etrent17/irs-articles huggingface dataset:
IR-2018-116, May 7, 2018
WASHINGTON — The Internal Revenue Service today introduced a new online tool on IRS.gov designed to provide faster, easier access to publicly available information about exempt organizations.
"This new tool provides taxpayers an easy way to get information about charitable organizations," said Acting IRS Commissioner David Kautter. "Tax-exempt organizations play a critical role in our nation, and this will provide greater insight for people considering donations."
The new Tax Exempt Organization Search (TEOS) replaces EO Select Check, a more limited tool available since 2012 that focused primarily on providing information on an organization’s tax-exempt status.
The new tool makes images of newly-filed 990 forms available for the first time. TEOS also features two major enhancements:
Users can access more types of information than were previously available using EO Select Check.
The search process has been simplified and allows users to look across multiple data files for information in one search.
In addition, TEOS is mobile friendly, which provides access to the search tool using smartphones or tablets. With the new tool, users can view images of an organization’s:
	Forms 990, 990-EZ, 990-PF and 990-T (501(c)(3) organizations only) filed with the IRS. Initially, only 990 series forms filed in January and February 2018 will be available. New filings will be added monthly.

Favorable determination letters issued by the IRS when an organization applied for and met the requirements for tax-exempt status. Initially, a limited number of determination letters will be available. Eventually, determination letters issued since January 2014 will also appear on the system.
TEOS also can be used to find all the information previously available on EO Select Check. This information includes whether an organization is eligible to receive tax-deductible contributions, has had its tax-exempt status revoked because it failed to file required forms or notices for three consecutive years and, for a small organization, whether it filed a Form 990-N (e-Postcard) annual electronic notice with the IRS.
Publicly-available data from electronically-filed 990 forms will continue to be available in a machine-readable format through Amazon Web Services. Visit IRS.gov for more information.
IR-2018-114, May 4, 2018
WASHINGTON — The Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting on June 7, 2018, when the panel will submit its annual report and recommendations to the IRS.
The ACT was established under the Federal Advisory Committee Act to provide an organized public forum for discussion of relevant issues affecting the tax exempt and government entities communities.
The ACT includes external stakeholders and representatives who deal with employee retirement plans, tax-exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. The committee advises the IRS on operational policy and procedural improvements.
At the public meeting, the ACT committee members will present their report that includes recommendations regarding:

The re-opening of the IRS Determination Letter Program
Missing participants in retirement plans
Incentivizing universal e-filing for Forms 990
Sharing of taxpayer information with tribal government tax programs
Encouraging self-compliance by issuers of tax-advantaged obligations/tax exempt bonds

The ACT’s public meeting will begin at 2 p.m. EST, June 7, 2018, at the IRS headquarters at 1111 Constitution Ave. NW, Washington, DC. The 2018 ACT report will be available on IRS.gov on the day of the meeting.
Due to limited seating and security requirements, members of the public interested in attending the meeting should email tege.advisory.comm@irs.gov to confirm their attendance. Attendees must have photo identification and should arrive at least 30 minutes before the session begins.
ACT members continuing on the committee in 2018

Michael Engle, BKD, LLP non-profit committee
 Andrew Lipkin, Senior Tax Counsel for New York City
Jean Swift, Treasurer of the first Mashantucket Pequot Tribal Council
IR-2018-113, May 4, 2018
WASHINGTON — With many businesses facing a tight job market, the Internal Revenue Service reminds employers to check out a valuable tax credit available to them for hiring long-term unemployment recipients and other categories of workers with employment barriers.
During National Small Business Week — April 29 to May 5 — the Internal Revenue Service is highlighting tax benefits and resources designed to help new and existing small businesses.
The Work Opportunity Tax Credit (WOTC) is a long-standing income tax benefit that encourages employers to hire designated categories of workers who face significant barriers to employment. For any employer considering this option, the WOTC may be able to help.
For those who haven’t claimed the WOTC in a while, the IRS noted that legislation enacted in recent years has both expanded and modified the credit. For example, legislation effective Jan. 1, 2016, added a new category for long-term unemployment recipients who had been unemployed for a period of at least 27 weeks and received state or federal unemployment benefits during part or all of that time.
Here’s how it works.
The credit, usually claimed on Form 5884, Work Opportunity Credit, is generally based on wages paid to eligible workers during the first two years of employment. To qualify for the credit, an employer must first request certification by filing IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, with the state workforce agency within 28 days after the eligible worker begins work. Other requirements and further details can be found in the instructionsPDF to Form 8850.
There are now 10 categories of WOTC-eligible workers. Besides long-term unemployment recipients, the other categories include certain veterans and recipients of various kinds of public assistance, among others.
The 10 categories are:
Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients
Unemployed veterans, including disabled veterans
Ex-felons
Designated community residents living in Empowerment Zones or Rural Renewal Counties
Vocational rehabilitation referrals
Summer youth employees living in Empowerment Zones
Food stamp (SNAP) recipients
Supplemental Security Income (SSI) recipients
Long-term family assistance recipients
Qualified long-term unemployment recipients.
Eligible businesses claim the WOTC on their income tax return. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800, General Business Credit.
Though the credit is not available to tax-exempt organizations for most categories of new hires, a special rule allows them to get the WOTC for hiring qualified veterans. These organizations claim the credit on Form 5884-C, Work Opportunity Credit for Qualified Tax Exempt Organizations Hiring Qualified Veterans. Visit the WOTC page on IRS.gov for more information.
IR-2018-112, May 3, 2018
WASHINGTON — The Internal Revenue Service today reminded small business owners who work from a home office that they may be overlooking a common deduction.
The IRS encourages small business owners to explore the guidelines surrounding home office deductions so they understand the legal guidelines and options available. More details are available in Publication 587.
As part of National Small Business Week (April 29-May 5), the IRS is highlighting a series of tips and resources available for small business owners. For someone considering claiming the home office deduction, there are two options available:
Regular method
The first option for calculating the home office deduction is the regular method. This method requires computing the business use of the home by dividing the expenses of operating the home between personal and business use. Direct business expenses are fully deductible and the percentage of the home floor space used for business is assignable to indirect total expenses. Self-employed taxpayers file Schedule C, Profit or Loss From Business (Sole Proprietorship)PDF, and compute this deduction on Form 8829, Expenses for Business Use of Your HomePDF.
Simplified method
The second option, the simplified method, reduces the paperwork and recordkeeping burden. The simplified method has a prescribed rate of $5 a square foot for business use of the home. There is a maximum allowable deduction available based on up to 300 square feet. Choosing this option requires taxpayers to complete a short worksheet in the tax instructions and enter the result on the tax return. There is a special calculation for daycare providers. Self-employed individuals claim the home office deduction on Schedule CPDF, Line 30, and farmers claim it on Schedule F, Profits or Loss from FarmingPDF, Line 32.
Regardless of the method used to compute the deduction, business expenses in excess of the gross income limitation are not deductible. Deductible expenses for business use of a home include the business portion of real estate taxes, mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs. In general, expenses for the parts of the home not used for business are not deductible.
Deductions for business storage are allowed when the home is the only fixed location of the business, or for regular use of a residence for daycare services; exclusive use isn't required in these cases.
Further details on the home office deduction and the simplified method can be found in Publication 587, Business Use of Your Home, on IRS.gov.
IR-2018-109, May 2, 2018
WASHINGTON — In recognition of National Small Business Week, April 29 to May 5, the Internal Revenue Service is highlighting several resources to help small business owners and self-employed individuals understand and meet their tax obligations. The new tax law changes enacted in December 2017 make it especially important for these groups to know about new provisions affecting them.
 
During this week, the IRS will highlight various products including:
A series of news releases on various topics including the sharing economy, home office deduction, cybersecurity and the Work Opportunity Tax Credit.
	 
Tax tips about business provisions under the new tax reform law. Topics will include tax law changes to depreciation rules and the employer credit for family and medical leave and how it benefits employers. Tax tips are written in plain language and can be subscribed to using the IRS’s Tax Tips email-subscription program.
	 
Information for small businesses is also available through IRS social media channels including tax tips and other resources. Stay informed following the hashtag #IRSsmallbiz and help us spread these messages by sharing the @IRSnews, @IRSTaxPros and @IRSenEspanol tweets.
 Other small business resources
The IRS encourages business owners to check out other webinars on the IRS video portal. The portal has presentations on a variety of small business topics. Business owners may also be interested in these sites:
Small Business and Self-Employed Tax Center  — an online resource featuring links to a variety of useful tools, including Small Business Taxes: The Virtual Workshop, a downloadable tax calendar and common forms with instructions. The Center provides help on everything from how to get an Employer Identification Number online to information and tips about IRS audits.
	 
Self-Employed Individual Tax Center — a resource for sole proprietors and others who are in business for themselves. This site has many useful tips and references to tax rules a self-employed person may need to know.
	 
IRS YouTube Video Channel — watch videos for small businesses on the Small Business playlist.
	 
Online Learning and Educational Products  — a page with tools to help taxpayers learn about taxes on their own time and at their own pace. For example, the IRS Tax Calendar for Businesses and Self-Employed has important tax dates for businesses.
	 
E-News for Small Businesses —  a free electronic mail service that offers tax information for small business owners and self-employed individuals, including reminders, tips and special announcements. 
More information
Major tax reform was approved by Congress in the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The IRS has been working to implement its provisions and give information and guidance to taxpayers, businesses and the tax community as it becomes available.
IR-2018-146, June 29, 2018
WASHINGTON — As part of a larger effort to help taxpayers, the Internal Revenue Service plans to streamline the Form 1040 into a shorter, simpler form for the 2019 tax season.
The new 1040PDF – about half the size of the current version – would replace the current Form 1040 as well as the Form 1040A and the Form 1040-EZ.  The IRS circulated a copy of the new form and will work with the tax community to finalize the streamlined Form 1040 over the summer.
This new approach will simplify the 1040 so that all 150 million taxpayers can use the same form. The new form consolidates the three versions of the 1040 into one simple form. At the same time, the IRS will still obtain the information from each taxpayer needed to determine their tax liability or refund. 
The new Form 1040 uses a “building block” approach, in which the tax return is reduced to a simple form. That form can be supplemented with additional schedules if needed. Taxpayers with straightforward tax situations would only need to file this new 1040 with no additional schedules.
Since more than nine out of 10 taxpayers use software or a tax preparer, the IRS will be working with the tax community to prepare for the streamlined Form 1040. This will also help ensure a smooth transition for people familiar with software products and the interview process used to prepare tax returns.
Taxpayers who file on paper would use this new streamlined Form 1040PDF and supplement it with any needed schedules.
IR-2018-144, June 27, 2018
WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) today released its annual report, featuring numerous recommendations on a range of issues in electronic tax administration.
The Committee presented the report at a public meeting to IRS Acting Commissioner David Kautter.
"The ETAAC works closely with the Security Summit in the fight against identity theft and refund fraud,” Kautter said. “The group’s advice is important to our efforts to improve tax administration, and the IRS looks forward to reviewing the recommendations.”
ETAAC exists in support of the goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. This is the Committee’s second annual report since it was realigned and expanded to focus on refund fraud and cybersecurity.
While the ETAAC makes recommendations to the IRS, it works in conjunction with the Security Summit, a joint effort of the IRS, state tax administrators, tax software providers, tax professionals and financial services firms to fight fraud. Summit efforts have resulted in sharp declines in the number of taxpayer reports of identity theft and refund fraud.
ETAAC members represent various segments of the tax community, including tax professionals, tax software developers, large and small businesses, employers and payroll service providers, individual taxpayers and consumer advocates, the financial industry and state and local governments.
The 2018 report Electronic Tax Administration Advisory Committee Annual Report to Congress, is available on IRS.gov.
IR-2018-141, June 26, 2018
WASHINGTON — Tax professionals interested in attending the IRS Nationwide Tax Forum in National Harbor, Md., can save $115 by registering soon, according to the Internal Revenue Service.
The National Harbor Tax Forum, located in the Washington, D.C., metro area, will take place July 17-19 with a special emphasis on tax reform and cybersecurity issues.
Enrolled agents, certified public accountants, certified financial planners, Annual Filing Season Program participants and other tax professionals can register at the standard rate of $255 through July 3. Attendees registering after that date or on-site pay $370.
Seminars and workshops
Tax professionals attending a 2018 Tax Forum can earn up to 18 continuing professional education credits. They will get the latest information on federal and state tax issues presented by experts from the IRS and partner organizations in a wide variety of seminars and workshops. Seminar topics include tax reform, cybersecurity, data compromises, identity theft victim assistance, collection issues and more.
Case Resolution Program
The Nationwide Tax Forums offer tax professionals with unresolved client cases the opportunity to meet face-to-face with IRS representatives in the Case Resolution Program. To schedule an appointment, visit the case resolution table at the Forum or go directly to the case resolution room during the three-day event. Be sure to bring an original valid power of attorney for any case. Limit: one case per tax business per forum. Also, bring a completed Nationwide Tax Forum Case Data SheetPDF along with any supporting documents. The program is for client cases only.
Exhibit hall
The Forums also feature a two-day expo with tax and financial businesses offering products, services and expertise designed with the tax professional in mind. Prior year presentations are available on IRS.gov.
2018 Tax Forum locations and dates
The 2018 Nationwide Tax Forums continue around the country. Other remaining events are: Atlanta, July 10-12; San Diego, Aug. 7-9; Chicago, Aug. 21-23; and Orlando, Sept. 11-13. Visit the IRS Nationwide Tax Forum website to register.
IR-2018-140, June 19, 2018
WASHINGTON — Tax professionals wishing to attend the IRS Nationwide Tax Forum in Atlanta can save $115 by registering soon, according to the Internal Revenue Service. The Atlanta IRS Nationwide Tax Forum takes place July 10-12 with a special emphasis on tax reform and cybersecurity issues.
Enrolled agents, certified public accountants, certified financial planners, Annual Filing Season Program participants and other tax professionals can register at the standard rate of $255 through June 26. Attendees registering after that date or on-site pay $370.
Seminars and workshops
Tax professionals attending a 2018 Tax Forum can earn up to 18 continuing professional education credits. They will get the latest information on federal and state tax issues presented by experts from the IRS and partner organizations in a wide variety of seminars and workshops. Seminar topics include tax reform, cybersecurity, data compromises, identity theft victim assistance, collection issues and more.
Case Resolution Program
The Nationwide Tax Forums offer tax professionals with unresolved client cases the opportunity to meet face-to-face with IRS representatives in the Case Resolution Program. To schedule an appointment, visit the case resolution table at the Forum or go directly to the case resolution room during the three-day event. Be sure to bring an original valid power of attorney for any case. Limit: one case per tax business per forum. Also, bring a completed Nationwide Tax Forum Case Data SheetPDF along with any supporting documents. The program is for client cases only.
Exhibit hall
The Forums also feature a two-day expo with tax and financial businesses offering products, services and expertise designed with the tax professional in mind. Prior year presentations are available on IRS.gov.
2018 Tax Forum locations and dates
The 2018 Nationwide Tax Forums continue around the country. Remaining events are: National Harbor, Md. (Washington, D.C., metro area), July 17-19; San Diego, Aug. 7-9; Chicago, Aug. 21-23; Orlando, Sept. 11-13. Visit the IRS Nationwide Tax Forum website to register.
IR-2018-136, June 8, 2018
WASHINGTON ―The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2018, as they were in the quarter that began on April 1. The rates will be:
5 percent for overpayments, 4 percent in the case of a corporation;
2.5 percent for the portion of a corporate overpayment exceeding $10,000;
5 percent for underpayments; and
7 percent for large corporate underpayments. 
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus 0.5 of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during April 2018 to take effect May 1, 2018, based on daily compounding.
Revenue Ruling 2018-18PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2018-26, dated June 25, 2018.
IR-2018-134, June 8, 2018
WASHINGTON — A private college or university, subject to the new 1.4 percent excise tax on net investment income, that sells property at a gain generally may use the property’s fair market value at the end of 2017 as its basis for figuring the tax on any resulting gain, the Internal Revenue Service said today. In many instances, this new stepped-up basis rule will reduce the amount of gain subject to the new tax. Normal basis rules will continue to apply for calculating any loss.
In Notice 2018-55PDF, posted today on IRS.gov, the Treasury Department and the IRS said they plan to issue proposed regulations addressing this and other matters relating to the new excise tax. In the meantime, affected taxpayers may rely on the special basis step-up rule described in the notice. The notice also requests public comment on other issues addressed in the notice, as well as any other matters that should be addressed in future guidance. See the notice for details on submitting comments.
 
The excise tax was included in the Tax Cuts and Jobs Act (TCJA), tax reform legislation enacted in December. The tax applies to any private college or university with at least 500 full-time tuition-paying students, more than half of whom are located in the United States, that has an endowment of at least $500,000 per student. An estimated 40 or fewer institutions are affected.
According to the notice, the basis of property held on Dec. 31, 2017, that is later sold at a gain will be not less than its fair market value on Dec. 31, 2017, plus or minus subsequent normal basis adjustments. Similarly, Treasury and IRS intend to propose regulations under which losses may offset gains to the extent of gains, but no capital loss carryovers or carrybacks will be allowed. Proposed regulations also may permit losses from property sales by related organizations to offset gains realized by other related organizations.
Updates on the implementation of this and other TCJA provisions can be found on the Tax Reform page of IRS.gov.
IR-2018-132, June 7, 2018
WASHINGTON ― With hurricane season underway, the Internal Revenue Service is reminding taxpayers that criminals and scammers often try to take advantage of the generosity of taxpayers who want to help victims of major disasters.
Hurricane season runs June 1 to Nov. 30, and taxpayers need to be vigilant of scams that will undoubtedly pop up when and if a hurricane occurs during that time.
Fraudulent schemes normally start with unsolicited contact by telephone, social media, e-mail or in-person using a variety of tactics.
Some impersonate charities to get money or private information from well-intentioned taxpayers.
Bogus websites use names similar to legitimate charities to trick people to send money or provide personal financial information.
They even claim to be working for or on behalf of the IRS to help victims file casualty loss claims and get tax refunds.
Others operate bogus charities and solicit money or financial information by telephone or email.
Help for disaster victims
Disaster victims can call the IRS toll-free disaster assistance telephone number (866-562-5227). Phone assistors will answer questions about tax relief or disaster-related tax issues. Details on available relief can be found on the disaster relief page on IRS.gov.
Donate to real charities
To help taxpayers donate to legitimate charities, the IRS website, IRS.gov, has a search feature, Tax Exempt Organization Search, that helps users find or verify qualified charities. Donations to these charities may be tax-deductible.
Contribute by check or credit card, never give or send cash, to have a record of the tax-deductible donation.
Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution.
Taxpayers suspecting fraud by email should visit IRS.gov and search for the keywords “Report Phishing.” More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.”
IR-2018-131, June 4, 2018
WASHINGTON — The Internal Revenue Service (IRS) today announced that it will waive certain late-payment penalties relating to the section 965 transition tax, and provided additional information for individuals subject to the section 965 transition tax regarding the due date for relevant elections.
The IRS explained the relief in three new FAQs, posted today on the agency’s tax reform page. These supplement 14 existing questions and answers that provide detailed guidance to taxpayers on reporting and paying the tax.
Section 965 of the Internal Revenue Code, enacted in December 2017, imposes a transition tax on untaxed foreign earnings of foreign corporations owned by U.S. shareholders by deeming those earnings to be repatriated. Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5 percent rate, and the remaining earnings are taxed at an 8 percent rate. The transition tax generally may be paid in installments over an eight-year period when a taxpayer files a timely election under section 965(h).
In general, the questions and answers indicate that:
In some instances, the IRS will waive the estimated tax penalty for taxpayers subject to the transition tax who improperly attempted to apply a 2017 calculated overpayment to their 2018 estimated tax, as long as they make all required estimated tax payments by June 15, 2018.
	 
For individual taxpayers who missed the April 18, 2018, deadline for making the first of the eight annual installment payments, the IRS will waive the late-payment penalty if the installment is paid in full by April 15, 2019. Absent this relief, a taxpayer’s remaining installments over the eight-year period would have become due immediately. This relief is only available if the individual’s total transition tax liability is less than $1 million. Interest will still be due. Later deadlines apply to certain individuals who live and work outside the United States.
	 
Individuals who have already filed a 2017 return without electing to pay the transition tax in eight annual installments can still make the election by filing a 2017 Form 1040-X with the IRS. The amended Form 1040 generally must be filed by October 15, 2018.
See the FAQs for details. For more information about the transition tax and other tax reform provisions, visit IRS.gov/taxreform.
For Treasury media inquiries on this matter please contact Press@treasury.gov or 202-622-2960.
IR-2018-130, June 4, 2018
WASHINGTON — The Internal Revenue Service is reminding tax professionals that reduced cost “early bird” registration for all five 2018 IRS Nationwide Tax Forums ends June 15 at 5 p.m. Eastern time.
IRS hosts forums to interact with tax professionals and provide the latest information on federal and state tax issues. Attendees who register at www.irstaxforum.com can qualify for the special low rate. The standard rate of $255 starts after 5 p.m. Eastern time June 15 and goes until two weeks before each location’s event. Attendees registering less than two weeks before a forum or on-site will pay $370.
IRS Nationwide Tax Forum dates and locations are:

July 10 – 12, Atlanta, Ga.


July 17 – 19, National Harbor, Md. (Washington, D.C.)


Aug. 7 – 9, San Diego, Calif.


Aug. 21 – 23, Chicago, Ill.


Sept. 11 – 13, Orlando, Fla.

Up to 18 continuing education credits may be available for enrolled agents, certified public accountants,  Annual Filing Season Program participants, certified financial planners and other tax professionals. Seminars and workshops presented by experts from the IRS and partner organizations will range from data security and identity theft prevention to future IRS digital services and more.
The Nationwide Tax Forums also offer tax professionals with unresolved client cases the opportunity to meet face-to-face with IRS representatives in the Case Resolution Program. To schedule an appointment, visit the case resolution table at the forum on Monday or go directly to the case resolution room during the three-day event. To expedite appointment scheduling, bring an original Form 2848PDF and a completed Nationwide Tax Forum Case Data SheetPDF. Be sure to bring any supporting documents to Case Resolution to assist in expediting cases. The program is for client cases only.
Find out more at the 2018 IRS Nationwide Tax Forums.
IR-2018-156, July 30, 2018
WASHINGTON — The Internal Revenue Service and Department of the Treasury today announced their intent to issue regulations on three recent tax law changes affecting popular 529 education savings plansPDF.
Notice 2018-58PDF, addresses a change included in the 2015 Protecting Americans From Tax Hikes (PATH) Act, and two changes included in the 2017 Tax Cuts and Jobs Act (TCJA). Taxpayers, beneficiaries, and administrators of 529 and Achieving a Better Life Experience (ABLE) programs can rely on the rules described in this notice until the Treasury Department and IRS issue regulations clarifying these three changes.
Tuition refunds
The PATH Act change added a special rule for a beneficiary of a 529 plan, usually a student, who receives a refund of tuition or other qualified education expenses. This can occur when a student drops a class mid-semester. If the beneficiary recontributes the refund to any of his or her 529 plans within 60 days, the refund is tax-free.
The Treasury Department and the IRS intend to issue future regulations simplifying the tax treatment of these transactions. Re-contributions would not count against the plan’s contribution limit.
K-12 education
One of the TCJA changes allows distributions from 529 plans to be used to pay up to a total of $10,000 of tuition per beneficiary (regardless of the number of contributing plans) each year at an elementary or secondary (k-12) public, private or religious school of the beneficiary’s choosing.
Rollovers to an ABLE account
The second TCJA change allows funds to be rolled over from a designated beneficiary’s 529 plan to an ABLE account for the same beneficiary or a family member. ABLE accounts are tax-favored accounts for certain people who become disabled before age 26, designed to enable these people and their families to save and pay for disability-related expenses.
The regulations would provide that rollovers from 529 plans, together with any contributions made to the designated beneficiary’s ABLE account (other than certain permitted contributions of the designated beneficiary’s compensation) cannot exceed the annual ABLE contribution limit -- $15,000 for 2018. For more information about other TCJA provisions, visit IRS.gov/taxreform.
IR-2018-155, July 25, 2018
WASHINGTON — The Internal Revenue Service today announced its Office of Professional Responsibility (OPR) reached a settlement agreement including a monetary penalty with a tax practitioner for violating professional rules of conduct set forth in Circular 230 PDF. His firm also accepted responsibility for knowing the practitioner engaged in misconduct in attracting clients with outstanding collection issues.
The practitioner agreed to five years of probation and a 12-month suspension of practice before the IRS if the probation is violated. The firm agreed to a monetary penalty based on a percentage of the gross income from the misconduct.
"Monetary penalties are generally not part of Circular 230 cases but in this situation, we concluded it provided a way to limit the practitioner's ability to profit from his misconduct," said Stephen Whitlock, Director of OPR. "A five-year probationary period with the threat of losing practice privileges before the IRS should send a strong warning to anyone tempted to mislead taxpayers with false claims."
"Circular 230" refers to Treasury Department Circular No. 230. This publication establishes the rules governing those who practice before the IRS, including attorneys, Certified Public Accountants (CPAs) and Enrolled Agents (EAs).
Regarding any IRS matter, Circular 230 prohibits tax practitioners from using public or private communication that contains false, fraudulent, coercive, misleading or deceptive statements. It also prohibits practitioners from using false or misleading solicitations to procure business.
In this case, the practitioner created false advertising designed to mislead potential clients to believe the firm successfully helped thousands of taxpayers and employed multiple attorneys, enrolled agents, CPAs and former IRS employees. In fact, the practitioner is an enrolled agent and the only Circular 230 practitioner at the firm.
The false advertising was also intended to mislead potential clients to believe that hiring a private firm was virtually their only hope of resolving their tax issues due to alleged widespread misconduct by IRS employees. The advertising also falsely inflated the chances of tax relief for clients by inflating the percentage of clients receiving offers in compromise (OIC) and claiming none of these OICs were above a small percentage of outstanding taxes due.
Settlement agreements are common in Circular 230 cases when the practitioner acknowledges a violation and commits to tangible actions to prevent future violations. The level of sanction imposed in this case reflects the practitioner’s cooperation with OPR’s inquiry and corrective action taken by the practitioner. The settlement agreement includes authorization for disclosures made in this press release.
In general, only attorneys, CPAs, EAs, enrolled actuaries and enrolled retirement plan agents may represent clients in proceedings before the IRS. IRS.gov has more on OPR, how to become an EA and how unenrolled return preparers can participate in the Annual Filing Season Program.
IR-2018-154, July 25, 2018
WASHINGTON – The Internal Revenue Service today announced its Office of Professional Responsibility (OPR) censured a tax practitioner for violating conflict of interest rules under Circular 230.
"OPR is committed to sanctioning tax practitioners governed by Circular 230 who do not live up to those ethical standards," said Stephen Whitlock, Director of OPR. "Sanctions reflect the nature of the misconduct, impact on taxpayers and an individual's fitness to practice before the IRS."
"Circular 230" refers to Treasury Department Circular No. 230PDF. This publication establishes the rules governing those who practice before the IRS, including attorneys, Certified Public Accountants (CPAs) and Enrolled Agents (EAs).
 
The practitioner was retained by a client to take specific actions as required by a settlement agreement executed between the client and a third party. The settlement agreement directed transfers from the client to the third party. The practitioner was aware of the terms of the agreement.  The practitioner knowingly provided misleading information to the third party, upon which the third party relied. Such reliance and resulting harm to the third party was foreseeable. By knowingly providing misleading information, the practitioner breached a duty of care owed to the third party.
Circular 230 prohibits practitioners from representing a client if the representation involves a conflict of interest. A conflict of interest exists if there is a significant risk that the representation of one or more clients will be materially limited by the practitioner’s responsibilities to another client, a former client, a third party, or by a personal interest of the practitioner.
Persons censured by the IRS are listed in the Internal Revenue Bulletin. Censure is a public reprimand. Unlike disbarment or suspension, censure does not affect an individual's eligibility to practice before the IRS.
The level of sanction imposed in this case reflects that the practitioner cooperated with OPR’s inquiry into the conduct.  A settlement agreement between the OPR and the practitioner includes authorization for the disclosure made in this press release.
In general, only attorneys, CPAs, EAs, enrolled actuaries and enrolled retirement plan agents may represent clients in proceedings before the IRS. IRS.gov has more on OPR, how to become an EA and how unenrolled return preparers can participate in the Annual Filing Season Program.
IR-2018-153, July 25, 2018
WASHINGTON — The Internal Revenue Service today reminded owners of most heavy highway vehicles that the time to file Form 2290, Heavy Highway Vehicle Use Tax ReturnPDF, began July 1, 2018.
The highway use tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. This generally includes large trucks, truck tractors and buses. The tax is based on the weight of the vehicle and a variety of special rules apply. These special rules are explained in the instructions to Form 2290PDF.
In 2018, the IRS expects to receive almost 800,000 Heavy Highway Vehicle Use Tax Returns. Though some taxpayers have the option of filing Form 2290 on paper, taxpayers with 25 or more taxed vehicles must e-file Form 2290. Returns must be filed and tax payments made by Aug. 31, 2018, for vehicles used on the road during July.
The IRS encourages all owners to take advantage of the speed and convenience of e-file and paying any tax due. There is no need to visit an IRS office because the form can be filed and any required tax payment can be made online. Visit IRS.gov for a list of IRS-approved e-file providers and to find an approved provider for Form 2290 on the 2290 e-file partner’s page.
Generally, e-filers receive their IRS-stamped Schedule 1 electronically minutes after filing. They can then print the Schedule 1 and provide it to their state department of motor vehicles, without visiting an IRS office.
For those who want face-to-face service, all IRS Taxpayer Assistance Centers now operate by appointment and taxpayers can call 844-545-5640 to schedule one. See the Taxpayer Assistance Center page on IRS.gov for details.
For more information about the highway use tax, visit the Trucking Tax Center at IRS.gov/truckers.
IR-2018-152, July 24, 2018
WASHINGTON — Tax professionals wishing to attend the IRS Nationwide Tax Forum in Chicago can save $115 by registering by Aug. 7, according to the Internal Revenue Service.
The Chicago IRS Nationwide Tax Forum will take place Aug. 21 to 23.
Enrolled agents, certified public accountants, certified financial planners, Annual Filing Season Program participants and other tax professionals can register at the standard rate of $255 through Aug. 7. Attendees registering after that date or on-site will pay $370.
Seminars and workshops
Tax professionals attending a 2018 Tax Forum can earn up to 18 continuing professional education credits. They will get the latest information on federal and state tax issues presented by experts from the IRS and partner organizations in a wide variety of seminars and workshops. Seminar topics include tax reform, cybersecurity and collection.
Case Resolution Program
The Nationwide Tax Forums offer tax professionals with unresolved client cases the opportunity to meet face to face with IRS representatives in the Case Resolution Program. To schedule an appointment, visit the case resolution table at the Forum or go directly to the case resolution room during the three-day event. A Forum attendee must bring an original, valid power of attorney for any case he or she wishes to work with the IRS. Tax businesses should bring only one client case per Forum to the Case Resolution Program. Bring a completed Nationwide Tax Forum Case Data Sheet PDFalong with any supporting documents to assist in expediting the case. The program is for client cases only.
Exhibit hall
The Forums also feature a two-day expo with tax and financial businesses offering products, services and expertise designed with the tax professional in mind. Prior years’ presentations are available on IRS.gov.
2018 Tax Forum locations and dates
Other than the Forum in Chicago, the remaining Nationwide Tax Forums scheduled for this year include: San Diego, Aug. 7-9 (sold out) and Orlando, Sept. 11-13. Visit the IRS Nationwide Tax Forum website to register.
Updated February 24, 2020: Form 2555-EZ and its instructions are discontinued for tax years beginning after 2018. Prior year Form 2555-EZ and the instructions are still available on IRS.gov.
IR-2018-173, August 24, 2018
WASHINGTON — Certain U.S. citizens or resident aliens, specifically contractors or employees of contractors supporting the U.S. Armed Forces in designated combat zones, may now qualify for the foreign earned income exclusion.
The Bipartisan Budget Act of 2018, enacted in February, changed the tax home requirement for eligible taxpayers, enabling them to claim the foreign earned income exclusion even if their “abode” is in the United States. The new law applies for tax year 2018 and subsequent years.
This means that these taxpayers, if eligible, will be able to claim the foreign earned income exclusion on their income tax return for 2018 when they file. Under the exclusion, taxpayers can choose to exclude their foreign earned income from gross income, up to a certain dollar amount. For tax year 2018, that dollar amount limit is $103,900.
The foreign earned income exclusion is not automatic. Eligible taxpayers must file a U.S. income tax return each year with either a Form 2555 or Form 2555-EZ attached. These forms, instructions and Publication 54,Tax Guide for U.S. Citizens and Resident Aliens Abroad, will be revised later this year to reflect this clarification.
Foreign earned income is the income a taxpayer receives for performing personal services in a foreign country or countries during a period in which he or she meets both of the following requirements:
His or her tax home is in a foreign country, and
He or she meets either the bona fide residence test or the physical presence test.
Full details on these tests can be found in Publication 54.
Under prior law, many otherwise eligible taxpayers who lived and worked in designated combat zones failed to qualify because they had an abode in the United States. The new law makes it clear that contractors or employees of contractors providing support to U.S. Armed Forces in designated combat zones are eligible to claim the foreign earned income exclusion.
Taxpayers choosing the foreign earned income exclusion cannot take advantage of any other exclusion, deduction or credit related to the excluded income. This includes any expenses, losses or other items that would have been deductible had the exclusion not been claimed.
As in the past, the foreign earned income exclusion is not available to federal employees or members of the military. But service members in combat zones continue to qualify for the combat pay exclusion. See Publication 3 for details.
IR-2018-172, August 23, 2018
WASHINGTON — Today the U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations providing rules on the availability of charitable contribution deductions when the taxpayer receives or expects to receive a corresponding state or local tax credit.
The proposed regulations issued today are designed to clarify the relationship between state and local tax credits and the federal tax rules for charitable contribution deductions. The proposed regulations are available in the Federal Register.
Under the proposed regulations, a taxpayer who makes payments or transfers property to an entity eligible to receive tax deductible contributions must reduce their charitable deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive.
For example, if a state grants a 70 percent state tax credit and the taxpayer pays $1,000 to an eligible entity, the taxpayer receives a $700 state tax credit. The taxpayer must reduce the $1,000 contribution by the $700 state tax credit, leaving an allowable contribution deduction of $300 on the taxpayer’s federal income tax return. The proposed regulations also apply to payments made by trusts or decedents’ estates in determining the amount of their contribution deduction.
The proposed regulations provide exceptions for dollar-for-dollar state tax deductions and for tax credits of no more than 15 percent of the payment amount or of the fair market value of the property transferred. A taxpayer who makes a $1,000 contribution to an eligible entity is not required to reduce the $1,000 deduction on the taxpayer’s federal income tax return if the state or local tax credit received or expected to be received is no more than $150.
Treasury and IRS welcome public comments on these proposed regulations. For details on submitting comments, see the proposed regulations.
Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.
IR-2018-169, Aug. 20, 2018
WASHINGTON — The Internal Revenue Service today said that tax professionals wishing to attend the IRS Nationwide Tax Forum in Orlando can save $115 by registering by Aug. 28. Visit the IRS Nationwide Tax Forum website to register.
The Orlando IRS Nationwide Tax Forum, Sept. 11 – 13, will be the last forum this year.
Enrolled agents, certified public accountants, certified financial planners, Annual Filing Season Program participants and other tax professionals can register at the standard rate of $255 through Aug. 28. Attendees registering after that date or on-site will pay $370.
Seminars and workshops
Tax professionals attending a 2018 Tax Forum can earn up to 18 continuing professional education credits. They will get the latest information on federal and state tax issues presented by experts from the IRS and partner organizations in a wide variety of seminars and workshops. Seminar topics include tax reform, cybersecurity and collection.
Case Resolution Program
The Nationwide Tax Forums offer tax professionals with unresolved client cases the opportunity to meet face to face with IRS representatives in the Case Resolution Program. Tax businesses should bring only one client case per Forum to the Case Resolution Program. To schedule an appointment, visit the case resolution table at the Forum or go directly to the case resolution room during the three-day event. A Forum attendee must bring an original, valid power of attorney for any case he or she wishes to work with the IRS. Bring a completed Nationwide Tax Forum Case Data SheetPDF along with any supporting documents to assist in expediting the case. The program is for client cases only.
Exhibit hall
The Forums also feature a two-day expo with tax and financial businesses offering products, services and expertise designed with the tax professional in mind. Prior years’ presentations are available on IRS.gov.