NEWS from NSA

  • GASB Proposes Tax Abatement Disclosures by State and Local Governments

    Monday, November 17, 2014 10:37 AM | NCSA Website Manager (Administrator)
    State and local governments would have to disclose information about property and other tax abatement agreements for the first time under a proposal issued by the Governmental Accounting Standards Board.
     
    Governments carve out tax abatement packages for companies, businesses and other taxpayers to boost "economic development, job growth, redevelopment of blighted or underdeveloped areas, and other actions that are beneficial to the government or its citizens," GASB said in a news release. However, "little information is publicly available regarding the provisions of tax abatement agreements or the magnitude of the effect those agreements will have on the ability to raise resources in the future," GASB said in an exposure draft issued Oct. 31.
     
    According to the draft standard, the disclosures proposed by GASB would include:
    ·?general descriptive information, such as the tax being abated, eligibility criteria for granting of the abatement and provisions for recapturing abated taxes;
    ·?the number of abatement agreements;
    ·?the dollar amount of taxes abated; and
    ·?other commitments made by a government as part of the abatement accord, such as to build infrastructure assets.
     
    Comments on the proposal should be submitted by Jan. 30, 2015, GASB said.  The news release and exposure draft are available here.


  • IRS May Delay Filing Season If Extenders Legislation Not Finalized Soon

    Monday, November 17, 2014 10:35 AM | NCSA Website Manager (Administrator)

    If the congressional logjam over dozens of expired tax breaks continues far into the lame-duck session, the IRS may delay the 2015 tax filing season, Commissioner John Koskinen said in a speech delivered on October 30 at a meeting of the Council for Electronic Revenue Communication Advancement. 

    Koskinen went on to say that continued legislative inaction on extenders would complicate an already challenging filing season for the Internal Revenue Service. "If this uncertainty persists into December, we could be forced to postpone the 2015 filing season," Koskinen said. "This would delay the start of processing of tax refunds for millions of taxpayers."

    Koskinen said that major changes to tax extenders language or new provisions would mean the IRS would have to reprogram its systems and make processing changes, which could also result in a filing season delay.

    Lawmakers are reportedly exploring a post-election deal that would extend some tax breaks for businesses and middle- and low-income families, but negotiations are in early stages.

    As NSA members are well aware, the IRS has delayed the start of filing seasons in the past because of legislative inaction, the most recent being the two-week delay of the 2014 filing season following a government shutdown that ended in October 2013.


    If the congressional logjam over dozens of expired tax breaks continues far into the lame-duck session, the IRS may delay the 2015 tax filing season, Commissioner John Koskinen said in a speech delivered on October 30 at a meeting of the Council for Electronic Revenue Communication Advancement. 
     
    Koskinen went on to say that continued legislative inaction on extenders would complicate an already challenging filing season for the Internal Revenue Service. "If this uncertainty persists into December, we could be forced to postpone the 2015 filing season," Koskinen said. "This would delay the start of processing of tax refunds for millions of taxpayers."
     
    Koskinen said that major changes to tax extenders language or new provisions would mean the IRS would have to reprogram its systems and make processing changes, which could also result in a filing season delay.
     
    Lawmakers are reportedly exploring a post-election deal that would extend some tax breaks for businesses and middle- and low-income families, but negotiations are in early stages.
     
    As NSA members are well aware, the IRS has delayed the start of filing seasons in the past because of legislative inaction, the most recent being the two-week delay of the 2014 filing season following a government shutdown that ended in October 2013.
    If the congressional logjam over dozens of expired tax breaks continues far into the lame-duck session, the IRS may delay the 2015 tax filing season, Commissioner John Koskinen said in a speech delivered on October 30 at a meeting of the Council for Electronic Revenue Communication Advancement. 
     
    Koskinen went on to say that continued legislative inaction on extenders would complicate an already challenging filing season for the Internal Revenue Service. "If this uncertainty persists into December, we could be forced to postpone the 2015 filing season," Koskinen said. "This would delay the start of processing of tax refunds for millions of taxpayers."
     
    Koskinen said that major changes to tax extenders language or new provisions would mean the IRS would have to reprogram its systems and make processing changes, which could also result in a filing season delay.
     
    Lawmakers are reportedly exploring a post-election deal that would extend some tax breaks for businesses and middle- and low-income families, but negotiations are in early stages.
     
    As NSA members are well aware, the IRS has delayed the start of filing seasons in the past because of legislative inaction, the most recent being the two-week delay of the 2014 filing season following a government shutdown that ended in October 2013.
    If the congressional logjam over dozens of expired tax breaks continues far into the lame-duck session, the IRS may delay the 2015 tax filing season, Commissioner John Koskinen said in a speech delivered on October 30 at a meeting of the Council for Electronic Revenue Communication Advancement. 
     
    Koskinen went on to say that continued legislative inaction on extenders would complicate an already challenging filing season for the Internal Revenue Service. "If this uncertainty persists into December, we could be forced to postpone the 2015 filing season," Koskinen said. "This would delay the start of processing of tax refunds for millions of taxpayers."
     
    Koskinen said that major changes to tax extenders language or new provisions would mean the IRS would have to reprogram its systems and make processing changes, which could also result in a filing season delay.
     
    Lawmakers are reportedly exploring a post-election deal that would extend some tax breaks for businesses and middle- and low-income families, but negotiations are in early stages.
     
    As NSA members are well aware, the IRS has delayed the start of filing seasons in the past because of legislative inaction, the most recent being the two-week delay of the 2014 filing season following a government shutdown that ended in October 2013.
    If the congressional logjam over dozens of expired tax breaks continues far into the lame-duck session, the IRS may delay the 2015 tax filing season, Commissioner John Koskinen said in a speech delivered on October 30 at a meeting of the Council for Electronic Revenue Communication Advancement. 
     
    Koskinen went on to say that continued legislative inaction on extenders would complicate an already challenging filing season for the Internal Revenue Service. "If this uncertainty persists into December, we could be forced to postpone the 2015 filing season," Koskinen said. "This would delay the start of processing of tax refunds for millions of taxpayers."
     
    Koskinen said that major changes to tax extenders language or new provisions would mean the IRS would have to reprogram its systems and make processing changes, which could also result in a filing season delay.
     
    Lawmakers are reportedly exploring a post-election deal that would extend some tax breaks for businesses and middle- and low-income families, but negotiations are in early stages.
     
    As NSA members are well aware, the IRS has delayed the start of filing seasons in the past because of legislative inaction, the most recent being the two-week delay of the 2014 filing season following a government shutdown that ended in October 2013.
    If the congressional logjam over dozens of expired tax breaks continues far into the lame-duck session, the IRS may delay the 2015 tax filing season, Commissioner John Koskinen said in a speech delivered on October 30 at a meeting of the Council for Electronic Revenue Communication Advancement. 
     
    Koskinen went on to say that continued legislative inaction on extenders would complicate an already challenging filing season for the Internal Revenue Service. "If this uncertainty persists into December, we could be forced to postpone the 2015 filing season," Koskinen said. "This would delay the start of processing of tax refunds for millions of taxpayers."
     
    Koskinen said that major changes to tax extenders language or new provisions would mean the IRS would have to reprogram its systems and make processing changes, which could also result in a filing season delay.
     
    Lawmakers are reportedly exploring a post-election deal that would extend some tax breaks for businesses and middle- and low-income families, but negotiations are in early stages.
     
    As NSA members are well aware, the IRS has delayed the start of filing seasons in the past because of legislative inaction, the most recent being the two-week delay of the 2014 filing season following a government shutdown that ended in October 2013.

  • Let's Work Together.....Not

    Monday, November 17, 2014 10:34 AM | NCSA Website Manager (Administrator)

    Immediately after the election results were finalized on Tuesday, President Obama, House Speaker Boehner and presumptive Senate Majority Leader Mitch McConnell all publically expressed their willingness to work together in the next two years for the good of the country.
     
    So much for that.


    In a wide-ranging interview with reporters on Thursday, November 6, Speaker Boehner provided some detail on what he had in mind with respect to working with the White House. "Finding common ground is going to be hard work, but it will be even harder if the president isn't willing to work with us," Boehner told reporters gathered for an afternoon news conference on Capitol Hill. "I've told the president before, he needs to put politics aside and rebuild trust."
     
    Boehner then proceed to demonstrate he is incapable of following his own advice, since he then focused much of his attention on his desire to replace and reform key components of the Affordable Care Act, stating with confidence that such measures could pass the House of Representatives during the upcoming session. Well, duh. As NSAlert readers are aware, the House has voted on and passed various ACA repeal measures more than forty times during the current session, so passing more of the same in the next session would not seem to involve much heavy lifting. Doing so would also not seem to be in the spirit of "putting politics aside" or "rebuilding trust," since the President would veto such efforts and, in any event, such measures would never pass the Senate, even with Republicans in the majority. Such actions would, however, be in the spirit of politics as usual, which voters last Tuesday seem to have rejected. 


  • Nearly Hour-Long Wait Expected in 2015 for Practitioners Calling IRS Help Line

    Monday, November 17, 2014 10:32 AM | NCSA Website Manager (Administrator)
    It will take tax practitioners an average of 52 minutes to get through to the IRS on its dedicated telephone line in 2015, IRS National Taxpayer Advocate Nina Olson said in a speech on November 4. Olson also it will take the taxpaying public 34 minutes to get questions about Form 1040 answered.
     
    Olson blamed the wait times on staffing shortfalls due to budget constraints and continuing reductions in IRS budgets over the last four years.


  • Do State Licensing Boards Restrain Trade Contrary To Antitrust Law? What About State Boards of Accountancy?

    Monday, November 17, 2014 10:27 AM | NCSA Website Manager (Administrator)

    Both CPAs and non-licensed accountants should keep an eye on a Supreme Court case involving teeth whitening. Why?  Because the outcome may have a major impact on state boards of accountancy and whether they can decide whether, and to what extent, an individual may refer to themselves as an accountant.

    The case is North Carolina Board of Dental Examiners v. Federal Trade Commission. Oral argument before the U.S. Supreme Court was held on October 14 on appeal from a decision of the 4th Circuit Court of Appeals finding for the FTC. 

    According to the FTC, dentists complained to the board that non-dentists offered teeth whitening services. It should come as no surprise that non-dentists (e.g., kiosks in shopping malls) charge less than dentists for teeth whitening. The board responded by ordering the non-dentists to stop whitening teeth. The FTC found that the board's actions violated the Sherman Antitrust Act because they constituted a "combination" or "conspiracy, in restraint of trade."

    Specifically, the FTC found that the board tried to exclude non-dentists from the market for teeth whitening services, and the dentists who sat on the board stood to gain from excluding competitors from that market. If in the preceding sentence one were to substitute "non-CPAs" for non-dentists and "accounting services" for teeth whitening services and then substitute "CPAs who sat on the board" for dentists who sat on the board, the sentence would read as follows, "the board tried to exclude non-CPAs from the market for accounting services, and the CPAs who sat on the board stood to gain from excluding competitors from that market. One could as easily rewrite the sentence to apply to licensing boards for lawyers, engineers, doctors, beauticians, floral designers, and, yes, fortune tellers. It is easy to see the case involves any state licensing board where a majority of the board members belong to the class of individuals whom the board regulates.

    In an analysis of the issues written by Eric M. Fraser for a Supreme Court blog (available here), Fraser wrote that "the central question is whether a state may create a licensing board and set it loose, as North Carolina did, or if instead it must actively supervise the board's actions," especially if, as in this case, "the state licensing regimes have the effects of excluding competitors, raising barriers to entry, reducing supply, and raising prices."
     
    Fraser attended the oral argument and writes that the Justices seemed "wary of allowing a state to bestow immunity from federal antitrust laws on a group of professionals regulating themselves without supervision from the state," but that "after an hour of argument, however, the precise boundaries of immunity for state agencies remained far from clear." Fraser concludes that, in the end, the Supreme Court will likely side with the FTC against the dentist board, but that the scope of the ruling is unclear.

    NSA will watch for the ruling in this case, expected next year, to see where the Supreme Court draws the line for state supervision and what impact, if any, the decision may have on the operations, rules, and regulations of state boards of accountancy in the future.

  • Koskinen to Congress: Act Soon on Extenders or Risk Tax Season Delay

    Monday, October 13, 2014 9:31 PM | NCSA Website Manager (Administrator)
    Congress needs to act on tax extenders as soon as it returns for the lame-duck session in November to avoid delays in the 2015 tax season, IRS Commissioner John Koskinen wrote in a letter to Sen. Ron Wyden, chair of the Senate Finance Committee.
     
    "This uncertainty, if it persists into December or later, could force the IRS to postpone the opening of the 2015 filing season or delay the processing of tax refunds for millions of taxpayers," Koskinen said in the October 6 letter. Koskinen said extenders legislation that arrives too close to the beginning of the 2015 filing season or contains numerous tax code changes could delay the agency's timeline on processing returns.
     
    The letter was sent in anticipation of an upcoming lame-duck session beginning in November. Sen. Wyden has said that addressing extenders is his top priority in the session, though House and Senate remain at odds over the particulars of the issue. Republican lawmakers, including House Budget Committee Chairman Paul Ryan (R-Wis.), have gone on record saying that November's congressional elections will determine the nature of the lame-duck negotiations on extenders. The House has already voted to make several extenders permanent, including research and development tax credits as well as bonus depreciation. Wyden, however, stands firm on his plan for a two-year extension in hopes of resolving the issue permanently in a broader tax code rewrite.


  • IRS Letters to EITC Claim Preparers Warn of Possible Audits

    Monday, October 13, 2014 9:20 PM | NCSA Website Manager (Administrator)
    Tax preparers who previously filed questionable earned income tax credit claims will begin getting warning letters from the IRS this month. 
     
    The EITC warning letters, announced in the Internal Revenue Service's Oct. 2 QuickAlerts for tax professionals, discuss the primary issues identified on the returns and the consequences of filing inaccurate claims for EITC.  The letters will remind tax preparers of their due diligence requirements. Preparers who do not meet the requirements face a penalty of $500 per return.  
     
    The letters also advise preparers the IRS will monitor the EITC claims they complete, that the IRS will be visiting them and, in some instances, auditing their clients' returns for either tax years 2013 or 2014, or both. Letter 5138, Return Preparer EITC Client Audit Notification, will be included with the warning letters. The letters will continue to be sent through December, the IRS said.
     
    The IRS is sending the letters because it estimates that 22 to 26 percent of all EITC claims have some type of mistake that cost the government between $13.3 and $15.6 billion in 2013. "Some errors are caused by misinterpreting the law; some because the preparer accepted client-provided information at face value and others are outright fraud," the agency said.  "You, as part of the tax preparation community, are crucial in stemming these errors because paid preparers create the majority of EITC claims."
     
    The three most common EITC errors involve claiming a child who isn't a qualifying child, married taxpayers who incorrectly file as single or head of household, and income-reporting errors, which account for more than 60 percent of erroneous claims.
     
    The IRS's EITC information page for tax professionals is here.


  • IRS Adds More Security to Registration, Sign-On for Tax Professional E-Services

    Monday, October 13, 2014 9:10 PM | NCSA Website Manager (Administrator)

    Tax professionals and taxpayers will be faced with extra layers of security when they register for the IRS's e-services program and sign into their accounts, the agency announced in an electronic alert issued on October 1.

    Among the changes is the addition of a series of challenge questions to allow users to unlock their own accounts. The IRS said new users will be presented with the questions when they register. Existing users will be presented with the questions the first time they log on.

    The IRS said it implemented the security changes on September 28, but said the challenge questions will not be available for taxpayers who forget their passwords until sometime in November.

    According to the alert, users will no longer get a 15-minute time-out after three unsuccessful login attempts, as they will be able to unlock their account by answering the challenge questions. If the users can't correctly answer the questions, their account will be locked and they will have to use the Forgotten or Lost Password or PIN function to unlock it, the IRS said.  In addition, users will not be allowed to enter their Social Security number as part of their user name or password, the IRS said. Passwords will have to contain at least one number, one uppercase and one lowercase letter, and one special character. The IRS said if a user's password doesn't meet the new requirements, the system will force the user to update the password the next time they log in.

    Passwords will also expire after a prescribed period of time. Users won't be able to reuse the last 24 passwords, the IRS said, adding it will send e-mail notifications 30 days and again 20 days before a password expires. The agency still plans to use the 10-day e-mail notification it currently sends out.

    The IRS said it also is making changes to the registration screen. The agency said it will: 

    • remove the word "expired,"
    • change Taxpayer Identification Number (TIN) to Social Security number and Individual Taxpayer Identification Number (SSN/ITIN),
    • update the user name rules,
    • update help screens for password and user name,
    • add a password link, and
    • allow only 5 digits for the PIN.

    Details of the security changes to e-services registration can be found here.


    IRS Adds More Security to Registration, Sign-On for Tax Professional E-Services

    Tax professionals and taxpayers will be faced with extra layers of security when they register for the IRS's e-services program and sign into their accounts, the agency announced in an electronic alert issued on October 1.

    Among the changes is the addition of a series of challenge questions to allow users to unlock their own accounts. The IRS said new users will be presented with the questions when they register. Existing users will be presented with the questions the first time they log on.

    The IRS said it implemented the security changes on September 28, but said the challenge questions will not be available for taxpayers who forget their passwords until sometime in November.

    According to the alert, users will no longer get a 15-minute time-out after three unsuccessful login attempts, as they will be able to unlock their account by answering the challenge questions. If the users can't correctly answer the questions, their account will be locked and they will have to use the Forgotten or Lost Password or PIN function to unlock it, the IRS said.  In addition, users will not be allowed to enter their Social Security number as part of their user name or password, the IRS said. Passwords will have to contain at least one number, one uppercase and one lowercase letter, and one special character. The IRS said if a user's password doesn't meet the new requirements, the system will force the user to update the password the next time they log in.

    Passwords will also expire after a prescribed period of time. Users won't be able to reuse the last 24 passwords, the IRS said, adding it will send e-mail notifications 30 days and again 20 days before a password expires. The agency still plans to use the 10-day e-mail notification it currently sends out.

    The IRS said it also is making changes to the registration screen. The agency said it will:

    • remove the word "expired,"
    • change Taxpayer Identification Number (TIN) to Social Security number and Individual Taxpayer Identification Number (SSN/ITIN),
    • update the user name rules,
    • update help screens for password and user name,
    • add a password link, and
    • allow only 5 digits for the PIN.
    Details of the security changes to e-services registration can be found here.

    Tax professionals and taxpayers will be faced with extra layers of security when they register for the IRS's e-services program and sign into their accounts, the agency announced in an electronic alert issued on October 1.

    Among the changes is the addition of a series of challenge questions to allow users to unlock their own accounts. The IRS said new users will be presented with the questions when they register. Existing users will be presented with the questions the first time they log on.

    The IRS said it implemented the security changes on September 28, but said the challenge questions will not be available for taxpayers who forget their passwords until sometime in November.

    According to the alert, users will no longer get a 15-minute time-out after three unsuccessful login attempts, as they will be able to unlock their account by answering the challenge questions. If the users can't correctly answer the questions, their account will be locked and they will have to use the Forgotten or Lost Password or PIN function to unlock it, the IRS said.  In addition, users will not be allowed to enter their Social Security number as part of their user name or password, the IRS said. Passwords will have to contain at least one number, one uppercase and one lowercase letter, and one special character. The IRS said if a user's password doesn't meet the new requirements, the system will force the user to update the password the next time they log in.

    Passwords will also expire after a prescribed period of time. Users won't be able to reuse the last 24 passwords, the IRS said, adding it will send e-mail notifications 30 days and again 20 days before a password expires. The agency still plans to use the 10-day e-mail notification it currently sends out.

    The IRS said it also is making changes to the registration screen. The agency said it will:

    • remove the word "expired,"
    • change Taxpayer Identification Number (TIN) to Social Security number and Individual Taxpayer Identification Number (SSN/ITIN),
    • update the user name rules,
    • update help screens for password and user name,
    • add a password link, and
    • allow only 5 digits for the PIN.
    Details of the security changes to e-services registration can be found here.

    Tax professionals and taxpayers will be faced with extra layers of security when they register for the IRS's e-services program and sign into their accounts, the agency announced in an electronic alert issued on October 1.

    Among the changes is the addition of a series of challenge questions to allow users to unlock their own accounts. The IRS said new users will be presented with the questions when they register. Existing users will be presented with the questions the first time they log on.

    The IRS said it implemented the security changes on September 28, but said the challenge questions will not be available for taxpayers who forget their passwords until sometime in November.

    According to the alert, users will no longer get a 15-minute time-out after three unsuccessful login attempts, as they will be able to unlock their account by answering the challenge questions. If the users can't correctly answer the questions, their account will be locked and they will have to use the Forgotten or Lost Password or PIN function to unlock it, the IRS said.  In addition, users will not be allowed to enter their Social Security number as part of their user name or password, the IRS said. Passwords will have to contain at least one number, one uppercase and one lowercase letter, and one special character. The IRS said if a user's password doesn't meet the new requirements, the system will force the user to update the password the next time they log in.

    Passwords will also expire after a prescribed period of time. Users won't be able to reuse the last 24 passwords, the IRS said, adding it will send e-mail notifications 30 days and again 20 days before a password expires. The agency still plans to use the 10-day e-mail notification it currently sends out.

    The IRS said it also is making changes to the registration screen. The agency said it will:

    • remove the word "expired,"
    • change Taxpayer Identification Number (TIN) to Social Security number and Individual Taxpayer Identification Number (SSN/ITIN),
    • update the user name rules,
    • update help screens for password and user name,
    • add a password link, and
    • allow only 5 digits for the PIN.
    Details of the security changes to e-services registration can be found here.

    Tax professionals and taxpayers will be faced with extra layers of security when they register for the IRS's e-services program and sign into their accounts, the agency announced in an electronic alert issued on October 1.

    Among the changes is the addition of a series of challenge questions to allow users to unlock their own accounts. The IRS said new users will be presented with the questions when they register. Existing users will be presented with the questions the first time they log on.

    The IRS said it implemented the security changes on September 28, but said the challenge questions will not be available for taxpayers who forget their passwords until sometime in November.

    According to the alert, users will no longer get a 15-minute time-out after three unsuccessful login attempts, as they will be able to unlock their account by answering the challenge questions. If the users can't correctly answer the questions, their account will be locked and they will have to use the Forgotten or Lost Password or PIN function to unlock it, the IRS said.  In addition, users will not be allowed to enter their Social Security number as part of their user name or password, the IRS said. Passwords will have to contain at least one number, one uppercase and one lowercase letter, and one special character. The IRS said if a user's password doesn't meet the new requirements, the system will force the user to update the password the next time they log in.

    Passwords will also expire after a prescribed period of time. Users won't be able to reuse the last 24 passwords, the IRS said, adding it will send e-mail notifications 30 days and again 20 days before a password expires. The agency still plans to use the 10-day e-mail notification it currently sends out.

    The IRS said it also is making changes to the registration screen. The agency said it will:

    • remove the word "expired,"
    • change Taxpayer Identification Number (TIN) to Social Security number and Individual Taxpayer Identification Number (SSN/ITIN),
    • update the user name rules,
    • update help screens for password and user name,
    • add a password link, and
    • allow only 5 digits for the PIN.
    Details of the security changes to e-services registration can be found here.

    Tax professionals and taxpayers will be faced with extra layers of security when they register for the IRS's e-services program and sign into their accounts, the agency announced in an electronic alert issued on October 1.

    Among the changes is the addition of a series of challenge questions to allow users to unlock their own accounts. The IRS said new users will be presented with the questions when they register. Existing users will be presented with the questions the first time they log on.

    The IRS said it implemented the security changes on September 28, but said the challenge questions will not be available for taxpayers who forget their passwords until sometime in November.

    According to the alert, users will no longer get a 15-minute time-out after three unsuccessful login attempts, as they will be able to unlock their account by answering the challenge questions. If the users can't correctly answer the questions, their account will be locked and they will have to use the Forgotten or Lost Password or PIN function to unlock it, the IRS said.  In addition, users will not be allowed to enter their Social Security number as part of their user name or password, the IRS said. Passwords will have to contain at least one number, one uppercase and one lowercase letter, and one special character. The IRS said if a user's password doesn't meet the new requirements, the system will force the user to update the password the next time they log in.

    Passwords will also expire after a prescribed period of time. Users won't be able to reuse the last 24 passwords, the IRS said, adding it will send e-mail notifications 30 days and again 20 days before a password expires. The agency still plans to use the 10-day e-mail notification it currently sends out.

    The IRS said it also is making changes to the registration screen. The agency said it will:

    • remove the word "expired,"
    • change Taxpayer Identification Number (TIN) to Social Security number and Individual Taxpayer Identification Number (SSN/ITIN),
    • update the user name rules,
    • update help screens for password and user name,
    • add a password link, and
    • allow only 5 digits for the PIN.
    Details of the security changes to e-services registration can be found here.

  • ATP and ABA Credential Holders Exempt from New IRS Annual Filing Season Program Course and Exam Requirements

    Friday, September 05, 2014 10:30 AM | NCSA Website Manager (Administrator)

    acatlogo1.gif

    Accredited Tax Preparers (ATPs) and Accredited Business Accountant/Advisors (ABAs) are exempt from the requirement to take an Annual Federal Tax Refresher (AFTR) course and exam that is part of the new Internal Revenue Service (IRS) voluntary Annual Filing Season Program (AFSP).

    The Accreditation Council for Accountancy and Taxation (ACAT) is a non-profit, independent testing organization that accredits professionals with the ATP and ABA credentials.

    ABAs and ATPs will automatically receive the AFSP-Record of Completion and be included in a public database of tax return preparers scheduled to launch on the IRS website by January 2015. This Directory of Federal Tax Return Preparers with Credentials and Select Qualifications will include the name, city, state, zip code, and credentials of all ABAs, ATPs, attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries with a valid Preparer Tax Identification Number (PTIN), as well as all AFSP-Record of Completion holders, including ACAT-credentialed ABAs and ATPs.

    Beginning in 2016, ATPs and ABAs–as AFSP participants–can also represent clients before the IRS regarding returns they prepared and signed. PTIN holders without an AFSP Record of Completion or other professional credential will not be allowed to represent clients before the IRS. Read the full release

  • Tax News

    Friday, September 05, 2014 10:28 AM | NCSA Website Manager (Administrator)

    Tax News

    Procedures to Avoid Backup Withholding
    Revenue Procedure 2014-43 provides guidance to individual payees on verifying social security numbers to prevent or stop backup withholding under section 3406 of the Internal Revenue Code.
    Read Revenue Procedure 2014-43

    Q&As on Employer Shared Responsibility Provisions Under the Affordable Care Act
    Questions 48 through 56 relate to the 4980H provision. 
    Read the Q&As

    Small Business Health Care Tax Credit Questions and Answers: Determining FTEs and Average Annual Wages
    Question 33 has information on determining FTE's and average annual wages when family members of small business owners are employees.
    Read more

    Employer Health Care Arrangements
    IRS.gov has Q&As relating to employer reimbursements of employee health insurance premiums.
    Q&As

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