Tax ID Theft Victims Fraudulent Return Copy Available

NSTPInternal Revenue Service (IRS)

Tax ID Theft Victims Fraudulent Return Copy Available

Tax ID Theft Victims Fraudulent Return Copy Available As part of its continuing efforts to fight cyber tax crime, the Internal Revenue Service launched a new web page, Identity Theft Central. Among the areas this new IRS.gov section covers, is what to do if you're a victim of tax identity theft. This includes the process of getting a copy of a fraudulent return that was filed in your name. In the case of a 1040 filed by someone pretending to be a taxpayer in order to get a fraudulent refund, most would want to see a copy of the fraudulent return. In response to taxpayer requests, the agency's Fraudulent Return Request Program will send you a copy of the fake return if you are an ID theft victim. Following are the steps to be followed: The form must be completed with your real identifying data. This includes: Your name and Social Security number Your mailing address Tax year(s) of the fraudulent return(s) you are requesting Due to federal privacy laws, you can request the fraudulent return only if your Social Security number was the one used as either the primary or secondary taxpayer on the fraudulent return. Those privacy restrictions mean … Read More

Tax-Exempt Organizations UBIT Refund Guidance

NSTPInternal Revenue Service (IRS)

Tax-Exempt Organizations UBIT Refund Guidance

Tax-Exempt Organizations UBIT Refund Guidance On its website, the IRS has posted instructions for how exempt organizations can claim a refund or credit of the unrelated business income tax they paid with respect to qualified transportation fringe benefits. This fringe benefits provision was retroactively repealed by legislation enacted in December 2019. Background. Before it was repealed, Code Sec. 512(a)(7) required the unrelated business taxation income (UBTI) of tax-exempt organizations, i.e., the base used in computing the UBIT, to be increased by expenses related to qualified transportation fringe benefits (the so-called "church parking tax"). The Code section applied to amounts paid or incurred after December 31, 2017. How to claim a refund or credit resulting from the retroactive repeal. To claim a refund or credit of the UBIT reported on Form 990-T for 2017 or 2018 under Code Sec. 512(a)(7), file an amended Form 990-T as described in the form's instructions and do the following as well: Write "Amended Return" at the top of Form 990-T. If the amended return is being filed only to claim a refund, credit, or adjust information due to the repeal of Code Sec. 512(a)(7), write "Amended Return – Section 512(a)(7) Repeal." Complete the Form 990-T as you … Read More

Online Tax Withholding Estimator Revised by IRS

NSTPInternal Revenue Service (IRS)

Online Tax Withholding Estimator Revised by IRS

Online Tax Withholding Estimator Revised by IRS The Tax Withholding Estimator, an online tool for employees to use to calculate the amount they want withheld from their pay for federal income tax purposes, has been updated by the IRS. For several years, the IRS website had an online worksheet, the Tax Withholding Calculator, to calculate the amount that an employee wanted to be withheld from his or her paycheck. The Calculator was updated to reflect changes made by the Tax Cuts and Jobs Act for 2019. Last year, the IRS replaced the Calculator with the Tax Withholding Estimator. If an adjustment is needed to an employee's paycheck withholding, the Tax Withholding Estimator (Estimator) gives specific recommendations on how to fill out their employer's online Form W-4, Employee's Withholding Certificate, or provides a PDF of Form W-4 with key parts filled out. The Estimator can be found here. The IRS has revised the Estimator to incorporate the changes from the redesigned Form W-4. See IRS FAQs on the final version of 2020 Form W-4. To help workers more effectively adjust their withholding, the revised Estimator features a customized refund slider that allows users to choose the refund amount they prefer from a range … Read More

IRS Field Revenue Officers and How to Confirm Their Identity If They Come Knocking at Your Door: a TAS Tax Tip

NSTPInternal Revenue Service (IRS)

IRS Field Revenue Officers and How to Confirm Their Identity

IRS Field Revenue Officers and How to Confirm Their Identity If They Come Knocking at Your Door: a TAS Tax Tip The Internal Revenue Service (IRS) has begun conducting face-to-face meetings with individual and business taxpayers as a part of a special compliance effort entitled Revenue Officer Compliance Sweep (ROCS). This is an extremely high priority effort where IRS field revenue officers (RO’s) will be working to resolve compliance issues, including missing tax returns and taxes owed, with a special emphasis on payroll taxes. The RO’s will visit areas where there is little to no IRS presence. They will interview taxpayers while gathering financial information to help them become compliant now and remain so in the future. The new effort began Wisconsin, Texas, and Arkansas and will eventually rollout nationwide. To avoid confusion with IRS scam artists and other imposters, the IRS will announce general details about these efforts in specific locations as an important step to raise community awareness around IRS activity during a specified time. Visits from IRS agents shouldn't be confused as a scam. Here’s what to look for: Taxpayers may receive an appointment letter requesting certain information and providing an opportunity to call the IRS to … Read More

Form 1040-SR Filing Option Available for Seniors

NSTPInternal Revenue Service (IRS)

Form 1040-SR, Filing Option Available for Seniors

Form 1040-SR, Alternative Filing Option Available for Seniors The Internal Revenue Service wants seniors to know about the availability of a new tax form, Form 1040-SR, featuring larger print and a standard deduction chart with a goal of making it easier for older Americans to read and use. The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. Taxpayers age 65 or older now have the option to use Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability. Taxpayers who electronically file Form 1040-SR may notice the change when they print their return. More than 90% of taxpayers now use tax software to prepare and file their tax return. Taxpayers born before January 2, 1955, have the option to file Form 1040-SR whether they are working, not working or retired. The form allows income reporting from other sources common to seniors such as investment income, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements.  Seniors can use Form 1040-SR to file their 2019 federal income tax return, which is due April 15, 2020. All lines and checkboxes on Form 1040-SR mirror the … Read More

Form 1023 Electronic Filing Submission Now Available

NSTPInternal Revenue Service (IRS)

Form 1023 Electronic Filing Submission Now Available

Form 1023 Electronic Filing Submission Now Available As part of an ongoing effort to improve service for the tax-exempt community, the Internal Revenue Service has revised Form 1023, Application for Recognition of Exemption Under Section 501(C)(3) of The Internal Revenue Code, to allow electronic filing for the first time starting later this month.  “Filing electronically reduces errors, and we believe this will help provide a smoother application process for those seeking tax exemption,” said Tammy Ripperda, Commissioner of the IRS Tax Exempt and Government Entities division. “As we’ve seen with the 1023-EZ, we believe this change will help with application processing time and help with our wider efforts to improve our work with the tax-exempt community.” The IRS expects the electronic Form 1023 benefits to mirror those realized when Form 1023-EZ went online in 2014. IRS statistics show the 1023-EZ improved application processing time for both the Form 1023 and 1023-EZ while maintaining similar approval and rejection rates between the two forms. Beginning January 31, 2020, applications for recognition of exemption on Form 1023 must be submitted electronically online at www.pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form … Read More