Blogs

Be the first person to recommend this.
Inappropriate referrals to the IRS e-help Desk are causing longer hold times Each filing season, the e-help Desk receives phone calls from taxpayers because their tax preparer referred them for assistance resolving rejected returns, tax law and tax account matters. This increases the taxpayer’s burden and causes lengthier delays for everyone. The e-help desk cannot help these callers and must direct them to other sources for assistance – typically IRS.gov including Publication 5136 , IRS Services Guide. The EPSS e-help Desk is intended specifically to assist tax professionals (Enrolled Agents, Reporting Agents, Electronic Return Originators, Certified Public ...
0 comments
Be the first person to recommend this.
NSA Executive Vice President Discusses IRS Budget and Tax Reform Changes on Federal News Radio NSA Executive Vice President John Ams will discuss the Administration’s proposed IRS budget in a segment on Federal News Radio. The interview, which was taped yesterday, will be broadcast next week. In the discussion, Ams also pointed out that the IRS is still forecasting it will only be able to answer 60% of filing season phone calls but that the proposed budget would cut another $108.7 million, or 4.6%, from Taxpayer Services, with the likely result that the touted benefits of the tax reform law will not be realized until taxpayers and tax professionals are ...
0 comments
Be the first person to recommend this.
Tim Sundstrom, a member of the NSA Federal Taxation Committee and John Ams , NSA Executive VP, met with IRS officials including Acting Commissioner Dave Kautter to urge them to issue guidance on issues raised in the tax reform bill as soon as possible, particularly with respect to the much-discussed Section 199A. Sundstrom raised a number of technical issues about the application of the 20% rule as well as how to determine whether an entity’s principal asset is the skill or reputation of one or more of its owners or employees.  Ams pointed out that many small businesses could be disqualified from claiming the deduction unless the determination of skill ...
0 comments
Be the first person to recommend this.
Early this morning, the President signed into law the Bipartisan Budget Act of 2018, which primarily served as a vehicle to extend funding for government operations through March 23, but which also includes more than 50 tax provisions, including extensions of expired tax incentives and various other tax policy changes and provides $90 million to the IRS to implement the tax reform act. A summary of the Act's tax provisions is available here
0 comments
Be the first person to recommend this.
Seeing the emergence of a new filing season scam, the IRS and NSA urge tax professionals to step up security and beware of phishing emails that can secretly download malicious software that can help cybercriminals steal client data. Only a few days into the filing season, the IRS has already identified a new scam that began with cybercriminals stealing data from several tax practitioners’ computers and filing fraudulent tax returns. In a new twist, the fraudulent returns in a few cases used the taxpayers' real bank accounts for the deposit. A woman posing as a debt collection agency official then contacted the taxpayers to say a refund was deposited in error ...
0 comments
Be the first person to recommend this.
The Internal Revenue Service (IRS) today issued  Notice 2018-14 , which provides additional guidance to employers on withholding changes in response to the enactment of the  "Tax Cuts and Jobs Act" (P.L. 115-97) . As described by the IRS, Notice 2018-14: extends the effective period of Forms W-4 furnished to claim exemption from income tax withholding under § 3402(n) for 2017 until February 28, 2018 and temporarily permits employees to claim exemption from withholding under § 3402(n) for 2018 by using 2017 Form W-4; suspends the requirement that employees must furnish their employers new Forms W-4 within 10 days of changes of ...
0 comments
Be the first person to recommend this.
Proposed IRS budget appropriation under consideration will not adequately serve the needs of individual and small business taxpayers.   ALEXANDRIA, VA, January 25, 2018 — The National Society of Accountants (NSA) expresses its continuing disappointment with the Internal Revenue Service (IRS) budget appropriation under consideration and its belief that the proposed budget is a disservice to the many individual and small business taxpayers for whom NSA members provide tax services. “The IRS Division responsible for responding to taxpayer telephone calls estimates that it would be able to respond to only 60 percent of calls during the 2018 filing season, ...
0 comments
Be the first person to recommend this.
President Trump will soon nominate Charles P. Rettig to become the next Commissioner of the Internal Revenue Service (IRS), according to a reliable media report .  If nominated and confirmed by the Senate, Rettig's initial term would run through November 12, 2022. He would relieve David Kautter , who is currently working as Acting Commissioner while also serving in his permanent position as Assistant Secretary of the Treasury for Tax Policy. ​The term of office for IRS Commissioner runs in five-year increments that are fixed by date rather than by the date of swearing in. The current five-year term for Commissioner started on November 13, 2017. The President ...
1 comment
Be the first person to recommend this.
Today the FASB issued Proposed Accounting Standards Update, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income .  The Financial Accounting Standards Board ( FASB ) today issued a proposed Accounting Standards Update (ASU) intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017. Stakeholders are encouraged to review and provide comments on the proposed improvements by February 2, 2018. “After the Tax Cuts and Jobs Act was enacted, stakeholders expressed ...
0 comments
Be the first person to recommend this.
Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February The IRS today released Notice 1036 , which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The updated withholding information, posted today on IRS.gov, shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. They should continue ...
0 comments
Be the first person to recommend this.
Security Summit Partners Warn Tax Pros of Heightened Fraud Activity as Filing Season Approaches The Internal Revenue Service, state tax agencies and the tax industry today warned tax professionals of early signs that cybercriminals already are at work as the nation’s tax season approaches. Fraudsters are using a new round of emails posing as potential clients or even the IRS to trick tax practitioners into disclosing sensitive information. The Security Summit partners encourage tax practitioners to be wary of communicating solely by email with potential or even existing clients, especially if unusual requests are made. Data breach thefts have given ...
0 comments
Be the first person to recommend this.
2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17; Help Available for Taxpayers The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February. The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.  Many software companies and tax professionals will be accepting tax returns before Jan. 29 and ...
1 comment

IRS withholding update

Be the first person to recommend this.
The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22.  We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.    Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February.  In the meantime, employers and payroll service providers should ...
0 comments

Tax Cuts and Jobs Act

Be the first person to recommend this.
The Tax Cuts and Jobs Act (H.R. 1) has been approved by Congress and is on its way to the White House. H.R. 1, as approved by Congress, impacts virtually every individual and business on a level not seen in over 30 years. As with any tax bill, however, there will be "winners" and "losers."  This historic bill calls for lowering the individual and corporate tax rates, repealing countless tax credits and deductions, enhancing the child tax credit, boosting business expensing, and more.  The bill also impacts the Affordable Care Act (ACA), effectively repealing the individual shared responsibility requirement. Highlights: 37-Percent Top Individual Tax Rate ...
0 comments

IRS e-Services update

Be the first person to recommend this.
The IRS will announce this afternoon that e-Services must be accessed via a Secure Access account.  The changeover will occur on the afternoon of December 10.   The IRS website will be updated with this information this afternoon, along with FAQs and other information.   The IRS encourages any practitioner who would like to use e-Services to register for a Secure Access account as soon as possible.  The IRS has set up an “exception” process for individuals who are unable to complete the registration process.  This process involves calling the IRS e-Services help desk and responding to various questions designed to verify the caller’s identity.  ...
0 comments
Be the first person to recommend this.
The Senate passed its version of the tax reform bill early Saturday morning on a vote of 51-49. The vote came after last-minute negotiations between Senate leadership and key holdouts who had concerns about the treatment of pass-through entities, the state and local tax deduction, and the effect the cuts would have on the budget. The legislation calls for a 20 percent corporate rate, a 23 percent deduction for pass-throughs, and rate cuts for individuals, though the pass-through and individual provisions are set to expire in 2026. One last-minute change retained the state and local tax deduction – up to a $10,000 property tax write-off—making the Senate bill ...
0 comments
Be the first person to recommend this.
The Senate Finance Committee approved its tax reform plan Thursday night by a party line vote of 14-12. The Committee wrapped up a four-day markup after defeating dozens of Democratic amendments. The plan, for which legislative language is still not available, would set a permanent 20 percent corporate rate beginning in 2019 and sunset many individual tax provisions in 2026. It would also give passthrough business owners a 17.4 percent deduction on their income. A manager's amendment introduced by Committee chairman Sen. Orrin Hatch near the end of the hearing Thursday night included changes to the tax treatment of carried interest similar to a provision ...
0 comments
Be the first person to recommend this.
House Republican leaders today formally introduced what they hope will be their signature legislative achievement in the 115th Congress: a sweeping tax reform bill that lowers individual and business tax rates, while also broadening the base by repealing or limiting many tax preferences. The "Tax Cuts and Jobs Act" is slated for consideration in the Ways and Means Committee starting at noon on Monday, November 6.  At or just before the start of the session, Chairman Kevin Brady (R-TX) will likely unveil a different version of the bill, reflecting additional input from lawmakers and outside interests, as well as technical corrections and clarifying edits to ...
2 comments

e-Services update from IRS

Be the first person to recommend this.
This is an update  on critical issues currently affecting e-Services users.    Because the IRS is still reviewing its contract options for an identity-proofing vendor, the move of e-Services to Secure Access authentication will be delayed. The transition was originally planned for later this month. As of today, we do not have a new date. We will communicate via Quick Alert as soon as a new launch date is set. Also, the technology upgrade of moving e-Services to a new platform continues. This means you are unable to take certain actions, like requesting an EFIN, viewing or updating an application. We recognize this is creating a hardship for ...
0 comments
Be the first person to recommend this.
Secretary Mnuchin has announced that David J. Kautter, Treasury’s Assistant Secretary for Tax Policy, will serve as Acting IRS Commissioner when my term ends next month. As Treasury’s top tax official, Kautter oversees development and implementation of tax policies and programs as well as reviews regulations and rulings related to the Internal Revenue Code. In addition, he serves as the senior advisor to the Secretary of the Treasury on issues such as tax reform. Kautter has extensive experience in the tax community, spending more than three decades at Ernst and Young, including serving as director of national tax. He later became managing director ...
0 comments

Blog Categories