Issue Number: 2019-26
Tax Security 2.0: Create a Written Data Security Plan
IRS Nationwide Tax Forums: Qualified Business Income
PTIN Required to Prepare Estate, Trust Returns
IRS Letters to Virtual Currency Owners Regarding Back
Aug. 1 Webinar: IRS Civil Enforcement: Field Collections
Enforcement and Employment Tax Compliance
Tax Relief for Texas Disaster Victims
Department of Justice Tax Division Judgements
1. Tax Security 2.0: Create a Written Data Security
Federal law requires
all professional tax preparers
to create a written information security plan to protect their clients’
data. Tax professionals are encouraged to take time this summer to review
their data security protections. The IRS and its Security Summit partners
created a special “Taxes-Security-Together”
Checklist as a starting point.
data is not only a good business practice, it’s the law for professional
tax preparers,” said IRS Commissioner Chuck Rettig. “Creating and putting
into action a written data security plan is critical to protecting your
clients and protecting your business.”
2. IRS Nationwide Tax Forums: Qualified Business
Need to learn more
about the Qualified Business Income (QBI) provisions of the Tax Cuts and
Jobs Act? The IRS Nationwide Tax Forums feature four different sessions
that examine different aspects of QBI. Listen to experts from both the IRS
and its association partners and learn how QBI impacts different businesses
as well as the self-employed taxpayer.
The QBI related sessions include:
- Properly Substantiating the Section 199A Qualified
- Tax Cuts and Jobs Act Update: QBI Deduction and
- 199A Qualified Business Income: Review and Planning
to Maximize the Benefits of QBI on the Form 1040.
- When Does a Rental Generate Qualified Business
Visit the IRS Nationwide Tax Forum website
3. PTIN Required to Prepare Estate, Trust Returns
specializing in estate and trust returns must have a Preparer Tax Identification Number
(PTIN) and renew it annually. A PTIN is required of paid professionals who
prepare or assist in preparing certain federal tax returns, including Form
1041, U.S. Income Tax Return for Estates and Trusts. Failure to enter a
valid PTIN can result in a $50 penalty per return and could cause
processing delays for your clients.
The IRS urges the
estate and trust community, especially financial institutions offering
services to clients, to ensure that staff who prepare or assist in preparing
Forms 1041 have PTINs. PTINs cannot be shared: Each paid professional must
have his or her own. Obtaining or renewing a PTIN takes only a few minutes
and can be done online. Preparers can obtain a PTIN for 2019 now and renew
that PTIN between October and December for 2020. Visit www.irs.gov/ptin to
4. IRS Letters to Virtual Currency Owners Regarding
The IRS has begun sending letters
to taxpayers with virtual currency transactions who potentially failed to
report income and pay the resulting tax from virtual currency transactions
or did not report their transactions properly. "Taxpayers should take
these letters very seriously by reviewing their tax filings and when
appropriate, amend past returns and pay back taxes, interest and
penalties," said IRS Commissioner Chuck Rettig. "The IRS is
expanding our efforts involving virtual currency, including increased use
of data analytics. We are focused on enforcing the law and helping
taxpayers fully understand and meet their obligations."
More information on virtual currencies can
be found on IRS.gov.
5. Aug. 1 Webinar: IRS Civil Enforcement: Field
Collections Enforcement and Employment Tax Compliance
The IRS will present
the webinar, IRS Civil Enforcement: Field
Collections Enforcement and Employment Tax Compliance at 2 p.m.
ET on Aug. 1. This 60-minute webinar will explain why some businesses
accrue employment/payroll taxes, the risks of using a third party to handle
employment/payroll taxes and identify tools employers can use to monitor
their own compliance and limit risk.
To see a complete
list of webinars, visit the Upcoming Webinars page
6. Tax Relief for Texas Disaster Victims
Victims of the
severe storms and flooding that took place on June 24-25 in parts of Texas
may qualify for tax relief.
Visit the IRS disaster relief page
for all updates on tax relief for disaster victims.
7. Department of Justice Tax Division Judgements
Department Tax Division this week reported:
- A Dallas-area tax return preparer was sentenced to 63 months in
prison for conspiring to defraud the United States and for
aiding and assisting in the preparation of false tax returns. In
addition, the preparer was ordered to serve two years of supervised
release and pay $8.3 million to the IRS.
- A northern Virginia equipment rental business owner
pleaded guilty to
employment tax fraud totaling $5 million. At sentencing, the defendant
faces a maximum of five years in prison for failing to pay payroll
8. Technical Guidance
Rev. Proc. 2019-29
provides indexing adjustments required by statute for certain provisions
under section 36B.
Revenue Procedure 2019-30
provides simplified procedures for an insurance company to obtain automatic
consent of the Commissioner of Internal Revenue to change its methods of
accounting for discounting unpaid losses and expenses unpaid, estimated
salvage recoverable, and unearned premiums attributable to title insurance,
as applicable, to comply with section 846.
Revenue Procedure 2019-31
prescribes revised discount factors for the 2018 accident year, as well as
discount factors for the 2019 accident year.
Revenue Procedure 2019-32
grants an extension of time to eligible partnerships to file a superseding
Form 1065, U.S. Return of Partnership Income, and furnish a corresponding
Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits,
etc., to each of its partners.