Inside This Issue
IRS Expands Penalty Relief for Taxpayers Whose Payments
Fell Short in 2018
New Questions & Answers Available for Section 965
Reporting and Payments
IRS Nationwide Tax Forums Offer More than Continuing
March 28 Webinar: Understanding How to Do a Paycheck
Revised 2019 Form 656 Booklet, Offer in Compromise,
Online March 25
IRS to Update Allowable Living Expense Standards for
IRS Issues Proposed Regulations on New Reporting
Requirements for Life Insurance Contract Transactions
1. IRS Expands Penalty
Relief for Taxpayers Whose Payments Fell Short in 2018
IRS provided additional expanded penalty relief
to taxpayers whose 2018 federal income tax withholding and estimated tax
payments fell short of their total tax liability for the year by lowering
to 80 percent the threshold required to qualify for this relief. The IRS is
now waiving the estimated tax penalty for any taxpayer who paid at least 80
percent of their total tax liability during the year through federal income
tax withholding, quarterly estimated tax payments or a combination of the
revised waiver computation will be integrated into commercially-available
tax software and reflected in the forthcoming revision of the instructions
for Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and
Trusts. The IRS urges everyone to take a Paycheck Checkup and review
their withholding for 2019. Additionally, the updated Withholding Calculator
is now available on IRS.gov.
2. New Questions & Answers
Available for Section 965 Reporting and Payments
IRS this week released three additional Questions and Answers about Tax
Year 2018 Reporting and Payments Arising under Section 965.
These filing and payment obligations affect U.S. shareholders that are
domestic corporations that own an interest in a foreign corporation. Review
the new questions and answers, numbered seven, eight and nine, on IRS.gov.
3. IRS Nationwide Tax
Forums Offer More than Continuing Education
seminars are just one benefit you get when you attend the 2019 IRS
Nationwide Tax Forums. Others include the Case Resolution Program,
opportunities to talk with IRS subject matter experts, workshops, and
networking opportunities with your colleagues. Register now at www.irstaxforum.com.
4. March 28 Webinar:
Understanding How to Do a Paycheck Checkup
60-minute webinar Understanding How to Do a Paycheck
Checkup will be presented on March 28 at 2 p.m. Eastern Time.
This webinar will provide an overview of who should do a paycheck checkup
and how to use the IRS Withholding Calculator. One continuing education
credit is offered for this webinar.
5. Revised 2019 Form 656
Booklet, Offer in Compromise, Online March 25
2019 revision of the Form 656 Booklet, Offer in
Compromise (OIC) will be available for download on IRS.gov
on March 25. The booklet contains current forms and instructions for
submitting an OIC. Using previous versions of the booklet may result in
delayed processing of OIC applications. Use the OIC Pre-Qualifier Tool to
confirm that your client is eligible for an OIC and to calculate a
preliminary offer amount.
6. IRS to Update
Allowable Living Expense Standards for 2019
Allowable Living Expense (ALE)
standards for 2019 will also be available March 25. The ALE
Standards reduce subjectivity when determining what a taxpayer may claim as
basic living expenses necessary to avoid undue hardship when the taxpayer
must delay full payment of a delinquent tax. The standard allowances
provide consistency and fairness in collection determinations by
incorporating average expenditures for basic necessities
for citizens in similar geographic areas.
7. IRS Issues Proposed
Regulations on New Reporting Requirements for Life Insurance Contract
IRS issued proposed regulations this week
on the new information reporting requirements for certain life insurance
contracts under the Tax Cuts and Jobs Act (TCJA). The proposed regulations
contain transitional guidance delaying any reporting until final
regulations are issued, and they provide taxpayers additional time to
satisfy any reporting obligations for sales or payments made prior to
publication of final regulations.
reporting requirements are designed to help persons who sell life insurance
contracts properly report any gain from that sale. The IRS has released Form and Instructions for 1099-LS
and Form and Instructions for Form
1099-SB, which provide specific instructions on these reporting
requirements. For information about other TCJA provisions, visit IRS.gov/tax-reform.
8. Technical Guidance
Revenue Procedure 2019-14
provides issuers of qualified mortgage bonds, as defined in section 143(a)
of the Internal Revenue Code, and issuers of mortgage credit certificates,
as defined in section 25(c), with (1) nationwide average purchase prices
for residences located in the United States, and (2) average area purchase
price safe harbors for residences located in statistical areas in each
state, the District of Columbia, Puerto Rico, the Northern Mariana Islands,
American Samoa, the Virgin Islands, and Guam.
Notice 2019-26 sets
forth the updated mortality improvement rates and static mortality tables
that are used for purposes of determining: 1) the minimum funding
requirements under section 430(h)(3) for 2020; and 2) the minimum present
value under section 417(e)(3) for distributions with annuity starting
dates that occur during stability periods beginning in the 2020 calendar
Revenue Ruling 2019-09
suspends two 1957 revenue rulings pending completion of a study regarding
the active conduct of a trade or business requirement under sections
355(a)(1)(C) and (b).