IRS To Be Closed May 24, Four Other Days Due to Budget and Sequester; Filing and Payment Deadlines Unchanged

WASHINGTON — The Internal Revenue Service announced today additional details about the closures planned for May 24, June 14, July 5, July 22 and Aug. 30, 2013.

Due to the current budget situation, including the sequester, all IRS operations will be closed on those days. This means that all IRS offices, including all toll-free hotlines, the Taxpayer Advocate Service and the agency’s nearly 400 taxpayer assistance centers nationwide, will be closed on those days. IRS employees will be furloughed without pay. No tax returns will be processed and no compliance-related activities will take place.

The IRS noted that taxpayers should continue to file their returns and pay any taxes due as usual.

Taxpayers needing to contact the IRS about their returns or payments should be sure to take these furlough dates into account. In some instances, this may include taxpayers with returns or payments due soon after a furlough day, such as the June 17 deadline for taxpayers abroad and those making a second-quarter estimated tax payment as well as the Sept. 3 deadline for truckers filing a highway use tax return.

Because none of the furlough days are considered federal holidays, the shutdown will have no impact on any tax-filing deadlines. The IRS will be unable to accept or acknowledge receipt of electronically-filed returns on any day the agency is shut down.

Similarly, tax-payment deadlines are also unaffected. The only tax payment deadlines coinciding with any of the furlough days relate to employment and excise tax deposits made by business taxpayers. These deposits must be made through the Treasury Department’s Electronic Federal Tax Payment System (EFTPS), which will operate as usual.

On the other hand, the agency will give taxpayers extra time to comply with a request to provide documents to the IRS. This includes administrative summonses, requests for records in connection with a return examination, review or compliance check, or document requests related to a collection matter. No additional time is given to respond to other agencies or the courts.

Where the last day for responding to an IRS request falls on a furlough day, the taxpayer will have until the next business day. If the last day to respond is Friday, May 24, for example, the taxpayer will have until Tuesday, May 28 to comply (Monday, May 27 is Memorial Day). Further details on the impact of the shutdown on IRS procedures will be available on IRS.gov.

Some web-based online tools and phone-based automated services will continue to function on furlough days, while others will be shut down. Available services include Withholding Calculator, Order A Transcript, EITC Assistant, Interactive Tax Assistant, the PTIN system for tax professionals, Tele-Tax and the Online Look-up Tool for those needing to repay the first-time homebuyer credit. Services not available on those days include Where’s My Refund? and the Online Payment Agreement. Visit online tools on IRS.gov to learn more about these tools.

At a later date, the IRS may possibly announce one or two additional furlough days if necessary.

Like Share Print IRS Statement on Obtaining eMails

Where the IRS already has an active criminal investigation and seeks to obtain the content of emails from an Internet Service Provider, we obtain a court ordered search warrant. It is not the IRS policy to seek the content of emails from ISPs in civil cases. Respecting taxpayer rights and taxpayer privacy are cornerstone principles for the IRS. Our job is to administer the nation’s tax laws, and we do so in a way that follows the law and treats taxpayers with respect. However, to resolve any remaining confusion surrounding this issue, the IRS is reviewing its policy and guidance and will make appropriate updates.

Federal Reserve announces issue date of redesigned $100 note

The Federal Reserve Board on Wednesday announced that the redesigned $100 note will begin circulating on October 8, 2013. This note, which incorporates new security features such as a blue, 3-D security ribbon, will be easier for the public to authenticate but more difficult for counterfeiters to replicate.

The new design for the $100 note was unveiled in 2010, but its introduction was postponed following an unexpected production delay. To ensure a smooth transition to the redesigned note when it begins circulating in October, the U.S. Currency Education Program is reaching out to businesses and consumers around the world to raise awareness about the new design and inform them about how to use its security features. More information about the new design $100 note, as well as training and educational materials, can be found at www.newmoney.gov.

For media inquiries, call 202-452-2955

IRS Announces Three-Month Filing, Payment Extension Following Boston Marathon Explosions

WASHINGTON — The Internal Revenue Service today announced a three-month tax filing and payment extension to Boston area taxpayers and others affected by Monday’s explosions.

This relief applies to all individual taxpayers who live in Suffolk County, Mass., including the city of Boston. It also includes victims, their families, first responders, others impacted by this tragedy who live outside Suffolk County and taxpayers whose tax preparers were adversely affected.

“Our hearts go out to the people affected by this tragic event,” said IRS Acting Commissioner Steven T. Miller. “We want victims and others affected by this terrible tragedy to have the time they need to finish their individual tax returns.”

Under the relief announced today, the IRS will issue a notice giving eligible taxpayers until July 15, 2013, to file their 2012 returns and pay any taxes normally due April 15. No filing and payment penalties will be due as long as returns are filed and payments are made by July 15, 2013. By law, interest, currently at the annual rate of 3 percent compounded daily, will still apply to any payments made after the April deadline.

The IRS will automatically provide this extension to anyone living in Suffolk County. If you live in Suffolk County, no further action is necessary by taxpayers to obtain this relief. However, eligible taxpayers living outside Suffolk County can claim this relief by calling 1-866-562-5227 starting Tuesday, April 23, and identifying themselves to the IRS before filing a return or making a payment. Eligible taxpayers who receive penalty notices from the IRS can also call this number to have these penalties abated.

Eligible taxpayers who need more time to file their returns may receive an additional extension to Oct. 15, 2013, by filing Form 4868 by July 15, 2013.

Taxpayers with questions unrelated to the Boston tragedy should visit IRS.gov, or contact the regular IRS toll-free number at 1-800-829-1040.

IRS Statement on Obtaining eMails

Where the IRS already has an active criminal investigation and seeks to obtain the content of emails from an Internet Service Provider, we obtain a court ordered search warrant. It is not the IRS policy to seek the content of emails from ISPs in civil cases. Respecting taxpayer rights and taxpayer privacy are cornerstone principles for the IRS. Our job is to administer the nation’s tax laws, and we do so in a way that follows the law and treats taxpayers with respect. However, to resolve any remaining confusion surrounding this issue, the IRS is reviewing its policy and guidance and will make appropriate updates.

Beware of Phony Email from DFAS

Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida.

The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

Five Tax Credits that Can Reduce Your Taxes

A tax credit reduces the amount of tax you must pay. A refundable tax credit not only reduces the federal tax you owe, but also could result in a refund.

Here are five credits the IRS wants you to consider before filing your 2012 federal income tax return:

• 1. The Earned Income Tax Credit is a refundable credit for people who work and don’t earn a lot of money. The maximum credit for 2012 returns is $5,891 for workers with three or more children. Eligibility is determined based on earnings, filing status and eligible children. Workers without children may be eligible for a smaller credit.

 

• 2. The Child and Dependent Care Credit is for expenses you paid for the care of your qualifying children under age 13, or for a disabled spouse or dependent. The care must enable you to work or look for work. For more information, see Publication 503, Child and Dependent Care Expenses.

 

• 3. The Child Tax Credit may apply to you if you have a qualifying child under age 17. The credit may help reduce your federal income tax by up to $1,000 for each qualifying child you claim on your return. You may be required to file the new Schedule 8812, Child Tax Credit, with your tax return to claim the credit.

 

• 4. The Retirement Savings Contributions Credit (Saver’s Credit) helps low-to-moderate income workers save for retirement. You may qualify if your income is below a certain limit and you contribute to an IRA or a retirement plan at work. The credit is in addition to any other tax savings that apply to retirement plans.

 

• 5. The American Opportunity Tax Credit helps offset some of the costs that you pay for higher education. The AOTC applies to the first four years of post-secondary education. The maximum credit is $2,500 per eligible student. Forty percent of the credit, up to $1,000, is refundable. You must file Form 8863, Education Credits, to claim it if you qualify.

Make sure you qualify before claiming any tax credit.

IRS Statement on “Where’s My Refund?” Tool

The IRS alerted taxpayers and the tax community it is experiencing high traffic on “Where’s My Refund?” as more tax returns come in. The heavy volume of refund inquiries means that the IRS anticipates both “Where’s My Refund?” on IRS.gov and the refund feature on the IRS2go phone app will have limited availability during busier periods.

Due to the large number of inquiries and to avoid service disruptions, the IRS strongly urges taxpayers to only check on their refunds once a day. IRS systems are only updated once a day, usually overnight, and the same information is available whether on the Internet, IRS2go smartphone app or on IRS toll-free lines. While “Where’s My Refund?” is updated nightly, your account will not change that frequently.

The IRS is seeing a good start to the filing season, and tax refunds are being issued timely. Nine out of 10 taxpayers typically receive refunds in less than 21 days when they use e-file with direct deposit.

The IRS expects to see the number of tax returns — and related refund inquiries — steadily increase around the President’s Day holiday week.

Here are some tips to help taxpayers with their refund questions:

• Have the right tax information ready before using any of the IRS refund tools. This includes Social Security number, filing status and refund amount.
  You don’t need to check “Where’s My Refund?” more than once a day as your information will not change.
  • To avoid system delays, the best time to check on refunds is evening and weekends.
  • There is no need to call the IRS about your refund; the telephone service has the same information that is available on “Where’s My Refund?”.

Identity theft, fraud or misuse of my Social Security or Medicare card

To report identity theft, fraud, or misuse of your Social Security number, the Federal Trade Commission (FTC), the nation’s consumer protection agency, recommends that you take the following steps:

Step 1: Place a fraud alert on your credit file by contacting one of the three companies:

Equifax – 1-800-525-6285
Trans Union – 1-800-680-7289
Experian – 1-888-397-3742

The company you contact is required to contact the other two, which will then place an alert on your credit report.

Step 2: Review your credit report for inquiries from companies you have not contacted; accounts you did not open; and debts on your accounts that you cannot explain.

Step 3: Close any accounts you know, or believe, have been tampered with or opened fraudulently.

Step 4: File a report with your local police or the police in the community where the identity theft took place.

Step 5: File a complaint with the Federal Trade Commission online or by calling them at 1-877-438-4338 (TTY 1-866-653-4261).

IRS Criminal Investigation Targets Identity Theft Refund Fraud

The IRS has seen a significant increase in refund fraud that involves identity thieves who file false claims for refunds by stealing and using someone’s Social Security number. The investigative work done by Criminal Investigation (CI) is a major component of the Internal Revenue Service’s efforts to combat tax-related identity theft.

Statistical Data

In Fiscal Year 2012, the IRS initiated approximately 900 identity theft related criminal investigations, tripling the number of investigations initiated in FY 2011. Direct investigative time applied to identity theft related investigations increased by 129 percent over that same period. Prosecution recommendations, indictments, and those convicted and sentenced for identity theft violations have increased dramatically since Fiscal Year 2010. Sentences handed down for convictions relating to identity theft have been significant, ranging from 4 months to 300 months.

Enforcement Efforts

Criminal Investigation is committed to investigating and prosecuting identity thieves who attempt to defraud the United States Government by filing fraudulent refund claims using another person’s identifying information.

The IRS continues to seek out and identify additional tools and methods to combat the proliferation of tax-related identity theft. For example:

In collaboration with the Department of Justice, Tax Division (DOJ-Tax) and United States Attorney’s Offices located throughout the United States, the IRS conducted highly successful coordinated identity theft enforcement actions during the month of January 2013. This nationwide effort targeted 389 people in 32 states and Puerto Rico, and included indictments, arrests, and the execution of search warrants involving the potential theft of thousands of identities.
The IRS established the Identity Theft Clearinghouse (ITC), a specialized unit within CI dedicated solely to processing and tracking identity theft leads. The ITC’s primary responsibility is to develop and refer identity theft schemes to CI field offices. In addition, ITC provides coordination and administrative and investigative support to ongoing criminal investigations involving identity theft.
Working to assist state and local law enforcement agencies in their efforts to fight identity theft-related refund fraud, CI developed the Identity Theft Victim Disclosure Waiver Process. The program provides for the disclosure of federal tax returns and return information associated with the accounts of known and suspected victims of identity theft with the express written consent of those victims. Prior to disclosing any tax information, victims are required to sign a waiver authorizing the release of information to the designated state or local law enforcement official pursuing the investigation. The program is currently operational in nine states: Florida, Alabama, California, Georgia, New Jersey, New York, Oklahoma, Pennsylvania and Texas. CI expects to expand this initiative to include other states and jurisdictions.
The IRS expanded the scope of chargeable criminal violations to better combat identity theft related crimes. Additional charges include forging endorsements on Treasury checks; theft of public money; fraud in connection with access devices; mail fraud; and wire fraud.
In collaboration with DOJ-Tax, Directive 144, Stolen Identity Refund Fraud (SIRF) was issued, providing federal law enforcement officials with the ability to timely address a subset of identity theft cases. This directive specifically focuses on identity theft in the context of fraudulent tax refunds and provides for a streamlined investigation and prosecution process.
Criminal Investigation participates in the Department of Justice’s Identity Theft Interagency Working Group.
CI held an Identity Theft Summit Jan.17, 2013, where 14 partner law enforcement agencies collaborated with CI in an effort to address identity theft related investigative challenges and priorities.
CI special agents throughout the country are active members on over 35 multi-agency law enforcement task forces and working groups. The combined law enforcement efforts include federal, state, and local law enforcement.