New Tax Transcript Process Updates

NSTPInternal Revenue Service (IRS), Transcript

New Tax Transcript Process Updates

New Tax Transcript Process Updates The IRS has updated some IRS.gov content to clarify issues regarding changes to the tax transcript distribution methods. As you may recall, in lieu of faxing tax transcripts, they will send certain transcripts into the practitioners’ e-Services secure mailbox. However, there is a time limit for those transcripts to be available in your mailbox. To avoid having to repeat your request, print or download the transcript immediately from your mailbox. The new language on the About the New Tax Transcript page is highlighted below in yellow: Employer Information for Tax Return Preparation and Electronic Filing If you are a taxpayer seeking to file a current or prior year tax return or a tax professional preparing a current or prior year return for a client, please remember that all financial entries on all transcript types are fully visible. If you are seeking a missing Form W-2 or Form 1099 information, there is a process for obtaining those current-year documents. If an unmasked Wage & Income transcript is necessary for tax return preparation and electronic filing, a tax professional may contact the Practitioner Priority Service line. An unmasked Wage and Income Transcript will fully display employers’ names, addresses and … Read More

IRS Temporarily Halting Passport Revocations for Some Taxpayers

NSTPInternal Revenue Service (IRS), Overdue Tax Bill

IRS to Temporarily Halt Passport Revocations for Some Taxpayers

IRS Temporarily Halting Passport Revocations for Some Taxpayers Memorandum for Taxpayer Advocate Service Employees NTA Blog In a memorandum to Tax Advocate Service (TAS) employees, the TAS has stated that the IRS will temporarily decertify taxpayers with open TAS cases. Decertification means that taxpayers with seriously delinquent tax debts will, temporarily, not be at risk of having their passports revoked by the State Department merely because of those seriously delinquent tax debts. Background. Code Sec. 7345 authorizes (but does not require) the IRS to certify a taxpayer's seriously delinquent tax debt to the State Department for the purposes of passport denial, limitation, or revocation. A seriously delinquent tax debt is an assessed individual tax liability exceeding $50,000 (adjusted for inflation) for which either a notice of federal tax lien has been filed or a levy has been made. IRS must also send a decertification to the Department of State where the certification was in error or where there is no longer a seriously delinquent tax debt. (Code Sec. 7345(b)) The Internal Revenue Manual provides details as to how the IRS certifies and decertifies a taxpayer. (IRM 13.1.24) A decertification protects the taxpayer's passport from being denied, limited, or revoked. The … Read More

Taxpayer Roadmap 2019, An Illustration of The Modern United States Tax System

NSTPIndividual Taxpayers, Internal Revenue Service (IRS), IRS Online Tools

Taxpayer Roadmap 2019, an Illustration of The Modern United States Tax System

Taxpayer Roadmap 2019, an Illustration of The Modern United States Tax System The Taxpayer Advocate Service (TAS) has mapped out the modern United States tax system – and it makes New York's subway system look simple. You can view a full size version as a PDF here. According to TAS, the map is intended to illustrate "the stages of a taxpayer’s journey through the tax system." The map highlights the complexity of tax administration, with its many connections, overlaps, and repetitions between stages. "It makes clear," explains TAS, "why the road to tax compliance isn’t always easy to navigate." The National Taxpayer Advocate (NTA), Nina Olson, released the map before her scheduled departure this year. "Anyone looking at this map will understand that we have an incredibly complex tax system that is almost impossible for the average taxpayer to navigate," Olson said. "I personally have spent dozens of hours designing and preparing this map, as have many members of my staff." Olson went on to make clear that there’s more to come. "For every step shown on the map, there are tens of steps and interactions that are impossible to represent in a single document," she explained. "Thus, TAS is working … Read More

ASAP: Taxpayers should check withholding

NSTPInternal Revenue Service (IRS), Paycheck Checkup

ASAP: Taxpayers Should Check Withholding

ASAP: Taxpayers should check withholding All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important: Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP. Taxpayers should also check their withholding when life changes occur. These changes include things like: Marriage or divorce Birth or adoption of a child Purchase of a home Retirement Chapter 11 bankruptcy New job or loss of job Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like: Interest Dividends Capital gains Self-employment and gig economy income IRA distributions, including … Read More

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