PROPOSED REGS REFLECT NEW HEAD OF HOUSEHOLD DUE DILIGENCE RULE FOR TAX PREPARERS

NSTP8867, Earned Income Tax Credit, Individual Taxpayers, Social Security, Tax Cut & Job Act, Tax Professionals, Tax Refund, TCJA, Uncategorized

Proposed regulations have been issued by the Internal Revenue Service that amend portions of previously proposed regulations to reflect the Tax Cuts and Jobs Act (TCJA) expansion of the scope of the tax return preparer due diligence penalty under Code Sec. 6695(g).

FREQUENT EITC-ABUSING PREPARERS PERMANENTLY ENJOINED FROM PREPARING RETURNS:

NSTPEarned Income Tax Credit, Individual Taxpayers, Internal Revenue Service (IRS), Penalties, Tax Professionals, Tax Professionals, Taxpayer, Uncategorized

A district court has permanently enjoined a pair of return preparers, who prepared thousands of federal income tax returns that falsified business income in order to boost the Earned Income Tax Credits (EITCs; also known as Earned Income Credits or EICs) that their clients could claim, from preparing tax returns for others.

INTERNAL REVENUE SERVICE WEBINAR

NSTPInternal Revenue Service (IRS)

Reporting of Foreign Bank and Financial Accounts on the Electronic FBAR Wednesday, August 30, 2017 2:00 p.m. Eastern; 1:00 Central; noon Mountain; 11:00 a.m. Pacific Just in time for those who need to file the FBAR by the October 15, 2017 extension date Free one-hour broadcast for: • Tax practitioners Topics include: • Identifying who must file the FBAR • Determining what accounts must be reported on the FBAR • Knowing when to file the FBAR • Explaining how to file the FBAR • Sharing answers to frequently asked questions • Answering your questions during live Q&A session Register for the webinar Earn one continuing education credit – category: federal tax  To receive a certificate of completion and CE credit, you must: • View the live presentation on 8/30/17 for at least 50 minutes from the start of the program. • To confirm your attendance and receive your certificate of completion, view the presentation while signed in using the same email address used to register; you will not receive credit by watching this webinar on someone else’s computer. • Groups cannot register with one email address and receive separate certificates; each person must register separately. • Look for your certificate of … Read More

Taxpayers with Foreign Assets may have U.S. Tax Filing Requirements

NSTPInternal Revenue Service (IRS), Tax Professionals, Tax Refund, Taxpayer

The IRS has reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2014, that they may have a U.S. tax liability and a filing requirement in 2015. Most People Abroad Need to File A filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the foreign earned income exclusion or the foreign tax credit , that substantially reduce or eliminate their U.S. tax liability. These tax benefits are not automatic and are only available if an eligible taxpayer files a U.S. income tax return. The filing deadline is Monday, June 15, 2015, for U.S. citizens and resident aliens whose tax home and abode are outside the United States and Puerto Rico, and for those serving in the military outside the U.S. and Puerto Rico, on the regular due date of their tax return. To use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies. See U.S. Citizens and Resident Aliens Abroad for details. Nonresident aliens who received income from U.S. sources in 2014 also must determine whether they have a U.S. tax obligation. … Read More

IRS Commissioner Supports Simplification of Tax Code

NSTPInternal Revenue Service (IRS), NSTP Education, Tax Professionals, Taxpayer

Koskinen acknowledged that the tax code is difficult even for tax experts. “We have to simplify the tax code. It is beyond being impenetrable. I don’t know how anyone understands all the ramifications of it,” he told the audience. “I think the pressure is building from the public to do something about the complexity of the tax code.” At the same time, Koskinen does not believe it will happen anytime soon if it does not happen in 2015; 2016 is a nonstarter because it is a presidential election year. He predicted that, if not this year, than it will likely happen within the next five years. He advised that, over that time period, there will be people working on it in great detail. “I would simply say that it’s instructive if you look at both the House and Senate at the number of individual congressmen and senators who have taken a position that tax reform is important, either for corporations or for corporations and individuals as well. You would almost think there is a quorum there if you could pull them all together for it.” Koskinen spoke of his excellent working relationship with House Ways and Means Committee Chairman Paul … Read More