June 2020 IRS Update From NCCPAP

By NCCPAP Staff posted 07-08-2020 04:16 PM

  

Topics Include: Economic Impact Payments, Nationwide Tax Forums, Pension Plans & COVID-19, Small Business/Self-Employed Division, and Qualified Business Income Deduction

Immediate Past President and current Tax Chair, Stephen Mankowski, CPA, recently attended the monthly IRS Meeting.

IRS Update

The IRS is continuing to reopen its operations around the country, starting with several states in June and adding more each week; all remaining states plan to reopen by July 13. All offices remain in mandatory work from home situations, where possible. Non-portable employees will start coming in and paying close attention to any issues regarding the pandemic. Parts of certain facilities could potentially close as a safety precaution. While there’s a significant backlog of work as well as delays on phones, the IRS is getting back to its new normal, but taking the time to do so safely and securely. Check www.irs.gov for updates.

There has been an enormous amount of time and energy spent on Economic Impact Payments with an all-out effort in Wage & Investment and IT. Over 150M Economic Impact Payments have been sent. Still, several million people without filing requirements may be eligible; these individuals are urged to access IRS non-filer portals and tools.

While changes continue to be discussed, the IRS did not feel that an extension was warranted and has maintained its July 15 filing deadline.

All IRS Nationwide Tax Forums will be held virtually this year. Thirty webinars are available between 7/21 to 8/20. Commissioner Rettig will give a Keynote Address at launch, on 7/21, and the last day will be devoted to a big tax update. There is also a virtual exhibit hall and three levels of participation for organizations.

TEGE, Pension Plans & COVID-19

On 3/13, President Trump declared an Emergency Declaration that activated Rev. Proc. 2018-58 for the entire country. Of note:
  • Notice 2020-35 deadlines, including employee taxes, benefit plans, IRAs, HSA, etc. have been postponed to 7/15.
  • Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, deadlines are extended to 7/16 if due by 3/30. Penalties & interest will continue to accrue starting on 7/16.
  • Updated mortality improvement rates and static mortality tables to be used for defined benefit pension plans are extended to 7/15.
  • Form 5498 Series, IRA Contribution Information, filing dates are postponed until 8/31.

Small Business/Self-Employed Division (SB/SE)

The IRS is using a new analytical tool that maps the U.S. with overlays for COVID-19, bankruptcy, unemployment, and other key data down to the county level. This better informs the IRS on how to focus SB/SE staffing and their mission. A new fraud office was opened in February with an emphasis on detecting and developing fraud whenever suspected. Over the last 90 days, they jumped into action with fraud related to COVID-19 credits and PPP, etc. to help catch the bad people. SB/SE’s priority is to support small businesses, not wanting them to fail.

199A, Qualified Business Income Deduction (QBID)

Two new forms include Form 8995 for simplified computation and Form 8995A for full computation. For 1040 filers, QBID is reported on line 10 under standard or itemized deductions. In addition, the IRS has developed new K-1 schedules for pass-through reporting. A new QBID landing page is being developed on the IRS website and they continue to work on outreach for awareness of QBID.

Overall, the IRS is working hard at delivering on its primary roles, as well as fulfilling its new responsibilities. We continue to commend the work they are doing.


Stay tuned for monthly IRS updates from NCCPAP.

About NCCPAP

The National Conference of CPA Practitioners (NCCPAP) is a professional organization comprised of Certified Public Accountants practicing in the United States. In addition to serving as a forum for education, networking, and community impact, NCCPAP also advocates for its clients. NCCPAP influences tax administration and tax policy by regularly meeting with Internal Revenue Service representatives, state taxing authorities, and elected officials. NCCPAP members represent over one million businesses and individual clients. The organization is headquartered in Woodbury, NY. For more information visit, www.NCCPAP.org.

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610-687-2200                                                               516-333-8282

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