Monthly Archives: February 2020

How to Confirm the Identity of an IRS Field Revenue Officer If They Come Knocking at Your Door 2020-02-13 The Internal Revenue Service (IRS) has begun conducting face-to-face meetings with individual and business taxpayers as a part of a special compliance effort entitled Revenue Officer Compliance Sweep (ROCS). This is an extremely high priority effort where IRS field revenue officers (RO’s) will be working to resolve compliance issues, including missing…

IRS Announces Large Print Form 1040-SR for Seniors 2020-02-05 The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. Taxpayers age 65 or older now have the option to use Form 1040-SR , U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability. Seniors can use the new form to file their 2019 federal income tax return, which is…

Tax simplification for private foundations 2020-02-04 The Taxpayer Certainty and Disaster Tax Relief Act of 2019 reduced the 2% excise tax on net investment income of private foundations to 1.39%, and repealed the 1% special rate that applied if the private foundation met certain distribution requirements.  The changes are effective for taxable years beginning after December 20, 2019.

Retroactive Repeal of Unrelated Business Taxable Income – Qualified Transportation Fringe Benefits aka "parking lot tax" 2020-02-04 The Taxpayer Certainty and Disaster Tax Relief Act of 2019 retroactively repealed Internal Revenue Code (IRC) Section 512(a)(7), which increased unrelated business taxable income by amounts paid or incurred for qualified transportation fringes. Congress had previously enacted this provision as part of the Tax Cuts and Jobs Act, effective for amounts paid or incurred after…

IRS Form 1023 must be submitted electronically online starting January 1, 2020 2020-02-04 Effective January 31, 2020, applications for recognition of exemption on Form 1023 must be submitted electronically online at www.pay.gov. The IRS will provide a grace period during which the IRS will continue to accept paper versions of Form 1023 (Rev. 12-2017). The user fee for Form 1023 will remain $600 for 2020. Applicants must pay the user fee…