Wednesday, December 11, 2019

Don Barg, TXCPA 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 –December 6, 2019


We Want You to Know

Help Reduce Delays in Processing Authorizations

Sending in duplicate Forms 2848 (Power of Attorney), and 8821 (Tax Information Authorization), results in processing delays as both requests must be researched and reviewed.

Here’s what you need to do:

  1. Fax a request once. Faxing forms to the same or multiple numbers will delay processing.
  2. Double check forms for accuracy. Missing information delays requests.

Reducing the number of duplicates and increasing the accuracy of forms will help us to process requests faster and help with other improvements that we are making.

For more information see IRM 21.3.7.5.1 Essential Elements for Form 2848 and Form 8821.

IRS.gov – It’s not just for Forms

Many of the answers to questions we receive in Stakeholder Liaison can be found on IRS.gov. Here are some helpful sites:

Business Modernized e-File (BMF MeF) Production Shutdown and Cutover

Shutdown for "Send Submissions" only is scheduled to begin at 11:59 a.m., Thursday, December 26, 2019, to prepare the system for the upcoming 2019 Filing Season. Any acknowledgements not retrieved by 11:59 p.m. on December 26th cannot be accessed until MeF opens for production in January 2020. Notifications are sent out through the QuickAlerts subscription service. Visit the Modernized e-File (MeF) Status page for availability of the MeF-related systems for external use.

Get Ready for 2020

  • Update e-file application information
  • Renew your PTIN
  • Review / implement your Data Security Plan

Finalized version of 2020 Form W-4 now available

The final version of the 2020 Form W-4, Employee’s Withholding Certificate is now available on IRS.gov.

2020 withholding tables can be found:

Webinars now available on demand:

Give Us Your Feedback on the Taxpayer First Act

The Taxpayer First Act of 2019 (TFA) aims to expand and strengthen taxpayer rights and to reform the IRS into a more taxpayer-friendly agency. The TFA requires the IRS to develop a comprehensive customer service strategy, modernize its technology and enhance its cyber security. In this effort, the IRS requests feedback from all stakeholders. You can send your feedback to your local Stakeholder Liaison or to TFAO@irs.gov

Follow-ups from prior meetings:

Incorrect Adjustment Related to Hurricane Harvey

Issue: Tax professional received an audit report with incorrect adjustments related to Hurricane Harvey relief provision for tax years 2016, 2017, and 2018. It appeared the agent’s report generating software (RGS) was not up to date.

Response: Thank you for raising this issue. We have determined that all RGS users now have the current version of program. The practitioner in question has received a corrected audit report.

Status: Closed.

Unable to Use OPA

Issue: Practitioner’s client was located in the Tropical Storm Imelda disaster area and received the automatic extension to January 31, 2020 to file their return. They filed the return in November and had a balance due. They wanted to set up a Direct Debit Installment Agreement using the Online Payment Agreement tool (OPA) but were not able to.

Response: When filing and payment relief are granted as the result of a disaster, a freeze is put on the account so penalties and interest do not accrue. OPA cannot be used if there are any holds on penalty or interest. Those holds will release when the extended due date passes. The client was advised to make payments using direct pay or other method until the date passes and then they should be able to set the IA up using OPA. See IRM 25.16.1.8.2 and IRM 21.2.1.57 (8).

Status: Closed.

Letter 6042C Entity Verification for Business

Issue: Practitioner wanted verification that Letter 6042C, Entity Verification for Business, received by her client was a valid IRS letter.

Response: Yes, this is a valid letter sent by Integrity & Verification Operations. For information on the letter see Understanding your Letter 5263C or Letter 6042C. For information on the program see IRM 25.23.11 BMF Identity Theft Procedures for Accounts Management

Status: Closed.

Notice of Levy

Issue: Practitioner’s client received a notice of levy for a business they only occasionally used. The TINs of the business owner were on the levy basically exposing them to all their potential accounts receivable. They felt there was no need for the TINs in this instance and they should have been redacted.

Response: Thank you for bringing this to our attention. It is standard procedure to include TINs on levies as this is how many of our levy sources are able to identify if they are holding funds for that taxpayer. However, procedures do say “If the taxpayer's identification number is not needed by the levied party to identify the taxpayer's assets, redact it from the appropriate parts of the levy form.” See IRM 5.11.2.2.2 Preparing the Notice of Levy (8).

Action: We agree, this situation did fall under those circumstances. We will elevate this issue.

Status: Open.