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| || LEGISLATIVE & TAX ADMINISTRATION NEWS|
At a recent stakeholders meeting, IRS reported a decline in data breaches at tax firms this year. However, a word of caution is in order if you are looking to purchase a new tax practice: before you buy make sure the tax practice’s data has not been breached. Any data breaches could devalue the practice and pose a threat to the purchasing firm’s data.
The IRS announced plans to upgrade its outdated information technology systems over six years. The new Integrated Modernization Business Plan would cost approximately $2.3 to $2.7 billion and is “built on the need to improve the taxpayer experience, by modernizing core tax administration systems, IRS operations and cybersecurity.” $290 million was included in the FY2020 budget request for the project, but Congress must fund the program moving forward.
A bunch of interesting stuff in here: a focus on the taxpayer experience and real-time processing of returns among many other things. Tax professionals might be interested in the Web Applications Section on page 19. Phase 1 includes disclosure authorization and POA for tax professionals – we are giddy that might mean a modernized CAF.
Looking for a Few Good Women/Men
The IRS is looking for volunteers to serve on the Taxpayer Advocacy Panel (TAP), a federal advisory panel that aims to improve taxpayer service and customer satisfaction. The deadline to apply is May 3, 2019.
Coming to a Town Near You
The IRS Nationwide Tax Forums have been announced for this summer. For the NAEA discount, please use the following code: 2019NAEA#@.
The IRS issued two sets of corrections to the final Section 199A regulations on Wednesday. Document One corrects and clarifies parts of the final regulations that could be misleading. Document Two focus on errors in the final regulations that require correction.
The second round of guidance on the Opportunity Zone program was released this week. Two key issues covered in the proposed regulations are what the term “substantially all” means for purposes of the holding period requirement and defining “use of tangible business property.”
May Interest Rates
Revenue Ruling 2019-12 provides applicable rates for tax purposes for the month of May.
AzDOR reminds individuals with taxable rental properties that they are required to obtain a transaction privilege tax license from ADOR, even if the property is managed by a third party.
A “system error” led FTB to send out refunds too early to approximately 23,500 taxpayers. FTB will be contacting impacted taxpayers directly to correct any changes, if necessary.
Kentucky’s DoR released a new revenue procedure explaining the newly enacted deferred tax deduction available to certain corporate entities. Schedule DTD must be completed and filed no later than July 1, 2019.
The new tax on short-term rentals, such as VRBO, is explained in a Technical Information Release (TIR 19-3) published last week.
Technical Bulletin TB-87 clarifies how the new Section 163(j) interest expense limitation applies for purposes of the New Jersey corporation business tax.
Suffolk County on Long Island has established the first SALT workaround by creating a charitable gift reserve fund for homeowners to pay state and local taxes as a charitable contribution, thus making the property tax payments 95% deductible. The question remains: does this dog hunt?
| || EVERYTHING BUT THE KITCHEN SINK|
We understand IRS has heard the “feedback” on the Form W-4 (including from NAEA) and work is underway to redraft the document for TY20. We understand an early release is anticipated for mid-summer. More to come, we’re sure.
IRS Honey-do List
The GAO reports the IRS has 15 open priority recommendations from last year and six new ones on their to-do list this year.
Another Cost of the Opioid Crisis
A new study in the journal, Medical Care, estimates lost tax revenues due to the opioid crisis. According to the study, the federal government lost $26 billion in income tax revenue because of adverse employment consequences of addiction.
Taxes Aren’t the Only Things That are High
The IRS collected $4.7 billion in taxes from the cannabis industry in 2017.
Families that Steal Together
A father and daughter duo in Florida allegedly ripped off the IRS for $3.4 million.
We Couldn’t Agree More
IRS needs adequate funding NOW, according to a Bloomberg opinion piece.
An Ounce of Prevention is Worth a Pound of Cure
Taxpayers, unhappy with how this filing season turned out (and as we are all too painfully aware “turned out” is NOT a euphemism for accuracy or total tax but for refund size), should take time now to figure out how to prepare for next year.
Those of us who perceive a lot of stress in our lives are at higher risk of heart attacks and other cardiovascular problems over the long term. More from NPR.
“Now I see the secret of making the best person:
it is to grow in the air and to eat and sleep with the Earth.
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NAEA E@lert | Volume 1: Issue 23
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