IRS NEWS – EDUCATIONAL CORNER
- Please note that the IRS does not initiate contact with taxpayers by email or phone to request personal or financial information. IRS will never call to demand immediate payment, nor threaten to bring in the local police or law enforcement to arrest you.
- You may notice on your W2 that there is a new entry-a 16 digit verification code. This is part of an effort conducted by the IRS to protect taxpayers and strengthen anti-fraud efforts. If the code is not included, your tax will still be accepted. However, initial results indicate the verification code shows promise in reducing tax fraud.
- Changes to ITIN Program– In August 2016, it was announced that all ITINs not used on a federal Income Tax return at least once in three consecutive years will expire at the end of the year. All ITINs issued before 2013 will begin expiring this year, starting with those with middle digits 78 and 79. All expired ITINs must be renewed before being used on a tax return. There are also new documentation requirements.
- Same Sex and Opposite Sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under the state law-are not considered as married or spouses for federal tax purposes.
- FAST Act enacted on Dec 4, 2015 states:
- Requires the IRS to use private collection agencies for the collection of outstanding inactive tax receivables.
- Changes the automatic extension to file Form 5500 back to 2 ½ months for the earlier automatic extension.
- Foreign Account Tax Compliance Act – requires that foreign financial institutions to report on foreign assets held by US account holders. Requires US person to report their foreign financial accounts and assets.