Francine Schoonmaker of the New York State Department of Taxation and Finance talks about updates to New York State tax law for the 2020 tax filing year.
The New York State Tax Department has issued guidance regarding the use of electronic signatures on e-file authorizations (TR-579 forms) collected by tax preparers.
To view the entire document, visit TSB-M-20(1)C, (2)I, E-File Authorizations (TR-579 forms) for Taxpayers Using a Paid Preparer for Electronically Filed Tax Returns.
The following is a message from the IRS Wage & Investment Division:
We wanted to give you a heads up on some important information for your clients and for you involving the Identity Protection PIN. Starting in January 2021, the IRS will expand the IP PIN voluntary opt-in program nationwide. The six-digit IP PIN provides additional protection against tax-related identity theft.
Here’s how it works:
- Starting in January 2021, taxpayers may go to the Get an IP PIN tool on IRS.gov, pass Secure Access authentication and immediately access a six-digit IP PIN.
- Do not file a Form 14039, Identity Theft Affidavit, for clients who are not tax-related identity theft victims and who are voluntarily opting into the program.
- When prompted by tax preparation products, clients or their tax preparers must enter the IP PIN issued to the primary and/or secondary taxpayers or their dependents.
- An electronic return without a correct IP PIN will be rejected; paper returns will be subject to greater scrutiny.
- Taxpayers with either a Social Security number (SSN) or Individual Tax Identification Number (ITIN) who can verify their identities are eligible.
- An IP PIN is valid for one calendar year. Clients must obtain a new IP PIN each year at the start of the filing season by accessing the account they created at www.irs.gov/ippin.
- While currently there is no opt-out feature, we are looking to add this feature later for taxpayers with online access.
Alternatives to online Get an IP PIN tool:
- Taxpayers who cannot authenticate their identities online and who made $72,000 or less may file Form 15227, which will be available January 2021. An IRS assistor will call taxpayers to ask a series of questions to verify their identities. An IP PIN will be issued at the start of the next calendar year.
- Taxpayers who cannot authenticate online and who made more than $72,000 will have an option, still being vetted, to verify their identities in person at an IRS office. An IP PIN will be issued within 3 weeks if their identity is authenticated at a local office.
No change for victims of tax-related identity theft:
- File a Form 14039 for clients whose e-filed returns reject because a duplicate SSN filing; mail it with the client’s paper tax return.
- The IRS will investigate the case and remove the fraudulent return.
- Once the case is resolved, the client automatically will receive an IP PIN via postal mail at the start of the next calendar year.
- Confirmed identity theft victims may not opt-out of the IP PIN program because of risks.
We will keep you in the loop as we move forward. It’s likely that 2021 will be a test-and-learn year, and we may make additional changes as we receive feedback from taxpayers and tax professionals.
NYSSEA learned late yesterday (June 29, 2020) that the NYS Department of Taxation & Finance’s Notice N-20-8 is incorrect. https://www.tax.ny.gov/pdf/notices/n20-8.pdf
The notice says that the 1st quarter estimated tax payment is due 6/15 and the 2nd quarter 7/15, but in fact, it’s the opposite. The 1st quarter payment is due 7/15, and the 2nd quarter is (was) due 6/15.
NYSSEA strongly urged NYSDTF to notify taxpayers and the tax professional community promptly.
IRS announces Form 1040-X electronic filing options coming this summer; major milestone reached for electronic returns
NOTE: Initially, this will be offered only for tax year 2019
IR-2020-107, May 28, 2020
WASHINGTON — The Internal Revenue Service announced today that later this summer taxpayers will for the first time be able to file their Form 1040-X, Amended U.S Individual Income Tax Return, electronically using available tax software products.
Making the 1040-X an electronically filed form has been a goal of the IRS for a number of years. It’s also been an ongoing request from the nation’s tax professional community and has been a continuing recommendation from the Internal Revenue Service Advisory Council (IRSAC) and Electronic Tax Administration Advisory Committee (ETAAC).
Currently, taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form.
Read more…click here.
IR-2020-58, March 21, 2020
WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
Electronic Funds Withdrawal (EFW) is an integrated e-file/e-pay option offered only when filing your federal taxes using tax preparation software or through a tax professional. Using this payment option, you may submit one or more payment requests for direct debit from your designated bank account.
Get more details from the IRS by clicking here.
The U.S. Chamber has compiled CDC’s coronavirus recommendations for businesses and workers across the country. They continue to encourage American businesses to follow data-based guidance from the CDC and state and local officials. Click the link below to find sharable graphics based on the CDC’s latest guidance for businesses and employees. They encourage everyone to share these assets on social media, websites, and other channels, and send them to colleagues and employees.