IRS Nationwide Tax Forums Coming to a City Near You

NSTPInternal Revenue Service (IRS)

2019 IRS Nationwide Tax Forums Coming to a City Near You

NSTP is pleased to once again be presenting during the IRS Tax Forums. Be sure to come hear the two timely topics we will be discussing, visit us in the National Tax Forum (NTF) Exhibit Hall and follow us on Twitter to discuss your questions, observations and concerns. Tax Cuts and Jobs Act: Things Learned During the 2019 Filing Season This course discusses the experiences realized after actually applying the provisions that were changed, created, repealed and temporarily suspended as a result of enacting TCJA. The course will review the winners, the losers, updated forms and challenges encountered. The course will discuss planning issues and federal tax policy issues dealing with individuals, corporations, partnerships and the underlying investors. Learning Objectives: At the completion of the course, participants will understand the impact of the changes made by the TCJA and the need to provide more tax planning opportunities for individuals, partnership and corporate clients. Presented by the National Society of Tax Professionals. Properly Substantiating the §199A Qualified Business Income This presentation provides tax professionals with information to educate their clients on the importance of understanding what is required for substantiating the §199A deduction. The course will discuss the proper substantiation for … Read More

Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

NSTPInternal Revenue Service (IRS), Passports

Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

Taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. To avoid delays in travel plans, taxpayers need to take prompt action to resolve their tax debt. In January of last year, the IRS began implementing new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act. The law requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt, which is $52,000 or more. The law also requires State to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit ability to travel outside the United States. When the IRS certifies a taxpayer to the State Department as owing a seriously delinquent tax debt, they receive a Notice CP508C from the IRS. The notice explains what steps a taxpayer needs to take to resolve the debt. Please note, the IRS doesn’t send copies of the notice to powers of attorney. IRS telephone assistors can help taxpayers resolve tax debt, for example, they can help taxpayers … Read More

FYI: Who Shoulders the Burden of Federal Income Taxes?

NSTPInternal Revenue Service (IRS), Taxpayer

FYI: Who Shoulders the Burden of Federal Income Taxes?

From an internet article posted by Erica York with the Tax Foundation Data from the Internal Revenue Service (IRS) shows us who pays federal income taxes. As illustrated below, higher-income taxpayers are responsible for paying a significantly higher share of the tax, and this trend has increased over the past three decades. For instance, in 2016, the top 1 percent of taxpayers paid about 37 percent of federal income taxes, more than twelve times the tax burden of the bottom half of taxpayers. The bottom 90 percent of taxpayers accounted for about 45 percent of the overall tax burden in 1986, compared to approximately 31 percent in 2016. Conversely, the top 10 percent of taxpayers have seen an increase in their tax burden over the same period, from 55 percent of total income taxes in 1986 to almost 70 percent in 2016. Average tax rates, which are income tax liabilities divided by income, are another way to illustrate the current tax system. Using IRS data, we see that the top 1 percent of taxpayers paid a rate much higher than the average taxpayer, while the remaining 99 percent of taxpayers paid below the average rate. The top 1 percent paid … Read More

IRS Finalizes Centralized Partnership Audit Regulations

NSTP2019 Tax Season, Internal Revenue Service (IRS), Partnerships, TEFRA

IRS Finalizes Centralized Partnership Audit Regulations

The IRS on February 15 issued final regulations (T.D. 9844) that implement the centralized partnership audit regime that now governs partnership audit procedures. Centralized Partnership Audit Regime: The new rules are aimed at increasing the rate of partnership audits by reducing the challenges facing the IRS under TEFRA. The scope of the new regime includes all items required to be shown on the partnership return, including adjustments to items of income, gain, deduction, loss or credit, and each partner’s distributive share thereof. Additionally, in a departure from the TEFRA regime, which traditionally passed through items of income and loss to investors, the new regime places the liability on the partnership, which will now be liable for the tax in the year an adjustment is made. The tax is assessed at the highest tax rate in effect at that time for the particular item. Additionally, there are mandatory consistent reporting requirements, partnership level proceedings, and a requirement to designate a representative for proceedings. It is anticipated that state and local revenue agencies will adopt similar rules as they issue updated guidance. The final regulations affect partnerships for tax years beginning after December 31, 2017, and ending after August 12, 2018, as … Read More