IMRS Hot Issues
Help for Victims of Hurricane Sandy
The IRS is providing help to the victims of Hurricane Sandy. Special tax relief and assistance is available to taxpayers in the Presidential Disaster Areas. The IRS is monitoring the situation closely to resolve potential tax administration issues as they are identified. The IRS often updates its information on disaster relief efforts related to Hurricane Sandy. For the latest news releases, legal guidance and other resources check the Help for Victims of Hurricane Sandy page on IRS.gov.
Notice Generation for Separated Taxpayers (IMRS Issue 12-0001699)
When a secondary taxpayer submits Form 8822, Change of Address, and checks off the “separate residence” box, the IRS establishes a second address for the joint account under IRM 3.13.5.53. If the IRS receives a joint return less than 52 weeks after the establishment of the separate spousal address, any notices will be issued to both the primary and secondary addresses. If the IRS receives a joint return more than 52 weeks after the secondary address was established, the address for both spouses will be updated based on the address contained on the return. To maintain separate spousal addresses, a Form 8822 must be filed every year.
IRPAC and IRSAC Reports Released
The Information Reporting Program Advisory Committee (IRPAC) released its 2012 Report, which includes recommendations pertaining to a number of information reporting issues such as cost basis reporting for debt and options, the new Form 1099-K, the Foreign Account Tax Compliance Act, information return corrections and other tax administration issues. The 2012 Information Reporting Program Advisory Committee Public Report may be found on IRS.gov – search “IRPAC report.”
The Internal Revenue Service Advisory Council (IRSAC) also issued its report. IRSAC’s primary purpose is to provide an organized public forum for senior IRS executives and representatives of the public to discuss relevant tax administration issues. Based on its findings, IRSAC made several recommendations in its 2012 report on a broad array of issues and concerns, including streamlining the audit process and improving the lien withdrawal process. Search “IRSAC report” on IRS.gov for more information.
Lockbox Address Changes for 2013
Check out important changes to the lockbox addresses on IRS.gov. As part of a continuing effort to streamline the lockbox program, the IRS will close lockbox locations in Atlanta, Ga. and St. Louis, Mo., and open a new location in Louisville, Ky. These changes take effect Dec. 31 and will affect individual taxpayers in nine states and business taxpayers in 26 states. For more information, see Changes to Lockbox Addresses Could Affect the Clients You Serve on IRS.gov.
Preparers Suspected of Filing Inaccurate EITC Claims to Receive Warning Letters
During October and November 2012, the IRS sent letters to preparers suspected of filing inaccurate EITC claims. The letters pinpoint the primary issues identified on the returns, discuss the consequences of filing inaccurate claims for EITC and inform the preparer IRS will continue to monitor the types of claims for EITC they file. Check out EITC Central on IRS.gov for more information on IRS compliance efforts and how to avoid penalties.
Third Party Reporting Information Center
Visit the Third Party Reporting Information Center on IRS.gov for forms, instructions and background information related to tax reporting on merchant payment cards and cost basis reporting on securities sales. These regulations, notices and FAQs provide details on the implementation of Section 6050W of the Housing Assistance Tax Act of 2008.
