January 2014 Newsletter

January 1, 2014

December 4, 2013

Alaska Practitioner Liaison Meeting 
Virtual Meeting via WebInterpoint 
Time: 1:30 pm – 3:30 pm Alaska Standard
 
________________________________________
Attendees:  
Internal Revenue Service
•Kristen Hoiby, NW Area Manager, Stakeholder Liaison
•Mike Cvitkovic, Stakeholder Liaison   
•Sonia Oen, SBSE Examination Group Manager
•Julie Payne, SBSE Associate Area Counsel Managing Counsel  
•Sue Stockman, W&I, SPEC Territory Manager
•John Williamson, SBSE Collection Group Manager
Practitioner Representatives
•Therese Sharp, Chair, ASCPA, Alaska Society of CPAs 
•John Brewer, ASCPA
•Cynthia Coulter, ASCPA
•Robert Rehfeld, ASCPA 
•John Rodgers, ASCPA 
•Lisa Rogers, ASCPA  
•Chuck Schuetze, ABA, Alaska Bar Association
•Christy Lee, ABA 
•Paula Laurion, EA, Alaska Society of Independent Accountants  
•Barbara Hompesch, EA, ASIA  
•Kathie Riley, EA, ASIA
•L. LaVonne Scott, EA, ASIA 
•Sherry Whah, EA, National Association of Tax Professionals
 
________________________________________
Meeting Summary
Mike Cvitkovic, Stakeholder Liaison, Seattle
Mike discussed new updates and improvements to the Exempt Organizations website including a news feature on the top right-hand side of the homepage to help call attention to current topics and new developments, the A-Z Index moving to a more prominent position on the left-hand side, and new web pages that address EO Examinations, including what to expect when audited.  EO Select Check is helpful in determining if a client has made a contribution to a qualified 501(c)(3) organization.  The new Interactive Form 1023 (application for tax exemption) was recently added under the “Starting Out” tab on IRS Stay Exempt.  The new tool includes prerequisite questions, auto-calculating fields, supplemental pages for requested information, help buttons and links to relevant information,   It can be printed and submitted. News Release IR-2013-92 announced that IRS issued proposed new guidance on the requirements to qualify as tax-exempt social welfare organizations under 501(c)(4).  The guidance, as well as a link for comments on the guidance, can be found at the Federal Register.  Comments must be received by February 27, 2014.  Complaints about existing tax-exempt organizations may be submitted on Form 13909.
IRS is continuing efforts on Identity Protection.  IRS has more than 3,000 IRS employees working on identity theft-related cases.  In addition, the IRS has trained 35,000 employees who help people victimized by identity theft.  Fraud prevention has been enhanced with dozens of identity theft filters in place during return processing, Criminal Investigation tripling the number of identity theft investigations, and nationwide enforcements sweeps.  Early detection was enhanced by the Taxpayer Protection Program and the Law Enforcement Assistance Program.  Victim assistance continues with the Identity Protection Personal Identification Numbers (IP PINs) and the IRS Identity Protection Specialized Unit available at 800-908-4490.  Practitioners are encouraged to employ physical and system safeguards to protect client information.
Visit the Section 7216 Information Center to keep current on rules and consent requirements relating to the disclosure or use of tax return information by tax return preparers.
Publication 1518, the wall-hanging IRS Tax Calendar for Small Businesses and Self-Employed, is being discontinued.  Replacing it are two online tax calendars.  The Calendar Connector gives users access to tax dates right from their desktop even when offline.  The Online Calendar allows Smartphone users to access tax dates via IRS.gov through their phone browser.  
Mike pointed out the new Affordable Care Act Tax Provisions Home Page on IRS.gov which provides complete information on the tax provisions included in the law.  Three topics are shown – Individuals & Families, Employers, and Other Organizations.  The site details key provisions commenced in 2013 and those coming in 2014.  Publication 5093, Healthcare Law Online Resources, lists ACA resources from the IRS, the Departments of Health & Human Services and Labor, and the Small Business Administration.
Following the June 26 Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act, the Internal Revenue Service in August issued Revenue Ruling 2013-17, ruling that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.  Additional guidance is provided in updated Frequently Asked Questions for same-sex couples and updated FAQs for registered domestic partners and individuals in civil unions.  In September IRS issued Notice 2013-61 providing guidance for employers and employees to claim refunds or adjust overpayments of FICA taxes and Federal income tax withholding with respect to certain benefits and remuneration paid to same-sex spouses.   
 
The IRS is conducting EITC due diligence compliance audits of return preparers. The IRS visits include a review of at least 25 EITC claims for compliance with Internal Revenue Code Section 6695(g), including completion and submission of Form 8867, Paid Preparer’s Earned Income Credit Checklist, completion of the EITC worksheet, compliance with the “knowledge” requirement, and compliance with record keeping requirements.
 
Enhanced program efficiencies and improved technology have allowed the Service to reduce the tax return photocopy fee (Form 4506) from $57.00 per copy to $50.00. Requests should normally be filled within 75 days. Please note that tax return transcripts often suffice in place of return copies – and transcripts are available free. 
T.D. 9647 announced that, effective January 1, 2014, user fees charged for processing installment agreements and offers in compromise will increase. The fee for entering into an installment agreement will increase from $105 to $120 and the fee for restructuring or reinstating an installment agreement will increase from $45 to $50. The fee for processing an offer in compromise will increase from $150 to $186.  The fee for a direct debit installment will remain at $52 and low-income taxpayers will continue to pay $43 for a new installment agreement. Compromise offers based on doubt as to liability and offers from low-income taxpayers will continue to be exempt from a user fee.
The Alternative Dispute Resolution program is now available nationwide.  Fast Track Settlement processes are available for taxpayers involved in examinations by the Large Business and International, Small Business and Self-Employed, and Tax Exempt and Government Entities divisions. Fast Track Mediation is available to Small Business and Self-Employed taxpayers in examination and collection actions. Other resolution programs include Early Referral, Post Appeals Mediation, Arbitration, and Simultaneous Appeals/Competent Authority.
Revenue Procedure 2013-30 provides the exclusive simplified methods for taxpayers to request late election relief for S corporations, Electing Small Business Trusts, Qualified Subchapter S Trusts, Qualified Subchapter S Subsidiaries, and Corporate classification elections. Generally, the relief under the revenue procedure can be granted when the entity fails to qualify solely because it failed to file the appropriate election under Subchapter S timely with the applicable IRS Campus and all returns reported income consistently as if the election was in effect.
Publication 1635, Understanding Your EIN, is now electronic-only. 
Notice 2013-65 announces the special per diem rates effective October 1, 2013, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. The rates are the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. 
The Offer in Compromise pre-qualifier tool can be used to determine eligibility and calculate a preliminary offer amount.       
Time is running short, barring extension, to claim the Work Opportunity Tax Credit (WOTC). The WOTC applies to qualified veterans hired before Jan. 1, 2014.  It also extends to targeted group members, other than qualified veterans, hired after Dec.31, 2011, and before Jan.1, 2014.
The IRS is continuing Voluntary Worker Classification Settlement Program (VCSP). The VCSP is a program that allows taxpayers to voluntarily reclassify their workers as employees for future tax periods for employment tax purposes. Under the VCSP, a taxpayer will pay 10 percent of the amount of employment taxes that would have been due on compensation paid to the workers being reclassified for the most recent tax year, calculated under the reduced rates of section 3509(a) of the Internal Revenue Code. In addition, the taxpayer will not be liable for any interest and penalties on the payment under the VCSP, and will not be audited for employment tax purposes for prior years with respect to the worker classification of the workers.
Kristen Hoiby, Stakeholder Liaison, Seattle
Kristen spoke about the Return Preparer Initiative.  She pointed out recent improvements made to Online PTIN accounts. "Manage My Account" is fully functional, allowing users to self-correct almost any field at any time. Users can now view completed continuing education programs reported by IRS-approved providers beginning with 2013 courses. PTIN holders who plan to take a full year off may inactivate their PTIN voluntarily and then reactivate the same number when they return to work.
   
The 2014 PTIN renewal period has started.  All current PTINs will expire on Dec. 31, 2013.  The renewal fee is $63.  The first time PTIN application fee is $64.25.  To avoid processing slowdowns and inaccessibility don’t wait until late December.  
 
Enrolled agents with social security numbers ending in 0, 1, 2, or 3 who did not renew for the 2013 cycle have had their enrollment placed in inactive status. Enrolled agents with social security numbers ending in 0, 1, 2, or 3 who have not renewed since the 2007 cycle have had their enrollment placed in terminated status. 
Renewal season is underway for enrolled agents with SSNs ending in 4, 5, or 6.  IRS will send emails to affected enrolled agents advising that renewal letters will be placed in their PTIN account secure mailbox.  The Detroit Office of Enrollment recently implemented a new toll-free number. The number is 855-472-5540 and is open from 7:30 to 5:00 Eastern Standard Time.  They may also be contacted via their mailbox epp@irs.gov. 
Kristen reminded that e-Service’s Disclosure Authorization (DA) and Electronic Account Resolution (EAR) applications have been removed.  Former DA users will need to complete Form 2848, 8821, or 706 and mail or fax it to the appropriate IRS location listed on the form’s instructions.  If faxing, practitioners are advised to use e-fax telephone numbers – Ogden CAF (855) 214-7522 or Memphis CAF (855)214-7519.  Please allow at least 4 days for the authorization to post to the IRS database before requesting a transcript through the Transcript Delivery System.  Former EAR users should call the Practitioner Priority Service at 1-866-860-4259 for help resolving account-related issues.
 
Kristen addressed closure and furlough, noting that IRS had issued an information release IR-2013-82 on October 22nd noting that IRS received 400,000 pieces of correspondence during the shutdown in addition to the 1 million items already being processed at the time of the shutdown.  This release announces that the filing season will be delayed and not start before January 28th and no later than February 4th.  We have had no additional information since that time. The notice also advises that IRS will not start to process tax returns until the starting date, so there is no advantage in filing a paper return; an efiled return with direct deposit will be processed more quickly. 
Issues & Status (written submission) 
A response was received to the national Issue Management Resolution System (IMRS) issue from Sherry Whah regarding a F2848 with a durable Power of Attorney submitted to the Practitioner Priority Service.  She was informed that the durable Power of Attorney would not be accepted since it was not done through the court system. Practitioner Priority Service stated that their advice was incorrect, apologized, and that education would be provided to assistors to accept any duly notarized POAs.
Roundtable & Comments
Sue Stockman, Stakeholder Partnership Education and Communication (SPEC)
The Volunteer Return Preparation Program prepared 12,800 tax returns in Alaska.  Some practitioners volunteering for the VITA/TCE program may be eligible to earn continuing education credits.  Practitioners must certify at the advanced level in tax law before starting to volunteer.  Sue currently has two staff in Anchorage.  That number will drop to one with a January retirement. 
Julie Payne, Counsel
Notice 2013-77 provides that dividends and other distributions made by an Alaska Native Corporation to its shareholders are eligible for voluntary withholding.  Shareholders should submit Form W-4V to a Corporation. Until the Form W-4V is revised, shareholders may annotate a current Form W-4V.   
Counsel is working closely with LITCs and pro bono attorneys to help taxpayers resolve their docketed Tax Court cases early. Letters to taxpayers who have no representative (or whose representative has not entered an appearance in the case) will be sent out in February. 
Julie has approximately 40 attorneys across SBSE, LB&I, and CT advising and representing the IRS in Washington and Alaska.                                                                                
Sonia Oen, Examination 
Sonia expressed appreciation to the practitioner community for their cooperation in rescheduling audits disrupted by the shutdown.  Her staffing consists of 7 Revenue Agents in Anchorage.  She anticipates the next six month’s workload will be similar to the prior period. The Fast Track Settlement program has not been utilized on any Alaska examinations, but is available for any examinations meeting the criteria. 
John Williamson, Collection
John expressed gratitude to the practitioner community for their cooperation in dealing with the disruption caused by the shutdown. He has 5 Revenue Officers - four in Anchorage, one in Fairbanks. He has two tax examiners working cases from Alaska and Washington. No changes in staffing or workload are foreseen. 
Darlene Vanness, Taxpayer Assistance Center (written submission)
Due to the loss of all staff in Fairbanks the Anchorage TAC is sending one person every other week to cover the Fairbanks TAC. This arrangement will continue until further notice. The TACs will not be preparing tax returns any longer. Transcripts will need to be ordered online and EINs will need to be requested online.  
Kristia Douts, Taxpayer Advocate (written submission)
Besides calling the Local Taxpayer Advocate in Alaska at 907-271-6877 or faxing to 907-271-6157, virtual TAS help in Kenai is now available through a two-way high-definition video conferencing service located at the Kenai Community Library. 
Lisa Rogers  
Lisa shared the case of withholding credited to a F1120S not being refunded to the entity.  Since there is no line on F1120S for withholding, IRS does not routinely look for a matching F1099.  The “overpayment & estimated payments line” is not intended for withholding.  Preparers should attach a copy of the F1099 to the electronically filed return along with an explanatory note to alert IRS of the credit.
Chuck Schuetze
Chuck commented on the voluntary withholding option being made available to ANC shareholders.
________________________________________
Next Scheduled Meeting
No date set for the May 2014 edition.
 
 
 
 
 
 

Happy New Year!

“Ring out the old, ring in the new,

 

 Ring, happy bells, across the snow:

 The year is going, let him go; 

 Ring out the false, ring in the true.”

~~ Lord Tennyson

 Happy New Year’s!  I hope you enjoyed a relaxing, fun holiday season surrounded by those special to you. 

  • AKCPA Leadership Academy

 I promised you in my December newsletter article details on the Leadership Academy.  It was a fun, exciting day and I really enjoyed getting to know the participants.  On December 3, the Society kicked off the first Leadership Academy with a one-day session. 

 Have you ever thought about your favorite ice cream and WHY it is your favorite?  Ask the next person you meet about his favorite ice cream and why. Listen to the story of why it is a favorite and I think you will find it a neat way to get a small glimpse into their life.  Plus, who doesn’t love to talk about ice cream?? 

We spent the day getting to know one another, including our favorite ice creams.  We evaluated our strengths as leaders using Strength-Based Leadership (Tom Rath and Barry Conchie) as a framework.  This evaluation included pre-work completed by the participants.  I think this pre-work was, in part, confirmatory and surprising for the participants.  Leadership is very personal and individualistic.  To be a strong leader, whether in your community, your firm, or your family, you have to understand what strengths you have so that you can focus on and build those strengths. By knowing our own strengths, we discover those areas or characteristics that are weak.  This recognition of both strengths and weaknesses helps us foster relationships and teams of people with strengths that we lack.  

We were joined by several members who shared with the participants their experience with leadership in the community, in their firms and in the Society.  I would like to send a big thank you to Rita De La Torre, Josh McIntyre, John Rodgers and Don Rulien for sharing their time with us.

 

The participants will join in a webinar in January regarding a project that they will be working on over the next 6 months.  In May, they will participate in another webinar that will get them excited and prepared for the two-day session in June. 

 

  • Nominations Ballot

Hopefully, you have all received the nominations for the Board of Directors and Officers for the upcoming year.  Please take time to make your selections and send those back to Linda at the Society office. 

Wishing you a successful and peaceful 2014!

 Alaska Practitioner Liaison Meeting 

Virtual Meeting via WebInterpoint 

Attendees:

Internal Revenue Service

•Kristen Hoiby, NW Area Manager, Stakeholder Liaison

•Mike Cvitkovic, Stakeholder Liaison  

•Sonia Oen, SBSE Examination Group Manager

•Julie Payne, SBSE Associate Area Counsel Managing Counsel  

•Sue Stockman, W&I, SPEC Territory Manager

•John Williamson, SBSE Collection Group Manager

Practitioner Representatives

•Therese Sharp, Chair, ASCPA, Alaska Society of CPAs 

•Jon Brewer, ASCPA

•Cynthia Coulter, ASCPA

•Robert Rehfeld, ASCPA 

•John Rodgers, ASCPA 

•Lisa Rogers, ASCPA  

•Chuck Schuetze, ABA, Alaska Bar Association

•Christy Lee, ABA 

•Paula Laurion, EA, Alaska Society of Independent Accountants  

•Barbara Hompesch, EA, ASIA  •Kathie Riley, EA, ASIA

•L. LaVonne Scott, EA, ASIA 

•Sherry Whah, EA, National Association of Tax Professionals

Meeting Summary:

Mike Cvitkovic, Stakeholder Liaison, Seattle

Mike discussed new updates and improvements to the Exempt Organizations website including a news feature on the top right-hand side of the homepage to help call attention to current topics and new developments, the A-Z Index moving to a more prominent position on the left-hand side, and new web pages that address EO Examinations, including what to expect when audited.  EO Select Check is helpful in determining if a client has made a contribution to a qualified 501(c)(3) organization.  The new Interactive Form 1023 (application for tax exemption) was recently added under the “Starting Out” tab on IRS Stay Exempt.  The new tool includes prerequisite questions, auto-calculating fields, supplemental pages for requested information, help buttons and links to relevant information,   It can be printed and submitted. News Release IR-2013-92 announced that IRS issued proposed new guidance on the requirements to qualify as tax-exempt social welfare organizations under 501(c)(4).  The guidance, as well as a link for comments on the guidance, can be found at the Federal Register.  Comments must be received by February 27, 2014.  Complaints about existing tax-exempt organizations may be submitted on Form 13909.

IRS is continuing efforts on Identity Protection.  IRS has more than 3,000 IRS employees working on identity theft-related cases.  In addition, the IRS has trained 35,000 employees who help people victimized by identity theft.  Fraud prevention has been enhanced with dozens of identity theft filters in place during return processing, Criminal Investigation tripling the number of identity theft investigations, and nationwide enforcements sweeps.  Early detection was enhanced by the Taxpayer Protection Program and the Law Enforcement Assistance Program.  Victim assistance continues with the Identity Protection Personal Identification Numbers (IP PINs) and the IRS Identity Protection Specialized Unit available at 800-908-4490.  Practitioners are encouraged to employ physical and system safeguards to protect client information.

Visit the Section 7216 Information Center to keep current on rules and consent requirements relating to the disclosure or use of tax return information by tax return preparers.

Publication 1518, the wall-hanging IRS Tax Calendar for Small Businesses and Self-Employed, is being discontinued.  Replacing it are two online tax calendars.  The Calendar Connector gives users access to tax dates right from their desktop even when offline.  The Online Calendar allows Smartphone users to access tax dates via IRS.gov through their phone browser.

Mike pointed out the new Affordable Care Act Tax Provisions Home Page on IRS.gov which provides complete information on the tax provisions included in the law.  Three topics are shown – Individuals & Families, Employers, and Other Organizations.  The site details key provisions commenced in 2013 and those coming in 2014.  Publication 5093, Healthcare Law Online Resources, lists ACA resources from the IRS, the Departments of Health & Human Services and Labor, and the Small Business Administration.

Following the June 26 Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act, the Internal Revenue Service in August issued Revenue Ruling 2013-17, ruling that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.  Additional guidance is provided in updated Frequently Asked Questions for same-sex couples and updated FAQs for registered domestic partners and individuals in civil unions.  In September IRS issued Notice 2013-61 providing guidance for employers and employees to claim refunds or adjust overpayments of FICA taxes and Federal income tax withholding with respect to certain benefits and remuneration paid to same-sex spouses.   

The IRS is conducting EITC due diligence compliance audits of return preparers. The IRS visits include a review of at least 25 EITC claims for compliance with Internal Revenue Code Section 6695(g), including completion and submission of Form 8867, Paid Preparer’s Earned Income Credit Checklist, completion of the EITC worksheet, compliance with the “knowledge” requirement, and compliance with record keeping requirements. 

Enhanced program efficiencies and improved technology have allowed the Service to reduce the tax return photocopy fee (Form 4506) from $57.00 per copy to $50.00. Requests should normally be filled within 75 days. Please note that tax return transcripts often suffice in place of return copies – and transcripts are available free. 

T.D. 9647 announced that, effective January 1, 2014, user fees charged for processing installment agreements and offers in compromise will increase. The fee for entering into an installment agreement will increase from $105 to $120 and the fee for restructuring or reinstating an installment agreement will increase from $45 to $50. The fee for processing an offer in compromise will increase from $150 to $186.  The fee for a direct debit installment will remain at $52 and low-income taxpayers will continue to pay $43 for a new installment agreement. Compromise offers based on doubt as to liability and offers from low-income taxpayers will continue to be exempt from a user fee.

The Alternative Dispute Resolution program is now available nationwide.  Fast Track Settlement processes are available for taxpayers involved in examinations by the Large Business and International, Small Business and Self-Employed, and Tax Exempt and Government Entities divisions. Fast Track Mediation is available to Small Business and Self-Employed taxpayers in examination and collection actions. Other resolution programs include Early Referral, Post Appeals Mediation, Arbitration, and Simultaneous Appeals/Competent Authority.

Revenue Procedure 2013-30 provides the exclusive simplified methods for taxpayers to request late election relief for S corporations, Electing Small Business Trusts, Qualified Subchapter S Trusts, Qualified Subchapter S Subsidiaries, and Corporate classification elections. Generally, the relief under the revenue procedure can be granted when the entity fails to qualify solely because it failed to file the appropriate election under Subchapter S timely with the applicable IRS Campus and all returns reported income consistently as if the election was in effect.

Publication 1635, Understanding Your EIN, is now electronic-only. 

Notice 2013-65 announces the special per diem rates effective October 1, 2013, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. The rates are the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. 

The Offer in Compromise pre-qualifier tool can be used to determine eligibility and calculate a preliminary offer amount.       

Time is running short, barring extension, to claim the Work Opportunity Tax Credit (WOTC). The WOTC applies to qualified veterans hired before Jan. 1, 2014. It also extends to targeted group members, other than qualified veterans, hired after Dec.31, 2011, and before Jan.1, 2014.

The IRS is continuing Voluntary Worker Classification Settlement Program (VCSP). The VCSP is a program that allows taxpayers to voluntarily reclassify their workers as employees for future tax periods for employment tax purposes. Under the VCSP, a taxpayer will pay 10 percent of the amount of employment taxes that would have been due on compensation paid to the workers being reclassified for the most recent tax year, calculated under the reduced rates of section 3509(a) of the Internal Revenue Code. In addition, the taxpayer will not be liable for any interest and penalties on the payment under the VCSP, and will not be audited for employment tax purposes for prior years with respect to the worker classification of the workers.

Kristen Hoiby, Stakeholder Liaison, Seattle

Kristen spoke about the Return Preparer Initiative.  She pointed out recent improvements made to Online PTIN accounts. "Manage My Account" is fully functional, allowing users to self-correct almost any field at any time. Users can now view completed continuing education programs reported by IRS-approved providers beginning with 2013 courses. PTIN holders who plan to take a full year off may inactivate their PTIN voluntarily and then reactivate the same number when they return to work.   

The 2014 PTIN renewal period has started.  All current PTINs will expire on Dec. 31, 2013.  The renewal fee is $63.  The first time PTIN application fee is $64.25.  To avoid processing slowdowns and inaccessibility don’t wait until late December.

Enrolled agents with social security numbers ending in 0, 1, 2, or 3 who did not renew for the 2013 cycle have had their enrollment placed in inactive status. Enrolled agents with social security numbers ending in 0, 1, 2, or 3 who have not renewed since the 2007 cycle have had their enrollment placed in terminated status. Renewal season is underway for enrolled agents with SSNs ending in 4, 5, or 6.  IRS will send emails to affected enrolled agents advising that renewal letters will be placed in their PTIN account secure mailbox.  The Detroit Office of Enrollment recently implemented a new toll-free number. The number is 855-472-5540 and is open from 7:30 to 5:00 Eastern Standard Time.  They may also be contacted via their mailbox epp@irs.gov. 

Kristen reminded that e-Service’s Disclosure Authorization (DA) and Electronic Account Resolution (EAR) applications have been removed.  Former DA users will need to complete Form 2848, 8821, or 706 and mail or fax it to the appropriate IRS location listed on the form’s instructions.  If faxing, practitioners are advised to use e-fax telephone numbers – Ogden CAF (855) 214-7522 or Memphis CAF (855)214-7519.  Please allow at least 4 days for the authorization to post to the IRS database before requesting a transcript through the Transcript Delivery System.  Former EAR users should call the Practitioner Priority Service at 1-866-860-4259 for help resolving account-related issues.

Kristen addressed closure and furlough, noting that IRS had issued an information release IR-2013-82 on October 22nd noting that IRS received 400,000 pieces of correspondence during the shutdown in addition to the 1 million items already being processed at the time of the shutdown. This release announces that the filing season will be delayed and not start before January 28th and no later than February 4th.  We have had no additional information since that time. The notice also advises that IRS will not start to process tax returns until the starting date, so there is no advantage in filing a paper return; an efiled return with direct deposit will be processed more quickly.

Issues & Status (written submission) 

A response was received to the national Issue Management Resolution System (IMRS) issue from Sherry Whah regarding a F2848 with a durable Power of Attorney submitted to the Practitioner Priority Service.  She was informed that the durable Power of Attorney would not be accepted since it was not done through the court system. Practitioner Priority Service stated that their advice was incorrect, apologized, and that education would be provided to assistors to accept any duly notarized POAs.

Roundtable & Comments

Sue Stockman, Stakeholder Partnership Education and Communication (SPEC)The Volunteer Return Preparation Program prepared 12,800 tax returns in Alaska.  Some practitioners volunteering for the VITA/TCE program may be eligible to earn continuing education credits.  Practitioners must certify at the advanced level in tax law before starting to volunteer.  Sue currently has two staff in Anchorage.  That number will drop to one with a January retirement. 

Julie Payne, Counsel

Notice 2013-77 provides that dividends and other distributions made by an Alaska Native Corporation to its shareholders are eligible for voluntary withholding.  Shareholders should submit Form W-4V to a Corporation. Until the Form W-4V is revised, shareholders may annotate a current Form W-4V.   Counsel is working closely with LITCs and pro bono attorneys to help taxpayers resolve their docketed Tax Court cases early. Letters to taxpayers who have no representative (or whose representative has not entered an appearance in the case) will be sent out in February. Julie has approximately 40 attorneys across SBSE, LB&I, and CT advising and representing the IRS in Washington and Alaska.     

Sonia Oen, Examination

Sonia expressed appreciation to the practitioner community for their cooperation in rescheduling audits disrupted by the shutdown.  Her staffing consists of 7 Revenue Agents in Anchorage.  She anticipates the next six month’s workload will be similar to the prior period. The Fast Track Settlement program has not been utilized on any Alaska examinations, but is available for any examinations meeting the criteria. 

John Williamson, Collection

John expressed gratitude to the practitioner community for their cooperation in dealing with the disruption caused by the shutdown. He has 5 Revenue Officers - four in Anchorage, one in Fairbanks. He has two tax examiners working cases from Alaska and Washington. No changes in staffing or workload are foreseen. 

Darlene Vanness, Taxpayer Assistance Center (written submission)

Due to the loss of all staff in Fairbanks the Anchorage TAC is sending one person every other week to cover the Fairbanks TAC. This arrangement will continue until further notice. The TACs will not be preparing tax returns any longer. Transcripts will need to be ordered online and EINs will need to be requested online.  

Kristia Douts, Taxpayer Advocate (written submission)

Besides calling the Local Taxpayer Advocate in Alaska at 907-271-6877 or faxing to 907-271-6157, virtual TAS help in Kenai is now available through a two-way high-definition video conferencing service located at the Kenai Community Library. 

Lisa Rogers

Lisa shared the case of withholding credited to a F1120S not being refunded to the entity.  Since there is no line on F1120S for withholding, IRS does not routinely look for a matching F1099.  The “overpayment & estimated payments line” is not intended for withholding.  Preparers should attach a copy of the F1099 to the electronically filed return along with an explanatory note to alert IRS of the credit.

Chuck Schuetze

Chuck commented on the voluntary withholding option being made available to ANC shareholders.

Next Scheduled Meeting

No date set for the May 2014 edition.





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