We’ve been asked to share this message [below] regarding a change to how transcripts are received. Apologies…it is not the clearest message I’ve seen from us. Essentially, it is saying that folks will need to provide their ‘short ID’ when requesting transcripts through PPS.

As part of the IRS’ effort to continue combatting identity theft and protecting taxpayers’ personal information, we’re making changes that will impact how tax professionals receive transcripts.

Beginning April 8, 2024, tax professionals must call the Practitioner Priority Service (PPS) to request transcripts to be deposited into their Secure Object Repository (SOR). While PPS has been the primary avenue for these requests, other IRS toll-free lines will no longer offer the SOR as a delivery method.

Additionally, tax professionals need to pass the current required authentication and also verify their Short Identification (ID). The Short ID is a unique 8-10 alphanumeric code that is systemically assigned when an IRS account is established. This Short ID is visible when the tax professional logs in to their e-Services SOR. If the identity can’t be verified, transcripts will only be mailed to the address of record. PPS assistors cannot resolve issues with ID.Me identity proofing or the status of an ID.Me account.

All the best,

John

John Blakeman

Stakeholder Liaison Area 6

C&L-SL

Ph: (503) 265 - 3669

Email: John.W.Blakeman@irs.gov

Please share this email and flyers with your members, clients, staff, colleagues and anyone who may benefit from it. Feel free to share all this information on your website and social media platforms. 

Thank you in advance for sharing our information and providing feedback!

►Hot Off the Press

IR-2024-39: IRS shares seven warning signs Employee Retention Credit claims may be incorrect; urges businesses to revisit eligibility, resolve issues now before March 22.

IR-2024-48: Taxpayer Advocacy Panel seeks civic-minded volunteers to apply for the 2025 member year.

IR-2024-59: Registration opens for 2024 IRS Nationwide Tax Forum; five cities to host special sessions this summer.

IR-2024-56: IRS launches new effort aimed at high-income non-filers; 125,000 cases focused on high earners, including millionaires, who failed to file tax returns with financial activity topping $100 billion.

IR-2024-45: Tax Time Guide 2024: What to know before completing a tax return.

IR-2024-57: Never mind the myths; know the facts about receiving a Form 1099-K in 2024.

►Upcoming Webinars and Events

• IRS Face-to-Face Saturday Help: Click here for hours and locations

·       Check out our latest webinars here: Webinars for Tax Practitioners

·       Check out our latest webinars here: Webinars for Small Businesses

·       You can find recently recorded webinars here: IRS Video Portal

·       Workshops and Other Events in Spanish for Small Businesses: Talleres y Otros Eventos Para Pequeños Negocios

►New Tax Tips

• Military members and their families can get free tax help English | Spanish

• Eligible seniors have many free tax filing options  English | Spanish

► Cybersecurity and ID Theft News

• Tax pros: Watch out for EFIN scams

• Identity Theft Central | Internal Revenue Service (irs.gov)

• Identity Theft Information for Businesses

• Identity Theft Information for Tax Professionals

► We are Hiring!

• We have over 250 open job announcements, with multiple openings for each position

• Visit USAJobs.gov, search IRS, and check “Open to the public”

► IRS YouTube Channel

• Missing W-2 English | Spanish | ASL

• IRS Direct File Pilot Overview English

• 1099-K – Are you making extra cash selling stuff or providing services? English

For all IRS videos and the latest content, subscribe to IRSvideos - YouTube  

► Disaster Area Declarations

For a list of disaster declarations by state, check here IRS News Around the Nation

► Criminal Investigation Headlines

See Criminal Investigation Press Releases for all the latest headlines

►IRS.GOV & Additional Tax Professional Resources

• Bookmark the Tax Professionals Home:  https://www.irs.gov/tax-professionals.
• Follow @IRSTaxPros for by-the-minute updates on key issues affecting tax professionals and re-tweet. 
• Share tax information, the Outreach Connection offers tax information to share. 
• Subscribe to e-News for Tax Professionals for weekly information for tax professionals. 
• Subscribe to Quick Alerts. Quick Alerts will keep you up to date on events that affect Authorized IRS e-file Providers, as well as Issuers/Payers, Transmitters and Software Developers. Quick Alerts are designed to keep Tax Professionals informed on e-file issues, AIR issues and events almost the very moment they occur… 24/7. 
• Use the Tax Pro Account. Request Power of Attorney (POA) or Tax Information Authorization (TIA) online with Tax Pro Account.

►How to Share IRS Information on Social Media

When you find an article you want to share, click on the “Share” link. Like so: 

• Scroll to the bottom of any page on IRS.gov. Look for “Share / Print” 
• Click on Share 
• You can share on Facebook, Twitter, or LinkedIn 
• Please remember to let me know when you share so we can track it!

If you have any questions about IRS policies, practices and procedures, please contact me. If you email, please don’t send any personally identifiable information.

We’re interested to know how you share this information and the feedback you receive so we can adjust and enhance our resource tools to better fit your needs. Feel free to reply with a copy of your newsletter, social media post, etc. I would also like to be added to your email distribution list.

We appreciate your partnership!

John Blakeman

Stakeholder Liaison Area 6

C&L-SL

Ph: (503) 265 - 3669

Email: John.W.Blakeman@irs.gov

To register for a session, click the date/time below that best fits your schedule and mark your calendar! CE credits will not be offered:

Monday,  2/12/2024 at 12 p.m. Eastern│11 a.m. Central │10 a.m. Mountain & Arizona│9 a.m. Pacific│8 a.m. Alaska │7 a.m. Hawaii-Aleutian

Tuesday, 2/13/2024 at 1 p.m. Eastern│12 p.m. Central │11 a.m. Mountain & Arizona│10 a.m. Pacific│9 a.m. Alaska │8 a.m. Hawaii-Aleutian

Wednesday, 2/14/24 at 2 p.m. Eastern│1 p.m. Central │12 p.m. Mountain & Arizona│11 a.m. Pacific│10 a.m. Alaska │9 a.m. Hawaii-Aleutian

Thursday, 2/15/24 at 3 p.m. Eastern│2 p.m. Central │1 p.m. Mountain & Arizona│12 p.m. Pacific│11 a.m. Alaska │10 a.m. Hawaii-Aleutian

Friday, 2/16/24 at 3 p.m. Eastern│2 p.m. Central │1 p.m. Mountain & Arizona│12 p.m. Pacific│11 a.m. Alaska │10 a.m. Hawaii-Aleutian

Please share this invitation with your tax professional colleagues. 

Reminder: if a tax professional suspects that they may be the victim of Data Breach they should contact their local Stakeholder Liaison immediately.

John Blakeman

Stakeholder Liaison Area 6

C&L-SL

Ph: (503) 265 - 3669

Email: John.W.Blakeman@irs.gov

Please share this email and flyers with your members, clients, staff, colleagues and anyone who may benefit from it. Feel free to share all this information on your website and social media platforms. 

Thank you in advance for sharing our information and providing feedback!

►Hot Off the Press

• IR-2023-229: National Tax Security Awareness Week

• IR-2023-221: IRS Announces Delay in Form 1099-K Reporting Threshold

• IR-2023-217: IRS Reminds Eligible 2020 and 2021 Non-filers to Claim Recovery Rebate Credit

• Taxpayer Advocate Service - IRS Resumes Sending Some Collection Notices

►Upcoming Webinars and Events

• Form 1099-K Third Party Payment Network Transactions

  December 14, 2023  

  Time: 1:00 pm – 2:00 pm CT (1 CE Credits)

  Register here

   

• Circular 230: Professional Responsibility in Today’s Tax Practice

  December 19, 2023  

  Time: 1:00 pm – 3:00 pm CT (2 CE Credits)

  Register here

   

• Answering your frequently asked questions about due diligence

  January 10, 2024  

  Time: 1:00 pm – 2:00 pm CT (1 CE Credits)

  Register here

   

• Sailing through the rules of refundable tax credits
  

January 12, 2024  

Time: 1:00 pm – 2:00 pm CT (1 CE Credits)

Register here

• DUT Video - Documentation Upload Tool from a Notice (irsvideos.gov)

• Check out our latest webinars here: Webinars for Tax Practitioners

• Check out our latest webinars here: Webinars for Small Businesses

• You can find recently recorded webinars here: IRS Video Portal

• Workshops and Other Events in Spanish for Small Businesses: Talleres y Otros Eventos Para Pequeños Negocios

►New Tax Tips

• Time to renew Preparer Tax Identification Numbers by Dec. 31English

• Clean vehicle credits can help car buyers pay less at the dealership English

• Signing up to be an IRS-certified volunteer is a great way to help people English

► We are Hiring!

• We have over 250 open job announcements, with multiple openings for each position

• Visit USAJobs.gov, search IRS, and check “Open to the public”

► IRS YouTube Channel

• Come Work at the IRS - English

• For all IRS videos and the latest content, subscribe to IRSvideos - YouTube  

► Disaster Area Declarations

 For a list of disaster declarations by state, check here IRS News Around the Nation

► Criminal Investigation Headlines

(See Criminal Investigation Press Releases for all the latest headlines) 

►IRS.GOV & Additional Tax Professional Resources (for Tax Pros)

• Bookmark the Tax Professionals Home: https://www.irs.gov/tax-professionals.
• Follow @IRSTaxPros for by-the-minute updates on key issues affecting tax professionals and re-tweet. 
• Share tax information, the Outreach Connection offers tax information to share. 
• Subscribe to e-News for Tax Professionals for weekly information for tax professionals. 
• Subscribe to Quick Alerts. Quick Alerts will keep you up to date on events that affect Authorized IRS e-file Providers, as well as Issuers/Payers, Transmitters and Software Developers. Quick Alerts are designed to keep Tax Professionals informed on e-file issues, AIR issues and events almost the very moment they occur… 24/7. 
• Use the Tax Pro Account. Request Power of Attorney (POA) or Tax Information Authorization (TIA) online with Tax Pro Account.

►How to Share IRS Information on Social Media

When you find an article you want to share, click on the “Share” link. Like so: 

• Scroll to the bottom of any page on IRS.gov. Look for “Share / Print” 
• Click on Share 
• You can share on Facebook, Twitter, or LinkedIn 
• Please remember to let me know when you share so we can track it!

If you have any questions about IRS policies, practices and procedures, please contact me. If you email, please don’t send any personally identifiable information.

We’re interested to know how you share this information and the feedback you receive so we can adjust and enhance our resource tools to better fit your needs. Feel free to reply with a copy of your newsletter, social media post, etc. I would also like to be added to your email distribution list.

We appreciate your partnership!

IRS Newswire November 21, 2023
News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Contact My Local Office Filing Options Forms & Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media	Issue Number:    IR-2023-221 Inside This Issue IRS announces delay in Form 1099-K reporting threshold for third-party platform payments for 2023; plans for a threshold of $5,000 in 2024 to phase in implementation WASHINGTON — Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023. As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn’t expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023. Given the complexity of the new provision, the large number of individual taxpayers affected and the need for stakeholders to have certainty with enough lead time, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP). Following feedback from the tax community, the IRS is also looking to make updates to the Form 1040 and related schedules for 2024 that would make the reporting process easier for taxpayers. Changes to the Form 1040 series – the core tax form for more than 150 million taxpayers – are complex and take time; delaying changes to tax year 2024 allows for additional feedback. “We spent many months gathering feedback from third-party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” said IRS Commissioner Danny Werfel. “Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040. It’s clear that an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area.” The ARP required third party settlement organizations (TPSOs), which include popular payment apps and online marketplaces, to report payments of more than $600 for the sale of goods and services on a Form 1099-K starting in 2022. These forms would go to the IRS and to taxpayers and would help taxpayers fill out their tax returns. Before the ARP, the reporting requirement applied only to the sale of goods and services involving more than 200 transactions per year totaling over $20,000. The IRS temporarily delayed the new requirement last year. Reporting requirements do not apply to personal transactions such as birthday or holiday gifts, sharing the cost of a car ride or meal, or paying a family member or another for a household bill. These payments are not taxable and should not be reported on Form 1099-K. However, the casual sale of goods and services, including selling used personal items like clothing, furniture and other household items for a loss, could generate a Form 1099-K for many people, even if the seller has no tax liability from those sales. This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024 and other elements of the reporting requirement, including how best to focus reporting on taxable transactions. “The IRS will use this additional time to continue carefully crafting a way forward to minimize burden,” Werfel said. “We want to make this as easy as possible for taxpayers. We will work to make the new reporting requirements easier for them, and we’ll work closely with third-party groups, tax professionals and others to find the smoothest path to ensure compliance with the law. This is consistent with our Strategic Operating Plan. The IRS is focused on meeting taxpayers where they are and helping them get it right the first time.” Expanded information reporting, which will occur as the result of the change in thresholds for Form 1099-K, is important because it increases tax compliance and can reduce burden on taxpayers seeking to follow the law. The IRS believes that expansion must be managed carefully to help ensure that Forms 1099-K are issued only to taxpayers who should receive them. In addition, it's important that taxpayers understand what to do as a result of this reporting, and that tax professionals and software providers have the information they need to assist taxpayers. The IRS will continue to provide information on IRS.gov/1099Khttps://www.irs.gov/1099K. Fact Sheet 2023-27 contains more details about this announcement. Back to Top         Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

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Attendees: 

Internal Revenue Service

• John Blakeman, Stakeholder Liaison
• Lelah Martinez, Stakeholder Liaison
• Kristen Hoiby, Stakeholder Liaison
• Melissa Chapman, TAS AZ
• Sarah DeBurle, TAS WA

Practitioner Representatives

• Jeremy Saladino, WA
• Robin Smith, WSTC
• Lisa Rogers, AKSCPA
• Ami Oppe, AKSCPA
• Elliot Gidan, CO
• Brian Hein, OR
• Barbara Haluschak, WSTC
• Ellen Briscoe, NMSEA, NATP
• David Freeland, AAATP
• Harriet Strothers, OSCPA
• Shawn Mattingly, WA
• Judy Hanson, WSTC President
• Terry Bakker, OAIA
• Larry Hess, NMSCPA
• Anne Rothrock, NM
• Daniel Stearns, ORSEA
• Teresa Moore, WY
• LaVeta Scherer, WA NATP
• Barbara Culver, WSSEA
• Kate Grubb, WSSEA
• Jim McClaflin, WSSEA
• Gail Baudendistel, WA
• Vera Likhonin, WA
• Krish Perinkulam, AzSEA
• Steven Fox-Middleton, WA
• Cynthia Polley, WA
• Nina Tross, NSTP

Meeting Summary

PTIN Renewal underway:

All PTINs expire on December 31 of each year and are required to be renewed to be current and active. PTIN renewal open season begins mid-October each year for the following year. Renew online by logging into your PTIN account or by submitting a paper Form W-12 with the “Renewal” box checked. Online renewal takes about 15 minutes. Paper renewals take 4-6 weeks to process.

The renewal fee has been reduced to $19.75. For more information please visit the following link: PTIN Requirements for Tax Return Preparers | Internal Revenue Service (irs.gov)

Employee Retention Credit Claims Withdrawal Process:

Well, wouldn’t you know it…the thing we’ve been waiting for comes out the day after our last meeting. On October 19 the IRS sent out IR-2023-193 with an accompanying ‘Fact Sheet’ that spelled out the withdrawal process for those businesses that have ERC claims that have been filed with the IRS, but the business may be concerned as to the legitimacy of the claim. Here is the web page with the information on ERC: Employee Retention Credit | Internal Revenue Service (irs.gov)

On that page is a link to the page for the withdrawal instructions: Withdraw an Employee Retention Credit (ERC) claim | Internal Revenue Service (irs.gov) At the bottom of this page is the link to view the recorded webinar on the withdrawal procedures. The instructions seem to be very straightforward.

VITA and TCE:

It’s VITA time again, friends! The Internal Revenue Service recently awarded $51 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants to organizations that provide free federal tax return preparation. This year, the IRS awarded grants to 45 TCE and 300 VITA applicantsPDF

Would you or someone you know be interested in volunteering for VITA/TCE? For information on applying for the TCE or VITA programs along with a list of current grant recipients, visit the TCE webpage or the VITA webpage. For details on becoming a TCE or VITA volunteer, visit IRS Tax Volunteers.

Electric Vehicle Credits Online Portal:

News release IR-2023-206 put out on November announced that the Energy Credit Online tool is up and running.  Dealers and sellers of clean vehicles must use this online tool to register and report clean vehicle sales that occur on or after January 1, 2024. This includes manufacturers who sell directly to customers. Once registered, dealers and sellers must use this tool to furnish required information to the IRS for those vehicles to be eligible for a credit under IRC 30D (and for the buyers to receive credits).

It should be noted that the IRS uses ID.me for this tool as well.  At this time only the Business owner can register the business. 

Please note: At this time, you can only register your business. We'll expand the tool to allow time-of-sale reports before January 1, 2024, reporting requirement date. Once available, all time-of-sale reports must be submitted through this tool.

Questions and Answers!

Q: We have a concern, again, over PPS and uploading POA Form 2848, but they are not being recorded. We’ve had instances where the assistor says the fax has not come through although fax on preparer end says it’s been received and assistors have hung up before fax even goes through completely. Please understand, when dealing with a deceased TP issue, the fax we send isn’t just the POA…it will have the Letters Testamentary with it, so it will be a bit longer of a fax than normal. Could we please have a phone number to call and get assistance with Form 2848 or Form 8821 issues?

A: We intend to elevate this issue. Please remember to save the pertinent data when these occurrences happen. Note the time of day, the assistor’s name and badge number, and the fax number that was given to use…save the pertinent facts and send them to your SL.

Q: There were several questions on the Clean Vehicle Credit, and how the transfer works, and what happens if the purchaser of the vehicle doesn’t qualify for all the credit they got?

A: Here is the FAQ page regarding transfer of the credit. There’s really good information here: Topic H — Transfer of New Clean Vehicle Credit and Previously-Owned Clean Vehicles Credit | Internal Revenue Service (irs.gov)

Q: We had a client with a Household Employee who forgot to get an EIN. We got the EIN in the current year and tried efiling the return due [previous year’s return] but efile rejected since EIN was obtained in current year. We wound up sending in the return on paper, but was there anything that could be done to efile the return?

A: It seems that was the proper procedure for sending in that return.

Next Scheduled Meeting; Wednesday, January 17, 2023

WISHING ALL A WARM AND COZY HOLIDAY SEASON !!!!

Please share this email with your members, clients, staff, colleagues and anyone who may benefit from it. Feel free to share all this information on your website and social media platforms. 

Thank you in advance for sharing our information and providing feedback!

►Hot Off the Press

• IR-2023-169: IRS orders immediate stop to new Employee Retention Credit processing amid surge of questionable claims; concerns from tax pros

• IR-2023-182: IRS delivers new capabilities to Tax Pro Account

• IR-2023-178: IRS expands use of chatbots to help answer questions on key notices

• IR-2023-181: Guidance on employer leave-based donation programs that aid victims of the wildfires in Hawaii 

►New Tax Tips

• Tax Tip 2023-115 – Businesses must electronically file Form 8300 for cash payments over $10,000

• Tax Tip 2023-113 – Builders of new energy efficient homes may qualify for an expanded tax credit

► Cybersecurity and ID Theft News

• Red flags for Employee Retention Credit claims English | Spanish

► We are Hiring!

• We have over 200 open job announcements, with multiple openings for each position

• Latest News! IRS to establish special pass-through organization to help with high-income compliance efforts:

• Apply here: USAJOBS – Revenue Agent
• Salary: $98,496 - $158,432 per year
• 3,772 positions open nationwide.

• Visit USAJobs.gov, search IRS, and check “Open to the public”

► IRS YouTube Channel

• IRS Office of Online Services is Hiring - English

• The IRS is Hiring Revenue Agents Nationwide - English

For all IRS videos and the latest content, subscribe to IRSvideos - YouTube  

► Disaster Area Declarations

For a list of disaster declarations by state, check here IRS News Around the Nation

► Criminal Investigation Headlines

(See Criminal Investigation Press Releases for all the latest headlines) 

►IRS.GOV & Additional Tax Professional Resources

• Bookmark the Tax Professionals Home:  https://www.irs.gov/tax-professionals.
• Follow @IRSTaxPros for by-the-minute updates on key issues affecting tax professionals and re-tweet. 
• Share tax information, the Outreach Connection offers tax information to share. 
• Subscribe to e-News for Tax Professionalsfor weekly information for tax professionals. 
• Subscribe to Quick Alerts. Quick Alerts will keep you up to date on events that affect Authorized IRS e-file Providers, as well as Issuers/Payers, Transmitters and Software Developers. Quick Alerts are designed to keep Tax Professionals informed on e-file issues, AIR issues and events almost the very moment they occur… 24/7. 
• Use the Tax Pro Account. Request Power of Attorney (POA) or Tax Information Authorization (TIA) online with Tax Pro Account.

►How to Share IRS Information on Social Media

When you find an article you want to share, click on the “Share” link.

• Scroll to the bottom of any page on IRS.gov. Look for “Share / Print” 

• Click on Share 
• You can share on Facebook, Twitter, or LinkedIn 
• Please remember to let me know when you share so we can track it!

If you have any questions about IRS policies, practices and procedures, please contact me. If you email, please don’t send any personally identifiable information.

We’re interested to know how you share this information and the feedback you receive so we can adjust and enhance our resource tools to better fit your needs. Feel free to reply with a copy of your newsletter, social media post, etc. I would also like to be added to your email distribution list.

We appreciate your partnership!

John Blakeman

Stakeholder Liaison Area 6

C&L-SL

Ph: (503) 265 - 3669

Email: John.W.Blakeman@irs.gov

Please share the attachments [links below] with your members, advisors, customers and clients. The news releases describe the status of ERC claims processing and the warning signs of ERC scams, and the checklist contains if/then circumstances for determining ERC eligibility. 

• IR-23-169 ERC Claim Processing
• IR-23-170 ERC Scams Warning Signs
• ERC Eligibility Checklist

Please share this email and flyers with your members, clients, staff, colleagues and anyone who may benefit from it. Feel free to share all this information on your website and social media platforms. 

Thank you in advance for sharing our information and providing feedback!

► Hot Off the Press

• IR-2023-154 - Interest rates increase for the fourth quarter 2023

• 8% for underpayments (taxes owed but not fully paid)

• IR-2023-158 - IRS issues guidance on state tax payments

• IR-2023-140 - Home energy audits may qualify for an Energy Efficient Home Improvement Credit

• IR-2023-157 - Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning Jan. 1, 2024

► Upcoming Webinars and Events

Qualified Educational Assistance Programs

September 14, 2023  

Time: 1:00 pm – 2:00 pm CT (1 CE Credits)

Register here

Preparation of Form 1040-NR, U.S. Nonresident Alien Income Tax Return

September 26, 2023  

Time: 1:00 pm – 3:00 pm CT (up to 2 CE Credits)

Register here

Mortgage & Other Interest Expense Allocation & Apportionment for Individuals with Partnership Interests Form 1116 and Schedule K-3

September 28, 2023  

Time: 1:00 pm – 2:00 pm CT (1 CE Credits)

Register here

►New Tax Tips

• Tax Tip 2023-100 - Information for organizations applying for tax-exempt status.

• Tax Tip 2023-107 - Keeping vital records safe can make disaster recovery easier

► Cybersecurity and ID Theft News

• Tax Tip 2023-106 - Tax professionals must act fast after discovering a data breach

• IR-2023-147- Security Summit: IRS reminds tax pros to plan, protect, defend against identity theft; special summer series concludes with important reminders.

► We are Hiring!

• We have over 250 open job announcements, with multiple openings for each position

• Visit USAJobs.gov, search IRS, and check “Open to the public”

► IRS YouTube Channel

• IRS Office of Online Services is Hiring - English

• Do You Qualify for an Education Tax Credit? - English

For all IRS videos and the latest content, subscribe to IRSvideos - YouTube  

► Disaster Area Declarations  

For a list of disaster declarations by state, check here IRS News Around the Nation

► Criminal Investigation Headlines

     See Criminal Investigation Press Releases for all the latest headlines 

► IRS.GOV & Additional Tax Professional Resources

• Bookmark the Tax Professionals Home:  https://www.irs.gov/tax-professionals.
• Follow @IRSTaxPros for by-the-minute updates on key issues affecting tax professionals and re-tweet. 
• Share tax information, the Outreach Connection offers tax information to share. 
• Subscribe to e-News for Tax Professionalsfor weekly information for tax professionals. 
• Subscribe to Quick Alerts. Quick Alerts will keep you up to date on events that affect Authorized IRS e-file Providers, as well as Issuers/Payers, Transmitters and Software Developers. Quick Alerts are designed to keep Tax Professionals informed on e-file issues, AIR issues and events almost the very moment they occur… 24/7. 
• Use the Tax Pro Account. Request Power of Attorney (POA) or Tax Information Authorization (TIA) online with Tax Pro Account.

►How to Share IRS Information on Social Media

When you find an article you want to share, click on the “Share” link. Like so: 

• Scroll to the bottom of any page on IRS.gov. Look for “Share / Print” 
• Click on Share 
• You can share on Facebook, Twitter, or LinkedIn 
• Please remember to let me know when you share so we can track it!

If you have any questions about IRS policies, practices and procedures, please contact me. If you email, please don’t send any personally identifiable information.

We’re interested to know how you share this information and the feedback you receive so we can adjust and enhance our resource tools to better fit your needs. Feel free to reply with a copy of your newsletter, social media post, etc. I would also like to be added to your email distribution list.

We appreciate your partnership!

August 16, 2023
Pacific Northwest Action Wednesday IMRS Call
Virtual Meeting via MS Teams
Time: 10:00 am –11:00 am (PDT)

Attendees: 

Internal Revenue Service

• John Blakeman, Stakeholder Liaison
• Mercean Lam, Stakeholder Liaison
• Lisa Novack, Stakeholder Liaison
• David Higgins, Collection [on Detail to Stakeholder Liaison]
• Lelah Martinez, Stakeholder Liaison
• Kristen Hoiby, Stakeholder Liaison

Practitioner Representatives

• Terry Bakker, OAIA
• Laurie Brock, TAP Oregon, prev.
• Steve Stauss, NM
• Robin Smith, WSTC
• Steven Fox-Middleton, WA
• Judy K Hanson, WSTC President
• Barb Haluschak, WSTC
• Lisa Rogers, AKSCPA
• Ami Oppe, AKSCPA
• Elliot Gidan, CO
• Kate Grubb, WSSEA
• Larry Hess, NMSCPA
• James Adelman, NAEA, OSEA
• Doug Henne, OSCPA
• Barbara Culver, WSSEA
• Dale Marino, OATC
• Ellen Briscoe, NMSEA, NATP
• Steven Hall
• Anne Rothrock, NM
• Mark Neumeister, OK
• Michael Davidson, ORSEA
• Donna Patterson, TAP Washington
• Edwin del Carpio, WA
• Vera Likhonin, STA, WA
• Paula Moore, AK Bar
• Robin Harris, OK
• Sarah Northcutt, OSCPA
• Sarah Lora, Lewis & Clark LITC
• Cynthia Polley, WA

Meeting Summary

Data Security for Tax Professionals:

Just in case you have not heard the news… as of June 9, 2023, the FTC Standards for Safeguarding Customer Information rule, better known as the Safeguards Rule (which is part of the Gramm-Leach-Bliley Act) has now entered the enforcement stage.  

The Rule requires financial institutions to develop, deploy and maintain a comprehensive security program to keep their customer financial data safe. Financial institutions are not just banks under the FTC’s eyes.  Tax and accounting professionals are considered financial institutions regardless of size. This also includes mortgage brokers, real estate appraisers, universities, nonbank lenders, and check cashing businesses.

The good news is that if you have already been complying with IRS Publication 4557, Safeguarding Taxpayer Data, you will already be in good shape and may only need to add a few additional security measures to comply with the FTC Safeguards Rule.

The concern will be for firms who have been attesting that they have a Written Information Security Plan (WISP) in place for their PTIN renewal, but really don’t.

Pub 4557, Safeguarding Taxpayer Data, and the Safeguards Rule:

It is important to understand how Pub 4557 and the Safeguards Rule work together, IRS Publication 4557 sits “under” or “within” the FTC Safeguards Rule.  All firms who provide tax prep services for their clients are subject to BOTH Pub 4557 and the Safeguards Rule, because providing paid tax preparation services is called out specifically on the FTC website and IRS Publication 4557.

Under Both

Firms must designate a person to be in charge to make sure that security policies are adhered to.  The designate will assess overall risk, and then design policies to ensure that all Personally Identifiable Information (PII) and Customer Information is encrypted, transmitted, and stored safely.  Access would be limited to only those who need it, and background checks being required before hiring employees or contractors.  Security software must be used, all hardware is encrypted and inventoried, network protections are put in place, strong password policies adhered to, and Multi-Factor Authentication used.  A WISP, or Written Information Security Plan, is created to document that the firm is following all recommended security requirements and has the necessary policies and procedures in place to keep all clients’ data safe.  Annually, staff are trained, safeguards are tested and the WISP is reviewed for updates.

Just FTC

For firms with 5,000 or more combined current and past clients on their data banks that provide client accounting services (CAS) (Financial Planning) or Payroll Services, FTC mandates that these companies also adhere to the Safeguards Rule.

Also just within the FTC requirements is choosing a QUALIFIED individual to assess the security risk in the firm’s operations, create a Written Risk Assessment, and then create policies and procedures to mitigate the risks. These policies from the firm’s WISP or Written Information Security Plan will be used to ensure that all staff are trained to prevent and spot security risks.  Additionally, that person must report annually to the firm’s Board of Directors.

If you are overwhelmed or have a smaller firm and don’t have a qualified IT person working in-house or under contract, you should consider engaging a Managed Service Provider (MSP) to manage the firm’s overall data and network security infrastructure and to help in creating the policies required and rolling them out to your staff.

Publication 5708 – Creating a Written Information Security Plan for Your Tax and Accounting Practice

If you are a do-it-your-selfer, the bare essentials of a Written Information Security Plan are outlined on page 4 of Pub 5708, with links for more details within each section.

There is also a fill-in-the blank sample WISP template on pages 5-12

Additional Considerations – On pages 13-16 it gives you more explanation on how to:

• Define the WISP objectives, purpose and scope
• Identify responsible individuals
• Assess Risks
• Inventory Hardware (template on page 24)
• Document Safety Measures – Like how to set up policy for remote workers
• Draft an Implementation Clause stating when security measures are started and how they are compliant with the Gramm Leachy Bill Act and FTC
• Include certain attachments such as the Records Retention Policy

Best Practices:

• Going over written security rules of conduct and having your employees sign it before each filing season and using articles from the Ouch! Newsletter from SANS.ORG for security topics at staff meetings.
• Have a list of who can access PII and what information they have access to

Some additional Resources:

In addition to Pub 4557 and 5708, here are a couple of additional resources…firstly, to the Federal Trade Commission website: Federal Trade Commission | Protecting America's Consumers (ftc.gov) and here is a copy of the FTC Data Breach Response Guide:

The Data Breach Response Guide is AMAZING!  It spells everything that you need to do, from taking your systems down to a sample client letter.  IRS mentions it in our Publication 5708 to read before starting to draft your WISP.

IPPIN Program:

What else can we do to thwart identity thieves from filing fraudulent tax returns? We can all help promote the IPPIN program! 

Some folks view the IPPIN program as a positive thing and already actively promote it, but some are not so sure it’s a good thing…or at least it’s not that good yet.

We have heard a lot of feedback by this time on the IPPIN Program, both positive and negative, but The biggest reason that we hear that practitioners do not want to promote it is because that their clients lose them. Yes, this is true…clients lose 1099s and W-2s also…and other stuff…we’ve all got stories.

An IPPIN is often retrievable: Retrieve Your IP PIN | Internal Revenue Service (irs.gov)

But if they can not retrieve it, you will have to print out their return and have them sign, date and mail it to the IRS. And, of course, you might be thinking, ‘I don’t want my client’s returns to end up in a stack of paper…’ but let’s look at the current statistics.  According to our Mission-Critical Function page as of August 16, 2023, on the backlogs:

• Processing for paper 1040’s without errors is now just taking 21 days, which is where this return would end up

                             versus

• Taking 430 days if your client’s information gets fraudulently filed by an ID thief.

Another reason we hear is that the IPPIN is just too hard to get…some folks just can’t seem to get past the identity verification process. Specifically, they can’t seem to be able to get the ID.me credential. Please remember, there are other ways to get the IPPIN, and you can get info on that here at this link: Get An Identity Protection PIN | Internal Revenue Service (irs.gov). For example, Form 15227 for people with certain AGI levels, and of course at a Taxpayer Assistance Center [TAC]. Taxpayer Advocate can also assist with the process for people who are disabled/mobility challenged and can’t get to the TAC.

And then there’s the ‘I just don’t want to sign up for it…or promote it…etc…’. Which is also human nature, but consider this…IPPIN is a valid tool for keeping fraudulent tax returns from being filed…if you do get breached, and if your client[s] have fraudulent tax returns filed and there was a way to avoid that…a way that you knew about, but didn’t say…that might not look so hot to some people…

Currently trending in the myriad of ways systems are hacked/breached are:

• Phishing texts impersonating the IRS
• Software [fraudulent] companies letting practitioners know that they have been breached [that’s a tough one…remember to call your software provider, and not any number in the email!]
• Insider threats (physical theft and employee retaliation)
• Cloud-based platforms being accessed
• Impersonators (like Geek Squad, MicroSoft, Microsoft Defender, web developers, IRS and credit card companies)
• Live screenshare

As a reminder, if you have not heard about the IRS impersonation mail scam, do a search for IRS News Release IR-2023-123 : IRS, Security Summit partners warn taxpayers of new scam; unusual delivery service mailing tries to trick people into sending photos, bank account information | Internal Revenue Service . 

This new release speaks to a new IRS impersonating mailing scam that tries to mislead people into believing that they are owed a refund.  It asks for things like copies of their drivers licenses along with other PII.  The grammar is off and it mentions getting a property claim instead of a tax refund.  Since this is a scam impersonating the IRS, these incidents should be reported to TIGTA.

IRS Ends Unannounced RO Visits:

As part of a larger transformation effort, the Internal Revenue Service today announced a major policy change that will end most unannounced visits to taxpayers by agency revenue officers to reduce public confusion and enhance overall safety measures for taxpayers and employees.

The change reverses a decades-long practice by IRS revenue officers, the unarmed agency employees whose duties include visiting households and businesses to help taxpayers resolve their account balances by collecting unpaid taxes and unfiled tax returns. Effective immediately, unannounced visits will end except in a few unique circumstances and will be replaced with mailed letters to schedule meetings.

IRS Commissioner Danny Werfel announced the change as part of a larger effort to transform IRS operations following passage of the Inflation Reduction Act last year and the creation of the new IRS Strategic Operating Plan in April.

Taxpayer Assistance Centers to reopen:

35 TACs have reopened or been added thanks to the IRA funding…relevant to us PNWAW folks, this means that we’ll see TACS again at Bend, OR; Bellingham, WA; Colorado Springs, CO; Grand Junction, CO; Santa Fe, NM; and Glendale, AZ

Issues, Questions and Concerns:

Update: we have formally submitted the issue regarding IRS handling of Form 56.

Concern: We had a few questions on IPPINS today, one with a person who could not find their IPPIN and others with issues getting ID.me credential…Please see the section on IPPINs above for links to information and assistance.

Comment: One practitioner commented that while they don’t promote the IPPIN program actively, they do have clients who have signed up and the last few have received an IPPIN in about half an hour, so there has been real improvement to the level of service on the phones.

Q: Is there an option to ‘opt out’ of the IPPIN program?

A: Currently there is no option for opting out of the program…it is under consideration, but nothing definitive.

Q: I see the IRS is expanding free file.  When will this be rolled out more extensively?  What are the restrictions for use? Does it still rely on providers that re-direct to paid file? What can we expect in the future on this front?

A: We will look into this and report back at the next meeting.

Q: Seems the Tax Pro Online Account was supposed to get some new functionality in the way of linking and viewing POAs, but we are not seeing that it has happened yet? Any news?

A: It could be that the changes have not altogether taken place yet. Sometimes there’s a few days delay…and one preparer did comment that one needs a PIN for complete functionality and the process takes a few weeks…

Q: ID.me is still really hard to get…next to impossible for some people. We have a client with some physical challenges that make it hard to get past the ID.me process.

A: We are hearing this from time to time regarding the folks with real physical or mental challenges not being able to work with ID.me. TAS has offered to help in these situations where the person may have issues that make ID.me unavailable for all practical purposes…or at least to do it on their own. So if the client is in a memory care facility, or other debilitating situation, TAS can help facilitate communication.

Q: How would we report these abusive ERC scheme promoters if we encounter them?

A: Here is the web page on IRS.gov with the information on reporting abusive scams: Abusive Tax Schemes and Abusive Tax Return Preparers - IRS Lead Development Center | Internal Revenue Service

We have an excellent web page on IRS.gov that speaks to the ERC, including signs of scams, and the link to the FAQ page as well: Employee Retention Credit | Internal Revenue Service (irs.gov)

Next Scheduled Meeting, Wednesday September 20, 2023

Google, Meta, and several tax prep companies, including H&R Block and TaxAct, are fielding an escalating number of U.S. lawsuits alleging that they allowed tracking pixels to unlawfully collect taxpayers’ confidential information as they filed their federal income tax returns online.

The claims, which were first reported in November 2022 by investigative news outlet The Markup, have raised concerns about potential common law privacy violations, federal wiretapping violations, and violations of the IRC.

The IRC requires federal income tax returns and tax return information to remain confidential under section 6103(a), unless an exception applies. There is a third-party exception (section 6103(c)) that obligates third parties that receive return information to use it only as the taxpayer authorizes. “Persons designated by the taxpayer under this subsection to receive return information shall not use the information for any purpose other than the express purpose for which consent was granted and shall not disclose return information to any other person without the express permission of, or request by, the taxpayer,” the statute says.

There are questions about whether the information allegedly captured by Google and Meta might violate the IRC’s criminal disclosure statute, section 7216, and whether taxpayers can seek civil damages under section 7431(a)(2). Former National Taxpayer Advocate Nina Olson extensively discussed that question after the story broke and said that taxpayers might be hamstrung by mandatory arbitration clauses located in the prep companies’ terms of use.

The claims have also caught the attention of a group of Democratic lawmakers, who investigated the companies and are now calling on the IRS to develop a free, direct e-file system in which taxpayers can bypass third-party tax return prep companies and directly file their returns with the IRS. Doing so would bring the United States into alignment with its international peers, but it would require significant changes to the agency’s customer service and online service capabilities.

READ THE REST OF THE ARTICLE ON TAXNOTES.COM

Google, Meta, and several tax prep companies, including H&R Block and TaxAct, are fielding an escalating number of U.S. lawsuits alleging that they allowed tracking pixels to unlawfully collect taxpayers’ confidential information as they filed their federal income tax returns online.

The claims, which were first reported in November 2022 by investigative news outlet The Markup, have raised concerns about potential common law privacy violations, federal wiretapping violations, and violations of the IRC.

The IRC requires federal income tax returns and tax return information to remain confidential under section 6103(a), unless an exception applies. There is a third-party exception (section 6103(c)) that obligates third parties that receive return information to use it only as the taxpayer authorizes. “Persons designated by the taxpayer under this subsection to receive return information shall not use the information for any purpose other than the express purpose for which consent was granted and shall not disclose return information to any other person without the express permission of, or request by, the taxpayer,” the statute says.

There are questions about whether the information allegedly captured by Google and Meta might violate the IRC’s criminal disclosure statute, section 7216, and whether taxpayers can seek civil damages under section 7431(a)(2). Former National Taxpayer Advocate Nina Olson extensively discussed that question after the story broke and said that taxpayers might be hamstrung by mandatory arbitration clauses located in the prep companies’ terms of use.

The claims have also caught the attention of a group of Democratic lawmakers, who investigated the companies and are now calling on the IRS to develop a free, direct e-file system in which taxpayers can bypass third-party tax return prep companies and directly file their returns with the IRS. Doing so would bring the United States into alignment with its international peers, but it would require significant changes to the agency’s customer service and online service capabilities.

CLICK TO CONTINUE READING THE ARTICLE ON TAXNOTES.COM...

Greetings friends,

This is the last in our Security Summit series of messages for tax professionals. This week’s wrap-up reminds tax professionals to take important steps to reduce the risk of having their data compromised… in other words, please put these practices to use, and don’t just think about them.

All the best always,

John

John Blakeman
Stakeholder Liaison Area 6 C&L-SL
Ph: (503) 265 - 3669
Email: John.W.Blakeman@irs.gov

Tax Pros,

Please feel free to share this information with your members, clients, staff, colleagues and anyone who may benefit from it. Feel free to share all this information on your website and social media platforms. 

IRS reminds tax pros to plan, protect, defend against identity theft (IR-2023-147)

Wrapping up a special awareness series, the Internal Revenue Service and the Security Summit partners urged tax pros to maintain robust security measures and take important steps to protect themselves and their taxpayer clients against identity theft.

Tax-related identity theft scams continue targeting tax professionals with a regular bombardment of scams and schemes that seek to gain access to sensitive taxpayer information. These schemes continue to evolve and ensnare victims, threatening both tax professionals and the clients they serve.

In today's conclusion of the special five-part "Protect Your Client; Protect Yourself" series, the IRS and Summit partners urge tax professionals to take critical steps to protect their information, including taking extra care with how they handle data and security at their business and at home.

"Tax professionals form a central part of the tax community's defense against identity thieves and cyberattacks," said IRS Commissioner Danny Werfel. "Ensuring strong security at a tax practice – regardless of its size – will help protect not just the business, but also help safeguard individual taxpayers as well as state and federal tax agencies from fraud. The IRS and the Security Summit partners continue to urge tax professionals to take important steps to protect their clients and themselves from identity thieves."

The Security Summit is a public-private partnership created in 2015 that works to protect the tax system against tax-related identity theft and fraud. The partnership has successfully strengthened fraud defenses inside the tax system to protect against identity theft, including by sharing information about emerging fraud and cyber schemes.

A key part of those defenses involves awareness among tax professionals and the taxpaying public. This news release series provides important information to help protect sensitive taxpayer data that tax professionals hold while also protecting their business from identity thieves. This marks the eighth year that the Security Summit partners have worked to raise awareness about these issues through the "Protect Your Clients; Protect Yourself" campaign as well as special seminars at the IRS Nationwide Tax Forums, which continue later this month in San Diego and Orlando.

The Security Summit partners also continue to remind tax professionals about the importance of setting up a Written Information Security Plan PDF  or WISP. The 28-page, easy-to-understand document was developed by and for tax and industry professionals to keep customer and business information safe and secure. The special template is designed to help tax professionals, especially smaller practices, make data security planning easier. Special sessions on the WISP have had standing room only audiences at the Tax Forum sessions so far this summer, with more than 300 attending last week's session in Washington D.C.

Important reminders for tax pros, taxpayers to reduce identity theft risk:

• Be cautious of email attachments and web links. Do not open a link or attachment that arrives unexpectedly. Many scammers can imitate legitimate businesses, taxpayer clients and government agencies, including the IRS. If in doubt about something you receive, independently contact the sender to confirm receipt and the validity of any unexpected links or attachments before opening.

• Do not send sensitive business information to personal email devices. Do not conduct business, including online business banking, on a personal computer or device. Likewise, do not engage in web surfing, gaming or video downloading on business computers or devices. All of these can add to security risks.

• Do not share USB drives or external hard drives between personal and business computers or devices. Never connect an unknown/untrusted piece of hardware to the tax pro's system or network. Also do not insert any unknown CD/DVD or USB drives. Disable the "Autorun" feature for USB ports and optical drives on business computers to help prevent malicious programs from being installed.

• Be careful with downloads. Do not download software from an unknown web page. Always exercise caution with freeware or shareware.

• Use strong passwords. Never give out usernames or passwords to others. Strong passwords consist of a random sequence of upper and lower-case letters that include numbers and special characters. Ideally, passwords should be at least 14 characters long. For systems or applications that have sensitive information, use multiple forms of identification (multifactor or dual-factor authentication).

• Change default passwords. Many devices come with default administrative passwords. Change them immediately and regularly thereafter. Default passwords are easily found or known by hackers.

• Change passwords often. Every three months is recommended. Consider using a password management application to store passwords. Passwords to devices and applications that contain business information should not be reused.

In addition, because many continue working from home either full- or part-time, the IRS and Security Summit partners also urge:

• The use of virtual private networks, or VPNs, to securely conduct business, a step that can reduce the threat of data loss.

• Use caution with online business/commerce and banking. This should only be done while using a secure browser connection and never at a coffee shop, restaurant or other business offering 'free' Wi-Fi.

• Use of separate personal and business computers, mobile devices and email accounts. This is particularly important for those who may share hardware with other family members, especially children, who may not be aware of safety protocols.

Additional resources

If a tax pro or their firm are the victim of data theft, they should report it to their local IRS Stakeholder Liaison. Speed is critical. IRS Stakeholder Liaisons will ensure all the appropriate IRS offices are alerted. If reported quickly, the IRS can take steps to block fraudulent returns in the clients' names and will assist tax pros through the process.

In addition to reviewing IRS Publication 4557, Safeguarding Taxpayer Data PDF , tax professionals can also get help with security recommendations by reviewing Small Business Information Security: The Fundamentals PDF , by the National Institute of Standards and Technology.

The IRS' Identity Theft Central pages for tax pros, individuals and businesses have important details as well.

Publication 5293, Data Security Resource Guide for Tax Professionals PDF , provides a compilation of data theft information available on IRS.gov.

Greetings friends,

Attached and below is this week’s Security Summit series release. This week focuses on ‘red flags’ or things to watch out for that can be signs of identity theft. As always, please share this information with all whom you feel would benefit from it.

• Security Summit reminder: Identity theft red flags tax pros should know
• Security Summit reminder: Identity theft red flags tax pros should know (in Spanish)
• Security Summit reminder: Identity theft red flags tax pros should know (in Chinese)

All the best,

John
John Blakeman
Stakeholder Liaison Area 6
C&L-SL
Ph: (503) 265 - 3669
Email: John.W.Blakeman@irs.gov

Security Summit reminder: Identity theft red flags tax pros should know

IR-2023-143, Aug. 8, 2023

WASHINGTON — In the fourth of a special series, the Internal Revenue Service and the Security Summit partners today urged tax professionals to learn the signs of data theft so they can respond quickly to protect clients.

Tax professionals have a precious commodity that identity thieves desperately want — client tax information. With stronger fraud defenses put in place by the IRS and Security Summit partners, identity thieves need this essential information to help complete their crime.

"It’s important for tax professionals to protect their systems from identity thieves who always look for new methods to steal data," said IRS Commissioner Danny Werfel. "There are practical ways for practitioners to keep on top of the latest trends and signs of data and identity theft."

The IRS, state tax agencies and the nation’s tax industry – working together as the Security Summit – reminded tax professionals that they should contact the IRS immediately when there's an identity theft issue while also contacting insurance or cybersecurity experts to assist them with determining the cause and extent of the loss.

This is the fourth in a five-part " Protect Your Client; Protect Yourself" summer series from the Security Summit, a public-private partnership that works to protect the tax system against tax-related identity theft and fraud.

The news release series and the IRS Nationwide Tax Forums , which begin today in the Washington, D.C., area, provide important information to help protect sensitive taxpayer data that tax professionals hold while also protecting their business from identity thieves. This marks the eighth year that the Security Summit partners have worked to raise awareness about these issues through the " Protect Your Clients; Protect Yourself" campaign.

Tax professional victims have frequently shared their concern with IRS that they did not immediately spot the signs of data theft. Here are some things that can help.

Tax pros: Know the warning signs

Tax pros should be on the lookout for these critical warning signs from their clients:

• Clients receive notice that an IRS Online Account was created without their consent or that:

• Someone accessed their IRS Online Account without their knowledge.
• The IRS disabled their Online Account.

• Clients receive a tax transcript they didn't request.

• Balance due or other notices from the IRS are received that are not correct based on the tax return filed.

• Clients respond to calls or emails the tax pro didn't make.
• Clients receive refunds without filing a tax return.

Tax professionals should also watch for these red flags when their business experiences:

• Slow or unexpected computer or network responsiveness such as:

• Software or actions take longer to process than usual.
• Computer cursor moves or changes numbers without touching the mouse or keyboard.
• Unexpectedly being locked out of a network or computer.

• Client tax returns being rejected because their Social Security number was already used on another return.
• IRS authentication letters (5071C, 6331C, 4883C, 5747C) being received even though a tax return hasn’t been filed.
• Getting more e-file receipt acknowledgements than the tax pro filed.

While these are only a few examples, tax pros should ensure they have the highest security possible and be ready to react quickly to protect themselves and their clients. To help tax pros, the Summit partners created the Written Information Security Plan or WISP is a 28-page, easy-to-understand document developed by and for tax and industry professionals to keep customer and business information safe and secure.

Report immediately

If a tax pro or their firm are the victim of data theft, they should:

• Report it to their local IRS Stakeholder Liaison. Speed is critical. IRS Stakeholder Liaisons will ensure all the appropriate IRS offices are alerted. If reported quickly, the IRS can take steps to block fraudulent returns in the clients' names and will assist tax pros through the process.

• Email the Federation of Tax Administrators at StateAlert@taxadmin.org. They will provide guidance on reporting to state tax agencies. Most states require that the state attorney general be notified of data breaches.

• Tax professionals should be pro-active with clients that could have been impacted and suggest appropriate actions, such as obtaining an IP PIN or completing a Form 14039, Identity Theft Affidavit, if applicable.

Find more information at Data Theft Information for Tax Professionals.

Additional resources

• Publication 5293, Data Security Resource Guide for Tax Professionals, provides an overview and resources about how to avoid data theft.
• Tax professionals can also get help with security recommendations by reviewing IRS Publication 4557, Safeguarding Taxpayer Data, and the IRS’ Identity Theft Central pages for tax pros.
• Small Business Information Security: The Fundamentals, by the National Institute of Standards and Technology.
• Tax professionals should stay connected to the IRS through subscriptions to e-News for Tax Professionals and its social media sites.

Greetings friends,

Attached is our 3^rd release for the 5-week Security Summit Series. This week’s topic addresses the importance of staying alert for potential phishing emails and cloud-based attacks. Please feel free to share the information with all whom you believe would benefit from it.

All the best,

John Blakeman, Stakeholder Liaison Area 6

IR-2023-138:  Security Summit: Tax pros should remain vigilant against phishing emails and cloud-based attacks

IR-2023-138SP:    Cumbre de seguridad: los profesionales de impuestos deben permanecer atentos a los correos electrónicos de phishing y los ataques basados en la nube

IR-2023-138CHI:  安全峰会：税务专业人士应保持警惕，防范网络钓鱼电子邮件和云端攻击

Good morning, friends,

This is week 2 of the Security Summit Series. Our focus this week is on IP PINS!  IPPINS are for everyone now, not just identity theft victims.

All the best,

John                                                                                             

• IR-2023-134:  Security Summit: Identity Protection PINs are an important tool against tax-related identity theft

• IR-2023-134SP:   Cumbre de seguridad: los PINs de protección de identidad son herramienta importante contra el robo de identidad relacionado con impuestos

• IR-2023-134CHI:  安全峰会：身份保护个人识别号码是防范税务相关身份盗窃的重要工具   

Hello, Tax Professionals!

Please share this email and flyers with your members, clients, staff, colleagues and anyone who may benefit from it. Feel free to share all this information on your website and social media platforms. 

Thank you in advance for sharing our information and providing feedback!

►Hot Off the Press

• IR-2023-122 : Last call for taxpayers to claim $1.5 billion in tax refunds from unfiled 2019 tax returns: July 17 deadline

• New Energy Efficient Commercial Building Deduction webpage is now available. Building owners who construct energy efficient buildings or increase the energy efficiency of existing buildings by at least 25 percent may be able to claim a tax deduction.

• Revenue Ruling 2023-02 confirms that the basis adjustment under section 1014 generally does not apply to the assets of an irrevocable grantor trust not included in the deceased grantor’s gross estate for Federal estate tax purposes 

• IR-2023-119 - National Taxpayer Advocate issues midyear report to Congress; highlights filing season challenges and focuses on strategic priorities

►Upcoming Webinars and Events

• Employee Retention Credit
  July 25, 2023 
  Time: 1:00 – 3:00 pm CT 
  Click to register: Registration

·       Check out our latest webinars here: Webinars for Tax Practitioners 

·       Check out our latest webinars here: Webinars for Small Businesses

·       You can find recently recorded webinars here: IRS Video Portal

·       Workshops and Other Events in Spanish for Small Businesses: Talleres y Otros Eventos Para Pequeños Negocios

►New Tax Tips

• Tax planning doesn’t stop after a taxpayer files a tax return English | Spanish

• Info to help gig economy workers stay on top of their tax responsibilities English | Spanish

• Tax considerations when selling a home English | Spanish

► IRS YouTube Channel

• Tax Credits for New Electric Vehicles Purchased in 2022 or Before English

• Residential Home Energy Tax Credits May Benefit You English

• Are you making extra cash selling stuff or providing a service? English

• Audits by Mail: What To Do? English

For all IRS videos and the latest content, subscribe to IRSvideos - YouTube   

► Cybersecurity and ID Theft News

• IR-2023-123 : New scam warning; unusual delivery service mailing tries to trick people into sending photos, bank account information

• IR-2023-120: Electronic Tax Administration Advisory Committee issues annual report with 26 recommendations to Congress and IRS (download the report)

► Disaster Area Declarations

For a list of disaster declarations by state, check here IRS News Around the Nation

►IRS.GOV & Additional Tax Professional Resources

• Bookmark the Tax Professionals Home: https://www.irs.gov/tax-professionals .
• Follow @IRSTaxPros for by-the-minute updates on key issues affecting tax professionals and re-tweet. 
• Share tax information, the Outreach Connection offers tax information to share. 
• Subscribe to e-News for Tax Professionals for weekly information for tax professionals.  
• Subscribe to Quick Alerts. Quick Alerts will keep you up to date on events that affect Authorized IRS e-file Providers, as well as Issuers/Payers, Transmitters and Software Developers. Quick Alerts are designed to keep Tax Professionals informed on e-file issues, AIR issues and events almost the very moment they occur… 24/7.  
• Use the Tax Pro Account. Request Power of Attorney (POA) or Tax Information Authorization (TIA) online with Tax Pro Account.

►How to Share IRS Information on Social Media

When you find an article you want to share, click on the “Share” link. Like so: 

• Scroll to the bottom of any page on IRS.gov. Look for “Share / Print” 
• Click on Share 
• You can share on Facebook, Twitter, or LinkedIn 
• Please remember to let me know when you share so we can track it!

If you have any questions about IRS policies, practices and procedures, please contact me. If you email, please don’t send any personally identifiable information.

We’re interested to know how you share this information and the feedback you receive so we can adjust and enhance our resource tools to better fit your needs. Feel free to reply with a copy of your newsletter, social media post, etc. I would also like to be added to your email distribution list.

We appreciate your partnership!

John Blakeman

Stakeholder Liaison Area 6

C&L-SL

Ph: (503) 265 - 3669

Email: John.W.Blakeman@irs.gov