This is Julie Dale, CPA's Typepad Profile.
Join Typepad and start following Julie Dale, CPA's activity
Join Now!
Already a member? Sign In
Julie Dale, CPA
Texas
Julie Dale, CPA, chair, Federal Tax Policy Communications Subcommittee
Recent Activity
Guide to Bond Premium & Market Discount Get the entire article (.PDF) By Corey Junk, Carol Warley, and Stefan Gottschalk, RSM US LLP March 2017 For Publication (by RSM US LLP and on the Federal Tax Policy Blog of the Texas Society of Certified Public Accountants) Introduction: Market Purchases of Bonds, Adjustments to Taxable Income, and Forms 1099. For taxpayers who purchase bonds or other debt instruments (“Bonds”), the Tax Code1 may require adjustments to ordinary interest income. This guide addresses two types of adjustments – bond premium and market discount. Where they apply, the bond premium and market discount... Continue reading
Posted 6 days ago at TSCPA Federal Tax Policy Blog
In an effort to improve compliance, the Large Business and International Division (LB&I) has announced 13 initiatives where they will focus resources and training. 1. Energy Credits – to verify that the credits are only claimed for energy projects approved by the Department of Energy on which the IRS has approved the allocation of the credit; 2. OVDP Declines-Withdrawals – to identify taxpayers who have misapplied the Offshore Voluntary Disclosure Program (OVDP) because they either were denied access to the program or withdrew from the program; 3. Domestic Production Activities Deduction – a review of multi-channel video programming distributors and... Continue reading
Posted Mar 3, 2017 at TSCPA Federal Tax Policy Blog
By Julie Dale, CPA-Austin As CPAs wishing to assist our clients in the most efficient manner, we often are thwarted with issues in responding to IRS correspondence. One such hurdle is with delays in the IRS’ processing of Form 2848, Power of Attorney and Declaration of Representative. The IRS must have a valid Form 2848 on file for us to obtain the data on our client’s account to resolve a tax notice. The IRS recommends that we fax the Form 2848 to 855-214-7522 (for Texas residents) to expedite processing rather than mailing it. However, even fax is proving to be... Continue reading
Posted Feb 27, 2017 at TSCPA Federal Tax Policy Blog
The new president has issued numerous executive orders during the first weeks of his term. Although these directives commonly occur when the administration changes party affiliation, tax professionals are left wondering if or how they should react. The White House issued a memorandum on Jan. 20, 2017, temporarily freezing new or pending regulations that have not yet become effective. Regulations sent to, but not published in the Federal Register were immediately withdrawn. Regulations published, but not effective were postponed for a 60-day review. The section 385 debt-equity regulations were finalized before the regulatory freezes, so for now, those rules stand.... Continue reading
Posted Feb 20, 2017 at TSCPA Federal Tax Policy Blog
In 2015, TSCPA’s Federal Tax Policy Committee initiated several advocacy efforts for relief of the $100 per day per affected employee penalty to small businesses for health reimbursement arrangements (HRAs) that did not qualify under the Affordable Care Act (ACA) market reform. Two months ago, President Obama signed the 21st Century Cures Act which granted partial relief, the establishment of HRAs for qualified small employers for reimbursements of health insurance and out-of-pocket medical costs (cannot exceed $4,950 individual or $10,000 family) as long as the employee demonstrates to his/her employer that he/she has essential minimum coverage. Reimbursement of Medicare-eligible employees’... Continue reading
Posted Feb 7, 2017 at TSCPA Federal Tax Policy Blog
The IRS has a pilot program for expanded streamline installment agreements that runs September 2016 to September 2017. The SB/SE Campus Collection Operations, including the Automated Collection System (ACS), has expanded installment agreement criteria for individual taxes, self-employment taxes and out-of-business sole proprietors with assessed tax, penalty and interest between $50,000 and $100,000 and from 72 to 84 months automatic installment (if proposed monthly payment is the greater of their total assessed balance divided by 84 months or amount necessary to satisfy the liability before the collection statute expires). If the test is successful, it will provide easier access to... Continue reading
Posted Jan 25, 2017 at TSCPA Federal Tax Policy Blog
We all know that tax preparer firms are under attack from felonious hackers. A security breach can destroy your professional reputation with affected clients and businesses, and possibly your livelihood. If you handle taxpayer information, you may be subject to the Gramm-Leach-Bliley Act and the Federal Trade Commission’s (FTC’s) Financial Privacy and Safeguards Rules, which require that you assess the risks to taxpayer information in your office and have a plan of appropriate protections of that information. Texas also mandates under penalty of law that businesses secure personal data and activate a plan if that data is compromised. The crime... Continue reading
Posted Jan 25, 2017 at TSCPA Federal Tax Policy Blog
The PATH Act of 2015 extended Form 8867, the Paid Preparer’s Due Diligence Checklist, to include not only claims for earned income tax credit (EITC), but also the child tax credit (CTC), the additional child tax credit (ACTC) and the American opportunity tax credit (AOTC) for the 2017 tax filing season. During a recent joint meeting, IRS representatives recommended that tax professionals access the IRS’ EITC Central and view the training module for clarification such as the definition of “interview” for checklist purposes. (A very general interpretation is that an interview can be conducted via written correspondence, email and telephone... Continue reading
Posted Jan 19, 2017 at TSCPA Federal Tax Policy Blog
The IRS has expanded its testing of the Forms W-2 authentication code for this tax season to combat return identity theft and refund fraud. The IRS collaborated with certain payroll service providers to include a 16-digit code and a new verification code field on approximately 50 million W-2 copies provided to employees. Tax professionals are urged to look for the verification code field because its location on the form will vary. The code will be displayed in four groups of four alphanumeric characters, separated by hyphens: XXXX-XXXX-XXXX-XXXX. Some W-2s will have an empty verification code box where no action is... Continue reading
Posted Jan 18, 2017 at TSCPA Federal Tax Policy Blog
In December 2015, Congress reauthorized under federal law the IRS’ use of third-party debt collection procedures. Four agencies have been contracted to pursue inactive delinquent accounts. The IRS will notify the taxpayer in writing (and their representative with a valid Form 2848) that the account has been referred to a collection agency, providing the name of the agency and a 10-digit identifying code. The agency will issue a separate letter to the taxpayer and any representative that the account has been transferred before making contact by phone. The collector calling has the same 10-digit code along with the taxpayer’s Social... Continue reading
Posted Jan 17, 2017 at TSCPA Federal Tax Policy Blog
National Taxpayer Advocate (NTA) Nina Olson recently released her 2016 Annual Report to Congress. In the report, Olson recognized the quality work of TSCPA’s Federal Tax Policy (FTP) Committee by referencing its appeals letter to the IRS in May and specific FTP committee member testimony from the NTA San Antonio public forum in August. TSCPA members Jaime Vasquez, CPA-San Antonio, and Jim Smith, CPA-Dallas,* were both quoted in the annual report from their public forum testimony regarding problems within the Taxpayer Advocate Centers and the Taxpayer Advocate Service. Congratulations to the FTP Committee on this well-deserved recognition from the NTA!... Continue reading
Posted Jan 16, 2017 at TSCPA Federal Tax Policy Blog
The IRS is warning of a new phishing scheme targeting accounting and tax preparation firms nationwide. These latest phishing emails come in typically two stages. The first email may appear to be from a taxpayer shopping for professional services, such as "I need a preparer to file my taxes." If the preparer or staff responds, the cybercriminal sends a second email with an embedded web address or a PDF attachment that has an embedded web address. Emails may also appear to come from a legitimate sender or organization (perhaps even a friend or colleague) because they also have been victimized.... Continue reading
Posted Jan 13, 2017 at TSCPA Federal Tax Policy Blog
Last month, the IRS released Notice 2017-6 to extend the dates for making the automatic accounting method changes required under IRC section 263(a), the tangible property regulations, to include tax years beginning before Jan. 1, 2017. This allows taxpayers that have not made these changes to do so and comply with the final tangible property regs. This also allows taxpayers to comply without incurring the user fees that would otherwise be required. (2017-3 IRB) https://www.irs.gov/pub/irs-drop/n-17-06.pdf Continue reading
Posted Jan 10, 2017 at TSCPA Federal Tax Policy Blog
The new annual due date for filing Reports of Foreign Bank and Financial Accounts (FBAR), FinCEN Form 114, for foreign financial accounts is April 15. This date change was mandated by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law 114-41. Specifically, section 2006(b)(11) of the Act changes the FBAR due date to April 15 to coincide with the federal income tax filing season. It also mandates a maximum six-month extension of the filing deadline. FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to Oct.... Continue reading
Posted Jan 9, 2017 at TSCPA Federal Tax Policy Blog
Last month, President Obama signed into law the 21st Century Cures Act, which, among other things, permits certain employers to offer health reimbursement arrangements to employees without running afoul of the Patient Protection and Affordable Care Act's market reform provisions. TSCPA’s Federal Tax Policy and IRS committees have been involved in commenting on this issue. In April 2015, they sent a letter to the Treasury and prepared letters sent on behalf of TSCPA to Congress in September 2015. http://www.journalofaccountancy.com/news/2016/dec/congress-enacts-law-allowing-hras-under-aca-201615674.html https://www.tscpa.org/docs/default-source/default-document-library/treasurysec4980dexcisetax.pdf?sfvrsn=2 https://www.tscpa.org/docs/default-source/comment-letters/tscpa/tscpa-letter-regarding-small-business-healthcare-relief-act-2015.pdf?sfvrsn=2 Continue reading
Posted Jan 5, 2017 at TSCPA Federal Tax Policy Blog
During a recent conference call that included representatives from TSCPA’s Relations with IRS Committee, the local IRS stakeholder liaison addressed Letter CP 5747C and discussed that a number of tax preparers’ clients are receiving this new letter requiring them to physically go to a Taxpayer Assistance Center (TAC) to authenticate their identity. Some preparers have questioned the legitimacy of the letter and why, with a Power of Attorney on file, they could not conduct the validation on behalf of their clients. The CP 5747C is a legitimate IRS letter issued as part of the Taxpayer Protection Program. Because these taxpayer... Continue reading
Posted Dec 14, 2016 at TSCPA Federal Tax Policy Blog
The IRS has issued temporary and proposed regulations (T.D. 9799, REG-102952-16) that modify the existing rules on the tax return preparer due diligence penalty under Section 6695(g). The temporary regulations implement changes made in the Protecting Americans from Tax Hikes Act of 2015 that expanded the scope of the due diligence requirements. Prior requirements and penalties were related to the earned income credit. Now, the due diligence requirements also apply to tax returns that claim a child tax credit, additional child tax credit or the American opportunity tax credit. The new rules apply to returns or claims for refund prepared... Continue reading
Posted Dec 7, 2016 at TSCPA Federal Tax Policy Blog
After a brief delay, the e-Services re-registration process is moving forward. The IRS will send letters through the end of December to those e-Services users who can access the transcript delivery service and who have been active on the account within the past year. Follow instructions to validate your identity. If you successfully registered for Get Transcript Online after May 2016, you do not need to re-register now. If you do not take action within 30 days of the letter, you will be locked out of your account. http://www.journalofaccountancy.com/news/2016/nov/irs-starts-e-services-re-registration-201615608.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=01Dec2016 Also, do not fall victim to an e-Services phishing email directing... Continue reading
Posted Dec 1, 2016 at TSCPA Federal Tax Policy Blog
The PTIN class action lawsuit moves forward; however, the court has not made a determination about the PTIN fees, including whether they were unlawful, authorized or excessive. Anyone who prepares or assists in preparing federal tax returns for compensation must still have a valid 2017 PTIN before preparing returns. The fee is $50 for a first-time applicant or renewal. http://www.journalofaccountancy.com/news/2016/oct/ptin-class-action-lawsuit-201615343.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=14Oct2016 https://www.irs.gov/tax-professionals/ptin-requirements-for-tax-return-preparers Continue reading
Posted Nov 10, 2016 at TSCPA Federal Tax Policy Blog
The IRS' Modernized e-File shutdown begins on Wednesday, Nov. 30, 2016, at 11:59 a.m. in order to prepare the system for the upcoming tax year 2016 filing season. Continue reading
Posted Nov 7, 2016 at TSCPA Federal Tax Policy Blog
This week, TSCPA’s Federal Tax Policy Committee and Business Valuations, Forensic and Litigation Services Committee issued a joint comment letter to the Treasury Department and the IRS on proposed regulations under Section 2704 concerning the valuation of interests in corporations, LLCs and partnerships for estate, gift and generation-skipping transfer tax purposes. These broad-sweeping provisions would dramatically restrict, if not eliminate, valuation discounts on intra-family transfers of certain family-owned entity interests. They would adversely affect many Texas family farms, ranches and other businesses. The committees ask that Treasury withdraw or significantly revise the proposed regulations that are contrary to long-standing case... Continue reading
Posted Nov 3, 2016 at TSCPA Federal Tax Policy Blog
During a recent conference call that included representatives from TSCPA’s Relations with IRS Committee, the local IRS stakeholder liaison addressed how to obtain a client’s account transcript when the taxpayer is a victim of identity theft. In order to reduce additional breach opportunities and secure taxpayer information, the Transcript Delivery System (TDS) no longer generates transcripts to requestors when there is an identity theft indicator on the account. The tax professional will receive the message, “Please have your client contact the Identity Protection Specialized Unit (IPSU) at 800-908-4490.” The client will receive an alert that a transcript request was attempted... Continue reading
Posted Oct 28, 2016 at TSCPA Federal Tax Policy Blog
By Jim Smith, CPA-Dallas Information form filings with the Social Security Administration (SSA) have a new due date. The 2016 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3 and W-3SS are all due Jan. 31, 2017, regardless of whether they are filed on paper or electronically. Extensions of time to file forms with the SSA are no longer automatic. One 30-day extension may be requested by filing Form 8809, Application for Extension of Time to File Information Returns. The form must include a detailed explanation of why additional time is needed and must be signed under penalties of perjury. The IRS... Continue reading
Posted Oct 25, 2016 at TSCPA Federal Tax Policy Blog
This week, TSCPA’s Federal Tax Policy Committee issued a letter to IRS Commissioner Koskinen raising concerns about transparency by the IRS Disclosure Office or field personnel in responding to requests for records under the Freedom of Information Act (FOIA). The committee’s experiences indicate some IRS revenue agents or officers may be improperly withholding taxpayer information outside the administrative files submitted to the FOIA Disclosure Office. Members have also experienced undue delays and what we believe to be improper requests for scope limitations of our requests. The letter recommends that the IRS review and modify its procedures to address these issues... Continue reading
Posted Oct 6, 2016 at TSCPA Federal Tax Policy Blog
Mike Williams, CPA-Panhandle Tax practitioners in Texas and other states have had some concerns about receiving a Statutory Notice of Deficiency without being given an opportunity to appeal the deficiency. Taxpayers responded to the Automated Underreporter (AUR) notices and eventually received a recomputed CP2000 (Letter 2030), but there was no reference on how to appeal the decision. The local IRS stakeholder liaison addressed this concern in a recent conference call that included representatives from TSCPA’s Relations with IRS Committee. The IRS explained in the AUR program, a 30-day notice is not sent prior to the issuance of a Statutory Notice... Continue reading
Posted Sep 29, 2016 at TSCPA Federal Tax Policy Blog