e-News for Tax Professionals Issue 2017-49

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e-News for Tax Professionals December 8, 2017

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Issue Number:  2017-49

Inside This Issue


  1. IRS e-Services Moves to Secure Access Protection Dec. 10
  2. Get Ready for Taxes: Taxpayers with Expiring ITINs Should Submit Renewals by Dec. 31
  3. Get Ready for Taxes: Join the Dec 13 IRS Social Media Thunderclap
  4. Message from the IRS Return Preparer Office
  5. Technical Guidance

 


1.  IRS e-Services Moves to Secure Access Protection Dec. 10

Starting Dec. 10, 2017, all e-Services users must register through a new, more rigorous identity proofing process called Secure Access.

Any e-Services user who has not previously created a Secure Access account through Get Transcript Online, IP PIN tool, View Balance or by exception processing in recent days must validate his or her identity through this more rigorous process. This also includes all TIN Matching users and users who received Letter 5903 last December and authenticated by telephone.

This new process is not optional on the part of the IRS or its online users. The IRS has been planning this move for more than a year and must make this change to meet federal information system standards. Additionally, cybercriminals increasingly are targeting tax professionals to steal e-Services usernames and passwords, putting taxpayer data at risk.

In recent years, the IRS authenticated each e-Services user individually. When you registered for e-Services, you were asked for your name, address, social security number, your date of birth, adjusted gross income and filing status. That limited amount of information no longer is enough to meet federal information system standards. Users will continue to be authenticated as individuals.

Here’s how Secure Access helps:

  • First, it strengthens the initial identity proofing process to make sure the person registering is who they say they are.

  • Second, it strengthens security through a two-factor authentication process for returning users that helps prevent account takeover by cybercriminals. Two-factor authentication means you must have your credentials (username and password) plus a security code sent to your mobile phone or generated by your IRS2Go app each time you log in.

 

Once you have authenticated your identity and established a Secure Access account for e-Services, there is no further action required. Please note: Under Secure Access, you can no longer script the login process.

Learn more about the steps you must take to successfully complete the Secure Access process, alternatives to online processing and how to use the IRS2Go app. See “Important Update about Your e-Services Account” at www.irs.gov/eservices.

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2.  Get Ready for Taxes: Taxpayers with Expiring ITINs Should Submit Renewals by Dec. 31

Taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) should submit their renewal applications as soon as possible. Failing to renew ITINs by Dec. 31 will cause refund and processing delays in 2018.

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3.  Get Ready for Taxes: Join the Dec 13 IRS Social Media Thunderclap

Thunderclap is a great way to help educate taxpayers via social media about how to timely file their tax returns and receive their refunds as quickly as possible. In preparation for the 2017 filing season, the IRS will post the following message on Tuesday, Dec. 13 at 1:00 p.m. EST to Twitter, Facebook, and TUMBLR: “#GetReady: Take steps now to ensure the smooth processing of your taxes in 2018. #IRS www.irs.gov/getready.”

If you or your organization has a Twitter, Facebook, or TUMBLR account, join the IRS by using your social media platforms to push out this message on Dec., 13. The message will automatically be shared with all your social media followers. Thunderclap will automatically post just one message on your own social media account.

To sign up for the Get Ready Thunderclap:           

    1. Follow this link: http://thndr.me/FDuD74
    2. Click on “Support with” and choose Facebook, Twitter, or Tumbler.
    3. Authorize Thunderclap to post this one-time message to your social media platform by clicking on the “Add My Support” tab.  Although you will need to input your social media username and password, this information will not be shared with the IRS. 

 

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4.  Message from the IRS Return Preparer Office

The IRS Return Preparer Office next week will send the following message to all Practitioner Tax Identification Number (PTIN) holders:

To protect your clients and yourself from cybercriminals, you must make data security an everyday priority. This includes having a security plan. Some steps you should take as part of that security plan are: having security software that includes a firewall, anti-malware and anti-virus programs; creating strong passwords that are changed periodically; educating employees on the dangers of phishing emails and other threats to taxpayer data; exercising caution with attachments and web links; and a secure password protected wireless connection.

It is particularly important for you and your staff to be cautious when opening attachments or clicking links in emails. Hold your cursor over the link to see the URL. Look closely at the full email address of the sender.

The IRS has an education series called “Don’t Take the Bait.” There are descriptions of ten variations of phishing scams we have seen. To review the information, visit IRS.gov and enter keyword: Don’t Take the Bait.

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5.  Technical Guidance

Notice 2017-72 contains the 2017 Required Amendments List for individually designed qualified retirement plans. The list identifies certain changes in qualification requirements that became effective in 2017 that may require an amendment to a retirement plan in order to remain qualified. It also establishes the date any necessary amendment must be made.

Notice 2017-73 describes approaches that the Department of the Treasury and the Internal Revenue Service are considering to address certain issues regarding donor advised funds of sponsoring organizations and requests comments on those approaches.

Notice 2017-74  provides that Individuals who are not eligible for coverage under an eligible employer-sponsored plan and who lack access to affordable coverage should not be denied the use of the affordability exemption under section 5000A(e)(1) of the Code and section 1.5000A-3(e) of the Regulations merely because they reside in an area served by a Marketplace that does not offer a bronze-level plan. 

Revenue Ruling 2017-25 lists the quarterly interest rate revenue ruling for the first quarter of 2018, along with a drop request and a draft press release.

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