Closing your Tax Office for the Year?

If you are planning to close your tax office for the year, here are some reminders:

  1. Update your IRS e-file Application to allow the IRS to communicate with you and prevent your Electronic Filing Identification Number (EFIN) from being inactivated. Verify and if needed, update your firm’s Principals, Responsible Officials, addresses and telephone numbers.
  2. Keep all Forms 8879 and acknowledgment reports for three years.
  3. Keep copies of all clients’ tax returns until the end of the calendar year as the electronic return originator (ERO).
  4. Check your EFIN status page to verify the number of returns you filed matches the number of returns received by the IRS. While your office is closed, it is a good practice to periodically verify your EFIN is not being used by anyone else.

If you are planning to permanently close your tax office, here are some reminders:

  1. The easiest way to notify the IRS of the closing is to use the “Close Office” feature on your IRS e-file Application.
  2. Providers may not sell or transfer EFINs, other identification numbers, or passwords when selling, transferring or otherwise discontinuing an IRS e-file business.

 

If you need assistance, please contact the e-help desk toll-free at (866) 255-0654.

 

For more information, refer to Publication 3112.

 

 

 

 

*This message was distributed by IRS Newswire, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.

Tax Preparers: Register for 2019 IRS Nationwide Tax Forums

The IRS reminds tax professionals to sign up for this summer’s 2019 IRS Nationwide Tax Forums. Tax professionals attending can earn up to 19 continuing education credits.

The forums are three-day events featuring presentations by tax experts from the IRS and association partners. Topics on important tax issues currently facing tax professionals include cybersecurity, changes to the tax law, and ethics. Attendees have access to the Case Resolution Program and dozens of exhibitors. They also have the opportunity to hear directly from IRS Commissioner Chuck Rettig, who is scheduled to deliver the keynote speech at all the forums.

Tax professionals can visit www.irstaxforum.com for more information and to register.

There are five IRS Nationwide Tax Forums in cities across the country. Each Forum features more than 40 seminars and workshops.

The IRS Nationwide Tax Forums are designed specifically for tax professionals, including:

  • Enrolled agents
  • Certified public accountants
  • Certified financial planners
  • Annual Filing Season Program participants
  • Uncredentialled tax professionals

Here are the dates, locations and registration deadlines for the five forums this year:

  • National Harbor, Maryland, near Washington, D.C. – July 9-11
    • Registration deadline: June 25
  • Chicago – July 23-25
    • Registration deadline: July 9
  • New Orleans – Aug 6-8
    • Registration deadline: July 23
  • Orlando – Aug 13-15
    • Registration deadline: July 30
  • San Diego – Sept. 17-19
    • Registration deadline: Sept. 3

Tax professionals who pre-register by June 15, 2019 will receive an early bird rate of $235 per person. The standard rate of $255 is available starting June 16, and ends two weeks prior to the start of each forum. Attendees registering on-site or after the deadlines will pay $370.

 

 

*This message was distributed by IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.

Some taxpayers may need to amend their tax return

Taxpayers who discover an error after filing may need to amend their tax return. Taxpayers should file an amended return if there’s a change in filing status, income, deductions or credits.

The IRS may correct mathematical or clerical errors on a return. They also may accept returns without certain required forms or schedules. In these instances, there’s no need to file an amended return.

Taxpayers who need to amend should remember these simple tips:

  • Use the Interactive Tax Assistant.  The ITA titled Should I File an Amended Return? can help taxpayers determine if they should file an amended return to correct an error or make other changes to their original return.
  • Wait to file for corrected refund for tax year 2018. Taxpayers who are due refunds from their original 2018 tax return should wait to get it before filing Form 1040X to claim an additional refund. Amended returns may take up to 16 weeks to process.
  • File on paper. Taxpayers use Form 1040X, Amended U.S. Individual Income Tax Return, to correct their tax return. Taxpayers can’t file amended returns electronically. Taxpayers will mail Form 1040X to the address listed in the form’s instructions. However, taxpayers filing Form 1040X in response to an IRS notice, should mail it to the address shown on the notice.
  • Amend to correct errors. Taxpayers should file an amended tax return to correct errors or make changes to an original tax return. For example, taxpayers should amend their return to change their filing status. They should also file a 1040X to correct their income, deductions and credits.
  • Don’t amend for math errors. Taxpayers generally don’t need to file an amended return to correct math errors on their original return. The IRS will automatically correct these.
  • Don’t amend for missing forms. Taxpayers also don’t need to file an amended return if they forgot to attach tax forms. The IRS will mail a request to the taxpayer for missing forms.
  • File within three-year time limit. Taxpayers usually have three years from the date they filed the original tax return to file Form 1040X to claim a refund. Taxpayers can file it within two years from the date they paid the tax, if that date is later.
  • Pay additional tax as soon as possible. Taxpayers who will owe tax should file Form 1040X and pay the tax immediately to avoid potential penalties and interest on the unpaid taxes. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account at no cost.
  • Track amended return. Generally, taxpayers can track the status of their amended tax return three weeks after they file, using ‘Where’s My Amended Return? on IRS.gov.

More information:
Tax Topic 308 – Amended Returns

 

 

 

*This message was distributed by IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.

IRS expands retirement plan Determination Letter Program and Self- Correction Program

WASHINGTON — The Internal Revenue Service today announced the expansion of areas for issuing determination letters for certain retirement plans. Revenue Procedure 2019-20 details the addition of two areas for which retirement plan sponsors may now request determination letters.

In addition, through recently issued guidance, the IRS is also making it easier for plan administrators to correct plan errors.

Highlights of these changes:

Determination Letter Program

The Treasury Department and the IRS received numerous requests to expand the determination letter program. Revenue Procedure 2019-20 expands the determination letter program for two specific categories:

  • Statutory Hybrid Plans – plan sponsors may submit determination letter applications for statutory hybrid plans for the 12-month period beginning Sept.1, 2019, and ending Aug. 31, 2020.
  • Plan Mergers – plan sponsors may submit determination letter applications for certain merged plans on an ongoing basis.

As provided in prior guidance, plan sponsors will continue to be able to submit a determination letter application for initial plan qualification and for qualification upon plan termination.

Employee Plans Compliance Resolution System

On April 19, 2019, the IRS issued Revenue Procedure 2019-19, which expands the Self-Correction Program for retirement plans to enable plan sponsors to fix certain plan document and operational failures (including plan loan issues) without having to file a Voluntary Correction Program submission with the IRS.

Starting on April 19, the Self-Correction Program permits the self-correction of certain plan document failures, provides correction options and possible relief from deemed distributions associated with certain failures involving plan loans made to participants, and provides additional opportunities for correcting certain operational failures by plan amendment.

The IRS provides three correction programs for employee plans:

  • Self-Correction Program (SCP) – permits plan sponsors to correct certain plan failures without contacting the IRS or paying a user fee.
  • Voluntary Correction Program (VCP) – allows plan sponsors to correct failures not eligible for self-correction or to obtain the IRS’s written agreement that specified failures were properly corrected.
  • Audit Closing Agreement Program – enables plan sponsors to resolve failures discovered during an IRS audit.

 

 

*This message was distributed by IRS Newswire, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.