In this blog, we’ll share insights from these sessions and provide resources to help taxpayers and tax professionals navigate common issues.
Tax Return Preparation and Processing, and Notices/Letters Questions
Update 11/21/2023: IRS Issues Revised Form 1099-K Reporting GuidanceOn November 21, 2023, the IRS issued Notice 2023-74, delaying the Form 1099-K reporting requirement until 2025. The thresholds remain until December 31, 2023, with changes for the 2024 tax year. The reporting rules stay the same; taxpayers must track and report taxable income through third-party networks.
Incorrect Form 1099-K: Addressing Concerns
There’s confusion about the new reporting requirements for Form 1099-K. The American Rescue Plan Act of 2021 lowered the minimum reporting threshold to $600. Despite resources on IRS.gov, questions persist. If you receive an incorrect Form 1099-K, contact the filer for correction or offset reported amounts on your tax return.
Identity Theft: A Persistent Challenge
Identity theft poses challenges, with victims facing extended wait times for resolution. Tax professionals also encounter authentication issues for clients flagged for potential identity theft. TAS advocates for faster relief and urges the IRS to assist victims with non-tax-related impacts. Check the IRS Operations page for updates on resolution times.
Protect Against Identity Theft with an IP PIN
To prevent fraud, obtain an Identity Protection PIN (IP PIN). This six-digit number safeguards against someone using your Social Security number for fraudulent tax returns. Get an IP PIN through the online tool starting in mid-January through mid-November.
Deceased Taxpayers and Filing Delays: What You Need to Know
Issues arise with taxpayers incorrectly marked as deceased and delays in processing returns for deceased individuals. Resolve errors by following specific steps outlined in the TAS Tax Tip. Form 1310 helps claim refunds for deceased taxpayers.
Online Services Challenges: Improving Access for Tax Professionals
Efficient online accounts are vital for tax professionals. Challenges with online signature PIN authentication for Form 941-X were noted. The IRS is working on improving digital access for businesses with the Business Tax Account (BTA). Enhancements to the Tax Pro Account offer more functionality, with ongoing improvements expected.
Submit a Power of Attorney (POA) Online: Simplifying the Process
Addressing the backlog in processing Forms 2848 and 8821, the IRS introduced an online portal and Tax Pro Account. While initially underutilized, recent updates enhance Tax Pro Account features. Stay informed about the latest improvements for a comprehensive, robust Tax Pro Account.
Conclusion: Collaborate for a Better Tax System
At Crystal Clear Tax, we understand the unique challenges faced by single-mom entrepreneurs and individuals across diverse industries who seek efficient financial management. Tailoring our expertise to the specific needs of each client, we take pride in offering a comprehensive suite of services.
From meticulous accounting and bookkeeping to personalized financial advising, we ensure that our clients receive the support they need. Our dedicated tax services cater to both individuals and corporations, providing clarity and expert guidance in navigating the intricacies of the tax landscape.
Whether you’re a single mother juggling multiple responsibilities or a business owner striving for efficient financial solutions, Crystal Clear Tax is your trusted partner in achieving financial well-being.
