Inside This Issue
IRS Resumes Operations Following Government Shutdown
Tax-Filing Season Begins
2019 IRS Nationwide Tax Forums
Closure of Cincinnati Submission Processing Center
IRS Extends Transcript Faxing Service
Publication 2043 Available for 2019
Treasury, IRS Issue Final Regulations and Guidance on
New Qualified Business Income Deduction
1. IRS Resumes Operations
Following Government Shutdown
IRS resumes operations following the recent government shutdown, tax
professionals may have questions about exam and collection activities.
If you have questions about your clients’ examinations affected by the
shutdown, please review the Exam Resumption FAQs.
you have clients with collection issues affected by the shutdown, review
the Collection Resumption FAQs. This section
includes information on liens, levies, notices of deficiency, penalties,
passports and private debt collection.
post-shutdown information on tax filings, the Tax Court and the Taxpayer
Advocate Service, visit IRS Activities Following the Shutdown.
2. Tax-Filing Season
IRS successfully opened the 2019 tax-filing season this week and has started accepting and
processing federal tax returns for tax year 2018. The first refunds are
expected to go out the first week of February. Your clients can check Where’s My Refund? for updates. Phone traffic
to IRS is traditionally heavy during the early weeks of tax season, so IRS
encourages everyone to use IRS.gov to find answers before they call.
3. 2019 IRS Nationwide
2019 IRS Nationwide
will be held in the following locations:
- National Harbor, Md.
(Washington, DC area), July 9 - 11
- Chicago, Ill., July 23 – 25
- New Orleans, La., Aug. 6 – 8
- Orlando, Fla., Aug. 13-15
- San Diego, Calif., Sept. 17 – 19
Tax Forums offer three full days of seminars with the latest word on tax
law, compliance and ethics, as well as networking opportunities. Registration for the
2019 IRS Nationwide Tax Forums begins March 1.
4. Closure of Cincinnati
Submission Processing Center
IRS Cincinnati Submission Processing Center located in Covington, Ky., will
be closing in 2019. If you have clients who need a 147C letter for Backup
Withholding purposes, please send your request to the Ogden or Kansas City centers.
5. IRS Extends
Transcript Faxing Service
IRS will extend its transcript faxing service beyond the previously planned
Feb. 4 end date and will review options for a new timeframe. Unmasked Wage
and Income Transcripts can be sent to your e-Services secure mailbox by
following certain procedures, which should help bring clients into
compliance and allow for electronic filing. For details, please see Fact Sheet 2018-20, Steps for tax professionals to obtain
wage and income transcripts needed for tax preparation.
6. Publication 2043
Available for 2019
IRS Refund Information Guidelines for the Tax Professional Community for
2019, is now available on IRS.gov. The publication contains information
you can share with your clients along with information on claiming the
Earned Income tax credit and the Additional Child Tax Credit.
7. Treasury, IRS
Issue Final Regulations and Guidance on New Qualified Business Income
The Treasury Department and the IRS issued final regulations and three related pieces of guidance,
implementing the new qualified business income (QBI) deduction (section
199A deduction). The new QBI deduction, created by the 2017 Tax Cuts and
Jobs Act (TCJA) allows many owners of sole proprietorships, partnerships, S
corporations, trusts, or estates to deduct up to 20 percent of their
qualified business income. The guidance includes:
- A set of regulations, finalizing proposed regulations issued last
- A new set of proposed
regulations providing guidance on
several aspects of the QBI deduction, including qualified REIT
dividends received by regulated investment companies
- A revenue procedure providing guidance on determining W-2 wages for
QBI deduction purposes
- A notice on a proposed revenue procedure providing a safe
harbor for certain real estate enterprises that may be treated as a
trade or business for purposes of the QBI deduction.
For details on the QBI deduction, including answers to
frequently-asked questions and information on other TCJA provisions,
8. Technical Guidance
Notice 2019-07 contains
a proposed revenue procedure that provides for a safe harbor under which a
rental real estate enterprise will be treated as a trade or business solely
for purposes of section 199A of the Internal Revenue Code (Code) and
sections 1.199A-1 through 1.199A-6 of the Income Tax Regulations
(Regulations) (26 CFR Part 1), which are being published contemporaneously
with this notice.
Notice 2019-13 provides
guidance on the corporate bond monthly yield curve, the corresponding spot
segment rates used under section 417(e)(3), and the 24-month average
segment rates under section 430(h)(2) of the Internal Revenue Code.
Revenue Ruling 2019-04
provides various prescribed rates for federal income tax purposes including
the applicable federal interest rates, the adjusted applicable federal
interest rates, the adjusted federal long-term rate, the adjusted federal
long-term tax-exempt rate.
Revenue Procedure 2019-11
provides methods for calculating W-2 wages, as defined in section
199A(b)(4) and section 1.199A-2 of the Income Tax Regulations, (1) for
purposes of section 199A(b)(2) of the Internal Revenue Code (Code) which,
for certain taxpayers, provides a limitation based on W-2 wages to the
amount of the deduction for qualified business income (QBI); and (2) for
purposes of section 199A(b)(7), which, for certain specified agricultural
and horticultural cooperative patrons, provides a reduction to the section
199A deduction based on W-2 wages.