NSTP941, IRS Forms

At a recent meeting with the IRS, it was requested that we update payroll professionals on the proper use of the Schedule R which accompanies the payroll Forms 941 and 940 to report aggregate payroll information. All approved IRC section 3504 agents and certified professional employer organizations (CPEOs) must file an aggregate Form 941, with Schedule R (Form 941) attached, if they are reporting wages on behalf of their clients. The Schedule R (Form 941) allocates those aggregate wages reported on Form 941 to each of the clients. Section 3504 agents who elect to file an aggregate Form 940 on behalf of home health care service recipients and all CPEOs must attach a Schedule R (Form 940) to their aggregate Form 940 Schedule R: Using its own Employer Identification Number (EIN), the section 3504 agent or CPEO files a single Form 941 or Form 940 that aggregately reports the information from all of its clients, as well as information for wages paid to its own employees. The section 3504 agent or CPEO must remit all federal employment tax deposits and payments related to these filings using its EIN. The Schedule R (Form 941/940) will provide the IRS with client-specific information … Read More


NSTPInternal Revenue Service (IRS)

The Internal Revenue Service has supplemented its online tax account tool with some new self-service features for taxpayers and their preparers. The IRS debuted the tool last December, offering taxpayers the ability to look up basic information such as the balance due on their taxes and different IRS payment options. The IRS has added several new features since the initial launch, including the ability to view up to 18 months of tax payment history, view payoff amounts and the tax balance due for each tax year, and get online transcripts of Form 1040-series tax returns through the IRS’s Get Transcript tool. Taxpayers can also give the IRS their feedback on their experience with their online account and make suggestions for improvements. “We are constantly looking for ways to improve taxpayers’ interactions with the IRS and adding these new features to the taxpayer’s online account is an important step in that direction,” said IRS Commissioner John Koskinen in a statement. “The IRS is committed to serving taxpayers in multiple ways and now taxpayers who want to interact digitally with us in a secure environment have access to even more helpful features.” Before they can use the online account tool, taxpayers first … Read More


NSTPInternal Revenue Service (IRS), Scams

The Internal Revenue Service is warning people to beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country, so taxpayers should be alert to the details. In the latest twist, the scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scam artist then threatens arrest if a payment is not made through a prepaid debit card. The scammer also tells the victim that the card is linked to the EFTPS system when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made. “This is a new twist to an old scam,” said IRS Commissioner John Koskinen. “Just because tax season is over, scams and schemes do not take the summer off. People should stay vigilant against IRS impersonation scams. People should remember that the first contact they receive from IRS will … Read More

Breaking News

NSTPBreaking News

On an invitation-only conference call yesterday afternoon, IRS Return Preparer Office Director Carol Campbell announced the PTIN system was scheduled to be back up and running as of 8 a.m. EDT today, Wednesday, June 21st. The announcement was made with the caveat that we were not to release this information to our members until today. Please note that Director Campbell said that every effort would be made so that the system would be fully operational at 8 a.m. today. We are hopeful there have been no glitches overnight and that the IRS will resume issuing PTINs today. Campbell noted that there were many processes that were being affected by the shutdown of the PTIN system, including those new tax professionals trying to schedule the EA Exam. At this time there is no cost to obtain a PTIN. No new information was shared on the call with respect to whether or not the IRS planned to appeal the recent federal district court ruling in Adam Steele, et al. v. United States of America. The court decision affected the ability to charge for the PTIN, but did not shut down the system. Similarly, no new information was shared about any plans to … Read More


NSTPTreasury Inspector General for Tax Administration (TIGTA)

There has been general concern that there would be challenges with the third attempt at utilizing private collection agencies (PCAs), however, it was not suspected it would happen so soon. “It” is apparent disregard by some private debt collectors of the rules established in connection with the collection agencies’ latest congressionally mandated foray into federal tax collection. Private collection agencies are approving installment agreements with delinquent taxpayers beyond what the law provides, according to J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). Payment plan limits: There is a statutory limit as to how long an Internal Revenue Service installment loan is available, George told Representatives at a May 23 hearing of the House Appropriations Financial Services and General Government Subcommittee, “and we are finding initially that these debt collectors are not abiding by that.” IGeorge did not provide any additional details to the House panel. But the mere fact that the federal office charged with oversight of the IRS already has concerns about the private tax collectors is seen as, well, concerning. Spotty PCA tax collection history: While George did not offer any details on just how private collection agencies, or PCAs as they typically are referred to … Read More


NSTPInternal Revenue Service (IRS)

IR 2017-102 IRS has announced that, beginning June 15, 2017, the electronic payment website will be available for taxpayers to make the required user fee payments when they request letter rulings, closing agreements and certain other rulings from IRS. And, IRS announced, after August 15, 2017, will become the only permissible payment method for those fees. is a way to make electronic payments to Federal government agencies. Many common forms of payment are accepted, including credit cards, debit cards, and direct debit or electronic funds withdrawal from a checking or savings account. Fees will have to be paid electronically. IRS has announced that, while up until now ruling requesters could only make required user fee payments by check or money order, during a two-month transition period, June 15 to August 15, requesters will be able to choose to make user fee payments either through or by check or money order. And, after August 15, 2017, will become the only permissible payment method. Rulings described in Rev Proc 2017-1 and sent to the Docket, Records and User Fee Branch of the Legal Processing Division of the Associate Chief Counsel (Procedure and Administration) is affected by this … Read More