Issue Number: 2020-02
Inside This Issue
- Filing Season for Individual Filers Opens Jan. 27
- IRS Launches New Gig Economy Tax Center
- IRS Annual Report: Review of 2019 and “Glimpse into the Future”
- National Taxpayer Advocate Delivers the 2019 Annual Report to Congress
- Cincinnati, Hartford Payment P.O. Boxes Closing in 2020
- IRS Whistleblower Office Collects More than $616 Million
- News from the Justice Department’s Tax Division
1. Filing Season for Individual Filers Opens Jan. 27
The IRS confirmed this week that the 2020 tax season will start for individual tax return filers on Monday, Jan. 27. The deadline to file 2019 tax returns and pay any tax owed is Wednesday, April 15. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline.
"As we enter the filing season, taxpayers should know that the dedicated workforce of the IRS stands ready to help," IRS Commissioner Chuck Rettig said. "We encourage taxpayers to plan ahead and use the tools and information available on IRS.gov. The IRS and the nation's tax community are committed to making this another smooth filing season."
Back to top
2. IRS Launches New Gig Economy Tax Center
The IRS this week launched a new Gig Economy Tax Center on IRS.gov to help people in this growing area meet their tax obligations.
"The IRS developed this online center to help taxpayers in this emerging segment of the economy," said IRS Commissioner Chuck Rettig. "Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line."
The Gig Economy Tax Center streamlines various resources, making it easier for taxpayers to find information about the tax implications for the companies that provide the services and the individuals who perform them.
Back to top
3. IRS Annual Report: Review of 2019 and “Glimpse into the Future”
The IRS released a new annual report highlighting accomplishments across the nation’s tax agency during Fiscal Year 2019. “Internal Revenue Service Progress Update/Fiscal Year 2019 – Putting Taxpayers First” provides an overview of a variety of operations across taxpayer service, compliance and support areas. The 41-page document is built around the agency’s six strategic goals.
“This report is about more than what happened during the past year,” IRS Commissioner Chuck Rettig wrote in the report’s opening message to taxpayers. “It’s also designed to provide insight into the people serving this country on behalf of the IRS and provide a glimpse into the future.”
Back to top
4. National Taxpayer Advocate Delivers the 2019 Annual Report to Congress
The Acting National Taxpayer Advocate this week released the 2019 Annual Report to Congress. The report highlights the impact of the Taxpayer First Act and outlines the 10 most serious problems facing taxpayers today. In addition, the third edition of the National Taxpayer Advocate’s “Purple Book,” presents 58 legislative recommendations designed to strengthen taxpayer rights and improve tax administration.
Back to top
5. Cincinnati, Hartford Payment P.O. Boxes Closing in 2020
The IRS is closing several business payment P.O. Boxes (or Lockbox addresses) in the Cincinnati and Hartford areas beginning July 1. Payments mailed to these closed payment locations will be returned to the sender. No forwarding service will be available.
To help ensure timely receipt, check Where to File on irs.gov before mailing your client’s payment. If you receive an IRS payment letter, please send the payment to the address found in the letter.
IRS encourages taxpayers to use IRS Direct Pay. It's fast, secure and easy to use to pay a tax bill or estimated tax payment directly from a checking or savings account. Users receive instant confirmation that their payment has been made.
Back to top
6. IRS Whistleblower Office Collects More than $616 Million
In fiscal year 2019, the Whistleblower Office made 181 awards to whistleblowers totaling over $120 million (before sequestration). This amount included 24 awards under section 7623(b) of the Internal Revenue Code. Proceeds totaled more than $616 million. To learn more, read the 2019 Annual Report to Congress.
Back to top
7. News from the Justice Department’s Tax Division
The U.S. Department of Justice Tax Division this week reported:
The U.S. District Court for the Southern District of Georgia has enjoined Andrea Nadel and her business, EZ Accounting & Tax Service LLC (EZ Accounting), along with Estelle Nadel, from preparing federal tax returns for others. According to the complaint, Andrea Nadel, EZ Accounting, and Estelle Nadel prepared federal income tax returns that reported false Schedule A and Schedule C deductions in order to manipulate their customers’ claims for the Earned Income Tax Credit and reduce their taxable income. The complaint alleges that the defendants prepared returns that falsely claimed deductions for gifts to charity, unreimbursed employee expenses, tax preparation fees, and taxes paid, and that their practice of claiming these false deductions has resulted in significant lost tax revenues. As set out in the complaint, earlier this year, Andrea Nadel was indicted and pleaded guilty to aiding and assisting the preparation of a false tax return in violation of 26 U.S.C. § 7206(2). Andrea Nadel, EZ Accounting, and Estelle Nadel agreed to entry of the permanent injunctions without admitting any factual allegations in the complaint.
A New York tax return preparer was sentenced to 36 months in prison for wire fraud, aggravated identity theft, and assisting in the preparation and filing of false returns. According to court documents and statements made in court, Oyeniyi Jaiyesimi was the owner of Pace Financial Services, a tax preparation business located in Springfield Gardens, NY. From 2014 through 2016, Jaiyesimi used stolen identities to file fraudulent tax returns with the IRS to obtain refunds to which he was not entitled. Jaiyesimi also filed false tax returns on behalf of his clients that claimed fraudulent dependent exemptions in order to obtain larger refunds for them. In addition to the prison term, the court ordered Jaiyesimi to serve two years of supervised release and to pay approximately $58,000 in restitution to the United States.
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.
|
