New Form 1099-NEC Draft is Released by IRS

NSTPForm 1099-NEC, Internal Revenue Service (IRS)

New Form 1099-NEC Draft Released by the IRS

New Form 1099-NEC Draft is Released by IRS Editor’s Note: Under the heading of “It’s About Time” the IRS has issued a new form to report the payments to independent contractors. The current Form 1099-MISC has two due dates: January 31st for payments reported in Box 7 and February 28th (or March 31st if electronically filed) for all other payments reported. The new form will not be available until 2021 for payments made in 2020. IRS has released a draft of a new form, Form 1099-NEC, Nonemployee Compensation, to report nonemployee compensation paid in 2020. Previously, nonemployee compensation was reported on Form 1099-MISC, Miscellaneous Income. Background. If the following four conditions are met, a payor must generally report a payment to the IRS as nonemployee compensation (NEC): The payor made the payment to someone who is not the payor's employee. The payor made the payment for services in the course of the payor's trade or business (including government agencies and nonprofit organizations). The payor made the payment to an individual, partnership, estate, or, in some cases, a corporation. The payor made payments to the payee of at least $600 during the year. (2019 Instructions to Form 1099-MISC) For NEC payments … Read More

Summer Webinars – Get ‘Em While It’s HOT!!

NSTPInternal Revenue Service (IRS), Webinars

Summer Webinars - Get 'Em While It's HOT!!

Summer Webinars – Get 'em while it's HOT! Cool off with the best tax instruction out there from the comfort of your home, favorite cafe, or pool! To register or for more course details, please visit the NSTP website. PP. Transactions Allowing the Exclusion and Deferral of Federal Income Tax, 2 CE August 2, 2019, 10 am-12:15 pm PT Instructor: Paul La Monaca, CPA, MST This course discusses the federal income tax provisions allowing taxpayers to enter into transactions which do not require gains to be included in gross income and other transactions which allow the deferral of gains and losses into future tax years To register or for more course details, please visit the NSTP website. GG. §1031 Like-Kind Exchanges After the Tax Cuts and Jobs Act, 1 CE August 2, 2019, 12:30 pm-1:45 pm PT Instructor: Paul La Monaca, CPA, MST This course introduces the tax professional to the revision of the rules provided under the Internal Revenue Code addressing §1031 Like-Kind Exchange transactions after the enactment of the Tax Cuts and Jobs Act for transactions in tax years beginning after December 31, 2017. To register or for more course details, please visit the NSTP website. II. Starting A Tax Exempt … Read More

Form 5500 Series Due Date is July 31

NSTPInternal Revenue Service (IRS), Retirement

Form 5500 Series Due Date is July 31

Form 5500 Series Due Date is July 31 July 31 is the deadline for employee benefit plans, such as pension, profit-sharing and stock bonus plans, to file a Form 5500 series form for calendar year 2018. The 5500 series forms are Form 5500, Annual Return/Report of Employee Benefit Plan; Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan, which may be used by plans with fewer than 100 participants; and Form 5500-EZ, Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan. (IRS website, "Form 5500 Corner") A one-time extension of time to file a Form 5500 series return for up to 2-1/2 months will be automatically granted if a properly completed Form 5558 (Application for Extension of Time to File Certain Employee Plan Returns) is filed on or before the normal due date of the return. A separate Form 5558 must be filed for each plan requesting an extension, even when maintained by the same employer. (Instructions to Form 5558, Application for Extension of Time To File Certain Employee Plan Returns (Rev. Sept 2018)) Forms 5500 and 5500-SF must be filed electronically via the EFAST2 system, while Forms 5500-EZ and 5558 must … Read More

Taxes-Security-Together Checklist – Step 1 of Tax Security 2.0

NSTPInternal Revenue Service (IRS), Security

Tax Security 2.0 - A 'Taxes-Security-Together Checklist - Step 1

TAX SECURITY 2.0 – A ‘TAXES-SECURITY-TOGETHER’ CHECKLIST – STEP 1: IRS, states and industry outline ‘Security Six’ protections to help tax professionals and taxpayers be safer online Using a new “Taxes-Security-Together” Checklist, the Internal Revenue Service and the Security Summit partners urged tax professionals to review critical security steps to ensure they are fully protecting their computers and email as well as safeguarding sensitive taxpayer data. In the first of a five-part weekly series, the initial step on the checklist involves the “Security Six” protections. These steps fall into several major security categories. “These six steps are simple actions that anyone can take,” said IRS Commissioner Chuck Rettig. “The important thing to remember is that every tax professional, whether a sole practitioner or a partner in a large firm, is a potential target for cybercriminals. No tax business should assume they are too small or too smart to avoid identity thieves.” Although the Security Summit – a partnership between the IRS, states and the private-sector tax community – is making major progress against tax-related identity theft, cybercriminals continue to evolve, and data thefts at tax professionals’ offices continue. Thieves use stolen data from tax practitioners to create fraudulent returns that … Read More

IRS Virtual Currency Letters to be Mailed to 10,000 Taxpayers

NSTPDigital Currency, Internal Revenue Service (IRS)

IRS Mailing Virtual Currency Letters to 10,000 Taxpayers

IRS Virtual Currency Letters to be Mailed to 10,000 Taxpayers Starting at the end of July and through the month of August, the Internal Revenue Service will be sending Virtual Currency soft letters to over 10,000 taxpayers. There are three different letters, intended to be educational to those receiving the information. What does the virtual currency letter mean and need I do anything if I receive one? The action required of the taxpayer depends on the letter you receive. Letter 6174 is called a soft letter and intended to educate taxpayers. It will include information about: The taxability of virtual currency transactions The forms likely required to report the virtual currency transactions The resources available on the topic It doesn’t require a response Indicates amended returns would be required if the taxpayer determines virtual currency transactions have not been reported properly Letter 6174A is also a soft letter intended to educate the taxpayer and will include information about: The taxability of virtual currency transactions The forms likely required to report the virtual currency transactions Instructions about how to report the transactions There is likely to be enforcement in the future The resources available on the topic It doesn’t require a … Read More

Trump Signs Taxpayer First Act Into Law

NSTPInternal Revenue Service (IRS), Taxpayer First Act

Trump Signs Taxpayer First Act Into Law; IRS Reform Legislation Bipartisan

Trump Signs Taxpayer First Act Into Law President Trump on July 1 signed into law a sweeping, bipartisan IRS reform bill known as the Taxpayer First Act of 2019 (HR 3151). The IRS reform legislation aims to broadly redesign the IRS for the first time in over 20 years. Reworked IRS Reform Bill The Senate approved the Taxpayer First Act of 2019 by voice vote on June 13. The measure was unanimously approved in the House on June 10. The reworked IRS reform bill, originally introduced in the last Congress, was revised in early June after the House passed a prior version in April. However, the original House-approved Taxpayer First Bill (HR 1957) was quickly doomed in the Senate because of recent controversy surrounding the IRS’s Free File program. The provision codifying the IRS’s Free File program was removed from the original bill and the measure was reintroduced as HR 3151. Congress then quickly sent it to the president’s desk. Taxpayer First Act Provisions Generally, the Taxpayer First Act aims to reform the IRS into a more taxpayer-friendly agency. The measure requires the IRS to develop a comprehensive customer service strategy, as well as a plan to redesign the Service’s … Read More