IRS NEWS FOR TAX PROFESSIONALS MAY 2014

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1 IRS NEWS FOR TAX PROFESSIONALS MAY 2014 READERS NOTE: We have listed the linked items separately in this issue, because of a security vulnerability in Microsoft Outlook. When that is fixed, we will return to our previous format. Read the latest Health Care Tax Tips Find Out if Your Health Insurance Coverage is Considered Minimum Essential Coverage Under the Affordable Care Act What do I need to know about the Health Care Law for my 2013 Tax Return? Changes in Circumstances can Affect your Premium Tax Credit Hot Issues Quarter Industry Issues Quarterly IMRS Monthly Overview YOUR PRACTICE The IRS is requesting the help of tax professionals: Please refer only taxpayers who receive Letter 5071C or Letter 4883C to the Taxpayer Protection Program (TPP) toll-free line. The TPP line is set up for identity verification for letter recipients. But TPP assistors do not have information to help your clients with other issues such as refund inquiries. For faster service on refund inquiries, please refer your clients to Where s My Refund? A qualified tax professional who has a Form 8821, Tax Information Authorization, on file may now request a client s account transcript using the Transcript Delivery System (TDS). Form 8821 must be on file with the Centralized Authorization File (CAF) naming the individual, not the individual s business, as the appointee for the client. TDS transcripts can be requested if either Form 8821 or Form 2848 is on file with the CAF. As a reminder, users must meet the requirements of Circular 230 or be an Electronic Return Originator (ERO) with five or more accepted returns in order to register and use TDS. Transcript Delivery System No Longer Processes Transcript Requests for ID Theft Victims through the Transcript Delivery System (TDS) in cases where an identity theft indicator has been placed on a taxpayer account. Instead, the taxpayer will receive notice that a request was made for his or her transcript. The notice will instruct the taxpayer to contact the Identity Protection Specialized Unit at Upon authentication, the IRS will issue a transcript to the taxpayer. May

2 Preparers will not be able to see any 2012 continuing education uploads in their accounts. The requirement for PTIN reporting became effective in Preparers can see all PTIN continuing education uploaded into their PTIN accounts for 2013 and after. WEB TIPS Publication 5117 bookmark: Connect faster to IRS with new Quick Response code bookmark A new bookmark contains Quick Response codes to connect your Smartphone to current, prior year and accessible forms and publications and IRS.gov. Download the bookmark and share it with your friends and family. Use your Smartphone to scan a QR code for instantaneous access. Taxpayers can learn to use the IRS Tax Calendars by following an easy, step-bystep instructional video on YouTube. Available in English and Spanish, the online calendars are accessible from computers, smartphones or tablets. The user can view all federal tax due dates for each month and filter those dates to meet their needs. The calendar includes dates for taxpayers who are monthly or semiweekly depositors, and for excise tax due dates and other events. Tax Information is available through IRS Social Media Tools, Including videos, (English, multi-lingual and American Sign Language) Twitter, Facebook, and Tumbler MISCELLANEOUS, TAX TIPS, FACT SHEETS Read the latest IRS Tax Tips Four Tips If You Can't Pay Your Taxes on Time What You Should Know if You Need More Time to File Your Taxes Ten Facts about Amended Tax Returns Top Tips on Making IRA Contributions Tips on Making Estimated Tax Payments Four Things to Know about Net Investment Income Tax Energy-Efficient Home Improvements Can Lower Your Taxes Eight Common Tax Mistakes to Avoid Six Tips to Make Filing Less Taxing Ten Helpful Tips for Farm Tax Returns Tips for U.S. Taxpayers with Foreign Income Get Connected to the IRS with Social Media Two Tax Credits Help Pay Higher Education Costs May

3 Top 10 Tax Time Tips from the IRS Tips on Deducting Charitable Contributions Tax Rules for Children with Investment Income Don't Overlook the Child and Dependent Care Tax Credit Home Office Deduction Features Simpler Option Early Retirement Plan Withdrawals and Your Taxes Tips for Self-employed Taxpayers Five Tax Credits that Can Reduce Your Taxes Free Tax Help for Military Families Free Tax Help for Military Families Special Exclusion for Cancelled Home Mortgage Debt Help Yourself: Visit IRS.gov Itemizing vs. Standard Deduction: Six Tips to Help You Choose Special Time Expiring to Claim $760 Million in Refunds for 2010 Tax Returns IR NEWS RELEASES Read the latest IRS News Releases IRS Statement on "Heartbleed" and Filing Season IRS Statement on Data Security Employee Issue IR RS Debunks Frivolous Tax Arguments IR IRS Intensifies Work on Identity Theft and Refund Fraud; Criminal Investigation Enforcement Actions Underway Across the Nation IR With Less Than a Week Until the Tax Filing Deadline, Taxpayers can get Extra Time to File IR Tax Information Available Through IRS Social Media Tools IR Last-Minute Filers: Avoid Common Errors IR New Law Offers Special Tax Option for Philippines Relief Donations; Cash Contributions Until April 14 Can Be Claimed On 2013 Returns IR IRS Gives Tax Relief to Washington State Mudslide and Flooding Victims; Return Filing and Tax Payment Deadlines Extended to Oct. 15 IR Prepared Remarks of Commissioner of Internal Revenue Service John Koskinen IR IRS Seeks Applications for Information Reporting Program Advisory Committee. IR , IRS2Go 4.0 Smartphone App Downloads Surpass 2.3 Million IR IRS Warns of New Phishing Scheme Falsely Claiming to be from the Taxpayer Advocate Service IR IRS Virtual Currency Guidance: Virtual Currency Is Treated as Property for U.S. May

4 Federal Tax Purposes; General Rules for Property Transactions Apply IR IRS Gives Colorado Flood Victims More Time To Decide When To Claim Losses IR IRS Bars Appraisers from Valuing Facade Easements for Federal Tax Purposes for Five Years IR IRS Encourages Small Employers to Check Out Small Business Health Care Tax Credit; Helpful Resources, Tax Tips Available on IRS.gov ANNOUNCEMENTS Announcement The Advance Pricing Agreement Report for The Advance Pricing Agreement report is released annually, as required by statute. Announcement provides transition relief for owners of Individual Retirement Accounts and Individual Retirement Annuities (collectively, IRAs ) relating to the application of the one-rollover-per-year limitation of 408(d)(3)(B) of the Internal Revenue Code. Announcement informs employers that starting May 1, 2014 and ending April 30, 2016, the Service will accept applications for individual determination letters from employers under the second six-year remedial amendment cycle for defined contribution pre-approved plans. Announcement provides guidance to foreign financial institutions (FFIs) in jurisdictions that have not signed an intergovernmental FATCA agreement, but that have reached an agreement in substance with the United States on the terms of an IGA. NOTICES Notice solicits public comments on recommendations for items that should be included on the Guidance Priority List. Notice FAQs on Virtual Currency pdf Notice provides guidance on the application (including the retroactive application) of the decision in United States v. Windsor, to retirement plans qualified under section 401(a) of the Code. May

5 Notice Per Capita Payments from Proceeds of Settlements of Indian Tribal Trust Cases Notice provides guidance for 2014 that will allow taxpayers who are the victims of domestic violence to satisfy the joint filing requirement of 36B(c)(1)(C) with a married-filing-separate return, in order to obtain the premium tax credit. The notice also informs that the IRS and Treasury will be issuing regulations on this subject. Notice Health Insurance Providers Fee; Procedural and Administrative Guidance REVENUE RULINGS Revenue Ruling provides simplified safe harbor due diligence procedures a plan administrator may use in order to be deemed to have reasonably concluded that an amount was a valid rollover contribution. REVENUE PROCEDURES Revenue Procedure provides a determination by the Commissioner that if an affiliated group meets the conditions described therein, an affiliated group that actually failed to file a Form 1122 is treated as if it filed such form and thus joined in the making of a consolidated return by the affiliated group. Revenue Procedure provides the list of countries for tax year 2013 for which the minimum time requirements are waived for purposes of the foreign earned income exclusion. Revenue Procedure modifies Rev. Proc , I.R.B. 985, which sets forth the procedures of the Internal Revenue Service (Service) for issuing opinion and advisory letters for 403(b) pre-approved plans (that is, 403(b) prototype plans and 403(b) volume submitter plans). REPORTS AND STATISTICS IR IRS Releases FY 2013 Data Book IR Winter 2014 Statistics of Income Bulletin Now Available May

6 LOCAL/OTHER AGENCY Central Area IMRS Webinar You are invited to attend the 3 rd Quarter IMRS Webinar. This event is free. Information to attend is included in the above link Oklahoma Small Business Forum You are invited to attend the Oklahoma Small Business Forum to learn about the latest resources for Small Business Owners; Build a coalition to better serve small business owners; Partner and Assist each other in our Small Business Events and to discuss concerns and issues. Information to register and attend is included in the above link. Beginning August 2014, the Social Security Administration will no longer issue Social Security number printouts in local field offices. Individuals, who need proof of their Social Security number (SSN) and cannot find their card, will need to apply for a free replacement card. Reminder: businesses can verify employee SSN s online at no charge with Business Services Online instructions for how to replace or update a Social Security card are on the SSA website, Beginning in October 2014, local Social Security offices will stop providing benefit verification letters, except in emergency situations. Free benefit verification letters are available online, and can be obtained by registering for a Social Security account at requested through the Social Security national toll-free number, / TTY (7:00am 7:00pm business days). SSN cards and benefit verification letters are mailed from central processing points, not the local office. People should plan ahead and allow about 10 +/- days to receive either one. Additional materials are in the factsheets section at Young people of today are the entrepreneurs of the future. The SBA has developed a Teen Website designed to introduce young entrepreneurs to the concept of small business ownership as a viable career choice. This innovative Website helps young people shape and implement their dreams of entrepreneurship. From the SBA: Young Entrepreneurs An Essential guide to Starting Your Own Business. This online course explores the fundamentals of entrepreneurialism, delves into the 'must do' steps involved in starting a business, and explores the many entrepreneurial support resources, both online and in the community that can provide invaluable help, as you start to grow your new venture. May

7 The SBA s Small Business Learning Center provides a multitude of courses for starting or expanding a business. The courses are designed by subject matter experts many from renowned universities. The Small Business Learning Center courses are free and available 24/7. The State of Unemployment: How Many Jobs Does It Take? The state Jobs Calculator is up to date with January data from the U.S. Bureau of Labor Statistics. Find out how many jobs it takes to reach a target unemployment rate in your state. State&s= Explore the Entrepreneurship.org Resource Center to find information about all aspects of starting and growing a business. Designed with entrepreneurs, policy makers, investors, mentors and academics in mind, our resource center allows you to rate and comment on the materials posted by the community. Micro-enterprise Links includes government, non-governmental and other links. May

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION Results of the 2015 Filing Season August 31, 2015 Reference Number: 2015-40-080 This report has cleared the Treasury Inspector General for Tax Administration