2018 National Income Tax Workbook Chapter 3, IRS Update Presenters - - PowerPoint PPT Presentation

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2018 National Income Tax Workbook Chapter 3, IRS Update Presenters - - PowerPoint PPT Presentation

Apr 03, 2023 501 likes •894 views

University of Illinois 2018 National Income Tax Workbook Chapter 3, IRS Update Presenters Name: Shawn Savage IRS Stakeholder Liaison Date: 10/23,10/25,10/30 Topic 2: Secure Messaging for Correpondence Audits Correspondence

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Presenter’s Name: Shawn Savage

IRS Stakeholder Liaison Date: 10/23,10/25,10/30

University of Illinois 2018 National Income Tax Workbook Chapter 3, IRS Update

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Topic 2: Secure Messaging for Correpondence Audits

  • Correspondence Examinations

–SB/SE Schedule A, Education Credit, and

Child Case Credit audits by mail

–Philadelphia Correspondence Examination

Operation

  • Secure Messaging

–Interaction using secure online environment

  • Invitation only

–Taxpayers and POA clients receive TDC

reply option in the audit letter

(Page A94)

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Taxpayer & representative participation

  • Taxpayers signed up for Secure Messaging
  • Taxpayers and their representatives must

pass the IRS Secure Access

–Representative already in the CAF

database

–Representatives authenticate under their

SSN and have their own account

(Page A94)

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SB/SE TDC – Secure messaging

  • TDC Secure Messaging – Initial pilot

launched FY 17

–Lasted a little over a year –9,150 taxpayer invites

  • Over 1,000 successful sign-ups

–Evaluating pilot results

  • “Phase II” of the pilot is underway

– ~19,000 invitations planned

(Page A94)

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Topic 3: Data security

  • e-Services secure access
  • Individual Online account access
  • Identity Theft

(Page A94)

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e-Services two-factor authentication

  • Developed Secure Access Authentication

–Two-step authentication for returning user

  • Credentials (username/password)
  • Security code text

–Meets OMB and NIST standards –Protects Get Transcript Online and IP PIN

tools

–Risk assessment conducted on other

IRS.gov tools

(Page A94)

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  • This online account allows individual

taxpayers to access information about their IRS account through a secure login on IRS.gov.

  • Taxpayers can access their account from the

IRS.gov/payment page or IRS.gov/tools.

How to access your account

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How to access you account

  • Taxpayers need to register for an online account

using Secure Access

  • To register for the first time, taxpayers must have

their personal and financial information including:

–Social Security number –Specific financial information, such as a credit

card number or loan numbers

–Email address –Text-enabled mobile phone in the user's name

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How to access your account

  • Taxpayers may review the Secure Access

process prior to starting registration.

  • As part of the security process to authenticate

taxpayers, the IRS will send verification, activation or security codes via email and text. Note: The IRS advises taxpayers that it will not initiate contact via text or email asking for login information or personal data.

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Key features now available allow taxpayers to:

  • View amount of tax owed as of today’s date
  • See the balance for each tax year for which

they owe tax

  • Pay by bank account, debit or credit card
  • Set up an online payment agreement

Account features

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  • Review up to 18 months of tax payment

history

  • Access Get Transcript to view, print or

download tax records

  • Get key information including adjusted gross

income and filing status from the current year tax return as originally filed

Account features

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Identity Theft

  • We tell you –

–Suspicious return generates Letter 4883C

  • r Letter 5747C to verify identity by phone
  • r in person

–If taxpayer did not file return, it is removed

from account; IP PIN generated

–No need to file a Form 14039

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Topic 4: Tax scams

  • IRS Dirty Dozen
  • Scam Alerts
  • Protect your EFIN
  • Protect Your Clients; Protect Yourself

(Page A101)

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IRS Dirty Dozen

14

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2018 IRS Dirty Dozen

  • Phishing
  • Phone scams
  • Identity theft
  • Return preparer fraud
  • Fake charities
  • Inflated refund claims

(Pages A101 - 102)

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2018 IRS Dirty Dozen

  • Excessive claims for business credits
  • Falsely padding deductions on returns
  • Falsifying income to claim credits
  • Frivolous tax arguments
  • Abusive tax shelters
  • Offshore tax avoidance

(Page A102)

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Scam alerts

  • New Client E-mail Scam
  • Spear Phishing
  • Phone Scams
  • IRS TAC Scam
  • Fraudulent Refunds

(Pages A103 - A104)

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  • IRS reviewing improvements to EFIN

safeguards

–Stepped up efforts to expel EFIN abusers; –Increased on-site visits as part of monitoring

process

  • EFIN holders should review return numbers

during filing season

–e-Services Account updated weekly –Excessive numbers can be reported to

e-Help Desk

Protect your EFIN

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  • Read Pub. 4557, Safeguarding Taxpayer Data
  • Review current security measures
  • Create a security plan

–Use top-notch software security –Educate all employees –Use strong passwords –Secure Wi-Fi –Encrypt PII emails –Backup files

Steps to protect client data

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Search on IRS.gov: “Protect Your Clients; Protect Yourself”

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  • Review Pub 4557, Safeguarding Taxpayer

Data

  • Use best security practices at all times
  • Contact your IRS Stakeholder Liaison

immediately in case of data loss

  • Maintain, monitor and protect EFIN
  • Help education clients about Security
  • Warn employers of Form W-2 scam

How you can help

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Topic: 5: Updates to Power of Attorney

  • Intermediate Service Providers
  • Partnership Representatives
  • Representative Designations

(Page A106)

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Form 2848 Resources

  • Publication 947 - Practice Before the IRS and

Power of Attorney

  • IRS.gov

–About Form 2848, Power of Attorney and

Declaration of Representative

–The Centralized Authorization File (CAF) -

Authorization Rules

(Page A107)

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Topic 7: Payment options

(A110 – A119))

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Payment options

  • Direct Pay
  • Debit/Credit
  • Electronic Federal Tax Payment System
  • Electronic Funds Withdrawal
  • Cash

(Pages A111 - A115)

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  • Practitioner Priority Service is a nationwide

toll-free, account related service available to tax practitioners

  • PPS serves tax practitioners as the first point
  • f contact for assistance regarding their

clients' account related issues

  • Available to tax practitioners with valid Form

2848, Form 8821, Form 8655 or other third party designee authorizations

Topic 11: Practitioner Priority Service

(Page A137)

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Practitioner Priority Service

The following account related services are offered in all Accounts Management locations.

–Resolving taxpayer account problems by:

  • Locating and applying payments
  • Explaining IRS communications
  • Providing general procedural guidance

and timeframes

  • Providing transcripts of taxpayer accounts
  • Securing taxpayer income verification
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Practitioner Priority Service

Services that are Out of Scope for Accounts Management PPS Assistors

–Tax Law questions –Accounts assigned to:

  • Automated Collection Services (ACS)
  • Automated Under Reporter (AUR)
  • Correspondence Examination or

Revenue Officers

–Calls for specific employees

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  • Form 4506-T, Request for Transcript of

Tax Return

  • Income Verification Express Services
  • E-Services Transcript Delivery Service

Other options

(Page A137)

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Additional assistance options

  • You can get help with IRS letters you have

received or resolve tax account issues from

  • ur toll free assistors.
  • Call the number shown on the letter you

received, or for general questions and help, dial 800-829-1040 for individual tax issues or 800-829-4933 for business-related tax issues.

(Pages A138 – A139)

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Additional assistance

  • ptions
  • Other toll-free lines devoted to tax exempt
  • rganizations, tax professionals and other

specialties are listed on www.IRS.gov.

  • To make an appointment at a TAC call

844-545-5640.

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Topic 13: Current status of the IRS

(Pages A140 - A142)

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IRS key messages

  • Paycheck Checkup
  • Withholding Calculator
  • Form W-4
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IRS.gov/tax-reform

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Why a Paycheck Checkup?

  • Protect against having too little tax withheld

and facing an unexpected tax bill or penalty at tax time next year.

  • Avoid too much withholding; you can receive

more in your paychecks.

  • Some law changes in the Tax Cuts and Jobs

Act may affect your withholding.

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IRS.gov/withholding

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Name: Shawn Savage, IRS Stakeholder Liaison Phone Number: 207.480.6099 E-Mail Address: shawn.s.savage@irs.gov

Contact information