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July 19, 2019

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Issue Number:  2019-25

Inside This Issue

1.     Tax Security 2.0: Practice the “Security Six” Protections

2.     New Orleans Prepped for IRS Nationwide Tax Forum

3.     Modernized e-File System Down this Weekend

4.     2019 Early Release Draft Form 1040 and Form 1040-SR Posted for Comment

5.     TCJA: Section 965 Transition Tax and New Limits on Partners’ Shares of Partnership Losses

6.     Whistleblower Reforms Under the Taxpayer First Act

7.     Taxpayer Advocate Releases EITC Special Report, Taxpayer Journey Roadmap

8.     Department of Justice Tax Division Judgements

9.     Tax Reform Publication Translated into Several Languages

10.   Technical Guidance


1.  Tax Security 2.0: Practice the “Security Six” Protections


The IRS and its Security Summit partners are urging tax professionals to review six critical security steps to ensure they are fully protecting their computers and email and safeguarding sensitive taxpayer data.

“These six steps are simple actions that anyone can take,” said IRS Commissioner Chuck Rettig. “The important thing to remember is that every tax professional, whether a sole practitioner or a partner in a large firm, is a potential target for cybercriminals. No tax business should assume they are too small or too smart to avoid identity thieves.”


2.  New Orleans Prepped for IRS Nationwide Tax Forum


The IRS Nationwide Tax Forums return to New Orleans Aug. 6-8. Earn up to 19 continuing education credits, make an appointment with the Case Resolution Program, network with your colleagues and visit our exhibition hall. Tax professionals save on the registration fee if they sign up by July 23.

Register now: http://www.irstaxforum.com


3.  Modernized e-File System Down this Weekend


The IRS Modernized E-File system (MeF) is currently undergoing maintenance and will be unavailable until Monday July 22 at 12 p.m. Eastern Time.

A second downtime is scheduled for Aug. 3 at 12:01 am through Aug. 5 at 12 p.m.

MeF submissions should not be made during the outage periods. The IRS will issue a Quick Alert bulletin when MeF is available for submissions. Monitor the MeF Operational Status Page for updates.


4.  2019 Early Release Draft Form 1040 and Form 1040-SR Posted for Comment


On July 12, the IRS posted drafts of the 2019 Form 1040, with related numbered schedules, and the 2019 Form 1040-SR, U.S. Tax Return for Seniors, at IRS.gov/DraftForms. Posting drafts is part of the process for inviting stakeholder input before the forms are finalized. Comments should be sent to WI.1040.Comments@irs.gov.


5.  TCJA: Section 965 Transition Tax and New Limits on Partners’ Shares of Partnership Losses


A new question and answer (Q&A) document is available to help you help your clients meet their filing and payment requirements for the Section 965 transition tax. The Q&As address subsequent installment payments when the transition tax is paid over eight years, the filing of transfer and consent agreements, and more.

The IRS has also posted frequently asked questions (FAQs) to help partners properly determine their share of partnership losses. The FAQs, related to Section 704(d), address changes made by the Tax Cuts and Jobs Act that apply partners’ basis limitations to distributive shares of partnership charitable contributions and foreign taxes.


6.  Whistleblower Reforms Under the Taxpayer First Act


On July 1, the President signed into law the Taxpayer First Act. The new law includes several important provisions including changes to the whistleblower notification process and whistleblower protections.


7.  Taxpayer Advocate Releases EITC Special Report, Taxpayer Journey Roadmap


National Taxpayer Advocate Nina Olson this week issued a special report on the Earned Income Tax Credit (EITC), with recommendations designed to increase the participation rate of eligible taxpayers and reduce overclaims by ineligible taxpayers.

Additionally, the Taxpayer Advocate Service (TAS) has provided a map of the modern United States tax system. Learn more about the Taxpayer Roadmap 2019: An Illustration of the Modern United States Tax System at taxpayeradvocate.irs.gov/roadmap.


8.  Department of Justice Tax Division Judgements


The Justice Department’s Tax Division this week reported:

• A Kansas City, Mo., woman, Antoinette Winston, was sentenced to prison to 34 months in prison for wire fraud and aggravated identity theft related to the filing of false tax returns. The U.S. District Court of Kansas ordered her to pay $165,392.48 in restitution to the IRS.

• A federal court in Miami permanently barred Georgina Gonzalez and GeorginagonzalezLLC, Ideal Tax Pros LLC, and Trinity Tax Service LLC, from preparing federal tax returns for others and owning or operating a tax preparation business. The court also ordered Gonzalez and Trinity Tax Service LLC to pay $48,214.30, representing income received for the preparation of fraudulent tax returns. 


9.  Tax Reform Publication Translated into Several Languages


IRS online Publication 5307, Tax Reform Basics for Individuals and Families, provides information to help individual taxpayers understand the new tax law, take action, if necessary, and comply with federal tax return filing requirements. The following translated versions of the online publication are available in PDF format on IRS.gov:

• Chinese Traditional
• Chinese Simplified
• Spanish (Puerto Rico)
• Spanish
• Korean
• Vietnamese
• Russian


10. Technical Guidance


Revenue Ruling 2019-17 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.

Notice 2019-45 expands upon previous guidance (Notice 2004-23, Notice 2004-50 and Notice 2013-57) by providing an appendix with a limited list of additional preventive care services and items for certain chronic conditions that may be treated as preventive care for purposes of section 223(c)(2)(C).