Issue Number: 2018-9
Inside This Issue
- Updated Withholding Calculator, Form W-4 Now Available
- IRS Nationwide Tax Forums: Registration Now Open
- Many EITC, ACTC Refunds Arriving Soon
- Filing Season Reminder: Include Form 8867, Paid Preparer’s Due Diligence Checklist
- Technical Guidance
1. Updated Withholding Calculator, Form W-4 Now Available
The Internal Revenue Service this week released an updated withholding calculator on IRS.gov and a new version of Form W-4. The calculator and new W-4 can be used to ensure 2018 individual tax withholding amounts are accurate in light of the recent tax law changes.
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2. IRS Nationwide Tax Forums: Registration Now Open
Registration is now open for the 2018 IRS Nationwide Tax Forums coming up this summer in Atlanta, National Harbor (Washington, D.C.), San Diego, Chicago and Orlando.
Join tax professionals from around the country for three days of tax law seminars, hands-on workshops and exhibits featuring new products and services.
Seminars are presented by IRS experts and national association partners including the American Bar Association, the American Institute of Certified Public Accountants, the National Association of Enrolled Agents, the National Association of Tax Professionals, the National Society of Accountants and the National Society of Tax Professionals. Attendees can earn up to 18 continuing professional education (CPE) credits.
For more information and to register, visit the IRS Nationwide Tax Forum website at www.irstaxforum.com.
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3. Many EITC, ACTC Refunds Arriving Soon
Tax refunds for taxpayers who claimed the Earned Income Tax Credit and the Additional Child Tax Credit should begin arriving in bank accounts or on debit cards this week.
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4. Filing Season Reminder: Include Form 8867, Paid Preparer’s Due Diligence Checklist
Tax preparers who submit two or more paper returns claiming any of three refundable tax credits without attaching Form 8867, Paid Preparer’s Due Diligence Checklist, will receive follow-up letters from the IRS.
Congress recently expanded due diligence requirements. Now, preparers who file returns claiming the Child Tax Credit/Additional Child Tax Credit (CTC/ACTC) and the American Opportunity Credit (AOC) must follow due diligence requirements and properly complete and submit Form 8867,certifying they have confirmed their clients’ eligibility for the credits. Previously the due diligence requirements applied only to Earned Income Tax Credit (EITC) returns.
Check the tax preparer toolkit on IRS.gov for IRS due diligence requirements and more.
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5. Technical Guidance
Notice 2018-18 announces that the Department of the Treasury and the Internal Revenue Service intend to issue regulations providing guidance on the application of section 1061 of the Internal Revenue Code as enacted by "an Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018," Public Law 115-97 on December 22, 2017. These regulations will provide that the term "applicable partnership interest" for purposes of section 1061 includes a partnership interest directly or indirectly held by an S corporation.
Notice 2018-19 extends the relief Notice 2017-56 provides to residents of Puerto Rico and the U.S. Virgin Islands who evacuated or couldn’t return because of Hurricane Irma or Hurricane Maria. Most of these individuals may otherwise lose their status as “bona fide residents” of Puerto Rico or the U.S. Virgin Islands for tax filing and reporting purposes. Notice 2018-19 further extends the usual 14-day absence period to 268 days, beginning September 6, 2017 and ending May 31, 2018, for the presence test for residency under the tax rules. Further, an individual who is absent from either U.S. territory on any day during this 268-day period will also be treated as leaving or being unable to return to the relevant U.S. territory as a result of Hurricane Irma and Hurricane Maria on such day.
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