Comprehensive Taxpayer Attitude Survey (CTAS) 2018 For the last two years, the Internal Revenue Service has surveyed taxpayers to find out what makes them comply with their tax obligations. The study – called the “ Comprehensive Taxpayer Attitude Survey” is released with the annual IRS Data Book, a compendium of data related to tax filings and IRS enforcement and service activity. Prior to 2017, the last survey and study of taxpayer’s attitudes was from the IRS Oversight Board in 2014. The Attitude Survey offers some interesting understandings on how taxpayers view the IRS and fellow taxpayers. It provides many findings about taxpayer needs and preferences – and what taxpayers value. Tax professionals can use this information to gain knowledge about what clients want and how they like to be served. Major Findings Ethical attitudes towards paying taxes remain high among Americans. The majority of Americans continue to say that it is not at all acceptable to cheat on taxes (85%), that it is every American’s civic duty to pay their fair share of taxes (95% agree), and that everyone who cheats on their taxes should be held accountable (90% agree). A sense of civic duty to pay a fair share … Read More
Early Draft Form 1040 and Form 1040-SR Posted for Comment On July 12, the IRS posted early drafts of the 2019 Form 1040-SR, U.S. Tax Return for Seniors, and the 2019 Form 1040 and related numbered schedules to IRS.gov/DraftForms. Posting drafts is part of the standard process for inviting stakeholder input into draft forms before finalizing them. Comments should be sent to WI.1040.Comments@irs.gov. The IRS will continue to work with the tax community to finalize these forms over the summer and will issue related communications later this year. The IRS expects to release the related draft instructions for comment this fall. As a reminder: the provision creating Form 1040-SR was one of several retirement-related changes to tax policy included in the Bipartisan Budget Act of 2018. If the taxpayer is 65 or older (or turns 65 any time in 2019), they will have the option to use a new simple tax form for seniors, known as the 1040-SR, when filing their 2019 taxes in 2020. The new form is provided for in section 41106 of the Bipartisan Budget Act of 2018 (BBA), a two-year budget agreement passed by Congress and signed by President Donald Trump on February 9, 2018. KEY … Read More
Nina Olson’s Final Report: National Taxpayer Advocate Nina Olson Delivers her Final Report to Congress National Taxpayer Advocate Nina E. Olson released her 37th and final report to Congress in advance of her previously announced retirement on July 31. In the preface, Olson reflects on her 18 years in the job and provides her assessment of the key challenges facing the IRS and the Taxpayer Advocate Service (TAS) in the coming years. The report also presents a review of the 2019 filling season. “I am enormously grateful for the opportunity I have had to advocate on behalf of our nation’s taxpayers,” Olson wrote. “Amazingly, despite the challenges of complying with our multi-million-word tax code, more than 150 million individual taxpayers and more than 10 million business entities do their civic duty every year by filing income tax returns with the IRS. That is an extraordinary achievement and one we should not take for granted.” Olson continued: “But even as the system works for most taxpayers most of the time, it doesn’t work for millions of others. Taxpayer service is woefully inadequate. . . . IRS audit notices are often unclear, leading some taxpayers to ‘agree’ to assessments by default – … Read More
Great webinars from NSTP! NSTP’s webinars are created with you in mind. Top tax educators provide exclusive material that you won’t find anywhere else! Check out these upcoming webinars: TT. Passive Activity Losses: Complexity Untangled Part III & Part IV 4CE June 14 10am-2pm PDT Instructor: Kelly H. Myers, MBA, Tax Consultant This course takes the Tax Professional with a basic understanding of the Passive Activity Loss (PAL) rules under IRC 469 into the advanced aspects including related Code sections that often coexist. While PAL has been around since 1986 it is often minimally understood and misapplied. There are additional components added over the years that will be addressed including Real Estate Professional (RE Pro), grouping, Net Investment Income Tax, and the Pass-through Deduction. To register or for more course details, please visit the NSTP website. OO. The Ugly 1040 4CE June 18 10am-2pm PDT Instructor: Paul La Monaca, CPA, MST This course reviews federal income tax issues pertaining to individual taxpayers. It discusses the 3 main goals of good tax planning dealing with exclusion and deferral provisions and preferential rates for long term capital gain transactions. This course also addresses various individual tax provisions changed as a result … Read More
IRS Tax Forum ‘early bird’ registration ends June 15 – register now and save $20!! WASHINGTON — The Internal Revenue Service is reminding tax professionals that reduced cost “early bird” registration for all five 2019 IRS Nationwide Tax Forums ends June 15 at 5 p.m. Eastern time. The IRS hosts forums across the country to interact with tax professionals and provide the latest information on federal and state tax issues. Attendees who register by 5 p.m. Eastern time on June 15 qualify for the early bird rate of $235. After this time, the standard rate of $255 is in effect until two weeks before each location’s event. Attendees registering less than two weeks before a forum or on-site will pay $370. IRS Nationwide Tax Forum dates and locations: July 9 – 11, National Harbor, Md. (Washington, D.C.) July 23 – 25, Chicago, Ill. Aug. 6 – 8, New Orleans, La. Aug. 13 – 15, Orlando, Fla. Sept. 17 – 19, San Diego, Calif. Up to 19 continuing education credits are available for enrolled agents, certified public accountants, Annual Filing Season Program participants, certified financial planners and other tax professionals. Seminars and workshops presented by experts from the IRS and partner … Read More
Enrolled Agent fees are increasing. The IRS has announced that the fees for Enrolled Agent applications and renewals will be changing effective June 12, 2019, as follows: Increase the amount of both the enrollment and renewal user fee for enrolled agents from $30 to $67; and Remove the initial enrollment user fee and increase the amount of the renewal user fee for enrolled retirement plan agents from $30 to $67. In November 2018, IRS issued proposed regulations that would increase the amount of both the enrollment and renewal user fee for enrolled agents from $30 to $67. The proposed regulations would also remove the initial enrollment user fee for enrolled retirement plan agents currently in Reg §300.10 because IRS no longer offers initial enrollment as an enrolled retirement plan agent. In addition, the proposed regulations would also increase the amount of the renewal user fee for enrolled retirement plan agents from $30 to $67. The IRS has now finalized the regulations without any change. The increased fees are effective on June 12, 2019. For more information, click here.