Friday, September 14, 2018

Don Barg, TSCPA Relations with the IRS committee,  requests that any issues for the IRS Stakeholder Liaison be forwarded to him. "These can be issues for the local business operating units or any type of issue you are incurring with IRS policies, practices or procedures in general."

Contact Don at dbarg@barg-henson.com

First Friday Hot Issues Summary – September 7, 2018


IMRS Monthly Overview

The IMRS Monthly Overview contains an update of issues opened and closed each month

We Wanted You to Know!

Tax Reform guidance:

Visit the irs.gov Tax Reform page frequently for updated information. The page has been reformatted and reorganized and has news, guidance, alerts and other resources in addition to Tax Reform legislation. Feel free to share these resources by posting on your websites, including in your newsletters, and adding to your publications, etc. https://www.irs.gov/newsroom/tax-reform

 

Estimated Tax Campaign:

The IRS has launched a special campaign on Sept 6th to help specific groups of taxpayers avoid an estimated tax penalty by paying the right amount of tax all year. The campaign aims to help wage earners, retirees, small business and self-employed individuals to meet the upcoming Sept. 17th deadline for quarterly estimated tax payments. Avoid penalty for underpayment of taxes; IRS says check withholding, make estimated payments. IRS encourages everyone to perform a Paycheck Checkup   

 

Offshore Voluntary Disclosure Program

The Internal Revenue Service reminds taxpayers they have until Sept. 28th to apply for the Offshore Voluntary Disclosure Program (OVDP). https://www.irs.gov/newsroom/irs-offshore-voluntary-compliance-program-to-end-sept-28

 

New Issues:

 

Form 8821 rejects

Issue:  Practitioner submits form 8821’s to delegate authority to office staff but they continue to reject.  Why? 

Response: When properly authorized, the Power of Attorney may redelegate authority to represent the taxpayer, but this authorization does not allow them to execute other documents, such as Form 8821, on the taxpayer’s behalf. See  Publication 4019 for levels of authority for Third Party Authorizations. Also see Common Reasons for Power of Attorney (POA) Rejection: Common Reasons for Power of Attorney (POA) Rejection: 

Status: Closed

 

Toll-free Lines Requiring Confirmation of Representative Identity

Issue: Practitioners continue to bring up the issue that they often have the taxpayer present when then call the toll-free numbers. They do not want to provide their own personally identifiable information to their clients.

Action: Thank you for your issue. We have elevated this issue previously and are monitoring for a response. 

Status: Open

Practitioner transcript access limited

Issue: Why is IRS implementing new transcript procedures that are limiting tax practitioners’ ability to secure transcripts quickly?

Response:  The IRS is taking this action to better protect taxpayer data. Because of data thefts outside the tax system, cybercriminals often attempt to impersonate taxpayers and tax professionals. Thieves attempt to gain access to transcript data, which can help them file fraudulent tax returns or steal additional PII of other individuals listed on the transcript. https://www.irs.gov/individuals/about-the-new-tax-transcript-faqs

Status: Closed

 

Deceased taxpayers and transcripts

Issue: How can you get a transcript for deceased taxpayers when using form 56?  

Response: Review Deceased Persons – Getting Information from the IRS webpage.  https://www.irs.gov/businesses/small-businesses-self-employed/deceased-taxpayers-getting-information-from-the-irs 

Status: Closed

 

Client personal mailbox compromised

Issue: Client has issue with mailbox that was raided and pays all her bills online.  What is the solution for her to receive a transcript?  

Response:  Form 8822 can be used to notify the Internal Revenue Service of a change in home mailing address.  Mail can be received in care of a third party (such as an accountant or attorney) by entering “C/O” followed by the third party’s name and street address or P.O. Box. https://www.irs.gov/pub/irs-pdf/f8822.pdf

Status: Closed

 

What stakeholders gave feedback on new tax transcript?

Issue: The New Transcript news release IRS to introduce new tax transcript...,

referenced, “based on stakeholder feedback…”, Who were the stakeholders that provided feedback? 

Response: This issue has been elevated.

Status: Open

 

Please note: If you have any issues or suggestions about the New Transcript procedures, please send us your concerns in an email so we can elevate them.


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