News & Updates

Beginning Jan. 1, 2024, businesses that file 10 or more information returns must e-file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. For those with fewer information returns, e-filing Form 8300 is still optional. To file electronically Form 8300, a business must set up an account with the Financial Crimes Enforcement Network's BSA E-Filing System. The IRS will ensure the privacy and security of all taxpayer data.

Businesses that receive more than $10,000 in cash must report transactions to the U.S. government. Information reported on Form 8300 can help uncover tax evaders, criminals profiting from the drug trade and others committing potentially criminal conduct.

The requirement for e-filing Form 8300 applies to businesses that are required to e-file certain other information returns such as Form 1099 series and Form W-2.

Waivers and exemptions

If filing electronically would cause undue hardship, a business may request a waiver by submitting Form 8508, Application for a Waiver from Electronic Filing of Information ReturnsPDF. If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Form 8300s for the rest of the calendar year. A business may not request a waiver from filing electronically only Form 8300. If a waiver is given, the business must include the word "waiver" on the center top of each Form 8300 when submitting a paper filed return.

If using the e-file technology conflicts with a filer's religious beliefs, they are automatically exempt from filing electronically. The filer must include the words "religious exemption" on the top of each Form 8300 when submitting the paper return.

E-filing is free and secure

Many businesses have already found the free and secure e-filing system to be a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. They get an email that confirms when the IRS receives the form after they e-file. Businesses can batch e-file their reports, and this is especially helpful to those required to file many forms.

For more information, businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at bsaefilinghelp@fincen.gov. For more information about the BSA E-Filing System, businesses can submit a technical support request at Self Service Help Ticket. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. ET.

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Imitation may be the sincerest form of flattery, but when scammers pose as the IRS it means trouble for taxpayers. Identity thieves may contact taxpayers through fraudulent calls, emails, texts or social media messages pretending to be the IRS. Here are tips to help taxpayers know when the IRS is contacting them.

Letters and notices

A letter or notice is usually the first way the IRS will contact a taxpayer. When a taxpayer receives a suspicious letter or notice, they can check to see if it's really the IRS:

• Log in to their secure IRS Online Account to see if a copy of the notice or letter is in their file.
• Review common IRS letters and notices at the Understanding Your IRS Notice or Letter page on IRS.gov.
• Contact IRS customer service directly to authenticate it, if they weren't able to authenticate in their online account.
• Verify that any collection notice from a private collection agency has the same Taxpayer Authentication Number as the Notice CP40 the taxpayer received from the IRS. Taxpayers can visit Private Debt Collection Frequently Asked Questions to learn more about verifying a private collection agency.

Phone calls

After first mailing a notice or letter to a taxpayer, IRS agents may call to confirm an appointment or discuss items for a scheduled audit. Taxpayers should know that:

• The IRS doesn't leave pre-recorded, urgent or threatening messages. Scammers will tell victims that if they do not call back, a warrant will be issued for their arrest. Anyone making threats is a scammer.
• Private collection agencies contracted by the IRS may call taxpayers to collect certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice.
• The IRS and its authorized private collection agencies will never ask a taxpayer to pay using any form of pre-paid card, store or online gift card. Taxpayers can review the IRS payments page at IRS.gov/payments for all legitimate ways to make a payment.

Email, text and social media

The IRS doesn't first contact taxpayers by email, text message or social media channels to request personal or financial information. Some common electronic scams that thieves use are:

• Sending phishing emails to taxpayers.
• Posing as an IRS social media account to contact taxpayers about a fake bill or refund.
• Texting taxpayers about fake "tax credits" or "stimulus payments."

These messages will often direct taxpayers to click fraudulent links they claim are IRS websites or other online tools. Again, the IRS will mail a letter or notice before calling or emailing, and it will never contact a taxpayer by social media or text message.

In person visits

The IRS recently ended most unannounced visits to taxpayers by agency revenue officers. Ending these unannounced visits to taxpayers will improve overall safety for taxpayers and IRS employees.

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Starting a new business can seem overwhelming for new entrepreneurs or even seasoned professionals. The IRS has resources to help new business owners understand the tax responsibilities of running a business.

Here are a few things any entrepreneur needs to do when starting their business.

Choose a business structure

The form of business determines which income tax return a business needs to file. The most common business structures are:

• Sole proprietorship: An unincorporated business owned by an individual. There's no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared between two or more members.
• Corporation: Also known as a C corporation. It's a separate entity owned by shareholders.
• S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited Liability Company: A business structure allowed by state statute. If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return as a sole proprietorship.

Choose a tax year

A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:

• Calendar year: 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year: 12 consecutive months ending on the last day of any month except December.

If an individual files their first tax return using the calendar tax year and later begins business as a sole proprietor, becomes a partner in a partnership, or becomes a shareholder in an S corporation, they must continue to use a calendar tax year unless they get IRS approval to change it or meet one of the exceptions listed in the instructions to Form 1128, Application To Adopt, Change, or Retain a Tax Year.

Apply for an Employer Identification Number

An EIN is also called a Federal Tax Identification Number. It's used to identify a business. Most businesses need one of these numbers, but some don't. For example, a sole proprietor without employees who doesn't file any excise or pension plan tax returns doesn't need an EIN. The EIN checklist on IRS.gov can help business owners know if they need an EIN.

It's important for a business with an EIN to keep the business mailing address, location and responsible party up to date. EIN holders should report changes in the responsible party to the IRS within 60 days.

Have all employees complete these forms:

• I-9, Employment Eligibility Verification U.S. Citizenship and Immigration ServicesPDF
• W-4, Employee's Withholding Certificate

Pay business taxes

The form of business determines what taxes should be paid and how to pay them.

Visit the state's website

Prospective business owners should visit their state's website for info about state tax requirements.

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Many military spouses run businesses or do gig work, and whether it's a side hustle or a major operation, the IRS has tax resources, tools and information to help them keep things running smoothly.

Tax resources on IRS.gov

• Small Business and Self-Employed Tax Center – Available at IRS.gov/smallbiz, this page has resources for taxpayers who file Form 1040 or 1040-SR, Schedules C, E, F or Form 2106, as well as small businesses with assets under $10 million.
  
• Gig Economy Tax Center –The gig economy, also called sharing economy or access economy, is activity where people earn income providing on-demand work, services or goods. Often, it's through a digital platform like an app or website. The Gig Economy Tax Center at IRS.gov/gigeconomy has information for gig workers trying to manage their taxes.
  
• Tax Information for Businesses – Tax information, tools and resources for businesses and self-employed individuals are available at IRS.gov/businesses.
  
• Employer Identification Number – Generally, businesses need an EIN, even if they don't have employees. An EIN – also known as a Federal Tax Identification Number – identifies a business entity. Businesses can apply online at IRS.gov/ein.

Tools to stay on top of tax deadlines and payments

• Online Tax Calendar – The Online Tax Calendar at IRS.gov/taxcalendar, shows due dates and actions for each month. Business owners can see all events or filter them by monthly depositor, semi-weekly depositor, excise or general event types. They can also have calendar reminders sent to their email or import the calendar into their calendar program.
  
• Electronic Federal Tax Payment System – Businesses can pay their federal taxes online or by phone with EFTPS, a free tax payment system, by visiting IRS.gov/eftps.

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Organizations applying for tax-exempt status must be organized and operated exclusively for any of these purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals.

Organizations that want to apply for recognition of tax-exempt status under IRC 501(c)(3) will complete and file a Form 1023-series application.

The application process on IRS.gov includes a step-by-step guide explaining how to apply for tax-exempt status.

Here are some key things to know about this process.

• Form 1023-series applications for recognition of exemption must be submitted electronically online at Pay.gov. The application must be complete and include the user fee.
• Some types of organizations don't need to apply for Section 501(c)(3) status to be tax exempt. These include churches and their integrated auxiliaries, and public charities with annual gross receipts normally no more than $5,000.
• Every tax-exempt organization needs an employer identification number (EIN), even if they don't have any employees. An EIN is a nine-digit number the IRS assigns for tax filing and reporting purposes. An organization must include their EIN on the application. Organizations can apply for an EIN online.
• The effective date of an organization's tax-exempt status depends on their approved Form 1023. If they submit this form within 27 months after the month they legally formed, the effective date of the organization's exempt status is the legal date of its formation. If an organization doesn't submit this form within those 27 months, the effective date of its exempt status is the date it files Form 1023.
• An organization that qualifies for tax-exempt status under IRC 501(c)(3) will be classified as a private foundation unless the organization meets the requirements to be treated as a public charity.
• A charitable organization must make certain documents available to the public. These include its approved application for recognition of exemption with all supporting documents and its last three annual information returns. See Publication 557, Tax Exempt Status For Your Organization for additional information on public inspection requirements.

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