Issue Number: 2019-20
Last Chance for IRS Nationwide Tax Forum Early-Bird Rate
IRS Expands Secure Messaging Program; Encourages Tax
Pros to Participate
Upcoming Webinars: Restaurant Industry
Employment/Payroll Taxes and Tax Transcript Alternatives
Tax Relief for Nebraska, South Dakota, Oklahoma and
Arkansas Disaster Victims
Reminder: Recent Changes to Taxes on Foreign Activities
Understanding Backup Withholding Notices
1. Last Chance for IRS Nationwide Tax Forum
The IRS Nationwide
Tax Forums Early-Bird rate of $235 is available through Saturday, June 15
for all forum locations. After this date, the standard rate of $255 will be
in effect until two weeks from the start of each forum. Join your
colleagues at our first location, National Harbor, Md., just outside
Washington, DC, on July 9-11.
To learn more about
the forums, view our new YouTube video. To
register, visit www.irstaxforum.com.
2. IRS Expands Secure Messaging Program; Encourages
Tax Pros to Participate
This year the IRS
will invite more than 50,000 taxpayers to participate in the Secure
Messaging Taxpayer Digital Communication program, which permits taxpayers
to receive messages, respond to questions and upload documents using the
Secure Messaging portal. The IRS began the program focusing on Forms 1040
with Schedule A and
education credits and has now expanded it to include child care credits and
Schedule C issues.
The IRS welcomes tax
professionals to participate. However, the program is by invitation only,
and your client must receive an audit letter inviting him to participate.
Also, your client needs to register for Secure Messaging before you do.
After you register and have a valid authorization on file, you will have
access to your own mailbox to communicate with the IRS.
3. Upcoming Webinars: Restaurant Industry
Employment/Payroll Taxes and Tax Transcript Alternatives
The IRS and the
California Department of Tax and Fee Administration will present the
webinar, Employment/Payroll Taxes for the
Restaurant Industry, at 1 p.m. ET on June 18. The webinar
will provide information on employment/payroll taxes, sales and use tax for
the prepared food industry and teach participants how to avoid the most
common tax related mistakes made by restaurants and food vendors.
Additionally, Tax Transcripts: Alternatives to
Faxing and Third-Party Mailing, will be presented at 2 p.m. ET
on June 19. The webinar will outline the options for tax professionals to
obtain tax transcripts, as the IRS will stop faxing transcripts and end
third-party mailing options from the Form 4506.
Visit the Upcoming Webinars page
for a complete list of webinars.
4. Tax Relief for Nebraska, South Dakota, Oklahoma
and Arkansas Disaster Victims
Storm victims in the
following states may qualify for tax relief:
- Nebraska – for
severe winter storm, straight-line winds and flooding that took place
on March 9
- South Dakota – for
severe storms, tornadoes, straight-line winds and flooding that began
on March 13
- Oklahoma – for
severe storms, tornadoes, straight-line winds and flooding that took
place on May 7
- Arkansas – for
severe storms and flooding that took place on May 21
Visit the IRS disaster relief page
for all updates on tax relief for disaster victims.
5. Reminder: Recent Changes to Taxes on Foreign
The Tax Cuts and
Jobs Act made major changes to the way the federal government taxes foreign
activities. Significant changes involve:
- Foreign tax credits/dividends received
- Special rules relating to sales or transfers
involving specified 10-percent owned foreign corporations
- Treatment of deferred foreign income upon
transition to participation exemption system of taxation
- Global Intangible Low-Taxed Income
- Deduction with respect to foreign-derived
intangible income and global intangible low-taxed income
- Hybrid transactions/entities
- Shareholders of surrogate foreign corporations not
eligible for reduced rate on dividends
- Tax on base erosion payments of taxpayers with
substantial gross receipts.
See Tax Cuts and Jobs Act: A
comparison for large businesses and international taxpayers for
more information on the treatment of foreign income. This side-by-side
comparison for large and international taxpayers can help individuals
understand the changes and plan accordingly. Updates on this and other TCJA
international provisions can also be found on the International Taxpayers and
Businesses page of IRS.gov.
6. Understanding Backup Withholding Notices
Have your clients
received Backup Withholding CP2100 or CP2100A Notices? The IRS issues these
notices to inform payers of certain types of income payments that backup withholding may
need to begin. Backup withholding begins if a taxpayer identification
number (TIN) is missing or if incorrect name/TIN combinations occur. Payers
who receive these notifications should compare the information in the
notice with their records and do the following:
- For missing TINs: Determine if backup withholding
is already set up. If not, begin immediately.
- For incorrect TINs: Compare the accounts on the
listing. If they agree, notify the taxpayer. If not, correct or
Payers do not need
to send corrections made to the IRS and should not respond to the notice.
For more information, see Publication 1281, Backup
Withholding for Missing and Incorrect Name/TIN(S).
7. Technical Guidance
announces that Treasury and the IRS intend to publish a proposed regulation
providing a safe harbor under section 164 for certain individuals who make
a payment to or for the use of an entity described in section 170(c) in
return for a state or local tax credit.
Notice 2019-40 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.