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Issue Number:  2017-3

Inside This Issue

1. New on IRS.gov
2. IRS Reminds International Taxpayers of Tax Obligations; Clarifies Rules for Tax Withholding Agents
3. IRS Clarifies Form 1042-S Requirements for Withholding Agents; Outlines Common Errors
4. Receive Letter 5903? Additional Staff Coming Soon to Revalidate Your Identity for E-Services
5. IRS Seeks Applications for the Electronic Tax Administration Advisory Committee
6. Technical Guidance

• 2017 Inst. 941, Instructions for Form 941, Employer's Quarterly Federal Tax Return
• 2017 Form 941, Employer's Quarterly Federal Tax Return
• Form 941 (Schedule B), Report of Tax Liability for Semiweekly Schedule Depositors
• Inst. 941 (Schedule B), Instructions for Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors
• 2017 Inst. 941 (PR), Instrucciones para el Formulario 941-PR, Planilla para la Declaracion Federal TRIMESTRAL del Patrono
• 2017 Form 941 (PR),  Planilla para la Declaracion Federal TRIMESTRAL del Patrono
• Inst. 941 (PR) (Schedule B), Instrucciones para el Anexo B (Forma 941-PR), Registro de la Obligacion Contributiva para los Depositantes de Itinerario Bisemanal
• Form 941 (PR) (Schedule B), Registro de la Obligacion Contributiva para los Depositantes de Itinerario Bisemanal
• Form 14095, The Health Coverage Tax Credit (HCTC) Reimbursement Request Form 2017
• 2017 Inst. W-3 (PR), Instrucciones para el Formulario W-3PR, Informe de Comprobantes de Retencion
• Inst. 1042-S,  Instructions for Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding
• Pub. 5187, Affordable Care Act: What you and Your Family Need to Know
  2017 Form W-2VI, U.S. Virgin Islands Wage and Tax Statement (Info Copy Only)
• 2016 Form W-2VI, U.S. Virgin Islands Wage and Tax Statement (Info Copy Only)
• 2017 Form W-2GU, Guam Wage and Tax Statement (Info Copy Only)
• 2016 Form W-2GU, Guam Wage and Tax Statement (Info Copy Only)
• 2017 Form W-2AS, American Samoa Wage and Tax Statement (Info Copy Only)
• 2016 Form W-2AS, American Samoa Wage and Tax Statement (Info Copy Only)
• 2017 Pub 15-A, Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15)

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The IRS reminds non-U.S. citizens who may have taxable income, such as international students and scholars who may be working or receiving scholarship funds, that they may have special requirements to file a U.S. tax return.

Also, withholding agents – such as payroll professionals or universities – that accurately filed Forms 1042-S help speed any refunds due to their non-U.S. citizen taxpayers. Prevent refund delays by avoiding errors on forms or returns.

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The IRS made a series of changes and clarifications to the Form 1042-S, and the accompanying instructions, in an effort to assist withholding agents to more accurately report income and withholding information relating to payments made to non-resident alien recipients.

Withholding agents are required to complete Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, for payments made to non-resident aliens.

Many of the clarifying changes underscore the need for exact reporting of the recipient’s name on all copies of Form 1042-S, and for identical information to be reported on all copies of Form 1042-S.

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If you received Letter 5903, e-Services Revalidation, you must revalidate your identity. For a limited time, the e-Services Help Desk will soon have additional staff available to only assist tax professionals who need to revalidate their identity to have their e-Services registration account reinstated.  

Extra e-Services Help Postponed Due to Weather

On Friday March 10, we announced in e-News for Tax Professionals that extra assistance would be available for Letter 5903 recipients who must revalidate their identities. However, due to a major snow storm forecasted for the East Coast, we will not have the additional assistors on staff the week of March 13 - 17 to assist Letter 5903 recipients. We will reschedule to allow those e-Services users to meet their requirements. Look for updates in e-News for Tax Professionals, Quick Alert and emails from your IRS outreach contacts. Thanks for your patience.

E-Services registration accounts were suspended for tax professionals who received Letter 5903 and failed to revalidate their identities within the required 30-day time period. The IRS urges tax professionals who need to revalidate their identity to do so now when extra staff is on hand and not wait until there is an emergency need to access their e-Services accounts.

Letter recipients must revalidate even if they are infrequent users of e-Services or its tools.  As a reminder Authorized IRS e-file Providers must ensure the IRS has current information by reviewing and updating their IRS e-file application within 30 days of a change which requires access to your e-Services registration account. Letter 5903 was issued to those tax professionals who have access to sensitive taxpayer data through e-Services and who have accessed their accounts in the past year. This is part of the IRS’ ongoing effort to strengthen security around certain self-help tools on IRS.gov and better protect taxpayer and tax professional data.

Find more information here.  

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The IRS is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC).

The ETAAC provides an organized public forum for discussion of electronic tax administration issues such as prevention of identity theft and refund fraud in support of the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. ETAAC members will work closely with the Security Summit, a joint effort of the IRS, state tax administrators and tax software industry to fight electronic fraud.

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Notice 2017-20 extends the period for an employer that provides a qualified small employer health reimbursement arrangement (QSEHRA), which was added to the Internal Revenue Code by the 21st Century Cures Act (Cures Act), to furnish an initial written notice to its eligible employees regarding the QESHRA. The period is extended from March 13, 2017 (90 days after the Cures Act was enacted) to at least 90 days after additional guidance regarding the contents of the QSEHRA notice is issued. The notice also provides transition relief from penalties for failure to furnish the written notice until after further guidance has been issued.

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