Inside This Issue
- Tax Relief and Deadline Extensions for Alabama
- New Due Diligence Requirements this Filing Season
- Revision of Special Enrollment Exam Delayed/Revised
Test Specifications Now Available
- Annual ‘Dirty Dozen’ List of Most Prevalent Tax
- YouTube: How to Use the Withholding Calculator for
- IRS Issues Proposed Regulations on Deduction for
Foreign-derived Intangible Income and Global Intangible Low-Taxed
- Required Minimum Distributions Begin April 1
- Technical Guidance
1. Tax Relief and
Deadline Extensions for Alabama Disaster Victims
of severe storms, tornadoes, and straight-line winds that occurred in parts
of Alabama on March 3 may be eligible for tax relief from the
IRS. Additionally, disaster victims will have until July 31, to file certain individual and
business tax returns and make certain tax payments.
the IRS disaster relief
page for details on other returns, payments and tax-related actions
qualifying for the additional time. For information on disaster recovery,
2. New Due Diligence
Requirements this Filing Season
filing season tax professionals should be aware of the revised Form 8867, Paid
Preparer’s Due Diligence Checklist, which covers the new Credit for other
Dependents (ODC) and Head of Household (HOH) filing status in addition to
the Child Tax Credit/Additional Child Tax Credit, American Opportunity Tax
Credit, and Earned Income Tax Credit.
is sending Letter 5364 to tax
preparers who completed at least six 2018 paper returns claiming any of the
credits shown above or HOH filing status without attaching Form 8867. To
learn more, check out the Reaching Out to Preparers
page on the Tax Preparer Toolkit.
3. Revision of Special
Enrollment Exam Delayed; Revised Test Specifications Now Available
government shutdown has delayed the annual revision of the Special
Enrollment Examination (SEE). The examination to be administered starting
on May 1, 2019, has not yet been updated and reflects tax law for the
calendar year 2017. A revised examination will be released on July 1, 2019, and will be based on tax law for the
calendar year 2018.
ensure that the SEE accurately incorporates the changes resulting from the
Tax Cuts and Jobs Act and continues to reflect the skills and knowledge
necessary to be an enrolled agent, the IRS commissioned a review and update
of the SEE test specifications. Enrolled agents from the private sector and
subject matter experts from the IRS participated in updating the test
content. As a result, there were changes to the test specifications
affecting test content topics for the SEE to be administered beginning July
review the revised test specifications, visit www.prometric.com/see
and choose Step 3, Review Exam Content Outlines.
4. Annual ‘Dirty Dozen’
List of Most Prevalent Tax Scams
IRS kicked off its annual “Dirty Dozen” list of common tax
scams this week and warned of the ongoing threat of internet
phishing scams that lead to tax-related fraud and identity theft. Visit IRS.gov
to review all of the 2019 “Dirty Dozen” scams.
5. YouTube: How to Use
the Withholding Calculator for Paycheck Checkup
your client do a paycheck checkup using the IRS Withholding Calculator by
watching this new YouTube video https://youtu.be/hvf010Ptb84.
this and other videos on the IRS’s YouTube Channel.
6. IRS Issues Proposed
Regulations on Deduction for Foreign-derived Intangible Income and Global
Intangible Low-Taxed Income
IRS issued proposed regulations under section
250 of the Internal Revenue Code, which offers domestic
corporations deductions for foreign-derived intangible income (FDII) and
global intangible low-taxed income. These proposed regulations provide
guidance on both the computation of the deductions available under section
250 and determination of FDII.
reporting rules requiring the filing of Form 8993, Section 250
Deduction for Foreign-Derived Intangible Income and Global Intangible
Low-Taxed Income, are also described in the proposed regulations. Treasury
and IRS welcome public comments on these proposed regulations.
7. Required Minimum
Distributions Begin April 1
IRS reminded individuals
this week that, in most cases, April 1, 2019, is the date by which persons
who turned age 70˝ during 2018 must begin receiving payments, required minimum distributions
(RMDs), from Individual Retirement Accounts (IRAs) and workplace retirement
answers to questions about RMDs, visit Retirement Plan and IRA Required
Minimum Distributions FAQs.
8. Technical Guidance
Notice 2019-18 informs
taxpayers that the Treasury Department and the IRS no longer intend to
amend the required minimum distribution regulations under section 401(a)(9)
of the Internal Revenue Code to address the practice of offering retirees
and beneficiaries who are currently receiving annuity payments under a
defined benefit plan a temporary option to elect a lump-sum payment in lieu
of future annuity payments.
Notice 2019-20 provides
a waiver of penalties under sections 6722 and 6698 to certain partnerships
that file Schedules K-1 that fail to report information about partners’
negative tax basis capital accounts for the partnerships' 2018 tax year.
The relief is conditioned on the partnerships providing the missing
information in a separate schedule by March 15, 2020.