IRS Tax News

  • 09 Dec 2013 3:43 PM | Anonymous


    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.

  • 06 Dec 2013 3:33 PM | Anonymous

    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.

  • 08 Nov 2013 7:02 PM | Anonymous
    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.
  • 08 Nov 2013 7:01 PM | Anonymous
    The Fast Track Settlement program offers small businesses and self-employed individuals a way to more quickly resolve audit issues during the examination process.
  • 08 Nov 2013 6:59 PM | Anonymous

    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.

  • 08 Nov 2013 6:58 PM | Anonymous
    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.
  • 08 Nov 2013 6:54 PM | Anonymous
    The IRS today reminds tax professionals that they can earn continuing professional education credits online through seminars filmed at the 2013 IRS Nationwide Tax Forums. The 14 self-study seminars are now available on the IRS Nationwide Tax Forums Online (NTFO) site. Self-study seminars provide information to students using interactive videos, PowerPoint slides and transcripts.
  • 31 Oct 2013 1:01 PM | Anonymous

    WASHINGTON undefined The Internal Revenue Service today reminded the nation’s almost 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014. All current PTINs will expire on Dec. 31, 2013.

    Anyone who, for compensation, prepares or helps prepare any federal return or claim for refund must have a valid PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared.

    “We ask that you renew your PTIN as soon as possible to avoid a last-minute rush. It’s easy to let this slip as the holiday season approaches,” said Carol A. Campbell, Director, IRS Return Preparer Office.

    The PTIN system is ready to accept applications for 2014.

    For those who already have a 2013 PTIN, the renewal process can be completed online and only takes a few moments. The renewal fee is $63. If you can’t remember your user ID and password, there are online tools to assist you. Preparers can get started at www.irs.gov/ptin.

    If you are registering for the first time, the PTIN application fee is $64.25 and the process may also be completed online.

    Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal, is available for paper applications and renewals, but takes four to six weeks to process. Failure to have and use a valid PTIN may result in penalties. All enrolled agents, regardless of whether they prepare returns, must have a PTIN in order to maintain their status.

    There have been a number of enhancements to the online PTIN system since last year. They include:
    • The fully functional "Manage My Account" tool allowing preparers to self-correct almost any field at any time (including professional credentials). Previously, most changes had to be made during renewal. A phone call was required for users to make changes during the rest of the year. However, for security reasons, name changes still require written documentation.
    • Preparers can now view completed continuing education programs reported by IRS-approved providers beginning with 2013 courses. Providers report completed CE programs to the IRS based on your PTIN number. Enrolled agents must have a minimum of 16 CE hours annually and a total of 72 hours every three years. Others can also view voluntary programs completed. If something is missing, contact your provider directly as we only display what providers send to us.
    • Planning to take a year off for any reason? A new function allows certain preparers to inactivate their PTINs voluntarily and then reactivate the same number when they return to work. This is only for those preparers who plan to take a full year off. If you are paid to prepare tax returns during any part of a year, you must have a valid PTIN. Note: Enrolled agents must maintain a valid PTIN each year in order to maintain their EA credential and therefore are not eligible to inactivate their PTIN.

    For more information about requirements for federal tax professionals and access to the online PTIN system, go to www.irs.gov/for-Tax-Pros.

  • 23 Oct 2013 10:15 AM | Anonymous

    WASHINGTON–The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.

    The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

    The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.

    About 90 percent of IRS operations were closed during the shutdown, with some major workstreams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.

    “Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers. We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”

    The IRS will not process paper tax returns before the start date, which will be announced in December. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit. The April 15 tax deadline is set by statute and will remain in place. However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.
    IRS processes, applications and databases must be updated annually to reflect tax law updates, business process changes, and programming updates in time for the start of the filing season.

    The IRS continues resuming and assessing operations following the 16-day closure. The IRS is seeing heavy demand on its toll-free telephone lines, walk-in sites and other services from taxpayers and tax practitioners.
    During the closure, the IRS received 400,000 pieces of correspondence, on top of the 1 million items already being processed before the shutdown.

    The IRS encourages taxpayers to wait to call or visit if their issue is not urgent, and to continue to use automated applications on IRS.gov whenever possible.

    “In the days ahead, we will continue assessing the impact of the shutdown on IRS operations, and we will do everything we can to work through the backlog and pent-up demand,” Werfel said. “We greatly appreciate the patience of taxpayers and the tax professional community during this period.”
  • 22 Oct 2013 11:26 AM | Anonymous
    Sometimes, when the right opportunity presents itself, you may be able to pay for goods and services that you need or want by trading goods that you own, or providing a service that you can perform in return. Full story.
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