Issue Number: 2016-23
Inside This Issue
- New Federal Tax Law May Affect Some Refunds Filed in Early 2017
- IRS Helps Foreign Students and Other Foreign Taxpayers Obtain Refunds of Withholding Tax Reported on Form 1042-S
- IRS Relaunches Get Transcript Online with More Rigorous e-Authentication
- Interest Rates Remain the Same for the Third Quarter of 2016
- New Employer Shared Responsibility Provision Estimator is Now Available
1. New Federal Tax Law May Affect Some Refunds Filed in Early 2017
Effective in 2017, a new law requires the IRS to hold all Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) refunds until Feb. 15. This is likely to affect some returns submitted early in the tax filing season. The IRS encourages tax professionals to begin preparing for this change now. Planning is underway for a wider communication effort this summer and fall to alert taxpayers.
Back to top
2. IRS Helps Foreign Students and Other Foreign Taxpayers Obtain Refunds Requested on Form 1042-S
Following reports that some foreign students and other foreign persons have experienced difficulty getting refunds of tax withholding reported on Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, the IRS is taking steps to release the refunds.
Back to top
3. IRS Relaunches Get Transcript Online with More Rigorous e-Authentication
The IRS relaunched its Get Transcript Online service with a more rigorous e-authentication process expected to significantly increase protection against identity thieves. The enhanced authentication process also provides a foundation for future IRS self-help services.
You can learn about the Get Transcript Online tool and its security enhancements in this new YouTube video.
Back to top
4. Interest Rates Unchanged for the Third Quarter of 2016
Interest rates will hold steady for the calendar quarter beginning July 1. The rates will be:
- four (4) percent for overpayments [three (3) percent in the case of a corporation];
- four (4) percent for underpayments;
- six (6) percent for large corporate underpayments; and
- 1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.
Back to top
5. Employer Shared Responsibility Provision Estimator is Now Available
The Taxpayer Advocate Service announced a new Employer Shared Responsibility Provision (ESRP) Estimator designed to help a business determine:
- Its number of full-time employees, including full-time equivalent employees (FTEs)
- Whether it might be considered an applicable large employer (ALE), and
- If it is an ALE, the maximum amount of the potential liability for the employer shared responsibility payment that could apply if the employer fails to offer coverage to the required number of full-time employees and their dependents.
Tax professionals can use the tool to help educate business clients about potential Employer Shared Responsibility requirements.
Back to top
Thank you for subscribing to e-News for Tax Professionals an IRS e-mail service.
If you have a specific concern about your client's tax situation, call the IRS Practitioner Priority Service 1-866-860-4259.
This message was distributed automatically from the mailing list e-News for Tax Professionals. Please Do Not Reply To This Message
To subscribe to or unsubscribe from another list, please go to the e-News Subscriptions page on the IRS Web site.
|
