IRS ISSUES SERIOUS TAX DELINQUENCY PASSPORT DENIAL, REVOCATION GUIDANCE (NOTICE 2018-1)

NSTPInternal Revenue Service (IRS)

The IRS has issued guidance on the implementation of Code Sec. 7345 which requires the IRS to notify the State Department when an individual has a “seriously delinquent” tax liability. Generally, the State Department will deny an application for a new or renewed passport after receiving such a certification. The State Department may also revoke or limit a previously issued passport. The IRS and the State Department will begin implementation of Code Sec. 7345 in January 2018. Background Code Sec. 7345 was enacted as part of the FAST Act (P.L. 114-94) on December 4, 2015. Under Code Sec. 7345(b)(1), a seriously delinquent tax debt is an individual’s unpaid, legally enforceable and assessed federal tax liability greater than $50,000 and for which: -A notice of federal tax lien has been filed and the individual’s right to a hearing has been exhausted or lapsed, or -A levy has been issued. The amount of federal tax liability is calculated by aggregating the total amount of all current tax obligations, including penalties and interest. However, a seriously delinquent tax debt does not include a debt being timely paid under: -An approved installment agreement, -An approved offer in compromise, or -A settlement agreement with the … Read More

THE IRS SENDING OUT THIRD EMAIL OF THE DATA SECURITY SERIES TO PTIN HOLDERS

NSTPInternal Revenue Service (IRS)

IRS Tax Professional PTIN Processing Center 1605 George Dieter PMB 678 El Paso TX 79936 Happy New Year! But a new year means it’s tax time again and as you’re probably aware, the IRS will begin accepting individual tax returns on January 29. As you make your final filing season preparations, this is a good time to make sure you have a plan in place to protect your business and clients from data breaches. All return preparers need a security plan to protect your systems and all the taxpayer information you are responsible for safeguarding. The IRS has several resources to help educate you and your staff on ways to safeguard your clients and your business. You are a TARGET for cyber and identity thieves! Don’t become a VICTIM! For additional resources, visit IRS.gov and search these keywords: • Protect Your Clients, Protect Yourself • Publication 4557, Safeguarding Taxpayer Data • Identity Protection • Data Theft Information for Tax Professionals Also, keep in mind that tax return preparers can now earn continuing education credit from IRS-approved CE providers for programs covering data security and identity theft topics. Courses focused on protecting client information and data and system security, including review … Read More

Practitioner Priority Line Updates

NSTPInternal Revenue Service (IRS)

The IRS continues to review its procedures to better protect sensitive taxpayer data. As part of this effort, the IRS will request additional information from tax professionals who contact us through the Practitioner Priority Service or any toll-free IRS telephone number. This procedural change will require tax practitioners to provide personal information so that our customer service representatives may confirm their identities. This additional information may include data such as your Social Security number and your date of birth. This personal information, in addition to the CAF number, is necessary to verify the identities of the person to whom we are releasing taxpayer information. We’ve also made an update to Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization, that will require you to inform your client if you are using an Intermediate Service Provider to access client transcripts via the Transcript Delivery System. A box must be checked if you are using a third party. We define Intermediate Service Providers as privately owned companies that offer subscriptions to their software and/or services that the taxpayer’s authorized representative can use to retrieve, store, and display tax return data (personal or business) instead of obtaining tax information directly from the … Read More

IRS Nationalwide Tax Forum – Mark your Calendar

NSTPInternal Revenue Service (IRS)

More than ever, following the sweeping changes to the tax code, the IRS Nationwide Tax Forums offer an unparalleled opportunity to get up to date information and training from IRS experts who are on the frontline of interpreting and implementing the new legislation. Join your colleagues and IRS representatives for three days of education, training, and networking. This is a great opportunity to: Earn valuable CE/CFP Credits Learn about the latest tax laws and regulations directly from the IRS Learn about a wide variety of tax products and services in our exhibit hall Network… Network… Network…   City Hotel Dates ATLANTA Atlanta Marriott Marquis July 10-12, 2018 NATIONAL HARBOR (DC) Gaylord National Harbor July 17-19, 2018 SAN DIEGO Town and Country Resort August 7-9, 2018 CHICAGO Hyatt Regency Chicago August 21-23, 2018 ORLANDO Hyatt Regency Orlando September 11-13, 2018 Registration will open in March 2018!   IRS Nationwide Tax Forum Registration Team Phone: (202) 495-2919 Fax: (202) 403-3871 info@irstaxforum.com

Security Summit Partners Warn Tax Pros of Heightened Fraud Activity As Filing Season Approaches

NSTPSecurity

The Internal Revenue Service, state tax agencies and the tax industry are warning tax professionals of early signs that cybercriminals already are at work as the nation’s tax season approaches. Fraudsters are using a new round of emails posing as potential clients or even the IRS in an effort to trick tax practitioners into disclosing sensitive information. The Security Summit partners encourage tax practitioners to be wary of communicating solely by email with potential or even existing clients, especially if unusual requests are made. Data breach thefts have given thieves millions of identity data points, including names, addresses, social security numbers and email addresses. If in doubt, tax practitioners should call to confirm a client’s identity. Numerous data breaches last year meant the entire tax preparation community must be on high alert this filing season to any unusual activity. Thieves may try to leverage stolen identities to steal even more data that will allow them to better impersonate taxpayers and file fraudulent tax returns for refunds. The IRS, state tax agencies and the tax industry, acting as the Security Summit, have made significant strides in combatting identity theft. But cybercriminals continue to evolve, and Summit partners need the help of everyone, … Read More

DISASTER TAX RELIEF BILL INTO LAW

NSTPNatural Diaster

President Trump on September 29 signed the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (HR 3823). In a Statement of Administration Policy, the White House explained that HR 3823 would “provide targeted tax relief for taxpayers impacted by  Hurricanes Harvey, Irma and Maria. In addition to supporting these tax relief measures, the administration will submit further requests to the Congress for supplemental funding in the near future, and looks forward to working with Congress to enact these recovery measures into law.” Disaster Tax Relief Among other things, the measure will: (1) eliminate the current requirement that uncompensated personal casualty losses exceed 10 percent of adjusted gross income to qualify for deduction; (2) eliminate the current requirement that taxpayers itemize deductions to access this tax relief; (3) provide an exception to the 10-percent early retirement plan withdrawal penalty for qualified hurricane relief distributions; (4) allow for the re-contribution of retirement plan withdrawals for home purchases cancelled due to eligible disasters; (5) provide flexibility for loans from retirement plans for qualified hurricane relief; (6) temporarily suspend limitations on charitable contribution deductions associated with qualified hurricane relief made before December 31, 2017; (7) provide a tax credit for 40 percent … Read More