IRS Tax News

  • 13 Oct 2014 8:04 PM | Anonymous

    Modernized e-File (MeF) was successfully brought back online on Monday, October 13, 2014 at 9:00 p.m. Eastern, and is now operational for all service requests.

    Please resume sending federal and state submissions, sending state acknowledgements and retrieving federal and state acknowledgements.

    We thank you for your patience and apologize for the inconvenience.


  • 09 Oct 2014 10:02 AM | Anonymous

    The IRS portal that supports e-services (Registration, Transcript Delivery Services, TIN Matching and e-file Application) will be unavailable for processing from approximately 5 p.m. (ET) on Saturday, October 11, 2014, until 5 a.m. (ET) on Tuesday, October 14, 2014, for required maintenance.

    The outage also affects various enterprise applications such as e-file and other electronic services. Please plan accordingly around this required shutdown period. We apologize for any inconvenience and thank you in advance for your patience.

  • 11 Sep 2014 8:34 AM | Anonymous

    Tax Payments Top the One Million Mark with New IRS Direct Pay;
    Free Online System Makes it Easy for People to Pay Their Federal Taxes

    Washington - With more than one million tax payments already processed this year through IRS Direct Pay, the Internal Revenue Service today encouraged anyone facing upcoming tax payment deadlines to consider choosing this free online system to quickly and easily pay what they owe.

    “Direct Pay is the latest addition to our growing array of online tools designed to serve taxpayers better,” said IRS Commissioner John Koskinen. “Direct Pay simplifies the payment process, enabling people to quickly and easily make a secure payment from the convenience of a home computer.”

    More than one million tax payments totaling over $1.7 billion have been received from individual taxpayers since Direct Pay debuted earlier this year. Available through the Pay Your Tax Bill  icon on IRS.gov, Direct Pay allows individuals to e-pay their tax bills or make quarterly estimated tax payments directly from checking or savings accounts without any fees or pre-registration.

    With tax correspondence season now in full swing, many taxpayers recently received notices for unpaid taxes from the IRS. Direct Pay offers these taxpayers an easy way to quickly pay these tax bills without having to write a check, buy a stamp or find a mailbox.

    Because Direct Pay allows taxpayers to schedule payments up to 30 days in advance, now is also a good time for those who are making estimated tax payments for 2014 to set up their third quarter payment due Sept. 15. In addition, anyone who received an extension until Oct. 15 to file their 2013 federal return and now finds they owe additional tax can also use Direct Pay to e-pay the additional amount due.

    Direct Pay is available 24 hours a day, seven days a week. Any taxpayer who uses the system receives instant confirmation that their payment was submitted. More information about Direct Pay can be found on IRS.gov.

    Direct Pay cannot be used to pay business taxes. Taxpayers who wish to e-pay their federal business taxes should enroll in the Electronic Federal Tax Payment System (EFTPS), or click on the Pay Your Tax Bill icon to check out other payment options.

  • 02 Sep 2014 11:40 AM | Anonymous

    FOR IMMEDIATE RELEASE

    Contact:   Al Rickard

                     703-402-9713

                     arickard@associationvision.com

    ATP and ABA Credential Holders Exempt from New IRS

    Annual Filing Season Program Course and Exam Requirements

    Alexandria, VA, September 2, 2014 - Accredited Tax Preparers (ATPs) and Accredited Business Accountant/Advisors (ABAs) are exempt from the requirement to take an Annual Federal Tax Refresher (AFTR) course and exam that is part of the new Internal Revenue Service (IRS) voluntary Annual Filing Season Program (AFSP).

    The Accreditation Council for Accountancy and Taxation (ACAT) is a non-profit, independent testing organization that accredits professionals with the ATP and ABA credentials. 

    ABAs and ATPs will automatically receive the AFSP-Record of Completion and be included in a public database of tax return preparers scheduled to launch on the IRS website by January 2015. This Directory of Federal Tax Return Preparers with Credentials and Select Qualifications will include the name, city, state, zip code, and credentials of all ABAs, ATPs, attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries with a valid Preparer Tax Identification Number (PTIN), as well as all AFSP-Record of Completion holders, including ACAT-credentialed ABAs and ATPs.

    Beginning in 2016, ATPs and ABAs – as AFSP participants – can also represent clients before the IRS regarding returns they prepared and signed. PTIN holders without an AFSP Record of Completion or other professional credential will not be allowed to represent clients before the IRS.

    “We are thrilled that the IRS has recognized the experience, comprehensive ongoing education requirements, and stringent exams that are required for a tax preparer to earn the ATP and ABA credentials,” says ACAT President Roy Frick, EA, ABA, ATA, ARA, LPA. “All ATPs and ABAs in good standing are exempt from taking the annual AFTR course and exam. So why would any tax preparer take the Annual Federal Tax Refresher course and exam each year when they can earn a prestigious credential they can use after their name every year?”

    The ATP is a leading national credential for tax practitioners who have a thorough knowledge of the existing tax code and the preparation of individual tax returns. To become an ATP, candidates must pass the ATP exam, which is offered twice per year at testing centers around the country and have three years of work experience in tax preparation, two of which may be satisfied through college credit.

    The ABA is a prestigious professional accounting credential for accounting professionals who possess a thorough knowledge and proficiency in financial accounting, financial reporting, financial statement preparation, taxation, managerial accounting, business law, and ethics for small- to medium-sized businesses. To become an ABA, candidates must pass the Comprehensive Examination for Accreditation in Accountancy and have three years of related work experience, up to two of which may be satisfied through college credit.

    The ATP and ABA exams will be offered at testing sites around the country between November 29 – December 22, 2014, just in time for tax season and in time for tax preparers to get their IRS Annual Filing Season Record of Completion.

    For more information about ACAT and the ATP and ABA credentials and registering for an ACAT exam, visit www.acatcredentials.org.

    # # #

    The Accreditation Council for Accountancy and Taxation® (ACAT) was established in 1973 as a non-profit, independent, testing, accrediting and monitoring organization. ACAT accredits professionals who have demonstrated knowledge of the principles, practices, and ethical standards of accounting, taxation, and related financial services in order to maintain the highest level of service to the public.


  • 02 Sep 2014 9:34 AM | Anonymous

    The Internal Revenue Service reminds truckers and other owners of heavy highway vehicles that in most cases, their next federal highway use tax return is due on Tuesday, Sept. 2, 2014. 

    The Internal Revenue Service reminds truckers and other owners of heavy highway vehicles that in most cases, their next federal highway use tax return is due on Tuesday, Sept. 2, 2014.

    The Internal Revenue Service reminds truckers and other owners of heavy highway vehicles that in most cases, their next federal highway use tax return is due on Tuesday, Sept. 2, 2014.

    The Internal Revenue Service reminds truckers and other owners of heavy highway vehicles that in most cases, their next federal highway use tax return is due on Tuesday, Sept. 2, 2014.

    The Internal Revenue Service reminds truckers and other owners of heavy highway vehicles that in most cases, their next federal highway use tax return is due on Tuesday, Sept. 2, 2014.

  • 02 Sep 2014 9:33 AM | Anonymous

    The report is based on a sample drawn from the 144.9 million individual income tax returns filed for tax year 2012 and provides estimates on sources of income, adjusted gross income, exemptions, deductions, taxable income, income tax, modified income tax, tax credits, self-employment tax, and tax payments.


  • 28 Aug 2014 1:15 PM | Anonymous

    WASHINGTON - The Internal Revenue Service issued a consumer alert today providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS.

    These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request.

    “These telephone scams are being seen in every part of the country, and we urge people not to be deceived by these threatening phone calls,” IRS Commissioner John Koskinen said. “We have formal processes in place for people with tax issues. The IRS respects taxpayer rights, and these angry, shake-down calls are not how we do business.”

    The IRS reminds people that they can know pretty easily when a supposed IRS caller is a fake. Here are five things the scammers often do but the IRS will not do. Any one of these five things is a tell-tale sign of a scam. 

    The IRS will never:

    1. Call you about taxes you owe without first mailing you an official notice.
    2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
    3. Require you to use a specific payment method for your taxes, such as a prepaid debit card.
    4. Ask for credit or debit card numbers over the phone.
    5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

    If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:

    • If you know you owe taxes or think you might owe, call the IRS at 1.800.829.1040. The IRS workers can help you with a payment issue.
    • If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1.800.366.4484 or at www.tigta.gov.
    • If you’ve been targeted by this scam, also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add "IRS Telephone Scam" to the comments of your complaint.

    Remember, too, the IRS does not use email, text messages or any social media to discuss your personal tax issue. For more information on reporting tax scams, go to www.irs.gov and type “scam” in the search box.

    Additional information about tax scams are available on IRS social media sites, including YouTube http://youtu.be/UHlxTX4rTRU?list=PL2A3E7A9BD8A8D41D. and Tumblr http://internalrevenueservice.tumblr.com where people can search “scam” to find all the scam-related posts.


  • 28 Jul 2014 1:17 PM | Anonymous

    When it comes to filing a federal tax return, many people discover that they either get a larger refund or owe more tax than they expected. But this type of tax surprise doesn’t have to happen to you. One way to prevent it is to change the amount of tax withheld from your wages. You can also change the amount of estimated tax you pay. Here are some tips to help you bring the amount of tax that you pay in during the year closer to what you’ll actually owe:


    •    New Job.   When you start a new job, you must fill out a Form W-4, Employee's Withholding Allowance Certificate. Your employer will use the form to figure the amount of federal income tax to withhold from your pay. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. This tool is easy to use and it’s available 24/7.

    •    Estimated Tax.  If you get income that’s not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, dividends or rent. If you expect to owe a thousand dollars or more in tax, and meet other conditions, you may need to pay this tax. You normally pay it four times a year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to figure the tax.

    •    Life Events.  Make sure you change your Form W-4 or change the amount of estimated tax you pay when certain life events take place. A change in your marital status, the birth of a child or buying a new home can change the amount of taxes you owe. You can usually submit a new Form W–4 anytime.

    •    Changes in Circumstances.  If you receive advance payment of the premium tax credit in 2014 it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

    For more see Publication 505, Tax Withholding and Estimated Tax. You can get it on IRS.gov, or call 800-TAX-FORM (800-829-3676) to get it by mail.



    Additional IRS Resources:

    • Publication 5152: Report changes to the Marketplace as they happen  English | Spanish


    IRS YouTube Videos:  

    IRS Podcasts:

  • 23 Jul 2014 8:18 AM | Anonymous

    If you start a business, one key to success is to know about your federal tax obligations. You may need to know not only about income taxes but also about payroll taxes. Here are five basic tax tips that can help get your business off to a good start.

    1. Business Structure.  As you start out, you’ll need to choose the structure of your business. Some common types include sole proprietorship, partnership and corporation. You may also choose to be an S corporation or Limited Liability Company. You’ll report your business activity using the IRS forms which are right for your business type.

    2. Business Taxes.  There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. The type of taxes your business pays usually depends on which type of business you choose to set up. You may need to pay your taxes by making estimated tax payments.

    3. Employer Identification Number.  You may need to get an EIN for federal tax purposes. Search “do you need an EIN” on IRS.gov to find out if you need this number. If you do need one, you can apply for it online.

    4. Accounting Method.  An accounting method is a set of rules that determine when to report income and expenses. Your business must use a consistent method. The two that are most common are the cash method and the accrual method. Under the cash method, you normally report income in the year that you receive it and deduct expenses in the year that you pay them. Under the accrual method, you generally report income in the year that you earn it and deduct expenses in the year that you incur them. This is true even if yo receive the income or pay the expenses in a future year.

    5. Employee Health Care.  The Small Business Health Care Tax Credit helps small businesses and tax-exempt organizations pay for health care coverage they offer their employees. A small employer is eligible for the credit if it has fewer than 25 employees who work full-time, or a combination of full-time and part-time. Beginning in 2014, the maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers, such as charities.

    For 2015 and after, employers employing at least a certain number of employees (generally 50 full-time employees or a combination of full-time and part-time employees that is equivalent to 50 full-time employees) will be subject to the Employer Shared Responsibility provision.

    Get all the tax basics of starting a business on IRS.gov at the Small Business and Self-Employed Tax Center.


    Additional IRS Resources:

    IRS YouTube Videos:

    IRS Podcasts:

  • 21 Jul 2014 8:16 AM | Anonymous

    Do you know that if you sell your home and make a profit, the gain may not be taxable? That’s just one key tax rule that you should know. Here are ten facts to keep in mind if you sell your home this year.

    1. If you have a capital gain on the sale of your home, you may be able to exclude your gain from tax. This rule may apply if you owned and used it as your main home for at least two out of the five years before the date of sale.

    2. There are exceptions to the ownership and use rules. Some exceptions apply to persons with a disability. Some apply to certain members of the military and certain government and Peace Corps workers. For details see Publication 523, Selling Your Home.

    3. The most gain you can exclude is $250,000. This limit is $500,000 for joint returns. The Net Investment Income Tax will not apply to the excluded gain.

    4. If the gain is not taxable, you may not need to report the sale to the IRS on your tax return.

    5. You must report the sale on your tax return if you can’t exclude all or part of the gain. And you must report the sale if you choose not to claim the exclusion. That’s also true if you get Form 1099-S, Proceeds From Real Estate Transactions. If you report the sale you should review the Questions and Answers on the Net Investment Income Tax on IRS.gov.

    6. Generally, you can exclude the gain from the sale of your main home only once every two years.

    7. If you own more than one home, you may only exclude the gain on the sale of your main home. Your main home usually is the home that you live in most of the time.

    8. If you claimed the first-time homebuyer credit when you bought the home, special rules apply to the sale. For more on those rules see Publication 523.

    9. If you sell your main home at a loss, you can’t deduct it.

    10. After you sell your home and move, be sure to give your new address to the IRS. You can send the IRS a completed Form 8822, Change of Address, to do this.

    Important note about the Premium Tax Credit. If you receive advance payment of the Premium Tax Credit in 2014 it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

    If you still need to do your 2013 taxes, use IRS e-file to prepare and file your tax return. The tax software will do most of the hard work for you. You can use IRS e-file through Oct. 15. If you file a paper return, you may use the worksheets in Publication 523 to help you file.

    For more on the sale of a home see Publication 523 on IRS.gov. You can call 800-TAX-FORM (800-829-3676) to get it by mail.


    Additional IRS Resources:

    • Publication 5152: Report changes to the Marketplace as they happen  English | Spanish

    IRS YouTube Videos:

    IRS Podcasts:

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