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IMRS Report February 5, 2021
Contact Don at dbarg@barg-henson.com
We Want You to Know
Please continue to visit this page for updates:
IRS Operations During COVID-19: Mission-critical functions continue
Economic Impact Payment:
Individuals who did not receive an EIP or received an amount less than they were entitled should file a tax year 2020 Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Income Tax Return for Seniors, to claim/reconcile the Recovery Rebate Credit (RRC) beginning in calendar year 2021. Visit EIP FAQ’s for updated answers to EIP and RRC questions.
Multiple languages on IRS: www.irs.gov/help/languages
Use Schedule LEP to state a preference to receive written communications from the IRS in an alternative language - https://www.irs.gov/forms-pubs/about-schedule-lep.
2848 Revision (01/2021):
Form 2848 was revised. Prior versions can be used thru April 15th.
2848 and 8821 Electronic Signatures:
Forms 2848 and 8821 can be submitted online - https://www.irs.gov/tax-professionals/submit-forms-2848-and-8821-online. Any authorization received with an electronic signature not submitted via the TDC Platform will be rejected. IRS will NOT accept electronically signed authorizations via Fax or Mail. Want more information? View the archived webinar on Understanding Third Party Authorizations - Power of Attorney Form 2848 (irsvideos.gov)
Webinars for Tax Practitioners:
How to Choose a Paid Tax Preparer- Thursday, February 18, 2021. For other webinars, see www.irs.gov/webconference. In case you miss our webinars, you can view the archives on the IRS Video Portal.
Report unemployment compensation
Unemployment Compensation is taxable. Note: If a 1099-G, Certain Government Payments, is not received by mail, visit your State agency’s website to secure an electronic version.
Practitioners Want You to Know:
From a Dallas TaxPro:
I want to thank IRS for allowing preparers with E-Service accounts to so easily sign into E-Services to request a voluntary IP Pin – I just obtained my own IP PIN for the current year for my own Form 1040 in under 4 minutes – and admit I am not the fastest on computers.
An Austin TaxPro says:
I uploaded my first Form 2848 POA request tonight. Got this acknowledgement immediately. The app can be found on irs.gov/tax pros and is identical to logging into e-Services.
A Houston TaxPro:
I found the Taxpayer Advocate link to determine if you should contact Taxpayer Advocate very useful: https://www.taxpayeradvocate.irs.gov/get-help/
Prior Issues:
CAF has not processed POA
Issue: Practitioner reports the CAF Unit took 31 business days to process a POA, not the 25 days cited on the IRS Operations During COVID-19.
Response: To protect the public and employees, and in compliance with orders of local health authorities around the country, certain IRS services continue to be extremely limited. Thank you for keeping us informed on the trends and for your patience.
Status: Closed
New Issues:
Can you still fax 2848s?
Issue: Can you still fax 2848s to PPS?
Response: Yes. If you can’t submit your forms online, you can fax or mail your forms directly to the IRS. For information, see Instructions for Form 2848 or Instructions Form 8821.
https://www.irs.gov/newsroom/tax-professionals-how-to-use-new-submit-forms-2848-and-8821-online
Status: Closed
Will Electronic signature authorizations (2848s) skip the line?
Issue: Practitioners want to know if the electronic authorizations will go into the queue.
Response: No, the receipt of electronic signature authorizations does not change the IRM procedures. The same procedures for paper authorizations are followed and will be worked in received date order (FIFO).
Status: Closed
Bring back Electronic Account Resolution (EAR)
Issue: Several years ago, practitioners had more options on E-services. There was an option to ask a question on a client account and eventually receive an answer in our e-services mailbox. We could also resolve a client issue. Any chance IRS could add that back to e-services?
Response: TaxPro account will take the place of the former option, EAR, that was available to practitioners. EAR and the Disclosure Authorization products on e-Services were retired on Aug. 11, 2013 due to the low usage of the program for these two services.
Status: Closed
Form 1096 Annual Summary and Transmittal of U.S. Information Returns
Issue: Practitioners informed us that the address for mailing was incorrect. SL elevated the issue and the mailing address was corrected almost immediately. Thank you for bringing this to our attention. The address was corrected on 1/22/2021. https://www.irs.gov/forms-pubs/correction-to-the-zip-code-in-the-austin-submission-processing-center-mailing-address.
Practitioners want to know if the IRS will provide an extension due to the wrong address being published and what happens if they already mailed their paperwork to the incorrect address? Where will it go?
Response: The address has been corrected.
Status: Elevated. Stay tuned to IRS.gov.
Look up Tool for EIP
Issue: Practitioners have requested a lookup tool for EIP payments.
Response: There currently is not a look up tool available for tax pros to verify EIP payments. Taxpayers can look up their EIP 1 and 2 amounts on IRS.gov by registering for access to View My Online Account. https://www.irs.gov/payments/view-your-tax-account or Get Transcript by mail.
Disaster Amended Returns for Florida
Issue: The victims of Hurricane Michael are having a very hard time getting their refunds from their amended returns. Returns were marked as Hurricane Michael. They have been submitting amended returns since June of 2020. Where's My Amended Return say it takes 3 weeks for an amended return to show on an account.
Response: Where's My Amended Return webpage states it is taking longer than usual to process returns and asks that a duplicate return not be submitted. Review the Mission Critical Functions pages for details on how long you may have to wait.
Status: Closed
How can we find the status of Amended return?
Issue: IRS has not been very responsive. Filed a 2016 Amended return in August before statute ran. Online, IRS.gov. says information should post within 3 weeks. Nothing is posted. How does one check status of the filing and refund?
Response: Continue to check the Where's My Amended Return tool. Where's My Amended Return and the IRs Mission Critical Functions states that it is taking longer to process 1040X returns and requests that a duplicate return not be filed.
Status: Closed
How to get Form 706 Transcript
Issue: Practitioners have reported difficulty in getting transcripts for Estate returns. IRS.gov states: In lieu of an estate tax closing letter, account transcripts are available online to authorized tax professionals authenticated through Secure Access AND registered with e-Services Transcript Delivery Service. Practitioner has been receiving conflicting or no information from e-help desk or PPS. Transcripts in Lieu of Estate Tax Closing Letters | Internal Revenue Service (irs.gov)
Response: Issue elevated
Status: Open
Schedule LEP
Issue: Practitioner would like to know if correspondence will be sent to POA in English or LEP format.
Response: A copy of the correspondence in English will be included. Form 1040 Schedule LEP allows individuals to elect to receive certain types of written correspondence from the IRS in a Limited English Proficiency (LEP) format. About Schedule LEP (Form 1040), Request for Change in Language Preference | Internal Revenue Service (irs.gov)
Status: Closed
Underpayment of ES penalties
Issue: I have a question about underpayment of estimated tax penalties for taxpayers who did not pay their 4th quarter estimated tax payment. The IRS states that if they file their tax return and pay their tax by January 31 they will not be subject to a penalty, but since the filing date was February 12th, will they be penalized?
Response: Per IRS instructions: You don’t have to make the payment due January 15, 2021, if you file your 2020 tax return by February 1, 2021, and pay the entire balance due with your return. Penalty relief due to reasonable cause: If you were affected by the pandemic or other circumstances, we may be able to remove or reduce some penalties due to reasonable cause, but only if you tried to comply with the tax law but were unable to due to facts and circumstances beyond your control. If this applies to you and you have the necessary documentation to support your claim, call the toll-free number on your notice to request penalty relief due to reasonable cause
Status: Elevated
Returning Stimulus Payments
Issue: Practitioner wants to know if there is any guidance for returning Stimulus checks.
Response: The EIP FAQs gives detailed information on Returning the Economic Impact Payment.
Status: Closed
ITIN and refund
Issue: Practitioner states the taxpayer e-filed a tax return pre-pandemic, but an ITIN was expired. They renewed ITIN and sent it in with a copy of the IRS letter but have not heard anything and have not received a refund.
Status: Open