August

Bogus "Self Employment Tax Credit" Scam Warning

Scammers have been spreading misinformation through ads and social media posts about a supposed Self Employment Tax Credit, which they claim people can use to get massive IRS refunds. In reality, no such credit even exists. The scammers charge fees to prepare tax returns, on which they actually file bogus claims for the specialized Credit for Sick and Family Leave, which was only available for 2020 and 2021.

In reality, only a small number of self-employed people who experienced very specific COVID-related circumstances qualify for the Credit for Sick and Family Leave. IRS personnel flag suspicious credit claims for investigation. In the end, people who get lured in by these scammers have to repay their tax refunds, with penalties and interest charges added. Meanwhile, the scammers disappear with the fees they collect to file false tax returns. Remember, if a tax credit or tax refund claim sounds too good to be true, it usually is.

Transferring a Clean Vehicle Credit May Increase Your Tax Benefit

Beginning in 2024, people who qualify for the Clean Vehicle Credit may transfer the credit to a registered dealership as a down payment, or in exchange for a discounted vehicle price. Vehicles eligible for the CVC include many fully electric cars and trucks (EVs), plug-in hybrids (PHEVs) and vehicles powered by fuel cells. Transferring a CVC to the vehicle seller will enable you to receive an immediate benefit from the credit, instead of having to wait to claim the credit on your 2024 tax return.

Some people will also receive a larger credit amount by transferring their CVCs. Since the CVC is not refundable, you cannot claim a credit amount on your tax return greater than the tax you owe. However, this restriction generally does not apply to transferred CVCs. Therefore, transferring your CVC may help you receive the maximum credit amount available. A tax professional can help you determine whether transferring a CVC to the vehicle seller would work to your advantage.

Upcoming Tax Deadlines

August
Day    
12    Social security, Medicare, and withheld income tax – File Form 941 for the second quarter of 2024. This due date applies only if you deposited the tax for the quarter timely, properly, and in full.
12    Employees Who Work for Tips – If you received $20 or more in tips during June, report them to your employer. You can use Form 4070.
15    Nonpayroll withholding – If the monthly deposit rule applies, deposit the tax for payments made in July.
15    Social security, Medicare, and withheld income tax – If the monthly deposit rule applies, deposit the tax for payments made in July.

September
Day    
10    Employees Who Work for Tips – If you received $20 or more in tips during August, report them to your employer. You can use Form 4070.
16    Nonpayroll withholding – If the monthly deposit rule applies, deposit the tax for payments made in August.
16    Social security, Medicare, and withheld income tax – If the monthly deposit rule applies, deposit the tax for payments made in August.
16    Corporations – Deposit the third installment of estimated income tax for 2024.
16    S Corporations – File a 2023 calendar year income tax return (Form 1120-S) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension of time to file the return. Otherwise, see S corporations under March 15, earlier. Provide each shareholder with a copy of their final or amended Schedule K-1 (Form 1120-S) or substitute Schedule K-1 (Form 1120-S) and, if applicable, Schedule K-3 (Form 1120-S) or substitute Schedule K-3 (Form 1120-S).
16    Partnerships – File a 2023 calendar year return (Form 1065). This due date applies only if you timely requested an automatic 6-month extension. Otherwise, see Partnerships under March 15, earlier. Provide each partner with a copy of their final or amended Schedule K-1 (Form 1065) or substitute Schedule K-1 (Form 1065) and, if applicable, Schedule K-3 (Form 1065) or substitute Schedule K-3 (Form 1065).
16    Individuals – Make a payment of your 2024 estimated tax if you’re not paying your income tax for the year through withholding (or won’t pay in enough tax that way). Use Form 1040-ES. This is the third installment date for estimated tax in 2024. For more information, see Pub. 505.

October
Day    
10    Employees Who Work for Tips – If you received $20 or more in tips during October, report them to your employer. You can use Form 4070.
15    Nonpayroll withholding – If the monthly deposit rule applies, deposit the tax for payments made in September.
15    Social security, Medicare, and withheld income tax – If the monthly deposit rule applies, deposit the tax for payments made in September.
15    Corporations – File a 2023 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension. Otherwise, see Corporations under April 15, earlier.
15    Individuals – If you have an automatic 6-month extension to file your income tax return for 2023, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due.
31    Federal unemployment (FUTA) tax – Deposit the tax owed through September if more than $500.
31    Certain small employers – Deposit any undeposited tax if your tax liability is $2,500 or more for 2024 but less than $2,500 for the third quarter.
31    Social security, Medicare, and withheld income tax – File Form 941 for the third quarter of 2024. Deposit or pay any undeposited tax under the accuracy of deposits rule. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter timely, properly, and in full, you have until November 12 to file the return.

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