IRS Events and Updates

January 8, 2013

Happy New Year…and Many Happy Returns!  As expected, the major tax law changes occurred at year-end.  Please note the FREE IRS Live webinar below to stay informed and, if you attend the live session, earn one CE credit.

Mike Cvitkovic
Stakeholder Liaison, SB/SE
 
915 2nd Ave,  MS601
Seattle  WA  98174
206-220-4385  phone
206-220-4391  fax

Upcoming Events 

Topic: Getting Ready for Filing Season 2013 – Individuals and Businesses

Date:  Wednesday, January 23, 2013

Time:  11:00 a.m. (Pacific); Noon (Mountain); 1:00 p.m. (Central); 2:00 p.m. (Eastern)

What's Covered:

    • Tax Law Updates
    • New tax legislation and its implementation by the IRS
    • Changes to tax forms
    • A panel discussion between the IRS and tax professionals
    • …and live Q&A with the viewing audience.

CPE:  Earn one CE Credit – Category:Federal Tax Update
         
Information & Registration:  

Click on the following link to register: 
http://www.visualwebcaster.com/IRS/91422/reg.asp?id=91422

IRS Updates and News Release

IRS Statement on January 1, 2013 Tax Legislation Passed by Congress

The IRS is currently reviewing the details of this week's tax legislation and assessing what impact it will have on this year's filing season. The IRS will soon make available additional information on when taxpayers can start filing 2012 tax returns. 

On Jan. 3, 2013, the IRS released updated income-tax withholding tables for 2013 reflecting this week’s changes by Congress.

What to Expect for Refunds in 2013

The IRS is taking several steps to improve taxpayers' ability to understand their refund status in 2013. To begin with, taxpayers will get a personalized refund date when they use Where’s My Refund? and the tool will have a new look. Where’s My Refund? will include a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent along with narrative that provides more detail such as the approved refund amount and the date the refund will be sent. Taxpayers will also be able to check on the status of their return sooner - within 24 hours after we’ve received an e-filed return or 4 weeks after a paper return is mailed.

Where’s My Refund? will provide a refund date as soon as the IRS processes the tax return and approves the refund. This means taxpayers won’t get an estimated refund date right away. Instead Where’s My Refund? will give each taxpayer personalized refund information based on the processing of his or her own tax return.

The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year. The same results are expected in 2013.

The Publication 2043, previously the Refund Cycle Chart, has been re-purposed as IRS Refund Information Guidelines for the Tax Preparation Community. The new "What to expect for refunds in 2013" page on IRS.gov includes official IRS 2013 refund communications, including Publication 2043, to help you prepare for the filing season.  

• Pub 2043: IRS Refund Information Guidelines for the Tax Preparation Community
• Tax Tip SETT-2012-13 - Season of Giving Tips 
• Video: When will I get my refund?

Reminder: Any claims by Providers concerning faster refunds by virtue of electronic filing must be consistent with the language in official IRS publications. Per the advertising standards in Publication 3112, IRS e-file Applications and Participation, and Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax, providers must not use improper or misleading advertising in relation to IRS e-file, including the time frames for refunds or other financial products. This reminder serves as the IRS’s request to the tax preparation community to follow these messaging guidelines. The IRS will monitor Industry practice during filing season, but anticipates and expects voluntary compliance from its partners in support of this important effort to help taxpayers understand their refund status.

Return Preparer Office - Update

Preparer Compliance   Letter 4810 was sent to approximately 1,200 paid tax return preparers in November 2012.  Each letter recipient will be contacted by an SB/SE revenue agent who will schedule and conduct an educational visit.  This is the first phase of our annual pre-filing season letters and visits to tax return preparers and is the fourth year of this effort.  Each year RPO and SB/SE have worked in partnership to improve the strategy, the letters, the selection of who will receive them, and the training for the agents conducting the visits. 

Next week we are sending two other letters to certain preparers.  Each of these will be sent to approximately 1,200 other preparers. 

Letter 5102 - Recommends the preparer concentrate at least 4 hours of CE on business income/loss topics in 2013.

Letter 5105 - Recommends the preparer review all Schedule C rules and pay special attention to Schedule C accuracy in 2013.

PTIN Renewals - As of 1/3/2013, about 73% of 2012 PTIN holders have renewed for 2013.  PTINs must be renewed annually and must be done before beginning to prepare returns this filing season.

All paper renewals are being worked timely and well within the 4-6 week response time.

Beginning January 14, the IRS will start issuing letters to those preparers who have not renewed their PTIN advising them that their PTIN has expired.  The language in the letter states:  “You should not prepare returns until you receive notification that your PTIN renewal is complete. If you do not renew your PTIN, you can no longer prepare federal tax returns for compensation. We monitor expired PTINs. If you continue to prepare returns, you may be subject to penalties or other actions  imposed  by the Internal Revenue Service”.

New PTIN Registrations - An additional 37,000+ new first-time PTINs have been issued for 2013.

CE Requirement -  We’ve posted an FAQ on the RPO page of IRS.gov for those who didn't get their 15 hours of CE completed in 2012:

Q. What should I do if I didn't complete my CE requirement for 2012? (posted 1/3/13)

A. You must make up 2012 CE by taking the outstanding credits in 2013. In addition to the 15 hour requirement for 2013, you must also make up any hours not completed in 2012. There is no need to designate or notify us that hours earned in 2013 are for 2012. Be sure to keep records of the programs you attend. 

Additionally, for those people who answered "no" to the CE requirement question on their PTIN renewal, we will be sending them a letter in the next few days advising them they are still responsible for the hours.  

OPR Webinar Now Online

The recent webinar, Circular 230 Overview: Key Provisions and Responsibilities for Tax Professionals, is now available on the IRS video portal.

New on IRS.gov

IRS Strengthens Integrity of ITIN System; Revised Application Procedures in Effect for Upcoming Filing Season

The Internal Revenue Service announced updated procedures to strengthen the Individual Taxpayer Identification Number (ITIN) program requirements. The new modifications and documentation standards further protect the integrity of the ITIN application and refund processes while helping minimize burden for applicants.

Employment Tax Reminders

The Form 944 instructions have information for employers who want to opt in or opt out of filing the annual Form 944 vs. the quarterly Form 941.  The instructions also note that beginning with tax year 2012, employers who previously filed Form 944-SS or 944-PR will continue to file annually using Form 944.

Latest Information on VCSP

Two recent announcements have information about the revised Voluntary Classification Settlement Program for eligible taxpayers who agree to prospectively reclassify workers as employees.

December IMRS Hot Issues Report

This month’s Hot Issues report from the Issue Management Resolution System includes information about a new Spanish language small business webinar on the IRS video portal and the hiring deadline to claim the expanded Work Opportunity Tax Credit for hiring veterans.

Fall 2012 Edition of Retirement News for Employers

To read this edition, please visit the Retirement News for Employers page in the Retirement Plans Community section of the IRS.gov Web site.

New Revenue Procedure Updates Retirement Plan Correction Programs

The updated EPCRS revenue procedure, Revenue Procedure 2013-12, is now available. The new procedure updates and expands the Employee Plans Compliance Resolution System (EPCRS), the comprehensive system of correction programs for sponsors of retirement plans that have failed to meet one or more requirements of the Internal Revenue Code. If you have a technical or procedural question relating to retirement plans, please visit the EP Customer Account Services page in the Retirement section of the IRS.gov Web site.

If you have a specific concern about your retirement plan, call EP CUSTOMER ACCOUNT SERVICES at 1-877-829-5500.

TIGTA Semiannual Report to Congress

The Treasury Inspector General for Tax Administration (TIGTA) today publicly released its Semiannual Report to Congress for the six month period ending September 30, 2012. View the report.

Small Business Webinar in Spanish

The recent Spanish language small business webinar is now available on the IRS video portal.  

Proposed Regulations Issued on Net Investment Income Tax

A new Net Investment Income Tax goes into effect starting in 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above certain threshold amounts. The IRS and the Treasury Department have issued proposed regulations on the Net Investment Income Tax. Comments may be submitted electronically, by mail or hand delivered to the IRS.  For additional information on the Net Investment Income Tax, see questions and answers. Question 6 specifies the types of trusts – including charitable trusts – that are not subject to the tax.

The New Hardwood Timber Industry ATG is Now Available on IRS.gov

The Hardwood Audit Techniques Guide explains industry-specific examination techniques and includes common as well as unique issues, business practices and terminology to help business owners and tax professionals when reporting various items related to the timber industry.  For a complete list of all available industry audit techniques guides go to the main Audit Techniques Guides page on IRS.gov.

Proposed Regulations and FAQs Issued on Additional Medicare Tax

A new Additional Medicare Tax goes into effect starting in 2013. The 0.9 percent Additional Medicare Tax applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status.

The threshold amounts are:

  • $250,000 for married taxpayers who file jointly,
  • $125,000 for married taxpayers who file separately, and
  • $200,000 for all other taxpayers.
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An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year. The IRS and the Treasury Department have issued proposed regulations on the Additional Medicare Tax. Comments may be submitted electronically, by mail or hand delivered to the IRS.  For additional information on the Additional Medicare Tax, see our questions and answers.

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