e-News for Tax Professionals 2021-06
Internal Revenue Service (IRS) sent this bulletin at 02/12/2021 04:34 PM EST
 |
|||
|
|||
Useful Links:Stakeholders Partners' Training and Upcoming EventsSeminars, Workshops, Conferences, and Other Practitioner Activities By State:Alabama Kentucky North Dakota |
Issue Number: 2021-06Inside This Issue
1. Tax Pros: Beware of attempts to steal your EFIN The IRS, state tax agencies and the tax industry warned tax professionals of a new scam email that impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs). The Security Summit partners said the latest scheme, arriving just before the start of the nation’s tax season, should serve as another reminder that tax professionals remain prime targets for identity thieves. These thieves try to steal client data and tax preparers’ identities that will allow them to file fraudulent tax returns for refunds. The latest scam email purports to be from “IRS Tax E-Filing” and carries the subject line “Verifying your EFIN before e-filing.” The IRS warns tax pros not to take any of the steps outlined in the email and not to respond to the email. “Phishing scams are the most common tool used by identity thieves to trick tax professionals into disclosing sensitive information, and we often see increased activity during filing season,” said IRS Commissioner Chuck Rettig. “Tax professionals must remain vigilant. The scammers are very active and very creative.” 2. A Closer Look: Delivering the 2021 Filing Season The latest IRS executive column, “A Closer Look,” features Commissioner, Wage & Investment and Chief Taxpayer Experience Officer Ken Corbin discussing how the IRS prepares to process more than 150 million tax returns and issue more than $400 billion in refunds to taxpayers each year. “We have added to our capabilities the lessons learned and best practices of 2020. We are ready, willing and able to help taxpayers meet the April 15 filing deadline,” Corbin said. Additionally, IRS officially opened the filing season today, Feb. 12. Here’s what you need to know. 3. New electronic signature option simplifies third-party authorizations Did you know tax professionals and their clients can now electronically sign third-party authorization Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization? With the new tool Submit Forms 2848 and 8821 Online, tax professionals can then upload the forms directly to the IRS. Tax professionals enter their Secure Access username and password or complete a Secure Access registration to authenticate their identities. Forms signed by hand can also be uploaded. For details, see Fact Sheet 2021-02 or IRS Office of Professional Responsibility Director Sharyn Fisk’s article in A Closer Look. 4. Find Economic Impact Payments using IRS Online Account Individual taxpayers can securely access their IRS account information through Online Account on IRS.gov, including the amount of any Economic Impact Payments (EIP) received. This information can be used to calculate the Recovery Rebate Credit on a 2020 tax return. EIP amounts can be found on the Tax Records tab in Online Account. 5. New form available for self-employed individuals to claim COVID-19 sick and family leave tax credits under FFCRA A new IRS form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA). Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. Individuals will claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and Dec. 31, 2020, and on their 2021 Form 1040 for leave taken between Jan. 1, 2021, and March 31, 2021. The FFCRA, passed in March 2020, allows eligible self-employed individuals who, due to COVID-19 are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax. The credits are equal to either their qualified sick leave or family leave equivalent amount, depending on circumstances. IRS.gov has instructions to help calculate the qualified sick leave equivalent amount and qualified family leave equivalent amount. Certain restrictions apply. 6. IRS names Sieger to permanent position of CIO IRS executive Nancy Sieger has been selected as permanent IRS Chief Information Officer. Sieger has served as acting CIO since June 2019. She is responsible for all aspects of IT systems that operate the nation's tax infrastructure. She oversees the 7,000-person IT organization that maintains hundreds of systems and supports the processing of millions of tax returns annually. 7. IRS updates FAQs on paid sick leave credit and family leave credit and the Recovery Rebate Credit The IRS posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs. The IRS has also posted questions and answers for the Recovery Rebate Credit. For more information, see a new video on the Recovery Rebate Credit: https://www.youtube.com/watch?v=1GB_o6_SDVA. 8. Post-Release Changes to Schedule K-1 Form 1041 instructions Visit IRS.gov for the latest information on Schedule K-1 (Form 1041) Instructions—Corrected Decedent’s Schedule K-1. Information is provided on specific changes to forms, instructions, or publications after they are available on IRS.gov. Such changes are often the result of new tax legislation, new IRS guidance, clarifications, corrections, and other revisions. 9. News from the Justice Department’s Tax Division A Rocky Mount, N.C., tax return preparer was sentenced to 50 months in prison for conspiring to defraud the United States. According to court documents and statements made in court, between 2009 and 2017, Adrienne Williams owned and operated Ultimate Tax Service, a return preparation business. During that time period, Williams and at least two of her employees at Ultimate Tax Service prepared false tax returns for clients claiming fraudulent refunds by including, among other falsities, bogus federal income tax withholdings. In all, Williams and her co-conspirators sought to defraud the IRS of more than $3.5 million. In addition to the term of imprisonment, Williams was ordered to serve three years of supervised release and pay $4,830,723 in restitution to the IRS. Two Louisiana tax preparers pleaded guilty to conspiracy to defraud the U.S. According to court documents and statements made in court, from January through April 2015, Morgan Antoine and Jennifer Austin conspired to file false tax returns for clients of Pelicans Income Tax and Payroll Service, a tax preparation business located in Kenner and Westwego, La. Antoine and Austin prepared client returns reporting false income and withholdings in order to generate larger tax refunds. In addition to preparing false returns for her clients, Antoine also filed a fraudulent personal return that claimed a false dependent. In total, Antoine and Austin caused a tax loss of more than $550,000. At sentencing, Antoine and Austin each face a maximum sentence of five years in prison and a period of supervised release, restitution, and monetary penalties. 10. Technical Guidance Treasury and the Small Business Administration (SBA) have published the interim final rule Business Loan Program Temporary Changes; Paycheck Protection Program (PPP)-Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act. The interim final rule implements changes to the PPP made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), which extended the PPP program through March 31, 2021, revised certain PPP requirements, and allowed second draw PPP loans. The interim final rule’s effective date is Feb. 3, 2021. The SBA has also released Procedural Notice 5000-20091, which updates the reporting process through which PPP Lenders will report on PPP loans and collect the processing fee on fully disbursed loans that they are eligible to receive. The update addresses changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.
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. |
||
