Recent Community Blogs

A joint letter from the NSA and the NATP requesting clarification on tax preparers' professional responsibilities prompted the IRS to publish guidance on how practitioners can meet their Circular 230 responsibilities. Much of the current challenge for practitioners is third-party advisers encouraging business taxpayers to claim the ERC without pertinent information or verifying eligibility. Many of these advisers charged either hefty upfront fees or a contingent fee based on the refund credit. As practitioners become aware of these ERC credit claims, the challenge has understood our professional responsibilities in advising these clients and filing amended returns. Tax professionals in all areas of tax must meet the applicable provisions in Circular 230 Regulations Governing Practice. The Office of Professional Responsibility (OPR) has indicated several provisions of Circular 230 that are implicated when working with a client who claims or seeks to claim an ERC. Section 10.22(a) requires ...

The forums return to an in-person format in five cities across the nation for the first time since the onset of COVID-19. In a recent news release last Thursday, the IRS indicated registration is now open for the 2023 IRS Nationwide Tax Forums. NSA members are entitled to a $10 discount with a code sent to members also on March 2. Held for more than 30 years, the IRS Nationwide Tax Forums is a three-day event with more than 40 seminars and workshops. The cities and dates for the 2023 forums are: New Orleans, July 11–13; Atlanta, July 25–27; National Harbor, Md., Aug. 8–10; San Diego, Aug. 22–24; and Orlando, Fla., Aug. 29–31. #IRS Releases #IRS Releases #IRS

Dirty Dozen: IRS urges anyone having trouble paying their taxes to avoid anyone claiming they can settle tax debt for pennies on the dollar, known as OIC mills IR-2022-119, June 7, 2022 WASHINGTON — As the 6th item on the 2022 "Dirty Dozen" scams warning list, the Internal Revenue Service today cautioned taxpayers with pending tax bills to contact the IRS directly and not go to unscrupulous tax companies that use local advertising and falsely claiming they can resolve unpaid taxes for pennies on the dollar. Read more here: Dirty Dozen Tax Scams

Alexandria, VA, May 12, 2022 — The National Society of Accountants (NSA) Read the Top Ten IRS errors here . ### NSA represents members who provide accounting, auditing, tax preparation, financial and estate planning, and management services to thousands of individuals and business clients across the nation. Most members are sole practitioners or partners in small- to medium- size accounting firms. For more information, visit www.nsacct.org.

Contact: Jessica L. Jeane, J.D. Managing Director, Public Policy 571-982-7360 jjeane@nsacct.org NSA Members See Movement in Their Call to Have the IRS Suspend Certain Automated Notices But Say More is Needed Alexandria, VA, January 28, 2022 – Members of the National Society of Accountants (NSA) are seeing movement in their call to have the IRS suspend certain automated notices, but their collective voice can be heard loud and clear, saying: “We need more.” The Internal Revenue Service (IRS) on January 27 announced it will implement changes to its operations, which includes suspending automated notices related to returns that are not present in its system but have been credited for payment. According to the IRS, examples of this regularly occur when a paper return has been filed yet remains unprocessed. The IRS’s continuous issuance of these notices and other automated compliance actions have caused confusion, frustration, ...

Alexandria, VA, January 18, 2022 —   The National Society of Accountants (NSA) announced today that Joshua Caulfield, IOM, will be joining NSA as Chief Executive Officer (CEO) on January 24.  Caulfield is currently completing his Doctor of Business Administration (DBA) in Nonprofit Management and Leadership and providing strategic consulting to a technology firm. He is a graduate of the U.S. Chamber’s Institute of Organizational Management, a Graduate of the Landmark Forum, and former adjunct faculty at Northern Virginia Community College.   “The board and search committee were impressed with [Caulfield’s] range of knowledge, strong financial awareness, and technology expertise,” said Marchelle Foshee, NSA’s President and Board Chair. “We are excited about the opportunity for our engaged professional community and headquarters team to bring NSA to the next level of excellence.”   “Now, more than ever, professionals need to know that their society is available to bring ...

The IRS announced that the nation's tax season will start on Monday, Jan. 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns. The January 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly. Updated programming helps ensure that eligible people can claim the proper amount of the Child Tax Credit after comparing their 2021 advance credits and claim any remaining stimulus money as a Recovery Rebate Credit when they file their 2021 tax return. "Planning for the nation's filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare," said IRS Commissioner Chuck Rettig. "The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays. Filing electronically with ...

The IRS released its Fiscal Year (FY) 2021 Progress Update describing the agency's work delivering taxpayer service and compliance efforts during the pandemic while highlighting efforts taken by IRS employees to help people during the year. "This has been an unprecedented period facing the IRS and the nation," said IRS Commissioner Chuck Rettig. "IRS employees worked hard during the pandemic, repeatedly delivering for taxpayers under tight timeframes and difficult circumstances. As the 2022 filing season approaches, more work remains for us to help taxpayers as well as tax professionals. We will continue to make progress on critical areas thanks to the hard work of so many people. I'm incredibly proud of what our employees have been able to accomplish during this period, and we also appreciate the efforts taking place by our partners inside and outside the tax system to help people struggling during COVID-19." Click here to read Internal Revenue Service Progress Update / Fiscal Year ...

Jessica L. Jeane, J.D. Managing Director, Public Policy President Biden has signed an Executive Order (EO) effectively requiring new IRS online tools and services. The White House on December 13, 2021, issued the Executive Order on Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government . The EO aims to address the “time tax” burden placed upon Americans as they interact with the Federal Government. “The Federal Government must design and deliver services in a manner that people of all abilities can navigate,” the EO states.   Most notably, Sec. 4(b) of the EO mandates the following:  “The Secretary of the Treasury shall design and deliver new online tools and services to ease the payment of taxes and provide the option to schedule customer support telephone call-backs.  The Secretary of the Treasury should consider whether such tools and services might include expanded automatic direct deposit refunds based on ...

Alexandria, VA, December 13, 2021 - Amid a staggering backlog of millions of unprocessed individual returns and a bottleneck of unprocessed tax forms, 99 House Republicans sent a letter to IRS Commissioner Charles Rettig, calling on the IRS to provide information about preparations for the upcoming tax filing season. The lawmakers cited recent data provided to Congress by the Treasury Inspector General for Tax Administration. They noted, “there are currently more than 9.6 million unprocessed paper returns received in calendar year 2021, while an additional 5 million paper and e-file returns have been suspended during processing.” The Republicans’ concerns mirror those voiced by NSA in a letter to Congress and Commissioner Rettig last month. In NSA's letter, the organization states that greater transparency and improved communication from the IRS are needed to assuage the growing frustrations and fears among tax and accounting professionals regarding the 2022 tax filing season. ...

On Wednesday, December 15, NSA will be hosting a meeting with National Taxpayer Advocate Erin Collins. The virtual meeting, taking place via zoom, will offer NSA members an opportunity to interact with Ms. Collins in a roundtable/discussion format. We will discuss problems taxpayers are experiencing with the IRS and provide updates on IRS COVID-19 challenges including the filing season, processing of returns, and what to expect with the upcoming filing season. If you would like to participate in this event, register at NSA's Learning Center. Erin Collins is the “voice of the taxpayer” within the IRS and before Congress. Under her leadership, the Taxpayer Advocate Service (TAS), an independent organization within the IRS, helps taxpayers resolve their IRS account issues, advocates on behalf of taxpayers, and works towards systemic change to mitigate taxpayer problems. She joined the Taxpayer Advocate Service in March 2020 to advocate for taxpayers, protect their rights, and work toward ...

Alexandria, VA, November 22, 2021 — NSA sent a letter to the IRS and Congress calling attention to the need for improved transparency from the IRS in its communications with both taxpayers and practitioners, as well as the importance of increased funding for the agency. It is NSA’s position that there is a crisis occurring involving the IRS, taxpayers, and practitioners, much of which can be attributed to insufficient funding. Therefore, NSA encourages Congress to fund the IRS more adequately and consistently. “The steady increase of responsibility that Congress continues to legislatively place upon the IRS year-after-year greatly exceeds the declining and often stagnant appropriations for the agency.” However, it is equally vital for the IRS to do its part to rectify the situation and recognize its own shortcomings in communication with taxpayers and practitioners during this ongoing crisis. Currently, the IRS continues to lag in the processing and issuing of refunds for 2019 and ...

November 9, 2021 Marchelle Foshee, CPA NSA President What are you doing to prepare for the 2022 tax filing season? NSA’s First Virtual Member Roundtable was held on November 3, 2021. Many members of NSA joined in the conversation which produced some important information one hopes to obtain when networking with fellow peers. Online Accounts One of the takeaways produced during the first roundtable was the importance of taxpayers having an online account with the IRS. Those who have an online account may: see your payment history and any scheduled or pending payments; see the total amount you owe, including balance details by year; see payment plan details, if one is in place; see their Economic Impact Payments, if any; accept or reject authorization requests from tax professionals; and access Child Tax Credit Portal for information regarding their Advance Child Tax Credit payments. The online account allows taxpayers to securely access their individual ...

November 8, 2021 Jessica L. Jeane, J.D. Managing Director, Public Policy Congress has sent a bipartisan tax-related infrastructure bill to President Biden’s desk where he is expected to sign the measure into law. The House late on November 5 approved the Infrastructure Investment and Jobs Act ( H.R. 3684 ), as amended, by a 228-to-206 vote. The measure cleared the Senate by a 69-to-30 vote last August. Employee Retention Credit Most notably, section 80604 of the legislation repeals the fourth-quarter extension for the Employee Retention Credit (ERC), making wages paid after Sept. 30, 2021, ineligible for the credit (except for wages paid by an eligible recovery startup business). The section 3134 ERC was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, (P.L. 116-136), and amended by the Consolidated Appropriations Act, 2021 (P.L. 116-260). The American Rescue Plan Act (P.L. 117-2), made the ERC available to eligible employers for wages paid during ...

TAX PRO ACCOUNTS LIVE WITH SHARYN FISK 11/05/2021 | 2:00 PM (EDT) Individual Tax Pros will see a walk-thru of the initial release of the IRS’ Tax Pro Account and learn tips and techniques for submitting a successful authorization request. The program will include how tax professionals can access a variety of features through Tax Pro Account. Learning Objectives: After this webinar you will be able to: Identify the differences between online authorizations and traditional Forms 2848 and 8821, and how to determine which type may be needed for the taxpayer. Initiate, electronically sign, and request an online Power of Attorney (POA) and Tax Information Authorization (TIA). Recognize what is needed to make an online authorization including a CAF number and the tax professional’s and taxpayer’s address of record with the IRS Authorize multiple representatives for POAs or multiple designees for TIAs on CAF SHARYN FISK Director, Office ...

NSA is bringing you a new live webinar every day this week! Topics include Ethics and Compliance, Casualties, Disasters & Settlements, Maximum Deductions for Retirement Plans, Criminal Tax, and Payroll & Employment Tax. As always, all webinars are free with an NSA membership. Learn more about this week's lineup below! Ethics and Compliance Monday, Oct. 25, 2:00 p.m. ET | CPE Credit: 2 hours This course will discuss the ethical responsibilities for members of the Society in their roles as representatives on behalf of clients before the IRS and State Taxing Authorities. We will also explore the Internal Revenue Manual and Treasury Circular 230 requirements associated with performing due diligence as to accuracy when the tax accountant is aware of tax non-compliance. Learn more. Casualties, Disasters & Settlements Tuesday, Oct. 26, 2:00 p.m. ET | CPE Credit: 2 hours This course will cover deducting casualty losses inside and outside ...

This month, NSA has 9 new webinars that are now open for registration. Topics include practice management, federal tax law, ethics, and more! As always, all webinars are free with your NSA membership. Stay at the top of your game and check out the lineup below! Workplace Efficiency for Tax Pros Tuesday, Oct. 19, 2:00 p.m. ET | CPE Credit: 2 hours This course will examine the basics of workplace efficiency. We will cover beating procrastination, planning your day to accomplish the maximum- especially getting done that one big task you absolutely have to finish before going home- grouping tasks, and multitasking. We will also examine methods to remove clutter (mental, physical and electronic) and also how to manage programs and apps. We will discuss effectively dealing with e-mail and instant messaging, handling telephone and face-to-face communications. Learn more. Practice Management for Success & Growth Wednesday, Oct. 20, 2:00 p.m. ET | ...

September 17, 2021 Jessica L. Jeane, J.D. Managing Director, Public Policy The House Ways and Means Committee has advanced by a largely party-line 24-to-19 vote a sweeping tax reform proposal of $2.2 trillion in tax increases along with approximately $1.3 trillion in tax breaks. The congressional tax-writing committee spent four days marking up the tax reform package, which Democrats hailed as their “historic” achievement when it cleared the committee this week. Generally, the tax provisions include some of the following proposals: return to a corporate income tax rate structure with a top rate of 26.5 percent; restore the 39.6 percent top marginal individual rate for single filers making above $400,00, for head of household filers above $425,000, and for joint filers above $450,000; raise the capital gains rate to 25 percent; overhaul the international tax regime; extend the American Rescue Plan Act's Child Tax Credit expansion through 2025, and make the entire credit fully ...

Last week, NSA sent a letter to bipartisan leadership of Congress's tax writing committees expressing its concerns with recent IRS guidance issued in Notice 2021-49 on the Employee Retention Credit (ERC) under section 3134 of the Internal Revenue Code, as added by section 9651 of the American Rescue Plan Act (ARPA), (P.L. 117-2). "NSA urges Congress to act quickly to clarify and resolve the conflicting guidance issued and take the necessary actions needed for the IRS to apply the intent of the original legislation that does not exclude small family owned businesses from taking the credit. Time is of the essence to allow all stakeholders (taxpayers, practitioners, and IRS) to efficiently and accurately file and process ERC related returns. Delayed action will continue to place an enormous burden on small businesses and tax and accounting professionals as well as further congest an already overwhelmed IRS." Read NSA's full letter here .

Congressman Jack Bergman, R-MI, in an August 9 letter to IRS Commissioner Chuck Rettig, expressed concerns with recent IRS guidance on the Employee Retention Credit under Section 3134 of the Internal Revenue Code, as added by section 9651 of the American Rescue Plan Act (ARP), ( P.L. 117-2 ). Specifically, Bergman objected to language in IRS Notice 2021-49 that prevents wages paid to a majority owner of a corporation from qualifying under the ERC solely if the owner has a direct family member. ERC Guidance The IRS on August 4 released Notice 2021-49 , which provides guidance on the ERC applicable to qualified wages paid after June 30, 2021, and before January 1, 2022. The Notice will appear in IRB 2021-34, dated Aug. 23, 2021. “The distinction made in your guidance is entirely illogical, goes against the intent of Congress, and arbitrarily punishes Americans with families,” Bergman wrote to Rettig. “I therefore request further explanation as to the statutory rationale for this ...