►UPCOMING WEBINARS
Check Webinars for Tax Practitioners for upcoming webinars.
►IRS Video Portal
Recently posted to the IRS Video Portal:
This webinar will give an extensive overview of tax relief for victims of disasters. Topics will include: Identifying types of relief available to taxpayers in a disaster area; Calculating disaster area casualty losses; Documenting disaster area casualty losses; Obtaining information about federally declared disaster areas; Learning about IRS Disaster Assistance and Emergency Relief Program.
This webinar will give an overview of what to do when you owe and can’t pay.
This webinar gives tax professionals updates and guidance on how the TCJA provisions will affect their due diligence requirements. It also addresses common errors, how to avoid them and applicable penalties if requirements are not met.
You’ll want to attend if: You made a mid-year change to your withholding in 2018; You were not satisfied with the amount you had withheld in 2018; Your circumstances changed in 2018 or you expect they will in 2019 We will cover; Why do a Paycheck Checkup?; Who should do a Paycheck Checkup?; How to do a Paycheck Checkup using the IRS Withholding Calculator; Plus a live Q & A.
This webinar highlights various limitations, exclusions and thresholds related to eligibility for the qualified business income deduction (199A), various calculations and the basics for tax reporting. This 20% deduction applies to non-C corporations, is in addition to the standard deduction or itemized deductions and is reported on Form 1040.
►NEWS
IRS, Treasury unveil proposed W-4 design for 2020
- The IRS issued a draft of the 2020 Form W-4, Employee’s Withholding Allowance Certificate (PDF), that will make accurate withholding easier for employees starting next year.
- FAQs on the early release of the 2020 Form W-4
- If you have comments about this draft of Form W-4, you can submit them to WI.W4.Comments@IRS.gov. Comments should be submitted by July 1, 2019 to be considered timely.
- As part of its ongoing efforts to protect taxpayers from identity thieves, the IRS announced it will stop its tax transcript faxing service in June and will amend the Form 4506 series to end third-party mailing of tax returns and transcripts in July.
- Tax professionals who are attorneys, Certified Public Accountants or Enrolled Agents (i.e., Circular 230 practitioners) and do not have an e-Services account may create one and, with proper authorization from clients, can access the e-Services’ Transcript Delivery System. Unenrolled tax practitioners must have an e-File application on file and be listed as delegated users to access TDS.
IRS now billing those who filed for 2018 but didn’t pay; many payment options available
- The IRS advises those now receiving tax bills because they filed on time but didn’t pay in full that there are many easy options for paying what they owe.
- When a tax return’s information doesn’t match data reported to the IRS by employers, banks and other third parties, the IRS will send a letter to the taxpayer. The letter is called an IRS Notice CP2000, and it gives detailed information about issues the IRS identified and provides steps taxpayers should take to resolve those issues.
- This isn’t a formal audit notification, but a notice to see if the taxpayer agrees or disagrees with the proposed tax changes. Taxpayers should respond to the CP2000, usually within 30 days from the date printed on the notice. If a timely response can’t be made, taxpayers need to call the toll-free number shown on the notice and request additional time to respond.
- Taxpayers can also call the number on the notice for additional information or assistance, or visit Understanding Your CP2000 Notice on IRS.gov.
Final regulations on charitable contributions and state and local tax credits
- The U.S. Department of the Treasury and the Internal Revenue Service issued final regulations that require taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return. In a notice, the IRS stated that taxpayers may treat payments they make in exchange for these credits as state or local tax payments. This allows some taxpayers to deduct certain of the payments as taxes.
Millions more ITINs set to expire in 2019; IRS says renew early to prevent refund delays
- Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the IRS continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year.
- “We urge taxpayers with expiring ITINs to take action and renew the number as soon as possible. Renewing before the end of the year will avoid unnecessary delays related to their refunds,” said IRS Commissioner Chuck Rettig. “To help with this process, the IRS is sharing this material in multiple languages. We encourage partner groups to share this important information to reach as many people with ITINs as possible.”
Interest rates decrease for the third quarter of 2019
- The IRS announced that interest rates will decrease for the calendar quarter beginning July 1, 2019. The rates will be:
- five (5) percent for overpayments [four (4) percent in the case of a corporation];
- two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000;
- five (5) percent for underpayments; and
- seven (7) percent for large corporate underpayments.
►TAX TIPS (to share with your clients)
Taxpayers have the right to appeal an IRS decision
- A taxpayer might at some point see the IRS make a decision about their taxes. If the taxpayer disagrees with this decision, they have the right to appeal it. The right to appeal an IRS decision in an independent forum is one of 10 basic rights known collectively as the Taxpayer Bill of Rights.
Taxpayers have the right to pay no more than what they owe
- The IRS is committed to ensuring taxpayers pay no more than the correct amount of tax owed. Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. This is one of 10 basic rights known collectively as the Taxpayer Bill of Rights.
Reminder: Private Debt Collection
All taxpayers should plan ahead for natural disasters
- Floods, wildfires, hurricanes, tornados and other natural disasters happen quickly and often with little warning. No one can prevent these disasters from happening, but people can prepare for them.
Home office deduction benefits eligible small business owners
- Small business owners may qualify for a home office deduction that will help them save money on their taxes, and benefit their bottom line. Taxpayers can take this deduction if they use a portion of their home exclusively, and on a regular basis.
Taxpayers should include tax plans in their wedding plans
- Couples getting married this year know there are a lot of details in planning a wedding. Along with the cake and gift registry, their first tax return as a married couple should be on their checklist. The IRS has tips and tools to help newlyweds consider how marriage may affect their taxes.
Got tip income? Here are some tips about tips from the IRS
- Aside from regular wages, many taxpayers have jobs where they get tips from their clients or customers. Generally, income received as a tip is taxable. Here’s some information to help taxpayers correctly report the income they receive as a tip.
►TAX REFORM
- The Treasury Department and IRS issued legal guidance under the 2017 Tax Cuts and Jobs Act (TCJA) and the Consolidated Appropriations Act of 2018 providing information on certain deductions to cooperatives and their patrons.
- The proposed regulations provide guidance for cooperatives and their patrons on calculating the deduction for qualified business income – the QBI deduction – and the deduction for domestic production activities for agricultural or horticultural cooperatives and their patrons (the Section 199A(g) deduction). In addition, Notice 2019-27 (PDF) contains a proposed revenue procedure providing guidance on methods for calculating W-2 wages for purposes of section 199A(g).
Taxpayers have options for paying the tax they owe throughout the year
- Taxpayers who need to pay more before tax time have a few different options on how they can do so. First, all employees should make sure their employers are withholding the correct amount of tax from their paychecks.
- Here are three ways that taxpayers can adjust their withholding:
- Changing the withholding allowances on Form W-4.
- Having an extra flat-dollar amount withheld from each paycheck.
- Making estimated tax payments throughout the year.
►EMPLOYERS AND BUSINESS OWNERS
- A-Z Business Topics
- Business Types
- By Subject
►THE BEST OF IRS.GOV
Common Penalties for Individuals
- Penalties and interest stop accruing as soon as you pay your balance in full.
- If you can’t pay your balance in full, pay what you can now. You can enter into an Installment Agreement to pay the remaining balance. Entering into an Installment Agreement may reduce future failure to pay penalties.
- We charge some penalties, such as the failure to pay penalty, on a monthly basis, until the tax owed is paid in full.
- You may qualify for relief from penalties if you made an effort to comply with the requirements of the law, but were unable to meet your tax obligations, due to circumstances beyond your control.
►IDENTITY THEFT / DATA THEFT / SCAM ALERTS
IRS reminder: Tax scams continue year-round
- Although the April filing deadline has passed, scam artists remain hard at work, and the IRS urges taxpayers to be on the lookout for a spring surge of evolving phishing emails and telephone scams.
►YOUR PRACTICE
- As a tax pro, you may think that other tax pros know that the Practitioner Priority Service is their first point of contact for help with client-related issues. Many are not aware of it, even if they have been in the business for many years. So please tell other tax pros about this service. Thank you!
►TAX EXEMPT ORGANIZATIONS
How to get help from the IRS on Exempt Organizations
- For answers to questions about charities and other non-profit organizations, call IRS Tax Exempt and Government Entities Customer Account Services at (877) 829-5500 (toll-free number). If you prefer to write, use the address below.
►e-NEWS SUBSCRIPTIONS and SOCIAL MEDIA
- The IRS offers several e-News subscriptions on a variety of tax topics. Click above for information about subscribing.
- Connect with the IRS. 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.
►NEWS FROM OTHER AGENCIES
From the SBA:
Webinars: 2019 National Small Business Week
- In case you missed the 2019 National Small Business Week Virtual Conference, you are still in luck. The seven webinars are available to watch on demand. The topics include SBA funding programs, driving growth with customer obsession, online marketing and ads, mastering your cash flow, government contracting and disaster preparedness.
