Fast Track Settlement Program Now Available Nationwide; Time-Saving Option Helps Small Businesses Under Audit

IRS Newswire November 6, 2013

 

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Issue Number:    IR-2013-88 Inside This Issue Fast Track Settlement Program Now Available Nationwide; Time-Saving Option Helps Small Businesses Under Audit WASHINGTON — The Internal Revenue Service today announced the nationwide rollout of a streamlined program designed to enable small businesses under audit to more quickly settle their differences with the IRS. The Fast Track Settlement (FTS) program is designed to help small businesses and self-employed individuals who are under examination by the Small Business/Self Employed (SB/SE) Division of the IRS. Modeled on a similar program long available to large and mid-size businesses (those with more than $10 million in assets), FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result, audit issues can usually be resolved within 60 days, rather than months or years. Plus, taxpayers choosing this option lose none of their rights because they still have the right to appeal even if the FTS process is unsuccessful.   Jointly administered by SB/SE and the IRS Appeals office, FTS is designed to expedite case resolution. Under FTS, taxpayers under examination with issues in dispute work directly with IRS representatives from SB/SE’s Examination Division and Appeals to resolve those issues, with the Appeals representative typically serving as mediator. The taxpayer or the IRS examination representative may initiate Fast Track for eligible cases, usually before a 30-day letter is issued. The goal is to complete cases within 60 days of acceptance of the application in Appeals. SB/SE originally launched FTS as a pilot program in September 2006. For more information on taking advantage of the Fast Track Settlement program, please view the short FTS video. Additional background is available on IRS.gov on the Alternative Dispute Resolution webpage and in IRS Announcement 2011-05.



 

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Partnerships, 2011

IRS Tax Stats Dispatch November 6, 2013

 

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Issue Number:    TaxStats 2013 - 21   Partnerships, 2011 Partnerships, 2011- Twenty-two tables presenting Tax Year 2011 data for partnership returns (Forms 1065 and 1065-B), including types of partnerships and specific industrial sectors, are now available. The statistics cover balance sheets, trade or business income and deductions, portfolio income, rental income (including rental real estate income), and total net income. Data are classified by industry and size of total assets. In addition, historical tables provide balance sheet and income statement data as well as counts of partnership returns, by size of assets and receipts. Back to Top For more information on Federal Taxes please visit the IRS.Gov Home Page. Thank you for subscribing to Tax Stats Dispatch Mailing List, an IRS e-mail service.   This message was distributed automatically from the mailing list Tax Stats. Please Do Not Reply To This Message. To subscribe to another list, please go to the e-News Subscriptions page on the IRS Web site.

Electronic Management System (EMS) Downtime

QuickAlerts for Tax Professionals November 5, 2013

 

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Subject:  Electronic Management System (EMS) Downtime The Electronic Management System, located at Martinsburg, West Virginia and Memphis, Tennessee will be unavailable from 1:00 a.m. to 8:00 a.m. Eastern time on Friday, November 8, 2013.  We apologize for any inconvenience caused and thank you for your cooperation. Back to Top Thank you for subscribing to QuickAlerts for Tax Professionals, an IRS e-mail service. If you have an idea or a question related to QuickAlerts you can contact us by e-mail. Submissions which are not related to QuickAlerts will not be processed. If you have tax related questions you should pursue normal customer service channels provided on the IRS.gov Website. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically. Please Do Not Reply To This Message.

2014 PTIN Renewal OPENED

1.  2014 PTIN Renewal Period Underway for Tax Professionals

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The Internal Revenue Service reminded the nation’s almost 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014. All current PTINs will expire on Dec. 31, 2013.

IR-2013-85, Oct. 31, 2013

WASHINGTON — The Internal Revenue Service today reminded the nation’s almost 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014. All current PTINs will expire on Dec. 31, 2013.

Anyone who, for compensation, prepares or helps prepare any federal return or claim for refund must have a valid PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared.

“We ask that you renew your PTIN as soon as possible to avoid a last-minute rush. It’s easy to let this slip as the holiday season approaches,” said Carol A. Campbell, Director, IRS Return Preparer Office.

The PTIN system is ready to accept applications for 2014.

For those who already have a 2013 PTIN, the renewal process can be completed online and only takes a few moments. The renewal fee is $63. If you can’t remember your user ID and password, there are online tools to assist you. Preparers can get started at www.irs.gov/ptin.

If you are registering for the first time, the PTIN application fee is $64.25 and the process may also be completed online.

Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal, is available for paper applications and renewals, but takes four to six weeks to process. Failure to have and use a valid PTIN may result in penalties. All enrolled agents, regardless of whether they prepare returns, must have a PTIN in order to maintain their status.

There have been a number of enhancements to the online PTIN system since last year. They include:

• The fully functional "Manage My Account" tool allowing preparers to self-correct almost any field at any time (including professional credentials). Previously, most changes had to be made during renewal. A phone call was required for users to make changes during the rest of the year. However, for security reasons, name changes still require written documentation.
• Preparers can now view completed continuing education programs reported by IRS-approved providers beginning with 2013 courses. Providers report completed CE programs to the IRS based on your PTIN number. Enrolled agents must have a minimum of 16 CE hours annually and a total of 72 hours every  three years. Others can also view voluntary programs completed. If something is missing, contact your provider directly as we only display what providers send to us.
• Planning to take a year off for any reason? A new function allows certain preparers to inactivate their PTINs voluntarily and then reactivate the same number when they return to work. This is only for those preparers who plan to take a full year off. If you are paid to prepare tax returns during any part of a year, you must have a valid PTIN. Note: Enrolled agents must maintain a valid PTIN each year in order to maintain their EA credential and therefore are not eligible to inactivate their PTIN.

For more information about requirements for federal tax professionals and access to the online PTIN system, go to www.irs.gov/for-Tax-Pros.
http://www.irs.gov/uac/Newsroom/2014-PTIN-Renewal-Period-Underway-for-Tax-Professionals

Selling your home ? Find out what you need to know about taxes

Selling your home?
Find out what you need to know about taxes

If you're selling your home, there are a few things you need to know about federal taxes.

If you make a profit on the sale of your home, you may need to report the profit as a capital gain

when you file your taxes. However, if you owned and lived in the home as your main home for at

least two out of the past five years, you may be able to exclude up to $250,000 of the gain

($500,000 for married couples filing jointly). This excluded gain is also not subject to the new Net

Investment Income Tax, which is effective in 2013. If you are eligible to exclude the gain, you

don’t need to report the sale on your tax return unless you receive a Form 1099-S, Proceeds

from Real Estate Transactions.

Here are some other points to remember:

•  You cannot deduct a loss from the sale of your main home.
  
•  Special rules may apply when you sell a home for which you received the first-time  homebuyer credit. See Publication 523, Selling Your Home, for details.
•  If the home was used for business or rental purposes, special rules apply.
•  When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
  
•  If you or your spouse is on qualified official extended duty in the Uniformed Services, the Foreign Service or the intelligence community, you may elect to suspend the 5-year test period for up to 10 years.

 

Publication 523 provides more information about selling your home and is available at IRS.gov

or by calling 800-TAX-FORM (800-829-3676). This publication includes worksheets to help you

figure the adjusted basis of the home you sold, the gain (or loss) on the sale and the gain that

you can exclude.

For more information please refer to the following link. http://www.irs.gov/pub/irs-utl/OC-SellingyourhomeFindoutwhatyouneedtoknowabouttaxesFINAL9.pdf

Six important tips on gambling income and losses

Six important tips on gambling income and losses

It’s a common misconception that unless you receive a Form W-2G, Certain Gambling Winnings, at a casino, your gambling winnings don’t have to be reported on your federal tax return. Whether you roll the dice, play cards or bet on races, all your winnings are taxable. Gambling winnings, like any other income not specifically exempted from law, are taxable and must be reported on your federal tax return, regardless of whether or not documentation was provided at the time the money was earned (or won). Fortunately, if you itemize your deductions, there are ways to offset your gambling winnings with any losses that you may have incurred up to the amount of your winnings. Below are six tips that you should know:

 

1. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races

and casinos. It includes cash winnings and the fair market value of prizes, such as cars and

trips.

2. If you receive a certain amount of gambling winnings, or have any winnings subject to federal

tax withholding, the payer is required to issue you a Form W-2G. The payer must give you this

form if you receive:

•  $1,200 or more in gambling winnings from bingo or slot machines;
•  $1,500 or more in proceeds (the amount of winnings minus the amount of the wager) from keno;
  
•  More than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament;
•  $600 or more in gambling winnings (except winnings from bingo, keno, slot machines and poker tournaments), and the payout is at least 300 times the amount of the wager; or Any other gambling winnings subject to federal income tax withholding.

3. Generally, you report all gambling winnings as income on line 21 of Form 1040, U.S. Federal

Income Tax Return. This is true even if you do not receive a Form W-2G.

 

4. If you are a casual gambler, report all your gambling winnings as income on your federal

income tax return. This is true even if you do not receive a Form W-2G.

 

5. You can claim your gambling losses, up to the amount of your winnings, on Form 1040,

Schedule A, Itemized Deductions, under Other Miscellaneous Deductions. You must report

the full amount of your winnings as income and claim your allowable losses separately. You

cannot deduct gambling losses that are more than your winnings. You cannot reduce your

gambling winnings by your gambling losses and report the difference.

 

6. Keep accurate records. If you are going to deduct gambling losses, you must have receipts,

tickets, statements and documentation, such as a diary or similar record of your losses and

winnings. Your records should show your winnings separately from your losses. Refer to IRS

Publication 529, Miscellaneous Deductions, for more details about the type of information you

should write in your diary and what kinds of proof you should retain in your records.

For more information on gambling income and losses, see IRS Publication 529, Miscellaneous

Deductions or Publication 525, Taxable and Nontaxable Income, both available at IRS.gov or by

calling 800-TAX-FORM (800-829-3676). For more information please refer to this link. http://www.irs.gov/pub/irs-utl/OC-SixImportantTipsonGamblingWinningsandLossesFINAL9.pdf

_______________________________________

2014 PTIN renewal season delayed

2014 PTIN renewal season delayed – you can continue to use the online PTIN system to log in, view or change information, or secure a PTIN for 2013 

If You Receive an IRS Notice, Here’s What to Do

IRS Summertime Tax Tip 2013-22, August 21, 2013

Each year the IRS sends millions of letters and notices to taxpayers. Although some people may feel anxious when they receive one, many are easy to resolve. Here’s what to do if you receive a letter or notice from the IRS:

1. Don’t panic. Follow the instructions in the letter.
   
2. There are many reasons the IRS sends notices to taxpayers. The notice usually covers a specific issue about your account or tax return. It may request payment of taxes, notify you of a change to your account or ask for additional information.
   
3. If you receive a notice about a correction to your tax return, you should review it carefully. You usually will need to compare the information in the notice to the entries on your tax return.
   
   If you agree with the correction, you usually don’t need to reply unless a payment is due.
   
   If you don’t agree with the correction the IRS made, it’s important that you respond as requested. Respond to the IRS in writing to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left corner of the notice. Allow at least 30 days for a response from the IRS.
   
4. There is no need for you to call or visit an IRS office to answer most IRS notices. If you have questions, call the telephone number in the upper right corner of the notice. When you call, have a copy of your tax return and the notice available.
   
5. Keep copies of any correspondence with your tax records.

For more information about IRS notices and requests for payment, see Publication 594, The IRS Collection Process. For information about penalties and interest charges, see Publication 17, Your Federal Income Tax for Individuals. Both are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

IRS Announces 2014 Pension Plan Limitations; Taxpayers May Contribute up to $17,500 to their 401(k) plans in 2014

Issue Number:    IR-2013-86

Inside This Issue

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IRS Announces 2014 Pension Plan Limitations; Taxpayers May Contribute up to $17,500 to their 401(k) plans in 2014

WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014.  Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment.  However, other pension plan limitations will increase for 2014.  Highlights include the following:

• The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $17,500.
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $5,500.
• The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500.  The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
• The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $60,000 and $70,000, up from $59,000 and $69,000 in 2013.  For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $96,000 to $116,000, up from $95,000 to $115,000.  For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $181,000 and $191,000, up from $178,000 and $188,000.  For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
• The AGI phase-out range for taxpayers making contributions to a Roth IRA is $181,000 to $191,000 for married couples filing jointly, up from $178,000 to $188,000 in 2013.  For singles and heads of household, the income phase-out range is $114,000 to $129,000, up from $112,000 to $127,000.  For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
• The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $60,000 for married couples filing jointly, up from $59,000 in 2013; $45,000 for heads of household, up from $44,250; and $30,000 for married individuals filing separately and for singles, up from $29,500.

2014 PTIN Renewal Period Underway for Tax Professionals

Issue Number:    IR-2013-85

Inside This Issue

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2014 PTIN Renewal Period Underway for Tax Professionals

WASHINGTON — The Internal Revenue Service today reminded the nation’s almost 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014. All current PTINs will expire on Dec. 31, 2013.
Anyone who, for compensation, prepares or helps prepare any federal return or claim for refund must have a valid PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared.
“We ask that you renew your PTIN as soon as possible to avoid a last-minute rush. It’s easy to let this slip as the holiday season approaches,” said Carol A. Campbell, Director, IRS Return Preparer Office.
The PTIN system is ready to accept applications for 2014.
For those who already have a 2013 PTIN, the renewal process can be completed online and only takes a few moments. The renewal fee is $63. If you can’t remember your user ID and password, there are online tools to assist you. Preparers can get started at www.irs.gov/ptin.
If you are registering for the first time, the PTIN application fee is $64.25 and the process may also be completed online.
Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal, is available for paper applications and renewals, but takes four to six weeks to process. Failure to have and use a valid PTIN may result in penalties. All enrolled agents, regardless of whether they prepare returns, must have a PTIN in order to maintain their status.
There have been a number of enhancements to the online PTIN system since last year. They include:

• The fully functional "Manage My Account" tool allowing preparers to self-correct almost any field at any time (including professional credentials). Previously, most changes had to be made during renewal. A phone call was required for users to make changes during the rest of the year. However, for security reasons, name changes still require written documentation.
• Preparers can now view completed continuing education programs reported by IRS-approved providers beginning with 2013 courses. Providers report completed CE programs to the IRS based on your PTIN number. Enrolled agents must have a minimum of 16 CE hours annually and a total of 72 hours every  three years. Others can also view voluntary programs completed. If something is missing, contact your provider directly as we only display what providers send to us.
• Planning to take a year off for any reason? A new function allows certain preparers to inactivate their PTINs voluntarily and then reactivate the same number when they return to work. This is only for those preparers who plan to take a full year off. If you are paid to prepare tax returns during any part of a year, you must have a valid PTIN. Note: Enrolled agents must maintain a valid PTIN each year in order to maintain their EA credential and therefore are not eligible to inactivate their PTIN.

For more information about requirements for federal tax professionals and access to the online PTIN system, go to www.irs.gov/for-Tax-Pros

2014 Tax Season to Start Later Following Government Closure

 2014 Tax Season to Start Later Following Government Closure; IRS Sees Demand As Operations Resume.

IR-2013-82, Oct. 22, 2013

WASHINGTON — The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.

The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.

About 90 percent of IRS operations were closed during the shutdown, with some major workstreams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.

Read more.... http://www.irs.gov/uac/Newsroom/2014-Tax-Season-to-Start-Later-Following-Government-Closure;-IRS-Sees-Heavy-Demand-As-Operations-Resume