IRS NEWS FOR TAX PROFESSIONALS



IRS NEWS FOR BUSINESSJanuary 2018?UPCOMING WEB CONFERENCESWe will offer web conferences in January, but as of the date of publication, we don’t have the webinar registration information. Please check Webinars for Small Businesses in early January 2018 for upcoming National and Local WebinarsClick HERE for webinars and videos recently posted to the IRS Video Portal.?NEWSTax Cuts and Jobs Act of 2017We will share information with you as it becomes available.The IRS issued the following statement on December 13, 2017The IRS is closely monitoring the pending legislation on 2018 tax withholding in Congress and preparing guidance. ?We anticipate issuing the initial withholding guidance (Notice 1036) in January to reflect the new legislation, which would allow taxpayers to see changes as early as February 2018. We will work closely with the nation's payroll and tax professional communities during this process.Standard Mileage Rates for 2018 Up from Rates for 2017Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.14 cents per mile driven in service of charitable organizations. HYPERLINK "" Choosing a Tax ProfessionalThere are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don’t have a professional credential. You expect your preparer to be skilled in tax preparation and to accurately file your income tax return. You trust him or her with your most personal information. They know about your marriage, your income, your children and your social security numbers – the details of your financial life.Most tax return preparers provide outstanding and professional tax service. However, each year, some taxpayers are hurt financially because they choose the wrong tax return preparer. Be sure to check our HYPERLINK "" tips for choosing a tax preparer.Get Ready for Taxes: Plan Ahead to Avoid Refund DelaysIt’s important to gather documentsTaxpayers with expiring ITINs should renew promptlyChoose e-file and direct deposit for a faster refund HYPERLINK "" The Basics of Estimated Taxes for IndividualsThe IRS has seen an increasing number of taxpayers subject to estimated tax penalties, which apply when someone underpays their taxes. The number of people who paid this penalty jumped from 7.2 million in 2010 to 10 million in 2015, an increase of nearly 40 percent. The penalty amount varies, but can be several hundred dollars.The IRS urges taxpayers to check into their options to avoid these penalties. Adjusting withholding on their paychecks or the amount of their estimated tax payments can help prevent penalties. This is especially important for people in the sharing economy, those with more than one job and those with major changes in their life, like a recent marriage or a new child.?TAXES. SECURITY. TOGETHER. (Identity Theft) HYPERLINK "" Information on Identity Theft for Business, Partnerships and Estate and TrustsBusinesses, partnerships and estate and trust filers increasingly are targeted by national and international criminal syndicates who use stolen data to file fraudulent tax returns for refunds.In the past year, the Internal Revenue Service has noted a sharp increase in the number of fraudulent Forms 1120, 1120S and 1041 as well as Schedule K-1. Identity thieves are displaying a sophisticated knowledge of the tax code and industry filing practices as they attempt to obtain valuable data to help file fraudulent returns. HYPERLINK "" Consumer Alert: IRS Warns Taxpayers, Tax Pros of New Email Scam Targeting Hotmail UsersThe IRS warns taxpayers and tax professionals of a new email scam targeting Hotmail users that is being used to steal personal and financial information.The phishing email subject line reads: “Internal Revenue Service Email No. XXXX | We’re processing your request soon | TXXXXXX-XXXXXXXX”. The email leads taxpayers to sign in to a fake Microsoft page and then asks for personal and financial information.The IRS has received over 900 complaints about this new phishing scheme that seems to exclusively target Hotmail users. The suspect websites associated with this scam have been shut down, but taxpayers should be on the lookout for similar schemes.Individuals who receive unsolicited emails claiming to be from the IRS should forward it to phishing@ and then delete it. It is important to keep in mind the IRS generally does not initiate contact with taxpayers by email to request personal or financial information. For more information, visit Tax Scams / Consumer Alerts on .?EMPLOYERS AND BUSINESS OWNERS:Understanding Employee vs. Contractor DesignationThe IRS reminds small businesses of the importance of understanding and correctly applying the rules for classifying a worker as an employee or an independent contractor. For federal employment tax purposes, a business must examine the relationship between it and the worker. The IRS Small Business and Self-Employed Tax Center on the IRS website offers helpful resources.Worker classification is important because it determines if an employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Businesses normally do not have to withhold or pay any taxes on payments to independent contractors. The earnings of a person working as an independent contractor are subject to self-employment tax.The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done. Small businesses should consider all evidence of the degree of control and independence in the employer/worker relationship. Whether a worker is an independent contractor or employee depends on the facts in each situation.Find Out if You Need to Complete Form 1099-Misc Am I required to file Form 1099 for payments to sub-contractors or vendors? Get 1099s for free: Online Ordering for Information Returns and Employer Returns SSA Corrects Social Security Max Earnings Amount The Social Security Administration has announced a correction to an amount it published earlier. The amount that changed is the maximum amount of earnings subject to Social Security taxes.The amount of earnings subject to Social Security taxes increases to $128,400 (up from $127,200 for 2017). (The previously announced maximum was $128,700.)?NEWS FROM OTHER AGENCIESFrom the SBA: HYPERLINK "" SBA Rolls Out New Lender Match Tool to Connect Small Businesses and LendersLender Match is the SBA’s online referral tool connecting small business borrowers with participating SBA lenders. Lender Match is an upgrade to LINC (Leveraging Information and Networks to access Capital), introduced as a pilot in 2015.?IN EVERY ISSUE HYPERLINK "" Small Business and Self-Employed Tax CenterUnderstanding Your IRS Notice or LetterBasic Tools for Tax ProfessionalsTax Scams / Consumer AlertsIdentity Protection: Prevention, Detection and Victim AssistanceFederal Trade Commission: Individuals: ................
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