R-2019-06, January 25, 2019 WASHINGTON — With today marking national EITC Awareness Day, the Internal Revenue Service wants to remind workers about the Earned Income Tax Credit and to correctly claim this important credit if they qualify. The IRS and community partners nationwide holds EITC Awareness Day each year to alert the millions of workers who may be missing out on this valuable tax credit. Partners will be sharing information and holding events across the country today and in the days ahead. “The Earned Income Tax Credit makes a big difference for working families across the country,” said IRS Commissioner Chuck Rettig. “We encourage people to carefully review the EITC instructions to see if they qualify for this important credit when they prepare their taxes. The IRS also appreciates the continued effort of our partners across the nation who share information and raise awareness about EITC for people who may qualify.” Eligible families with three or more qualifying children could get a maximum credit of up to $6,431. EITC for people without children could mean up to $519 added to their tax refund. The IRS recommends that all workers who earned around $54,000 or less learn about EITC eligibility and … Read More
Mark your calendar! Join your colleagues, NSTP, 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… 2019 IRS FORUM DATE 2019 LOCATION 2019 HOTEL & ADDRESS July 9-11, 2019 NATIONAL HARBOR IRS FORUM Gaylord National Hotel and Convention Center 201 Waterfront Street National Harbor, MD 20745 July 23-25, 2019 CHICAGO IRS FORUM Hyatt Regency Chicago 151 E Upper Wacker Drive Chicago, IL 60601 August 6-8, 2019 NEW ORLEANS IRS FORUM Hyatt Regency New Orleans 601 Loyola Avenue New Orleans, LA 70113 August 13-15, 2019 ORLANDO IRS FORUM Hyatt Regency Orlando 9801 International Drive Orlando, FL 32819 September 17-19, 2019 SAN DIEGO IRS FORUM Town & Country Resort and Convention Center 500 Hotel Circle North San Diego, CA 92108 Registration will open on March 1, 2019. Visit the IRS Forum webpage for more information.
During a meeting of the American Bar Association, Nina Olson commented that procedures in place to revoke passports for those with a tax liability are raising a constitutional issue that could be used against the Internal Revenue Service. She has argued that individuals need more time to come into compliance before the State Department is notified that their passports should not be issued, renewed or in some cases revoked. The program has been in place for nearly a year and was mandated by the Fixing America’s Surface Transportation Act (FAST Act). Upon receiving certification, the State Department shall deny a passport application and/or may revoke a current passport. If the passport application is denied or revoked and the taxpayer is overseas, the State Department may issue a limited validity passport good only for direct return to the United States. Currently, taxpayers get a final notice by the IRS that they are about to lose their passports at roughly the same time as their tax debts have resulted in a notice to the State Department. In some cases, taxpayers have paid their debts, but the IRS database has not been updated by the time the State Department is notified. She also … Read More
A draft of Publication 535 Business Expenses, was released on January 7th to include instructions and worksheets for the Qualified Business Income Deduction. The preamble includes the following: “For tax years beginning after 2017, individual taxpayers and some trusts and estates may be entitled to a deduction of up to 20% of their QBI from a trade or business, including income from a pass-through entity, but not from a C corporation, plus 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. The deduction is subject to multiple limitations, such as the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid by the trade or business, and the unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business. The deduction can be taken in addition to the standard or itemized deductions. For more information, see section 199A, Notice 2018-64, and Regulations sections 1.199A-1 through 1.199A-6.” On the question regarding the treatment of rental properties the following appears on Page 2 of the draft publication: “Determining your qualified trades or businesses. Your qualified trades and businesses include your section 162 trades or businesses, other … Read More
The tax filing season will begin on January 28, in line with previous year’s start dates, despite a partial government shutdown that has only a fraction of the IRS’s staff working, the agency said January 7. The IRS has been testing computer systems during the shutdown, which began Dec. 22, with a bare-bones staff. About 12.5 percent of the agency’s employees are working during the shutdown. Tax refunds will be issued during the shutdown, a reversal of the agency’s policy in recent years, Russell Vought, acting director of the White House Office of Management and Budget, said January 7. In previous shutdown contingency plans, the IRS would accept tax returns during the filing season, but refunds would be delayed until the government was funded. Vought said the administration is fixing what he called a problem faced by past administrations. In the past, the IRS has said it couldn’t issue refunds during a shutdown based on its interpretation of the Anti-deficiency Act, the rules governing what type of government work is permissible during a shutdown to protect life and property. In light of the political popularity of allowing refunds to be processed during the shutdown, it is unlikely OMB would challenge … Read More