IRS Communications Alert: April 2023

The IRS recently released important information about Form 1099-K, W-2 scams, Clean Vehicle Credits and more. 

Key notes:

• Form 1099-K : Why you might receive a Form 1099-K
• Dirty Dozen 2023: Compiled annually, the Dirty Dozen lists a variety of common scams that taxpayers may encounter anytime but many of these schemes peak during filing season as people prepare their returns or hire someone to help with their taxes.
• Tax relief for victims in Mississippi and New York:
• Mississippi storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments.
• New York winter storm and snowstorm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments.
• W-2 scam: A new scam circulating on social media urges people to use wage information on a tax return to claim false credits in hopes of getting a big refund.
• Taxable income: It’s important for taxpayers to file a federal tax return that has a complete and correct reporting of their income – which may mean including income from sources other than regular wages from an employer. Income from gig economy activities and tip income are two common sources of such income.
• Clean Vehicle Credit FAQ updates: IRS issued proposed regulations related to certain requirements that must be met for critical minerals and battery components for the new clean vehicle credit.

News releases:

• Dirty Dozen
• Dirty Dozen: IRS warns of scammers using fake charities to exploit taxpayers
• Dirty Dozen: IRS warns individuals to stay clear of shady tax preparers; offers tips on carefully choosing tax professionals
• Dirty Dozen: Taking tax advice on social media can be bad news for taxpayers; schemes circulating involving tax forms
• Dirty Dozen: IRS urges tax pros and other businesses to beware of spearphishing; offers tips to avoid dangerous common scams
• Dirty Dozen: Watch out for Offer in Compromise ‘mills’ where promoters claim their services are needed to settle IRS debts
• Disaster relief
• IRS: Mississippi storm victims qualify for tax relief; April 18 deadline, other dates extended to July 31
• IRS: New York storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15
• Clean Vehicle Credits 
• IRS issues guidance and updates frequently asked questions related to the new clean vehicle critical mineral and battery components

Fact sheet:

• IRS updates frequently asked questions related to new, previously owned and qualified commercial clean vehicle credits

Tax tips: Go to the Current Tax Tips page or Subscribe to Tax Tips to get brief, concise tips in plain language covering a wide-range of topics.

• All income is taxable, including gig economy and tip income
• Taxpayers should bookmark IRS.gov this filing season for tax info and helpful tools 
• Attempting this W-2 scam can lead to penalties for taxpayers

IRS Outreach Connection: Keep your clients, employees, customers, constituents, partners and even families connected to useful, tax-related information and materials for tax topics and issues that affect them by subscribing to Outreach Connection.

e-News subscriptions: The IRS offers several e-News subscriptions on a variety of tax topics. Subscribe to receive emails on topics of importance to small businesses, payroll professionals and tax professionals:

• e-News for Small Businesses
• e-News for Payroll Professionals
• e-News for Tax Professionals

Staying in the loop regarding IRS deadlines and updates is important. If you have any other questions visit the IRS website to seek guidance.