February 2012 Newsletter
Marja Beltrami
President's Message
Why am I a member of the Alaska Society of CPA’s? That is a question I poised to the Board of Directors at our first meeting last year. I asked each Director to write a two or three sentence response that would be published in our newsletter, one each month. Maybe you have seen them, and maybe you have related to one or two. I would like you to consider writing down a two or three sentence response to that question and email them to me (mbeltrami@beltramicpas.com) and Linda (akcpa@ak.net. If we get enough responses I would love to publish them in next month’s newsletter. So get crackin’.
I believe it would be good for the Board of Directors to hear those responses actually. Because it would enlighten us as to what is important to members; what is of value to you.
Here’s my answer to; So why am I a member? What I can say immediately is I am GLAD I am a member. This membership brings good and useful information into my practice. From a network of highly intelligent individuals, to clear effective connections, to CPE, accounting software, practical tools, other useful memberships, friendships, and courage. All of these things have been provided me over the years. It’s been money well spent.
Initially, I found myself intimidated by the members of this organization. This society is made up of intelligent, creative and bold individuals. This society is about industry leadership. I would say that all our members are leaders in our industry. You may not think you are, but because you have ventured into membership in the first place, I believe you are a leader. I think we could all use some polishing here and there but, we all are interested enough in our industry in the first place to join. Your membership alone sets you apart and shows your interest and concern in our industry. Your involvement may increase or wane from time to time, but you are a leader. A leader in your firm to go out and explore, to bring back and lead others in your firm to best practices, concerns on the political front, and to prepare yourself for client support to bring them the information they seek. A s a leader is you have sought truth and knowledge, and your firms and this organization are the richer for it.
So I ask you again, why are you a member? Send us two or three sentences. Let’s see why more of us are members and encourage each other and others not yet members to embrace the benefits of membership!
Now for a quick update from the AICPA January Board meeting:
- On January 31, the AICPA will launch the CGMA. (Certified Global Management Accountant) There will have been a large webcast promoting this new designation that will air from Europe to the US and on to Malaysia. If you are a Certified Management Accountant and/or are interested in this new designation, check it out!
- There were over 7,700 letters submitted from supporters of PCFR! (Private Companies Financial Reporting) The AICPA Board is optimistic that the Blue Ribbon Panel report will be incorporated into the new FASB report. Let’s keep our fingers crossed!
- The IRS request for finger printing of all tax preparers has been exempted for CPA’s. However staff has not been exempted. It is also believed by the AICPA board that this whole issue will eventually go by the wayside.
Election Results
Congratulations to the newly elected and continuing Board of Directors.
Newly elected:
Amy Cooper, President elect
Lance Bodeen, Treasurer
Cathleen Hahn, Secretary
Rita De La Torre, Director
Joshua McIntyre, Director
Steven Pence, Director
Continuing their term for 2012-2013
Bethe Davis, President
Marja Beltrami, Past President
Jason Bontrager, Director
Bridget Lujan, Director
Rebecca Martin, Director
Also, congratulations to Tracy Hartung who was elected to serve as a director of the Hagelbarger Memorial Scholarship Fund.
"Season of Meaning"
Bridget Lujan is a Director on the AKCPA Board, and she is a partner with the Juneau firm, Elgee Rehfeld Mertz.
Much like how the “holiday season” evokes a wide range of emotional responses including those of joy and peace, to dread or resentment; from excitement and cheer to sentiment and sadness, the words “tax season” can trigger similar autonomic responses.
Among other things, I am a CPA, a wife and a mother. Tax season for me is invigorating, exciting and (even with extensions and varying fiscal years ending), it’s a sprint to the finish line. I’m fortunate to have a husband, who year after year, assumes the burden of running our household during tax season. And he does it, essentially as a single parent, who by the way also has a full-time job. Does he do things the way I’d like him to? Sometimes. But let’s face it, beggars can’t be choosers. Yes, to him, tax season is the time when he goes above and beyond to keep things running semi-smoothly while I am MIA. I fail to understand why he signed on for that all those years ago – I suppose it’s a testament to his love for me. Or, more than likely he knows that later when he drops hints about the four-wheeler, barbeque grill, power tool, or electronic thing-a-ma-jig he’s admiring, or the hunting trip he’s planning, that I’ll eagerly agree he has more than earned such rewards. It’s no coincidence that every truck we’ve owned was purchased in the month of April, at my weakest moment, no doubt. I haven’t asked my husband how he feels about “tax season” – I don’t want to know. I’m fairly certain he would say that he hates it. This is a G-rated newsletter, so I’ll just leave it at that, but here’s a shout out to all those CPA-spouses who can relate to busy season, tax or otherwise.
On the other hand, to my children, “tax season” is that place in the abstract that mommy goes for a few months, and the reason she can’t watch dance class or go to Brownies, or chaperone field trips. They identify it as the time of year that “we get McDonald’s for dinner” (which infuriates me, hence the “sometimes” comment, above). Yes it’s true. Try as I might to strike that mythical work-life balance, I confess that on occasion I’ve shuffled, if not compromised my priorities during tax season. I’ve forgotten to check the homework, I’ve pawned my kids off on generous and willing friends for rides to and from activities, and I’ve sent them to school a little bit sick, and crossed my fingers that the inevitable call from the school nurse wouldn’t come. Of course it did. I’m quite certain all families with working parents have these same challenges. It makes life exciting, rewarding, and fun. So why does “tax season” warrant any more emphasis than other professions? These words are unique because they mean something to everyone in our society. Depending on who you are they carry more or less significance in your life.
To some of our clients, the thought of compiling their tax data is frightening, frustrating, confusing and disorganized (and by the way this should only ever be the case the FIRST year they are your client. After that you will have trained them out of their bad habits and that negativity, right?). They are terrified of any correspondence from the IRS. There is occasionally discord between spouses surrounding tax issues. It is our job to counsel them. Taxes are not to be feared, but rather embraced, and appropriately planned for.
Some of our other clients are sophisticated business people. They seek our advice throughout the year, and we are part of their team of trusted advisors. They’ve paid attention to tax legislation. They want to take advantage of whatever new or re-wrapped “business incentives” Congress has put forth. Tax season to them is just part of the process. They want to minimize tax liability, and rightly so. They expect that we will have the answers on how to do that. There is no fear.
For those taxpayers that don’t use a CPA for their tax needs; (I say ‘needs’ as a not-so-subtle reminder that there’s more to what we do than return preparation) they feel confident about tax season. These are intelligent, savvy people who will never consult a professional, but rather fire up TurboTax and commence preparing their own returns. They trust themselves to get it right - to interpret the tax code correctly – and they just may…for a while…well, at least the forms will be filled out.
Employees of CPA firms likely have mixed emotions about tax season. Some may be saving up for their first home, or have student loans to repay, and desperately appreciate all of the overtime hours. Others may be new parents or part-time students, or CPA candidates who are already sleep deprived, and struggling mightily to keep their heads above water. Working late or on weekends for these individuals can cause productivity impeding stress. Perhaps they don’t appreciate the long hours. But it would be a mistake to discount these employees, or underestimate their commitment or work ethic. These professionals are hard workers, they have goals, and they’re trying to do it all. Still other employees have been at it so long that it doesn’t matter whether it’s tax or any other season. They show up to work every day, they are highly productive despite the escalating stress around them. They are competent, consistent, methodical and reliable. These long-time employees recognize the reward from putting forth a quality work product and the employers deeply appreciate their loyalty.
Then there’s everybody else. The software vendors and account reps, the research reps, and tech support people that sell us the tools we need to serve our clients. These are equivalent to retailers during the holiday season. They love tax season because they can save the day with the newest, biggest and best product to make one practitioner better than the next. They did their job last fall, they sold you a product. They made their quota, tax season is good. Let’s not forget the IT guy that answers his phone at midnight because he knows someone’s down and it’s his job to prevent or eliminate down time – and not just between the hours of eight and five. How hard is it for him to not let that call go to voice mail? Be really nice to those IT folks. We need them. Badly.
Even the U.S. postal workers know what tax season is. I’m not just referring to the open-til-midnight post office crew that’s there when that last individual runs in to timely file their return. That’s nearly an obsolete practice anymore, since the advent of e-filing. No, I’m talking about the mail carrier who brings all the W-2s and other year-end statements. The consolidated 1099s from the broker, the corrected consolidated 1099s from the broker…the revised, corrected consolidated 1099s from the broker that may or may not be a final copy. I happened to be out in the front office the first week in January and overheard, “These must be your organizers, huh? I guess it’s that time of year”. The postman then heaved the several large mail receptacles, filled to the brim with those green and white packets, onto his delivery cart and hauled them away for us. Yes. It’s that time of year.
Whatever emotion you might be feeling about tax season, keep in mind: It’s our livelihood. It’s what we do. Have passion about what you do, do it well. When it’s over, go home to your families or get outside in the sunshine. Or both. Wishing you many happy returns!
Alaska State Board of Accountancy Report
Melody Schneider, Board Liaison
January 23rd and 24th the Board of Public Accountancy met in Juneau. The Board discussed the Executive Administrator position and continues to move toward filling the position.
Jeff Johnson was elected as Chair of the Board. Elaine Williamson was re-elected as Secretary/Treasurer.
It was also announced that Max Mertz, Carla Bassler, Elaine Williamson, and Jeff Johnson have been appointed to NASBA Committees.
A Public member term and CPA term both expire March 1, 2012
The next meeting of the Board of Public Accountancy will be held May 3rd and 4th in Anchorage. The regional meeting of NASBA will be in Anchorage June 27-29.
2012 AKCPA Annual Meeting
Save the date!
Plan to join us for this year’s annual meeting and 8 hours of CPE with one of the top ten recommended consultants in accounting!
May 31 – June 1, 2012
Land’s End Resort
Homer, Alaska
Make your reservations early by calling
1-800-478-0400 or 907-235-0400
Please identify yourself as part of the Alaska Society of CPAs to receive the group rates.
Jennifer Wilson – Convergence Coaching-
“Helping leaders achieve success”
Striving to Be an Inspiring, Accountable and Difference Making Leader
Driving growth in your organization requires a willingness to change your own behaviors and lead by example. Attend this workshop to enhance your self-awareness, focus, leadership, management and communications skills needed to achieve success. When your existing and future leaders attend this interactive full-day workshop, they will learn tangible methods to enhance their leadership, accountability and conflict management skills. We will:
· Enhance your ability to manage change within your firm and your life by understanding the psychology and mechanics of change, how to adapt to continuous change yourself, and methods for moving others you’re leading along the change adoption curve
· Explore the 20 most important leadership attributes and your strengths and weaknesses within them
· Discuss methods for taking ownership of your clients, projects, and initiatives
· Learn to effectively delegate when assigning ownership to others
· Discuss different strategies for being accountable and holding others accountable
· Identify your current conflict management style
· Understand the underlying causes of conflict situations
· Develop a strategy for handling conflict situations more strategically and with more success
· Use a simple feedback methodology you can use with others
Leave this thought-provoking session with the tools you can implement in your work and home life, share with others and put into action right away!
Convergence Coaching, LLC
Jennifer Wilson
Jennifer Wilson is a co-founder and partner of ConvergenceCoaching, LLC. Named as one of Accounting Today’s 100 Most Influential People in Accounting, INSIDE Public Accounting’s Top 10 Most Recommended Consultants, and CPA Technology Advisor’s Top 25 Thought Leaders in public accounting, Jennifer has worked in both the public accounting and IT development sectors before co-founding ConvergenceCoaching, LLC.
Dear Alaska Tax Practitioner,
As the IRS Stakeholder Liaison area manager for Alaska, I want to thank you for your past support and ask for your continued partnership with your local stakeholder liaisons and me. SL is proud to be in our sixth year as the practitioners’ gateway to the IRS. We have had a busy year, holding practitioner events, conducting national webinars, and establishing web-based tax centers.
Practitioners provided our local SLs with many suggestions on how to improve IRS systems. We actively worked on these suggestions and were able to implement many of them. This partnership strengthens our mutual commitment to taxpayer compliance.
SL is committed to getting you the information you need. While we do not answer tax law questions or have access to your clients’ tax accounts, we can steer you in the right direction.
How SL can help you navigate the IRS
Be assured that IRS.gov has more than just forms and publications. You’ll find the latest news, online tools, research services, guidance and contact information.
The best way to stay up to date with the IRS is to take advantage of our free products and services. Subscribe to e-News for Tax Professionals for weekly news briefs. We also offer tools so visitors to your website can link directly to “tax centers” and other “widgets”, making it easy to find frequently-used web pages.
We make it easy to get up-to-date information from IRS experts. Join our free national webinars, or check out IRS Live where tax professionals discuss tax topics with IRS leaders. Submit questions during the original airing or visit our IRS Video Portal to view archived webinars, video clips of tax topics, and audio archives of national phone forums.
Don’t forget the IRS.gov Spanish counterpart IRS en Español and our new Multilingual Gateway for translated information. If you need a translator when meeting with IRS employees just ask for an interpreter. Over-the-Phone Interpreter Services (OPI) is available when taxpayers have limited English proficiency.
How to keep up-to-date with the new return preparer regulations
David R. Williams leads the new IRS Return Preparer Office implementing the new requirements for tax return preparers. Visit our Web page for New PTIN Requirements for Tax Return Preparers to keep current on implementation. There’s also Frequently Asked Questions and Answers for PTIN. For additional PTIN information, contact the IRS Tax Professional PTIN Information line at 877-813-7846, available Monday-Friday, 8 a.m. - 5 p.m. CST.
Check out Many Tax Return Preparers Required to Use IRS e-file Beginning in 2011 for information on the new e-file rules and learn how to become an authorized e-file provider.
How you can help your clients and colleagues
Tell us when you see a problem or have a suggestion to improve our processes. We introduced the Issue Management Resolution System (IMRS) four years ago and have received more than a thousand IMRS issues. Check out some of the successes in our IMRS report on IRS.gov.
There are many ways you can assist us to further our partnership. Help us reach more practitioners by hosting joint events or webinars. Include IRS information in your newsletters or post an IRS tax center or web link on your website. You can even volunteer to teach a Small Business Tax Workshop in your community and share what you learn.
Finally, stay in touch with your local SL. You may also contact me directly at 206-220-5659 or Kristen.A.Hoiby@irs.gov, or if you need assistance for Alaska, contact an SL below.
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Mike Cvitkovic |
Greg Thompson |
Kari Gilje |
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Phone: 206-220-4385 |
Phone: 206-220-5309 |
Phone: 206-220-5469 |
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Fax: 206-220-4391 |
Fax: 206-220-4391 |
Fax: 206-220-4391 |
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Email: Michael.E.Cvitkovic@irs.gov
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Email: Gregory.A.Thompson@irs.gov
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Email: Kari.S.Gilje@irs.gov |
Filing season can be a challenging and stressful time, but together we can make it easier. Use our free tools, products and services; and raise your issues and concerns through your local stakeholder liaison.
Sincerely,
Kristen Hoiby
Stakeholder Liaison Area Manager, Northwest Area
IRS Contact List for Practitioners
NOTE: Local Time – Alaska (AK) and Hawaii (HI) follow Pacific Time (PT)
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Title |
Telephone Number |
Hours of Operation |
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Practitioner Priority Service |
866-860-4259 |
M-F, 8 a.m. – 8 p.m., local time |
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IRS Tax Professional PTIN Information Line |
877-613-7846 |
M-F, 8 a.m. – 5 p.m., CT |
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IRS Tax Help Line for Individuals |
800-829-1040 |
M-F, 7 a.m. – 10 p.m., local time |
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Business and Specialty Tax Line |
800-829-4933 |
M-F, 7 a.m. – 10 p.m., local time |
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e-Help Desk (IRS Electronic Products) |
866-255-0654 |
M-F, 6:30 a.m. – 6 p.m. CT (non-peak) Check out peak hours. |
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Refund Hotline |
800-829-1954 |
Automated Service available 24/7 |
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Federal Management Service – FMS – Treasury Refund Offset Information |
800-304-3107 |
M-F, 7:30 a.m. – 5:00 p.m., CT |
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Forms and Publications |
800-829-3676 |
M-F, 7 a.m. – 10 p.m., local time |
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National Taxpayer Advocate’s Help Line |
877-777-4778 |
M-F, 7 a.m. – 10 p.m., local time |
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Local Taxpayer Advocate – Anchorage |
907-271-6877 |
M-F, 8 a.m. – 4:30 p.m., local time |
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Centralized Lien Payoff |
800-913-6050 |
M-F, 8 a.m. – 5 p.m., local time |
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Centralized Bankruptcy |
800-973-0424 |
M-F, 7 a.m. – 10 p.m. ET |
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Telephone Device for the Deaf (TDD) |
800-829-4059 |
M-F, 7 a.m. – 10 p.m., local time |
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Electronic Federal Tax Payment System (EFTPS) – for Businesses |
800-555-4477 |
Automated Service and Live Assistance available 24/7 |
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Electronic Federal Tax Payment System (EFTPS) – for Individuals |
800-316-6541 |
Automated Service and Live Assistance available 24/7 |
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Government Entities (TEGE) Help Line |
877-829-5500 |
M-F, 7 a.m. – 5:30 p.m. CT |
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Forms 706 and 709 Help Line |
866-699-4083 |
M-F, 7 a.m. – 7 p.m., local time |
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Automated Collection System (ACS) (Business) |
800-829-3903 |
M-F, 8 a.m. – 8 p.m., local time |
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Automated Collection System (ACS) (Individual) |
800-829-7650 |
M-F, 8 a.m. – 8 p.m., local time |
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Tax Fraud Referral Hotline |
800-829-0433 |
Automated Service available 24/7 |
|
Employer Identification Number (EIN) |
800-829-4933 |
M-F, 7 a.m. – 10 p.m., local time |
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Excise Tax and Form 2290 Help Line |
866-699-4096 |
M-F, 8 a.m. – 6 p.m. ET |
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Identity Protection Specialized Unit |
800-908-4490 |
M-F, 8 a.m. – 8 p.m., local time |
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Information Return Reporting |
866-455-7438 |
M-F, 8:30 a.m. – 4:30 p.m. ET |
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ITIN Program Office (Form W-7 and Acceptance Agent Program – Form 13551) |
404-338-8963 |
Message Line: 24/7 hour operation |
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IRS Federally Declared Disaster or Combat Zone Inquiries Hotline |
866-562-5227 |
M-F, 7 a.m. – 10 p.m., local time |
Getting Ready for the 2011 Tax Filing Season
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Communications Tax Information for Tax Professionals – Information Center for tax professionals. Follow the Nationwide Tax Forums on Facebook! IRS e-News for Tax Professionals: Subscribe to the IRS e-newsletter for tax pros IRS Video Portal - Find video clips of tax topics, archived versions of live panel discussions and webinars, as well as audio archives of national phone forums. Outreach Corner – Subscribe to have access to ready-to-use articles, widgets, audio/video materials, and publications/flyers for you to use. QuickAlerts “More” e-file Benefits for Tax Professionals – Subscribe to receive “up-to-the-minute” information on e-file events. |
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Contacting Us Your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state. |
Tools for You Want to find the pages your need on IRS.gov more easily? Basic Tools for Tax Professionals has a comprehensive list of what you need to help prepare your clients’ tax returns and information on representation. Electronic IRS Online Tools will help you and your clients conduct business quickly and safely – electronically. |
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Help Us Resolve Problems With your help, we have identified hundreds of large and small issues that were getting in the way of efficient tax administration. Continue to contact us when you or your clients notice something isn’t working. The Issue Management Resolution System gets to the bottom of the problem. Check out some of the issues practitioners have raised, what we’ve done to resolve them and what we are currently working on. |
Want quick access to more information? Click on the links below.
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Small Business/Self Employed Tax Center
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Members in the News!
Elgee Rehfeld Mertz, LLC Ranks 13th Among Small Accounting Firms Nationwide
Juneau, AK, USA – Monday, January 23, 2012
Juneau CPA firm Elgee Rehfeld Mertz, LLC ranks 13th among small firms nationwide according to the 2011 Best Accounting Firms to Work For, an annual list compiled by the magazine Accounting Today and Best Companies Group.
Elgee Rehfeld Mertz received notification in the fall of 2011 that they had made the list of the top 100 firms, but recently learned that they were ranked 13th among small firms, defined as those with 15 to 49 employees. Elgee Rehfeld Mertz was the only Alaskan accounting firm of any size to make the list, and topped the list of small firms for annual number of training hours per employee. Partner Bridget Lujan, CPA, remarked, “We pride ourselves on our commitment to our staff’s professional development through continuing education.”
The Best Accounting Firms to Work For award program was designed to identify and honor the best places of employment in the accounting field. Rankings are determined through the combined scores of a survey measuring employee experience at each nominated firm, as well as an evaluation of workplace policies, practices, philosophy, systems and demographics.
Elgee Rehfeld Mertz, LLC is the largest accounting firm in Southeast Alaska, providing a full range of attest, compliance, accounting and advisory services to over 1,000 clients in both the public and private sectors. By playing an integral yet independent role in their clients' transactions, Elgee Rehfeld Mertz, LLC has built a reputation as a leader in the field of accounting.
IRS Updates and News Releases
Sample Statement for Client Opting Out of Mandatory E-file
Rev-Proc 2011-25, Section 9, contains sample language (below) you may use when a client elects to have their return filed on paper instead of electronically. You are required to document the clients choice to file a paper return by having the client sign and date a statement of election not to have their return electronically filed and keep the statement in the client file.
My tax return preparer [INSERT PREPARER’S NAME] has informed me that [INSERT s/he] may be required to electronically file my [INSERT TAX YEAR] individual income tax return [INSERT TYPE OF RETURN: Form 1040, Form 1040A, Form 1040EZ, Form 1041, Form 990-T] if [INSERT s/he] files it with the IRS on my behalf (e.g., submits it by mail to the IRS). I understand that electronic filing may provide a number of benefits to taxpayers, including an acknowledgement that the IRS received the returns, a reduced chance of errors in processing the returns, and faster refunds. I do not want to have my return electronically filed, and I choose to file my return on paper forms. I will mail or otherwise submit my paper return to the IRS myself. My preparer will not file or otherwise mail or submit my paper return to the IRS.
Revised Form 2848, Power of Attorney and Declaration of Representative
The revised Form 2848 (PDF) and instructions issued in October 2011 include several changes of interest to tax-exempt organizations including:
- a new requirement that practitioners enter their license, bar or enrollment number
- a new designation for registered tax return preparers
- a new location for the check box authorizing the IRS to send notices to the representative
PTIN Expiration Notices
We are in the process of issuing PTIN expiration notices to those individuals who had 2011 PTINs but have not renewed them for 2012. The notices began last week and will be issued on a staggered schedule through Jan. 30. For individuals with online accounts, the notices are delivered to their secure mailbox and an email is sent advising the recipient to check their mailbox. For people without an online account, the notices are sent by regular mail.
Beginning Feb. 21 anyone with an expired PTIN is removed from the list of valid PTIN holders until they renew. Any returns they file will be processed, but they can expect to be contacted by the IRS if they continue filing returns without renewing. We are still processing renewals and will continue to do so after Feb. 21.
PTIN Information Line
Primary Toll-Free: 877-613-PTIN (7846)
Toll Number for International Callers: +1 915-342-5655
Hours of Operation: Monday - Friday, 8:00 a.m. - 5:00 p.m. (CST)
Refund Cycle Chart
The IRS Tax Year 2011 Refund Cycle Chart
IRS Launches New Exempt Organization Online Search Tool
The IRS today launched a new online search tool, Exempt Organizations Select Check, to help users more easily find information about tax-exempt organizations. Users can now go to one location on IRS.gov to search for:
- Organizations eligible to receive tax-deductible contributions (formerly listed in electronic Publication 78). Users may rely on this list in determining deductibility of contributions, just as they did with Pub. 78
- Organizations whose federal tax exemption automatically revoked for not filing a Form 990-series return or notice for three consecutive years (Auto-Revocation List)
- Form 990-N (e-Postcard) filers and their submissions
EO Select Check offers improved search options. Users can now look for organizations eligible to receive deductible charitable organizations (Pub. 78 data) by Employer Identification Number (EIN), which wasn’t possible previously. And this data is now updated monthly instead of quarterly.
In addition, the Auto-Revocation List may now be searched by EIN, name, city, state, ZIP code, country, exemption type, and revocation posting date, rather than only by state.
The EO Select Check site also contains search tips that offer suggestions on how to use the search application.
E-services Re-Engineering Results in Minor Changes to Functionality of Transcript Delivery System (TDS)
Please be advised that the Internal Revenue Service is updating the Transcript Delivery System (TDS) with an implementation date of January 9, 2012. The new TDS will have an updated look, feel and functionality.
The new TDS will:
- Improve delivery time of transcripts
- Increase capacity to compensate for the growing demand of the product
- Reduce downtime associated with maintenance problems
Highlights of these changes in the look, feel and functionality are included in the e-services On-line Tutorial located on the e-services Registration Services page. These changes may present a learning curve for some users. However, we are certain the improvements will be well worth the minor inconvenience as we strive to offer the best possible service.
Identity Theft Information
Your client may contact the Identity Protection Specialized Unit at 1-800-908-4490. The IPSU will assist taxpayers that are, or may become, victims of identity theft. There are also several new items to help taxpayers, including special tips on IRS.gov and YouTube videos as well as a large amount of helpful information for taxpayers on a special identity theft section of IRS.gov. If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov.
Fed State and Local Government FSLG Newsletter
To read the January 2011 Edition, please visit the Current Edition of the FSLG Newsletter page in the Government Entities section of the IRS.gov Web site. If you have a specific question about exempt organizations, call FSLG Customer Account Services at 1-877-829-5500.
Financial Crimes Enforcement Network Annual Report
FinCEN Issues Annual Report for FY 2011
Offshore Voluntary Disclosure Program Reopens
The Internal Revenue Service reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes. The IRS also announced the collection of more than $4.4 billion so far from the two previous international disclosure programs.
National Taxpayer Advocate Delivers Annual Report to Congress
National Taxpayer Advocate Nina Olson released her annual report to Congress this week, identifying an expanding IRS workload and declining resources as the most serious problem facing taxpayers.
Read the News Release or full report for more information.
Revised Reporting Requirement for Foreign Agricultural Workers
The revised Form 943 Instructions, (on the first page. lower left corner - "Compensation paid to H-2A visa holders") explains that this type of income is now reported on a Form W-2 instead of a Form 1099-MISC. You will find more information on the updated page on irs.gov concerning the taxation of H-2A Foreign Agricultural Workers.
Innocent Spouse Relief
The Internal Revenue Service released new proposed guidelines designed to provide relief to more innocent spouses requesting equitable relief from income tax liability.
IRS YouTube Video: Innocent Spouse: English | Spanish | ASL
Podcast: Innocent Spouse
FY2011 Enforcement Results
The IRS Enforcement and Service Results for FY 2011 detail audit, collection and taxpayer service activities.
Revised Pub 15 (Circular E) now available
Pub. 15, (Circular E) Employer's Tax Guide, is updated to reflect the recent legislation temporarily extending the payroll tax cut for employees.
January 2012 IMRS Hot Issues
Check out January's Hot Issues report from the Issue Management Resolution System.
Enrolled Agent Renewal Processing Update
- Renewals for SSNs ending in four, five or six - All correct and complete Forms 8554 submitted before November 28, 2011, have been processed and cards issued. All remaining Forms 8554 require further research.
- Renewals for SSNs ending in seven, eight, nine, or none - We will begin processing these no later than January 30, 2012.
- New applications on Forms 23 - We are working overtime to process the backlog created by the delayed renewal cycle. The Form 23 inventory should be current and back to the normal 60 day response time by January 30, 2012.
- Phone and email delays - We have diverted the majority of our resources to processing renewals and applications. We're attempting to answer all contacts as they come in, all phone and email inquiries will be worked by January 30, 2012.
Fee Increase – Enrolled Agent Exam
Effective Jaunuary 5, 2012, the fee to take the Special Enrollment Examination to become an Enrolled Agent increased from $101 to $105 per part. The amount has been updated on IRS.gov and in the SEE Candidate Information Bulletin.
Updated Tax Gap Estimates
The Internal Revenue Service has released a new set of tax gap estimates for tax year 2006. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time.The new tax gap estimate represents the first full update of the report in five years, and it shows the nation’s compliance rate is essentially unchanged from the last review covering tax year 2001.
The following table summarizes the new estimates, as compared to the 2001 estimates, along with the total tax liabilities in each year.
Technical Guidance
Notice 2012-09 restates and amends the interim guidance on informational reporting to employees of the cost of their employer-sponsored group health plan coverage initially provided in Notice 2011-28, 2011-16 I.R.B. 656, required under as part of the Affordable Care Act to provide useful and comparable consumer information to employees on the cost of their health care coverage.
Revenue Ruling 2012-05 provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code and the Income Tax Regulations, thereunder, for the 2012 plan year.
Notice 2012-08 provides a proposed revenue procedure that would update Rev. Proc. 2003-61, 2003-2 C.B. 296, which provides guidance regarding equitable relief from income tax liability under section 66(c) and section 6015(f) of the Internal Revenue Code.
Revenue Procedure 2012-15 updates Rev. Proc. 2011-13, 2011-3 I.R.B. 318 and identifies circumstances under which the disclosure on a taxpayer’s income tax return with respect to an item or a position is adequate for the purpose of reducing the understatement of income tax under section 6662(d) of the Internal Revenue Code and the purpose of avoiding the tax return preparer penalty under section 6694(a).
Revenue Ruling 2012-7 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 § 1274.
Make sure to Express Your Love this February
By Rebecca Martin
With tax season in full swing for most of us, it’s easy to forget to express our gratitude and love for those who support us during this stressful time. With the support of our families, significant others, staff accountants, and administrative support staff, we are able to achieve our tax season goals.
Small gestures can make a big difference to your support system this tax season. Try some of these strategies: Come home when you say you’ll be home; bring flowers to the office to brighten the dreary winter days; order lunch in and let the phones go to voicemail while you reconnect with your staff over a quick lunch; schedule a massage day at the office where you hire someone to come in for quick 15 minute neck massages; keep your kitchen stocked with healthy drinks and snacks; be flexible if your staff needs to come in a little late or leave a little early; have dinner at home at least once a week; or, join your colleagues for one of our bi-weekly CPA Wine & Whine events.
Take a moment this February in honor of upcoming Valentine’s Day to say “thank you.”
