Below is information from Alan Gregerson, Internal Revenue Service Senior Stakeholder Liaison, that he thought might be useful for our MNSEA members.
- Tax Law Provisions for Disaster Areas Resource
- Avoiding Submitting Duplicate Freedom of Information Act Requests
- Telephone Number for FBAR and Title 31 Help
- Know the Questions to Ask about Refundable Credits of Education and Child-Related Tax Benefits
- Revocation or Denial of Passport in Case of Certain Unpaid Taxes
- Taxpayers Online Accounts
- Interest on Home Equity Loans Often Still Deductible Under New Tax Law
- Refund Resources.
- Tax Law Provisions for Disaster Areas Resource –
Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area. Generally speaking, a disaster loss is a loss that occurred in a federally declared disaster area because of or related to a federally declared disaster. Although a disaster loss is a type of casualty loss, special rules apply that generally provide more favorable tax treatment for disaster losses. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. The Around the Nation page provides IRS news specific to local areas, primarily disaster relief or tax provisions that affect certain states. You can also review the list of recent tax relief provided by the IRS in disaster situations based on the Federal Emergency Management Agency’s declarations.
- Avoiding Submitting Duplicate Freedom of Information Act Requests –
To avoid delays to Freedom of Information Act (FOIA) requests, identify and send only one request to the IRS office that is most likely to have the records. Do not send the same request to multiple mailing addresses or fax numbers. See IRS Disclosure Offices and FOIA Service Centers and mail or fax your request to the most appropriate location, based on the information you are requesting.Sending your request to more than one of those locations, or both mailing and faxing your request can bog down processing and slow response times. All requests are assigned to appropriate IRS FOIA queues for processing. When the IRS receives the same request through multiple channels, staff members need to eliminate duplicates and ensure proper routing of the request before processing it.
Before you submit a FOIA request, determine whether the information you seek can be obtained through routine agency procedures, which can make access quicker and easier. If you need to request information under FOIA, see the IRS FOIA Guidelines for information and instructions.
- Telephone Number for FBAR and Title 31 Help – The IRS FBAR and Title 31 Helpline connects practitioners and filers, both domestic and abroad, with a team of specially trained technicians, examiners and specialists to answer technical Title 31 questions.
To reach the FBAR and Title 31 Helpline, dial:
866-270-0733 for callers within the U.S. (toll-free)
313-234-6146 for callers outside the U.S. (not toll-free)
Hours of operation for the FBAR and Title 31 Helpline are Monday – Friday, 8 a.m. to 4:30 p.m., Eastern time. An IRS employee will respond to messages left after-hours.
The FBAR and Title 31 Helpline team answers questions related to reports required by the Bank Secrecy Act of 1970, such as the Report of Foreign Bank and Financial Accounts (commonly known as the FBAR) and reports filed by money services businesses. The Helpline team can also assist with other Title 31 technical issues and BSA correspondence. You can also find answers by sending an inquiry to FBARquestions@irs.gov.
- Know the Questions to Ask about Refundable Credits of Education and Child-Related Tax Benefits link below
- Revocation or Denial of Passport in Case of Certain Unpaid Taxes
Upon receiving certification, the State Department shall deny your passport application and/or may revoke your current passport. If your passport application is denied or your passport revoked and you are overseas, the State Department may issue you a limited validity passport good only for direct return to the United States.
- Certification Of Individuals With Seriously Delinquent Tax Debt
Seriously delinquent tax debt is an individual’s unpaid, legally enforceable federal tax debt totaling more than $50,000 (indexed annually for inflation),including interest and penalties, for which a:
- Notice of federal tax lien has been filed and all administrative remedies under IRC § 6320 have lapsed or been exhausted or
- Levy has been issued
Seriously delinquent tax debt is limited to liabilities incurred under Title 26 of the United States Code and does not include debts collected by the IRS such as the FBAR Penalty and Child Support.
Some tax debt is not included in determining seriously delinquent tax debt even if it meets the above criteria. It includes tax debt:
- Being paid in a timely manner under an installment agreement entered into with the IRS
- Being paid in a timely manner under an offer in compromise accepted by the IRS or a settlement agreement entered into with the Justice Department
- For which a collection due process hearing is timely requested in connection with a levy to collect the debt
- For which collection has been suspended because a request for innocent spouse relief under IRC § 6015 has been made
In addition, certification will be postponed while an individual is serving in an area designated as a combat zone or participating in a contingency operation.
Before denying a passport, the State Department will hold your application for 90 days to allow you to:
- Resolve any erroneous certification issues
- Make full payment of the tax debt
- Enter into a satisfactory payment alternative with the IRS
- IRS Continues to Expand Taxpayer Services; Adds New Features to Taxpayers Online Accounts
The Internal Revenue Service announced today the addition of several new features to the online account tool first introduced late last year as part of the IRS’s commitment to improve and expand taxpayer services. The online account allows individual taxpayers to access the latest information available about their federal tax account through a secure and convenient tool on IRS.gov. When it first launched in December 2016, the tool assisted taxpayers with basic account inquiries such as information about their balance due and access to the various IRS payment options. Since then, the IRS has added new features allowing taxpayers to:
- View up to 18 months of tax payment history
- View payoff amounts and tax balance due for each tax year
- Obtain online transcripts of various Form 1040-series through Get Transcript
- Give feedback on their experience with their online account and make suggestions for improvements
Before accessing the tool, taxpayers must authenticate their identities through the rigorous Secure Access process. This is a two-step authentication process, which means returning users must have their credentials (username and password) plus a security code sent as a text to their mobile phones.
Taxpayers who have registered using Secure Access for Get Transcript Online or Get an IP PIN may use their same username and password. To register for the first time, taxpayers must have their personal and financial information including: Social Security number, specific financial information, such as a credit card number or loan numbers, email address and a text-enabled mobile phone in the user’s name. Taxpayers may review the Secure Access process prior to starting registration.
As part of the security process to authenticate taxpayers, the IRS will send verification, activation or security codes via email and text. The IRS warns taxpayers that it will not initiate contact via text or email asking for log-in information or personal data. The IRS texts and emails will only contain one-time codes. In addition to the online account, the IRS continues to provide several self-service tools and helpful resources available on IRS.gov for individuals, businesses and tax professionals.
- Interest on Home Equity Loans Often Still Deductible Under New Tax Law
IR-2018-32, Feb. 21, 2018
WASHINGTON – The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans.
Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.
Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. As under prior law, the loan must be secured by the taxpayer’s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements.
New dollar limit on total qualified residence loan balance
For anyone considering taking out a mortgage, the new law imposes a lower dollar limit on mortgages qualifying for the home mortgage interest deduction. Beginning in 2018, taxpayers may only deduct interest on $750,000 of qualified residence loans. The limit is $375,000 for a married taxpayer filing a separate return. These are down from the prior limits of $1 million, or $500,000 for a married taxpayer filing a separate return. The limits apply to the combined amount of loans used to buy, build or substantially improve the taxpayer’s main home and second home.
The following examples illustrate these points.
Example 1: In January 2018, a taxpayer takes out a $500,000 mortgage to purchase a main home with a fair market value of $800,000. In February 2018, the taxpayer takes out a $250,000 home equity loan to put an addition on the main home. Both loans are secured by the main home and the total does not exceed the cost of the home. Because the total amount of both loans does not exceed $750,000, all of the interest paid on the loans is deductible. However, if the taxpayer used the home equity loan proceeds for personal expenses, such as paying off student loans and credit cards, then the interest on the home equity loan would not be deductible.
Example 2: In January 2018, a taxpayer takes out a $500,000 mortgage to purchase a main home. The loan is secured by the main home. In February 2018, the taxpayer takes out a $250,000 loan to purchase a vacation home. The loan is secured by the vacation home. Because the total amount of both mortgages does not exceed $750,000, all of the interest paid on both mortgages is deductible. However, if the taxpayer took out a $250,000 home equity loan on the main home to purchase the vacation home, then the interest on the home equity loan would not be deductible.
Example 3: In January 2018, a taxpayer takes out a $500,000 mortgage to purchase a main home. The loan is secured by the main home. In February 2018, the taxpayer takes out a $500,000 loan to purchase a vacation home. The loan is secured by the vacation home. Because the total amount of both mortgages exceeds $750,000, not all of the interest paid on the mortgages is deductible. A percentage of the total interest paid is deductible (see Publication 936).
For more information about the new tax law, visit the Tax Reform page on IRS.gov.
- Refund Resources
Check My Refund Status -“Where’s My Refund?” tool has the same tax refund info as #IRS phone assistors. Using your Social Security number, filing status and amount of your refund, you can find your refund status.
Should You Call the IRS? 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
Taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit may experience a refund hold. According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue these refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or debit cards starting February 27, 2018, if these taxpayers chose direct deposit and there are no other issues with their tax return.
IRS2GoApp Mobile App – Check your refund status, make a payment, find free tax preparation assistance, sign up for helpful tax tips, and more! IRS2Go is available in both English and Spanish.
Alan Gregerson, Internal Revenue Service Senior Stakeholder Liaison
Bloomington, MN 55425
Desk 763-347-7352
