WASHINGTON - The Internal Revenue Service today warned consumers to be on the lookout for a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number.
The fake emails may include the following message: “Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”

Recipients are directed to click on links that supposedly provide information about the "advocate" assigned to their case or that let them "review reported income." The links lead to web pages that solicit personal information.
Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS's Report Phishing web page.

The Internal Revenue Service and Department of Treasury issued final regulations (TD 9645) on the 0.9-percent Additional Medicare Tax (IRC §3101(b) and 1401(b)).

Effective Jan. 1, 2013, Additional Medicare Tax applies to a taxpayer’s Medicare wages, Railroad Retirement Tax Act compensation, and self-employment income that exceed a threshold amount based on the taxpayer’s filing status.

An employer is responsible for withholding the 0.9% Additional Medicare Tax from wages or RRTA compensation it pays to an employee in excess of $200,000 in a calendar year.  There is no employer match for the Additional Medicare Tax.

For additional information, taxpayers and employers can refer to the questions and answers and the IRS YouTube video about Additional Medicare Tax on IRS.gov.

The rules have changed for taxpayers who plan to itemize 2013 medical deductions. Most people may now deduct only the amount of the total unreimbursed allowable medical expenses that exceeds 10% of adjusted gross income.

There is a temporary exemption for individuals age 65 and older, and their spouses, who may continue to deduct total medical expenses that exceed 7.5% of their adjusted gross income through 2016.

For more information, see the questions and answers on IRS.gov.

Identity theft remains a top priority for the Internal Revenue Service in 2014. Identity theft is one of the fastest growing crimes nationwide, and refund fraud caused by identity theft is one of the biggest challenges facing the IRS. This year, the IRS continues to take new steps and strong actions to protect taxpayers and help victims of identity theft and refund fraud.

Find out what the IRS is doing to combat identity theft and the first steps victims should take by watching this new YouTube video.

Date:	Dec 12, 2013
Time:	1:00 PM - 3:00 PM (Eastern Time)
Hosted By:	SL South Atlantic (Internal Revenue Service (SL-Field))
Presented By:	SL South Atlantic (Internal Revenue Service (SL-Field)), Eugenia P. Tabon (IRS South Atlantic Senior Stakeholder Liaison-Field (North Carolina)), Thomas A. Sheaffer (IRS South Atlantic Senior Stakeholder Liaison-Field (South Carolina)), Rhonda Brown (IRS South Atlantic Senior Stakeholder Liaison-Field (Maryland/DC)), Hebert "Ley" Mills (IRS South Atlantic Senior Stakeholder Liaison-Field (Virginia))

To register for this event, use the following link:

https://events.na.collabserv.com/register.php?id=39496374c5&l=en-US

If clicking the above link does not work, please copy the entire link and paste it into your Web browser.

WASHINGTON - The Internal Revenue Service today issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 56 cents per mile for business miles driven
• 23.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates.  The charitable rate is based on statute.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.  In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51.  Notice 2013-80 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

Register now for this Dec. 11 webinar to find out what payment options are available when you owe the IRS. The webinar will include information on installment payment agreements and offers in compromise.

The Fast Track Settlement program offers small businesses and self-employed individuals a way to more quickly resolve audit issues during the examination process.

During November and December, the IRS will send letters to preparers suspected of filing inaccurate EITC claims. The letters detail the critical issues identified on the returns, explain the consequences of filing inaccurate claims for EITC and advise preparers that IRS will continue monitoring the types of EITC claims they file. Filing inaccurate EITC claims may result in penalty assessment, revocation of IRS e-file privileges and other consequences including barring preparers from tax return preparation.

IRS also plans to conduct visits to some tax preparers to provide education and outreach on meeting EITC Due Diligence requirements.

Avoid penalties. Visit EITC Central to learn more about IRS compliance initiatives and EITC Due Diligence.

An unexpectedly high number of PTIN renewals last week resulted in processing slow-downs, timeouts and inaccessibility for those attempting to renew online. The IRS apologizes for any inconvenience and believes most of these issues have been resolved. If you were unable to register or renew your PTIN last week, please try again. The IRS also suggests practitioners try to avoid peak hours, which are 1 p.m. to 4 p.m. EST. If you are trying to register for the first time, the system supporting new PTINs will be unavailable from 3:30 p.m. Saturday until 8 a.m. Tuesday for maintenance. Renew your PTIN here.