tag:blogger.com,1999:blog-51316053779784429722024-03-13T19:17:37.620-07:00CrossLink Professional Tax Solutions BlogAs part of our commitment to building our relationship with you and taking your success personally, we believe that delivering meaningful information and interaction via social media is critical. The blog format will allow us to deliver industry news, support updates, commentary from CrossLink Professional Tax Solutions management, and other relevant information to help you be as successful as possible.CrossLink Professional Tax Softwarehttp://www.blogger.com/profile/14581385935578682939noreply@blogger.comBlogger285125tag:blogger.com,1999:blog-5131605377978442972.post-58030103314812780732019-02-01T10:59:00.000-08:002019-02-01T11:00:42.270-08:00Helpful IRS Resources for Tax Reform Changes<br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: large;">Below are some resources that
you may find useful in navigating the new tax law changes during this filing
season.</span></span></div>
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<b><span style="line-height: 115%;"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Information
on Tax Cuts and Jobs Act<o:p></o:p></span></span></b></div>
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<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-pdf/p5307.pdf">Publication 5307</a></span><span style="line-height: 115%;"> (Tax
Reform: Basics for Individuals and Families)</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-pdf/p5318.pdf">Publication 5318</a></span><span style="line-height: 115%;"> (Tax
Reform: What’s New for Your Business)</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/tax-reform">Tax Reform</a></span><span style="line-height: 115%;"> page
on IRS website</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/newsroom/tax-reform-guidance">Tax Reform Guidance</a></span><span style="line-height: 115%;"> page
on IRS website</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-pdf/i4562.pdf">Form 4562 Instructions</a></span><span style="line-height: 115%;">
(Depreciation and Amortization)</span></span></li>
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<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Bonus Depreciation – Pages 5 –
6</span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Section 179 Expensing – Page 2
and Pages 3 – 4</span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">New Auto Limits – Page 13</span></li>
</ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-pdf/i1040sca.pdf">Schedule A instructions</a></span><span style="line-height: 115%;"> for
changes to itemized deductions</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-pdf/p17.pdf">Publication 17</a></span><span style="line-height: 115%;"> (Your
Federal Income Tax)</span></span></li>
</ul>
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<b><span style="line-height: 115%;"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Child
Tax Credit/Credit for Other Dependents<o:p></o:p></span></span></b></div>
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<li><a href="https://www.irs.gov/newsroom/whats-new-with-the-child-tax-credit-after-tax-reform"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">What’s
New with the Child Tax Credit after Tax Reform</span></a></li>
<li><a href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Form 1040 instructions</span></a></li>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">What’s New – Page 6</span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Child Tax Credit and
Credit for Other Dependents Worksheet – Page 42 – 43</span></li>
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<b><span style="line-height: 115%;"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Qualified
Business Income Deduction<o:p></o:p></span></span></b></div>
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<li><a href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Form 1040 instructions</span></a></li>
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<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Explanation – Page 34 & 36</span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Simplified Worksheet – Page 37</span></li>
</ul>
<li><a href="https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Qualified
Business Income FAQs</span></a></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-drop/n-19-07.pdf">IRS Notice 2019-07</a></span><span style="line-height: 115%;"> -
Rental Safe Harbor Rule for Qualified Business Income Deduction</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-drop/td-reg-107892-18.pdf">Final Regulations</a></span><span style="line-height: 115%;"> for
Qualified Business Income Deduction</span></span></li>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><span style="line-height: 115%;"><a href="https://www.irs.gov/pub/irs-pdf/p535.pdf">Publication 535</a></span><span style="line-height: 115%;">
(Business Expenses), Chapter 12 (Qualified Business Income Deduction) </span></span><span style="font-family: Arial, Helvetica, sans-serif; font-size: large;">Provides detail explanation of
deduction and includes worksheets for taxpayers who exceed the $157,500
($315,000) threshold. Includes explanation of what businesses are considered a
specified service trade or business.</span></li>
</ul>
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<br />Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com7tag:blogger.com,1999:blog-5131605377978442972.post-50832457081535140052019-01-30T10:43:00.002-08:002019-01-30T10:43:57.485-08:002018 Federal Return and Taxpayer Expectations<br />
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With the 2019 filing season it is important for preparers to be aware that, due to tax reform and the changes to the withholding tables, some of your clients may receive a surprise when they see the results on their 2018 federal return in the form of a lower refund – some may even show a balance due.</div>
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This is because of “Tax Cuts and Jobs Act” changes such as the elimination of exemptions, the increase in the standard deduction, the elimination and limiting of certain itemized deduction and elimination of certain other deductions. The taxpayers that are most likely to be affected are:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Two wage earner households</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Taxpayers who itemize</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Individuals who have non-wage income as well as W-2 wages</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Individuals with more complex tax situations</li>
</ul>
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Even though the 2018 federal withholding tables reflected the lower tax rates and the increased standard deduction, they could not fully take into account the other tax law changes such as the suspension of dependency exemptions and reduced itemized deductions. This means that for the taxpayers listed above they will have had less tax withheld from their wages than in the past which may result in a lower refund or in some instances switch them from a refund to a balance due.</div>
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The IRS encouraged individuals to review their tax situation and adjust their withholding throughout 2018; however, the vast majority of taxpayers did not do this which may result in surprised clients.</div>
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By being aware of the situation, preparers can explain to their clients what changed on their return for 2018 and what they can do to change the result of their federal return for 2019.</div>
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See the IRS news release of November 14 – <a href="https://www.irs.gov/newsroom/get-ready-for-taxes-for-many-time-is-running-out-to-avoid-a-tax-time-surprise-check-withholding-make-estimated-payments-now">For many, time is running out to avoid a tax-time surprise</a> for more information.</div>
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Visit the <a href="https://www.crosslinktax.com/customer-resources/Tax-Resource-Center.asp">CrossLink Tax Resource Center</a> to learn more.</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com4tag:blogger.com,1999:blog-5131605377978442972.post-69244037754591280282019-01-16T13:02:00.002-08:002019-01-16T13:03:51.909-08:00Reminder of 2018 Itemized Deduction Changes<span style="background-color: white; color: #222222; font-family: "open sans" , "verdana" , sans-serif; font-size: 16px;">As the 2019 filing season is almost upon us this is a reminder of the changes to the 2018 itemized deductions.</span><br />
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Here is a summary of the changes:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Taxes - Total real estate and state and local income taxes/general sales taxes are limited to $10,000.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Interest</li>
</ul>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;" type="disc"><ul style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;" type="circle">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Home equity loan, home equity line of credit or second mortgage interest is only deductible if it was used to buy, build or substantially improve the home (main or second) that secures the loan.</li>
</ul>
</ul>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;"><ul style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Home mortgage interest is limited to $750,000 for homes purchased on or after December 15, 2017. The limit remains at $1,000,000 for homes purchased before that date.</li>
</ul>
</ul>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;" type="disc"><ul style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;" type="circle">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Home mortgage interest remains deductible for interest paid on loan secured by the taxpayer’s main or second home.</li>
</ul>
</ul>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Personal casualty losses are only deductible if the loss was incurred in a federally declared disaster area.</li>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The FEMA disaster declaration number will now be required to be entered on Form 4684 (Casualties and Theft).</li>
</ul>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Miscellaneous itemized deductions subject to the 2% AGI floor are no longer deductible. This includes the Employee Business Expenses that were reported on Form 2106.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Medical expense AGI threshold is 7.5% for 2018 for all taxpayers.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Itemized deductions are no longer limited for higher income taxpayers.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Charitable Contributions</li>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The AGI limitation is now 60% of AGI.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Payments made in exchange for college athletic seating rights are no longer deductible.</li>
</ul>
</ul>
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For more details see the final 2018 <a href="https://www.irs.gov/pub/irs-pdf/f1040sa.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">Schedule A</a> and <a href="https://www.irs.gov/pub/irs-pdf/i1040sca.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">instructions</a> on the IRS website.</div>
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Also, see <a href="https://www.irs.gov/pub/irs-pdf/p5307.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">IRS Publication 5307</a> (Tax Reform Basics: For Individuals and Families) for more information on the itemized deduction changes and other tax law changes that will affect individuals this filing season.<br />
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View the original article on the <a href="http://www.crosslinktax.com/tax-updates/Reminder-of-2018-Itemized-Deduction-Changes.asp">CrossLink Tax Resources Center</a>.</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com2tag:blogger.com,1999:blog-5131605377978442972.post-73068171343026793092019-01-09T15:10:00.000-08:002019-01-09T15:10:39.571-08:00Qualified Business Income Deduction (20% Deduction for Certain Pass-Through Income)<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizelegibility;">
The Tax Cuts and Jobs Act included a provision that may allow an individual to deduct 20% of their domestic qualified business income from a partnership, S Corporation or sole proprietorship (Schedule C or F). This provision is in effect for tax years 2018 – 2025.</div>
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For the vast majority of taxpayers (90%) this deduction is calculated as the lesser of:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">20% of their net business income or</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">20% of their taxable income excluding capital gains</li>
</ul>
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This means that for most taxpayers, the deduction is calculated based on the Simplified Worksheet on page 37 of the 2018 <a href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">Form 1040 instructions</a>.</div>
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For the remaining 10% of taxpayers whose income exceeds $157,500 ($315,000 for joint filers) the deduction will be limited as follows:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">For “specified service businesses” the deduction begins to be phased out once the income limit is reached.</li>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Specified Service business is defined on page 34 of the 2018 Form 1040 instructions.</li>
</ul>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">For all other businesses the deduction is limited to:</li>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">50% of the W-2 wages paid by the business or</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">25% of the W-2 wages paid by the business plus 2.5% of the unadjusted basis of all qualified property</li>
</ul>
</ul>
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For these taxpayers the deduction is calculated based on worksheets in the newly revised draft <a href="https://www.irs.gov/pub/irs-dft/p535--dft.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">2018 IRS Publication 535</a> (Qualified Business Income Deduction).</div>
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See the <a href="https://www.irs.gov/newsroom/business-owners-can-claim-a-qualified-business-income-deduction" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">Business owners can claim a qualified business income deduction</a> page on the IRS website for more information.</div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizelegibility;">
<br /></div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizelegibility;">
More information can be found on the <a href="https://www.crosslinktax.com/customer-resources/Tax-Resource-Center.asp">CrossLink Tax Resource Center.</a></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-14281384058518199032019-01-07T16:16:00.000-08:002019-01-08T09:05:36.922-08:00IRS confirms tax filing season to begin January 28<br />
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<span class="bumpedfont15"><span style="font-family: "arial" , "helvetica" , sans-serif;">Copy of IRS Press Release below:</span></span></div>
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<span class="bumpedfont15"><span style="font-family: "arial" , "helvetica" , sans-serif;">==============</span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>IRS confirms tax filing season to begin January 28</b><o:p></o:p></span></div>
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<span class="bumpedfont15"><span style="font-family: "arial" , "helvetica" , sans-serif;">IR-2019-01<o:p></o:p></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="bumpedfont15">WASHINGTON </span>― Despite the
government shutdown, the Internal Revenue Service today confirmed that it will
process tax returns beginning January 28, 2019 and provide refunds to taxpayers
as scheduled. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">“We are committed to ensuring that taxpayers receive their
refunds notwithstanding the government shutdown. I appreciate the hard work of
the employees and their commitment to the taxpayers during this period,” said
IRS Commissioner Chuck Rettig. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Congress directed the payment of all tax refunds through a
permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has
consistently been of the view that it has authority to pay refunds despite a
lapse in annual appropriations. Although in 2011 the Office of Management
and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has
reviewed the relevant law at Treasury’s request and concluded that IRS may pay
tax refunds during a lapse.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">The IRS will be recalling a significant portion of its
workforce, currently furloughed as part of the government shutdown, to work.
Additional details for the IRS filing season will be included in an updated
FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the
coming days. <o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">“IRS employees have been hard at work over the past year to
implement the biggest tax law changes the nation has seen in more than 30
years,” said Rettig. <o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">As in past years, the IRS will begin accepting and
processing individual tax returns once the filing season begins. For taxpayers
who usually file early in the year and have all of the needed documentation,
there is no need to wait to file. They should file when they are ready to
submit a complete and accurate tax return. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">The filing deadline to submit 2018 tax returns is Monday,
April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday
on April 15 in Maine and Massachusetts and the Emancipation Day holiday on
April 16 in the District of Columbia, taxpayers who live in Maine or
Massachusetts have until April 17, 2019 to file their returns.<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Software companies and tax professionals will be accepting
and preparing tax returns before Jan. 28 and then will submit the returns when
the IRS systems open later this month. The IRS strongly encourages people to
file their tax returns electronically to minimize errors and for faster
refunds.<o:p></o:p></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;">===============</span><br /><span style="font-family: "arial" , "helvetica" , sans-serif;">View the original IRS Press Release: <a href="https://www.irs.gov/newsroom/irs-confirms-tax-filing-season-to-begin-january-28">www.irs.gov/newsroom/irs-confirms-tax-filing-season-to-begin-january-28 </a></span><br />
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<br />Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com2tag:blogger.com,1999:blog-5131605377978442972.post-20528146313652407672019-01-02T15:52:00.000-08:002019-01-02T15:54:22.542-08:00IRS and Partial Government Shutdown<div style="background-color: white; color: #1d2129; margin-bottom: 6px;">
<span style="font-weight: normal;"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">The IRS is affected by the partial government shutdown as follows:</span></span><br />
<span style="font-weight: normal;"><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><br /></span></span>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large; font-weight: normal;">Any paper return that is sent (this includes amended returns) to the IRS will not be processed</span></li>
</ul>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large; font-weight: normal;">IRS Help Desk is not operating</span></li>
</ul>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large; font-weight: normal;">Any refunds will not be issued</span></li>
</ul>
<span style="font-size: large;"><span style="font-weight: normal;"><br /></span><span style="font-weight: normal;"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span><span style="font-weight: normal;"><span style="font-family: "arial" , "helvetica" , sans-serif;">See the <a href="https://home.treasury.gov/system/files/266/IRS-Lapse-in-Appropriations-Contingency-Plan_Nonfiling-Season_2018-12-03.pdf?fbclid=IwAR1YB_W7L7TVaACi4YUurzXe5z3JIkl3sa380WwcrY7N256my0DIZBKjdoE">IRS Lapsed Appropriations Contingency Plan</a> for more information on what is and is not operating at the IRS during the shutdown.</span></span></span></div>
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</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com1tag:blogger.com,1999:blog-5131605377978442972.post-75424461481941150332019-01-02T13:00:00.000-08:002019-01-02T15:58:33.020-08:00Form 1040 Redesign Reminder<h4 style="background-color: white; font-family: Helvetica;">
<span style="font-size: large;"><b>The IRS </b><strong>has redesigned the 2018 Form 1040. The Form 1040 will only include the most commonly used income, deductions, credits and payments. All other line items that were on the previous Form 1040 will now be included on six new schedules.</strong></span></h4>
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<div style="margin-bottom: 1em; margin-top: 1em;">
<br />
With this redesign the Form 1040A and 1040EZ have been eliminated.</div>
<br />
The <a href="https://www.irs.gov/pub/irs-pdf/f1040.pdf">2018 Form 1040</a> has been streamlined to only include the five most common types of income, federal withholding, EITC, Additional Child Tax Credit and the Education Credit. All other types of income, adjustments to income, nonrefundable, refundable credits, other payments and other taxes that existed on the 2017 Form 1040 have been moved to one of six new schedules:<br />
<br />
<ul>
<li><strong>Schedule 1 (Additional Income and Adjustments to Income)</strong></li>
</ul>
<ul>
<li><strong>Schedule 2 (Tax)</strong></li>
</ul>
<ul>
<li><strong>Schedule 3 (Non-refundable Credits)</strong></li>
</ul>
<ul>
<li><strong>Schedule 4 (Other Taxes)</strong></li>
</ul>
<ul>
<li><strong>Schedule 5 (Other Payments and Refundable Credits)</strong></li>
</ul>
<ul>
<li><strong>Schedule 6 (Foreign Address and Third Party Designee)</strong></li>
</ul>
<br />
<br />
The 2018 Form 1040 also has the following changes that are a result of the Tax Cuts and Jobs Act:<br />
<ul>
<li>Removal of exemption amount boxes and the total exemptions line.</li>
</ul>
<ul>
<li>Addition of check box for the new credit for other dependents for each dependent.</li>
</ul>
<ul>
<li>New line 9 for the new qualified business income deduction (20% deduction for pass-through business income – Sec 199A).</li>
</ul>
Visit the <a href="http://www.crosslinktax.com/customer-resources/Tax-Resource-Center.asp">CrossLink Tax Resource Center</a> today to learn more.<br />
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Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-4008583883860309242018-12-17T13:53:00.000-08:002018-12-17T13:53:02.344-08:00ACA Individual Penalty Still Applicable for 2018<br />
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</div>
<span style="font-family: Arial, sans-serif;"><span style="font-size: large;">The Tax Cuts and Jobs Act did remove the individual penalty
provision; however, it does not go into effect until 2019. Therefore, if an
individual did not have health insurance for all or part of 2018 and did not
qualify for an exemption they will owe a penalty on their 2018 federal return.</span></span><br />
<span style="font-family: Arial, sans-serif;"><span style="font-size: large;"><br /></span></span>
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<br /></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">If it is determined that an individual does owe a penalty
for 2018, it is calculated as <b><i>the greater of</i></b>: <o:p></o:p></span></div>
<div class="MsoListParagraph" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Arial",sans-serif;">2.5%
of the individual’s income that exceeds their 2018 filing threshold (standard
deduction for their filing status)<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">Or<o:p></o:p></span></div>
<div class="MsoListParagraph" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="font-family: "Arial",sans-serif; mso-ansi-language: EN;">A flat dollar amount that is assessed for the taxpayer,
spouse, and dependents as follows:</span><span style="font-family: "Arial",sans-serif;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="margin-left: 1.0in; mso-list: l0 level2 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN" style="font-family: "Arial",sans-serif; mso-ansi-language: EN;"> $695
for taxpayer, spouse, and dependents over age 18</span><span style="font-family: "Arial",sans-serif;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="margin-left: 1.0in; mso-list: l0 level2 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN" style="font-family: "Arial",sans-serif; mso-ansi-language: EN;">$347.50.50
for each dependent under age 18</span><span style="font-family: "Arial",sans-serif;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="margin-left: 1.0in; mso-list: l0 level2 lfo1; text-indent: -.25in;">
<span lang="EN" style="font-family: "Arial",sans-serif; mso-ansi-language: EN;"><br /></span></div>
<div class="MsoNormal">
<span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN;">The maximum family flat
dollar amount for 2018 is $2,085</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN;">See <i>pages 16 –
20 </i>of the draft 2018 <u><a href="https://www.irs.gov/pub/irs-dft/i8965--dft.pdf">Form 8965 instructions</a></u> for
more information on how the penalty is calculated.</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><br /></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">Health Care Coverage Exemptions</span></b><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">Most individuals who did not have health insurance for all
or part of 2018 probably qualified for an exemption. Therefore, it is important
that before any penalty is calculated that an individual determines whether
they may qualify for a health care coverage exemption.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">If an individual qualifies for a health care coverage
exemption they must complete the applicable parts of the 2018 <u><a href="https://www.irs.gov/pub/irs-pdf/f8965.pdf">Form 8965</a></u> (Health
Coverage Exemptions) and include it with their 2018 federal return.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">If an individual needs help in determining whether they
qualify for an exemption, a <b><u><a href="https://www.healthcare.gov/exemptions-tool/#/">Find Exemptions</a></u></b> tool
is available on the Healthcare.gov website.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<br /><br />
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-77698964341265150652018-12-11T14:30:00.000-08:002018-12-11T14:30:27.385-08:00IRS Tax Professional Data Theft Attacks<br />
<div class="MsoNormal">
</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Due to the increase in
cybercriminal attacks on tax professionals during 2018 the IRS is urging
practitioners to take steps to protect their computer networks.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This increase represents
a significant trend in tax-related identity theft, and it is a sign that tax
practitioners must take stronger measures to safeguard their clients and their
business.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The IRS also reminds all
professional tax preparers that they are required by federal law to create and
maintain a written data security plan. Sole practitioners are just as
vulnerable to data theft as practitioners in large firms.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span lang="EN" style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Here
are some common clues that data theft has occurred:</span><span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span lang="EN" style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
<ul type="disc">
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Client e-filed returns begin to
reject because returns with their Social Security numbers were already
filed;</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Clients who haven’t filed tax
returns begin to receive authentication letters (5071C, 4883C, 5747C) from
the IRS;</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Clients who haven’t filed tax
returns receive refunds; </span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Clients receive tax transcripts
that they did not request;</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">The number of returns filed with
tax practitioner’s Electronic Filing Identification Number (EFIN) exceeds
number of clients;</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Network computers running slower
than normal;</span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span lang="EN" style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Computer cursors moving or
changing numbers without touching the keyboard</span></li>
</ul>
<div>
<span style="font-family: Arial, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: black; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">See IRS News Release of
December 7 - <u><a href="https://www.irs.gov/newsroom/irs-security-summit-partners-warn-tax-professionals-of-high-risk-of-data-theft-attacks"><span style="color: blue;">IRS, Security Summit Partners warn tax professionals of high
risk of data theft attacks</span></a></u> for more information on the
increase of these attacks and on what basic security steps tax preparers should
take to protect themselves.<o:p></o:p></span></div>
<br /><br />
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-82898168178355109492018-12-06T05:39:00.000-08:002018-12-06T05:39:15.584-08:00Security Summit Partners Highlight New Password Guidance<br />
<div class="MsoNormal">
<span style="font-family: Arial, sans-serif; font-size: 14pt;">As part of National
Security Awareness Week the IRS, state tax agencies and the nation’s tax
industry is urging people to review new, stronger standards to protect the
passwords of their online accounts.</span></div>
<br />
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">These new standards are
a reflection of the new thinking on what a strong password is. The latest
guidance suggests using a passphrase such as a favorite line from a movie or a
series of associated words for their password. The idea is to create a
passphrase that can be remembered easily.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">The National Institute
of Standards and Technology or NIST last year rethought its guidance on
passwords and suggested three steps to build a better password:</span><span style="font-family: Arial, sans-serif; font-size: 13.5pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: Arial, sans-serif; font-size: 12pt;">Step 1</span></b><span style="font-family: Arial, sans-serif; font-size: 12pt;"> – Leverage your powers
of association. Identify associated items that have meaning to you. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, sans-serif; font-size: 13.5pt;"><br />
</span><b><span style="font-family: Arial, sans-serif; font-size: 12pt;">Step 2</span></b><span style="font-family: Arial, sans-serif; font-size: 12pt;"> – Make the associations
unique to you. Passphrases should be words that can go together in your head,
but no one else would ever suspect. Good example: Items in your living room
such as BlueCouchFlowerBamboo. Bad example: Names of your children.</span><span style="font-family: Arial, sans-serif; font-size: 13.5pt;"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: Arial, sans-serif; font-size: 12pt;">Step 3</span></b><span style="font-family: Arial, sans-serif; font-size: 12pt;"> – Picture this. Create
a passphrase that you can picture in your head. In our example, picture items
in your living room. The key is to create a passphrase that is hard for a
cybercriminal to guess but easy for you to remember</span><span style="font-family: Arial, sans-serif; font-size: 13.5pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">For more information see
the IRS News Release of Dec 4</span><span style="font-family: Arial, sans-serif; font-size: 13.5pt;"> - </span><u><span style="font-family: Arial, sans-serif; font-size: 12pt;"><a href="https://www.irs.gov/newsroom/security-summit-partners-highlight-new-password-guidance-urge-taxpayers-and-practitioners-to-protect-all-accounts"><span style="color: blue;">Security Summit Partners highlight new password guidance,
urge taxpayers and practitioners to protect all accounts</span></a></span></u><span style="font-family: Arial, sans-serif; font-size: 13.5pt;"><o:p></o:p></span></div>
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<br /></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-75388728691340680072018-11-29T11:01:00.001-08:002018-11-29T11:02:04.151-08:00Tax Update: Important Reminders for the Upcoming 2019 Filing Season<div style="margin-bottom: 6px; margin-top: 6px;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Important Reminders for the Upcoming 2019 Filing Season</span></b></div>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Delay in Federal Refunds for Returns that claim EITC or Additional Child Tax Credit</span></li>
</ul>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Affordable Care Act Penalty for 2018 returns</span></li>
</ul>
<ul>
<li><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;">Expiration of ITINs</span></li>
</ul>
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: large;"><br />Visit the CrossLink Tax Resource Center for detailed information: <a href="http://www.crosslinktax.com/tax-updates/Important-Reminders-for-the-Upcoming-2019-Filing-Season.asp">www.crosslinktax.com/tax-updates/Important-Reminders-for-the-Upcoming-2019-Filing-Season.asp </a></span><br />
<div style="background-color: white; color: #1d2129; margin-bottom: 6px; margin-top: 6px;">
</div>
<br />
<br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"></span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;">
</span></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-38040169416219681112018-11-07T14:41:00.001-08:002018-11-07T14:41:51.870-08:00TAX UPDATE: 2018 Child Tax Credit<div style="background-color: white; color: #1d2129; font-family: Helvetica, Arial, sans-serif; margin-bottom: 6px;">
<span style="font-size: large;">Remember the federal Child Tax Credit has the following changes:<br /></span></div>
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</div>
<ul>
<li><span style="font-size: large;">Child must have a valid Social Security Number<br /></span></li>
<li><span style="font-size: large;">Credit was increased to $2,000 per child of which $1,400 is eligible to be refundable<br /></span></li>
<li><span style="font-size: large;">New $500 nonrefundable credit for other dependents has been added for:</span></li>
<ul>
<li><span style="font-size: large;">Children that are 17, 18, or students</span></li>
<li><span style="font-size: large;">Other qualifying dependents</span></li>
<li><span style="font-size: large;">Qualified children under 17 that have an ITIN<br /></span></li>
</ul>
<li><span style="font-size: large;">Income phase out has been increased to $400,000 for joint filers ($200,000 for all others)</span></li>
</ul>
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<div style="font-family: inherit; margin-bottom: 6px; margin-top: 6px;">
<span style="font-size: large;">For more information see IRS news release – <a href="https://www.irs.gov/newsroom/get-ready-for-taxes-heres-how-the-new-tax-law-revised-family-tax-credits">Get Ready for Taxes: Here’s how the new tax law revised family tax credits</a></span></div>
</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-68284742986083092302018-11-05T12:07:00.001-08:002018-11-05T12:07:22.361-08:00New IRS Publication 5307 (Tax Reform Basics)<br />
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: large;">The IRS has
released a new publication that is designed to help taxpayers learn how Tax
Reform may affect their taxes for tax year 2018 and beyond. <span class="MsoHyperlink"><a href="https://www.irs.gov/pub/irs-pdf/p5307.pdf">Publication
5307</a></span> (Tax Reform Basics for Individuals and Families) gives an
overview of the Tax Cuts and Jobs Act and how it will affect individuals when
they file their 2018 federal return during the upcoming filing season.</span></div>
<br />Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-48388658078560206622018-11-05T11:59:00.000-08:002018-11-05T12:00:14.452-08:00Expiring ITINs<br />
<div style="background-color: white; color: #1d2129; font-family: Helvetica, Arial, sans-serif; margin-bottom: 6px;">
<span style="font-size: large;">The IRS is reminding taxpayers with expiring ITINs (if they have not done so already) to submit their renewal applications as soon as possible.</span></div>
<br />
<div style="background-color: white; color: #1d2129; font-family: Helvetica, Arial, sans-serif; margin-bottom: 6px; margin-top: 6px;">
<span style="font-size: large;">The IRS mailed more than 13 million letters to taxpayer households that included an ITIN holder with middle digits 73, 74, 75, 76, 77, 81 or 82 informing them that their ITINs were expiring at the end of 2018. Affected taxpayers who expect to file a tax return in 2019 should submit a renewal application now.</span><br />
<span style="font-size: large;"><br /></span></div>
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<div style="font-family: inherit; margin-bottom: 6px;">
<span style="font-size: large;">See IRS news release IR-2018-24 (Renew Expiring ITINs now to file a return next year) for further information on who needs to renew and how to renew an ITIN.</span></div>
</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-38953272814702267732018-11-01T10:05:00.001-07:002018-11-01T10:05:26.742-07:00IRS Press Release: "401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000"<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
IRS PRESS RELEASE</div>
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=====================</div>
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<br /></div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
IR-2018-211, Nov. 1, 2018</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The IRS today issued technical guidance detailing these items in <a data-entity-substitution="pup_linkit_media" data-entity-type="media" data-entity-uuid="1ca334d9-d1d7-4a8e-9906-498cf30683f2" href="https://www.irs.gov/pub/irs-drop/n-18-83.pdf" style="background-color: transparent; box-sizing: border-box; color: purple; line-height: 1.25em; transition: all 0.3s ease 0s;" title="Notice 2018-83">Notice 2018-83</a>.</div>
<h2 style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; line-height: 1.08333; margin-bottom: 10px; margin-top: 20px;">
Highlights of Changes for 2019</h2>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2019:</div>
<ul style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px; margin-top: 0px; padding-left: 1.5em;">
<li style="box-sizing: border-box;">For single taxpayers covered by a workplace retirement plan, the phase-out range is $64,000 to $74,000, up from $63,000 to $73,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $103,000 to $123,000, up from $101,000 to $121,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000, up from $189,000 and $199,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.</li>
</ul>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The income phase-out range for taxpayers making contributions to a Roth IRA is $122,000 to $137,000 for singles and heads of household, up from $120,000 to $135,000. For married couples filing jointly, the income phase-out range is $193,000 to $203,000, up from $189,000 to $199,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $64,000 for married couples filing jointly, up from $63,000; $48,000 for heads of household, up from $47,250; and $32,000 for singles and married individuals filing separately, up from $31,500.</div>
<h2 style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; line-height: 1.08333; margin-bottom: 10px; margin-top: 20px;">
Highlights of Limitations that Remain Unchanged from 2018</h2>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.</div>
<h2 style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; line-height: 1.08333; margin-bottom: 10px; margin-top: 20px;">
Detailed Description of Adjusted and Unchanged Limitations</h2>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
Section 415 of the Internal Revenue Code (Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost of living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under Section 415. Under Section 415(d), the adjustments are to be made following adjustment procedures similar to those used to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
Effective Jan. 1, 2019, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $220,000 to $225,000. For a participant who separated from service before Jan. 1, 2019, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2018, by 1.0264.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2019 from $55,000 to $56,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2019 are as follows:</div>
<ul style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px; margin-top: 0px; padding-left: 1.5em;">
<li style="box-sizing: border-box;">The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) is increased from $18,500 to $19,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $275,000 to $280,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is increased from $175,000 to $180,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a five year distribution period is increased from $1,105,000 to $1,130,000, while the dollar amount used to determine the lengthening of the five year distribution period is increased from $220,000 to $225,000.</li>
</ul>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) is increased from $120,000 to $125,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $6,000. The dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $3,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The annual compensation limitation under Section 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost of living adjustments to the compensation limitation under the plan under Section 401(a)(17) to be taken into account, is increased from $405,000 to $415,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The compensation amount under Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $600.<br style="box-sizing: border-box;" />The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts is increased from $12,500 to $13,000.<br style="box-sizing: border-box;" />The limitation on deferrals under Section 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations is increased from $18,500 to $19,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The limitation under Section 664(g)(7) concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan remains unchanged at $50,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The compensation amount under Section 1.61 21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation remains unchanged at $110,000. The compensation amount under Section 1.61 21(f)(5)(iii) is increased from $220,000 to $225,000.</div>
<div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin-bottom: 10px;">
The dollar limitation on premiums paid with respect to a qualifying longevity annuity contract under Section 1.401(a)(9)-6, A-17(b)(2)(i) of the Income Tax Regulations remains unchanged at $130,000.</div>
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The Code provides that the $1,000,000,000 threshold used to determine whether a multiemployer plan is a systemically important plan under Section 432(e)(9)(H)(v)(III)(aa) is adjusted using the cost-of-living adjustment provided under Section 432(e)(9)(H)(v)(III)(bb). After taking the applicable rounding rule into account, the threshold used to determine whether a multiemployer plan is a systemically important plan under Section 432(e)(9)(H)(v)(III)(aa) is increased for 2019 from $1,087,000,000 to $1,097,000,000.</div>
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The Code also provides that several retirement-related amounts are to be adjusted using the cost-of-living adjustment under Section 1(f)(3). After taking the applicable rounding rules into account, the amounts for 2019 are as follows:</div>
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<li style="box-sizing: border-box;">The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $38,000 to $38,500; the limitation under Section 25B(b)(1)(B) is increased from $41,000 to $41,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $63,000 to $64,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for taxpayers filing as head of household is increased from $28,500 to $28,875; the limitation under Section 25B(b)(1)(B) is increased from $30,750 to $31,125; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $47,250 to $48,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for all other taxpayers is increased from $19,000 to $19,250; the limitation under Section 25B(b)(1)(B) is increased from $20,500 to $20,750; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,500 to $32,000.<br style="box-sizing: border-box;" /> </li>
<li style="box-sizing: border-box;">The deductible amount under Section 219(b)(5)(A) for an individual making qualified retirement contributions is increased from $5,500 to $6,000.</li>
</ul>
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The applicable dollar amount under Section 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) increased from $101,000 to $103,000. The applicable dollar amount under Section 219(g)(3)(B)(ii) for all other taxpayers who are active participants (other than married taxpayers filing separate returns) increased from $63,000 to $64,000. If an individual or the individual’s spouse is an active participant, the applicable dollar amount under Section 219(g)(3)(B)(iii) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0. The applicable dollar amount under Section 219(g)(7)(A) for a taxpayer who is not an active participant but whose spouse is an active participant is increased from $189,000 to $193,000.</div>
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The adjusted gross income limitation under Section 408A(c)(3)(B)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $189,000 to $193,000. The adjusted gross income limitation under Section 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $120,000 to $122,000. The applicable dollar amount under Section 408A(c)(3)(B)(ii)(III) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0.</div>
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Link to original IRS press release: www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-3986429424022162412018-10-18T14:47:00.002-07:002018-10-18T14:47:36.568-07:002018 Depreciation Changes<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Here is a reminder of what changes the Tax Cuts and Jobs Act has made to depreciating assets for 2018 federal returns:</div>
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<strong style="box-sizing: border-box; line-height: inherit;">100% Bonus Depreciation</strong><br style="box-sizing: border-box;" />100% bonus depreciation may be taken for qualifying new or used property acquired September 28, 2017 – December 31, 2022.</div>
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For more information see the following on the IRS website:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;"><a href="https://www.irs.gov/newsroom/additional-first-year-depreciation-deduction-bonus-faq" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">Additional First Year Depreciation Deduction (Bonus) FAQs</a></li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">IRS Tax Reform Tip 2018 -57 - <a href="https://www.irs.gov/newsroom/new-100-percent-depreciation-deduction-benefits-business-taxpayers" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">New 100-percent depreciation deduction benefits business taxpayers</a></li>
</ul>
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<strong style="box-sizing: border-box; line-height: inherit;">Depreciation Limits for Autos and Personal Use Property</strong><br style="box-sizing: border-box;" />The yearly limitations for passenger autos placed in service during 2018 are:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$10,000 for year placed in service</li>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">If bonus depreciation is claimed the first year limit is $18,000</li>
</ul>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$16,000 for year 2</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$9,600 for year 3</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$5,760 for year 4 and later</li>
</ul>
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<strong style="box-sizing: border-box; line-height: inherit;">Section 179 Expense</strong><br style="box-sizing: border-box;" />For 2018 the maximum amount that can be taken as a Section 179 expense is $1,000,000 which begins to phase out when total asset purchases reaches $2,500,000 for the year.</div>
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The following property now is eligible for Section 179 expensing:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Qualified improvement property made to a building’s interior with the exception if it is for the enlargement of the building, any elevator or escalator or the internal framework of the building</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Roofs, HVAC, fire protection systems, alarm systems and security systems</li>
</ul>
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<strong style="box-sizing: border-box; line-height: inherit;">Depreciation of Improvements on business property</strong><br style="box-sizing: border-box;" />A new qualified improvement property category has been created which replaces the old qualified leasehold improvement, qualified restaurant and qualified retail improvement property categories.</div>
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The new qualified improvement property has a general 15 recovery period. However unless Congress makes a technical correction, qualified improvement property must be depreciated over 39 years and does not qualify for 100% bonus depreciation.</div>
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<strong style="box-sizing: border-box; line-height: inherit;">Farm Property Depreciation</strong><br style="box-sizing: border-box;" />Beginning in 2018 the recovery period for machinery and equipment used on a farm is 5 years (it was 7 years). This does not apply to grain bins, cotton ginning assets, fence or other land improvements.</div>
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The Tax Cuts and Jobs Act repealed the requirement to use the 150 percent declining balance method for property used in a framing business (i.e. for 3, 5, 7 or 10 year property).</div>
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For more details on the above depreciation changes see IRS Fact Sheet FS-2018-9 - <a href="https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act</a> on the IRS Tax Reform page of their website.</div>
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<b>Visit the <a href="http://www.crosslinktax.com/customer-resources/Tax-Resource-Center.asp">CrossLink Tax Resource Center</a> to learn more.</b></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com1tag:blogger.com,1999:blog-5131605377978442972.post-593175282349616382018-10-03T05:00:00.000-07:002018-10-03T05:00:06.552-07:002018 Tax Law Changes that are Directly Reported on Form 1040<span style="background-color: white; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px;"><i>October 3, 2018</i></span><br />
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<span style="background-color: white; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px;">As a reminder, the Tax Cuts and Jobs Act made a number of changes to provisions that are reported directly on Form 1040 or the new 1040 Schedules 1 - 6. Here are the provisions that will affect most taxpayers:</span><br />
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">ACA Penalty for not having Health Insurance</em></strong><br style="box-sizing: border-box;" />Although not a change want to remind you that the shared responsibility payment (penalty) for not having health insurance still applies for 2018 federal returns. Therefore if an individual did not have health insurance for all or part of 2018 they will either need to qualify for an exemption and complete Form 8965 or include a penalty amount on Form 1040, Schedule 4, line 61.</div>
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The penalty goes away beginning in 2019.</div>
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">Standard Deduction</em></strong> was increased beginning in 2018 to:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$12,000 – Single</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$24,000 – Married Filing Joint</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">$18,000 – Head of Household</li>
</ul>
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The additional standard deduction for the Aged and Blind still applies.</div>
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">Exemptions </em></strong>were eliminated. Therefore the exemption boxes for the taxpayer, spouse and dependents were eliminated and the line for totaling the exemptions were removed from 1040.</div>
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">Child Tax Credit</em></strong> had the following changes:</div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Increased the credit to $2,000 per child of which $1,400 is eligible to be refundable. The age limit to qualify for the child tax credit remains at children under the age of 17.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Child <strong style="box-sizing: border-box; line-height: inherit;">must</strong> have a Social Security Number to be eligible for the child tax credit.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The earned income threshold for the refundable portion of the child tax credit has been lowered to $2,500.</li>
</ul>
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">Other Dependent Credit</em></strong></div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Created new $500 nonrefundable other dependent credit for:</li>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Children that are 17, 18, or students</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Other qualifying dependents</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Qualified children under 17 with an ITIN</li>
</ul>
</ul>
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">Moving Expenses</em></strong></div>
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<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The moving expense adjustment to income (Form 1040, Schedule 1, 26) is only allowed for members of the armed forces.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Moving expense reimbursements may no longer be excluded from income.</li>
</ul>
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<strong style="box-sizing: border-box; line-height: inherit;"><em style="box-sizing: border-box; line-height: inherit;">Tax Rates</em></strong> <br style="box-sizing: border-box;" />The tax rates and brackets for 2018 for Single and Married Filing Joint filing status’ are:</div>
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<tr style="box-sizing: border-box;"><th style="box-sizing: border-box; font-size: 0.875rem; margin: 0px; padding: 0.5625rem 0.625rem;" valign="middle" width="20%"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; font-weight: normal; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Rate</div>
</th><th style="box-sizing: border-box; font-size: 0.875rem; margin: 0px; padding: 0.5625rem 0.625rem;" valign="middle" width="40%"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; font-weight: normal; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Unmarried Individuals</div>
</th><th style="box-sizing: border-box; font-size: 0.875rem; margin: 0px; padding: 0.5625rem 0.625rem;" valign="middle" width="40%"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; font-weight: normal; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Married Filing Joint</div>
</th></tr>
<tr style="background-attachment: initial; background-clip: initial; background-color: rgb(213, 213, 213) !important; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; box-sizing: border-box;"><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
10%</div>
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Up to $9,525</div>
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Up to $19,050</div>
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12%</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$9,526 - $38,700</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$19,501 - $77,400</div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-color: rgb(213, 213, 213) !important; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; box-sizing: border-box;"><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
22%</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$38,701 - $82,500</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$77,401 - $165,000</div>
</td></tr>
<tr style="box-sizing: border-box;"><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
24%</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$82,501 - $157,500</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$165,001 - $315,000</div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-color: rgb(213, 213, 213) !important; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; box-sizing: border-box;"><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
32%</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$157,501 - $200,000</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$315,001 - $400,000</div>
</td></tr>
<tr style="box-sizing: border-box;"><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
35%</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$201,001 - $500,000</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
$400,001 - $600,000</div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-color: rgb(213, 213, 213) !important; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; box-sizing: border-box;"><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
37%</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Over $500,000</div>
</td><td style="box-sizing: border-box; font-size: 0.875rem; line-height: 1.125rem; margin: 0px; padding: 0.5625rem 0.625rem;"><div align="center" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Over $600,000</div>
</td></tr>
</tbody></table>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
For more information on the above provisions and other provisions in the Tax Cuts and Jobs Act see the following:</div>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Crosslink Tax Resource Center – <a href="http://www.crosslinktax.com/tax-updates/Federal-Tax-Law-Changes-Included-in-the-Tax-Cuts-and-Jobs-Act.asp#.W65FIeLruM8" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">Federal Tax Law Changes Included in the Tax Cuts and Jobs Act</a></li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;"><a href="https://www.irs.gov/tax-reform" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">IRS Tax Reform</a> page on IRS website – Latest information on the implementation of the Tax Cuts and Jobs Act</li>
</ul>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-23191114479639489262018-09-28T12:59:00.003-07:002018-09-28T12:59:59.230-07:00IRS Tax Transcripts Changes<br />
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
In a move to better protect taxpayer data the Internal Revenue Service is revising the format of taxpayer tax transcript that will partially redact certain identifying information. The new tax transcript will be available to the taxpayer or tax professionals beginning on September 23.</div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
The IRS is making these changes because the tax transcript has become a sought after document by identity thieves. This is because in order to try and get past the IRS fraud filters the identity thieves need to create a return that looks like what the taxpayer has filed in the past. Therefore the criminals are attempting to pose as taxpayers or tax preparers in order to obtain the tax transcripts for prior year returns of individuals.</div>
<span style="background-color: white; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px;">The new format of tax transcripts will now partially redact the following identifying information:</span><br />
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
</div>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Last 4 digits of:</li>
<ul style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Any SSN on the transcript</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Any EIN listed on the transcript</li>
</ul>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">First 4 characters of:</li>
<ul style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Account or telephone number</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Business name</li>
</ul>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">First 6 characters of street address, including spaces</li>
</ul>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
The new tax transcript will include all money amounts, including balance due, interest and penalties.</div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
The IRS has also created a new Customer File Number that lenders, colleges and other third parties that order transcripts for non-tax purposes will use as an identifying number instead of the taxpayer’s SSN.</div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
For more details see the following of the IRS website:</div>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">IRS News Release of August 22 – <a href="https://www.irs.gov/newsroom/irs-to-introduce-new-tax-transcript-to-better-protect-taxpayer-data" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">IRS to introduce new tax transcript to better protect taxpayer data</a></li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;"><a href="https://www.irs.gov/individuals/about-the-new-tax-transcript-faqs" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">About the New Transcript FAQs</a></li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Sample of <a href="https://www.irs.gov/pub/irs-utl/New_Tax_Return_Transcript.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">New Tax Transcript</a></li>
</ul>
<div>
<span style="color: #222222; font-family: Open Sans, Verdana, sans-serif;"><br /></span></div>
<div>
<span style="color: #222222; font-family: Open Sans, Verdana, sans-serif;">Learn more in the <a href="http://www.crosslinktax.com/customer-resources/Tax-Resource-Center.asp">CrossLink Tax Resource Center</a>.</span></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-59084186531567929972018-08-29T15:21:00.002-07:002018-08-29T15:21:35.631-07:00Revised 2018 Schedule A<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
The Tax Cuts and Jobs Act made several changes to itemized deductions that will be in effect from 2018 – 2025. Due to these changes the 2018 Schedule A has been revised as follows:</div>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Lines on the Schedule A have been renumbered.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Taxes You Paid Section has been altered as follows:</li>
<ul style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Line 5a – 5e: Includes Real Estate taxes, state and local income taxes/general sales tax and personal property tax with a subtotal line and a total deductible line for the lesser of the total of these taxes or $10,000.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">Line 6 – For other deductible taxes that are not limited.</li>
</ul>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The Job Expenses and Certain Miscellaneous Deductions subject to 2% of AGI section was eliminated (old Lines 21 – 27).</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The checkboxes for limiting itemized deductions have been removed.</li>
</ul>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
For more details see the draft of the <a href="https://www.irs.gov/pub/irs-dft/f1040sa--dft.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">2018 Schedule A</a> on the IRS website.</div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Click <a href="http://www.crosslinktax.com/tax-updates/Revised-2018-Schedule-A-due-to-Tax-Cuts-and-Jobs-Act-Changes-to-Itemized-Deductions.asp#.W4cOgSRKiM8">here</a> to read the full article in the <a href="http://www.crosslinktax.com/customer-resources/Tax-Resource-Center.asp">CrossLink Tax Resource Center</a>.</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com1tag:blogger.com,1999:blog-5131605377978442972.post-69777766519139811382018-08-28T12:13:00.002-07:002018-08-28T12:15:21.592-07:00Tax Security 101: Security Summit reminds professional tax preparers of data security plan requirements<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">IRS Press Release</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">======================</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">IR-2018-175, Aug. 28,
2018<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">WASHINGTON — The
Internal Revenue Service and Security Summit partners reminded tax
professionals that protecting taxpayer information isn’t just good for the
clients and good for business – it’s also the law.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The Summit partners
urged tax professionals to be aware of their obligations to protect client data
and to cooperate with any IRS investigation related to data theft.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The IRS has a number
of publications to help tax professionals navigate tax-related rules and
regulations related to protecting data. In addition, the IRS, state tax
agencies and the tax industry today reminded tax return preparers that a 1999
law requires that they create and implement a data security plan.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">This is the eighth in
a series called “<a href="https://www.irs.gov/newsroom/protect-your-clients-protect-yourself-tax-security-101" title="Protect Your Clients; Protect Yourself: Tax Security 101"><span style="color: purple;">Protect Your Clients; Protect Yourself: Tax Security 101</span></a>.”
The Security Summit awareness campaign is intended to provide tax professionals
with the basic information they need to better protect taxpayer data and to
help prevent the filing of fraudulent tax returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">Although the Security
Summit is making progress against tax-related identity theft, cybercriminals
continue to evolve, and data thefts at tax professionals’ offices are on the
rise. Thieves use stolen data from tax practitioners to create fraudulent
returns that are harder to detect.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The Financial Services
Modernization Act of 1999, also known as the Gramm-Leach-Bliley (GLB) Act,
gives the Federal Trade Commission authority to set information safeguard
regulations for various entities, including professional tax return preparers.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">According to the
FTC <a href="https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying" title="FTC Safeguards Rule regulations"><span style="color: purple;">Safeguards
Rule</span></a>, tax return preparers must create and enact security plans to
protect client data. Failure to do so may result in an FTC investigation. The
IRS also may treat a violation of the FTC Safeguards Rule as a violation of
IRS <a href="https://www.irs.gov/irb/2007-26_IRB" title="Internal Revenue Bulletin: 2007-26"><span style="color: purple;">Revenue
Procedure 2007-40</span></a>, which sets the rules for tax professionals
participating as an Authorized IRS e-file Provider.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">In addition, members
of the IRS Electronic Tax Administration Advisory Committee (ETAAC) in June
noted that they believe “far fewer than half of tax professionals are aware of
their responsibilities under the FTC Safeguards rule and that even fewer
professionals …have implemented required security practices.”<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The FTC-required
information security plan must be appropriate to the company’s size and
complexity, the nature and scope of its activities and the sensitivity of the
customer information it handles. According to the FTC, each company, as part of
its plan, must:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , "sans-serif"; font-size: 12.0pt;">designate one or more employees
to coordinate its information security program;<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , "sans-serif"; font-size: 12.0pt;">identify and assess the risks
to customer information in each relevant area of the company’s operation
and evaluate the effectiveness of the current safeguards for controlling
these risks;<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , "sans-serif"; font-size: 12.0pt;">design and implement a
safeguards program and regularly monitor and test it;<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , "sans-serif"; font-size: 12.0pt;">select service providers that
can maintain appropriate safeguards, make sure the contract requires them
to maintain safeguards and oversee their handling of customer information;
and<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , "sans-serif"; font-size: 12.0pt;">evaluate and adjust the program
in light of relevant circumstances, including changes in the firm’s
business or operations, or the results of security testing and monitoring.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The FTC says the
requirements are designed to be flexible so that companies can implement
safeguards appropriate to their own circumstances. The Safeguards Rule requires
companies to assess and address the risks to customer information in all areas
of their operations.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The IRS has
revised <a href="https://www.irs.gov/pub/irs-pdf/p4557.pdf" title="Publication 4557, Safeguarding Taxpayer Data"><span style="color: purple;">Publication
4557</span></a>, Safeguarding Taxpayer Data, to detail critical security
measures that all tax professionals should enact. The publication also includes
information on how to comply with the FTC Safeguards Rule, including a
checklist of items for a prospective data security plan.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">The IRS and certain
Internal Revenue Code (IRC) sections also focus on protection of taxpayer
information and requirements of tax professionals. Here are a few examples:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">IRS Publication
3112 </span></b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">- IRS e-File
Application and Participation, states: Safeguarding of IRS e-file from fraud
and abuse is the shared responsibility of the IRS and Authorized IRS e-file
Providers. Providers must be diligent in recognizing fraud and abuse, reporting
it to the IRS, and preventing it when possible. Providers must also cooperate
with the IRS’ investigations by making available to the IRS upon request
information and documents related to returns with potential fraud or abuse.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">IRC, Section
7216 </span></b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">- This provision
imposes criminal penalties on any person engaged in the business of preparing
or providing services in connection with the preparation of tax returns who
knowingly or recklessly makes unauthorized disclosures or uses information
furnished to them in connection with the preparation of an income tax return.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">IRC, Section
6713 </span></b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">- This provision
imposes monetary penalties on the unauthorized disclosures or uses of taxpayer
information by any person engaged in the business of preparing or providing
services in connection with the preparation of tax returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">Rev. Proc.
2007-40 </span></b><span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">- This procedure
requires authorized IRS e-file providers to have security systems in place to
prevent unauthorized access to taxpayer accounts and personal information by
third parties. It also specifies that violations of the GLB Act and the
implementing rules and regulations put into effect by the FTC, as well as
violations of non-disclosure rules addressed in IRC sections 6713 and 7216, are
considered violations of Revenue Procedure 2007-40. These violations are
subject to penalties or sanctions specified in the Revenue Procedure.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">Many state laws govern
or relate to the privacy and security of financial data, which includes
taxpayer data. They extend rights and remedies to consumers by requiring
individuals and businesses that offer financial services to safeguard nonpublic
personal information. For more information on state laws that businesses must
follow, consult state laws and regulations.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">In some states, data
thefts must be reported to various authorities. To help tax professionals find
where to report data security incidents at the state level, the Federation of
Tax Administrators has created a <a href="http://www.taxadmin.org/state-id-theft-resources" title="State ID Theft Resources"><span style="color: purple;">special page</span></a> with
state-by-state listings. To notify the IRS in case of data theft, contact local
IRS <a href="https://www.irs.gov/businesses/small-businesses-self-employed/stakeholder-liaison-local-contacts" title="Stakeholder Liaison Local Contacts "><span style="color: purple;">Stakeholder
Liaisons</span></a>.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">Tax professionals also
can get help with security recommendations by reviewing the recently revised
IRS <a href="https://www.irs.gov/pub/irs-pdf/p4557.pdf" title="Publication 4557, Safeguarding Taxpayer Data"><span style="color: purple;">Publication
4557</span></a>, Safeguarding Taxpayer Data, and <a href="http://nvlpubs.nist.gov/nistpubs/ir/2016/NIST.IR.7621r1.pdf" title="Small Business Information Security: The Fundamentals"><span style="color: purple;">Small Business Information Security: the Fundamentals</span></a> by
the National Institute of Standards and Technology.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;"><a href="https://www.irs.gov/pub/irs-pdf/p5293.pdf" title="Publication 5293, Data Security Resource Guide for Tax Professionals"><span style="color: purple;">Publication 5293</span></a>, Data Security Resource Guide
for Tax Professionals, provides a compilation of data theft information
available on IRS.gov. Also, tax professionals should stay connected to the IRS
through subscriptions to <a href="https://www.irs.gov/e-file-providers/join-e-news-for-tax-professionals" title="Join e-News for Tax Professionals"><span style="color: purple;">e-News for
Tax Professionals</span></a>, <a href="https://www.irs.gov/e-file-providers/subscribe-to-quick-alerts" title="Subscribe To Quick Alerts"><span style="color: purple;">QuickAlerts</span></a> and <a href="https://www.irs.gov/newsroom/irs-new-media-1" title="IRS New Media 1"><span style="color: purple;">Social Media</span></a>.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">To improve data
security awareness by all tax professionals, the IRS will host a webinar on
Sept. 26, 2018. The focus will be on the same topics as this series: “Protect
Your Clients; Protect Yourself: Tax Security 101.” Although tax preparers will
be eligible for one CPE credit, the IRS invites others working on tax issues to
attend. Protecting taxpayer information takes everyone working together.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<o:p><span style="background-color: white; color: #333333; font-family: "arial" , sans-serif; font-size: 16px;">======================</span></o:p></div>
<div class="MsoNormal">
<o:p><span style="background-color: white; color: #333333; font-family: "arial" , sans-serif; font-size: 16px;"><br /></span></o:p></div>
<div class="MsoNormal">
<o:p><span style="background-color: white; color: #333333; font-family: "arial" , sans-serif; font-size: 16px;">Read the original <a href="https://www.irs.gov/newsroom/tax-security-101-security-summit-reminds-professional-tax-preparers-of-data-security-plan-requirements">IRS Press Release here</a>.</span></o:p></div>
<br />Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com4tag:blogger.com,1999:blog-5131605377978442972.post-33243632107234824172018-08-14T08:49:00.002-07:002018-08-14T08:49:47.951-07:00Tax Security 101: Tax professionals must maintain, protect EFINs; Monitor EFINs, PTINs and CAF numbers<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">IRS Press Release:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">========================<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">WASHINGTON — The
Internal Revenue Service and the Security Summit partners warned tax
professionals that savvy cybercriminals target IRS-issued identification
numbers to help impersonate practitioners as well as taxpayers.</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">To help protect
against this threat used on the Dark Web, the IRS, state tax agencies and the
tax industry reminded practitioners that they must maintain, monitor and
protect their Electronic Filing Identification Numbers (EFINs) as well as keep
tabs on their Preparer Tax Identification Numbers (PTINs) and Centralized
Authorization File (CAF) numbers.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This is the sixth in a
series called "<a href="https://www.irs.gov/newsroom/protect-your-clients-protect-yourself-tax-security-101" title="Protect Your Clients; Protect Yourself: Tax Security 101"><span style="color: purple;">Protect Your Clients; Protect Yourself: Tax Security 101</span></a>."
The Security Summit awareness campaign is intended to provide tax professionals
with the basic information they need to better protect taxpayer data and to
help prevent the filing of fraudulent tax returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Although the Security
Summit -- a partnership between the IRS, states and the private-sector tax
community -- is making progress against tax-related identity theft,
cybercriminals continue to evolve, and data theft at tax professionals’ offices
is on the rise. Thieves use stolen data from tax practitioners to create
fraudulent returns that are harder to detect.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Cybercriminals
sometimes post stolen EFINs, PTINs and CAF numbers on the Dark Web as a crime
kit for identity thieves who can then file fraudulent tax returns. EFINs are
necessary for tax professionals or their firms to file client returns
electronically. PTINs are issued to those who, for a fee, prepare tax returns
or claims for refund. CAF numbers are issued when tax practitioners or their
firms file a request for third-party access to client files.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">These identification
numbers may only be obtained directly from the IRS.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Here’s what tax
professionals can do to protect these important numbers from identity thieves:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-outline-level: 2;">
<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Maintaining EFINs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Once a tax professional
has completed the EFIN application process and received an EFIN, it is
important that they keep their account up-to-date at all times. This includes:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Review the e-file application
periodically. Tax professionals’ e-file application must be updated within
30 days of any changes such as individuals involved, addresses or
telephone numbers. Failure to do so may result in the inactivation of an
EFIN.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Ensure proper individuals are
identified on the application, and update as necessary. The principal
listed on the application is the individual authorized to act for the
business in any legal or tax matters. Periodically access the account.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Add any new principals or
responsible officials promptly.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Update any business address
changes, including adding new locations.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">EFINs are not transferable; if
selling the businesses, the new principals must obtain their own EFIN.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">There must be an EFIN
application for each office location; for those expanding their business,
an application is required for each location where e-file transmissions
will occur.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-outline-level: 2;">
<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Monitoring EFINs, PTINs and CAFs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Tax professionals can
obtain a weekly report of the number of tax returns filed with their EFIN and
PTIN. For PTIN holders, only those preparers who are attorneys, CPAs, enrolled
agents or Annual Filing Season Program participants and who file 50 or more
returns may obtain PTIN information. Weekly checks will help flag any abuses by
cybercriminals. Here’s how:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For EFIN totals:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l3 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Access the e-Services account
and the EFIN application;<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l3 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Select “EFIN Status” from the
application;<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l3 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Contact the IRS e-help Desk if
the return totals exceed the number of returns filed.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For PTIN totals:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Access the online PTIN account;<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Select “View Returns Filed Per
PTIN;”<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo3; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Complete Form 14157, Complaint:
Tax Return Preparer, to report excessive use or misuse of PTIN.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For those with a
Centralized Authorization File (CAF) number, make sure to keep authorizations
up to date. Tax professionals should make an annual review to identify
outstanding third-party authorizations for people who are no longer their
clients. It is important that tax professionals remove authorizations for
taxpayers who are no longer their clients.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">See “Withdrawal of
Representation” in <a href="https://www.irs.gov/pub/irs-pdf/p947.pdf" title="Publication 947, Practice Before the IRS and Power of Attorney"><span style="color: purple;">Publication 947</span></a>, Practice Before the IRS and
Power of Attorney. Information also is available in the instructions for Form
2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax
Information Authorization, for additional information on withdrawing
representation.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-outline-level: 2;">
<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Protecting EFINs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The same good security
habits for protecting client data also can protect the EFIN. Those include the
use of strong anti-virus software, strong and unique passwords, two-factor
authentication where available.<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l2 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Learn to recognize and avoid
phishing scams; do not open links or attachments from suspicious emails,
most data thefts begin with a phishing email.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l2 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Secure all devices with
security software and let it automatically update.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l2 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use strong passwords of eight
or more mixed characters; use phrases that are easily remembered and
password protect all wireless devices.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l2 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Encrypt all sensitive
files/emails and use strong password protections.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l2 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Backup sensitive data to a safe
and secure external source not connected fulltime to the network.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l2 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wipe clean or destroy old
computer hard drives that contain sensitive data.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In addition to these
steps, the Security Summit reminds all professional tax preparers that they
must have a written data security plan as required by the Federal Trade
Commission and its <a href="https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying" title="FTC Safeguards Rule regulations"><span style="color: purple;">Safeguards
Rule</span></a>. They can get help with security recommendations by reviewing
the recently revised IRS <a href="https://www.irs.gov/pub/irs-pdf/p4557.pdf" title="Publication 4557, Safeguarding Taxpayer Data"><span style="color: purple;">Publication
4557</span></a>, <a href="http://nvlpubs.nist.gov/nistpubs/ir/2016/NIST.IR.7621r1.pdf" title="Small Business Information Security: The Fundamentals"><span style="color: purple;">Safeguarding Taxpayer Data, and Small Business Information
Security: the Fundamentals</span></a> by the National Institute of
Standards and Technology.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><a href="https://www.irs.gov/pub/irs-pdf/p5293.pdf" title="Publication 5293, Data Security Resource Guide for Tax Professionals"><span style="color: purple;">Publication 5293</span></a>, Data Security Resource Guide
for Tax Professionals, provides a compilation of data theft information
available on IRS.gov. Also, tax professionals should stay connected to the IRS
through subscriptions to <a href="https://www.irs.gov/e-file-providers/join-e-news-for-tax-professionals" title="Join e News for Tax Professionals"><span style="color: purple;">e-News for
Tax Professionals</span></a>, <a href="https://www.irs.gov/e-file-providers/subscribe-to-quick-alerts" title="Subscribe To Quick Alerts"><span style="color: purple;">QuickAlerts</span></a> and <a href="https://www.irs.gov/newsroom/irs-new-media-1" title="IRS New Media 1"><span style="color: purple;">Social Media</span></a>.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">========================<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Read the original<a href="https://www.irs.gov/newsroom/tax-security-101-tax-professionals-must-maintain-protect-efins-monitor-efins-ptins-and-caf-numbers"> IRS Press Release here</a>.<o:p></o:p></span></div>
<br />Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-43552609055270497972018-08-13T09:06:00.002-07:002018-08-13T09:06:24.059-07:002018 Expansion of Preparer Due Diligence Requirements<span style="background-color: white; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px;">The Tax Cuts and Jobs Act expanded the preparer due diligence requirements to include the Head of Household filing status and the new credit for other dependents beginning with 2018 individual returns.</span><br />
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Recently the IRS released a draft of the 2018 Form 8867 (Paid Preparer’s Due Diligence Checklist) which included the changes needed for this expansion as follows:</div>
<ul style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; list-style-position: outside; margin: 0px 0px 1.25rem 1.1rem; padding: 0px;">
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">New checkbox for Head of Household has been added to Part I which covers due diligence questions 1 - 8 that apply to the four credits and the head of household filing status.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">The new credit for other dependents has been added as part of the child tax credit checkbox on Part I.</li>
<li style="box-sizing: border-box; margin: 0px; padding: 0px;">New Section V has been added which includes a question for the head of household status.</li>
</ul>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
For more details on what these changes are see the draft of the <a href="https://www.irs.gov/pub/irs-dft/f8867--dft.pdf" style="background: transparent; box-sizing: border-box; color: #008cba; line-height: inherit; text-decoration-line: none;" target="_blank">2018 Form 8867</a>on the IRS website.</div>
<div style="background-color: white; box-sizing: border-box; color: #222222; font-family: "Open Sans", Verdana, sans-serif; font-size: 16px; line-height: 1.6; margin-bottom: 1.25rem; padding: 0px; text-rendering: optimizeLegibility;">
Also, be aware that the Section 6695 penalty amount for failure to comply with the preparer due diligence requirements has been increased to $520 for each of the applicable credits and the head of household filing status for 2018 returns. This could result in a $2,080 penalty per return if all the applicable credits are claimed, the head of household filing status is used and the IRS determines that the preparer did not follow their due diligence requirements.</div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-26661444341029404102018-08-07T11:54:00.001-07:002018-08-07T11:54:28.984-07:00Tax Security 101 – Tax professionals victimized by data thefts offer hard-won security lessons to colleagues<div class="MsoNormal" style="background: white; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">IRS Press Release:</span></div>
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<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">==============</span></div>
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<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;"><br /></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">IR-2018-161, Aug. 7,
2018<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">WASHINGTON — As
cybercriminals continue to increasingly pursue tax professionals’ data, the
Internal Revenue Service and the Security Summit partners today released
lessons learned by victims in the tax community to help others avoid being
targeted by identity thieves.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In recent years,
hundreds of tax professionals experienced data thefts or breaches that exposed
their clients’ personal information to cybercriminals and to tax-related
identity theft.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Today, several of
those tax professionals offer their suggestions to their colleagues, actions
they wish they had taken to safeguard their customers and their businesses. The
tips range from taking out cyber insurance to using stronger private networks.
These suggestions – pulled anonymously from victimized professionals -- offer
an opportunity for the tax community to learn from these common mistakes and
avoid a devastating data loss for their clients and their business.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This is the fifth in a
series called "<a href="https://www.irs.gov/newsroom/protect-your-clients-protect-yourself-tax-security-101" title="Protect Your Clients; Protect Yourself: Tax Security 101"><span style="color: purple;">Protect Your Clients; Protect Yourself: Tax Security 101</span></a>."
The Security Summit awareness campaign is intended to provide tax professionals
with the basic information they need to better protect taxpayer data and help
prevent the filing of fraudulent tax returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Although the Security
Summit -- a partnership between the IRS, states and the private-sector tax
community -- is making progress against tax-related identity theft,
cybercriminals continue to evolve, and data thefts at tax professionals’
offices is on the rise. Thieves use stolen data from tax practitioners to
create fraudulent returns that can be harder to detect and harder to
distinguish from legitimate taxpayer returns.<o:p></o:p></span></div>
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<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Lesson: Get cyber insurance coverage<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">A common refrain from
tax professionals who have been victimized by cybercriminals is they either
were glad they had – or wish they had – insurance coverage for data loss.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Many tax professionals
maintain business policies that may cover property and liability, but it may
not fully coverage data thefts. Tax professionals victimized by these crimes
recommend they also explore cyber coverage for data breaches. This may require
an addendum or rider to the policy. Practitioners also suggest that that the
dollar amount of the policy be large enough to cover expenses.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Some insurance
companies provide teams of experts in the event of a data theft, assisting tax
professionals in identifying the source of the data breach and resolving it.
These teams may also help notify clients or provide extended protections. Just
as important, these teams of experts may assist tax professionals proactively,
helping make sure adequate safeguards are in place to prevent a data theft.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Another
recommendation: If using cloud storage, ask the cloud service provider
about cyber insurance coverage in case the provider’s systems are breached.<o:p></o:p></span></div>
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<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Lesson: Password protect each client account<o:p></o:p></span></b></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Many tax software
products also enable tax professionals to password protect each client account.
Tax professionals who have experienced data thefts acknowledge that this can be
a hassle, but worth the trouble should they experience a breach. They suggest
password-protecting every account as a critical safeguard against cyberthieves.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Strong passwords can
help prevent cybercriminals from accessing computer systems and accounts.
Passwords should be eight characters or longer, a mix of letters, special characters
and numbers, include an easy to remember phrase and be unique for each account.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">See <a href="https://www.irs.gov/newsroom/protect-your-clients-protect-yourself-tax-security-101" title="Protect Your Clients; Protect Yourself: Tax Security 101"><span style="color: purple;">Protect Your Clients, Protect Yourself: Tax Security 101</span></a> for
more information on passwords and encryption.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-outline-level: 2;">
<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Lesson: Use a virtual private network (VPN)
for remote connections<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Tax professionals who
have been victimized also wish they had used a virtual private network (VPN)
instead of remote access software. A VPN allows for teleworkers or branch
offices to securely connect to the firm’s computer system and to send and
receive information.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">There have been cases
where cybercriminals have taken over remote access of a tax professionals’
computer systems. In one example, the thieves remotely accessed client accounts
via the tax pro’s computer, completed and e-filed pending returns and changed
the deposit information to their own accounts.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Technology media often
provide lists of top VPN services.<o:p></o:p></span></div>
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<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Lesson: Keep all security software updated<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Tax professionals who
experienced data thefts also suggest colleagues keep all security software up
to date. This includes the computer operating system, anti-malware, anti-virus
software, firewalls, etc. While most computers come with security software
installed, tax professionals also can purchase additional security software
products.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Updated software helps
protect users from emerging threats that can lead to data thefts. Users can set
the security software to update automatically.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In addition to these
steps, the Security Summit reminds all professional tax preparers that they
must have a written data security plan as required by the Federal Trade
Commission and its <a href="https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying" title="Federal Trade Commission and its Safeguards Rule"><span style="color: purple;">Safeguards Rule</span></a>. Tax Professionals also
can get help with security recommendations by reviewing the recently revised
IRS <a href="https://www.irs.gov/pub/irs-pdf/p4557.pdf" title="Publication 4557, Safeguarding Taxpayer Data"><span style="color: purple;">Publication
4557</span></a>, Safeguarding Taxpayer Data, and <a href="https://nvlpubs.nist.gov/nistpubs/ir/2016/nist.ir.7621r1.pdf" title="Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology"><span style="color: purple;">Small Business Information Security: the Fundamentals</span></a> by
the National Institute of Standards and Technology.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><a href="https://www.irs.gov/pub/irs-pdf/p5293.pdf" title="Publication 5293, Data Security Resource Guide for Tax Professionals"><span style="color: purple;">Publication 5293</span></a>, Data Security Resource Guide
for Tax Professionals, provides a compilation of data theft information
available on IRS.gov. Also, tax professionals should stay connected to the IRS
through subscriptions to <a href="https://www.irs.gov/e-file-providers/join-e-news-for-tax-professionals" title="Join e News for Tax Professionals"><span style="color: purple;">e-News for
Tax Professionals</span></a>, <a href="https://www.irs.gov/e-file-providers/subscribe-to-quick-alerts" title="Subscribe To Quick Alerts"><span style="color: purple;">QuickAlerts</span></a> and <a href="https://www.irs.gov/newsroom/irs-new-media-1" title="IRS New Media 1"><span style="color: purple;">Social Media</span></a>.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
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<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">==============</span></div>
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<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">Read the original <a href="https://www.irs.gov/newsroom/tax-security-101-tax-professionals-victimized-by-data-thefts-offer-hard-won-security-lessons-to-colleagues">IRS Press Release here</a>.</span></div>
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Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0tag:blogger.com,1999:blog-5131605377978442972.post-17219068379921341382018-08-01T10:10:00.003-07:002018-08-01T10:10:56.042-07:00Tax Security 101: Security Summit reminds tax professionals to beware of spear phishing emails<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">IRS Press Release:</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">==============</span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">IR-2018-157, July 31,
2018<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">WASHINGTON — The IRS
and its Security Summit partners today reminded tax professionals that being
targeted by spear phishing emails remains the most common way data thieves
enter practitioner’s digital networks and steal client information. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Tax professionals who
fall victim to spear phishing tactics voluntarily disclose sensitive password
information or voluntarily download malicious software, enabling thieves to
breach their security systems. The Internal Revenue Service, state tax agencies
and the nation's tax industry offer another reminder: Tax professionals
themselves must be the first line of defense in protecting client data.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This is the fourth in
a series called "<a href="https://www.irs.gov/newsroom/protect-your-clients-protect-yourself-tax-security-101" title="Protect Your Clients; Protect Yourself: Tax Security 101"><span style="color: purple;">Protect Your Clients; Protect Yourself: Tax Security 101</span></a>."
The Security Summit awareness campaign is intended to provide tax professionals
with the basic information they need to better protect taxpayer data and to
help prevent the filing of fraudulent tax returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Although the Security
Summit -- a partnership between the IRS, states and the private-sector tax
community -- is making progress against tax-related identity theft,
cybercriminals continue to evolve, and data thefts at tax professionals’
offices are on the rise. Thieves use stolen data from tax practitioners to
create fraudulent returns that are harder to detect.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Spear phishing emails
differ from general phishing emails in that the thief has researched his target
before sending an email. An email may appear to be from a colleague, a client,
a cloud storage provider, tax software provider or even the IRS or the
states. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The objective of a
spear phishing email is to pose as a trusted source and bait the recipient into
opening an embedded link or an attachment. The email may make an urgent plea to
update an account immediately. A link may seem to go to another trusted
website, for example a cloud storage or tax software provider login page, but
it’s actually a website controlled by the thief. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">An attachment may
contain malicious software called keylogging that secretly infects computers
and provides the thief with the ability to see every keystroke. Thieves can
steal passwords to various accounts or even take remote control of computers,
enabling them to steal taxpayer data.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For those who fall for
a spear-phishing scam and ultimately allow a thief to access their email
account, the criminal can use that access to create additional spear phish
scams. The criminal does this by targeting those with whom the original user
has exchanged emails, including clients, colleagues and friends.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Tips for tax
professionals to avoid phishing scams<br />
Educated employees are the key to avoiding phishing scams, but these simple
steps also can help protect against stolen data: <o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use separate personal and
business email accounts; protect email accounts with strong passwords and
two-factor authentication if available.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Install an anti-phishing tool
bar to help identify known phishing sites. Anti-phishing tools may be
included in security software products.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use security software to help
protect systems from malware and scan emails for viruses.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Never open or download attachments
from unknown senders, including potential clients; make contact first by
phone, for example.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Send only password-protected
and encrypted documents if files must be shared with clients via email.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Do not respond to suspicious or
unknown emails; if IRS-related, forward to <a href="mailto:phishing@irs.gov" title="phishing@irs.gov"><span style="color: purple;">phishing@irs.gov</span></a>.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In addition to these
steps, the Security Summit reminds all professional tax preparers that they
must have a written data security plan as required by the Federal Trade
Commission and its <a href="https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying" title="Safeguards Rule"><span style="color: purple;">Safeguards Rule</span></a>.
Tax professionals can get help with security recommendations by reviewing the
recently revised IRS <a href="https://www.irs.gov/pub/irs-pdf/p4557.pdf" title="Publication 4557"><span style="color: purple;">Publication 4557</span></a>,
Safeguarding Taxpayer Data, and <a href="http://nvlpubs.nist.gov/nistpubs/ir/2016/NIST.IR.7621r1.pdf" title="Small Business Information Security: the Fundamentals"><span style="color: purple;">Small Business Information Security: the Fundamentals</span></a> by
the National Institute of Standards and Technology.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><a href="https://www.irs.gov/pub/irs-pdf/p5293.pdf" title="Publication 5293"><span style="color: purple;">Publication 5293</span></a>, Data Security Resource Guide
for Tax Professionals, provides a compilation of data theft information
available on IRS.gov. Also, tax professionals should stay connected to the IRS
through subscriptions to <a href="https://www.irs.gov/media/116991" title="e-News for Tax Professionals"><span style="color: purple;">e-News for Tax
Professionals</span></a>, <a href="https://www.irs.gov/e-file-providers/subscribe-to-quick-alerts" title="QuickAlerts"><span style="color: purple;">QuickAlerts</span></a> and <a href="https://www.irs.gov/newsroom/irs-new-media-1" title="Social Media"><span style="color: purple;">Social Media</span></a>.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">==============</span></div>
<div>
<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px;">You can read the original <a href="https://www.irs.gov/newsroom/tax-security-101-security-summit-reminds-tax-professionals-to-beware-of-spear-phishing-emails">IRS Press Release here</a>.</span></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com1tag:blogger.com,1999:blog-5131605377978442972.post-75893888757149926952018-08-01T10:07:00.001-07:002018-08-01T10:07:45.401-07:00Tax Security 101: Tax professionals must use strong passwords, encryption to protect taxpayer data<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">IRS Press Release:</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">=================</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">IR-2018-151, July 24,
2018<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">WASHINGTON – The
Internal Revenue Service and its Security Summit partners today urged all tax
professionals to use strong passwords to protect accounts from cyberthieves and
to consider encryption for all sensitive data.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Strong password and
encryption protocols should be standard features of any data security plan that
must be created by all professional tax return preparers. The Electronic Tax
Administration Advisory Committee (ETAAC) noted in its recent annual report to
Congress that many tax pros do not have data security plans that are required
by the Federal Trade Commission.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This is the third in a
series called “<a href="https://www.irs.gov/newsroom/protect-your-clients-protect-yourself-tax-security-101" title="Protect Your Clients; Protect Yourself: Tax Security 101"><span style="color: purple;">Protect Your Clients; Protect Yourself: Tax Security 101</span></a>.”
The Security Summit awareness campaign is intended to provide tax professionals
with the basic information they need to better protect taxpayer data and to
help prevent the filing of fraudulent tax returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Although the Security
Summit is making progress against tax-related identity theft, cybercriminals
continue to evolve, and data thefts at tax professionals’ offices is on the
rise. Thieves use stolen data from tax practitioners to create fraudulent
returns that are harder to detect.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In recent months,
cybersecurity experts’ recommendations on what constitutes a strong password
has changed. They now suggest that people use word phrases that are easy to
remember rather than random letters, characters and numbers that cannot be
easily recalled.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">For example, experts
use to suggest something like “PXro#)30” but now suggest a phrase like
“SomethingYouCanRemember@30.” By using a phrase, you don’t have to write down
your password and expose it to more risk. Also, people may be more willing to
use strong, longer passwords if it’s a phrase rather than random characters.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-outline-level: 2;">
<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Strengthen passwords<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">It is critical that
all tax practitioners establish strong, unique passwords for all accounts,
whether it’s to access a device, tax software products, cloud storage, wireless
networks or encryption technology. Here’s how to get started:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use a minimum of eight
characters; longer is better.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use a combination of letters, numbers
and symbols, i.e., XYZ, 567, !@#.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Avoid personal information or
common passwords; opt for phrases.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Change default/temporary
passwords that come with accounts or devices.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Do not reuse passwords, e.g.,
changing Bgood!17 to Bgood!18 is not good enough; use unique usernames and
passwords for accounts and devices.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Do not use email addresses as
usernames, if that is an option.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Store any password list in a
secure location, such as a safe or locked file cabinet.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Do not disclose passwords to
anyone for any reason.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use a password manager program
to track passwords, but protect it with a strong password.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Whenever it is an
option for a password-protected account, users also should opt for a
multi-factor authentication process. Many email providers now offer customers
two-factor authentication protections to access email accounts. Tax
professionals should always use this option to prevent their accounts from
being taken over by cybercriminals and putting their clients and colleagues at
risk.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Two-factor authentication
helps by adding an extra layer of protection. Often two-factor authentication
means the returning user must enter credentials (username and password) plus
another step such as entering a security code sent via text to a mobile phone.
The idea is a thief may be able to steal your username and password, but it’s
highly unlikely they also would have your mobile phone to receive a security
code and complete the process.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Some providers of tax
software products for tax professionals offer two-factor or even three-factor
authentication. Tax practitioners should use the most secure option available,
not only for tax software, but other products such as email accounts and
storage provider accounts. Those hosting their own website should also consider
some other form of multi-factor authentication to further increase login
security.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Password-protected
data encryption is also critical to protecting client information.
Cybercriminals work hard through various tactics to penetrate networks or trick
users into disclosing passwords. They may steal the data, hold the data for
ransom or use tax professionals’ computers to complete and file fraudulent tax
returns.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-outline-level: 2;">
<b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 18.0pt; mso-fareast-font-family: "Times New Roman";">Basic steps for encrypting client data<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Here are a few basic
steps about encryption and protecting client data stored on computer systems:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Use drive encryption to lock
all files on computers and on all devices. Drive or disk encryption often
is a stand-alone software product. It converts text on files into an
unreadable format for anyone who makes an unauthorized access. Entering
the password unlocks the files for legitimate users. <o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Backup encrypted copies of
client data to external hard drives (USBs, CDs, DVDs) or use cloud
storage. If using external drives, keep them in a secure location. If
choosing cloud storage, encrypt the data before uploading to the cloud.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Avoid attaching USB drives and
external drives with client data to public computers.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Avoid installing unnecessary
software or applications to the business network; avoid offers for “free”
software, especially security software, which is often a ruse by
criminals; download software or applications only from official sites.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Perform an inventory of devices
where clients’ tax data are stored, i.e., laptops, smart phones, tablets,
external hard drives, etc.; inventory software used to process or send tax
data, i.e., operating systems, browsers, applications, tax software, web
sites, etc.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Limit or disable internet
access capabilities for devices that have stored taxpayer data.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Delete all information from
devices, hard drives, USBs (flash drives), printers, tablets or phones
before disposing of devices; some security software includes a “shredder”
that electronically destroys stored files.<o:p></o:p></span></li>
<li class="MsoNormal" style="background: white; color: #333333; line-height: normal; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Physically destroy hard drives,
tapes, USBs, CDs, tablets or phones by crushing, shredding or burning; shred
or burn all documents containing taxpayer information before throwing
away.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In addition to these
steps, the Security Summit reminds all professional tax preparers to have a
written data security plan as required by the Federal Trade Commission and
its <a href="https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying" title="FTC Safeguards Rule regulations"><span style="color: purple;">Safeguards
Rule</span></a>. Tax professionals can get help with security recommendations
by reviewing the recently revised IRS <a href="https://www.irs.gov/pub/irs-pdf/p4557.pdf" title="Publication 4557"><span style="color: purple;">Publication 4557</span></a>, Safeguarding Taxpayer Data,
and <a href="http://nvlpubs.nist.gov/nistpubs/ir/2016/NIST.IR.7621r1.pdf" title="Small Business Information Security: the Fundamentals"><span style="color: purple;">Small Business Information Security: the
Fundamentals </span></a>by the National Institute of Standards and
Technology.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><a href="https://www.irs.gov/pub/irs-pdf/p5293sp.pdf" title="Publication 5293"><span style="color: purple;">Publication 5293</span></a>, Data Security Resource Guide
for Tax Professionals, provides a compilation of data theft information
available on IRS.gov. Also, tax professionals should stay connected to the IRS
through subscriptions to <a href="https://www.irs.gov/media/116991" title="e-News for Tax Professionals"><span style="color: purple;">e-News for Tax
Professionals</span></a>, <a href="https://www.irs.gov/e-file-providers/subscribe-to-quick-alerts" title="QuickAlerts"><span style="color: purple;">QuickAlerts</span></a> and <a href="https://www.irs.gov/newsroom/irs-new-media-1" title="Social Media"><span style="color: purple;">Social Media.</span></a><o:p></o:p></span></div>
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<br /></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: Arial, sans-serif; font-size: 12pt;">=================</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt;">
<span style="color: #333333; font-family: Arial, sans-serif; font-size: 16px;">You can read the <a href="https://www.irs.gov/newsroom/tax-security-101-tax-professionals-must-use-strong-passwords-encryption-to-protect-taxpayer-data">original IRS Press Release here</a>.</span></div>
Unknownhttp://www.blogger.com/profile/00891735077381512728noreply@blogger.com0