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August 23, 2019

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Issue Number:  2019-30

Inside This Issue

  1. New IRS Impersonation Email Scam
  2. e-Services Unavailable Over Labor Day Weekend
  3. IRS Lead Development Center Combats Abusive Tax Schemes and Abusive Tax Return Preparers
  4. Aug. 29 Webinar: Ethical Guidelines for Tax Professionals Under Circular 230
  5. Technical Guidance

1.  New IRS Impersonation Email Scam


The IRS and its Security Summit partners warned tax professionals this week about a new IRS impersonation scam campaign spreading nationally on email. The new email scam uses dozens of compromised websites and web addresses that pose as IRS.gov, making it a challenge to shut down. By infecting computers with malware, these imposters may gain control of an individual’s computer or secretly download software that tracks every keystroke, eventually giving them passwords to sensitive accounts, such as financial accounts.

“The IRS does not send emails about your tax refund or sensitive financial information,” said IRS Commissioner Chuck Rettig. “This latest scheme is yet another reminder that tax scams are a year-round business for thieves. We urge you to be on-guard at all times.”

The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.


2.  e-Services Unavailable Over Labor Day Weekend


The IRS will conduct its annual Labor Day systems maintenance beginning 8 a.m. ET on Saturday, Aug. 31, until 6 a.m. ET on Tuesday, Sept. 3. The Modernized e-File Systems (MeF) (both Production and ATS) will not be available during this timeframe. Please refrain from accessing the MeF Systems to transmit business, individual or state tax returns, retrieve acknowledgements or submit any other service requests. Please monitor the MeF Status Page for updates.

In addition, the e-Services’ Transcript Delivery System, TIN Matching, ACA and the e-file Application will also not be available during this time.


3.  IRS Lead Development Center Combats Abusive Tax Schemes and Abusive Tax Return Preparers


The IRS Lead Development Center (LDC) is working to combat tax abuse by stopping abusive promoters and tax return preparers as early as possible. The LDC follows up on internal and external referrals that provide information on tax schemes and abusive tax return preparers. The LDC also ensures that cases involving abusive tax schemes and improper tax return preparation are appropriately sent for further IRS action, including sending cases to Criminal Investigation. 

To report an abusive tax scheme or tax return preparer, please submit Form 14242, Report Suspected Abusive Tax Promotions or Preparers along with any supporting materials to the LDC.


4.  Aug. 29 Webinar: Ethical Guidelines for Tax Professionals Under Circular 230


The IRS will present the webinar, Ethical Guidelines for Tax professionals Under Circular 230 at 2 p.m. ET on Aug. 29. This 60-minute webinar will define TIGTA’s role in protecting the integrity of tax administration and differentiate the jurisdiction between TIGTA and the IRS and discuss preparer ethics and various forms of misconduct.

To see a complete list of webinars, visit the Upcoming Webinars page on IRS.gov.


5.  Technical Guidance


Revenue Ruling 2019-20 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. These rates are determined as prescribed by section 1274.

Notice 2019-46 announces that the Department of the Treasury and the IRS intend to issue regulations that will permit a domestic partnership or S corporation that is a U.S. shareholder of a controlled foreign corporation to apply proposed section 1.951A-5, on the treatment of domestic partnerships and S corporations for determining the amount of the global intangible low-taxed income inclusion, for taxable years ending before June 22, 2019. The notice also addresses the applicability of penalties for a domestic partnership or S corporation that acted consistently with proposed section 1.951A-5 on or before June 21, 2019, but files a tax return consistent with the final regulations under section 1.951A-1(e). To apply the rules in proposed section 1.951A-5 or for penalties not to apply under the notice, a domestic partnership or S corporation must satisfy certain notification and reporting requirements described in the notice. Prior to the issuance of the regulations described in the notice, domestic partnerships and S corporations may rely on the notice, provided they satisfy the requirements described therein.

Notice 2019-48 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. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under section 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under section 431(c)(6)(E)(ii)(I), as reflected by the application of section 430(h)(2)(C)(iv).

Notice 2019-49 extends the temporary nondiscrimination relief for closed defined benefit plans that is provided in Notice 2014-5, 2014-2 Internal Revenue Bulletin 276, by making that relief available for plan years beginning before 2021 if the conditions of Notice 2014-5 are satisfied.