With National Small Business Week approaching later this month, the IRS is preparing a special series of presentations to help people navigate difficult tax issues

Sign up now for the following National Small Business Week Webcasts:

April 30: Can I Deduct This?
May 1: Employee versus Independent Contractor
May 2: Pay Now? Pay Later? Can’t Pay?
May 3: Small Business Resources
May 4: PayCheck Check-Up

Two 30-minute sessions are available each day, Session 1 at 11 a.m. and Session 2 at 1 p.m. ET.

To register, click on the links below:

April 30     Session 1    -    Session 2
May 1        Session 1    -    Session 2 
May 2        Session 1    -    Session 2
May 3        Session 1    -    Session 2
May 4        Session 1     -   Session 2     

Closed Captioning will be available for Session 2 only. Continuing education credits will not be offered. For questions, email: SBSE.SL.Web.Conference.Team@irs.gov

The Tax Cuts and Jobs Act, signed Dec. 22, 2017, changed some laws regarding depreciation deductions. For example, the new law increases the maximum deduction for a section 179 property deduction from $500,000 to $1 million. It also increases the phase-out threshold from $2 million to $2.5 million. Read the depreciation and expensing fact sheet for more.

As a tax professional, you know how important it is to keep good records. Did you know that includes records of electronic and telephone contacts with the IRS? If questions later arise, having a complete record of all documents and contacts may speed up resolution of your issue.

If you need to contact the IRS by telephone, note key information from the conversation, such as:

• The date and time of the call

• The name and employee identification number of the contact representative

• Any resolution or information you received from the representative. 

Before you call, also check IRS.gov for the topics and information people ask about most. You may find the information you are looking for without having to call the IRS.

Cross References
- IRS Letter to NAEA Dated March 15, 2018

The IRS has informed the National Association of Enrolled Agents (NAEA) that Enrolled Agents (EAs) are no longer allowed to use the previously IRS approved EA logo.

The IRS did create the logo for the EA program and supported its use. Unfortunately, the logo created legal concerns. The EA logo included a likeness or imitation of a government insignia or seal (the IRS eagle). Use of such insignia, seals or emblems are prescribed for the use of officers and employees of departments and agencies of the United States. Use of such likenesses and imitations without specific statutory authorization or regulation authorized by law may be criminally actionable if found to be in violation of 18 USC section 333, if it is interpreted or construed as conveying the false impression that an advertisement, solicitation, business activity, or product is approved, authorized by, or associated with the Department of Treasury. EAs are not employees of the IRS or Department of Treasury. They are simply licensed by the IRS and any advertisement or solicitation that could infer more than licensure is not consistent with the advertising and solicitation provisions of section 10.30(a) of Circular 230, and may also be in violation of 18 USC section 333.

For these reasons, use of the prior logo must cease. The IRS Return Preparer Office and the Office of Professional Responsibility have not yet taken any action against EAs using the prior approved logo. However, continued use of the logo by an EA could be subject to a cease and desist action. EAs must take action within six months of the release of a new IRS approved logo to delete the prior logo from advertising, websites, business cards, and other communications with clients or prospective clients.

NAEA will inform its members when the new IRS approved logo is ready for use.

Urgent: IRS provides an extra day for taxpayers to file, pay their taxes following system issues. File by midnight, April 18. 

Did You Know? Paid tax professionals aren’t permitted to endorse or otherwise negotiate a refund check issued to a taxpayer. This is true, even if the taxpayer requests their refund be directed into your bank account or in your name. Failure to comply could result in an Internal Revenue Code, Section 6695(f) penalty of $510 for each tax return with no maximum penalty amount and no reasonable cause exceptions.

For more information on Preparer Penalties visit: www.irs.gov/tax-professionals/summary-of-preparer-penalties-under-title-26

Did You Know? Internal Revenue Code, Section 6107(b) requires tax return preparers to:

a. Retain a completed copy of all returns prepared or a list containing the names, taxpayer identification numbers, tax years, and types of all returns prepared, and

b. Make such records available for inspection upon request by the IRS for a three-year period

For each failure to comply, you could be subject to an Internal Revenue Code Section 6695(d) penalty of $50 with a maximum penalty of $25,500 per year.

For more information on Preparer Penalties visit: www.irs.gov/tax-professionals/summary-of-preparer-penalties-under-title-26

Preparer Penalty Awareness: IRC 6695(c) Failure to Furnish Identifying Number

Did You Know? Internal Revenue Code, Section 6109(a)(4) requires paid tax return preparers to include an identifying number along with their name when signing the return. IRS regulations require the identifying number be a Preparer Tax Identification Number (PTIN). Failure to provide a PTIN may result in an Internal Revenue Code, Section 6695(c) penalty of $50 for each failure with a maximum penalty of $25,500 in any calendar year.

For more information on Preparer Penalties visit: www.irs.gov/tax-professionals/summary-of-preparer-penalties-under-title-26

Winter storm extension: Many businesses have extra time to request a 6-month extension

WASHINGTON — The Internal Revenue Service today granted many businesses affected by severe winter storms additional time to request a six-month extension to file their 2017 federal income tax returns.

The IRS is providing this relief to victims and tax professionals affected by last week’s storm--known as Winter Storm Quinn—and this week’s storm –known as Winter Storm Skylar--that primarily hit portions of the Northeast and Mid-Atlantic.

Business taxpayers who are unable to file their return by the regular due date—Thursday, March 15, 2018--can request an automatic extension by filing Form 7004, on or before Tuesday, March 20, 2018.  Form 7004,  available on IRS.gov, provides a six-month extension for returns filed by partnerships (Forms 1065 and 1065-B) and S corporations (Form 1120S).

Eligible taxpayers taking advantage of this relief should write, “Winter Storm Quinn” or “Winter Storm Skylar,” on their Form 7004 extension request (if filing this form on paper).  As always, the fastest and easiest way to get an extension is to file this form electronically. 

The IRS will continue to monitor conditions and provide additional relief if circumstances warrant.

Dear Tax Professional

You play an important role in the nation’s tax system by helping taxpayers file their returns and meet their tax obligations. To ensure paid tax return preparers are following the law, we want to highlight some potential penalties with respect to preparation of clients’ tax returns. The goal of this campaign entitled “Did You Know” is to make sure you’re not engaging in return preparation practices that may subject you to a preparer penalty. Over the next few weeks you’ll receive emails about five of the most common preparer penalties.

Here is the first: Preparer Penalty Awareness: IRC 6695(a) Failure to Furnish Copy to Taxpayer

Did You Know? Internal Revenue Code, Section 6107(a) requires all paid tax preparers to furnish the taxpayer with a completed copy of their tax return before (or at the same time) the return is presented to the taxpayer for signature. Failure to comply with this law may subject you to an Internal Revenue Code, Section 6695(a) penalty of $50 per occurrence with a maximum assessment of $25,500 in any calendar year. You may provide the taxpayer a copy in any acceptable media, including electronic. It must include all information submitted to the IRS, except it isn’t required to contain your Preparer Tax Identification Number (PTIN).

For more information on Preparer Penalties visit: www.irs.gov/tax-professionals/summary-of-preparer-penalties-under-title-26