Tax & Current Accounting Topics

Tips for taxpayers who need to file a new W-4 

https://www.irs.gov/newsroom/tips-for 

https://accountinginstruction.info

All taxpayers should review their withholding annually. They can use the IRS Tax Withholding Estimator to check and make sure they're not having too little or too much federal tax withheld. This tool offers workers, retirees and self-employed individuals a step-by-step method to help figure out if they should adjust their withholding.  Those who need to adjust their withholding should submit a new Form W-4, Employee's Withholding Certificate to their employer.

IRS provides tax relief for victims of California wildfires; Oct. 15 deadline, other dates extended to Dec. 15 

https://www.irs.gov/newsroom/irs-prov

https://accountinginstruction.info

Victims of the California wildfires that began August 14 now have until December 15, 2020 to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.  The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo counties in California, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

As peak hurricane season nears, IRS reminds people to prepare for natural disasters 

https://www.irs.gov/newsroom/as-peak

https://accountinginstruction.info

The Internal Revenue Service reminds people to create or maintain an emergency preparedness plan. A well-thought-out plan is a critical component for surviving natural disasters. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans.  A solid plan includes securing and duplicating essential documents, creating lists of property and knowing where to find information once a disaster has occurred.

IRS: Deadline to return distributions to retirement accounts 

https://www.irs.gov/newsroom/irs-upda

https://accountinginstruction.info

 The Internal Revenue Service today issued a memorandum (PDF) that provides interim guidance to the agency's compliance staff on requests to designate issues for litigation.  Designation of issues for litigation, a decision that is made with the Office of Chief Counsel, limits a taxpayer's opportunity to administratively resolve their case with the IRS Independent Office of Appeals. Disputes between the IRS and taxpayers over designated issues must be resolved through litigation. The IRS took this step to update and clarify its designation procedures as part of its implementation of the Taxpayer First Act (TFA) enacted in July 2019.

All taxpayers have the right to confidentiality 

https://www.irs.gov/newsroom/all-taxp

https://accountinginstruction.info

Information a taxpayer gives the IRS won't be shared with outside parties, unless allowed by the taxpayer or by law. This is the right to confidentiality; one of ten rights known collectively as the Taxpayer Bill of Rights.  The right to confidentiality means: The IRS won't give any information to a third party without permission from the taxpayer. The agency can't contact third parties such as an employer or bank for information unless they give the taxpayer reasonable notice first. The same confidentiality a taxpayer has with an attorney also applies to tax professionals working with the IRS on the taxpayer's behalf.

Important things all extension filers should remember 

https://www.irs.gov/newsroom/importan

https://accountinginstruction.info

October 15 is almost here. That's the last day to file for most people who requested an extension for their 2019 tax return. These taxpayers can file any time before Thursday, October 15 if they have all their required tax documents. They can also pay part or all of their taxes anytime on IRS.gov.  Here are some key reminders for extension filers. Use IRS Free File. Nearly everyone can e-file their tax return for free through IRS Free File. The program is available on IRS.gov now through October 15. E-filing is easy, safe and the most accurate way for people to file their taxes.

IRS urges employers to choose carefully when selecting a payroll service provider 

https://www.irs.gov/newsroom/irs-urge

Using a reputable firm or group can protect employers from fraud; options include PSPs, RAs and CPEOs IR-2020-186, August 19, 2020  WASHINGTON — The IRS reminded employers today to carefully choose their payroll service providers following continuing concerns that some disreputable organizations can fail to deposit employment taxes, leaving businesses vulnerable to unpaid bills.  Many employers outsource their payroll and related tax duties to third parties. This streamlines business operations by collecting and timely depositing payroll taxes on the employer's behalf and filing required payroll tax returns with state and federal authorities.

IRS: Unemployment compensation is taxable; have tax withheld now and avoid a tax-time surprise 

https://www.irs.gov/newsroom/irs-unem

WASHINGTON — With millions of Americans now receiving taxable unemployment compensation, many of them for the first time, the Internal Revenue Service today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year.  By law, unemployment compensation is taxable and must be reported on a 2020 federal income tax return. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted this spring.

Working Virtually: make a plan for protecting data and reporting theft; Part 5 of Security Summit tips for tax professionals https://www.irs.gov/newsroom/working

WASHINGTON — The Internal Revenue Service and Security Summit partners today reminded tax professionals that federal law requires them to have a written information security plan.  Amid continuing security threats during COVID-19, the IRS, state tax administrators and the nation's tax industry − working together as the Security Summit − also recommended practitioners create an emergency response plan should they experience a data theft. Contacting the IRS is step one in the plan to quickly protect tax professionals and their clients.

13.9 million Americans to receive IRS tax refund interest; taxable payments to average $18 

https://www.irs.gov/newsroom/13-point

https://accountinginstruction.info

WASHINGTON — This week the Treasury Department and the Internal Revenue Service will send interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are receiving refunds.  The interest payments, averaging about $18, will be made to individual taxpayers who filed a 2019 return by this year's July 15 deadline and either received a refund in the past three months or will receive a refund. Most interest payments will be issued separately from tax refunds.