Form W-2 Verification Code Pilot Discontinued by IRS; Replaced by Early Reporting – IRS Thanks All Participants Because of new wage and income reporting requirements, the IRS announced it would discontinue the Form W-2 Verification Code pilot for the 2019 tax year. Federal law now requires employers to submit Forms W-2 by January 31 each year, which helps the IRS combat fraud and identity theft and supersedes the need for a verification code. The IRS expresses its appreciation to the many stakeholders, especially the payroll service providers and industry software developers, who joined in the verification code project. Find more details on the W-2 Verification Code webpage on IRS.gov.
Webinars Open the Door to Learning Why take an NSTP tax webinar? Top quality NSTP continuing education! Learn from your own home, office, or coffee shop! You don’t have to travel! Earn all the CE credits you need at a very low cost. Each webinar comes with an NSTP book in PDF form, so you have a permanent resource. Live webinars have an instructor present, and you are given ample opportunity to ask questions and get your answers in live time! Register today for an NSTP webinar! You’ll be glad you did! Check out these great Webinar choices! Tax Court Cases That Impact Your Practice – 4 CE 10-15-2019 10:00am-2:00pm PT Instructor: Paul La Monaca, CPA, MST NSTP Member $169 Non-Member $199 Register or more information Subchapter S Challenges Before and After the Creation of §199A Qualified Business Income – 4 CE 10-17-2019 10:00am-2:00pm PT Instructor: Paul La Monaca, CPA, MST NSTP Member $169 Non-Member $199 Register or more information Issues Concerning the “Repair Regulations” on Tangible Property and the Impact on Small Business – 1 CE 10-18-2019 10:00am-11:00am PT Instructor: Paul La Monaca, CPA, MST NSTP Member $39 Non-Member $59 Register or more information Ethics for the Tax Professional … Read More
199A QBI Safe Harbor Deduction on Rental Real Estate in New IRS Revenue Procedure The Internal Revenue Service issued Revenue Procedure 2019-38 that has a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction under section 199A of the Internal Revenue Code (section 199A deduction). If all the safe harbor requirements are met, an interest in rental real estate will be treated as a single trade or business for purposes of the section 199A deduction. If an interest in real estate fails to satisfy all the requirements of the safe harbor, it may still be treated as a trade or business for purposes of the section 199A deduction if it otherwise meets the definition of a trade or business in the section 199A regulations. This safe harbor is available for taxpayers who seek to claim the section 199A deduction with respect to a “rental real estate enterprise.” Solely for purposes of this safe harbor, a rental real estate enterprise is defined as an interest in real property held to generate rental or lease income. It may consist of an … Read More
New Tax Gap Estimates Released by IRS; Compliance Rates Remain Substantially Unchanged from Prior Study The Internal Revenue Service released a new set of tax gap estimates on tax years 2011, 2012 and 2013. The results show the nation's tax compliance rate is substantially unchanged from prior years. The gross tax gap is the difference between true tax liability for a given period and the amount of tax that is paid on time. "Voluntary compliance is the bedrock of our tax system, and it’s important it is holding steady," said IRS Commissioner Chuck Rettig. "Tax gap estimates help policy makers and the IRS in identifying where noncompliance is most prevalent. The results also underscore that both solid taxpayer service and effective enforcement are needed for the best possible tax administration.” The average gross tax gap was estimated at $441 billion per year based on data from tax years 2011, 2012 and 2013. After late payments and enforcement efforts were factored in, the net tax gap was estimated at $381 billion. The tax gap estimates translate to about 83.6%, of taxes paid voluntarily and on time, which is in line with recent levels. The new estimate is essentially unchanged from a … Read More
NSTP’s Annual Federal Tax Update & Review Course is an in-depth study of Federal Tax Law and Tax Updates for 2019 and beyond. This course reviews Federal Income Tax Law and introduces the participants to changes made due to new legislation and IRS Regulations, Revenue Rulings, Procedures and Tax Court Cases. It will discuss the Tax Cuts and Jobs Act provisions such as §199A, §172 NOL Limitations, §461(l) Loss Limitations for noncorporate taxpayers and more. Learning Objectives: This course will enable participants with updated knowledge to prepare 2019 Federal Income Tax Forms and provide clients with proper planning strategies. Participants will be able to differentiate Federal Tax Law changes from the previous year, identify updated forms and rule changes, and apply rules of Federal Tax Law to preparing tax returns. For all course details, or to register, please visit our Federal Tax Update & Review page at NSTP.com.
Tax-related Property Lien Scam With scam artists hard at work all year, taxpayers should watch for new versions of tax-related scams. One such scam involves fake property liens. It threatens taxpayers with a tax bill from a fictional government agency. Here are some details about the tax-related property lien scam that will help taxpayers recognize it: This scheme involves a letter threatening an IRS lien or levy. The scammer mails the letter to a taxpayer. The lien or levy is based on bogus overdue taxes owed to a non-existent agency. The non-existent agencies might have a legitimate-sounding name like the “Bureau of Tax Enforcement.” There is no such agency. This scam may also reference the IRS to confuse potential victims into thinking the letter is from a real agency. Anyone who doesn’t owe taxes and has no reason to think they do should: Contact the Treasury Inspector General for Tax Administration to report the letter. The taxpayer should use their IRS Impersonation Scam Reporting web page. When reporting the scam, they should include the key words “IRS Lien.” Scan a document received as a letter or fax, and send it to email@example.com. Report it to the Federal Trade Commission using … Read More