IRS Virtual Currency Letters to be Mailed to 10,000 Taxpayers

NSTPDigital Currency, Internal Revenue Service (IRS)

IRS Mailing Virtual Currency Letters to 10,000 Taxpayers

IRS Virtual Currency Letters to be Mailed to 10,000 Taxpayers Starting at the end of July and through the month of August, the Internal Revenue Service will be sending Virtual Currency soft letters to over 10,000 taxpayers. There are three different letters, intended to be educational to those receiving the information. What does the virtual currency letter mean and need I do anything if I receive one? The action required of the taxpayer depends on the letter you receive. Letter 6174 is called a soft letter and intended to educate taxpayers. It will include information about: The taxability of virtual currency transactions The forms likely required to report the virtual currency transactions The resources available on the topic It doesn’t require a response Indicates amended returns would be required if the taxpayer determines virtual currency transactions have not been reported properly Letter 6174A is also a soft letter intended to educate the taxpayer and will include information about: The taxability of virtual currency transactions The forms likely required to report the virtual currency transactions Instructions about how to report the transactions There is likely to be enforcement in the future The resources available on the topic It doesn’t require a … Read More

Comprehensive Taxpayer Attitude Survey (CTAS) 2018

NSTPInternal Revenue Service (IRS), Taxpayer

Comprehensive Taxpayer Attitude Survey (CTAS) 2018

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

NSTPForm 1040, Internal Revenue Service (IRS)

Early Draft Form 1040 and Form 1040-SR Posted for Comment

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

Tax Scams Continue Year-Round

NSTPInternal Revenue Service (IRS), Online Scams

Tax Scams Continue Year-round

Tax Scams Continue Year-Round Although the April filing deadline has passed, scam artists remain hard at work, and the IRS is urging taxpayers to be on the lookout for a spring surge of evolving phishing emails and telephone scams. The IRS is seeing signs of two new variations of tax-related scams. One involves Social Security numbers related to tax issues and another threatens people with a tax bill from a fictional government agency. Here are some details: The SSN hustle. The latest twist includes scammers claiming to be able to suspend or cancel the victim’s Social Security number. In this variation, the Social Security cancellation threat scam is similar to and often associated with the IRS impersonation scam. It is yet another attempt by con artists to frighten people into returning ‘robocall’ voicemails. Scammers may mention overdue taxes in addition to threatening to cancel the person’s SSN. Fake tax agency. This scheme involves the mailing of a letter threatening an IRS lien or levy. The lien or levy is based on bogus delinquent taxes owed to a non-existent agency, “Bureau of Tax Enforcement.” There is no such agency. The lien notification scam also likely references the IRS to confuse potential … Read More

Nina Olson’s Final Report

NSTPInternal Revenue Service (IRS)

Nina Olson Delivers Final Report

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