New IRS Get Transcript Online Tool and Reminders of Other Useful IRS Tools

Get Transcript

The IRS has implemented a new online tool that allows a taxpayer to retrieve, download, and print a copy of their federal return transcript for the three prior years (and current year after it has been filed). This will eliminate the need to wait five to ten days while the IRS mails a copy of the transcript to the taxpayer.

The new Get Transcript application operates as follows:

• Once the taxpayer accesses the page, they will select Get Transcript Online
• The taxpayer will be walked through an authentication process
• Once authenticated, the taxpayer will see a screen that gives them the option to select:
• Tax Return transcript: Shows most line items on the tax return as originally filed, including accompanying forms and schedules.
• Tax Account transcript: Provides any adjustments that were made to a return after it was filed.
• Record of Account transcript: Combines the information from the tax return and tax account transcripts.
• Wage and Income transcript: Shows data from the taxpayer’s W-2s or 1099s reported to the IRS for the particular tax year.

Other Useful IRS Tools

As we begin the 2014 filing season, here is a reminder about two other IRS online tools that you may find useful:

Where’s My Amended Return?
If the taxpayer needs to file an amended return for the current year or the three prior years, they can now find out the processing status at the IRS.

They may do this by using the IRS look-up tool “Where’s My Amended Return?”. The status will be available on this application three weeks after it was mailed to the IRS.

The following information is available about the amended return once the Social Security Number, date of birth, and zip code has been entered:

• Confirmation that the IRS received the amended return
• An update on the amended return’s current status
• Estimated time the IRS will complete the processing of the amended return

First Time Homebuyer Account Look-up
Taxpayers who claimed a first time homebuyer credit of $7,500 in 2008 must repay the credit over 15 years. This is done by showing an additional tax on the taxpayer’s return beginning in 2009.

In order to help the taxpayer keep track of the total amount of credit they claimed, what the yearly repayment amount should be, and the balance remaining to be paid back, the IRS provides a First Time Homebuyer Credit Account Look-Up tool on the IRS website.

Change to IRS Help Line for 2014 Filing Season

The IRS Help Line will be changing how they respond to tax law related questions beginning with the 2014 filing season. These changes are being made in an effort to persuade taxpayers to use the IRS website and other resources to get answers to their tax law related questions. Additionally, the changes would allow the IRS to save money and for the IRS Help Line to be utilized more effectively.

The changes will be as follows:

• January 1 - April 15
  
  IRS will answer basic tax law questions when a taxpayer calls the IRS Help Line. Basic tax law questions are defined as questions pertaining to Forms 1040A, 1040EZ, and related area on Form 1040 such as filing status, dependents, exemptions and taxable income.
  More complex tax law questions will not be answered. Instead, the IRS help line will be referring taxpayers to other resources available on IRS.gov such as the Interactive Taxpayer Assistance, Tax Trails, IRS tax publications, and other resources such as the tax software product they are using to get answers to these questions.
• April 16 - December 31 
  
  Any tax law related questions (both basic and complex) asked by taxpayers will be referred to other resources available on IRS.gov, IRS tax publications, and other resources such as the tax software product they are using.

See Some IRS Assistance and Taxpayer Service Shift to Automated Resources on the IRS website for more details on this change and other changes the IRS is making to their website.

Changes to the IRS Identity Protection PIN Program for the 2014 Filing Season

The IRS is making the following changes to their Identity Protection PIN program for the 2014 Filing Season:

• If the spouse receives an Identity Protection PIN (IP PIN), they must include it on their electronically filed federal return. If it is not included or is entered incorrectly, the return will not be accepted by the IRS.
  The taxpayer will continue to also be required to include their IP PIN on their federal return as they have since this IRS program began two years ago.
• If the taxpayer and/or spouse lose or misplace their IP PIN they will need to get their original IP PIN via the new online IRS Identity Protection PIN system on the IRS website.
  In order to obtain their original IP PIN the taxpayer and/or spouse will need to go through a registration process to validate their identity. This process is to ensure that the IP PIN is being given to the correct taxpayer and to protect the taxpayer's personal and tax information.
  For taxpayers who are unable to use the online tool, or do not want to use it, they can obtain a replacement IP PIN by calling the IRS at 1-800-908-4490, extension 245. If a taxpayer receives a replacement IP PIN, the processing of their return and the issuance of their refund will be delayed.

Other things to know about the IRS Identity Protection PIN program are:

• The IRS will be issuing 1.2 million Identity Protection PINs for the upcoming season. IP PINs are issued to all taxpayers that have had an identity theft indicator applied to their IRS tax account.
• Affected taxpayers should have received IRS Notice CP01A from the IRS in December 2013. This notice includes their 6-digit IP PIN and information on the use of it.
• The Identity Protection PIN received by the taxpayer and or spouse in December 2013 is only valid for use on their 2013 federal individual return. Those who received an IP PIN for 2013 will receive a new IP PIN each year for as long as their IRS account has an identity theft indicator associated with it.
• When the taxpayer and/or spouse IP PIN is entered in the CrossLink professional tax software program, they will be transmitted to the IRS as part of Form 1040. The taxpayer's IP PIN will print on Form 1040 in the area designated for this purpose in the signature area. The spouse's IP PIN will not print on the Form 1040 because the IRS did not add it to the printed Form 1040 for tax year 2013.

For more information see the following:

• Understanding Your CPO1A Notice for more information about the IRS Identity Protection PIN and a copy of what this notice looks like and tells the taxpayer.
• IRS Identity Protection PIN Frequently Asked Questions
• Lost or Misplaced IP PINs page on the IRS website for further information on what to do if the taxpayer loses or misplaces their IP PIN.

Reminders for Upcoming 2014 Filing Season

Below are some reminders about when the 2014 Filing Season will begin and some of the new tax law changes that will affect individual returns for Tax Year 2013:

Start of Filing Season
Both the individual and business filing season will be starting later due to the government shutdown this past October 2013.

First day of filing season will be:

• For individual returns: Friday, January 31, 2014
• For business (Corporate, Partnership, Fiduciary) returns: Monday, January 13, 2014

New Tax Provisions for 2013 Federal Returns
The following federal provisions are new for the upcoming filing season:

• New Simplified Method for Home Office Deduction
  In order to provide simplification for taxpayers that claim the home office deduction on Schedule C, the IRS now gives taxpayers the option to use a simplified method to calculate the home office deduction. Instead of using Form 8829, the taxpayer may multiply the square footage used for business footage by $5.
  For more information, see the following on the IRS website:
  • Simplified Option for Home Office Deduction
  • 2013 Schedule C instructions
• Itemized Medical Expense Deduction Threshold Percentage 
  Starting with 2013 individual returns, the threshold percentages for when medical expenses are included as an itemized deduction have changed to:
  • Taxpayers under age 65: 10%
  • Taxpayers age 65 and older: 7.5%
  For more information see the 2013 Instructions for Schedule A.

• Changes for High Income Individuals
• New 39.6% tax rate when AGI exceeds $400,000 ($450,000 for Married Filing Joint (MFJ))
• Itemized Deduction and Personal Exemption will begin to be phased-out when AGI reaches $250,000 ($300,000 for MFJ)
• Additional 3.8% tax will be imposed on net investment income when AGI exceeds $200,000 ($250,000 for MFJ). This will be calculated on new Form 8960 (Net Investment Income Tax Individuals, Estates and Trusts).
• Additional Medicare Tax will be due for taxpayers with wage and self-employment income over $200,000 ($250,000 for MFJ). This will be calculated on new Form 8959 (Additional Medicare Tax).

For more details on these changes, see the following:

• IRS Questions and Answers for the Additional Medicare Tax
• IRS Questions and Answers on the Net Investment Income Tax
• 2013 Form 1040 instructions (Deduction for Exemptions Worksheet on Page 40) for phase out of the personal exemption
• 2013 Schedule A instructions (Itemized Deductions Worksheet on page A-13) for phase out of itemized deductions

For a complete listing of federal tax law changes that will affect individual 2013 tax returns, see the Things to Know for the Current Tax Year section of the CrossLink Tax Resource Center.