • Abating tax or penalties
  • Transferring deposits
  • EIN issuance questions
  • Refund inquires

Electronic Products and Services Support Desk - 866-255-0654

  • E-file
  • E-services
  • Excise Tax e-file and Compliance Program, Forms 720, 2290 and 8849
  • Taxpayer Identification Number (TIN) Matching
  • Disclosure Authorization (DA)
  • Transcript Delivery Service (TDS), and
  • Electronic Account Resolution (EAR)

Electronic Federal Tax Payment System (EFTPS) - 800-555-3453

  • EFTPS enrollment
  • EFTPS deposits
  • Payment history
  • System questions

For other issues, including those listed below, contact the Office of Indian Tribal Governments at 202-317-8900 or tege.ask.itg@irs.gov:

  • ITG Customer Service feedback
  • Casino/Gaming
  • Tips
  • Tribal General Welfare Exclusion Act
  • Per Capita Distributions
  • Tribal Council Pay
  • FUTA Exemption
  • Voluntary Closing Agreements
  • Excise Taxes
  • Fishing Rights
  • Natural Resources
  • Powwow Prizes
  • Tribal Economic Bonds

COVID-19 Business Tax Relief Tool

The COVID-19 Business Tax Relief Tool is now available at IRS.gov/tribes in the Coronavirus Resources banner. This tool helps you determine if you or your business is likely to qualify for one or more of the tax relief options currently available. Based on your answers, the tool will:

  • Let you know if you may be likely to qualify for any of the available relief options.
  • Link you to more information that will allow you to understand how to take advantage of those options.

For questions or additional guidance about COVID-19 related tax relief, including guidance for tribes, visit Coronavirus Tax Relief for Businesses and Tax-Exempt Entities. 
 
IRS Announces 2021 VITA and TCE Program Grants

The IRS recently awarded over $36 million in grants for Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) programs to provide free federal tax return preparation.

This year, the IRS received 354 applications and awarded grants to 34 TCE and 273 VITA applicants.

For information on applying for the TCE or VITA program grants, along with a list of current grant recipients, visit the TCE webpage or the VITA webpage. Visit VITA Resources for Indian Country for more filing information. Learn how you can become a TEC or VITA volunteer.  

Non-filers now have until Nov. 21 to register for an Economic Impact Payment

The deadline to register for an Economic Impact Payment using the Non-Filers tool has been extended to November 21, 2020.

If you don't normally file a tax return – and haven't received an Economic Impact Payment –  we urge you to register as soon as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.

This extension is only for those who haven’t received their EIP and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, the deadline to register remains October 15.

The IRS’s Non-Filers tool is secure. You can use it if you’re married with income below $24,400, or single with income below $12,200 and can’t be claimed as a dependent by someone else.

You can speed the arrival of your payment by choosing to receive it by direct deposit. Otherwise, you’ll receive a check.

Two weeks after you register on the Non-Filers tool, you can track the status of your payment using the Get My Payment tool on IRS.gov.

New Income Tax Guide for Native American Individuals and Sole Proprietors

The new IRS Publication 5424, Income Tax Guide for Native American Individuals and Sole ProprietorsPDF is now available on IRS.gov. Members of a federally-recognized Indian tribe are subject to federal income and employment tax and the provisions of the Internal Revenue Code, like other United States citizens. In addition to the exemptions enjoyed by other U.S. Citizens, individual Indians may enjoy exemptions that derive plainly from treaties or agreements with the Indian tribes concerned, or an act of Congress dealing with their affairs.

This publication discusses the tax treatment of certain income unique to Native American individuals and sole proprietors to help in preparing their tax returns. 

Low-Income Taxpayer Clinic List

If you are a low-income taxpayer who needs help resolving a tax dispute with the IRS and can’t afford representation, you may qualify for free or low-cost help from a Low Income Taxpayer Clinic.  Publication 4134 describes services provided, outlines eligibility requirements, and lists available clinics in cities across the United States. You can find a link to Publication 4134 on the Volunteer Tax Assistance Resources for Indian Country webpage under General Tax Resources. 

Topics for Tribes Now Available on the Coronavirus Tax Relief for Businesses and Tax-Exempt Entities Page

The IRS added a new Topics for Tribes section on the Coronavirus Tax Relief for Businesses and Tax-Exempt Entities page on IRS.gov. This page provides users with the latest information and guidance on coronavirus (COVID-19) tax relief and Economic Impact Payments. The Topics for Tribes section covers frequently asked questions specific to tribes and provides links to additional resources for tribes and tribal entities that operate a trade or business. Users can also find a link to Topics for Tribes on IRS.gov/tribes.

FAQs: Employee Retention Credit under the CARES Act

The Employee Retention Credit under the CARES Act encourages businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

Frequently asked questions about the employee retention credit are now available on IRS.gov. The questions include information for tribes and tribal entities about which employers may be eligible. FAQ number 21 specifically addresses eligibility for tribes. Additional information can be found on the COVID-19-Related Employee Retention Credit Overview page on IRS.gov.

IRS seeks nominations for the Internal Revenue Service Advisory Council

The Internal Revenue Service is accepting applications for the Internal Revenue Service Advisory Council (IRSAC) through June 12, 2020.

The IRSAC serves as an advisory body to the Commissioner of the Internal Revenue Service and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. IRSAC members are appointed to three-year terms by the Commissioner of the Internal Revenue Service.

The IRS is accepting applications for approximately 14 appointments which will begin in January 2021. Tax Exempt & Government Entities (TE/GE) is looking for applicants with knowledge and background in:

  • Exempt Organizations,
  • Indian Tribal Governments, and/or
  • Experience with other aspects of TE/GE

More information, including the application form, is available on the IRS website. Questions about the application process can be emailed to publicliaison@irs.gov.

The IRS office of Indian Tribal Governments has updated Publication 4268, Employment Tax for Indian Tribal GovernmentsPDF. The revised publication:

  • Provides information to tribes regarding employment tax matters as they pertain to federally recognized Indian tribes and their wholly-owned entities.
  • Assists tribal entities in meeting their federal employment tax responsibilities.
  • Provides key information on special topics related to tribal entities.
  • Includes tips for maintaining good records and hyperlinks to the IRS publications and forms mentioned in the guide.

Includes information about the Tribal Social Security Fairness Act of 2018.

Impact of the Tribal Social Security Fairness Act on Worker Status for Tribal Council Members

This issue snapshot addresses questions concerning whether an Indian tribe's decision to enter into a 218A agreement and elect Social Security coverage for its tribal council members, or not enter such an agreement, affects the classification of those workers for other purposes of the Internal Revenue Code (IRC) such as income tax and retirement plan participation.

Indian Tribal Governments and Tax Exempt Bonds Reorganization

Effective November 24, 2019, the Office of Government Entities (GE) was reestablished and now includes separate offices for Tax Exempt Bonds (TEB) and Indian Tribal Governments (ITG). GE also has responsibilities for Federal, State and Local-Employment Tax (FSL-ET) and two correspondence units. The reorganization will help us serve our customers more efficiently. Angela Gartland is the acting Director of Government Entities. Allyson Belsome is the program manager for TEB. Telly Meier is the program manager for ITG. 

The IRS offers several free programs to help many taxpayers prepare their tax returns, including the Voluntary Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

ITG’s webpage, Volunteer Tax Assistance Resources for Indian Country, provides resources that can help taxpayers situated in or near Indian Country to prepare their income tax returns.

The webpage also includes a VITA-Site Locater which identifies some sites operating in or near Indian Country, which typically are staffed with volunteers familiar with the unique tax issues affecting Indian tribal members.

2019

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New IRS Publication 5343, Helpful Hints for Indian Tribes and Tribal Entities to Avoid Penalties on Federal Tax Deposits and Information ReturnsPDF, is now available on IRS.gov. This publication addresses common employment tax and information return penalties, including penalties for late or insufficient employment deposits and name and taxpayer identification mismatches. Publication 5343 also provides tips for responding to notices related to these penalties and avoiding similar future notices.  

Recently revised Publication 3908, Gaming Tax Law and Bank Secrecy Act Issues for Indian Tribal GovernmentsPDF, is available on IRS.gov. This publication provides a guide for tribal casinos’ responsibilities related to federal employment taxes, Title 31 (Bank Secrecy Act), customer and vendor information return filing, and other federal tax responsibilities.

Issue Snapshots

Issue Snapshots provide IRS analysis and resources along with audit tips or issue indicators for technical tax issues. The snapshots are designed for IRS employees, but the information is also helpful for people interested in these issues. The most recent Issue Snapshots for Indian tribal governments are:

Availability of the Work Opportunity Tax Credit to Tribes and Tribal Entities

The Work Opportunity Tax Credit (WOTC) provides a business tax credit to certain employers who hire workers from certain targeted groups. The WOTC is generally claimed as a credit against income tax.

Per Capita Distributions on Net Gaming Profits and the Kiddie Tax

Per capita distributions from net casino profits made to certain children are subject to a special tax calculation commonly referred to as the “kiddie tax”. For taxable years before 2018, the tax is based on the parent’s rate if the parent’s rate is higher than the child’s rate. For taxable years 2018 through 2025, children required to make this calculation may be subject to tax based on tax rates normally applicable to trusts and estates.

Notice 2019-39PDF

Notice 2019-39 clarifies the rules that apply to current refundings for targeted bond programs, including Tribal Economic Development Bonds (TEDBs). This notice is in response to requests for clarification on whether bonds for certain targeted bond programs may be refinanced without applying for a new allocation of volume cap.

It provides guidance on refinancings of TEDBs and targeted bonds for disaster relief bond programs, generally eliminating the need to provide guidance on a program-by-program basis.

This notice applies to all current refunding issues that are issued on or after May 22, 2019. Issuers may also apply this notice to current refunding issues that are issued before May 22, 2019.

2018

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The IRS Indian Tribal Governments office added new links to Social Security information for American Indians and Alaska Natives at IRS.gov/tribes .

National Tax Security Awareness Week
The IRS released a series of News Releases and Tax Tips to encourage individual and business taxpayers to take steps to protect data and identities in advance of the 2019 filing season.

Tribal Social Security Fairness Act of 2018

The Tribal Social Security Fairness Act of 2018 authorizes the Social Security Administration (SSA) to enter into voluntary agreements with Indian tribes to provide individual tribal council members with Social Security benefits.

As SSA releases more details on how to enter into a voluntary agreement, IRS will provide you with additional information.

Publication 5287, Employment Tax Video Guides for Indian Tribal Governments (CD-ROM)

Order the Publication 5287 CD-ROM, with 12 employment tax video guides for Indian tribal employers, by calling 800-829-3676 . You can also view these guides online at Indian Tribal Governments Resources .

Indian Tribal Governments Gaming Compliance Tools

Check out these interactive web tools to help the tribal gaming community comply with federal reporting rules.

Issue Snapshots

Issue Snapshots are IRS employee job aids that provide analysis and resources along with audit tips or issue indicators for technical tax issues. The most recent Issue Snapshots for Indian tribal governments are:

IRC Section 7873 – Treaty Fishing Rights-Related Income
Certain income from a tribal fishing rights-related activity that’s earned by a qualified Indian entity, or by a tribal member directly or through a qualified Indian entity, is exempt from federal, state and local taxes.

IRC Section 414(d) – Governmental Plans for Tribes
This snapshot discusses the types of retirement plans an Indian tribal government may offer and when those plans may be treated as governmental plans.

Revenue Ruling 59-354 – Tribal Council Members’ Wages
Amounts paid to Indian tribal council members for their tribal council service is includible in gross income; however, they are not considered wages subject to withholding for Social Security, Medicare and federal income tax reporting.

FUTA Exemption for Indian Tribal Governments
Indian tribal governments are exempt from tax under the Federal Unemployment Tax Act (FUTA), provided the tribes are fully compliant with the applicable State Unemployment Insurance. This exemption applies to any subdivision, subsidiary or business enterprise wholly owned by the tribe.

Indian Tribal Governments Gaming Compliance Tools

The IRS office of Indian Tribal Governments has three new interactive web tools to help the Indian tribal gaming community comply with federal reporting rules.

  • Title 31, Bank Secrecy Act - This module provides information and links to additional resources to help tribal casinos determine their Title 31 recordkeeping and reporting obligations.
  • Tip Income Reporting - This module provides information and links to additional resources to help tribal employers and employees properly record and report tip income.
  • Information Return Reporting - This module provides information and links to additional resources to help tribal casinos meet their recordkeeping and reporting obligations.

These tools and other information for Indian tribes and tribal casinos are available at Indian Tribal Government Resources and IRS.gov/tribes .

Form 1042-S Webinars

Watch the latest recorded webinars for Indian tribal governments. Find this presentation and more on the IRS Video Portal .

Issue Snapshots

Issue Snapshots are IRS employee job aids that provide analysis and resources along with audit tips or issue indicators for technical tax issues. The most recent Issue Snapshot for tribal governments is:

Join the IRS for a National Paycheck Checkup Thunderclap

We invite you or your group to join @IRSnews in support of the IRS Thunderclap effort promoting a national “Paycheck Checkup” on March 29. Following major tax law changes, workers should review their withholding to make sure they have the right amount of tax taken out of their paychecks.

Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a refundable credit. Workers may get money back even if they have no tax withheld. Each year, millions of eligible workers don’t claim the EITC because they are newly qualified or don’t otherwise need to file a tax return.

Workers who work for someone else or own or run their own business or farm and earned $53,930 or less in 2017 should use the EITC Assistant to see if they qualify for the credit. You must file a return and specifically claim the EITC even if you aren’t required to file.

It’s not too late to file prior year returns to claim EITC if you were eligible, but time is running out:

  • For 2014, file or amend your tax return by April 17, 2018;
  • For 2015, file or amend your tax return by April 18, 2019;
  • For 2016, file or amend your tax return by April 18, 2020.

Refunds Worth $1.1 Billion Waiting to be Claimed

Unclaimed federal income tax refunds totaling $1.1 billion may be waiting for one million taxpayers who did not file a 2014 federal income tax return. Time is running out. To collect these refunds , taxpayers must file their 2014 tax return by April 17, 2018.

Protect Yourself from Identity Theft

The IRS reminds you that every year, people fall prey to tax scams. Three of the scams on the list of 2018 Dirty Dozen Tax Scams include:

  • Phone Scams - Callers claiming to be IRS officials threaten police arrest, deportation or license revocation if the victim doesn’t pay a bogus tax bill.
  • Phishing - Taxpayers need to be on guard against fake emails or websites looking to steal personal information. Criminals may pose as a person in your organization you trust or recognize, requesting sensitive information.
  • Identity Theft - Criminals sometimes file fraudulent returns using information from a phishing scam, with a refund being deposited into the taxpayer’s bank account. They then use a phone scam to claim to be the IRS and ask for that money back.

Publication 5287, Employment Tax Video Guides for Indian Tribal Governments (CD-ROM)

The IRS office of Indian Tribal Governments has released a new CD-ROM with 12 employment tax video guides to help Indian tribal employers properly withhold, deposit and report federal taxes for their employees. Learn more about what to do when you hire and pay employees, including how to:

  • distinguish between employees and contractors,
  • withhold taxes and make payments to the U.S. Treasury, and
  • meet all your reporting requirements.

Order the Publication 5287 CD-ROM by calling 800-829-3676 . You can also view these guides online at Indian Tribal Governments Resources . Please share this information with tribes that may not be receiving our ITG news.

Tuition and Other Educational Benefits Provided by Tribes, Form 1098-T

Tuition and other educational benefits provided by Indian tribes to tribal members pursuant to the Tribal General Welfare Exclusion Act of 2014 (the Act) are not taxable and not subject to information reporting requirements if such benefits meet the requirements of the Act. Tribal students that receive these educational benefits paid by the tribe should not include them on their federal tax return even if they’re shown on a Form 1098-T, Tuition Statement, from the educational institution. Read this article for a complete discussion.

EITC Awareness Day Thunderclap

The IRS office of Indian Tribal Governments invites you to join us in raising awareness of the Earned Income Tax Credit by signing up for our EITC Awareness Day Thunderclap before January 26 (by noon). Our Native American communities are especially at risk for overlooking this important tax credit.

Thunderclap is a crowd speaking social media platform that allows people to support a tweet, Facebook or Tumblr message all at the same time. Think of it as a massive flash mob on social media. It’s completely safe and will automatically post one message on your own social media account. Here’s how to sign up for the EITC Awareness Day Thunderclap:

1. Follow this link: (obsolete link)
2. Click on “Support with” … Facebook, Facebook Page, Twitter or Tumblr
3. Authorize Thunderclap to post this one-time message to your social media platform by clicking on the “Add My Support” tab. You’ll need to input your social media username and password.

A message will be set to go out on EITC Awareness Day, Friday, January 26, 2018, at 1 p.m. EST . It will blast out automatically to each organization and person who backed the cause, which in turn reaches every one of their friends, followers and beyond…all at the same time. Thunderclap will amplify the message throughout all social media. Please consider participating.

We will flood Twitter, Facebook and Tumblr with this message:

“On #EITCAwarenessDay, help #IRS put money in the pockets of working Americans who are eligible. (obsolete)”

The link in the message takes you to the IRS EITC resources webpage. It couldn’t be any easier to get the word out about this important tax credit. The more people who sign up, the louder our Thunderclap will be.

IRS will also issue several EITC news releases aimed at working grandparents, Tribal and rural communities, and military families. These news releases will be available at www.irs.gov/newsroom as part of EITC Awareness. Thank you for your consideration and continued partnership.

2017

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Senior Treasury officials and the Internal Revenue Service will host an in-person listening session on Monday, December 4, from 9:30 – 11:30 a.m. EST, to discuss general federal tax issues related to current tax reform efforts. The issues may include: 

  • economic development incentives in Indian country
  • permanent extension of Indian employment tax credit and acceleration depreciation on Indian lands
  • tax constraints on tribal lands and tribal businesses
  • financing tools and the need for tribal parity

Registration is required by Tuesday, November 28. Please email your contact information to TRIBAL.CONSULT@treasury.gov . You will receive a phone call to collect your personal information for clearance into the Treasury building. This event will not be accessible by phone.