Backup Withholding Forms Filing Deadlines

NSTPInternal Revenue Service (IRS)

Backup Withholding Forms Filing Deadlines

Backup Withholding Forms Filing Deadlines Some businesses and other payers take out backup withholding from payments they make to certain people. These entities have an upcoming filing deadline. Description of backup withholding The person or business paying the taxpayer doesn’t generally withhold taxes from certain payments. They don’t do this because it’s assumed the taxpayer will report and pay taxes on this income when they file their federal tax return. There are, however, situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income. This is what’s known as backup withholding. If a payer does backup withholding, they are required to deposit that withholding on those payments with the IRS. Form 945, Annual Return of Withheld Federal Income Tax Businesses and other payers must report backup withholding and any other federal income tax withheld from nonpayroll payments on Form 945. The deadline for filing Form 945 for tax year 2019 is Friday, January 31, 2020. However, if the payer made deposits on time and in full, the deadline is Monday, February 10, 2020.   Information Returns The information returns listed below are used to report backup withholding for … Read More

Relief for Financial Institutions that Incorrectly Report IRA Required Minimum Distributions

NSTPInternal Revenue Service (IRS)

Relief for Financial Institutions that Incorrectly Report IRA Required Minimum Distributions

Relief for Financial Institutions that Incorrectly Report IRA Required Minimum Distributions The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), among other items, changed the requirement for minimum distributions from qualified plans and IRAs. With the December 20th enactment date, financial institutions have had only a short time to change their systems. In Notice 2020-6, the IRS has provided relief for financial institutions that send a statement to an IRA owner, e.g., on Form 5498 (IRA Contribution Information), stating that the owner who turns 70½ in 2020 has a 2020 required minimum distribution (RMD) requirement. The new required beginning date for an IRA owner is April 1 of the calendar year following the calendar year in which the individual attains age 72; formerly, it was April 1 of the calendar year following the calendar year in which the individual attains age 70½. This amendment to Code Sec. 401(a)(9) is effective for distributions required to be made after December 31, 2019, with respect to individuals who will attain age 70½ after that date. As a result of this change, IRA owners who will attain age 70½ in 2020 will not have a required beginning date of April … Read More

January 31 Credential Renewal Deadline for Some Enrolled Agents

NSTPInternal Revenue Service (IRS)

January 31 is Credential Renewal Deadline for Some Enrolled Agents

January 31 Credential Renewal Deadline for Some Enrolled Agents Enrolled agents (EAs) with Social Security Numbers (SSNs) ending in 4, 5 or 6 are required to renew their enrollment by January 31st or their EA status will expire on March 31, 2020. Background—EAs. Section 10.4(a) of Circular 230 authorizes the IRS to grant EA status to individuals who demonstrate special competence in tax matters by passing A written examination (Special Enrollment Examination) and A background check that shows they have not engaged in any conduct that would justify suspension or disbarment under Circular 230. EAs are eligible to practice before the IRS and are subject to the rules in Circular 230. Once an individual becomes eligible for EA status by passing the written exam and background check, the individual must file an application for enrollment with the IRS and pay a nonrefundable user fee. (31 CFR 10.5) To maintain active status and ability to practice before the IRS, every three years EAs must complete continuing education requirements, file an application to renew their enrollment and pay a nonrefundable user fee. The renewal periods are staggered based on the last digit of the EA's SSN. (31 CFR 10.6(d)) 2020 enrollment renewal application … Read More

IRS Kicks Off 2020 Tax Filing Season; Help Available on IRS.gov for Fastest Service

NSTPInternal Revenue Service (IRS)

IRS Kicks off 2020 Tax Filing Season

IRS Kicks Off 2020 Tax Filing Season with Returns Due April 15; Help Available on IRS.gov for Fastest Service The Internal Revenue Service successfully opened the 2020 tax filing season on January 27th as the agency begins accepting and processing federal tax returns for tax year 2019. The deadline to file a 2019 tax return and pay any tax owed is Wednesday, April 15, 2020.  More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the April 15 tax deadline.  "The IRS workforce has worked for nearly a year to prepare for the opening of tax season,” said IRS Commissioner Chuck Rettig. “Our dedicated employees are committed to help taxpayers, process tax returns and serve the nation − not just through the April 15 tax deadline but throughout the year.”  “The IRS reminds taxpayers there are many options to get help,” Rettig said. “Our website has around the clock information available and is the fastest way to get assistance. We’ve made improvements to the Free File program and filing electronically with direct deposit remains the best way to speed refunds and minimize errors. As always, … Read More

National Taxpayer Advocate Annual Report to Congress 2019

NSTPInternal Revenue Service (IRS)

National Taxpayer Advocate Releases Annual Report to Congress and Purple Book

National Taxpayer Advocate Releases Annual Report to Congress and Purple Book Following Congressional mandate, the Acting National Taxpayer Advocate submitted to Congress the 2019 Annual Report to Congress and the third edition of the National Taxpayer Advocate’s Purple Book, which presents legislative recommendations designed to strengthen taxpayer rights and improve tax administration for all taxpayers. Following are the opening remarks: Preface: Introductory Remarks by the National Taxpayer Advocate 2019 This is the first Annual Report since 2000 that has not been submitted by Nina Olson. Nina retired on July 31, 2019, after leading the Taxpayer Advocate Service for over 18 years. During her time as the National Taxpayer Advocate, Nina fought tirelessly for taxpayer rights and created an organization of advocates who will carry on her legacy. The Taxpayer Advocate Service and all taxpayers are forever grateful for her advocacy.  Changes to the Annual Report to Congress The 2019 Annual Report looks decidedly different from previous reports in several ways. Section 7803(c)(2)(B)(ii) of the Internal Revenue Code, as amended by the Taxpayer First Act (TFA), requires the National Taxpayer Advocate to submit this report each year and to include in it, among other things, a description of the ten most serious problems encountered … Read More

IRS Issues 2019 Annual Report; Highlights Program Areas Across the Agency

NSTPInternal Revenue Service (IRS)

IRS Issues 2019 Annual Report

IRS Issues 2019 Annual Report; Highlights Program Areas Across the Agency A new annual report highlighting accomplishments across the nation’s tax agency has been issued by the Internal Revenue Service. “Internal Revenue Service Progress Update/Fiscal Year 2019 – Putting Taxpayers First” provides an overview of a variety of operations across taxpayer service, compliance and support areas. The 41-page document is built around the agency’s six strategic goals.  “This report is about more than what happened during the past year,” IRS Commissioner Chuck Rettig wrote in the report’s opening message to taxpayers. “It’s also designed to provide insight into the people serving this country on behalf of the IRS and provide a glimpse into the future.” The report highlights the work of IRS employees supporting the nation’s tax system during the past year. This covers a variety of taxpayer service efforts, including development of a new Taxpayer Withholding Estimator, as well as operations support efforts on areas involving Information Technology modernization, Human Capital Office initiatives and others.  The report also focuses on Criminal Investigation results and efforts involving civil enforcement. Ongoing compliance areas, among them micro-captives, syndicated conservation easements and virtual currency, are also included in the publication.  The report also … Read More