News

IRS Operations in Response to Covid-19 2020-04-07 The IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice. The Practitioner Priority Service is closed now and will reopen when it can. Existing Installment Agreements payments between April 1 and July 15 are suspended. The IRS is continuing to process tax returns, issue refunds and help taxpayers to the greatest extent possible. Direct…

IRS Installment Agreements During Covid-19 2020-04-03 See https://www.irs.gov/newsroom/installment-agreement-direct-debit-frequently-asked-questions To help people facing the challenges of COVID-19 issues, the IRS through the People First Initiative, will temporarily adjust and suspend key compliance programs. For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Debit Installment…

IRS Operations During COVID-19: Mission-critical functions continue The IRS posted a web page on operations during COVID-19 at https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue .

Department of Economic Development revised processing of Neighborhood Assistance Program and Youth Opportunity Program Tax Credits 2020-03-24 With a confirmed case of COVID-19 at the Truman Building in Jefferson City, all Department of Economic Development programs (Neighborhood Assistance Program, "NAP", and Youth Opportunity Program Tax Credits, "YOP") will now be accepting all applications and documentation digitally. Until further notice, faxes and mail will only be retrieved periodically. Tax Credit Certificates…

IRS increases the fee for Offers in Compromise to $205 2020-03-13 The increase in offer in compromise (OIC) user fee from $186 to $205 applies to offers filed after April 27, 2020. When an OIC is accepted, the user fee is either applied against the amount to be paid under the offer or refunded to the taxpayer if the taxpayer requests a refund pursuant to §300.3(b)(2). Offers based on doubt…

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…