IR-2019-167, October 9, 2019
WASHINGTON — As part of a wider effort to assist taxpayers and to enforce the tax laws in a rapidly changing area, the Internal Revenue Service today issued two new pieces of guidance for taxpayers who engage in transactions involving virtual currency.
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IRS Tax Tip 2019-142, October 10, 2019
Taxpayers who donate to a charity may be able to claim a deduction on their tax return. These deductions basically reduce the amount of their taxable income. Taxpayers can only deduct charitable contributions if they itemize deductions.
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2 million ITINs set to expire in 2019; to avoid refund delays apply soon IR-2019-168, October 10, 2019
WASHINGTON —Taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) can get their ITINs renewed more quickly and avoid refund delays next year by submitting their renewal application soon, the Internal Revenue Service said today.
An ITIN is a tax ID number used by taxpayers who don’t qualify to get a Social Security number. Any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of this year. In addition, any ITIN not used on a tax return in the past three years will expire. As a reminder, ITINs with middle digits 70 through 82 that expired in 2016, 2017 or 2018 can also be renewed.
The IRS urges anyone affected to file a complete renewal application, Form W-7, Application for IRS Individual Taxpayer Identification Number, as soon as possible. Be sure to include all required ID and residency documents. Failure to do so will delay processing until the IRS receives these documents. With nearly 2 million taxpayer households impacted, applying now will help avoid the rush as well as refund and processing delays in 2020.
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IRS Announces New Per Diem Rates For Taxpayers Who Travel For Business
The new per-diem numbers are now out, effective October 1, 2019. These numbers are to be used for per-diem allowances paid to any employee on or after October 1, 2019, for travel away from home. The new rates include those for the transportation industry; the rate for the incidental expenses; and the rates and list of high-cost localities for purposes of the high-low substantiation method.
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IRS Tax Tip 2019-141, October 9, 2019
Taxpayers who claim at least one child as their dependent on their tax return may be eligible to benefit from the child tax credit. It’s important for people who might qualify for this credit to review the eligibility rules to make sure they still qualify. Taxpayers who haven’t qualified in the past should also check because they may now be able to claim the credit.
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IR-2019-160, September 30, 2019
WASHINGTON – On September 30, 2019, the IRS issued a draft of the tax year 2019 Form 1065, U.S. Return of Partnership Income (PDF), and its Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc (PDF). The changes to the form and schedule aim to improve the quality of the information reported by partnerships both to the IRS and the partners of such entities.
In addition, certain similar changes can be found in the draft of the tax year 2019 Form 1120-S, U.S. Income Tax Return for an S Corporation (PDF), and its Schedule K-1 , Shareholder’s Share of Income, Deductions, Credits, etc., (PDF) which were also released.
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IRS Tax Tip 2019-137, October 2, 2019
Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies. Doing this throughout the year can add up fast. Fortunately, eligible educators may be able to defray qualified expenses they paid in 2019 when they file their tax return in 2020.
Educators who work in schools may qualify to deduct up to $250 of unreimbursed expenses. That amount goes up to $500 if two qualified educators are married and file a joint return. However, neither spouse can deduct more than $250 of his or her qualified expenses when they file.
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IRS Tax Tip 2019-138, October 3, 2019
Taxpayers with dependents may qualify to claim a few different tax credits. One of these is the child tax credit. The child tax credit benefits people whose dependent meets a series of tests. If the dependent doesn’t meet those qualifications, the taxpayer may be able to claim the credit for other dependents.
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IRS Tax Tip 2019-119, August 29, 2019
Tax pros must create a written security plan to protect their clients’ data. In fact, the law requires them to make this plan.
Creating a data security plan is one part of the new Taxes-Security-Together Checklist. The IRS and its Security Summit partners created this checklist. It helps tax professionals protect sensitive data in their offices and on their computers.
Many tax preparers may not realize they are required under federal law to have a data security plan. Each plan should be tailored for each specific office. When creating it, the tax professional should take several factors into consideration. This includes things like the company’s size, the nature of its activities, and the sensitivity of its customer information.
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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.
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