Wednesday, November 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 –


 

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 - https://www.irs.gov/newsroom/tax-reform

Visit the Guidance link on the Tax Reform page on IRS.gov. The latest Treasury Regulations, Rev Procs, Rev Rulings and Notices pertaining to TCJA are posted on this page. The latest 3 items:

Notice 2018-80, Guidance Under Section 451(b) Relating to Market Discount

Notice 2018-78, Additional Guidance Under Section 965 (binding basis election)

(provides a postponement for taxpayers affected by Hurricane Florence to make elections, and file transfer agreements, related to section 965)

Notice 2018-76, Expenses for Business Meals Under § 274 of the Internal Revenue Code

 

Disaster

Visit the sites below for the latest Disaster News releases and other useful disaster related resources

           

Taxpayer Advocate Tax Reform webpage

The Taxpayer Advocate has a Tax Reform changes website. The Tax Reform Changes website shows taxpayers how the new tax law may change future tax filings It includes line-by-line explanations and scenarios to describe how the new law may affect taxpayers.

   

New Issues:

Broken Link:

Issue: This link in the IVES tutorial was reported as broken.

Response: Thank you for bringing it to our attention, this link has been fixed.  For more information on IVES:   https://la2.www4.irs.gov/PeopleBooks/CRMPROD/Training/3pdev/3pives/tdsapp_maintain_ives.htm

Status: Closed

New Transcript – Customer Identifier number

Issue:  Who assigns the Customer Identifier number and when does it show on the transcript.  

Response: Tax Professionals authorized to access transcripts can enter a 10-digit Customer File Number that automatically will populate on the transcript provided through TDS.  If you use an SSN, name or combination of both, the information will not be input and the customer file number will be blank on the transcript. RAIVS does not assign the Customer File Number. https://www.irs.gov/individuals/about-the-new-tax-transcript-faqs

Status: Closed

 

New Transcripts – e-file tax returns with redacted EIN

Issue: Will we be able to e-file tax returns with the redacted EIN and name of the employer for wages and the redacted EIN and name of the payer for 1099-Rs?  

Response:

Financial entries on all redacted transcripts continue to be fully visible. Tax practitioners preparing prior-year tax returns for clients have several additional options to obtain the wages, income and taxes paid for non-filing individuals. The tax practitioner may: 

  • Obtain Form W-2 and income documents from the client;
  • Ask the client to access Get Transcript Online to immediately download and print a redacted wage and income transcript;
  • Ask the client to request a mailed transcript via Get Transcript by Mail or call toll-free assistance to have a transcript mailed to the address of record. Mailed transcripts are delivered within five to 10 business days;
  • Access e-Services Transcript Delivery Service for tax professionals for immediate access to a redacted transcript if there is proper authorization;
  • Ask toll-free assistance to mail a redacted transcript to the client’s address of record.

If necessary for return preparation, a client may also order a complete (not redacted) wage and income transcript through the IRS. A client must first authenticate their identity with the IRS and a complete (not redacted) wage and income transcript will be mailed to the address of record within five to 10 days. If a practitioner cannot obtain Forms W-2 from the client, or if the client is unable to receive a complete (not redacted) transcript at the address of record, then the practitioner may have to file a paper return. An unmasked wage and income transcript can be provided to the taxpayer when needed for filing an electronic tax return for the current tax year or filing electronically for the two prior tax years. 

Status: Closed

 

New Transcripts – e-file tax returns with redacted EIN

Issue:  Can an unredacted transcript be obtained at a TAC office and can a POA obtain it?

Response: An unredacted transcript can be requested at a TAC office by the taxpayer or their POA. The transcript will be mailed to the taxpayer address on record. As usual, please check your local IRS TAC office to see what services they provide and their operating hours.

Status: Closed

 

Transcript not issued

Issue: Practitioner states a request for a transcript was submitted, however a transcript was not issued.

Response:  Special circumstances that restrict the issuance of a transcript or require additional actions after requesting the transcript. For example, criminal investigation or Identity theft. IRM 21.2.3.5.7  https://www.irs.gov/irm/part21/irm_21-002-003r

Status: Closed

 

Archived web-conference

Issue: When will we have access to the Understanding the Basics of the Dark Web conference?

Response This web-conference, which aired on June 14, 2018 has now been archived and is available for viewing on the on the IRS Video Portal.

Status: Closed

 

Administrative penalty relief under reasonable cause.  

Issue: Practitioners requested administrative filing extension relief under reasonable cause.  Due to the approach of Hurricane Florence, the Governor of South Carolina issued a mandatory evacuation for coastal areas.  The hurricane shifted North and S.C. did not receive federal declared disaster relief at the same time North Carolina received relief.      

Response: The IRS does not have a way to provide administrative tax relief in these instances as we do under 7508A. Reasonable cause relief can be requested by the taxpayer or their authorized representative after a penalty is asserted. It is handled on a case by case basis. Call the toll-free number on your notice to request penalty relief due to reasonable cause.

Status: Closed  

 

Tax free rollovers not recognized

Issue: The system is not recognizing that code G in box 7 of form 1099R is a tax-free rollover. Clients are receiving CP2000 notifications that tax is owed on the tax-free roll over. 

Response:

AUR considers Form 5498 information whenever a rollover is indicated on a tax return. If there is no matching Form 5498 for the same year as the distribution, AUR asks for verification of the rollover to ensure proper tax treatment of the retirement distribution. If a taxpayer or practitioner is concerned that Form 5498 will not be submitted by the financial institution, they can attach documentation to substantiate the rollover to the return when it is filed. AUR considers all return attachments during the review of the return.

Status: Closed

Transaction code requests

Issue: We have been contacted by practitioners to provide various transaction codes. 

Response:

We would like to bring to your attention that the ADP book is available

in our Electronic Reading room on irs.gov.  View Chapter 8 for master file codes.

2018 Document 6209 - ADP and IDRS Information

Status: Closed

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