Author Archives: c06876406

IRS Launches New Tax Withholding Calculator

Checking your withholding just got easier. The IRS launched a new IRS Tax Withholding Estimator. As part of a continuing effort to improve quality services for taxpayers, the IRS upgraded this tool, which replaces the Withholding Calculator, and gave it a facelift.

More than just a name change
The Tax Withholding Estimator offers taxpayers a more user-friendly, step-by-step tool for tailoring the amount of income tax they have withheld from wages and pension payments. More people with certain tax situations can use this tool than before, such as retirees and self-employed individuals. The newly designed, mobile-friendly tool has plain language throughout to improve comprehension, and several new functions. You can learn more about key improvements in the attached materials.

Time is right

The IRS urges taxpayers to check their withholding each year and adjust it, if needed, to avoid tax filing surprises. The new Tax Withholding Estimator will help anyone doing tax planning for the last few months of 2019. It’s especially important to use the estimator now:

  • If a taxpayer faced an unexpected tax bill or a penalty when they filed this year.
  • If a taxpayer made withholding adjustments in 2018.
  • If a taxpayer has or will experience a change in marital status, dependents, income or jobs this year.
  • Because taxpayers can make estimated tax payments to the IRS instead of adjusting their withholding, and the next payment deadline is Sept. 16.

How you can help:

1)    If you previously linked to the IRS Withholding Calculator, you can update the link text on your website to reflect the new name, “IRS Tax Withholding Estimator.” You don’t need to change the former URL, however. The IRS will automatically redirect your users to the new tool from the former URL.

2)    Please share the attached resources with your members, clients or employees through your website, emails, social media accounts, newsletters or other channels.

Resources

Check the Paycheck Checkup section of this Resources page or on our Tax Info to Share page. 

Other resources and general information from IRS.gov:

  • Share #IRS info on your social media. You can find #PaycheckCheckup information and more on the IRS’s social media accounts:
  • Instagram: IRSNews
  • IRS Twitter accounts:
  • @IRSnews – IRS news and tips for the public
  • @IRSsmallbiz – Information for small businesses
  • @IRStaxpros – IRS information for tax professionals
  • @IRSenEspanol – IRS news and tips in Spanish
  • Facebook: IRS
  • Updated fact sheets: Learn the basics of withholding and estimated tax payments
  • FS-2019-4 – Tax withholding: How to get it right
  • FS-2019-6 – Basics of estimated taxes for individuals
  • Paycheck Checkup page on IRS.gov
  • Tax Reform Resources page

NYSDTF Glitch – DTF-160: Account Adjustment Notice – April 2019

From the NYSDTF (April 2019):

Due to a systems error, beginning mid-April 2019, notices (DTF-160 Notice Code: 3201) were sent to some taxpayers whose returns have been processed without issue and had their claimed refunds paid in full. If the “previously refunded amount” listed on the notice matches the refund the taxpayer claimed and has already received, then the taxpayer should disregard the notice. If, however, the “previously refunded amount” does not match the refund claimed and received, the taxpayer should follow the instructions for responding to the notice.

Notices have been  sent to taxpayers that have filing issues that must be resolved.    While we want to reassure those erroneous notice recipients who don’t have potential issues us – those with no refund adjustments – that they can disregard the notice, we want to encourage the others to contact us as per the notice.

IR-2019-24 and N-2019-17: Penalty waived for farmers and fishermen

Attached for immediate release is IRS News Release 2019-24, IRS waives estimated tax penalty for farmers, fishermen who file returns and pay tax by April 15.

Also attached is Notice 2019-17 announces a waiver of the addition to tax under section 6654 for underpayment of estimated income tax by qualifying farmers and fishermen for the 2018 tax year.  This addition to tax is waived for any qualifying farmer or fisherman who, by the normal deadline for filing the 2018 federal income tax return (April 15, 2019 for most taxpayers), files his or her 2018 federal income tax return, attaches a specified waiver form to the return, and pays in full any tax reported on the return as payable.

Notice 2019-17 will be in IRB: 2019-12 , dated 03/18/2019.

Reissuing Notice 2019-20:Penalty Relief for Missing Negative Tax Basis

Attached  is Notice 2019-20, which is being reissued to include penalty relief under section 6038 and other penalty provisions.

This Notice provides a waiver of penalties under sections 6722, 6698, 6038 and other penalty provisions to certain persons and partnerships that file Schedules K-1 or other forms or statements that fail to report information about partners’ negative tax basis capital accounts for the 2018 tax year. The relief is conditioned on taxpayers providing the missing information in a separate schedule within a year of the original due date of the Schedule K-1 or other form or statement. Please share with your members and colleagues.

The attached file is blocked in yellow where changes were made.

https://c06876406.preview.getnetset.com/files/Reissuing-Notice-2019-20-IRS.pdf

Phyllis Jo Kubey, EA, testifies at a U.S. Senate hearing on IRS Reform

July 26, 2018
NAEA exists to protect, promote and provide for our profession. One of the most difficult accomplishments for any association is to be invited to testify before Congress. Such testimony invariably raises the profession’s profile and sends the message it is influencing policy.
We have had two such opportunities within the past seven months. Today, July 26, 2018, Phyllis Jo Kubey, EA, represented NAEA at a Senate hearing focused on IRS reform and newly introduced legislation  that includes many issues NAEA raised in a widely-distributed IRS reform white paper.
NAEA was the only tax professional organization invited to testify. This speaks to the ongoing efforts of our Government Relations team and to the growing awareness by key congressional committees of the important role enrolled agents play in tax policy and effective tax administration.
The Senate Finance Committee live streamed Phyllis’s testimony. You will be able to review the testimony in its entirety, or just fast forward to the parts where she is speaking.
NOTE:  When viewing the Senate hearing, fast-forward to around 16:50 for the beginning (not sure why there is this pause).  Phyllis comes on around 32:50.

IRS Liaison Seeks EAs and CPAs for Nationwide Tax Forums Online Review

The IRS Office of National Public Liaison is soliciting CPAs and Enrolled Agents to review the new curriculum for the IRS Nationwide Tax Forums Online (NTFO) Curriculum.

NTFO provides education for tax professionals from the IRS Nationwide Tax Forums. Each online, self-study seminar includes interactive video synchronized with PowerPoint presentations, alongside downloadable slides and complete transcripts.

Volunteers who participate in the upcoming review may be eligible for CPE credit for each seminar completed. Testing is expected to begin Sept. 14, 2018, and end Sept. 21, 2018. Volunteers must agree to meet deadlines provided at the time of assignment for each seminar. Although the IRS offers this opportunity to receive CPE credit, it is the responsibility of the reviewer to check with his or her respective state board of accountancy regarding rules governing CPE credit in the reviewer’s state. The Review is completed remotely via computer.

The IRS Office of National Public Liaison will organize an informational conference call to brief selected volunteers and to answer questions. Volunteers will need a computer with internet access, provide a working email address that does not block mass emails and be either a licensed CPA or Enrolled Agent at the time of testing.

Please review the attached solicitation and submit your information via email by close of business on Aug. 31, 2018.

NYS Tax Department Updates Power of Attorney Form and Process – July 2017

Based on feedback from tax professionals and taxpayers, the NYS Tax Department recently revised Form POA-1, Power of Attorney, and implemented a power of attorney (POA) web application to make it easy to file. The changes are part of the department’s ongoing effort to make its forms more user-friendly and to enhance its operational efficiency.

You can click on this link to read the details.