Author Archives: c07890220

First Thursday Minutes – August 6, 2020

Webinars

August 13, 2020: Understanding the e-Services Transcript Delivery System

Time: 1:00 p.m. (ET), 12:00 p.m. (CT), 11:00 a.m. (MDT), 10:00 a.m. (MST), 10:00 a.m. (PT), 7:00 a.m. (Hawaii)

Register here: https://www.webcaster4.com/Webcast/Page/1148/36244

Please check Webinars for Tax Practitioners for new webinars.

Discussion items

Karen shared this message: IRS statement on interest payments. If your client gets a refund that’s larger than expected, it might be due to interest paid on the refund. The IRS is paying interest on refunds issued more than 45 days after April 15, so it could be a large number of taxpayers. The taxpayer will get a letter telling them they got interest, and a 1099-INT if it’s more than $10.

Alan shared: Form 1099-NEC, Nonemployee Compensation is new for 2020. It was separated out from Form 1099-MISC because the 1099 for NEC is due on January 31st. The instructions for Form 1099-NEC and Form 1099-MISC are combined.

Alan shared information about backup withholding: How to report nonemployee compensation and backup withholding. IRS.gov has a lot more information on Backup Withholding.

Kathleen alerted us that the IRS is sending letters to those experiencing a delay with advance payment of employer credits. Taxpayers may receive Letter 6312 or 6313.

Kathleen asked for your help in making sure that everyone who is entitled to EIP gets it, especially people who have low income or no income. We are asking you to use your personal contacts to share this message, and we have tools to help you on this page: Economic Impact Payments: Partner and Promotional Materials. See “Reaching People Who Are Eligible for a Payment and Don’t Normally File a Tax Return”. If you volunteer for, or donate money to, a food shelf or homeless agency, would you be willing to call or email someone there to tell them about EIP? Thank you!

Doug provided an update on the People First Initiative: Taxpayers need to resume payments by July 15. If people stopped making payments from April 1 to July 15, they need to resume payments.

Doug also shared information on Working Virtually: Protecting Tax Data at Home and at Work.

This is a 6 part series and we’ve released 3 messages so far.

Data thefts are up for 2020. This could be because more people are working from home and they may not have enough security protocols in place.

The group was asked if they are interested in a webinar by Brian Wozniak, a Stakeholder Liaison who specializes in data thefts. The group expressed an interest in this type of webinar. We’ll see what we can do!

In the meantime, the IRS has a webinar on the IRS Video Portal:

  • This webinar will Outline the “Security Six” basic protections, discuss how to create a written data security plan, recognize the signs of client data theft, and include the testimony of 2 tax professionals who were victims of a data breach.

State Departments of Revenue

Minnesota – Mark Krause

Home page: https://www.revenue.state.mn.us

2020 draft forms have been released and are on our website. https://www.revenue.state.mn.us/draft-forms-and-instructions

Register for Our Tax Professional Webinar on 2020 Minnesota Tax Form Updates. This is the annual tax pro webinar where we discuss forms changes. September 15th at 9:30 am

We issued guidance on July 28th on amending 2017 & 2018 returns due to conformity if we have not yet adjusted the return for the taxpayer. https://content.govdelivery.com/accounts/MNREV/bulletins/297c249

Iowa – Kurt Konek

Home page: https://tax.iowa.gov/

  • Protests
    • Working on 2017 and prior
      • Dropped from 179 to 39
    • 2018 and after approximately 600
  • Audits
    • Audit team is getting back in the field with appropriate safety protocols
    • Audits closed
      • 2019 = 1466
      • 2020 = 1419
    • Largest $
      • MTC
      • Motor Vehicle Fuel
      • ReAudit
      • Contract Labor
      • Investigative
  • Fraud – 405 fraud cases identified
  • Telephone
    • 2019 calls answered in 11 minutes, 2020 under 1 minute
  • Forms
    • Updating 2020 forms
  • Rules
    • Working on rules overhaul

North Dakota – Liliya Montgomery

ND homepage https://www.nd.gov/tax/

For tax pros: https://www.nd.gov/tax/user/tax-professionals

Missouri – Kim Gorman

MO homepage https://dor.mo.gov/

Nebraska – Fran Krejci

NE homepage https://revenue.nebraska.gov/

Wisconsin – Nate Weber

WI homepage https://www.revenue.wi.gov

Illinois – Vicki Clark

IL homepage https://www.illinois.gov

Kansas

KS homepage https://www.ksrevenue.org/

Your issues and questions

e-Services and Transcript Delivery System

We hope you can attend the webinar on August 13.

In the meantime, here are some resources for e-services and “TDS”:

  • e-help Desk for Tax Professionals The people who staff the e-Services phone line should be able to help you with problems you may have when you are signing up for e-Services, or problems you experience once you’re signed up.
  • If not, contact your local SL. We may be able to put you in touch with an e-Services specialist who can help you fix thorny issues that have not been resolved through normal channels. Keep track of who you talked to at the e-Help desk for e-services, the date you called, and the e-Help tracking number.

Dmitriy commented that he liked the “old system” where you could submit a 2848 electronically and get access to transcripts right away. All of us are hoping that the IRS creates a new electronic system for POAs. This may happen because of the Taxpayer First Act. Many tax professionals submitted a request for this. We’ll keep you posted.

Ruth commented: “Four people in our office have received letter 5880C from IRS advising that they were accepted as Authorized IRS e-file providers. Why is IRS sending this out now? No recent changes were made to their applications. Usually this type of letter would be mailed out in December or January.” Alan will elevate this issue using the IMRS process.

Refund Delays:

Ron asked about taxpayers who mailed in their returns in early March. When will they get their refund?

Steff asked about taxpayers who e-filed in March who have not received their refund. What’s the timeline for these returns?

Mark asked if it’s a good idea to e-file a return that was paper filed and hasn’t been processed yet.

Velma said she had two clients whose returns had ID theft issues. They did not get any letter from the IRS. Velma called PPS and they were able to help her and the clients so that the return could be processed.

Advice offered by SLs:

Anything that was mailed to the IRS will take “quite a while” to get processed. If it normally takes 8 weeks to process a paper tax return, add 3 months to that for the time period that the campuses were shut down, and add some time to that for the time it takes the IRS to go through the backlog of mail. It’s impossible to tell when something mailed to the campus will get processed. We apologize for the delay.

Most e-filed returns sail through without a hitch. But some e-filed returns need to be reviewed by a person. It might be:

  1. Possible ID theft
  2. Wage verification
  3. Reviewing credits such as EITC, AOTC, etc.
  4. A myriad of other reasons

Any return that needs to be reviewed will take “a while” to get worked. We encourage you to keep checking the IRS Operations and Services page. It was last updated August 3.

It says “Any tax return which requires review, whether it was filed electronically or on paper, may also take longer because many review processes cannot be done virtually.”

Is it a good idea to e-file a return that was paper filed and is waiting to be processed? No. It’s likely to cause even more delays when we see a duplicate return. Also, the IRS may treat it as a possible ID Theft tax return.

To call PPS or not to call?

We tell you to be patient and wait for the IRS to process paper returns or e-filed returns that need review. And yet some tax pros have called PPS and gotten help for their client’s returns. So, should you call PPS or not?

SL is looking at a small sample of tax returns that were e-filed to see why they have not been processed yet. So far, we have not found a common theme. We hope to have more to share with you next month.

We hesitate to tell tax pros to call PPS for every client that has not received their refund (if they e-filed). On the other hand, if you call PPS and they are able to help your client, report that back to your local SL and we’ll tell you next month what we’ve learned.

EIP Update

Kit asked what to do about people who have not gotten their EIP, especially when you know they qualify for it.

The IRS sent out 160 million payments. The IRS estimates that we got 98% of them right. But 2% of 160 million is 3.2 million.

Here’s some advice for what to do:

It depends if they got Notice 1444 or not. If they did NOT get Notice 1444, then they will get EIP when they file their 2020 return. See EIP FAQ 27 “I think the amount of my Economic Impact Payment is incorrect. What can I do? (updated June 10, 2020)”.

If they got Notice 1444, they can do a payment trace. But only if they got Notice 1444. See FAQ 47 and 48 here.

Q47. I received Notice 1444 in the mail saying my payment was issued, but I have not received my Payment. What should I do? (updated June 19, 2020)

Q48. How do I request a Payment Trace on my Economic Impact Payment? (added June 19, 2020)

FYI: The IRS takes “one pass” at EIP. If we used 2018 to determine EIP, we don’t issue more money when we process 2019. The answer to EIP FAQ 27 says: “The IRS is not able to correct or issue additional payments at this time and will provide further details on IRS.gov on the action people may need to take in the future.”

Carmen asked “When is a good time for people to call the EIP line? I have had a couple clients try and call it and they only got a recording.”

Answer: Any time you call the IRS, it’s best to call early in the day, late in the week. For Economic Impact Payment questions, call 800-919-9835.

If the assistors are busy talking to other taxpayers, your client won’t even get the menu option to speak to a representative. At one point, we heard there were 3,500 assistors getting over 1 million calls per day.

The people who are answering the EIP line don’t have access to the IRS computer system where they could look up the taxpayer’s account. They are assisting people by using the FAQs on IRS.gov:

  • Try the Get My Payment Sometimes this produces helpful results. Sometimes not.

Barbara asked “ Have you heard if there will be a look up site for the amounts people received from the EIP?”

Answer: We hope so! The IRS has heard the request of many tax pros who have asked the IRS to create a Lookup Tool for the EIP, just like we did for the stimulus payment in 2008. We will keep you posted.

Online accounts

Carmen asked “Are they looking to change some of the questions to accommodate people who don’t have a credit card – home loan – or some of the other documents?”

Answer: No. The IRS had a system in place a few years ago where we verified identity by asking “out of wallet” questions. Hackers penetrated that system. The new system (Secure Access) uses “two factor authentication”. Asking for a loan number, credit card number, etc, is part of that process. The IRS realizes that two factor authentication means that not everyone will be able to create an online account. However, it’s necessary to make sure the system is secure.

View Your Account Information

Secure Access: How to Register for Certain Online Self-Help Tools

Offers in Compromise

Carmen asked “Is the OIC department back up and running? I have tried calling and just got a recording.”

The generic answer is that the OIC units were suspended just like other units at the campuses. OIC workers were not able to safely work at the campus for three months.

Campus employees are returning to work at the campus. The staffing levels were about 25% in late July. The goal is to have 100% staffing in August. But there’s still a backlog of work.

There are two places to look for updates on the OIC units:

1) IRS Operations and Services

Scroll down to Other IRS operations

Click on the link for: SBSE All-Collection Guidance Memo

July 10, 2020, Memorandum For All Collection Executives

FROM: Frederick W. Schindler

SUBJECT: Expiration of People First Initiative Suspension of Certain Collection Activities

There’s information on OICs on the bottom of page 2 and the top of page 3.

2) People First Initiative – Providing Relief to Taxpayers

Click on Offer in Compromise: People First Initiative FAQs: Offer in Compromise

When can 1040X be e-filed?

The IRS announced in May that you should be able to e-file amended returns “later this summer”. Barbara and Velma heard it should be available by August 17. When there’s an official announcement, we’ll share it asap!

Next Call

The next call will be on September 3, 2020. We’ll send out the WebEx link closer to that date.

Meetings are one hour long. Come when you can, leave when you must.

Thank you to everyone who attended. We appreciate your time and input.

IRS NEWS FOR TAX PROFESSIONALS July 2020

 ►UPCOMING WEBINARS

Please check Webinars for Tax Practitioners or Webinars for Small Businesses for updates.

►HOT TOPICS 

Keep Economic Impact Payment notice with other tax records

  • People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received.

Taxpayers should be aware of myths about tax refunds

  • Now that many taxpayers have filed their federal tax returns electronically and the IRS is back to processing paper tax returns sent by mail, they’re eager for details about their refund. When it comes to refunds, there are several common myths.

Deadline is October 15 to use Non-Filers tool on IRS.gov

  • To help people who aren’t normally required to file a tax return, the IRS created the Non-Filers tool, available in English and Spanish.
  • The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles. This includes couples and individuals who are homeless.
  • People can qualify, even if they do not have earned income or work.
  • The Non-Filers tool will remain available through the summer and fall.
  • Anyone who registers by October 15 will receive their payment by the end of the year.
  • To help reach these non-filers, over the next few months the IRS will be conducting an extensive outreach and education effort to partner groups who serve homeless individuals, underserved communities, limited English households and others.
  • As part of this effort, the agency has created an Economic Impact Payment partner page, and materials are available in multiple languages.
  • Anyone who already filed either a 2018 or 2019 return does not qualify to use this tool.
  • The IRS cautions that some people who need to file a tax return have been mistakenly using the Non-Filers tool to try to get an Economic Impact Payment.

►IRS OPERATIONS AND SERVICES

IRS Operations During COVID-19: Mission-critical functions continue

This page is updated as IRS operations and services change. Please check back often.

Updated July 2, 2020.

  • Processing Delays for Paper Tax Returns
  • Taxpayer Assistance Centers
  • Practitioner Priority Service and Centralized Authorization File processing operations
  • Taxpayer Correspondence
  • Balance Due Notice Mailings – Due Dates Extended to Help Taxpayers

SCAM ALERT

IRS warns against COVID-19 fraud; other financial schemes

  • The IRS reminds taxpayers to guard against tax fraud and other related financial scams related to COVID-19.
  • In the last few months, the IRS Criminal Investigation division (CI) has seen a variety of Economic Impact Payment scams and other financial schemes looking to take advantage of unsuspecting taxpayers. CI continues to work with law enforcement agencies domestically and abroad to educate taxpayers about these scams and investigate the criminals perpetrating them during this challenging time.

►IN CASE YOU MISSED IT

Taxpayers will soon be able to file amended tax returns electronically

  • Later this summer, for the first time taxpayers will be able to file their Form 1040-X, Amended U.S. Individual Income Tax Return electronically.
  • Making this form electronically fileable has been a long-time goal for the IRS. It will greatly benefit the tax professional community and taxpayers.

Flowchart helps employers understand new tax credits

  • The IRS recently issued Publication 5419, New Employer Tax Credits in English and Spanish to help employers understand that tax credits available to them due to the coronavirus pandemic. The one-page document breaks down the details of the Employer Retention Credit and the credits for paid sick and family leave in easy-to-follow charts. Using the document, employers can quickly determine whether they are eligible for the credits, the amount of the credits and which wages apply to the credits.

Deferral of employment tax deposits and payments through December 31, 2020

  • The CARES Act allows employers to defer the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes. These FAQs address specific issues related to the deferral of deposit and payment of these employment taxes.

►NEWS FOR INDIVIDUALS

IRS announces rollover relief for required minimum distributions from retirement accounts that were waived under the CARES Act

  • Anyone who already took a required minimum distribution in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020.

Relief for taxpayers affected by COVID-19 who take distributions or loans from retirement plans

  • The IRS released Notice 2020-50 to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans. This includes expanding the categories of individuals eligible for these types of distributions and loans (referred to as “qualified individuals”) and providing helpful guidance and examples on how qualified individuals will reflect the tax treatment of these distributions and loans on their federal income tax filings.

IRS provides relief to retirement plan participants to sign elections remotely

  • The IRS provided temporary administrative relief to help certain retirement plan participants or beneficiaries who need to make participant elections by allowing flexibility for remote signatures.
  • The change relates to signatures of the individual making the election to be witnessed in the physical presence of a plan representative or notary public, including a spousal consent (“the physical presence requirement”).

IRS outlines changes to health care spending available under CARES Act

  • The IRS has advised that new rules under the CARES Act provide flexibility for health care spending that may be helpful in the current environment where more people may need at-home services due to measures to fight the coronavirus.

IRS provides answers about Coronavirus related tax relief for Qualified Opportunity Funds and investors

  • The IRS provided guidance for Qualified Opportunity Funds and their investors in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic.
  • Notice 2020-39 (PDF) answers questions regarding relief from certain requirements under section 1400Z-2 of the Internal Revenue Code (Code) and the implementing regulations. Additionally, the IRS has updated the Qualified Opportunity Zones frequently asked questions.

Proposed regulations address direct primary care arrangements and health care sharing ministry memberships

  • The IRS released proposed regulations addressing the treatment of certain medical care arrangements under section 213 of the Internal Revenue Code.

NEWS FOR EMPLOYERS

Who qualifies for which new employer tax credit?

  • Many businesses affected by COVID-19 qualify for tax relief though credits or deferrals.
    • Credits for paid sick and family leave
    • Employee Retention Credit
    • Deferral of employment tax deposits and payments.

IRS provides guidance on employer leave-based donation programs that aid victims of the COVID-19 pandemic

  • The IRS recently provided guidance for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic.
  • Notice 2020-46 provides that cash payments employers make to charitable organizations that provide relief to victims of the COVID-19 pandemic in exchange for sick, vacation or personal leave which their employees forgo will not be treated as compensation. Similarly, the employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer.

NEWS FOR BUSINESSES 

Reminder: Business payment P.O. Boxes in Cincinnati and Hartford close July 1

  • July 1 marks the closing of several business paymentO. Boxes (also known as Lockbox addresses), in the Cincinnati and Hartford areas. Payments will be returned to sender. There will be no forwarding service. Where to File on IRS.gov has current payment addresses. Publication 3891, Lockbox Addresses for 2020, has more information.

Tax Capital Reporting Requirement – Notice 2020-43

  • Notice 2020-43 seeks public comment on a proposed requirement for partnerships to use only one of two alternative methods to satisfy the Tax Capital Reporting Requirement with respect to partnership taxable years that end on or after December 31, 2020. Written or electronic comments must be received by August 4th, 2020.

Aviation Excise Tax Holiday under the CARES Act

  • The CARES Act, enacted on March 27, 2020, provides an excise tax holiday that suspends certain aviation excise taxes. The excise tax holiday began on March 28, 2020 and will end on December 31, 2020. During the excise tax holiday, no tax is imposed on kerosene used in commercial aviation, and normally taxed pursuant to I.R.C. §§ 4041(c) or 4081.

Notice 2020-48 – Sport Fishing Equipment and Bows and Arrows Excise Tax

  • Notice 2020-48 provides expanded disaster relief, in the form of postponing until October 31, 2020, certain Federal excise tax filing and payment deadlines, and associated interest, penalties, and additions to tax, for taxpayers who owe a federal excise tax for sales of sport fishing or archery equipment for the second quarter of 2020. The notice further provides the specific procedures to follow for taxpayers who wish to take advantage of the postponement. It will appear in IRB 2020-29 dated July 13, 2020.

►PEOPLE FIRST INITIATIVE

IRS’ People First Initiative provides compliance relief

  • The IRS unveiled the People First Initiative on March 25, 2020. It is an unprecedented effort to temporarily scale back many collection and enforcement activities by the IRS during the COVID-19 global pandemic.
  • The purpose of the People First Initiative is to immediately ease the burden on people facing tax issues as much as possible, to enable them to better focus on the well-being of themselves and others during this unprecedented situation for the nation. It is not permanent, but it will stay in effect until it is deemed to no longer be needed.
  • In consultation with its partners, the IRS will continue to review the People First Initiative and modify or expand it as needed during this situation.

ECONOMIC IMPACT PAYMENTS

Economic Impact Payments: Partner and Promotional Materials

  • SEE THE NEW SECTION: Reaching People Who Are Eligible for a Payment and Don’t Normally File a Tax Return

Recent News Releases

►YOUR PRACTICE, YOUR CLIENTS

IRS Nationwide Tax Forums: Seminar dates, times now available

  • The IRS released the seminar schedule for the 2020 IRS Nationwide Tax Forums and reminded interested tax professionals that registration information is available.
  • Held online this year, the Nationwide Tax Forums will begin on July 21 and continue through August 20 with live-streamed webinars broadcast on Tuesdays, Wednesdays and Thursdays. Registration enables attendees to participate in all of the webinars and earn up to 30 continuing education credits for one price.

Processing of paper Forms 94x and Forms 8655 has resumed

  • Processing of paper employment tax returns, Forms 941, 943, 944, 945, and Form 8655, Reporting Agent Authorizations has resumed. The Ogden and Kansas City campuses have recently re-opened (but not yet at full staffing levels), and they are working on the backlog and processing new submissions. Even if a Form 8655 has not yet been processed, a reporting agent can still e-file and electronically deposit on behalf of clients, and those processes have been continuously open.

Additional signature requirement for Reporting Agents who sign/submit Forms 7200 on behalf of clients

  • There is a new requirement for Reporting Agents (RAs) who sign and submit Form 7200, Advance Payment of Employer Credits Due to COVID-19. This new requirement applies to reporting agents that have the authority to sign and file 94x employment tax returns via a Form 8655, Reporting Agent Authorization.
  • The new requirement is that, in the box “Printed Title,” the signer must include the RA’s company name or name of business as it appeared on line 9 of the Form 8655. As before, the signer must be the principal or responsible official listed on the RA’s e-file application.
  • For the complete requirements, see Employee Retention Credit Q/A-88.

►TCJA (Tax Cuts and Jobs Act)

IRS issues guidance on the elimination of the deduction of qualified transportation fringe benefit expenses

  • The IRS issued proposed regulations that provide guidance for the deduction of qualified transportation fringe and commuting expenses.
  • The Tax Cuts and Jobs Act (TCJA) does not allow deductions for qualified transportation fringe expenses and does not allow deductions for certain expenses of transportation and commuting between an employee’s residence and place of employment.

►TAX EXEMPT ORGANIZATIONS 

►e-NEWS SUBSCRIPTIONS and SOCIAL MEDIA

e-News Subscriptions

  • The IRS offers several e-News subscriptions on a variety of tax topics. Click above for information about subscribing.

IRS Social Media

  • The IRS uses social media tools to share the latest information on tax changes, scam alerts, initiatives, products and services. Connect with the IRS through social media tools.

HOW TO SHARE IRS INFO ON SOCIAL MEDIA

When you find an article you want to share, click on the “Share” link. Like so:

  • Scroll to the bottom of any page on IRS.gov. Look for “Share / Print”
  • Click on Share
  • You can share on Facebook, Twitter, or Linkedin.

Balance Due Notice Mailings: Due Dates Extended to Help Taxpayers

Due to the COVID-19 pandemic, the IRS was unable to mail some previously printed balance due notices as a result of office closures. As IRS operations continue to reopen, these notices will be delivered to taxpayers in the next few weeks. Given the time it would take to reprogram IRS systems, and generate updated notices, some of the notices taxpayers will receive have due dates that have already passed. However, each notice will include an insert confirming that the due dates printed on the notices have been extended.

 Extended Payment Due Dates: The payment due dates printed on the notices have been extended, as described in the insert. The new payment due date will be either July 10, 2020, or July 15, 2020, depending upon the type of tax return and original due date. Taxpayers should be sure to read the insert included with the notice that explains the delay and provides the correct payment due dates.

 Taxpayers who have questions about their balance due should visit the website listed or call the number provided on their notice; however, keep in mind that phone lines remain extremely busy as the IRS resumes operations.

IMPORTANT! YOU HAVE MORE TIME TO MAKE YOUR PAYMENT

Due to the challenges of the ongoing Coronavirus Disease 2019 (COVID-19) Pandemic, we were unable to mail the notice included in this envelope on the date listed on the notice.  In addition, the date on the notice by which you are asked to pay may have already passed by the time you receive it.  Do not be concerned about these dates. 

 You have additional time to pay the amounts shown on your notice to avoid incurring additional liabilities.

A.    If the amount due on your notice is for an income, gift, estate, or Form 990-PF or Form 4720 excise tax return that was due on or after April 1, 2020 and before July 15, 2020, (such as a Form 1040 normally due April 15, 2020), the Treasury Department and the IRS postponed the deadline for making your payment to July 15, 2020. If the amount due (as provided on your notice) is not paid by July 15, 2020, penalty and interest will begin to accrue after July 15, 2020. To avoid penalty and interest, pay the amount due by July 15, 2020.

B.     If the amount due on your notice is for a return that was due before April 1, 2020, or an employment or excise tax return due on or after April 1, 2020, you will not be charged additional penalty or interest if you pay the amount due (provided on your notice) by July 10, 2020.

If you have questions about the enclosed notice, visit the website listed there or contact us at the number listed there.

For more information, visit www.irs.gov/coronavirus or contact us at the number listed in the enclosed notice.

Here is a listing of each notice and its title involved with the mailing

CP101 Math Error, Balance Due of $5 or More on Form 940
CP102 Math Error, Balance Due of $5 or More on Forms 941, 941SS, 943, 944, 944SS, 945
CP103 Math Error, Balance Due – Form CT-1
CP104 Math Error, Balance Due of $5 or More – Form 720
CP105 Math Error, Balance Due of $5 or More – Forms 11C, 2290, 706, 709, 730
CP107 Math Error, Balance Due of $5 or More – Form 1042
CP11 Math Error on Return – Balance Due
CP126 Math Error, Balance Due or Overpayment Less Than $1 on Forms 990PF, 4720, 5227
CP132 Math Error, Balance Due on Forms 990C, 990T,1041, 1120, 8804
CP134B Federal Tax Deposit(s) (FTD) Discrepancy – Balance Due
CP14 Balance Due, No Math Error
CP141L We Charged a Penalty Under Internal Revenue Code Section 6652(c) – Form Filed Late
CP15 Civil Penalty Notice
CP15B Civil Penalty Notice for Trust Fund Recovery Penalty
CP15H Shared Responsibility Payment Due
CP161 No Math Error, Balance Due (Except Form 1065)
CP162 Untimely Filing Penalty – Partnership
CP165 Penalty Assessed for Dishonored Check
CP210 Examination (Audit) or Data Processing Tax Adjustment – Balance Due, Overpayment, or Even Balance
CP215 Civil Penalty – 500 and 600 Series
CP21A Data Processing Adjustment Notice, Balance Due of
CP220 Examination (Audit) or Data Processing Tax Adjustment – Balance Due, Overpayment, or Even Balance
CP220J Employer Shared Responsibility Payment (ESRP) 4980H Adjustment – Balance Due, Even Balance or Overpayment Notice
CP22A Data Processing Adjustment Notice, Balance Due of
CP23 Estimated Tax Credits Discrepancy – We Changed Your Return to Match Your Credits or Payments Posted to Your Account – Balance Due
CP230 Combined Annual Wage Reporting – CAWR/DP Tax Adjustment Amended Return Filed
CP233J 4980H Adjustment bal due, even bal or overpayment Notice (ESRP)
CP23T Estimated Tax Discrepancy, Balance Due of $5 or More
CP240 Combined Annual Wage Reporting – CAWR/DP Discrepancy Tax Adjustment
CP260 An Erroneous Payment Previously Applied to Your Account Has Been Reversed – Balance Due
CP283 Penalty Charged on Your Form 5500 – Late or Incomplete Form
CP47A Tax Assessed- Notification of the Requested Credit Elect/Refund Being Applied to Section 965 Tax Liability
CP47B Tax Assessed- Notification of a Credit Elect/Refund Being Applied to Section 965 Tax Liability
CP47C Tax Assessed- Including Section 965 Tax Liability
CP51A We’ve Calculated Your Income Tax For You – Balance Due
CP60 We Removed a payment Erroneously Applied to Your Account. – Balance Due
CP711 Spanish Math Error – Balance Due – Error en la Planilla – Saldo Adeudado
CP714 Spanish Balance Due – No Math Error – Planilla Radicada – Saldo Adeudado
CP721A Data Processing Adjustment Notice, Balance Due (Spanish) – Cambios a su Planilla – Saldo Adeudado
CP722A Spanish Data Processing Adjustment Notice, Balance Due of $5 or more – Cambios a su Planilla – Saldo Adeudado
CP802 Spanish BMF Math Error, Balance Due of $5 or More on Forms 941PR, 943PR – Hemos Hecho Cambios a su Planilla Porque Creemos que hay un Error de Cálculo
CP834B Federal Tax Deposit(s) (FTD) Discrepancy – Balance Due (Spanish)
CP865 Spanish Penalty for Dishonored Check on Forms 94XPR FTD
CP94 Criminal Restitution Final Demand Notice

 

 

First Thursday IMRS Call

Dear Tax Pro,

You are invited to join us on May 7 for our “First Thursday IMRS Call”. The purpose of the call is to share information with tax professionals, and to hear your questions and concerns.

9:00 to 10:00 a.m. Central time.  8:00 to 9:00 a.m. Mountain time. If you’re not able to attend, feel free to send someone else from your organization.

 We’ll continue to share what we know about Coronavirus Tax Relief, EIP, and other provisions in the CARES Act. BRING YOUR QUESTIONS that you can’t find answers to on IRS.govFeel free to submit questions in advance to help us prepare.

Join the web portion of the meeting FIRST. Click this link to join:

https://meetings-external.irs.gov/orion/joinmeeting.do?MTID=9266cf7a6d13940c8dbfe02ccd60c497

 Join the audio portion after you are on the web.  There are 3 audio options: 

  1. BEST METHOD: Connect by phone. Select “Call Me”.  Then enter your phone number. Your phone will ring LIKE MAGIC! If you are calling in, please use this method! This helps us AND you during the meeting.
  1. If you have speakers and a microphone on your computer (or a headset), and a good internet connection, you may select “Call Using Computer”
  1. Last choice (only if you cannot get 1 or 2 to work): Call the number below and enter the access code and then be sure to your attendee number.

855-865-6792 (IRS WebEx External)

304-579-6720 (Alternate Number)

Access Code 994 323 498

Not sure if your computer has the minimum system requirements? Join a test meeting or https://www.webex.com/test-meeting.html

If you experience problems accessing WebEx, it might be because of the browser you are using. Try another browser, such as Chrome or Internet Explorer. (Note: Microsoft Edge is not supported.)

Thank you for your interest in this meeting. If you have questions please let me know.

Alan Gregerson

Internal Revenue Service

Senior Stakeholder Liaison

Bloomington, MN 55425

Alan.J.Gregerson@irs.gov

Important Messages from the IRS on the Economic Stimulus Payments

These are important messages on the Economic Stimulus Payments, and especially number 5 and 6 issue attached above.  If they want to get the additional $500 payment if they have dependents, they need to act by April 22, 2020.  If you are able to share that number 5 and 6 issue above let Alan Gregerson know (contact information below).

Subject:

  1. Economic Income Payment: What you Need to Know link;
  2. .Get My Payment link;
  3. SSA/SSI payments
  4. Veteran payments
  5. SSA, RRB recipients with eligible children need to act by Wednesday to quickly add money to their automatic Economic Impact Payment; IRS asks for help in the “Plus $500 Push” which IR is 2020-76 which is attached above.
  6. Economic Stimulus Payments when receiving Social Security and Railroad Retirement Benefits and dependents.  This is the most important message of the group of links.

Alan Gregerson

Senior Stakeholder Liaison

Bloomington, MN 55425

Alan.J.Gregerson@irs.gov

 

IRS NEWS FOR EVERYONE – April 2020

►UPCOMING WEBINARS

We expect to have a webinar in April, but the date is not set yet. Please check Webinars for Tax Practitioners or Webinars for Small Businesses for updates.

►CORONAVIRUS TAX RELIEF

Coronavirus Tax Relief

  • This is the main page on IRS.gov with information about Coronavirus Tax Relief.
  • Check this page frequently for new information.
  • It has News Releases, Statements, Frequently Asked Questions, Guidance, Tax Help, Social Media and Other Resources.

FAQs for Filing and Payment Deadlines

  • What you’ll find here:
  • Filing and payment extended to 7-15-2020 for many types of tax returns.
  • Which types of tax returns do NOT get an extended deadline?
  • Information on Individual Retirement Accounts (IRAs), Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (MSAs)

TWO FAQs to highlight

  • Estimated Tax Payments

Q16. The Notice postpones the deadline for first quarter 2020 estimated income tax payments due on April 15, 2020. What about second quarter estimated tax payments due on June 15? Have they been postponed as well?

A16. No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020.

  • File 2016 Form 1040 by 4-15-2020

Q22. I want to file a claim for a refund for 2016, which must be filed by April 15, 2020 to be timely. Does this relief give me more time to claim my 2016 refund?

A22. No, the relief provided for filing Federal income tax returns applies only to Federal income tax returns for the 2019 taxable year. The Notice does not extend relief to any filings or payments for taxable year 2016.

Taxpayer Assistance Centers Temporarily Closed

  • In response to the national emergency, the IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice.
  • The IRS is continuing to process tax returns, issue refunds and help taxpayers to the greatest extent possible. Taxpayers are highly encouraged to go to IRS.gov for help and online tools.

What if I was planning to drop off a 2016 tax return at a TAC?

People First Initiative; IRS temporarily adjusts, suspends key compliance program

  • This page has information on existing and new installment agreements, Offers in Compromise, liens and levies. More details will be forthcoming.

IRS Mission-critical functions continue

  • As the COVID-19 (coronavirus) outbreak continues, the IRS is taking multiple steps to protect our employees, America’s taxpayers and our partners. Although we are curtailing some operations during this period, the IRS is continuing with mission-critical functions to support the nation, and that includes accepting tax returns and sending refunds.
  • Refund filers: File as soon you can
  • Don’t forget state tax returns; different deadlines may apply
  • Taxpayer correspondence. While able to receive mail, the IRS will be responding to paper correspondence only to a very limited degree during this period. Taxpayers who mail correspondence to the IRS during this period should expect to wait longer than usual for a response. Even after normal operations resume as it will take the IRS time to work through any correspondence backlog.
  • See page above for “Compliance activity” and “Statute of limitations issues.”
  • Taxpayer Advocate Service. Currently, TAS remains open to receive phone calls at the local phone numbers but has suspended walk-in services in their offices and their toll-free centralized number is unavailable until further notice. Please visit taxpayeradvocate.irs.gov to locate your local office phone number.

CARES ACT – ECONOMIC IMPACT PAYMENTS

SCAM ALERTS

  • If you get a call, text, or email saying they need information in order to send you the economic impact payment, it’s a scam!
  • The BBB has excellent info on SCAMS related to Coronavirus. Please check it out!
  • The SBA has programs to help small business owners. Scammers are taking advantage of this.
  • A business owner received a scam email after applying for an SBA Disaster Loan with a false loan number and asking for IRS tax info to complete the loan application.
  • Another small business owner received an email stating she needed to provide her credit card number and $97 to complete the loan application.
  • Social Security Scam related to Coronavirus
  • The Social Security Office of the Inspector General has received reports that Social Security beneficiaries have received letters stating their payments will be suspended or discontinued unless they call a phone number referenced in the letter. Scammers may then mislead beneficiaries into providing personal information or payment via retail gift cards, wire transfers, internet currency, or by mailing cash, to maintain regular benefit payments during this period of COVID-19 office closures. Social Security will not suspend or discontinue benefits because their offices are closed.

►EMPLOYEE RETENTION CREDIT

IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

  • The Treasury Department and the IRS launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

FAQs: Employee Retention Credit under the CARES Act

  • The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit).

FAMILIES FIRST CORONAVIRUS RESPONSE ACT

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

  • The Families First Coronavirus Relief Act (FFCRA) requires certain employers to pay sick or family leave wages to employees who are unable to work or telework due to certain circumstances related to COVID-19. Employers are entitled to a refundable tax credit for the required leave paid, up to specified limits. [See FAQs]. The same wages cannot be counted for both credits.
  • Two sets of FAQs:
  1. FAQs from the U.S. Department of Labor, Wage and Hour Division:

DOL Families First Coronavirus Response Act: Questions and Answers.

  1. FAQs from the IRS:

COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

EMPLOYERS

See FAQ #6 on this page:

  • Does the relief provided in the Notice apply to payroll or excise taxes?
  • No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes. (See exception in Notice 2020-22.)

Relief from Penalty for Failure to Deposit Employment Taxes

  • Notice 2020-22 provides a waiver of additions to tax for failure to make a deposit of taxes for employers required to pay qualified sick leave wages and qualified family leave wages mandated by the Families First Coronavirus Response Act (Families First Act) and qualified health plan expenses allocable to these wages.
  • This notice also provides a waiver of additions to tax for failure to make a deposit of taxes for certain employers subject to a full or partial closure order due to the coronavirus disease 2019 (COVID-19) or experiencing a statutorily specified decline in business under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

►ASSISTANCE FOR BUSINESSES

The SBA can help!

Two SBA emergency capital programs are available today and more will be coming soon:

  1. Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at sba.gov/disaster.
  1. Economic Injury Disaster Loan Advance for up to $10,000: The form to apply is part of the economic injury disaster loan application. If approved, these funds can be used for payroll and other operating expenses and will be forgiven.

Soon the SBA and Treasury Department will launch the new Paycheck Protection Program to help keep employees on payroll and small businesses operating. Additional information about this program will be shared in the coming days.

To get the most up-to-date information as things develop, visit www.sba.gov/disaster and subscribe to our e-newsletter via www.sba.gov/updates.

Also, follow us on Twitter at https://twitter.com/sbagov

For detailed information on SBA programs for the coronavirus, please visit www.sba.gov/coronavirus

Find your local SBA office here.

SMALL BUSINESS DEVELOPMENT CENTERS can help!

  • SBDC Business Advisors are available to help you sort through everything and make informed choices for your business. We cover the entire nation and our business consulting services are free and confidential. With nearly 1,000 centers across the nation, there is an SBDC near you. Find your local SBDC here.

SCORE can help!

  • For over 50 years, SCORE has served as America’s premier source of free business mentoring and education.
  • As a resource partner of the U.S. Small Business Administration (SBA), SCORE has helped more than 11 million entrepreneurs through mentoring, workshops and educational resources since 1964.
  • Find your local SCORE chapter here.

Also check with your local Chamber of Commerce or local business development organization. They are eager to help you!

►TAX PROFESSIONALS

Practitioner Priority Service

  • The Practitioner Priority Service line is closed. Expect delays for Centralized Authorization File (CAF) number authorizations. Please look for help on IRS.gov. Normal operations will resume as soon as possible.

Incorrect routing or account number for direct deposit of refund

  • The IRS assumes no responsibility for tax preparer or taxpayer error.
  • Depending on the type of error, the IRS will try to do a direct deposit. If it does not go through, the IRS will issue a paper check. Refunds will be delayed.
  • It says you can call 800-829-1040, but those lines aren’t fully staffed right now. Besides, calling doesn’t work when the return was e-filed. Calling only works when the return is mailed and hasn’t posted to our system yet.

”REGULAR” IDENTITY THEFT

  • The IRS continues to process tax returns. If we think the return might have come from a fraudster, we will send your client either Letter 4883C or Letter 5071C. Please reply to this letter!

►e-NEWS SUBSCRIPTIONS and SOCIAL MEDIA

e-News Subscriptions

  • The IRS offers several e-News subscriptions on a variety of tax topics. Click above for information about subscribing.

IRS Social Media

  • The IRS uses social media tools to share the latest information on tax changes, scam alerts, initiatives, products and services. Connect with the IRS through social media tools.

HOW TO SHARE IRS INFO ON SOCIAL MEDIA

When you find an article you want to share, click on the “Share” link. Like so:

  • Scroll to the bottom of any page on IRS.gov. Look for “Share / Print”
  • Click on Share
  • You can share on Facebook, Twitter, or Linkedin.

First Thursday Minutes  – April 2, 2020

First Thursday Minutes  – April 2, 2020

Webinars

We expect to have webinars in April. Please check Webinars for Tax Practitioners every few days.

Discussion items

Coronavirus Tax Relief

  • This is the main page on IRS.gov with information about Coronavirus Tax Relief.
  • Check this page frequently for new information.
  • It has News Releases, Statements, Frequently Asked Questions, Guidance, Tax Help, Social Media and Other Resources.

FAQs for Filing and Payment Deadlines

What you’ll find here:

  • Filing and payment extended to 7-15-2020 for many types of tax returns.
  • Which types of tax returns do NOT get an extended deadline?
  • Information on Individual Retirement Accounts (IRAs), Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (MSAs)

People First Initiative; IRS temporarily adjusts, suspends key compliance program

  • This page has information on existing and new installment agreements, Offers in Compromise, liens and levies.
  • Existing Installment Agreements payments between April 1 and July 15 are suspended.
  • Field Collection Activities of liens and levies are suspended from 4/1 to 7/15.
  • Earned Income Tax Credit and Wage Review have from 4/1 to 7/15 to respond to IRS.
  • IRS information sent to State Department on passports revocation will be suspended between April 1 and July 15.
  • PPS has closed at this time and will reopen when it can.

IRS Mission-critical functions continue

What you’ll find here:

  • Haven’t filed yet? If you normally file a tax return, speed up your tax return, economic impact payment: Use e-file with direct deposit. Updated April 1, 2020
  • The IRS strongly urges those who haven’t filed yet and would normally file to use e-file with direct deposit. Most people can file electronically at no cost with IRS Free File. This will speed up the delivery of your payment directly to your bank account. Due to limited IRS staff levels in IRS processing centers as a result of COVID-19, the economic impact payment for those who file paper tax returns may be delayed.
  • As a reminder, gov/coronavirus will soon provide information instructing people who typically do not file a tax return like low-income taxpayers, some veterans and individuals with disabilities who are otherwise not required to file a tax return on next steps to get a payment. But no action is needed at this time for these groups.

Digital Signatures

IRS to Accept Email, Digital Signatures

To help taxpayers and the tax professional community during this COVID-19 period, effective immediately, the IRS will begin temporarily accepting images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collection of tax liability.

In addition, the IRS is allowing IRS employees to accept documents via email and to transmit documents to taxpayers using SecureZip or other established secured messaging systems.

“The IRS is continuing to monitor methods to lessen the burden on taxpayers and professionals during this period,” said Sunita Lough, IRS Deputy Commissioner for Services and Enforcement. “We greatly appreciate the patience, support and valuable comments we continue to receive from the tax professional community as we move forward.”

This effort, described in an internal IRS memo [not included here], is in response to the Coronavirus situation maximizing the ability of the IRS to execute on mission-critical duties where employees, taxpayers and their representatives are working from alternate, remote locations outside their office.

The taxpayer or representative must include a statement, either in the form of an attached cover letter or within the body of the email, saying to the effect: “The attached [name of document] includes [name of taxpayer]’s valid signature and the taxpayer intends to transmit the attached document to the IRS.” The choice to transmit documents electronically is solely that of the taxpayer.

The limited categories of documents included in the scope of this effort include extensions of statute of limitations on assessment or collection, waivers of statutory notices of deficiency and consents to assessment, agreements to specific tax matters or tax liabilities (closing agreements), and any other statement or form needing the signature of a taxpayer or representative traditionally collected by IRS personnel outside of standard filing procedures (for example, a case specific Power of Attorney).

The IRS is continuing to review standards for e-signing other documents and invites suggestions and comments as it pursues additional efforts designed to lessen the burden on taxpayers and professionals during this period.

Employee Retention Credit

IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

  • The Treasury Department and the IRS launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

FAQs: Employee Retention Credit under the CARES Act

  • The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit).

Families First Coronavirus Response Act (FFCRA)

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

  • The Families First Coronavirus Relief Act (FFCRA) requires certain employers to pay sick or family leave wages to employees who are unable to work or telework due to certain circumstances related to COVID-19. Employers are entitled to a refundable tax credit for the required leave paid, up to specified limits. [See FAQs]. The same wages cannot be counted for both credits.
  • Two sets of FAQs:
  1. FAQs from the U.S. Department of Labor, Wage and Hour Division:

DOL Families First Coronavirus Response Act: Questions and Answers.

  1. FAQs from the IRS:

COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

Employers

See FAQ #6 on this page:

  • Does the relief provided in the Notice apply to payroll or excise taxes?
  • No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes. (See exception in Notice 2020-22.)

Taxpayer Assistance Centers Closed

  • In response to the national emergency, the IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice.
  • The IRS is continuing to process tax returns, issue refunds and help taxpayers to the greatest extent possible.

Economic impact payments

  • The term we’re using is Economic Impact Payment. It’s also been called the stimulus payment. It’s called the Recovery Rebate in the legislation. It’s all the same thing.
  • The IRS and Treasury are working on FAQs. They should be out next week. We are using all the questions you have sent in to determine what to address in the FAQs.

State Departments of Revenue

This page provide the homepage for EVERY State Tax Agency. https://www.taxadmin.org/state-tax-agencies

Minnesota – Mark Krause

MN website:

https://www.revenue.state.mn.us/minnesota-department-revenue

https://www.revenue.state.mn.us/our-response-covid-19

https://www.revenue.state.mn.us/tax-professionals

  • Individual tax filing and payment due date is July 15th for tax year 2019. Penalties and interest are waived. This includes any estimated tax payments for tax year 2019.
  • The extension does not apply to estimated tax payments for tax year 2020. The due dates remain the same.
  • There was no change to business tax return due dates although these taxpayers can get an automatic extension.
  • If you have questions send to taxpro.outreach@state.mn.us or call 651-556-6606. If you have questions, I’m sure others have the same question and we are working on an FAQ for our website.

Iowa – Kurt Konek

IA website:

https://tax.iowa.gov/

https://tax.iowa.gov/COVID-19

https://tax.iowa.gov/tax-professionals

Questions? Contact Kurt Konek, Policy Director, Individual Income Tax, kurt.konek@iowa.gov.

North Dakota – Liliya Montgomery

ND website

https://www.nd.gov/tax/

https://www.nd.gov/tax/covid-19-tax-guidance/

https://www.nd.gov/tax/user/tax-professionals

Questions? Contact Liliya Montgomery, lmontgomery@nd.gov

Missouri – Laura Wallendorf

MO website

https://dor.mo.gov/

https://dor.mo.gov/news/newsitem/uuid/ad40f685-6b65-4df0-b376-c473bd50261e

Here are the highlights:

  • Individual and corporate income tax filing deadline extended to July 15, 2020.
  • Income tax payment deadlines for individual and corporate income returns with a due date of April 15, 2020 are extended until July 15, 2020.
    • This payment relief applies to all individual income tax returns, income tax returns filed by C Corporations, and income tax returns filed by trusts or estates. The is an automatic relief, no action needs to be taken by filers.
    • This relief also applies to individuals and corporations with estimated tax payments for tax year 2020 due on April 15, 2020.
    • Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. Individuals and corporations that file their return or request an extension of time to file by July 15, 2020 will automatically avoid interest and penalties on the tax paid by July 15.
  • Valid MO driver licenses (Class A, B, C, E, F and M), nondriver licenses and noncommercial instruction permits with original expiration dates of March 1, 2020 through April 30, 2020, have been granted an automatic 60-day extension.
    • The extension does not apply to document holders whose lawful status end date is the same as the expiration date.
    • The approved extension does not waive the mandatory retesting requirement for persons who have allowed their license to expire for more than 184 days.
    • Individuals who were provided notice to complete additional testing as part of a medical review program requirement may be granted an additional 60 days to comply with such requirements.
  • Vehicle owners with license plates expiring in the months of March and April have been granted an automatic 2 month extension and will be able to continue operating their vehicles on MO roadways without penalty.
  • The time frame in which a vehicle safety and emission inspection is valid for the March and April license plate expirations will also be extended an additional 60 days.
  • For waiver of late registration penalty and extension of the safety and emission inspection time frame, the vehicle owner must visit a license office.
  • Applicants for title will not be assessed a late title penalty when visiting a license office. This waiver continues through April 30, 2020

To get answers 24/7, go to the Department’s website and get help from DORA, the Department’s virtual assistant chatbot. DORA is programmed to respond to common tax, motor vehicle and driver license questions. To chat with DORA, click on DOR CHAT on the lower right hand corner of the home page.

Nebraska – Derek Forgey for Fran Krejci

NE website:

https://revenue.nebraska.gov/

https://governor.nebraska.gov/press/gov-ricketts-announces-extended-tax-deadline-overviews-state%E2%80%99s-continuity-plans

The March 23, 2020 media release from Governor Ricketts provided the information shared in the meeting today. We are working on frequently asked questions (FAQs) to post on our website and the FAQs should be available early next week on the Nebraska Department of Revenue website. Questions may be sent to me at fran.krejci@nebraska.gov. Fran Krejci, Revenue Tax Specialist Sr., Policy.

Kansas

KS website:

https://www.ksrevenue.org/

Information provided after the meeting:

The Department of Revenue has issued the following new tax notices:

Notice 20-02 Waiver of Penalty and Interest for Estimated Tax Payments for Individual and Corporate Income Taxes and Privilege Tax

Notice 20-01 Changes to Filing and Payment Due Dates for Homestead or Property Tax Relief Refund Claims and Individual, Fiduciary and Corporate Income Tax, and Privilege Tax

Illinois – Vicki Clark

IL website:

https://www2.illinois.gov/rev/Pages/default.aspx

https://www2.illinois.gov/rev/Pages/Taxpayer-Resources-during-COVID-19-(Coronavirus)-Outbreak.aspx

https://www2.illinois.gov/rev/taxprofessionals/Pages/default.aspx

Illinois Department of Illinois has extended the due date from April 15 to July 15 for individuals, trusts and corporations. Estimates are still due on 4/15 and 6/15.

If tax professionals have questions they can access the department’s website tax.illinois.gov and if they still have questions under contact us there is a list of email addresses based on tax type.

Questions for Illinois Department of Revenue:

  • How is Illinois going to treat extension payments – as paid on 4/15 or 7/15?
  • For IL, I heard that additional guidance was going to be posted regarding the estimates and the application of the July extension payment to estimated payments. Is that the case? Also that additional guidance regarding Q1 and Q2 calculation?
  • Has the IL Replacement Tax Payment also been extended under the automatic relief?
  • Similar question here, is the IL partnership replacement tax also extended to 7/15?
  • IL-1041 Replacement Tax also extended? Or just the income tax?

Wisconsin – Nate Weber

WI website:

https://www.revenue.wi.gov/Pages/home.aspx

https://www.revenue.wi.gov/Pages/News/2020/wi-covid-19.aspx

Your issues and questions

Stakeholder Liaison Local Contacts

Stakeholder Liaison establishes relationships with practitioner and industry organizations representing small business and self-employed taxpayers. We provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. We also elevate issues that affect tax administration. To establish a relationship with us or report an issue, use this list to find a contact in your state.

Highlighting this FAQ about ESTIMATED TAX PENALTY:

Q24. I failed to make the required installments of estimated tax in the required amounts during 2019 for my 2019 taxable year. Does this relief apply to an estimated tax penalty for 2019?

A24. No, the relief does not change the estimated tax requirements or estimated tax penalty for 2019. Relief from the penalty may be available under the normal rules. See Form 2210 (for individuals) or Form 2220 (for corporations) and the instructions for either form for details.

Here are the questions you raised today. These have been added to IMRS. The IRS is working on getting answers.

Do people with a SEP-IRA or SIMPLE-IRA have more time to contribute? FAQ 17 is not clear on this.

Husband and wife divorce in 2019. Neither taxpayer has filed a tax return for 2019 – so the IRS does not know about the divorce. Husband kept the bank account that was used for the 2018 direct deposit. Based on the facts – (assuming they were under the phase-out threshold in 2018) it would appear that the IRS will deposit $2,400 into the ex-husband’s bank account. What does the ex-wife need to do in order to receive her portion ($1,200) of the stimulus payment?

Divorced parents claim a child every-other-year as a dependent on their respective tax returns. Mom filed her 2019 tax return and claimed her daughter. Dad has not filed his 2019 tax return, but he did file his 2018 tax return – claiming his daughter for that tax year. Will the IRS pay the $500 to each parent?

How about college grads from spring 19, claimed on 2019 parent’s return, but now emancipated. Seems only fair that they will get it, but cannot imagine how the IRS would figure this out.

Would a recently widowed taxpayer who filed married joint in 2018 receive the $2400 or only the $1200?

If the dependent on the parents’ tax return is over 18 but a full-time student, is he/she going to get $1,200 or $500?

Questions regarding the payments: What about the children over the age of 17 or the college students that are being claimed as dependent on the parent’s returns but filed a return to get their federal withholding back?

Is it correct that all parents will receive the $500 per child regardless if the parents are over the limit for receiving a payment for themselves?

For the economic payment. SSA-1099 and RRB-1099 recipients now do not need to file. Is there any news for SSI, SSDI, non-taxable veterans pay recipients, or taxpayers who get other kinds of “welfare” benefits?

Will IRS have a way to know if a person died and not send refund out to them? i.e. person died in 2019 but no 2019 return filed yet. Or will a person who died in 2018 or 2019 get the economic impact payment anyway?

CUT OFF DATE TO FILE 2019 and have it count for EIP: Can we still file 2019 returns and have those be used for the payment instead of 2018?

Will the economic impact payments be taxable on the 2020 tax return?

How will the economic impact payments be reconciled on the 2020 return?

For stimulus payments, what happens if bank account on IRS records is no longer valid, i.e., money is deposited in wrong account?

FAQ 10 states that informational forms do not receive the extension to July 15. How does this impact Form 3520? Form 3520 is an international form related to foreign trusts and gifts or inheritances from foreign persons. It’s typically extended with Form 1040 (doesn’t have its own extension) but is a separate filing. It must be mailed in separate from the 1040. Late filing penalties are $10,000.

Do you know if elections are also extended? For example, if a client had a 1031 fall through do you know if they can get an extension.

Is the FBAR delayed to 7/15 or 10/15?

Questions regarding FAMILIES FIRST CORONAVIRUS RESPONSE ACT And EMPLOYEE RETENTION CREDIT. We have requested answers.

So, if they are out due to school or day care being shut down, are we required to pay the full 12 weeks as mandatory sick pay at the 2/3 pay?

Is it correct that you can only use the credit if you do NOT utilize the SBA loan? (I was told on another non-IRS webinar that you can only apply for the tax credit or the business loan, not both.)

The first two weeks is under the sick pay provisions, but there are an additional 10 weeks that may need to be provided under the Emergency Family and Medical Leave Expansion Act provisions (EFMLEA).

Are S-Corps with only one employee being the owner eligible for the Employee Retention Credit? Also would a Partnership that has one owner working (no one else on payroll) but the partner is receiving Guaranteed payments can they utilize the Employee Retention Credit?

Questions we have answers to now:

  1. How often during the day is the IRS Coronavirus Tax Relief updated?

A: It’s updated as needed, once a day is common.

  1. To confirm, if a taxpayer needs additional time to file and pay beyond July 15, 2020 and files Form 4868, the extension is to 10/15/2020 to file and pay? A: See FAQ 12.
  1. If you set up a direct debit for a taxpayer with an installment agreement, how can they defer the payment during the relief period? A: See Installment Agreement Direct Debit Frequently Asked Questions

Next Call

The next call will be on May 7, 2020. We’ll send out the WebEx link closer to that date

Meetings are one hour long. Come when you can, leave when you must.

Thank you to everyone who attended. We appreciate your time and input!

Taxpayer First Act Planning Placemat

These ideas came from Enrolled Agents who are members of the Minnesota Society of Enrolled Agents.

These ideas were discussed during a face-to-face meeting on January 2, 2020.

COMPREHENSIVE TAXPAYER EXPERIENCE STRATEGY

How do we think more holistically about our “customers” and their entire experience with the IRS (e.g. services, enforcement, other interactions)?

What are some key barriers to receiving service that taxpayers and/or taxpayers encounter? Please provide possible solutions / improvements for these problems.

What are some ways the IRS can improve the communications channels it uses to connect with tax practitioners / tax professionals?

The theme of the following suggestions is “how to make tax season more bearable for tax professionals and/or taxpayers who do their own returns”, which should improve accuracy and taxpayer compliance.

Go back to Form 1040 on one sheet, both sides. “Get rid of Schedules 1, 2, and 3. This was a gimmick to convince people that they can file their taxes on a postcard. No one is buying it. The new format is a nightmare and a waste of paper for tax professionals and taxpayers.”

Require all issuers of Form W-2 to use the same format. Tax professional software has the capacity to scan the W-2 and automatically “drop in” the information. Having a consistent format would make that more efficient.

Require the same format for 1099 statements issued by investment firms.  It’s difficult to read and understand the information on a statement that contains Form 1099 INT, DIV, and B, when every company does it differently.

Require partnerships and S-Corporations to have a fiscal year end of September 30. That way the returns would be due on December 15.  The partners and shareholders would have their K-1’s earlier.  Right now, the period between March 15 and April 15 is a nightmare for tax professionals.  Some partnerships and S-Corps actually do file by March 15, and some 1040 filers want or need to file by April 15. There’s too much pressure to get it a lot done between March 15 and April 15.

In many ways, the tax season is now all year round. Tax pros are crazy-busy from January to April. It does not slow down in the summer like it used to. It picks up in September and October because they are doing returns on extension.  In November and December, they are gearing up for next year and getting CE credits. There’s no break.  Maybe there’s no easy solution for this, but one idea is to extend the deadline to May 15 or May 30. This may give them time to do 1040’s that have K-1’s from 1065 or 1120-S.

Add a box or code on Form 1099-R for QCDs.  QCDs are a permanent part of the law now. The population is aging and looking for ways to give money away.  The number of QCDs will increase. Tax pros say that no matter what they do to get good info from the clients about QCDs (so they don’t fail to report them, or report an incorrect dollar amount), and no matter what they do to report QCDs correctly on the return, many of their clients inevitably get a CP-2000. A box or code for QCDs on Form 1099-R does require the IRS to spend time and money. Tax pros feel the time and money on the front end is worth it to all parties because time and money would be saved on the back end.

(End of “how to make tax season more bearable”)

Allow Form 1040-X to be e-filed.

Allow Direct Deposit for refunds on Form 1040-X.

Use PTIN renewal system to require PTIN holders to get e-News for Tax Professionals. The EAs feel that some tax pros take their profession seriously, and work very hard to stay up to date.  Other tax preparers do not.  The EAs realize that “you can lead a horse to water but you can’t make him drink”.  However, requiring tax pros to get e-News might make more of them read it, and learn from it.  PTIN holders should be automatically signed up to get it, and have to unsubscribe to not get it.  This is similar to what many companies do when they automatically sign up new employees to be in the 401(k) program, and they have to opt out to stop contributing. Once tax pros are getting e-News, they might find it’s helpful.

DRAFT FORMS: Allow tax pros to sign up to receive a notification when a draft form is released. This would allow them to comment on draft forms in time.

Attitude of IRS agents. Several EAs commented that IRS agents need to adopt a more cooperative attitude. Some EAs feel like the IRS agents assume the EA is working against the tax system, when really the EA is trying to fix a problem so the taxpayer pays the correct amount of tax, just like the IRS mission statement says.  They want IRS agents to remember that the IRS and the EAs/POAs are on the same team.  They should at least assume that’s the case until the EA/POA shows them otherwise.  “Innocent until proven guilty” in the courts.  For the IRS, it should be “assume the POA knows their stuff and is trying to get the right amount of tax paid” until the POA says something that makes the IRS agent think the POA is up to no good (as a small number are).

Attitude of IRS agents, part 2. Immediately after the comments stated above, another practitioner spoke up. She is from a country where the government can’t be trusted at all, and government agents are not helpful, or they are actually harmful. Sometimes physically harmful!  So this EA said “IRS agents are the kindest people!”  In comparison to where she came from, IRS agents are the best.  (It’s always good to have another perspective!)

Attitude of IRS agents, part 3:  POAs and taxpayers who call IRS agents should have the opportunity to leave feedback at the end of the call.  This is done in private industry, so why not the IRS? The IRS system should allow the caller to decide if they want to leave feedback when the call is done, not before the caller is connected to an IRS agent, because at that time they don’t know how the call is going to go.

Develop a system for practitioners where we can track the progress of an issue that is being worked.  We understand that it takes time to work issues (CP-2000’s, correspondence audits, etc), due to complexity of the tax law and lack of IRS staffing.  It’s the norm for it to take 6 to 12 months to get an issue resolved. Having a system where we can see that the IRS got our letter and is working on it would be helpful. Having an expected date where the IRS will contact the POA would be helpful. We could be certain that it’s being worked on, instead of wondering what’s happening, or being worried that nothing is happening. A system like this would reduce calls to PPS.

Hold collection letters until all returns and payments processed. If a taxpayer has many years of unfiled returns, would be it possible to notify the IRS that “tax years 2014 to 2019 are coming your way”.  The tax pro could tell the IRS what each year shows for refunds or balance due.  The IRS could hold refunds to apply to balance due years.  The IRS should NOT send out any collection letters until all returns are processed, especially when the available refunds (not affected by the Refund Statute Expiration Date) will full pay the balance due years.

IRS should stop collection when there are unresolved issues.  Tax pros say that this has been a problem for years. The right hand doesn’t know what the left hand is doing.  One part of the IRS is working on resolving an issue that will result in no tax due, or less tax due. For example, the IRS is working on an “audit reconsideration”.  But the IRS continues to send out collection notices or levies, even though everyone knows the balance due is going to go away, or be reduced to the point where an installment agreement would work.

Is there any way to get a list of which issues can be resolved by calling PPS or another IRS number, versus issues that require a letter?  Sometimes a tax pro will call PPS and ask for penalty abatement, and it’s done over the phone. Other times, the PPS assistor tells them to write a letter.  Is the policy always the same? Does it depend on the type of penalty or the type of tax?  Is there a dollar criteria?  This example of penalty abatement is just one example.  Tax pros would like a complete list of when they can call to get things done, or when they must write a letter.  They don’t want to spend 10 minutes to 2 hours waiting on hold (depending on what number they are calling) just to be told they have to send in a letter.

Tell callers the estimated wait time on all IRS customer service phone lines.

Give taxpayers and tax pros the opportunity to leave a message and get a call back. 

  • After this meeting, Karen found out that the IRS is doing a pilot project on this. More info:
  • Tax pros have asked the IRS to offer a callback service. When they call in, if their call can’t be answered quickly, they want to have the option of leaving a voice message with their name and phone number, and have the IRS call them back. The IRS has a pilot program to test this. The service is available only on certain lines. Approximately 300,000 callbacks have been offered and 86 percent of those users accepted the callback option. The number of callback offers will continue to increase during FY2020.
  • Karen will keep you posted as we continue this test.

How can the IRS better reach hard to serve taxpayer groups like Limited English Proficient (LEP), Low Income, and International for example?

(no suggestions provided)

IRS RESTRUCTURING

How might we modernize the IRS organizational structure to better serve taxpayers?

(no suggestions provided)

EXTERNAL COMMUNICATIONS

How best can the Taxpayer First Act Office provide ongoing Taxpayer First Act updates from the IRS?

(no suggestions provided

Author:  Karen Brehmer, karen.a.brehmer@irs.gov, 763-347-7375.  Submitted 2/14/2020.

 

 

IRS NEWS FOR TAX PROFESSIONALS

February 2020

►UPCOMING WEBINARS

There will be two webinars in February. Details to follow. Please check Webinars for Tax Practitioners for updates.

►NEWS

Get up-to-date information this tax filing season with redesigned IRS e-News Subscriptions

  • The IRS encourages taxpayers, businesses, tax professionals and others to take advantage of a variety of improved e-mail subscription services.

Refunds

  • The IRS issues most refunds in less than 21 days, although some require additional time. You should only call if it has been:
    • 21 days or more since you e-filed
    • 6 weeks or more since you mailed your return, or when
    • “Where’s My Refund” tells you to contact the IRS

IRS provides relief to financial institutions affected by tax law change raising the age for required minimum distributions

  • The IRS has provided relief to financial institutions that were expected to provide required minimum distribution (RMD) statements to IRA owners by January 31, 2020.
  • Notice 2020-6 clarifies that if an RMD statement is provided for 2020 to an IRA owner who will turn age 70½ in 2020, the IRS will not consider the statement to be incorrect, but only if the financial institution notifies the IRA owner no later than April 15, 2020, that no RMD is due for 2020.

IRS and Treasury issue guidance for students with discharged student loans and their creditors

  • The IRS and Department of the Treasury issued Revenue Procedure 2020-11 that establishes a safe harbor extending relief to additional taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school.
  • Relief is also extended to any creditor that would otherwise be required to file information returns and furnish payee statements for the discharge of any indebtedness within the scope of this revenue procedure.

Improved Tax Withholding Estimator helps workers target the refund they want; shows how to fill out new 2020 W-4

  • The Tax Withholding Estimator incorporates the changes from the redesigned Form W-4, Employee’s Withholding Certificate, that employees can fill out and give to their employers this year.

National Taxpayer Advocate delivers Annual Report to Congress: focuses on Taxpayer First Act implementation, taxpayer service, and IRS funding

  • Acting National Taxpayer Advocate Bridget Roberts today released her 2019 Annual Report to Congress. Key challenges highlighted in the report include implementation of the Taxpayer First Act, inadequate taxpayer service and limited funding of the agency.
  • Roberts also released the third edition of the National Taxpayer Advocate’s “Purple Book,” which presents 58 legislative recommendations designed to strengthen taxpayer rights and improve tax administration.

IRS issues 2019 annual report; highlights program areas across the agency

  • The IRS released a new annual report highlighting accomplishments across the nation’s tax agency during Fiscal Year 2019.
  • “Internal Revenue Service Progress Update/Fiscal Year 2019 – Putting Taxpayers First” provides an overview of a variety of operations across taxpayer service, compliance and support areas. The 41-page document is built around the agency’s six strategic goals.

Opportunity Zones

►TAX TIPS to share with your clients

Gig economy work can affect a taxpayer’s bottom line

  • Taxpayers who work in the gig economy need to understand how their work affects their taxes. A little pre-planning can help make sure gig economy workers are prepared when it’s time to file their tax return.

EMPLOYERS AND BUSINESS OWNERS

What’s new for QBID/Sec 199A?

FTD’s for a fiscal year taxpayer

  • Q: When using EFTPS to make an FTD for a fiscal year taxpayer, what year do you use? Is it the year when the fiscal year starts, or the year when the fiscal year ends?
  • A: Use the year for when the fiscal year ends.
  • (88) TAX PERIOD – The month and year in which the length of liability ends for a particular return or payment transaction. For Form 2290, Heavy Highway Vehicle Use Tax Return, the tax period is the beginning month of liability. For Form 706, U.S. Estate Tax Return, the tax period is 000000. The tax period cannot be later than the current year/month plus one year.

►THE BEST OF IRS.GOV

IDENTITY THEFT / DATA THEFT / SCAM ALERTS

►YOUR PRACTICE

If you need to mail in a tax return or payment:

Clarification on Lockboxes

  • Per “e-News for Small Business Issue 2020-2”, lockboxes in Cincinnati and Hartford are closing on July 1.
  • The lockboxes that are closing do not relate to 1040 estimated tax payments. They relate to business payments.

IRS Guidance

  • Tax Code. Federal tax law begins with the Internal Revenue Code (IRC), enacted by Congress in Title 26 of the United States Code (26 U.S.C.). Note: The IRC materials in the link are provided as a public service by The Legal Information Institute of Cornell University Law School, not the IRS.
  • Treasury regulations (26 C.F.R.)–commonly referred to as Federal tax regulations– pick up where the Internal Revenue Code (IRC) leaves off by providing the official interpretation of the IRC by the U.S. Department of the Treasury.

TAX EXEMPT ORGANIZATIONS

►NEWS FROM OTHER AGENCIES

From the Federal Trade Commission:

Small Business Cybersecurity: Protect Your Small Business

  • Learn the basics for protecting your business from cyber-attacks. The business cybersecurity resources in this section were developed in partnership with the National Institute of Standards and Technology, the U.S. Small Business Administration, and the Department of Homeland Security.

►e-NEWS SUBSCRIPTIONS and SOCIAL MEDIA

e-News Subscriptions

  • The IRS offers several e-News subscriptions on a variety of tax topics. Click above for information about subscribing.

IRS Social Media

  • The IRS uses social media tools to share the latest information on tax changes, scam alerts, initiatives, products and services. Connect with the IRS through social media tools.

HOW TO SHARE IRS INFO ON SOCIAL MEDIA

When you find an article you want to share, click on the “Share” link. Like so:

  • Scroll to the bottom of any page on IRS.gov. Look for “Share / Print”
  • Click on Share
  • You can share on Facebook, Twitter, or Linkedin.

First Thursday Minutes – December 5, 2019

Stakeholder Liaisons
Doug Blade
Karen Brehmer
Neki Cox
Kathleen Fox

Stakeholder Liaison Manager
Kristen Hoiby, Area 6 manager

Departments of Revenue
MO       Laura Wallendorf
NE        Dawn Holtmeier

Tax Professionals
Rita Barnard
Darrel Beadle
Velma Bjorgum
Jacob Borash
Frank Carnahan
Brad J Decker
Kelly Golish
Jacen Gondringer
Doug Gross
Steven Heeley
Cindy Hockenberry
Terry Johnson
Bill Kelly
Rick Kollauf
Ken Larsen
Judy Lashinski
Terri Lillesand
Laura Merschman
Ruth Ann Michnay
Holly Muehl-Pett
Paul Osterberg
Jodee Paape
Kathy Reiniger
JoAnn Schoen
Barbara A Steponkus
Brad Voght
Jill Wrensch

Webinars

No webinars scheduled at this time. Please check Webinars for Tax Practitioners for upcoming webinars.

Discussion items
 
1)   2019 Form 1040 and schedules

2019 Form 1040. There are three schedules for 2019, compared to six in 2018.

2)   Virtual Currency

3)   Discussion: Form W-4 for 2020, federal and state rules

NEBRASKA:

For 2020, if an employee changes withholding, they must use the new IRS Form W-4.  In Nebraska, the employee MUST ALSO fill out a new W-4 for the state of NE.

MINNESOTA:

Mark Krause provided this information: Beginning January 1, 2020 when a new employee fills out a W-4 or an existing employee changes their W-4, a new 2020 W-4MN will need to be completed since withholding allowances will no longer be calculated on the federal W-4. The rules for submitting a W-4MN to Revenue have not changed.

WISCONSIN: Changes to Form WT-4

  • The Internal Revenue Service has redesigned Form W-4 for the year 2020. As explained in the DRAFT posted on the IRS website, federal allowances have been removed. Prior to this change, an employee could use Form W-4 for Wisconsin purposes if the employee’s federal allowances equaled his or her Wisconsin exemptions. Since federal allowances have been removed, the redesigned Form W-4 cannot be used for Wisconsin purposes.
  • The following applies for Wisconsin withholding tax purposes beginning in 2020:
    • All newly-hired employees must provide Form WT-4 to their employer.
    • Existing employees that change the number of their Wisconsin withholding exemptions must provide Form WT-4 to their employer.
    • Existing employees are not required to provide Form WT-4 to their employer (unless the employer requests it) if the employee wishes to maintain the same number of Wisconsin withholding exemptions used in 2019.

MISSOURI:

Laura Wallendorf will look into this issue.

4)   National Tax Security Awareness Week

  • IR-2019-192, National Tax Security Awareness Week begins; IRS and Security Summit partner offer Cyber Monday shopping tips to protect computers, mobile phones
  • IR-2019-195, National Tax Security Awareness Week, Day 2: Don’t take the bait: Recognize, avoid phishing scams from identity thieves
  • IR-2019-196, National Tax Security Awareness Week, Day 3: Creating strong passwords can protect taxpayers from identity theft
  • IR-2019-198, National Tax Security Awareness Week, Day 4: IRS, Security Summit warns business owners about being targets for identity thieves
  • IR-2019-200, National Tax Security Awareness Week, Day 5: Tax professionals need data protection plans; must guard against identity theft

5)   IRS reminds tax professionals of tasks to get ready for 2020

  • Update e-Services information
  • Renew PTINs
  • Update POA/third-party authorization records
  • Review security safeguards
  • Review Practitioner Priority Service options
  • Register for e-News for Tax Professionals and subscribe for quick alerts

State Departments of Revenue

 Minnesota – Mark Krause

  • Each day we are mailing approximately 3,000 tax year 2017 conformity-related adjustment letters. Our goal is to be completed with 2017 adjustments by the end of this year.
  • Any questions can be directed to outreach@state.mn.us.

Your issues and questions:

1) Taxpayer First Act

 There are three issues that commonly come up and have been an issue for many years. Please use the Taxpayer First Act email to share these concerns with the IRS.

1) Letters or payments “cross in the mail”. Example: The taxpayer pays a balance due on Form 1040 by check or by Electronic Funds Withdrawal on 10-15-2019.  The taxpayer gets a balance due notice in early November. The IRS system does not show the payment.

2) The taxpayer gets a paper refund check as a result of an adjustment after their return has been processed. They already received the original refund as shown on the return, or they paid the balance due.  Or they get a refund check that is different from what they were expecting. The taxpayer is supposed to get a letter to explain the refund. Sometimes they get a letter up to three weeks after the refund check, or they don’t get a letter at all.

3) Form 2848’s are not processed by the CAF unit in one week, as the IRS states. It often takes three weeks. Sometimes they are not processed at all, and often there is no correspondence to the taxpayer to explain if there was a problem.  POAs can’t wait three weeks to contact the IRS, so they call PPS and fax in Form 2848. This works, but it would be better to have an electronic system for submitting Form 2848 where it’s recorded in day or two.

Next Call

The next call will be on January 2, 2020.
We’ll send out the WebEx link closer to that date
Meetings are one hour long. Come when you can, leave when you must.
Thank you to everyone who attended. We appreciate your time and input!