An extension can be filed for both forms or paper file with Form 1120-POL
Returns due from Jan. 15, 2024, to March 15, 2024:
- Form 990-T, Exempt Organization Business Income Tax Return
A relatively small number of 990-T filers are affected by this.
Organizations subject to unrelated business income tax (UBIT) are required by law to file Form 990-T electronically. An organization with a Form 990-T due from Jan.15, to March 15, 2024, should request an automatic six-month extension of time to file by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return, by the due date of the return. The IRS estimates only about 2,000 of the 200,000 Form 990-T filers have a due date in this time period and are affected by this.
Any balance due must be submitted with Form 8868 to avoid interest and penalties. Beginning March 17, 2024, organizations will be able to timely e-file Form 990-T by the extended due date.
If an affected organization doesn't timely submit an extension, or if the extended due date falls within the period from Jan. 15, 2024, to March 15, 2024, and the organization consequently doesn't timely e-file its Form 990-T, it should include with its late e-filed Form 990-T a request that any penalties for late filing not be imposed due to reasonable cause. The reasonable cause request should reference that e‑filing was not available as of the due date of the return.
- Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations
Organizations filing a Form 1120-POL that is due from Jan. 15, 2024, to March 15, 2024, (including returns on extension) may file on paper. An organization that wishes to e-file a return with an original due date during that period may request an automatic six-month extension of time to file Form 1120-POL by submitting Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, and paying the full balance due with that form to avoid interest and penalties. As noted earlier, only a handful of these groups typically file electronically in the affected time period.
The Taxpayer Bill of Rights protects all taxpayers year-round
The Taxpayer Bill of Rights is the 10 rights all taxpayers have any time they interact with the IRS. These rights cover a wide range of topics and issues, and they explain what taxpayers can expect if they need to work with the IRS on a tax matter. This includes when a taxpayer files a return, pays taxes, responds to a letter or notice, goes through an audit or appeals an IRS decision.
Taxpayer Bill of Rights
Taxpayers have a right to:
- Be Informed – The right to know what to do to comply with the tax laws.
- Quality Service – The right to receive prompt, courteous and professional assistance when working with the IRS.
- Pay No More than the Correct Amount of Tax – The right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
- Challenge the IRS's Position and Be Heard – The right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions.
- Appeal an IRS Decision in an Independent Forum – The right to a fair and impartial administrative appeal of most IRS decisions.
- Finality – The right to know when the IRS has finished an audit.
- Privacy – The right to expect that any IRS inquiry, examination or enforcement action will comply with the law and be no more intrusive than necessary.
- Confidentiality – The right to expect that any information taxpayers provide to the IRS will not be disclosed unless authorized by the taxpayer or by law.
- Retain Representation – The right to retain an authorized representative of the taxpayer's choice to represent them when working with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer ClinicPDF if they cannot afford representation.
- A Fair and Just Tax System – The right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay or ability to provide information timely.
Tax credits and deductions for individuals
Tax credits and deductions change the amount of a person's tax bill or refund. People should understand which credits and deductions they can claim and the records they need to show their eligibility.
Tax credits
A tax credit reduces the income tax bill dollar-for-dollar that a taxpayer owes based on their tax return.
Some tax credits, such as the Earned Income Tax Credit, are refundable. If a person's tax bill is less than the amount of a refundable credit, they can get the difference back in their refund.
To claim a tax credit, people should:
- Keep records to show their eligibility for the tax credits they claim.
- Check now to see if they qualify to claim any credits next year on their tax return.
Deductions
Deductions can reduce the amount of a taxpayer's income before they calculate the tax they owe.
Most people take the standard deduction. The standard deduction changes each year for inflation. The amount of the standard deduction depends on a taxpayer's filing status, age and whether they're blind and whether the taxpayer is claimed as a dependent by someone else.
Some people must itemize their deductions, and some people may choose to do so because it reduces their taxable income more than the standard deduction. Generally, if a taxpayer's itemized deductions are larger than their standard deduction, it makes sense for them to itemize.
Interactive Tax Assistant
Find help with tax questions based on specific circumstances with the Interactive Tax Assistant. It can help a person decide if they're eligible for many popular tax credits and deductions.
Businesses can file Form 1099 series information returns for free
Business taxpayers can file electronically any Form 1099 series information returns for free with the IRS Information Returns Intake System (IRIS). IRIS accepts 1099 series forms for tax year 2022 and after. IRIS is available to any business of any size. It's secure and accurate and it requires no special software. It also reduces the need for paper forms.
Starting in tax year 2023, businesses with a combination of 10 or more information returns must file them electronically.
With IRIS, business taxpayers can:
- Enter information into the portal or upload a file with a downloadable template in IRIS.
- Download completed copies of Form 1099-series information returns.
- Submit extensions.
- Make corrections to information returns filed with IRIS.
- Get alerts for input errors and missing information.
- Get a confirmation in a little as 48 hours that the IRS received the return.
- Reduce expenses on paper, postage, storage space and trips to the post office.
1099-K reporting threshold delayed for third party platform payments
The IRS delayed the new $600 Form 1099-K reporting threshold requirement for third party payment organizations for tax year 2023. For 2023 and prior years, payment apps and online marketplaces are required to send out Forms 1099-K only to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in the new reporting requirements.
Time to renew Preparer Tax Identification Numbers by Dec. 31
Paid tax return preparers with a PTIN expiring on Dec. 31, 2023, need to renew their PTIN with the online renewal process. It takes about 15 minutes to renew online.
Anyone who's paid to prepare or helps prepare any U.S. federal tax return or a claim for refund must have a valid PTIN from the IRS. All 2023 PTINs will expire Dec. 31, 2023. The non-refundable fee to get or renew a PTIN is $19.75 for 2024.
While it is faster to renew online, paid tax return preparers can also renew their PTINs with Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal. It can take up to six weeks to process paper applications and renewals.
Renew a PTIN online
To renew online with IRS.gov/taxpros:
- Select the "Renew or Register" button.
- Login with a user ID and password.
- Select "Renew my PTIN" from the main menu.
Apply for a PTIN online
To apply online as a first-time applicant with IRS.gov/taxpros:
- Select the "Renew or Register" button.
- Select "Create an Account" and follow the prompts to get a temporary password.
- Login with the user ID and emailed temporary password and follow the steps.
- Select "Register for a PTIN" from the main menu.
Enrolled agent credential
The enrolled agent credential is an IRS certification for tax professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation and representation matters. Enrolled agents have unlimited rights to practice before the IRS, which allow them to represent any client on any tax matter.
Program for non-credentialed tax return preparers
The IRS encourages non-credentialed tax return preparers to take continuing education courses to increase their knowledge and improve their filing season readiness.
Non-credentialed tax return preparers who participate in the IRS Annual Filing Season Program get educational credits, and the IRS includes them in a directory of return preparers on the IRS website. Taxpayers can use the IRS directory to find tax return preparers in their area who have completed the program or hold professional credentials recognized by the IRS. The Annual Filing Season Program is voluntary for tax return prepares who aren't enrolled agents, attorneys or CPAs.