When federally recognized tribes send taxable gaming distributions to their Tribal members, they must report these distributions to the IRS. They must also report to the Tribal members on Form 1099-MISC. Tribal members need to follow specific instructions when reporting these distributions on their 2013 federal tax returns to avoid delay. Read the January edition of the Indian Tribal Governments News to find out more.

The IRS office of Indian Tribal Governments encourages you to include the article found in the January edition when sending Tribal members their Form 1099-MISC.

3. Form 1041 Multiple Tax Return Listing Process Change Postponed to Jan. 1, 2015

As part of a regular review process, the IRS has determined that the Multiple Tax Return Listing (MTRL) process used to sign electronically filed Form 1041, U.S. Income Tax Return for Estates and Trusts, must be modified. Beginning Jan. 1, 2015, the IRS e-file Signature Authorization document, Form 8879-F, can only be associated with a single 1041 return, not with multiple forms as used today. The MTRL process, as it is currently implemented, will continue for 2014.

In December, the IRS had announced a change to the MTRL process for this filing season. However, the agency is delaying the change for one year.

This change is required for two reasons following additional legal review by the IRS. First, the perjury statement on the form refers to amounts in Part 1 of the form and the relevant amounts are actually on the attached listing. Second, a signature on one form cannot ensure that the signer reviewed and approved each of the Forms 1041 in the listing.

The following publications will be updated to reflect the policy change:

Publication 1437, Procedures for the 1041 e-File Program U.S. Income Tax Returns for Estates and Trusts for Tax Year 2014
Publication 1438, File Specifications, Validation Criteria & Record Layouts for the Form 1041, e-File U.S. Income Tax Return for Estates and Trusts for Tax Year 2014
Publication 4163, Modernized e-File (MeF) Information for Authorized e-File Providers for Business Returns
Publication 4164, Modernized e-File (MeF) Guide for Software Developers and Transmitters

The IRS recognizes this change due to the legal requirements will add additional steps for some fiduciaries. The IRS will consider alternative signature methods and will work to make the change as smooth as possible.

4. Feb. 6 Phone Forum: Ethical Standards of Employee Benefits Practice

Sign up now for this Feb. 6 rebroadcasted Phone Forum that will discuss an employee benefits practitioner’s ethical standards of conduct under Circular 230 for communications with clients and the IRS. The forum will include a practical analysis of the ethical rules for a practitioner’s duty of diligence in obtaining accurate and complete information, properly advising clients on tax positions and potential penalties, and reporting information to the IRS.

Ethics CE credit will be issued for this program.

5. Technical Guidance

Revenue Ruling 2014-04 provides information is to be used by insurance companies in computing their reserves.

Notice 2014-09 provides information regarding Recovery Zone Facility Bonds.

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