The IRS has reopened following the end of the government shutdown, and IRS employees are working hard to resume normal operations and help taxpayers as much as possible. As the IRS resumes operations, there are some important pieces of information for taxpayers and tax professionals to keep in mind in several areas: Audits. For taxpayers and tax professionals with questions about examinations affected by the shutdown, we have Frequently Asked Questions. The IRS also had advice for taxpayers who had planned to send material to their IRS auditor but didn’t because of the government shutdown. The IRS recommended that If taxpayers have already assembled the requested material, they can immediately send the material to their auditor. “You may call your auditor to discuss any items on your document request if you need clarification,” said the IRS. “Your auditor will also be reaching out to you to re-establish contact in the next several business days. During this contact, your auditor will be able to answer questions you have and will address the time frame on when the requested information is due.” Collections. For taxpayers and tax professionals with collection issue affected by the shutdown, visit the Frequently Asked Questions. This section … Read More
The 2019 tax filing season started on Monday, January 28. That’s when the Internal Revenue Service started accepting and, more importantly, processing tax returns. Mark your calendars for this year’s key filing dates: January 28, 2019: Filing season 2019 begins. If a taxpayer filed early, either using Free File, tax software on their own or with the help of a paid tax preparer, the returns have been on hold and should now be sent and enter the IRS processing system. January 31, 2019: This is the deadline for employers to mail their workers the Forms W-2 and for 1099 forms to be issued with details of contract payments, investment income and retirement plan distributions. Today also is important if a taxpayer did not make their last 2018 tax year estimated tax payment by January 15. If they file the full tax return for the year by January 31 and pay any tax due with the filing, they will avoid any penalty for late payment of the last installment. This is a little less pressing this year, since the IRS has announced it’s granting some underpayment leeway due to confusion created by the changes under the Tax Cuts and Jobs Act. February 15, 2019: For financial institutions, this … Read More
IRS has announced that it successfully opened the 2019 tax-filing season on Monday, January 28, 2019, as planned. Projected timing of refund payments. IRS expects the first refunds to go out in the first week of February and many refunds to be paid by mid-to-late February like previous years. IRS expects to issue more than nine out of 10 refunds in less than 21 days. However, it’s possible a tax return may require additional review and take longer. IRS’s Where’s My Refund has the most up to date information available about refunds. The tool is updated only once a day, so taxpayers don’t need to check more often. IRS also notes that refunds, by law, cannot be issued before February 15 for tax returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). This applies to the entire refund—even the portion not associated with the EITC and ACTC. While IRS will process the EITC and ACTC returns when received, these refunds cannot be issued before February 15. Similar to last year, IRS expects the earliest EITC/ACTC related refunds to actually be available in taxpayer bank accounts or on debit cards starting on February 27, 2019, … Read More
In a response to a request regarding the IRS position on reporting bad tax preparers on behalf of your client, the following response was received: “Circular 230 does not prohibit a practitioner from reporting return-preparer misconduct to the IRS. And, it is not the OPR’s position that practitioners are barred from reporting such misconduct to the IRS. Whether an EA or other Circular 230 practitioner should refer or report suspected misconduct by a tax return preparer to the IRS turns on confidentiality and disclosure of client information AND on client consent when the matter involves client information. In some situations, a practitioner or preparer may become aware of reportable third-party misconduct outside of a client relationship, in which case no client information would be disclosed in the report and there would be no need for consent. In other situations, a practitioner or preparer learns of the misconduct in the course of assisting a client or consulting with a prospective client, and it is not possible for the practitioner or preparer to submit a reasonably thorough report of the misconduct to the IRS without revealing client information. The OPR’s advice to tax professionals governed by Circular 230 is to exercise their … Read More
The IRS issues tax information by email for many different audiences. Here are some of the electronic subscriptions people can request by visiting the e-News Subscriptions page on IRS.gov: Guidewire: People who sign up for Guidewire receive email notifications when the IRS issues advance copies of tax guidance, such as regulations, revenue rulings, revenue procedures, announcements, and notices. e-News for Tax Professionals: Provides the latest national news for the tax professional community, as well as links to resources on IRS.gov and local news and events by state. Outreach Corner: Provides organizations such as businesses and non-profits articles content that they can use in their own communication products and newsletters. Tax Statistics: Supplies information about the most recent tax statistics. Quick Alerts: Provides tax professionals and tax software providers with the latest information about e-file issues and events. IRS Newswire: Provides news releases issued by IRS National Media Relations Office in Washington, DC. Here are some other electronic subscriptions the IRS offers: Alerts from Office of Professional Responsibility e-News for IRS Continuing Education Providers Modernized e-File News for Partnerships e-News for Payroll Professionals e-News for Small Business e-File News for Large Businesses Foreign Accountant Tax Compliance Act News & Information Employee Plans Indian … Read More
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.