New Virtual Currency Guidance Issued by IRS Earlier this month, the IRS issued two new pieces of guidance on the tax treatment of digital currency for taxpayers who engage in transactions involving online currency. This expands on Notice 2014-21 issued in 2014 and helps business and individual taxpayers better understand their reporting obligations for specific transactions involving virtual currency. The new guidance includes Revenue Ruling 2019-24 and frequently asked questions, including questions that address digital money transactions for those who hold cryptocurrency as a capital asset. For more information, see Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations at IRS.gov/News.
Draft 2019 Tax Forms Released by IRS: Forms 1065, 1120-S, Schedules K-1 On September 30, 2019 the IRS issued a draft of the tax year 2019 Form 1065, U.S. Return of Partnership Income (PDF), and its Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc (PDF). The changes to the form and schedule aim to improve the quality of the information reported by partnerships both to the IRS and the partners of such entities. For example, among the changes is the addition of a checkbox that allows a taxpayer to indicate if certain grouping or aggregation elections have been made. The changes also reflect updates consistent with changes resulting from the Tax Cuts and Jobs Act. The additional information requested in the draft Form 1065 and Schedule K-1 is intended to aid the IRS in assessing compliance risk and identifying potential noncompliance while ensuring that compliant taxpayers are less likely to be examined. The IRS believes these changes to Form 1065 and Schedule K-1 will improve tax administration in the partnership arena, an area of critical importance to the IRS. In addition, certain similar changes can be found in the draft of the tax year 2019 Form 1120-S, U.S. Income Tax Return … Read More
Draft Form 1040 Schedule 1 Update and Virtual Currency Reporting The IRS has issued the second early release draft of the 2019 Form 1040, Schedule 1, Additional Income and Adjustments to Income, which includes the following checkbox question: "At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?" Taxpayers must check the appropriate box to answer this virtual currency question if they file Schedule 1 to report income or adjustments to income that can’t be entered directly on Form 1040. However, taxpayers do not need to file Schedule 1 if their answer to this question is "No" and they do not have to file Schedule 1 for any other purpose. The draft Schedule 1 is available here. Background The IRS issued Rev. Rul. 2019-24, I.R.B. 2019-44, and frequently asked questions (Frequently Asked Questions on Virtual Currency Transactions), earlier this week. They provide guidance on virtual currency as part of a wider effort to assist taxpayers and to enforce the tax laws in this rapidly changing area. Comments Requested This early release of Schedule 1 is intended to give tax software partners the required information to make system updates before … Read More
AFTR Program Benefits Non-Credentialed PTIN Holders From the IRS Return Preparer Office Set yourself APART! Participate in the Annual Filing Season Program. This 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 2020 filing season. Why should you participate? Many of you already take continuing education (CE) courses, so participating in the Annual Filing Season Program won’t require a major adjustment for you. You need either 15 or 18 hours of continuing education in specific categories and you must complete them by December 31, 2019. Also, you must take the courses from IRS-approved CE providers. By participating in the program and receiving an Annual Filing Season Program Record of Completion, you will be included in the IRS’s public directory of tax return preparers. The “Directory of Federal Tax Preparers with Credentials and Select Qualifications” is a searchable database that includes the names, city, state, zip code, and credentials of all current year Annual Filing Season Program participants, enrolled … Read More
NSTP Webinars special discount offer in honor of NSTP’s upcoming celebrations of 35 years Premier Tax Education and 20th Williamsburg Reunion In honor of our upcoming 35th Anniversary of Premier Tax Education and 20th Williamsburg Reunion, we’re offering a Special Webinar discount: $35 off 3CE or more and $20 off 2CE Webinars Call the office at 1(800) 367-8130 TODAY to register with this fantastic discount! (This offer is not available online) Why take a tax webinar with NSTP? Top quality NSTP continuing education! Learn from your own home, office, or coffee shop! You don’t have to travel! Earn all the CE credits you need at a very low cost. Each webinar comes with an NSTP book in pdf form, so you have a permanent resource. Live webinars have an instructor present, and you are given ample opportunity to ask questions and get your answers in live time! Register today for an NSTP webinar! You’ll be glad you did! Check out these great Webinar choices! Subchapter S Challenges Before and After the Creation of §199A Qualified Business Income – 4 CE 10-17-2019 10:00am-2:00pm PT Instructor: Paul La Monaca, CPA, MST NSTP Member $169 Non-Member $199 Register or more information Issues Concerning … Read More
Tax Deadlines Extended and Other Tax Relief for Victims of Tropical Storm Imelda Victims of Tropical Storm Imelda in parts of Texas, including the Houston area, have had tax deadlines extended until Jan. 31, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Chambers, Harris, Jefferson, Liberty, Montgomery and Orange counties in Texas, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 17, 2019. As a result, affected individuals and businesses will have until Jan. 31, 2020, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2018 return due to run out on Oct. 15, 2019, will now have until Jan. 31, 2020, to file. The IRS noted, … Read More