Monday, March 11, 2019

Tax Reform Guidance:

Continue to visit the www.irs.gov/taxreform  updated guidance and information on the Tax Cuts and Jobs Act (TCJA). #TaxReform

 

Practitioner Data Breach

Practitioner data breaches reported to Stakeholder Liaison decreased by 55% in 2019, however, data breaches are still a concern. Stay diligent and visit Data Theft Information for Tax professionals for tips on how to Protect your client; Protect yourself. 

 

“Ghost” Tax Return Preparers

Help us share Don’t be victim to a “ghost” tax return preparer message. These are paid preparers that do not sign the tax returns they prepare.For more information on reporting abusive tax preparers, visit IRS.gov webpage, “Make a compliant about a tax return preparer”.

 

OPA New Security Procedures in place:

There are new changes affecting use of the Online Payment Agreement (OPA) application. These changes relate to Secure Access eAuthentication requirements and Revision Fee amounts.

As of January 2019, in addition to regularly requested information, taxpayers will also need to provide one of the following:

  • Financial account verification, or
  • Mobile phone verification, or
  • Activation code received by postal mail (takes 5 to 10 business days)

The new Secure Access eAuthentication requirements are listed on IRS.gov/OPA

As of January 1, 2019, user fees for Installment Agreement Revisions (reinstatement/restructuring) initiated through OPA have decreased.

  • Low-Income regular IA reinstatement/restructuring (may be reimbursed if certain conditions apply).
    • $43 for IAs reinstated or restructured on December 31, 2018, or earlier.
    • $10 for IAs reinstated or restructured on January 1, 2019, or after.
  • All other reinstatement/restructuring:
    • $89 for IAs reinstated or restructured on December 31, 2018, or earlier.
    • $10 for IAs reinstated or restructured on January 1, 2019, or after.

NOTE: Taxpayers must establish their IA through OPA to be eligible for the OPA user fees shown above.  

 

 

  • New Issues:

 

1040X can’t be efiled:

Issue:  Practitioner wanted to know when 1040X’s will be able to be efiled.

Response: The IRS is currently researching the feasibility of developing an electronic intake path for Form 1040X, Amended U.S. Individual Income Tax  Moving forward with development would be dependent on approval and available resources; a timeframe cannot be committed to at this time. 

Status: Closed

 

Publication 519 

Issue:  Practitioner would like to know when the Publication 519 for 2018 returns will be ready?

Response: The 2018 Publication 519 posted to IRS.gov on 02-25-2019.

Status: Closed

 

199A Safe Harbor

Issue:  Practitioner wants to know if the Sec. 199A Safe Harbor statement for rental real estate enterprises required in Notice 2019-07 can be submitted on electronic 1040 returns.

Response:  We have elevated the question to electronic filing.

Status: Open

 

Extender Legislation:

Issue:  Tax professional inquired if the irs.gov/Extenders page will be updated with information about the Tuition & Fees Deduction and Residential Energy Credits.   Publication 970 and Form 5695 instructions refer taxpayers to the link and no information is on the page. 

Response: We have elevated the issue.

Status: Open

 

Private Debt Collectors are requesting TP file return.

Issue: A practitioner states his taxpayer received a letter from a Private Debt Collector and it requested that the taxpayer file a delinquent return.  The practitioner wants to know what authority allows the private debt collector to ask for this information.  He feels this is a disclosure issue.

Response: We have elevated the issue.

Status: Open

 

Online Payment Security Procedures.

Issue: Practitioner states that he was not prompted for the additional security step to access OPA

Response:  A practitioner who has previously registered and validated their identity through e-services is able to use their login/password to log into OPA.  They will not be prompted to provide additional information.

Status: Closed

 

Excess deductions from Estates or Trusts

Issue: Practitioners ask, since you can no longer claim miscellaneous deductions on Sch A, where can you claim the excess deductions on the termination of an estate or trust.  

Response: Elevated for guidance on this issue.

Status: Open

 

 

 

First Friday Team contact info:

Karen.L.Russell@irs.gov | 478-334-1998 | efax 877-477-8492

Evelyn.Dyson.Lee@irs.gov | 469-801-1598 | efax 877-477-8567

Arlene.J.Good@irs.gov | 346- 227-6333 | efax 877- 477-8570

Lisa.A.Novack@irs.gov | 602-636-9476| e-fax: 877-477-8568

 

 

Evelyn Dyson Lee 

Sr. Stakeholder Liaison – Area 4

Communications and Liaison (C&L)

Farmers Branch, Texas

Phone: 469-801-1598

Fax:  877-477-8567