IRS NEWS FOR PAYROLL AND HUMAN RESOURCES
The IRS provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act that affect: move related vehicle expenses; un-reimbursed employee expenses; and, vehicle expensing.
- The IRS urges two-income families and those who work multiple jobs to complete a “paycheck checkup” to verify they are having the right amount of tax withheld from their paychecks.
Save www.irs.gov/taxreform as a favorite.
- Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes changing the filing status and dependents, or correcting income, credits or deductions. The instructions for Form 1040X, Amended U.S. Individual Income Tax Return, list more reasons to amend a return. Taxpayers should not file an amended return to fix math errors, because the IRS will correct those.
- Penalties and interest stop accruing as soon as you pay your balance in full. If you can’t pay your balance in full, pay what you can now.
- Common penalties include:
- Failure to file – when you don’t file your tax return by the return due date, April 15, or extended due date if an extension to file is requested and approved
- Failure to pay – when you don’t pay the taxes reported on your return in full by the due date, April 15. An extension to file doesn’t extend the time to pay.
- Failure to pay proper estimated tax – when you don’t pay enough taxes due for the year with your quarterly estimated tax payments when required
- Dishonored check – when your bank doesn’t honor your check or other form of payment
- You may qualify for relief from penalties if you made an effort to comply with the requirements of the law, but were unable to meet your tax obligations, due to circumstances beyond your control.
- If you are a taxpayer receiving certain types of income payments, the IRS requires the payer of these payments to report them on an information return (see types of payments below). The person or business paying you doesn’t generally withhold taxes from these types of payments, as it is assumed you will report and pay taxes on this income when you file your federal income tax return.
- There are situations when the payer is required to withhold at the current rate of 24 percent. This 24 percent tax is taken from any future payments to ensure the IRS receives the tax due on this income.
- The IRS reminds taxpayers to prepare for hurricanes and other natural disasters now. By taking a few steps before disaster strikes, taxpayers can reduce their stress when it comes time to file claims or rebuild after the catastrophic event.
- gov provides tax information as well as many free products and services in English as well as five foreign languages. For access to content in Spanish, taxpayers can click on Español in the top menu bar on the IRS.gov home page.
- Tax information is available in Spanish for both individuals and businesses. Help is also available in Chinese, Korean, Russian and Vietnamese.
►IDENTITY THEFT / DATA THEFT / SCAM ALERTS
- Crooks impersonating the IRS either by phone, email or in person cost people their time and money. The IRS urges people to stay vigilant against schemes and scams and avoid becoming a victim.
- With tax season completed, the IRS is warning taxpayers to remain vigilant for phishing emails and telephone scams. Summertime tends to be a favorite period for scammers because many taxpayers have recently filed a return and may be waiting for a response from the IRS.
- The IRS and its Security Summit partners – the state tax agencies and the tax industry – urge taxpayers to remain alert to tax scams year-round, especially immediately after the tax filing season ends. Even after the April deadline passes, the tax scam season doesn’t end.
►EMPLOYERS AND BUSINESS OWNERS:
- Small business identity theft is big business for identity thieves. When businesses and their employees have their identities stolen, their sensitive information can be used to open credit card accounts or file fraudulent tax returns for bogus refunds.
- In the past two years, the IRS has noted a sharp increase in the number of fraudulent filings of Forms 1120, 1120S and 1041 as well as Schedule K-1. The fraudulent filings apply to partnerships as well as estate and trust forms.
- Identity thieves are displaying a sophisticated knowledge of the tax code and tax industry filing practices as they attempt to obtain valuable data to help file fraudulent returns. To help counter this, Security Summit partners have expanded efforts to better protect business filers and identify suspected identity theft returns.
- Employers may claim the credit based on wages paid to qualifying employees while they are on family and medical leave. The article explains some facts about this credit and how it benefits employers.
- Section 45S Employer Credit for Paid Family and Medical Leave FAQs
►NEWS FROM OTHER AGENCIES
FBI Public Service Announcement
- The FBI recommends any owner of small office and home office routers reboot the devices to temporarily disrupt the malware of infected devices. Foreign cyber actors have compromised hundreds of thousands of home and office routers and other networked devices worldwide. Additional information is available at Foreign Cyber Actors Target Home and Office Routers and Networked Devices Worldwide
Establishing Values for Your Business
- The values and culture of your company have a direct effect on your employees, customers and ultimately your bottom line. This course will introduce you to the processes of implementing company values for your business. Click here to view the 30 minute course.
►IN EVERY ISSUE
Want to see if the letter your client got is really from the IRS? Many (but not all) IRS letters and notices listed here.
If you’re an individual taxpayer, you can use this tool to view:
- Your payoff amount, updated for the current calendar day
- The balance for each tax year for which you owe
- Up to 18 months of your payment history
- Key information from your current tax year return as originally filed.
- Tax Scams / Consumer Alerts
We send out emails each time there’s a new tax scam. It gets confusing to remember all of them. You don’t have to! This page lists ALL scams targeting taxpayers, tax professionals and others
Loads of info here, including:
- Employer ID Numbers (EINs) and
- Publication 1635, Understanding Your EIN
- Identity Protection: Prevention, Detection and Victim Assistance
- IRS Identity Theft Victim Assistance: How It Works
- Data Breach: Tax-Related Information for Taxpayers
- Not every data breach results in identity theft, and not every identity theft is tax-related identity theft.
- Identity Protection PIN (IP PIN)
Federal Trade Commission: