June 2019


Check Webinars for Tax Practitioners for upcoming webinars.

May 30 Qualified Business Income Deduction (199A) June 6 Foreign Earned Income Exclusion

June 13 U.S. Taxation of Employees of Foreign Governments & International Organizations June 19 U.S. Territories – Self Employment Tax

June 27 Tax Residency Status


The following IRS webinars are now archived and available for viewing in the IRS Video Portal: Topic: Understanding Tax Relief for Disasters

Aired: Thursday, March 21, 2019

Topic: Filing is The Thing to Do, Even if You Have a Balance Due

Aired: Thursday, April 4, 2019


  • The full transcript is provided as closed captioning
  • The Power Point is posted for downloading under the “Slides PDF”


Rules relating to S corporations, shareholders and corporate officers:

Small Business Week

  • National Small Business Week was May 5 – 11. The IRS highlighted several resources to help small business owners and self-employed individuals understand and meet their tax obligations.

It’s summertime… and these tips can help make livin’ easy for teens with jobs

  • With summer almost here, many students will turn their attention to making money from a summer job. Whether it’s flipping burgers or filing documents, the IRS wants student workers to know some facts about their summer jobs and
  • Not all the money they earn will make it to their pocket because employers must withhold taxes from their paycheck. Here are some tax tips young individuals should know when starting a summer

· See also: SBA article at the end of this newsletter.

IRS revises EIN application process; seeks to enhance security

  • As part of its ongoing security review, the IRS announced that starting May 13 only individuals with tax identification numbers may request an Employer Identification Number (EIN) as the “responsible party” on the
  • The change will prohibit entities from using their own EINs to obtain additional EINs. The requirement will apply to both the paper Form SS-4, Application for Employer Identification Number (PDF), and online EIN
  • There is no change for tax professionals who may act as third-party designees for entities and complete the paper or online applications on behalf of

Some taxpayers may need to amend their tax return

  • Taxpayers who discover an error after filing may need to amend their tax Taxpayers should file an amended return if there’s a change in filing status, income, deductions or credits.
  • The IRS may correct mathematical or clerical errors on a return. They also may accept returns without certain required forms or In these instances, there’s no need to file an amended return.

Taxpayer Advocate Tax Tip: Correcting tax returns, if you made a mistake or forgot to file

  • If you make a mistake on your taxes, do you know what to do and how to correct the mistake? There are many options on how to fix a mistake on your tax return, depending on whether you received a notice and the kind of mistake you made. If you simply forgot to file, and have a filing requirement, you should file right away as there are

It’s not too late to check IRS payment options

  • IRS offers taxpayers convenient, secure ways to pay their taxes throughout the year. Taxpayers can pay:
    • Online
    • By phone
    • With their mobile device using the IRS2Go app
  • Additionally, some taxpayers must make quarterly estimated tax payments throughout the year. These taxpayers may include sole proprietors, partners, and S-corporation shareholders who expect to owe $1,000 or more when they Individuals who participate in the sharing economy (aka gig economy) might also have to make estimated payments.

IRS promotes disaster readiness and Hurricane Preparedness Week

  • Disasters can happen at any time, and the IRS is encouraging taxpayers to be prepared for the
  • In the past 18 months, the IRS responded to presidentially declared disasters in 15 states and U.S. territories. The IRS offered tax relief and assistance to victims of hurricanes, typhoons, earthquakes, volcanos, fires, tornadoes, severe storms, high winds and
  • The 2019 hurricane season begins in June and the IRS joins the National Weather Service during Hurricane Preparedness Week by encouraging everyone to update or make an emergency

Disaster resources can help taxpayers weather the storm

  • As summer approaches, so do storm and other natural Whether it’s a hurricane, fire, flood or tornado, it’s important for people to be prepared. One way to get ready is for taxpayers to know what to do about important documents and paperwork that might be lost after a disaster.

Understand how to report foreign bank and financial accounts

  • In a global economy, many people in the United States have foreign financial accounts. The law requires U.S. persons with foreign financial accounts to report their accounts to the U.S. Treasury Department, even if the accounts don’t generate any taxable income. They need to report by April 15 of the following calendar
  • The U.S. government requires reporting of foreign financial accounts because foreign financial institutions may not be subject to the same reporting requirements as domestic financial

Here’s what people should know about reporting cash payments

  • Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments, including:
  • Who’s covered
  • How to report
  • What’s cash
  • When to file

Here’s what historic building owners should know about the rehabilitation tax credit

  • Organizations around the country continue to promote historic buildings and other important heritage sites as May is National Historic Preservation Month. As part of this month, anyone who owns a historic building should remember that the rehabilitation tax credit offers an incentive to renovate and restore old or historic buildings. Tax reform legislation passed in December 2017 changed when the credit is claimed and provides a transition

IRS releases Data Book for 2018 showing range of tax data including audits, collection actions and taxpayer service

  • The IRS released the 2018 IRS Data Book, a snapshot of agency activities for the fiscal year.


A comparison for mid- to large businesses and international taxpayers


It pays for employers to file payroll taxes electronically

  • Business owners who file payroll and employment taxes using paper forms should consider filing these electronically. Here are some of the forms employers can e-file.


IRS Guidance

  • IRS Guidance in Plain English
  • Internal Revenue Bulletins
  • Advance Notices
  • Tax Regulations
  • Internal Revenue Code
  • IRS Written Determinations
  • FOIA Library


Identity Protection: Prevention, Detection and Victim Assistance

  • Identity theft places a burden on its victims and presents a challenge to businesses, organizations and government agencies, including the
  • The IRS combats tax-related identity theft with an aggressive strategy of prevention, detection and victim assistance. We’re making progress against this crime, as it remains one of our highest
  • Tax-related identity theft occurs when someone uses your Social Security number to file a tax return claiming a fraudulent If you become a victim, we’re committed to helping you resolve your case as quickly as possible.


Credit Elect Problems

  • Under specific circumstances, the IRS can reverse a credit elect
  • See IRM Credit Elect Problems and IRM Credit Elect Reversals

Register for 2019 IRS Nationwide Tax Forums

  • The IRS reminds tax professionals to sign up for this summer’s 2019 IRS Nationwide Tax Forums. Tax professionals attending can earn up to 19 continuing education
  • National Harbor, Maryland, near Washington, D.C. – July 9-11
  • Chicago – July 23-25
  • New Orleans – August 6-8
  • Orlando – August 13-15
  • San Diego – September 17-19


Exemption Requirements – 501(c)(3) Organizations

  • To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.


Subscribe to e-News for Tax Professionals

  • Preparers can register to get this electronic newsletter. It’s one of the best ways for tax professionals to get the latest national and local IRS news. (Editor’s note: most of the articles in this monthly newsletter come from e-News for Tax )

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From the SBA:

Hiring Teens for the Summer

  • In many industries, the summer season brings a sharp increase in teen employment. Unfortunately, for many business owners there remains a great deal of uncertainty about how federal child labor laws affect their teen workers. Brush up on the requirements and prevent child labor violations before they occur. Click here to learn more! And for more in-depth child labor information download your own copy of our Child Labor Bulletin 101.