Get a Tax Transcript Online

NSTPInternal Revenue Service (IRS), Transcript

Get a Tax Transcript Online

The Internal Revenue Service is reminding taxpayers who need their prior-year tax records to either complete their 2018 tax return or to validate their income can use Get Transcript Online or Get Transcript by Mail. Taxpayers often call or visit the IRS seeking their prior-year tax transcript, which is a record of their tax return. But the days around Presidents Day mark the busiest time of the year for the IRS. Taxpayers can avoid the rush by using online options that are faster and more convenient. It’s always a good idea to keep copies of previously-filed tax returns. That recommendation is more important this year because, for some taxpayers, certain data from the 2017 tax return – the adjusted gross income — will be required to validate their electronic signature on their 2018 tax return due April 15 for most filers. This is especially true for taxpayers who have switched tax software products this year. Generally, for returning users, the commercial tax software product will carry over the prior-year information and make for an easy, seamless validation process. However, taxpayers using a new tax software product for the first time may be required to enter the information manually. Here’s the … Read More

Underpayment of Estimated Income Tax

NSTPEstimated Income Tax, Internal Revenue Service (IRS), Underpayment of Estimated Income Tax

Underpayment of Estimated Income Tax

IRC section 6654 requires that the lesser of 90% of the tax shown on the return for the tax year, or 100% of the tax shown on the prior year tax return (110% if prior year AGI is above $150,000) must be paid through withholding and/or estimated tax payments throughout the year. A taxpayer is subject to the underpayment of estimated tax penalty for failing to meet these requirements. The penalty does not apply if the taxpayer owes less than $1,000 in tax when filing the tax return. After the enactment of the Tax Cuts and Jobs Act (TCJA), the IRS issued a new version of Form W-4 and updated the withholding calculator on www.irs.gov and encouraged taxpayers to check their withholding and revise their estimated tax payments to reflect changes under the new law. The IRS recognizes that taxpayers may have been unable to accurately calculate the amount of their required estimated income tax payments for the 2018 tax year. Accordingly, the IRS is providing additional relief by waiving the penalty if the taxpayer meets the conditions set forth in IRS Notice 2019-11. Notice 2019-11 relief: The penalty under IRC section 6654 does not apply for the estimated income tax … Read More

A Brief Primer on the Changes to Meals and Entertainment

NSTPInternal Revenue Service (IRS), IRS Credits and Deductions, Meals and Entertainment Deductions

A Brief Primer on the Changes to Meals and Entertainment

The Tax Cuts and Jobs Act (TCJA) has had a significant impact on the tax deductions that can now be claimed for business entertainment and meals. Following is a wrap-up of the legislation: Meals and entertainment – 0% deductible All entertainment, including admission fees, tickets, and food and beverage unless the food and beverage is separately stated from the cost of the entertainment on one or more bills, invoices, or receipts (See section titled Meals – 50% deductible below) or it meets one of the exceptions under the section titled, “Meals and entertainment – 100% deductible.” Meals – 50% deductible Business meals: meals with a current or potential business customer, client, consultant, or similar business contact; Employee travel meals: Meals incurred by an employee or self-employed individual while traveling away from home if their duties require them to be away from the general area of their tax home substantially longer than an ordinary day’s work, and they need to sleep or rest to meet the demands of their work while away from home while out of town; Meals for employees, stockholder business meetings: meals directly related to business meetings of employees, stockholders, agents or directors; Meals for meetings of business … Read More

IRS Extends Transcript Fax Service

NSTPInternal Revenue Service (IRS), Transcript Fax Service

IRS Extends Transcript Fax Service

IRS will extend its transcript faxing service beyond the planned February 4 end date and is reviewing options for a new time frame. We are committed to providing you with advance notice of the new date. As a reminder, you can now have unmasked Wage and Income Transcripts sent to your e-Services secure mailbox if you follow certain procedures. This should help bring clients into compliance and allow for electronic filing. For details, please see Fact Sheet 2018-20, “Steps for tax professionals to obtain wage and income transcripts needed for tax preparation.” Starting January 7, 2019, tax professionals who meet certain requirements may request an unmasked Wage and Income Transcript. The unmasked transcript will only be sent to the practitioner’s e-Services Secure Object Repository (SOR), a secure electronic mailbox. Tax professionals who lack access to the secure SOR mailbox are encouraged to create an e-Services account as quickly as possible. IRS e-Services offers a suite of tools for tax professionals including the Transcript Delivery System that offers immediate access, with proper authorization, to clients’ masked transcripts, and the Secure Object Repository (SOR) which is a secure mailbox for e-Services users only. The SOR is available from the e-Services page or … Read More