Low-Income Housing Units Nationwide May be Offered to Displaced Victims of Hurricanes Harvey, Irma and Other Recent Disasters

IR-2017-165, Sept. 28, 2017

WASHINGTON ― The Internal Revenue Service has provided temporary relief from certain requirements of the Internal Revenue Code to allow owners and operators of low-income housing projects located anywhere in the United States and its possessions to provide temporary emergency housing to individuals who are displaced by a major disaster from their principal residences, regardless of income.

This special relief detailed in Revenue Procedure 2014-49 and Revenue Procedure 2014-50 authorizes owners and operators, in conjunction with agencies and issuers, to disregard the income limits, transience rules and certain other restrictions that normally apply to low-income housing units when providing temporary emergency housing to displaced individuals. As a result, owners and operators can offer temporary emergency housing to displaced individuals who lived in a county or other local jurisdiction designated for individual assistance by the Federal Emergency Management Agency (FEMA). Currently, this includes parts of Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands, though FEMA may add other locations in the future. Upon approval, emergency housing can be provided for up to a year after the close of the month in which the major disaster was declared by the President.

This relief automatically applies as soon as the President declares a major disaster and FEMA designates any locality for individual or public assistance. For that reason, individuals affected by some other recent major disasters, including those affecting parts of Michigan, West Virginia and other localities, may also qualify for emergency housing relief. For a list of recent disasters, see the disaster relief page on

Although owners and operators of low-income housing projects are allowed to offer temporary housing to qualified disaster victims, they are not required to do so. For those who do, special rules apply, detailed in Revenue Procedure 2014-49 and Revenue Procedure 2014-50, available on Details on other hurricane-related tax relief are available at and  For information on government-wide relief efforts, visit or


Follow the IRS on Social Media
Subscribe to IRS Newswire

Leave a comment

Posted by on October 3, 2017 in Tax Relief


Driver License Info in Tax Software



Thanks to National Society of Accountants


Driver License Info in Tax Software May Not Be Required after All

Tax software used by tax professionals asks for client driver license numbers even though only two states – New York and Alabama – currently have state laws requiring such information to be provided on state tax returns. No federal law requires this information to be provided on federal tax returns.

When NSA made inquired how this information came to be included in this year’s version of the software, we were told it was included at the behest of the Federation of Tax Administrators, the trade group for the state tax administrators. It seems that FTA wanted the information so its members could use the drive license numbers as one indication of a valid return, even while making the argument it was just too difficult to enact state laws requiring such information to be provided.

During a meeting with other members of the Security Summit, we pointed out that most tax software packages ask for the driver license number and, if it is not provided, asks the preparer to check a box indicating that there is no driver license.  We made the point that our members do not want to sign a sign stating there is no driver license if the client does have one. We also stated there should not be a requirement to provide a license number merely because it is on the FTA wish list.

Apparently, the tax software is written so that the return will be processed even if the driver license information box is left blank. Check with your software provider to make sure. And, if you are preparing a New York or Alabama return, this does not apply to you.

Sanford Zinman
Tarrytown NY


Leave a comment

Posted by on February 4, 2017 in Tax Relief


Some refunds delayed as IRS battle against fraud intensifies

The Internal Revenue Service’s battle against fraud and identity theft is intensifying as the tax filing season opens, and some of the neediest taxpayers are getting caught in the middle.

The agency is barred from issuing refunds before Feb. 15 on any returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit. Congress mandated the delay to give the IRS more time to review returns to try to catch fraudulent ones before refunds are paid out.

In reality, taxpayers taking these credits probably will have to wait even longer to get their refunds — until the week of Feb. 27, the IRS says, because of weekends and the President’s Day holiday.

Dave DuVal, vice president of customer advocacy at, said the impact on these taxpayers could be tremendous. “They live paycheck to paycheck, and this is money they’re counting on,” he said.

Still, the attempt to reduce fraud “is a positive thing overall,” said Greg Rosica, tax partner at Ernst & Young.

The IRS will begin accepting returns on Jan. 23, and tax experts recommend that Americans continue to file their returns early, even with the refund delays.

“For this tax season, it’s more important than ever for taxpayers to plan ahead,” IRS Commissioner John Koskinen said in a statement.

This year’s filing deadline is Tuesday April 18, since the traditional April 15 date falls on a Saturday, and D.C. Emancipation Day is observed on April 17.

By Carole Feldman, The Associated Press

Leave a comment

Posted by on January 30, 2017 in Tax News


July 17—House passes bill with deep cuts to IRS funding.


On July 16, the House, by a vote of 228 to 195, passed H.R.5016, the “Financial Services and General Government Appropriations Act, 2015,” as amended. Initially, the bill had included $10.95 billion funding for IRS—a $341 million reduction from the 2014 fiscal year enacted level and $1.5 billion below the President’s budget request. Later amendments to the bill would cut more than $1.1 billion from IRS funding. The White House has indicated that the President would likely veto the bill.

Leave a comment

Posted by on July 21, 2014 in Tax Relief


New York State Works through Tax Refund Backlog

The New York State Department of Taxation and Finance outsourced the responsibility of refunding money to a new contractor this year and many taxpayers who filed paper-based returns still have not received their refunds.

After using Bank of America to process the paper refunds for 18 years, the state signed a $16 million contract with New York State Industries for the Disabled, a not-for-profit group that helps provide employment for thousands of disabled employees in work for state and local governments. However, there have been delays with processing some of the refunds by a subcontractor hired by NYSID known as SourceHOV, a Dallas-based company.

According to Geoff Gloak, a spokesman for the New York State Department of Taxation and Finance, 96 percent of the tax refunds have been sent out and the remaining refunds are being processed daily. He predicted they should all be “wrapped up” by early August.

“This is after 18 years with the prior contractor, Bank of America,” Gloak added. “They decided they were getting out of the business. There has been a transition period. We worked with the new contractor, and the new contractor implements new systems and processes.”

The New York State Department of Taxation and Finance said last week that so far, 5.95 million tax refunds have been issued this year representing $5.3 billion—a dollar-for-dollar increase of 3 percent over last year at this time.

By law, interest is paid on refunds that are issued after May 30 for timely filed returns. Interest is paid only on that part of the refund resulting from over-withholding. To prioritize delivery of the delayed paper refunds, the tax department is assisting the contractor in both speeding up the processing and providing quality assurance. Recovery of the department’s costs associated with this effort—including staff overtime and interest payments—is provided for in the contract, and will not come at additional taxpayer expense, the tax department noted.

“In New York State, you’re required to pay interest 45 days after the filing due date of April 15, so beginning May 31 we’re paying interest on refunds,” said Gloak. “The interest goes back to April 15, so interest payments over time are provided for in the contract and won’t come at taxpayer expense.”

This year, nearly 90 percent of New York State taxpayers filed their returns electronically, up from 87 percent last year and only 58 percent just five years ago. Since 2008, New Yorkers have saved more than $250 million in processing costs as a result of e-filing, according to the tax department.

Fred Slater, CPA, a member of the tax and accounting firm MS1040 LLC in New York City, expressed anger at the tax refund delays. “I call it the head in the sand approach,” he said. “I have all kinds of questions about how much information they were given to process it. In other words, you’re giving your private information to a third party. What were they given? The state is doing everything in its power to push people to efile, and they repeatedly contradict themselves on this, and force things. Not all of the returns are efile-able to start with, by their own system restrictions, and then they go through this process of pushing you to efile, but their system is not up to snuff.”

Albany, N.Y. (July 9, 2013)
By Michael Cohn

Leave a comment

Posted by on July 10, 2013 in Tax Relief


Bill Would Let EAs Promote Themselves Everywhere

Sen. Rob Portman, R-Ohio, and Rep. Charles Boustany, R-La., have introduced legislation aimed at allowing Enrolled Agents to present themselves as such and tout their credential wherever they practice.

This will “ensure that individuals, families, and businesses across the country are able to identify and access EAs,” the co-sponsors said in a statement.

The representatives said that their Enrolled Agents Credential Act or H.R. 2313 is aimed at those states that “prohibit Enrolled Agents from using their credential when representing taxpayers or advertising for potential clients. This bill would clarify that Enrolled Agents may use and display their credential when advertising their services and representing their clients.”

In statements, both Portman and Boustany stressed that access to EAs — who are certified by the U.S. Department of Treasury and have unlimited rights to represent taxpayers before the IRS — is increasingly essential as taxpayers struggle to comply with an “antiquated” and “outdated and complex” Tax Code.

“This bill is helpful because in the last year or so, the federal government has begun to promote the use of licensed tax return preparers like Enrolled Agents, CPAs and lawyers, and it’s important that Enrolled Agents be able to use their credential to distinguish themselves from unlicensed preparers,” added David Rothstein, project director at Policy Matters Ohio, in a statement on Boustany’s Web site.

“Congress and the IRS should do everything they can to encourage the professionalization of the tax industry,” added Michael Fioritto, president of the Ohio State Society of EAs, in the same statement. “By interfering with Enrolled Agents’ ability to advertise and brand themselves, a few states are hurting not only the Enrolled Agent profession but the consumers in those states who might utilize their services.”

The National Association of Enrolled Agents has long supported the “bipartisan” bill, and pointed out in an open letter to all EAs that Rep. Xavier Becerra, D-Calif., “has agreed to jump on board with Dr. Boustany and co-sponsor H.R. 2313. In addition, Representatives Tim Bishop, D-N.Y., and Delegate Eleanor Holmes Norton, D-D.C., are also original co-sponsors of H.R. 2313.”

“EAs in several states have been significantly limited in the use of their federal credential. The codification would level the playing field for Enrolled Agents in those states,” said NAEA president Betsey Buckingham.

“EAs, who have an unlimited right to prepare tax returns and to represent taxpayers in advocacy issues with IRS, believe it isn’t unreasonable to use their federally given designation,” added Robert Kerr, NAEA senior director of government relations. “The proposed legislation, which NAEA has been promoting for years, helps Enrolled Agents market themselves and to distinguish themselves from the legion of untested and unlicensed fly-by-night preparers.”

Unlike attorneys and CPAs, who are state-licensed and may or may not choose to specialize in taxes, all EAs specialize in taxation. There are some 47,000 EAs in the U.S.

“The legislation has been a priority of NAEA leadership, which has charged the GR team with doing everything it can to garner Congressional interest,” Buckingham wrote in her letter. She called the bill “simple — a one-pager and at no cost to taxpayers.”

She noted too that the organization has brought members to Washington to advocate for the bill, and her letter added tips on what EAs can do to voice their support to Congress.

Leave a comment

Posted by on June 18, 2013 in Tax Relief


IRS and States Swamped by Last-Minute Tax Filings

The Internal Revenue Service is struggling to respond to an onslaught of tax returns filed on April 15, which is delaying acknowledgements to both federal and state returns.

Due to the significant increase in federal and state submissions transmitted on April 15th, the length of time to create federal acknowledgments and make them available for retrieval is taking longer than expected,” the IRS said in an email to tax professionals Tuesday evening. “The IRS is closely monitoring the acknowledgment rates and is working to close the gap as a top priority.”

The IRS added that the majority of state tax returns are linked to the acceptance of the federal return, so the length of time it takes to make the state return available for state retrieval has also increased. It asked tax professionals not to re-transmit any tax returns if they have not yet received an acknowledgment.

“As the federal backlog decreases, the state submissions will then be ready for state pickup,” said the IRS. “In the interim, please do not retransmit any submissions awaiting acknowledgment if the IRS has issued a receipt. We thank you again for your patience and support.”

The IRS is working its way through the backlog. Anecdotally, Intuit sent back an acknowledgment Tuesday afternoon that the IRS had accepted a tax return that had been filed close to midnight on April 15 with TurboTax.

Washington, D.C. (April 17, 2013)
By Michael Cohn

Leave a comment

Posted by on April 22, 2013 in Tax News