Tax & Current Accounting Topics

Proposed regulations address direct primary care arrangements and health care sharing ministry memberships https://www.irs.gov/newsroom/proposed

WASHINGTON — The Internal Revenue Service today released proposed regulations addressing the treatment of certain medical care arrangements under section 213 of the Internal Revenue Code.  Section 213 of the Code allows individuals to take an itemized deduction for expenses for medical care, including insurance for medical care, to the extent the expenses exceed 7.5% of adjusted gross income.

IRS warns against COVID-19 fraud; other financial schemes

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

https://accountinginstruction.info

WASHINGTON — The Internal Revenue Service today reminded taxpayers to guard against tax fraud and other related financial scams related to COVID-19.

In the last few months, the IRS Criminal Investigation division (CI) has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes looking to take advantage of unsuspecting taxpayers. CI continues to work with law enforcement agencies domestically and abroad to educate taxpayers about these scams and investigate the criminals perpetrating them during this challenging time.

IRS News Interest rates decrease for the third quarter of 2020 

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

https://accountinginstruction.info

WASHINGTON — The Internal Revenue Service today announced that interest rates will decrease for the calendar quarter beginning July 1, 2020. The rates will be:   three (3) percent for overpayments [two (2) percent in the case of a corporation];   one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000;   three (3) percent for underpayments; and   five (5) percent for large corporate underpayments. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

IRS provides answers about Coronavirus related tax relief for Qualified Opportunity Funds and investors 

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

WASHINGTON — The Internal Revenue Service today provided guidance for Qualified Opportunity Funds (QOFs) and their investors in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic.  Notice 2020-39 (PDF) answers questions regarding relief from certain requirements under section 1400Z-2 of the Internal Revenue Code (Code) and the implementing regulations. Additionally, the IRS has updated the Qualified Opportunity Zones frequently asked questions.

IRS Chief Counsel goes virtual with national Settlement Days; Helps dozens of taxpayers settle their Tax Court cases IRS News https://www.irs.gov/newsroom/irs-chie

https://accountinginstruction.info

WASHINGTON – The Internal Revenue Service Office of Chief Counsel is expanding its Virtual Settlement Days program after the tremendous success achieved by three offices that took Settlement Days events virtual in May 2020.  Settlement Days events are coordinated efforts to resolve cases in the United States Tax Court (Tax Court) by providing taxpayers not represented by counsel the opportunity to receive free tax advice from Low Income Taxpayer Clinics (LITCs), American Bar Association (ABA) volunteer attorneys and other pro bono organizations. Taxpayers can also discuss their Tax Court cases and resolve related tax issues with members of the IRS Office of Chief Counsel, the Independent Office of Appeals and Collection. By doing so, unrepresented taxpayers are often able to amicably settle their tax disputes without a trial.

159 million Economic Impact Payments processed; Low-income people and others who aren’t required to file tax returns can quickly register for payment with IRS Non-Filers tool IRS News 

https://www.irs.gov/newsroom/159-mill

https://accountinginstruction.info

WASHINGTON — With 159 million Economic Impact Payments processed, the Internal Revenue Service reminds many low-income Americans who don't usually file tax returns to register for a payment by October 15.  Millions of low-income people and others who aren't required to file a tax return may be eligible for an Economic Impact Payment and can easily register for a payment by using the free Non-Filers tool, available only on IRS.gov.

IRS announces Form 1040-X electronic filing options coming this summer; major milestone reached for electronic returns 

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

https://accountinginstruction.info

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).

https://accountinginstruction.info

Economic Impact Payments being sent by prepaid debit cards, arrive in plain envelope; IRS.gov answers frequently asked questions https://www.irs.gov/newsroom/economic...

https://accountinginstruction.info

WASHINGTON – As Economic Impact Payments continue to be successfully delivered, the Internal Revenue Service today reminds taxpayers that some payments are being sent by prepaid debit card. The debit cards arrive in a plain envelope from "Money Network Cardholder Services."  Nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers received a debit card was made by the Bureau of the Fiscal Service, a part of the Treasury Department that works with the IRS to handle distribution of the payments.

IRS.gov helps taxpayers get tax information they need; find tools for filing, paying, checking accounts and answering questions 

https://www.irs.gov/newsroom/irsgov-h...

https://accountinginstruction.info

IR-2020-99, May 21, 2020  WASHINGTON — The Internal Revenue Service reminds taxpayers today about several online tools available to help them get the tax information they need as the IRS has limited operations due to the coronavirus.  More taxpayers are using IRS.gov than ever before; as of May 8, the agency's website had been visited a record 1 billion times, up 141% compared to the same time last year.