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Issue Number:  2018-2

Inside This Issue

1. New on IRS.gov
2. Tax Pros Urged to Step Up Security as Filing Scheme Emerges, Reminded to Report Data Thefts
3. How to Report Tax Scams
4. Renew your E-Services Account Now
5. Technical Guidance

• Pub 15, Circular E, Employer’s Tax Guide (for use in 2018)
• Pub 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498 and W-2G

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Only a few days into the filing season, the IRS has already identified a new scam with cybercriminals stealing data from several tax practitioners’ computers and filing fraudulent tax returns. Tax professionals are urged to step up security and beware of phishing emails that can secretly download malicious software that can help cybercriminals steal client data.

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The IRS would like your help in identifying promoters of “too good to be true” abusive tax schemes and tax preparers using illegal practices to help clients avoid paying taxes.

Use Form 14242, Report Suspected Abusive Tax Promotions or Preparers, to make a referral to the IRS. Learn more about the role of the Lead Development Center and abusive tax schemes at www.irs.gov/scams.

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Reminder: If you are an e-Services account holder, please re-register now through the more rigorous Secure Access authentication process. Additional toll-free personnel currently helping e-Services users soon will return to their primary jobs of assisting taxpayers.

E-Services users who wait until they need immediate access to their account may encounter unexpected delays. So far, 65,000 e-Services account holders already have successfully registered through Secure Access.

To get started, first review Secure Access: How to Register for Certain Online Self-Help Tools to determine what you need to be successful and FAQs about e-Services and Secure Access for additional information, including common errors.

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Notice 2018- 14: provides guidance on withholding rules and:

• Extends the effective period of Forms W-4 furnished to claim exemption from income tax withholding under section 3402(n) for 2017 until Feb. 28, 2018 and temporarily permits employees to claim exemption from withholding under section 3402(n) for 2018 by using 2017 Form W-4
• Suspends the requirement that employees must furnish their employers new Forms W-4 within 10 days of changes of status resulting in fewer withholding allowances
• Provides that the optional withholding rate on supplemental wage payments is 22 percent for taxable years 2018 through 2025, and (4) provides that, for 2018, withholding on annuities or similar periodic payments where no withholding certificate is in effect is based on treating the payee as a married individual claiming three withholding allowances under section 3405(a)(4)

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