IR-2019-192, December 2, 2019

WASHINGTON — The Internal Revenue Service and the Security Summit partners opened this year’s National Tax Security Awareness Week with a warning for holiday shoppers on Cyber Monday to secure their computers and mobile phones to reduce the threat of identity theft.

During the holiday season, criminals take advantage of large numbers of people shopping online to steal identities and money – as well as sensitive tax and financial data that can be used to file fraudulent tax returns when the filing season opens in early 2020.

“The holidays may mean the shopping season to consumers, but it’s the hunting season for online thieves,” said IRS Commissioner Chuck Rettig. “Identity thieves are looking for your information to help them file fraudulent tax returns. A few simple steps can help protect you and your valuable information during the holiday season and at tax time.”

The IRS, state tax agencies and the nation’s tax industry – working together as the Security Summit — mark today’s opening of fourth annual National Tax Security Awareness Week with tips on basic safeguards everyone should take, but especially for those shopping online via computer or mobile phone.

The week continues through Dec. 6 with a series of special educational efforts taking place at more than 25 partner events across the country to raise awareness about protecting taxpayers and tax professionals from identity theft. The week includes special social media efforts on platforms including Twitter and Instagram, including a special Twitter chat on @IRSnews and #TaxSecurity on Thursday.

“While you’re preparing for the holidays, thieves are preparing for the tax season, gathering up names, addresses, Social Security numbers and other bits of data that they can use to try filing a fraudulent tax return” Rettig said. “Everyone should take a few basic steps to help protect their identities, their financial accounts, their computers and their mobile phones.”

When shopping online, the IRS and Summit partners remind taxpayers to protect themselves with these tips:

• Shop at sites where the web address begins with “https” – the “s” is for secure communications over the computer network. This is an added layer of protection when sharing credit card numbers for a purchase. Keep in mind that scam sites also can use “https,” so people should ensure they are shopping at a legitimate retailer’s website.
• Don’t shop on unsecured public Wi-Fi in places like a mall. Remember, thieves can eavesdrop.
• At home, secure home Wi-Fis with a password. As homes become more connected to the web, secured systems become more important, from wireless printers, wireless door locks to wireless thermometers. These can be access points for identity thieves.
• Don’t forget to use security software for computers and mobile phones – and keep it updated. Make sure purchased anti-virus software has a feature to stop malware, and there is a firewall that can prevent intrusions.
• Protect personal information; don’t hand it out to just anyone. Phishing scams – like imposter emails, calls and texts — are the No. 1 way thieves steal personal data. Don’t open links or attachments on suspicious emails.
• Use strong and unique passwords for online accounts. Use a phrase or series of words that can be easily remembered.
• Use two-factor authentication whenever possible. Many email providers and social media sites offer this feature. It helps prevents thieves from easily hacking accounts.
• Back up files on computers and mobile phones. A cloud service or an external hard drive can be used to copy information from computers or phones – providing an important place to recover financial or tax data.

In addition, the Summit partners note these security measures include mobile phones – an area that people sometimes can overlook. Thieves have become more adept at compromising mobile phones. Phone users also are more prone to open a scam email from their phone than from their computer.

Taxpayers can check out security recommendations for their specific mobile phone by reviewing the Federal Communications Commission’s Smartphone Security Checker. Since phones are used for shopping and even for doing taxes, remember to make sure phones and tablets are just as secure as computers.

The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud.

This is the first in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details.

https://www.irs.gov/newsroom/national-tax-security-awareness-week-begins-irs-and-security-summit-partner-offer-cyber-monday-shopping-tips-to-protect-computers-mobile-phones

IR-2019-189, November 22, 2019

WASHINGTON — The Treasury Department and the Internal Revenue Service today issued final regulations confirming that individuals taking advantage of the increased gift and estate tax exclusion amounts in effect from 2018 to 2025 will not be adversely impacted after 2025 when the exclusion amount is scheduled to drop to pre-2018 levels.

Treasury Decision 9884, available today in the Federal Register, implements changes made by the Tax Cuts and Jobs Act (TCJA), the tax reform legislation enacted in December 2017. Though the final regulations largely adopt the proposed regulations published last November, they also include clarifying technical language addressing concerns raised in several public comments as well as four examples which, among other things, illustrate the impact of inflation adjustments. As a result, individuals planning to make large gifts between 2018 and 2025 can do so without concern that they will lose the tax benefit of the higher exclusion level once it decreases after 2025.

In general, gift and estate taxes are calculated, using a unified rate schedule, on taxable transfers of money, property and other assets. Any tax due is determined after applying a credit – formerly known as the unified credit – based on an applicable exclusion amount.

The applicable exclusion amount is the sum of the basic exclusion amount (BEA) established in the statute, and other elements, if applicable, described in the final regulations. The credit is first used during life to offset gift tax and any remaining credit is available to reduce or eliminate estate tax.

The TCJA temporarily increased the BEA from $5 million to $10 million for tax years 2018 through 2025, with both dollar amounts adjusted for inflation. For 2019, the inflation-adjusted BEA is $11.4 million. In 2026, the BEA will revert to the 2017 level of $5 million as adjusted for inflation.

To address concerns that an estate tax could apply to gifts exempt from gift tax by the increased BEA, the final regulations provide a special rule that allows the estate to compute its estate tax credit using the higher of the BEA applicable to gifts made during life or the BEA applicable on the date of death.

More information about this and other TCJA provisions can be found on the Tax Reform page on IRS.gov.
https://www.irs.gov/newsroom/final-regulations-confirm-making-large-gifts-now-wont-harm-estates-after-2025

IR-2019-186, November 19, 2019

WASHINGTON — The IRS today reminded tax professionals to review their e-Services account to ensure all contact information is accurate and to add or remove users. Reviewing e-Services information is just one of the tasks tax pros should complete now to get ready for 2020.

Here’s a to-do list for the rest of 2019:

Update e-Services information

E-Services offers a suite of tools to assist tax pros. These tools include the e-file application, the Transcript Delivery System (TDS) and a secure mailbox. New e-Services users must first register and verify their identities using Secure Access authentication.

Principals, principal consents or authorized responsible officials/delegated users must update the e-file application to ensure that all contact information is accurate. Individuals no longer associated with the firm must be removed from the application.

New delegated users must be added to the e-file application. Firms that will need to use the e-Services TDS should ensure the appropriate people are approved on the application to avoid any delays in accessing client transcripts.

Firms opening new offices where electronic transmissions will occur also must submit new e-file applications. E-file providers should review Publication 3112, IRS e-file Application and Participation (PDF), to determine additional actions they should take.

The IRS reminds tax pros that the Electronic Filing Identification Number (EFIN) is not transferrable and cannot be sold, rented, leased, or provided with software purchased. It can only be obtained from the IRS. Providers who sell, transfer or close their business operations must notify the IRS within 30 days.

Renew PTINs

Anyone who prepares or helps prepare tax returns for compensation must have a Preparer Tax Identification Number (PTIN) and renew it each year. Tax preparers have until Dec. 31, 2019, to renew or register for PTINs for the 2020 filing season. Anyone who is an enrolled agent must also have a PTIN and renew it annually.

Update power of attorney/third-party authorization records

Tax pros who have existing power of attorney or third-party authorization (Forms 2848 and 8821) for clients should review those records. If the taxpayer is no longer a client, tax professionals should submit revocations to end the authorization. They can follow the revocation instructions outlined in Publication 947, Practice Before the IRS and Power of Attorney (PDF). This will help safeguard taxpayer records.

Review security safeguards

All paid tax preparers, regardless of firm size, must have written information security plans as required by the Federal Trade Commission. IRS Publication 4557, Safeguarding Taxpayer Data (PDF), offers an overview of basic security measures and information about the FTC’s Safeguards Rule.

Now also is a good time for tax professionals to hire a cybersecurity expert to review office digital safeguards. At a minimum, tax pros should perform a “deep scan” for viruses on all digital devices. Other security tips are available at Taxes-Security-Together Checklist. Tax pros should protect both their PTIN and EFIN from theft.

Review Practitioner Priority Service options

The Practitioner Priority Service (PPS) is any tax pro’s first point of contact for account-related issues. Before calling, they should be sure to review the PPS page. Faster solutions are often available on IRS.gov. The quickest way to obtain a client’s transcripts is by using IRS e-Services and the Transcript Delivery System. After registering for e-Services, tax pros can receive account transcripts, wage and income documents, tax return transcripts, and verification of non-filing letters online.

Tax pros must verify their identity before PPS representatives can provide help. This process includes providing their Social Security number and date of birth. If a tax pro has a client in the room, they should consider having them step out or, alternatively, ask the client to make an oral disclosure authorization or oral tax information authorization to the IRS representative.

Identify the local Stakeholder Liaison

The IRS has specialists nationwide who can help tax pros who suffer a security breach that effects their clients. When a data theft occurs, contact the local IRS Stakeholder Liaison immediately.

Register for e-News for Tax Professionals and subscribe for quick alerts

The IRS offers multiple registration-based list-services to assist tax professionals. For a weekly roundup of news releases and guidance, register for e-News for Tax Professionals or other IRS subscriptions. There also are social media platforms just for tax professionals. Subscribe for quick alerts to keep up to date on events that affect authorized IRS e-file providers, transmitters and software developers. https://www.irs.gov/newsroom/irs-reminds-tax-professionals-of-tasks-to-get-ready-for-2020

IRS announces new dates, social media effort and partner toolkit to highlight identity theft precautions

IR-2019-185, November 18, 2019

WASHINGTON —The Internal Revenue Service, state tax agencies and the nation’s tax industry today announced that the 4^th Annual National Tax Security Awareness Week will take place between December 2 and December 6.

Security Summit partners will once again urge taxpayers, businesses and tax professionals to enhance their online security as the holiday shopping season kicks off and identity thieves step up their efforts to steal personal and financial data.

“While people are shopping online, identity thieves are trying to shoplift their sensitive information. As the holiday season and tax season approach, everyone should remember to take basic steps to protect themselves,” said Chuck Rettig, IRS Commissioner. “The Security Summit has made progress in fighting back against tax-related identity theft, but we need people to watch out for common scams that can put their financial and tax data at risk.”

Tax Security Awareness Week will feature a week-long series of educational materials to help protect taxpayers and tax pros against identity theft. The effort will include a special social media effort on Twitter and Instagram with @IRSnews and #TaxSecurity, including a Twitter chat on December 5. Summit partners plan a series of more than 25 events across the country in conjunction with Tax Security Awareness Week.

Also new is a special partner toolkit that features ready-to-use communication products that organizations and stakeholders can use to help raise awareness among clients, customers and employees. The toolkit offers information to share, including drop-in articles and email content for sharing and social media posts. It can be used both during the awareness week and during the 2020 filing season.

As part of the effort, the IRS and Summit partners created new YouTube videos on security steps for taxpayers. The videos can be viewed or downloaded at Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

The IRS also updated Publication 4524, Security Awareness for Taxpayers (PDF), which businesses can share with their employees and customers while tax professionals can share with clients.

December’s National Tax Security Awareness Week features five days of basic security guidance for those most at-risk: individual taxpayers, business taxpayers and tax professionals. Highlights include:

Day 1: Protect personal and financial information online

The IRS and Security Summit remind people to take these basic steps:

• Use security software for computers and mobile phones – and keep it updated.
• Protect personal information; don’t hand it out to just anyone.
• Use strong and unique passwords for all accounts.
• Use two-factor authentication whenever possible.
• Shop only secure websites; Look for the “https” in web addresses; avoid shopping on unsecured and public wi-fi in places like shopping malls.
• Routinely back up files on computers and mobile phones.

Day 2: Learn to recognize phishing emails and phone scams

Know that email scams often:

• Pose as companies people know and trust, and
• Tell an urgent story to trick victims into opening link or attachment.

Watch out for scam phone calls, too. Remember:

• The IRS does not call demanding payment with threats of jail or lawsuit.
• The IRS does not demand payment via gift or debit cards. The IRS does not accept tax payments by iTunes cards.
• The IRS does not send unsolicited emails about refunds or payments, requesting either login credentials, Social Security numbers or other sensitive information.

Day 3 – Create strong passwords to protect online accounts

The password standards have changed. Here are some simple guidelines:

• Use long phrases combined with characters and numbers. For example: SomethingOneCanRemember@30.
• Use a different password for each account; don’t use an email address if that’s an option and use a password manager.
• Use two-factor authentication whenever it’s offered, for example on email accounts, financial accounts and social media accounts.

Day 4 – Recognize clues of identity theft

A business taxpayer may be an identity theft victim if:

• An e-filed return is rejected because a duplicate is already on file with the IRS.
• Routine extensions to file requests are rejected.
• An unexpected receipt of a tax transcript or an IRS notice is received.
• Failure to receive expected and routine correspondence from the IRS, which can be an indicator an identity thief has changed the address.

Day 5 – Tax professionals should review their safeguards

The IRS and the Summit partners urge tax pros to review the Taxes-Security-Together Checklist, including:

• Deploy basic security measures.
• Create a written data security plan as required by law.
• Know about phishing and phone scams.
• Recognize the signs of client data theft.
• Create a data theft recovery plan.

https://www.irs.gov/newsroom/security-summit-marks-4th-national-tax-security-awareness-week

IR-2019-183, November 14, 2019

WASHINGTON — The Internal Revenue Service today issued guidance for taxpayers with certain deductible expenses to reflect changes resulting from the Tax Cuts and Jobs Act (TCJA).

Revenue Procedure 2019-46 (PDF), posted today on IRS.gov, updates the rules for using the optional standard mileage rates in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

The guidance also provides rules to substantiate the amount of an employee’s ordinary and necessary travel expenses reimbursed by an employer using the optional standard mileage rates. Taxpayers are not required to use a method described in this revenue procedure and may instead substantiate actual allowable expenses provided they maintain adequate records.

The TCJA suspended the miscellaneous itemized deduction for most employees with unreimbursed business expenses, including the costs of operating an automobile for business purposes. However, self-employed individuals and certain employees, such as Armed Forces reservists, qualifying state or local government officials, educators and performing artists, may continue to deduct unreimbursed business expenses during the suspension.

The TCJA also suspended the deduction for moving expenses. However, this suspension does not apply to a member of the Armed Forces on active duty who moves pursuant to a military order and incident to a permanent change of station.  https://www.irs.gov/newsroom/irs-updates-guidance-for-deductible-business-charitable-medical-and-moving-expenses

IR-2019-179, November 6, 2019

WASHINGTON — The Internal Revenue Service today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year.

The IRS announced this and other changes in Notice 2019-59 (PDF), posted today on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.

Highlights of changes for 2020

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.

The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.

The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2020.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor his or her spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2020:

• For single taxpayers covered by a workplace retirement plan, the phase-out range is $65,000 to $75,000, up from $64,000 to $74,000.
• For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $104,000 to $124,000, up from $103,000 to $123,000.
• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $196,000 and $206,000, up from $193,000 and $203,000.
• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.The income phase-out range for taxpayers making contributions to a Roth IRA is $124,000 to $139,000 for singles and heads of household, up from $122,000 to $137,000. For married couples filing jointly, the income phase-out range is $196,000 to $206,000, up from $193,000 to $203,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $65,000 for married couples filing jointly, up from $64,000; $48,750 for heads of household, up from $48,000; and $32,500 for singles and married individuals filing separately, up from $32,000.

Key limit remains unchanged

The limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

Details on these and other retirement-related cost-of-living adjustments for 2020 are in Notice 2019-59 (PDF), available on IRS.gov.   https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500

Here you’ll find items of current interest — new programs, recent guidance or timely reminders.

October 15 filing extension deadline

Taxpayers who requested an extension to file their 2018 tax return have until Tuesday, October 15 to file.
Taxpayers can file their tax return electronically for free through IRS Free File. The program is available on IRS.gov through Oct. 15.

The fastest way for taxpayers to get their refund is to file electronically and use direct deposit.

See IRS Tax Tip 2019-132.

Tax Relief in Disaster Situations

The IRS extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Florence. The federally declared disaster areas include hurricane victims in certain counties in North Carolina and South Carolina. The extension applies to deadlines – either an original or extended due date – that occurred on or after September 7, 2018 and before January 31, 2019.

The IRS often updates its information on disaster relief efforts. For the latest news, see the IRS disaster relief page frequently.

Where’s My Refund?

Taxpayers who filed their tax returns should know that the easiest way to check on their tax refund is to use “Where’s My Refund?” This tool is available on IRS.gov and through the IRS2Go app. The fastest way to get that tax refund is to use IRS e-file and direct deposit.

Taxpayers can use Where’s My Refund? to start checking on the status of their tax return within 24 hours after the IRS receives an e-filed return. For a paper return, it’s four weeks after the taxpayer mailed it.

See:  Online tool lets taxpayers check the status of their refund for more information.

Tax Reform

The IRS is working on implementing the Tax Cuts and Jobs Act. This new law includes major tax legislation that will affect both individuals and businesses. Check the Tax Reform page for the latest updates.

Tax Withholding

The Tax Cuts and Jobs Act changed the way tax is calculated. The IRS encourages taxpayers to perform a quick “paycheck checkup” by using the Withholding Estimator to check if they have the right amount of withholding for their personal situation.

Consumer Alerts on Tax Scams

‪Note that the IRS will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
• Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
• Ask for credit or debit card numbers over the phone.

For more information on tax scams, please see Tax Scams/Consumer Alerts. For more information on phishing scams, please see Suspicious emails and Identity Theft.

Is it Really the IRS Calling?

The IRS wants you to understand how and when we contact taxpayers and help you determine whether a contact you may have received is truly from an IRS employee.

The IRS initiates most contacts through regular mail delivered by the United States Postal Service.

However, there are special circumstances in which the IRS will call or come to a home or business, such as when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or during criminal investigations.

See Avoid scams: Know the facts on how the IRS contacts taxpayers for more information.

Private Debt Collection

The IRS began a new private collection program of certain overdue federal tax debts selecting four contractors to implement it. The groups are: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent the IRS.

The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). The IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency (PDF).

Foreign Account Tax Compliance Act (FATCA)

FATCA refers to the Foreign Account Tax Compliance Act that requires reporting on specified foreign accounts by U.S. taxpayers and foreign financial institutions. In general, federal law requires U.S. citizens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. https://www.irs.gov/newsroom/whats-hot

IR-2019-178, October 31, 2019

WASHINGTON – The Internal Revenue Service today urged taxpayers to act now to avoid a tax-time surprise and ensure smooth processing of their 2019 federal tax return.

This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. To that end, a special page, newly updated and available on IRS.gov, outlines things taxpayers can do now to prepare for the 2020 tax season ahead.

Adjust withholding; Make estimated or additional tax payments

The IRS urges everyone to use the Tax Withholding Estimator to perform a paycheck or pension income checkup. This is even more important for those who received a smaller refund than expected or owed an unexpected tax bill last year.

It’s also a good idea for anyone who had a key life event, such as getting married, getting divorced, having or adopting a child, retiring, buying a home or starting college.

If the Tax Withholding Estimator recommends a change, an employee can then submit a new Form W-4, Employee’s Withholding Allowance Certificate, to their employer. Don’t send this form to the IRS.

Similarly, recipients of pension or annuity income can use the results from the estimator to complete a Form W-4P, Withholding Certificate for Pension or Annuity Payments, and give it to their payer.

Taxpayers who receive a substantial amount of non-wage income should make quarterly estimated tax payments. This can include self-employment income, investment income (including gain from the sale, exchange or other disposition of virtual currency), taxable Social Security benefits and in some instances, pension and annuity income. Making estimated tax payments can also help a wage-earner cover an unexpected withholding shortfall.

Estimated tax payments are due quarterly, with the last payment for 2019 due on Jan. 15, 2020. Form 1040-ES, Estimated Tax for Individuals, has a worksheet to help figure these payments. Payment options can be found at IRS.gov/payments.

Workers and retirees who receive self-employment income or income from the gig economy, including payments in the form of virtual currency, should make sure to take these amounts into account when they fill out the Tax Withholding Estimator. Payments received in virtual currency by independent contractors and other service providers are taxable, and self-employment tax rules generally apply. Normally, payers must issue Form 1099-MISC. Similarly, wages paid using virtual currency are taxable to the employee, subject to withholding, and must be reported by the employer on a Form W-2.

People with more complex tax situations should use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes those who owe alternative minimum tax or various other taxes, and people with long-term capital gains or qualified dividends.

Gather documents and organize tax records

The IRS urges all taxpayers to develop a recordkeeping system − electronic or paper − that keeps important information in one place. Keep copies of filed tax returns and all supporting documents for at least three years. This includes year-end Forms W-2 from employers, Forms 1099 from banks and other payers, other income documents, records documenting all virtual currency transactions, and Forms 1095-A for those claiming the Premium Tax Credit. Add tax records to the files as they are received. Having complete and timely records can help any taxpayer file a complete and accurate return.

Taxpayers should confirm that each employer, bank or other payer has a current mailing address or email address. Typically, year-end forms start arriving by mail – or are available online – in January. Review them carefully and, if any of the information shown is inaccurate, contact the payer right away for a correction.

To avoid refund delays, be sure to gather all year-end income documents before filing a 2019 return. Filing too early, before receiving a key document, often means a taxpayer must file an amended return to report additional income or claim a refund. It can take up to 16 weeks to get an amended return refund.

Anyone using a software product for the first time may need the Adjusted Gross Income (AGI) amount shown on Line 7 of their 2018 return to file their 2019 return electronically. Consult the taxpayer’s copy of last year’s return, or alternatively, visit the View Your Tax Account link on IRS.gov. Learn more about verifying identity and electronically signing a return at Validating Your Electronically Filed Tax Return.

Notify the IRS of address changes and notify the Social Security Administration of a legal name change to avoid refund delays.

Renew expiring tax ID numbers

Taxpayers with expiring Individual Taxpayer Identification Numbers can get their ITINs renewed more quickly and avoid refund delays next year by submitting their renewal application soon.

An ITIN is a tax ID number used by any taxpayer who doesn’t qualify to get a Social Security number. Any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of this year. In addition, any ITIN not used on a tax return in the past three years will expire. ITINs with middle digits 70 through 82 that expired in 2016, 2017 or 2018 can also be renewed.

The IRS urges anyone affected to file a complete renewal application, Form W-7, Application for IRS Individual Taxpayer Identification Number, as soon as possible. Be sure to include all required ID and residency documents. Failure to do so will delay processing until the IRS receives these documents.

Once a completed form is filed, it typically takes about seven weeks to receive an ITIN assignment letter from the IRS. But it can take longer — nine to 11 weeks — if an applicant waits until the peak of the filing season to submit this form or sends it from overseas.

Taxpayers who fail to renew an ITIN before filing a tax return next year could face a delayed refund and may be ineligible for certain tax credits. With nearly 2 million taxpayer households impacted, applying now will help avoid the rush as well as refund and processing delays in 2020. For more information, visit the ITIN information page on IRS.gov.

Be prepared to file electronically; Use Direct Deposit for refunds

Filing electronically is easy, safe and the most accurate way to file taxes. There are a variety of free electronic filing options for most taxpayers including using IRS Free File for taxpayers with income below $66,000, or Fillable Forms for taxpayers who earn more. Taxpayers who generally earn $56,000 or less can have their return prepared at a Volunteer Income Tax Assistance site. Tax Counseling for the Elderly sites offer free tax help for all taxpayers, particularly those who are 60 years of age and older.

Combining Direct Deposit with electronic filing is the fastest way to get a refund. With Direct Deposit, a refund goes directly into the taxpayer’s bank account. No need to worry about a lost, stolen or undeliverable refund check. This is the same electronic transfer system used to deposit nearly 98% of all Social Security and Veterans Affairs benefits. Nearly four out of five federal tax refunds are deposited directly.

Direct Deposit is easy to use. Taxpayers select it as their refund method through tax software or let their tax preparer know they want direct deposit. Taxpayers can even choose Direct Deposit on a paper return. Be sure to have bank account and routing numbers handy and double check entries to avoid errors.

Direct Deposit also saves taxpayer dollars. It costs the nation’s taxpayers more than $1 for every paper refund check issued but only a dime for each Direct Deposit.

By law, the IRS cannot issue refunds for people claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law requires the IRS to hold the entire refund − even the portion not associated with EITC or ACTC. This law change, which took effect in 2017, helps ensure that taxpayers receive the refund they’re due by giving the IRS more time to detect and prevent fraud.

The IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer. For example, the IRS, along with its partners in the tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud.

Start with IRS.gov for help that includes tools, filing options and other services and resources. Taxpayers increasingly use IRS.gov as their first resource for tax matters. Information in languages other than English is available under the “Language” tab on IRS.gov.

The Let Us Help You page on IRS.gov features links to information and resources on a wide range of topics.   https://www.irs.gov/newsroom/get-ready-for-taxes-get-ready-today-to-file-2019-federal-income-tax-returns

Bill Text

IR-2019-177, October 25, 2019

WASHINGTON –The Internal Revenue Service today issued final regulations on the new information reporting requirements for certain life insurance contract transactions.

The requirement was authorized under new section 6050Y, added to the Internal Revenue Code by the Tax Cuts and Jobs Act (TCJA), the tax reform legislation enacted in December 2017. The final regulations generally apply to reportable policy sales and payments of death benefits occurring after Dec. 31, 2018. The final regulations provide taxpayers additional time to satisfy any reporting obligations for reportable policy sales or death benefit payments made prior to publication of final regulations.

Among other things, these reporting requirements are designed to help people who sell life insurance contracts properly report any gain from that sale.

Every person who acquires a life insurance contract, or any interest in a contract, in a reportable policy sale during the tax year must file a return with the IRS. The acquirer must also furnish written statements to each payment recipient and the issuer named in the return. The issuer, upon receiving such a statement, must file a return with the IRS and furnish a written statement to the seller. For further details, see Form 1099-LS, Form 1099-SB, and their instructions, available on IRS.gov.

The final regulations also provide guidance on new reporting requirements applicable to each person who makes a payment of reportable death benefits (reportable on Form 1099-R) and how to calculate the amount of death benefits excluded from gross income. The final regulations also include definitions relevant to reportable policy sales and exceptions.

For information about other TCJA provisions, visit IRS.gov/tax-reform.

https://www.irs.gov/newsroom/irs-treasury-issue-final-regulations-on-new-reporting-requirements-for-life-insurance-contract-transactions