CONGRESS PASSES BILL PROVIDING INCOME EXCLUSION FOR AWARDS TO OLYMPIANS

NSTPCongress

On September 29, the Senate approved by unanimous consent H.R. 5946, the “United States Appreciation for Olympians and Paralympians Act”. The House had previously passed the measure on September 22 by a vote of 415-1. The bill eliminates the tax on medals or other prizes awarded to Team USA athletes during the Olympic and Paralympic games for those athletes whose adjusted gross income does not exceed $1 million ($500,000 for a married individual filing a separate return). The bill now goes to the president who is expected to sign the legislation into law.

IRS GIVES TAX RELIEF TO VICTIMS OF HURRICANE MATTHEW; MANY EXTENSION FILERS IN NORTH CAROLINA NOW AFFECTED; RELIEF FOR OTHER STATES EXPECTED SOON

NSTPHurricane Matthew, Internal Revenue Service (IRS), Natural Diaster

North Carolina storm victims will have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, with similar relief expected soon for Hurricane Matthew victims in other states, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Following this week’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS said that affected taxpayers in Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt and Robeson counties will receive this and other special tax relief. Locations in other states are expected to be added in coming days, based on damage assessments by FEMA. The tax relief postpones various tax filing and payment deadlines that occurred starting on October 4, 2016. As a result, affected individuals and businesses will have until March 15, 2017, to file returns and pay any taxes that were originally due during this period. This includes the January 17, 2017 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until October 17, 2016. The IRS … Read More

TAX RELIEF FOR VICTIMS OF HURRICANE HERMINE IN FLORIDA

NSTPTax Relief

  Victims of Hurricane Hermine, on August 31, 2016, in parts of Florida may qualify for tax relief from the Internal Revenue Service.   The President has declared that a major disaster exists in the State of Florida. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced that affected taxpayers in the counties of Citrus, Dixie, Hernando, Hillsborough, Leon, Levy, Pasco and Pinellas will receive tax relief. Individuals who reside or have a business in Citrus, Dixie, Hernando, Hillsborough, Leon, Levy, Pasco and Pinellas may qualify for tax relief.   The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after August 31, and on or before January 17, 2017, have been postponed to January 17, 2017.  This includes individual returns on extension to October 17, the September 15 deadline for making quarterly estimated tax payments, the 2015 corporate and partnership returns on extension through September 15, and for quarterly payroll and excise tax returns.   In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on … Read More

IRS PROVIDES FAQ’s REGARDING CHANGES TO e-SERVICES

NSTPe-Services, Internal Revenue Service (IRS)

  Set yourself APART! Participate in the Annual Filing Season Program. The voluntary program is for non-credentialed return preparers who aspire to a higher level of professionalism. The Annual Filing Season Program promotes the importance of education and filing season preparation for return preparers without professional credentials. We encourage you to take time to review the requirements and consider participating for the upcoming 2017 filing season.   What is planned? In late October – target date October 24 – the IRS will strengthen the protections for e-services accounts by requiring a stronger identity verification process for existing and new e-services users. Existing e-services users will be required to re-register and verify their identities, most through the new Secure Access platform. You must revalidate your identity to maintain access to e-services products.   Who is affected? Anyone who currently has an e-services account is affected. This includes individuals who are registered as:  Electronic Return Originators, Transmitters, Large Business Taxpayers with e-file mandates, Software Developers, ACA insurance provider fee/Branded prescription drug filers, ACA Information Return Transmitter/Issuer, Reporting agents, Not for Profit (VITA/TCE/LITC) users, States that use Transcript Delivery Service, and IVES Participants. E-services account holders who only use TIN Matching will also … Read More

ARCHIVED IRS WEBINAR: PROTECT YOUR CLIENTS; PROTECT YOURSELF FROM DATA THEFT

NSTPData Theft, Internal Revenue Service (IRS)

Webinar description: Security Summit initiatives for FY 2017, including enhancing tax professional awareness of client data safeguards Increase awareness of legal requirements and best practices to better protect taxpayer information Learn more about emerging scams from our Criminal Investigation expert Outline steps tax professionals should take if they suffer a loss of taxpayer data

W-2 AND 1099 FILING DEADLINES CHANGED FOR FILING YEAR 2017

NSTP1099-MISC, W-2

The deadlines for filing the Form W-2 with the Social Security Administration and the Form 1099-MISC with the Internal Revenue Service are changing next year.   Starting in 2017, for the 2016 reporting year, both the W-2 and 1099-MISC recipient copies must be submitted by January 31, 2017 whether by paper or electronic filing. And just to make it more interesting, the new filing deadline, as it relates to Form 1099-MISC, only affects filers that report nonemployee compensation payments in box 7.   Historically, filers have been required to provide both W-2 and 1099-MISC forms to their recipients by January 31. However, in the past they were not required to submit the forms to the Social Security Administration or the IRS until February 28 for paper forms or March 31 for e-filing.   Before the deadline change, businesses would be able to file W-2 and 1099-MISC recipient copies first and then wait to learn if any changes are needed before filing with the Social Security Administration or the IRS, which reduced the risk for possible corrections. Unfortunately, due to the change in due dates, businesses might need to abandon that strategy and consider filing with the recipients and the SSA … Read More