Issue Number: 2019-19
New Draft Instructions for Form W-4 Now Online
Faxing and Third-Party Mailing of Certain Tax
Transcripts to End Soon
Register for the IRS Nationwide Tax Forums by June 15 to
IRS Reminds Taxpayers to Do a Paycheck Checkup
Upcoming Webinars: Taxation on Foreign Compensation and
Tax Transcript Alternatives
Changes to Treatment of Gain or Loss on the Sale of a
Tax Relief for Oklahoma and Nebraska Disaster Victims
1. New Draft Instructions for Form W-4 Now Online
On June 7, the IRS
posted a special early draft of the Publication 15-T,
Federal Income Tax Withholding Methods, for use in 2020. Publication 15-T
will contain all the federal income tax withholding tables. This draft has
been released to provide employers with the computation of withholding to
be made under the Percentage Method and Wage Bracket Method tables using
both the new 2020 Form W-4 and the Forms W-4 from before 2020. Tax
practitioners can email comments about this draft of Publication 15-T to WI.W4.Comments@IRS.gov. Comments should be
submitted by July 8.
See IRS.gov/ Pub15T for the
latest information on the employer instructions and IRS.gov/W4 for the
latest on the Form W-4.
2. Faxing and Third-Party Mailing of Certain Tax
Transcripts to End Soon
As part of an
ongoing effort to protect taxpayers from identity theft, the IRS will end its tax transcript faxing
service on June 28. Additionally, the IRS will end its
third-party mailing options from the Form 4506 series on July 1.
As an alternative,
tax professionals can obtain tax transcripts as follows:
- Request the IRS mail a transcript to the taxpayer’s
address of record.
- Use the e-Services Transcript Delivery System to
obtain masked individual and business transcripts.
- Obtain a masked individual or business transcript
by calling the IRS and faxing an authorization to the IRS assistor,
who will place the transcript into the tax practitioner’s e-Services
For tax preparation
purposes, tax practitioners may:
- Obtain an unmasked wage and income transcript by
calling the IRS and faxing an authorization to the IRS assistor, who
will place the document in the tax practitioner’s e-Services secure
- Obtain an unmasked wage and income transcript if
authorization is already on file by using e-Service’s Transcript
3. Register for the IRS Nationwide Tax Forums by
June 15 to Save
The IRS reminds tax professionals
that the reduced early bird rate for all five 2019 IRS Nationwide Tax
Forums ends June 15. The Tax Forums will be held on the following dates:
- July 9 – 11, National Harbor, Md. (Washington,
- July 23 – 25, Chicago, Ill.
- Aug. 6 – 8, New Orleans, La.
- Aug. 13 – 15, Orlando, Fla.
- Sept. 17 – 19, San Diego, Calif.
If you want to stay
at the forum hotel, it’s important to reserve early. The room block for
National Harbor closes June 10. Visit www.irstaxforum.com to
register for the forums and reserve your room.
4. IRS Reminds Taxpayers to Do a Paycheck Checkup
On June 10, the IRS
will launch a weeklong withholding outreach campaign to encourage taxpayers
to do a Paycheck Checkup. Daily
messages will be disseminated through IRS news releases, tax tips and
social media. The topics will include:
- How to use the IRS Withholding Calculator to get
withholding right for 2019.
- Why taxpayers should do an annual Paycheck Checkup.
- How to avoid an unexpected tax bill next year at
- How the Tax Cuts and Jobs Act affects withholding,
taxes owed and refunds.
- Why and how to pay estimated tax payments.
IRS partners and tax
professionals are encouraged to share these messages.
5. Upcoming Webinars: Taxation on Foreign
Compensation and Tax Transcript Alternatives
The webinar, U.S. Taxation of Employees of
Foreign Governments and International Organizations, will be
presented on June 13, at 2 p.m. ET. The 100-minute webinar will consider
how to determine whether compensation from a foreign government or
international organization is subject to U.S. tax, describe the effect of
U.S. tax residency status and/or visa type on U.S. taxation, explain the exemption
under Internal Revenue Code section 893, and note the consequences of
signing or not signing USCUS Form I-508. Tax professionals can earn two
continuing education credits.
June 19, the webinar, Tax Transcripts: Alternatives to
Faxing and Third-Party Mailing, will be presented at 2 p.m. ET
for tax professionals only. As the IRS will soon stop faxing transcripts
and third-party mailings via the Form 4506 series, tax professionals will
learn about alternatives and how to obtain masked and certain unmasked
transcripts needed for tax administration.
Visit the Upcoming Webinars page
for a complete list of webinars.
6. Changes to Treatment of Gain or Loss on the Sale
of a Partnership Interest
The Tax Cuts and
Jobs Act (TCJA) amended the treatment of gain or loss on the sale of a
partnership interest as well as withholding on the transfer of non-publicly
traded partnership interests. In general, the new law treats a foreign
taxpayer’s gain or loss on the sale or exchange of a partnership interest
as effectively connected with the conduct of a trade or business in the
United States to the extent that gain or loss would be treated as
effectively connected with the conduct of a trade or business in the United
States if the partnership sold all of its assets.
circumstance, the new law also imposes a 10 percent withholding tax on the
amount realized from the sale or exchange of a partnership interest by a
foreign taxpayer. See Comparison of changes to rules for
treatment of gains and losses on the sale of partnership interest under
7. Tax Relief for Oklahoma and Nebraska Disaster
Victims of severe
storms, tornadoes, straight-line winds, and flooding that took place on May
7 in Oklahoma may qualify for tax relief from the
IRS. Additionally, storm victims in Holt County, Nebraska, now qualify for tax relief following
the March 9 severe storm and flooding in that area. Visit the IRS disaster relief page
for updates on tax relief for disaster victims.
8. Technical Guidance
Revenue Ruling 2019-15 provides
the interest rates for underpayments and overpayments. The rates for
interest determined under Section 6621 of the code for the calendar quarter
beginning July 1, will be 5 percent for overpayments (4 percent in the case
of a corporation), 5 percent for underpayments, and 7 percent for large
corporate underpayments. The rate of interest paid on the portion of a
corporate overpayment exceeding $10,000 will be 2.5 percent.