It may not be tax season, but it sure does feel like it with all the tax news and updated information from the IRS! Have you been paying attention? Don’t sleep on these important tax news headlines.
This month the IRS announced a couple of new forms. First, a new form for seniors which actually doesn’t look new at all, it looks like our old friend Form 1040. Forbes has the scoop here.
Second, the IRS is throwing it back to the 80s with a draft version of a form that we haven’t seen since 1982: form 1099-NEC, Nonemployee Compensation. More on that here.
Third, we’ve got another W-4 Form! This one is for 2020. According to the IRS, “The new design reduces the form’s complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees.” More on that here.
No, the Affordable Care Act did not go away. The IRS just released guidance on the premium tax credit. It provides indexing adjustments required by statute for certain provisions under section 36B of the Tax Code. The revenue procedure updates the applicable percentage table used to calculate an individual’s premium tax credit for taxable years starting in calendar year 2020 and updates the required contribution percentage for plan years beginning after calendar year 2019. Accounting Today has more on that.
Speaking of the ACA, the IRS also announced that they are cracking down on ACA non-compliance. According to Accounting Today, “The IRS has started issuing Letter 226J penalty notices for the 2017 tax year, along with other penalty assessments related to ACA enforcement. Agency staff are spending more time reviewing potential ACA violations, and putting the onus on employers to prove they have complied with the law.”
IRS to Virtual Currency Owners: Pay Up
Speaking of cracking down, the IRS is after more than ACA violations. They’ve been sending letter to virtual currency owner who haven’t been reporting or paying taxes on income. Read our blog on that here.
This summer, the IRS sent out a new series to help Tax Firms understand what it takes to be cyber secure. This checklist, loaded full of resources is a must read. As tax pros, it’s our responsibility to protect taxpayer information. Check out our recap here.
Looking for a new opportunity? Want to make extra money in the off-season? The Income Tax School is hiring an Assistant Tax School Director to assist our Tax School Director in all aspects of managing and guiding the Curriculum, Instructors, Learning Management System, and School Admins. Get details here.
We’re also recruiting EAs to help us write curriculum during the off-season. Details can be found here.