November 2014 Seminar IRS UPDATES. Oklahoma City Chapter OSCPA. Miscellaneous Topics. Anita Douglas Senior Stakeholder Liaison November 13, 2014

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1 Oklahoma City Chapter OSCPA November 2014 Seminar Anita Douglas Senior Stakeholder Liaison November 13, IRS UPDATES 2 Miscellaneous Topics Same Sex Couples: Guidance for Employers Form 8822-B - Change of Address Form For Businesses Social Security Administration Policy Change 3 1

2 4 Drought-Stricken Farmers and Ranchers Have More Time to Replace Livestock; 30 States Affected 5 Third Party Authorizations 6 2

3 CAF Fax Numbers Fax numbers: Memphis (855) Ogden (855) Philadelphia (855) or (267) CAF Unit Addresses and Fax Numbers Philadelphia (PAMC) International CAF MS 3-E Market Street Philadelphia, PA New Fax: (855) Old Fax: (267) Will remain operational indefinitely to accommodate submissions from outside the United. 8 Direct Deposit Restrictions Only three direct deposit refunds per financial account (subsequent refunds convert to checks) Direct deposit only into account(s) bearing client s (taxpayer s) name(s) No portion of refund may go into preparer s account 3

4 E-Signatures Allowed on Forms 8878 and 8879 No specific technology required Identity verification required E-Services 11 E-Services Transcript Delivery System Allows tax professionals to request and receive: Account transcripts Tax return transcripts Record of account transcripts Wage and income documents Verification of non-filing letters 12 4

5 PTINs for Everyone Required for all paid preparers Required for all enrolled agents Online or paper application - $64.25 Paper: 4-6 weeks; Online: 15 minutes Renewal season begins mid-october each year - $63.00 All PTINs expire Dec. 31 each year 13 Keeping Up with EITC Due Diligence 14 Third Party Payer 15 5

6 Types of Third Party Payers Common third party arrangements include: Payroll Service Providers (PSPs) Reporting Agents Section 3504 Agents Professional Employer Organizations (PEOs) Reminder: Employers are ultimately responsible for the payment of income tax withheld (employer and employee portions of social security and Medicare taxes). See Fact Sheet Tips for Employers Who Outsource Payroll Duties 16 Electronic Federal Tax Payment System The EFTPS is: Mandatory Secure, accurate and easy to use Available to be viewed online after enrollment Accessible by an Inquiry PIN The system: Provides immediate confirmation for each transaction Maintains a history for 16 months 17 Employment Tax Investigations Can result in: Prosecutions of individuals and companies, acting under the guise of a third party payroll service. For more information, visit IRS.gov and type in the key search words employment tax investigations. Liabilities for employers who are ultimately responsible for the payment of income tax withheld (employer and employee portions of social security and Medicare taxes). 18 6

7 Online Payment Agreements 19 Who Can Use OPA Individuals Businesses Their Representatives 20 Criteria Individual Taxpayers Any type of tax Owe $50,000 or less All required returns filed Minimum payment amount 21 7

8 Additional Requirement Individuals If Aggregate balance $25,001 - $50,000 Then Direct Debit agreement required 22 Criteria Business Taxpayers Owe $25,000 or less All required returns filed Full pay within 24 months 23 Additional Requirement Businesses If $10,001 - $25,000 owed Then Payments must be by Direct Debit 24 8

9 Finding the Online Application At IRS.gov Tools Online Payment Agreement Application Payments tab Apply for an Online Payment Agreement Key word OPA 25 Identity Theft: Expanded Efforts at IRS Protect Taxpayers and Fight Fraud 26 Identity theft is a serious threat Federal Trade Commission hears from more than 20,000 consumers per week whose identities have been stolen Repercussions from identity theft are far-reaching; can include tax-related issues 27 9

10 2013 successes Resolved and closed 963,000 cases of taxrelated identity theft Suspended or rejected 5.7 million suspicious returns worth $17.8 billion Issued 1.2 million IP PINs to protect taxpayers for the 2014 filing season 28 IRS initiatives fight identity theft and assist victims Identity Protection Personal Identification Numbers (IP PINs) E-Authentication New program guidance addressing business identity theft Online fraud detection and prevention updates strengthen IP PIN Current year IP PIN now useable on prior-year returns filed during calendar year Spouses use IP PIN when e-filing Easier to replace lost IP PIN retrieve original IP PIN; IPSU for a replacement IP PIN ( ext. 245) 30 10

11 Pilot effort extended IP PIN use IP PIN pilot program / e-authentication Voluntary program for Florida, Georgia and D.C. taxpayers to opt-in to IP PIN Taxpayers who get e-file PIN through IRS.gov application get the offer Requires online registration and identity validation through e-authentication 31 Addressing business identity theft Business identity theft: Creating, using or attempting to use business identifying information without authority to obtain tax benefits New IRS program guidance focuses on research, identification, tracking and victim assistance 32 Addressing business identity theft Initial steps for victims: Report to local law enforcement Contact major business credit bureaus Contact all credit card companies, financial institutions and other creditors Respond to IRS notices immediately 33 11

12 Mitigating online fraud IRS Office of Online Fraud Detection and Prevention investigates sites that purport to be the IRS, use its logos, etc. Works to mitigate risks to taxpayers Please report suspicious IRS-related s to 34 OFDP efforts get results OFDP collaborates with other federal/law enforcement agencies In 2013, OFDP helped stop a $160 million advance-fee scheme involving criminals around the globe 35 Recent projects, partnerships SSN masking and 2D barcode system for IRS notices, letters 20.4 million so far States' Suspicious Filers Exchange to automate referrals $8.5 million stopped Criminal Investigation/State MOU to exchange identity theft data, joint compliance efforts 26 states to date 36 12

13 You play a critical role IRS collaborates and exchanges info with other agencies and financial institutions to prevent identity theft We need your help to safeguard info and: Educate the public to be more vigilant Help businesses understand their role in protecting information 37 Find more at IRS.gov General identity theft info at including Taxpayer Guide to Identity Theft IP PIN info at Protection-PIN-IP-PIN (general info, IP PIN pilot, FAQs and online tool to replace an IP PIN) 38 Other resources Business identity theft Safeguarding info in your office information-compromise-andrisk-id-theftguidance-your-business 39 13

14 SB/SE Appeals Fast Track Settlement Program 40 SB/SE Appeals FTS Alternative Dispute Resolution Program Provides an opportunity for SB/SE taxpayers to expedite case resolution at earliest possible level 41 FTS Offer Time Frames Offered and/or requested prior to the issuance of a 30-day letter by Exam Always prior to issuance of Statutory Notice of Deficiency 42 14

15 FTS Procedures Completion/acceptance of Form 14017, Application for Fast Track Settlement FTS session arranged by FTS Official FTS Official facilitates discussions utilizing mediation techniques and settlement authority 43 FTS Eligibility Non-docketed cases Fully developed cases 44 FTS Exclusions TEFRA cases Collection Due Process, Offer in Compromise, and Trust Fund Recovery Penalty cases Whipsaw issues Correspondence cases worked solely at a campus Frivolous issues Uncooperative taxpayers 45 15

16 FTS Agreement Reached Parties sign Form 14000, Fast Track Session Report, agreeing to settlement Report of final agreed issues will be prepared and executed by taxpayer and/or representative Case closed by SB/SE 46 No FTS Agreement Reached Taxpayer retains all appeal rights 30-day letter will be issued Taxpayer will prepare formal protest if required Case sent to Appeals for traditional appeals processing Case assigned to different appeals officer (not the same FTS Official) All information related to FTS session will be expunged from file 47 Prohibition of Ex-Parte Communications Does not apply to communications arising in FTS process because Appeals personnel are: facilitating an agreement not acting in their traditional settlement role 48 16

17 FTS Benefits Reduces overall case time Reduced interest costs Fewer IRS contacts Lower representation fees Prompt resolution 49 FTS Benefits for Tax Professional High satisfaction rate with the program and outcomes (according to survey results) Faster resolution time Face-to-face meeting with all parties Still retains full appeal rights if no agreement reached 50 Visit IRS.gov Search Keyword Appeals Mediation Programs Watch the FTS Process video for an overview 51 17

18 THANK YOU!!! Anita Douglas