The Indian Tribal Governments News is a periodic newsletter with information for Indian Tribal Governments from the office of Indian Tribal Governments (Tax-Exempt and Government Entities Division) at the IRS. Subscribe to future editions. 2022 January 19 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 October 14 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: 669-254-5252 US (West Coast) 646-828-7666 US (East Coast) 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: 669-254-5252 US (West Coast) 646-828-7666 US (East Coast) 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. October 4 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. September 17 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, 20212 p.m. Eastern - Meeting ID: 160 383 3857 ZoomGov Event on Tuesday October 26, 20212 p.m. Eastern - Meeting ID: 161 533 5882 To join by audio only, dial by your location and input the meeting ID when prompted: 669-254-5252 US (West Coast) 646-828-7666 US (East Coast) 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, 202112 p.m. (ET) Meeting ID: 160 305 3433 To join by audio only, dial by your location and input the meeting ID when prompted: 669-254-5252 US (West Coast) 646-828-7666 US (East Coast) 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. August 20 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: Form 730, Monthly Tax Return for Wagers Monthly excise tax on wagering Form 11-C, Occupational Tax and Registration Return for Wagering Annual Occupational Tax and Registration Return for Wagering filed by the casino and any agent (employee) receiving wagers on the casino’s behalf 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. July 19 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. July 7 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 Governments PDF and Publication 5343, Helpful Hints for Indian Tribes and Tribal Entities to Avoid Penalties on Federal Tax Deposits and Information Returns PDF. 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 Time: 1 p.m. – 4 p.m. (Eastern)/10 a.m. – 1 p.m. (Pacific) Eventbrite Link: eventbrite.itg-employment-tax-workshops-session-1 Session 2: Monday, August 23 – Thursday, August 26, 2021 Time: 10 a.m. – 1 p.m. (Eastern)/7 a.m. – 10 a.m. (Pacific) Eventbrite Link: eventbrite.itg-employment-tax-workshops-session-2 Session 3: Monday, August 23 – Thursday, August 26, 2021 Time: 2 p.m. – 5 p.m. (Eastern) / 11 a.m. – 2 p.m. (Pacific) Eventbrite Link: eventbrite.itg-employment-tax-workshops-session-3 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. June 8 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. Session 1, Thursday, June 10, 3-4:30 p.m. ET Join ZoomGov Meeting: https://irs.zoomgov.com/j/1614802207?pwd=K3FNT2J3Q085bGw3MkNJcTh2MWFaUT09 Meeting ID: 161 480 2207 Passcode: YmB9=pX# For audio only, dial by your location 669-254-5252 U.S. (West Coast) 646-828-7666 U.S. (East Coast) Meeting ID: 161 480 2207 Session 2, Thursday, June 17, 4-5:30 p.m. ET This USAJOBS announcement closes on June 11, 2021, so this session will discuss future Tax Law Specialist positions. Join ZoomGov Meeting: https://irs.zoomgov.com/j/1618716566?pwd=K2xWUEIvMmYvWDd2REI5UFRSNndnZz09 Meeting ID: 161 871 6566 Passcode: sfZw2f@W For audio only, dial by your location 669-254-5252 U.S. (West Coast) 646-828-7666 U.S. (East Coast) Meeting ID: 161 871 6566 June 2 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. May 26 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. May 11 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. March 16 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. February 26 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 Publication 5424, Income Tax Guide for Native American Individuals and Sole Proprietors PDF(rev. 9/2020) Volunteer Tax Assistance Resources for Indian Country Volunteer Tax Assistance Resources for Indian Country Resources for Indian Tribal Governments Tax Information for Indian Tribal Governments Contact the IRS Office of Indian Tribal Governments Stay Connected Subscribe to Indian Tribal Governments News 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: Twitter - specific topics: @IRSnews - tax announcements @IRSenEspanol - information in Spanish @IRStaxpros - for tax professionals @IRStaxsecurity - scam alerts @IRSsmallbiz - small businesses and self-employed @RecruitmentIRS - job opportunities. Instagram: Access “IRSNews” at https://www.instagram.com/irsnews or the Instagram app. YouTube: Video tips in English, Spanish and American Sign Language. Facebook: News and information for taxpayers and tax return preparers, Also in Spanish. LinkedIn: IRS updates and job opportunities. Subscribe to the platform that best fits your needs to supplement your GovDelivery subscription. January 27 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 2020 Instructions for Forms 1099-MISC and 1099-NEC General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) Taxpayer Identification Number (TIN) Matching Filing Information Returns Electronically (FIRE) Resources for Indian Tribal Governments Tax Information for Indian Tribal Governments Volunteer Tax Assistance Resources for Indian Country Contact the IRS office of Indian Tribal Governments Stay Connected Subscribe to Indian Tribal Governments News Subscribe to Exempt Organization Update Subscribe to the FSLET News 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 Proprietors (PDF) PDF (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 10 a.m. Eastern - Meeting ID: 160 262 9166 3 p.m. Eastern - Meeting ID: 160 625 2597 Participants may also join via voice call. Dial by your location and input the meeting ID when prompted: 669-254-5252 US (San Jose) 646-828-7666 US (New York) 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. January 21 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 11 a.m. Eastern time - Meeting ID: 160 590 5541 3 p.m. Eastern time - Meeting ID: 161 865 1605 Participants may also join via voice call using the following information: Dial by your location and input the meeting ID when prompted: 669-254-5252 US (San Jose) 646-828-7666 US (New York) 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. January 20 Renewable Energy Tax Credit 10-Year Safe Harbor for Federal Land Projects IRS Notice 2021-05 PDF 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 202053014 PDF 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. January 4 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: Dial by your location and input the meeting ID when prompted: 669-254-5252 US (San Jose) 646-828-7666 US (New York) 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 November 19 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 November 10 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. October 15 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. October 5 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 Proprietors PDF 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. June 29 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. June 2 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. May 7 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. May 1 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. February 26 The IRS office of Indian Tribal Governments has updated Publication 4268, Employment Tax for Indian Tribal Governments PDF. 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. February 7 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. New Downloadable Assistant Helps Small Businesses Withhold the Right Amount of Income Tax The Internal Revenue Service launched a new online assistant designed to help employers, especially small businesses, easily determine the right amount of federal income tax to withhold from their workers’ pay. Known as the Income Tax Withholding Assistant for Employers, this new spreadsheet-based tool is designed to help employers easily transition to the redesigned withholding system (no longer based on withholding allowances), which went into effect on January 1. More information about the Income Tax Withholding Assistant for Employers, the redesigned 2020 Form W-4, and other tax topics of interest to employers and small businesses can be found on IRS.gov. January 21 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 November 13 New IRS Publication 5343, Helpful Hints for Indian Tribes and Tribal Entities to Avoid Penalties on Federal Tax Deposits and Information Returns PDF, 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 Governments PDF, 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. July 19 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. May 21 Notice 2019-39 PDF 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 December 21 The IRS Indian Tribal Governments office added new links to Social Security information for American Indians and Alaska Natives at IRS.gov/tribes . American Indians and Alaska Natives (AIAN) connects American Indians and Alaska Natives to information about their Social Security benefits. Tribal Social Security Fairness Act of 2018 PDF provides more information about the Tribal Social Security Fairness Act of 2018, including regional contact information for Indian tribes wishing to offer Social Security coverage to tribal council members. 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. October 25 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. Title 31, Bank Secrecy Act - Tribal casinos meet Title 31 recordkeeping and reporting obligations. Tip Income Reporting - Tribal employers and employees record and report tip income. Information Return Reporting - Tribal casinos meet recordkeeping and reporting obligations. July 19 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. May 24 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 . Income Tax Withholding on Foreign Persons Forms 1042-S and 1042 - Learn about the tax treatment of payments to non-resident aliens and foreign persons. 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: IRC Section 7871 – Treatment of Indian Tribes as States - Indian Tribes are treated as states for certain purposes in the Internal Revenue Code. Indian tribes and their wholly owned entities are not subject to income tax, except for businesses incorporated under state law. March 26 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. February 27 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. January 18 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 November 22 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.
