Here you'll find items of current interest — new programs, recent guidance or timely reminders. Tax updates and news from the IRS The Tax updates and news from the IRS page is designed to help anyone whether they are now preparing their tax return or are awaiting processing of a return or refund. It also has the latest updates on IRS letters and notices. Newer updates will be placed at the top of that page. The IRS will also provide critical updates through social media. Hurricane Milton tax relief available for Florida taxpayers Due to Hurricane Milton, the IRS announced relief for individuals and businesses in 51 counties in Florida. Affected taxpayers in all of Florida now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments, including 2024 individual and business returns normally due during March and April 2025 and 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments. In addition, the IRS will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway throughout the state of Florida. This relief is in addition to the limited relief provided in response to Hurricane Helene. The relief begins on Oct. 9, 2024, and will remain in effect through Oct. 30, 2024. IRS accelerates processing of ERC claims The IRS announced continued progress on Employee Retention Credit claims, with processing underway on approximately 400,000 claims, representing about $10 billion of eligible claims. The claims include eligible and ineligible claims, with the majority in this portion being processed for approval. Checks are being mailed for eligible claims with refunds, with more planned in the weeks and months ahead. Oct. 15 tax-filing extension deadline The IRS encourages taxpayers to file their 2023 tax year federal income tax return on or before the Tuesday, Oct. 15, 2024, deadline to avoid possible late filing penalties. Convenient electronic filing options, including IRS Free File, are still available. MilTax, a free online service that members of the military and qualifying veterans can use to file their federal income tax returns, is also available. Disaster-area taxpayers and military members and their families may have extra time to file. Those with an IRS address of record in areas covered by FEMA disaster declarations and those returning from a combat zone may qualify for additional time to file. IRS Direct File expands availability for the 2025 tax filing season IRS Direct File will be available for the 2025 tax filing season in double the number of states than last year’s pilot, and it will cover a wider range of tax situations, greatly expanding the number of taxpayers eligible to use the free e-filing service. Help for victims of Hurricane Helene The IRS announced disaster tax relief for all individuals and businesses affected by Hurricane Helene, including the entire states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia. As part of efforts to help victims the agency is also taking special steps to provide more than 500 employees to help with FEMA disaster relief call lines and sending IRS Criminal Investigation agents into devastated areas in North Carolina and Florida to help with search and rescue efforts and other relief work. The IRS also announced that it granted dyed diesel penalty relief as a result of Hurricane Helene. The agency will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway throughout Alabama, Georgia, North Carolina, and South Carolina and in several counties in Florida, Tennessee and Virginia. Relief for farmers and ranchers impacted by drought The IRS issued guidance providing tax relief for farmers and ranchers in applicable regions forced to sell or exchange livestock because of drought conditions. The IRS provides this extension to eligible farmers and ranchers if the applicable region is listed as suffering exceptional, extreme or severe drought conditions during any week between Sept. 1, 2023, and Aug. 31, 2024. New relief for taxpayers affected by terrorist attacks in Israel Due to recent terrorist attacks in Israel, the IRS is providing additional tax relief to affected individuals and businesses, postponing until Sept. 30, 2025, a wide range of deadlines for filing federal returns, making tax payments and performing other time-sensitive tax-related actions. Notice 2024-72 PDF covers similar groups but is separate from Notice 2023-71, which originally provided relief to taxpayers affected by the Oct. 7, 2023, attacks in Israel. Tax relief now available to taxpayers affected by Washington wildfires The IRS announced disaster tax relief for individuals and businesses in the Confederated Tribes and Bands of the Yakama Nation in Washington state affected by wildfires that began on June 22, 2024. Taxpayers affected have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. Volunteers needed to provide free tax services The Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are currently recruiting volunteers across the country for the upcoming filing season. No experience is necessary to become a VITA or TCE volunteer. Free specialized training is provided by the IRS. Available positions are not limited to tax preparation and can include interpreters, greeters and computer specialists. IRS relief available to storm victims in parts of Illinois The IRS announced disaster tax relief for individuals and businesses in parts of Illinois affected by severe storms, tornadoes, straight-line winds and flooding that began on July 13, 2024. Affected taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. Supplemental claim process for Employee Retention Credit The IRS is opening a supplemental claim process to help third-party payers and their clients resolve incorrect claims for the Employee Retention Credit. This supplemental claim process lets a third-party payer that filed a prior claim with multiple clients “withdraw” only some clients while maintaining the claims of the qualifying clients. Offer in Compromise "mills" mislead taxpayers Beware of promoters claiming their services are necessary to resolve unpaid taxes owed to the IRS while charging excessive fees, often with no results. These unscrupulous “mills” use aggressive marketing to make false claims of guaranteed settlements for “pennies-on-the-dollar,” or will say there’s a limited window of time to resolve tax debts through the IRS Offer in Compromise (OIC) program. Hurricane Debby tax relief available for Pennsylvania taxpayers The IRS announced tax relief for individuals and businesses affected by Hurricane Debby in Pennsylvania. Affected taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. Pennsylvania is the sixth state to qualify for relief, along with Vermont, South Carolina, North Carolina, Florida, and Georgia. IRS offers relief to Tropical Storm Francine victims in Louisiana IRS announced tax relief for taxpayers in the entire state of Louisiana affected by Tropical Storm Francine that began on Sept. 10, 2024. These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments. Tax relief for victims of severe storms and flooding in Connecticut and New York IRS announced tax relief for individuals and businesses in Connecticut and New York affected by severe storms and flooding from torrential rainfalls that began on Aug. 18, 2024. Taxpayers now have until Feb. 3, 2025, to file various federal and business tax returns and make tax payments. ERC voluntary disclosure program reopens The IRS announced a second ERC Voluntary Disclosure Program that allows businesses to correct improper payments at a 15% discount and avoid future audits, penalties and interest. The program is open through Nov. 22, 2024.
