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

2018 TAX FILING SEASON BEGINS JANUARY 29, TAX RETURNS DUE APRIL 17

NSTPInternal Revenue Service (IRS)

The Internal Revenue Service has announced that the nation’s tax season will begin Monday, January 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February. The IRS will begin accepting tax returns on January 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15. Many software companies and tax professionals will be accepting tax returns before January 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns January 29, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds. The IRS set the January 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns. The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child … Read More

IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017

NSTPInternal Revenue Service (IRS)

The Internal Revenue Service is advising tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018.  A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.  State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed. The following examples illustrate these points. Example 1:  Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018.  On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018.   Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a … Read More