IRS Announces Key Updates on September 7, 2024

Expansion of Direct File Program

The IRS has announced the expansion of its Direct File program for the 2025 tax filing season. This program, which allows taxpayers to file their taxes directly with the IRS for free, will now be available in twice as many states as last year’s pilot. Additionally, it will cover a wider range of tax situations, making it accessible to more taxpayers1.

Guidance on Long-Term, Part-Time Employees in 403(b) Plans

In collaboration with the Department of the Treasury, the IRS has issued new guidance addressing long-term, part-time employees in 403(b) retirement plans. This guidance, part of the SECURE 2.0 Act, will apply to 403(b) plans beginning in 2025. The aim is to provide clearer rules and support for part-time employees participating in these retirement plans1.

Disaster Relief for Wildfire Victims in Washington

The IRS has announced disaster tax relief for individuals and businesses affected by wildfires in the Confederated Tribes and Bands of the Yakama Nation in Washington state. This relief includes postponing various tax deadlines to February 3, 2025, providing much-needed support to those impacted by the wildfires1.

Support for Hurricane Helene Victims

In response to the devastation caused by Hurricane Helene, the IRS is providing extensive support. Over 500 IRS employees are assisting FEMA with disaster relief efforts, and IRS Criminal Investigation agents are involved in search and rescue operations. Additionally, the IRS is offering dyed diesel penalty relief and postponing various tax deadlines to May 1, 2025, for affected areas1.

Relief for Taxpayers Affected by Terrorist Attacks in Israel

The IRS is also extending tax relief to individuals and businesses affected by recent terrorist attacks in Israel. This includes postponing a wide range of deadlines for filing federal returns, making tax payments, and performing other time-sensitive tax-related actions until September 30, 20251.

These updates reflect the IRS’s ongoing efforts to support taxpayers through challenging times and ensure compliance with tax laws. Staying informed about these changes can help you take full advantage of the available relief and avoid potential penalties.

Would you like more details on any of these updates or assistance with your tax-related questions?

1: IRS News Releases for Current Month

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1irs.gov