Tax Professional Attendees
Ruth Ann Michnay
Jo Ann Schoen
Carmen Van Der Leest
Departments of Revenue
IA John Fuller
IL Maribeth Oliver
MN Mark Krause
MO Norma Dearixon
WI Nate Weber
July 18, 2019: Understanding an Offer in Compromise
Register here: https://www.webcaster4.com/Webcast/Page/1148/30848
Check Webinars for Tax Practitioners regularly for upcoming webinars.
Videos recently added to the IRS Video Portal:
Foreign Earned Income Exclusion This webinar provides an overview of and answers the questions: What is the Foreign Earned Incomer? Explain the concept of tax home and the foreign earned income exclusion and more.
- Two new scams
- IRS notices
Karen reported that some tax pros are saying that the IRS routinely sends out a collection notice before the IRS has responded to correspondence sent in by the taxpayer or representative. Have you seen this, too?
Your comments: Yes, this happens frequently.
Tax pros who are experienced representatives said:
- They tell their clients that they will probably get one or two collection notices even though correspondence has been sent in. This reduces the client’s anxiety about getting an IRS collection notice.
- They call PPS to ask for a collection hold. Sometimes they do this when the correspondence has been mailed. Sometimes they do this after the first or second collection notice.
- Some tax pros have had success in calling PPS to get matters resolved so that they don’t have to send in correspondence.
Karen explained that the IRS does not stop collection notices until the correspondence has reached the correct department, and is being worked by someone. Correspondence is worked “first in, first out”, so it may be 5 or more weeks before a person looks at it and will then stop future collection notices.
3) Electronic Tax Administration Advisory Committee
4) Tax professional retiring
IRS.gov has an article on this topic: Frequently Asked Questions: Deceased Tax Professionals
Tax pros have asked the IRS to create a page for a tax pro who is retiring. It would include what to do with your PTIN, CAF, EFIN, EIN. Would that be helpful to you?
The response was overwhelmingly in favor. In addition, a request was made for a page for tax pros who are just getting started in the business. We have shared your comments and have asked that this information be added to IRS.gov.
5) Comments on the re-designed Form 1040
Send your comments to the IRS using this link:
Your issues and questions:
- Transcript process when the taxpayer has a new address.
Transcripts will be mailed to the taxpayer at their address of record. What if their address has changed?
The taxpayer should complete Form 8822, Change of Address. Wait 6 weeks, then request the transcript and it will be mailed to their new address.
Use Form 8822-B, Change of Address or Responsible Party for a Business.
Even if the tax professional gets the transcript from e-Services TDS, the taxpayer’s address should be updated.
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.
2) DPAD and Social Security
Jodi Eckhout asked: We received two notices for farmers that are receiving social security – the IRS notice indicated we had incorrectly calculated the taxable SS. However, the notice was wrong – the IRS allowed DPAD as a reduction (according to the instructions, this is not allowed as a deduction). This resulted in the IRS sending refunds (a few hundred dollars each) Has anyone else run into this situation? Does the IRS know about this error — will they be sending new notices asking for the refund back?
We will work this issue and provide an update when we can.
State Departments of Revenue
John Fuller – IA
- The Department had noticed a decline in fraudulent activity, but now we are seeing an increase due to practitioner computer breaches.
Mark Krause – MN
- On 7/9 we updated FAQs and near final forms posted for 2017 & 2018 due to conformity. Do not file 2018 returns on extension unless you need to. Updated software and final forms should be available late August/early Sept and we will then start accepting these returns. If you send in now, we will adjust.
- HSA accounts DO get added into household income. When responding to letters regarding line 5 of M1PR, only input the amount of pre-tax medical and dental insurance premiums that were included in line 5, if any. If the total amount of pre-tax premiums is zero, no response is necessary.
The next call will be on August 1. 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!