IRS Updates. Richard Furlong, Jr. Senior Stakeholder Liaison

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1 IRS Updates Richard Furlong, Jr. Senior Stakeholder Liaison South Jersey Working Together Conference June 7, 2018

2 Estimated Tax Payments: Why Pay As You Go? Steady increase in penalties over the last several years, almost 40% You should check into your options to avoid the penalties and a large tax bill when you file your tax return Pay As You Go, So You Won t Owe page can help

3 IRS Payment Options

4 IRS.gov/DirectPay Click Make a Payment to Get Started And Follow the 5 Easy Steps

5 Direct Pay No pre-enrollment Only available to pay 1040 series Schedule up to 30 days in advance Direct Pay is available during the following hours: Monday to Saturday: Midnight to 11:45 p.m. ET Sunday: 7 a.m. to 11:45 p.m. ET

6 Can t Pay Now?

7 Understanding an IRS Notice or Letter Richard Furlong, Jr. Senior Stakeholder Liaison South Jersey Working Together Conference June 7, 2018

8 Reasons taxpayers receive notices or letters They have a balance due; They are due a larger or smaller refund; We have a question about their tax return; We need to verify their identity; They need to provide additional information; We changed their return; We need to notify them about delays in processing their return; or They owe additional tax.

9 Top 10 notices for May and June Top 10 Taxpayer Correspondence by Volume May & June FY2017 (5/1/2017-6/30/2017) Product Number Product Title Volume CP14 Balance Due $5 or More, No Math Error 4,378,426 CP521 Installment Agreement Reminder Notice 3,962,786 CP49 Overpayment Adjustment - Offset 2,669,128 CP148A BMF Change of Address Notification sent to new address 1,207,545 CP148B BMF Change of Address Notification sent to old address 1,207,544 CP504 Final Balance Due Notice 1,191,644 CP21B CP 21B - Data Processing Adjustment Notice, Overpayment 1,059,697 LTR2645C Interim Letter 926,289 CP2000 Request for Verification of Unreported Income, Payments, o 775,360 CP301 Online Services eauthentication Acknowledgement Notice 720,860 Source of the data is Correspondence Management Information System (CMIS) and Compliance Data Warehouse (CDW)

10 More Information Check Understanding Your IRS Notice or Letter on IRS.gov for more information.

11 Practitioner Priority Service (PPS) Richard Furlong, Jr. Senior Stakeholder Liaison South Jersey Working Together Conference June 7, 2018

12 Practitioner Priority Service (PPS) Practitioner Priority Service is a nationwide toll-free, account related service available to tax practitioners. PPS Account Service is available to tax practitioners (individuals and businesses) who provide tax advice, prepare income taxes or act on the taxpayer s behalf and are calling in regards to an account related issue before the IRS.

13 Practitioner Priority Service (PPS) PPS serves tax practitioners as the first point of contact for assistance regarding their clients' account related issues. Improves overall consistency and quality of taxpayer service. Available to tax practitioners with valid Form 2848, Form 8821, Form 8655 or other third party designee authorizations.

14 Practitioner Priority Service (PPS) Hours of Service: 7:00 a.m. to 7:00 p.m. local time Alaska & Hawaii follow Pacific Time Puerto Rico practitioners- 8:00 a.m. to 8:00 p.m. local time.

15 Practitioner Priority Service (PPS) PPS Toll-Free Line is staffed in 7 locations that handle Individual Accounts issues. Individual Accounts Brookhaven Buffalo Memphis Nashville Philadelphia Pittsburgh

16 Practitioner Priority Service (PPS) PPS Toll-Free Line is staffed in 3 that specialize in Business Account issues Business Accounts Cincinnati Oakland Ogden

17 Practitioner Priority Service (PPS) The following account related services are offered in all Accounts Management locations. Resolving taxpayer account problems by: Locating and applying payments Explaining IRS communications (i.e., notices and letters) Providing general procedural guidance and timeframes

18 Practitioner Priority Service (PPS) Continued from Previous Slide Resolving taxpayer account problems by: Making account adjustments Securing taxpayer income verification Providing transcripts of taxpayer accounts

19 Practitioner Priority Service (PPS) Services that are Out of Scope for Accounts Management PPS Assistors Tax Law questions Accounts assigned to: Automated Collection Services (ACS) cases, Automated Under Reporter (AUR) cases, Correspondence Examination cases, or Cases assigned to Revenue Officer Calls for specific employees

20 Practitioner Priority Service (PPS) PPS voice options: Option 1 - Tax Law questions Option 2 - Individual Accounts not in collection or examination status Option 3 - Business Accounts not in collection or examination status Option 4 - Automated Collection System (ACS) status Option 5 - Automated Under Reporter (AUR) status Option 6 - Correspondence Examination

21 Taxpayer Digital Communications (TDC) Secure Messaging Correspondence Examination Pilot Program Richard Furlong, Jr. Senior Stakeholder Liaison South Jersey Working Together Conference June 7, 2018

22 SB/SE TDC Pilot Program Correspondence Examinations SB/SE Schedule A, Education Credit, and Child Case Credit audits by mail Philadelphia Correspondence Examination Operation Secure Messaging Interaction using secure online environment Invitation only Taxpayers and POA clients receive TDC reply option in the audit letter

23 SB/SE TDC - Taxpayer Representative Participation Taxpayers signed up for Secure Messaging Taxpayers and their representatives must pass the IRS Secure Access Representative already in the CAF database Representatives authenticate under their SSN and have their own account

24 SB/SE TDC Secure Messaging TDC Secure Messaging Initial pilot launched FY 17 Lasted a little over a year 9,150 taxpayer invites Over 1,000 successful sign-ups Evaluating pilot results Phase II of the pilot is underway ~19,000 invitations planned

25 Virtual Currency Richard Furlong, Jr. Senior Stakeholder Liaison South Jersey Working Together Conference June 7, 2018

26 What is a Virtual Currency? Digital representation of value Is not legal tender

27 Tax consequences IRS Notice

28 Virtual Currency Information on IRS.gov IRS.gov key word Virtual Currency Publication 525, Taxable and Nontaxable Income Notice

29 Questions? Richard Furlong, Jr. Senior Stakeholder Liaison

June 2, 2016 South Jersey Working Together Conference

June 2, 2016 South Jersey Working Together Conference PPS Account Service is available to tax practitioners (individuals and businesses) who provide tax advice, prepare income taxes or act on the taxpayer