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Volume 16, Number 2 NMSEA Happenings
N E W M E X I C O S O C I E T Y O F E N R O L L E D A G E N T S , I N C . P O B O X 3 0 9 7 4
A L B U Q U E R Q U E , N M 8 7 1 9 0 - 0 9 7 4 W E B S I T E : N M S E A . N E T
E - M A I L : N M S E A @ H O T M A I L . C O M
NMSEA HAPPENINGS
NMSEA Board:
PRESIDENT: Shelley Barker, EA, NTPI Fellow VICE PRESIDENT: Peter Wanco, EA, NTPI Fellow SECRETARY: Lynne Shupp, EA, RFC TREASURER: Sandra Weidner, EA, ABA, NTPI Fellow DIRECTORS-AT-LARGE: Steven Stauss, EA, NTPI Fellow and Barbara Padilla, EA
NMSEA dedicated phone number (505) 877-1598 & FAX (505) 884-1472
June 14, 2019
NMSEA Meeting: Friday, June 21, 2019
11:30 am at The Golden Corral
5207 San Mateo Blvd, ALB. The Golden Corral charges per person for use of their meeting
rooms. $15
It’s a Great Day to be an EA! Last month, I traveled with fellow EA, Sandy Weidner to Washington DC. We attended the “FLY IN” and went to visit the offices of New Mexico’s Representatives and Senators. Our EA message was 3-fold: 1) IRS Budget Reform: Congress should provide the IRS with a clear objective and then provide it with the necessary funding. 2) Minimum Standards for Paid Tax Preparers: All non-credentialed paid tax preparers should be required to meet minimum standards. These standards should include passing a competency exam, a background check, continuing educational requirements and compliance with ethical standards. 3) Pass the Electronic Signature Standards Act: This bipartisan, fiscally neutral legislation would provide the electronic signature ability for tax-payers to sign Form 2848 (POA) and other disclosure authorization forms. Your Nominating committee has been busy working and recruiting members to be a part of the 2019 – 2021 Board of Directors. We will be accepting nominations from the floor at the June meeting. Richard Wright will be sending out bios of all of the nominees in an e-blast. Elections will be conducted through on-line voting…see page 3 for details. The Installation will be held at our July meeting. I hope to see all of you at our June meeting. Shelley Barker, EA, NTPI Fellow
SPEAKER Eric Oliver, Cost Segregations, Inc "Cost Segregation - not just for big business anymore"
Being an Enrolled Agent is not a job — It is a Profession!
FROM THE EDUCATION COMMITTEE: Lynne Shupp and Barbara Padilla
NMSEA Monthly Meetings
July 19, 2019 Sandra Weidner, EA, ABA, "Due Diligence - the Neverending Story"
August 16, 2019 Troy Scott, EA & Beth Chase, AAMS, “Helping Your Client Save For
Their Future (An Overview of Retirement Plan Choices)
Sept 20, 2019, Peter Wanco, EA, topic TBA Oct 18,2019 Steven Stauss, EA Topic TBA
November 15, 2019 Shelley Barker, EA, NTPI Fellow, “Tax Court Cases”
Important Dates to Note on Your Calendar
October 1-3, 2019 NMSEA 18th Annual Convention. Main speakers will be Kathryn Morgan, EA and Lawrence Zim-bler, EA. Registration form at: https://nmsea.net/workshops-seminars/ . January 10, 2020 NMSEA Federal Update.
Volume 16, Number 2 NMSEA Happenings
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NMSEA May 17, 2019 Monthly Meeting
Michael Albillar, CFP gave an excellent presentation on “Social Security--Answering Client Questions.”
Lynn Shupp and Peter Wanco co-chaired the meeting since Shelley Barker and Sandy Weidner were in Washington, DC, attending the NAEA “Fly-In” and the NAEA APEX (Affiliate President’s Exchange) meeting. We welcomed new member Mike Puccetti, EA, Albuquerque
Wanted - members willing to be President, Treasurer or Member(s) at Large for NMSEA. Term of office is two years. Please contact the nominating committee: Sandra Harstad 350-9559 Barbara Padilla 249-4057 Mary Lois Hulsman 249-0501 Elections will be in June (floor nominations accepted) and installation of officers will be at the July meeting. NMSEA will use ElectionBuddy.com to send out instructions for voting online. Ballot IDs will be your NAEA Member Numbers.
Volume 16, Number 2 NMSEA Happenings
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Volume 16, Number 2 NMSEA Happenings
The IRS Nationwide Tax Forums offer three full days of seminars with the latest word from IRS leadership and experts in the fields of tax law, compliance and ethics. July 9 - 11: Gaylord National Harbor in National Harbor, MD (Washington, DC) July 23 - 25: Hyatt Regency in Chicago, IL August 6 - 8: Hyatt Regency in New Orleans, LA August 13 - 15: Hyatt Regency in Orlando, FL September 17 - 19: Town and Country Resort in San Diego, CA View seminars such as: 2019 Tax Changes Cybersecurity for Tax Professionals and CPAs Helping You and Your Clients Steer Clear of the Latest Frauds and Swindles One Year Later...Tax Cuts and Jobs Act (TCJA) Due Diligence Update, and more. Questions? Contact the IRS Tax Forum Team
Phone: (202) 495-2919 Fax: (202) 403-3871 [email protected]
Educational Opportunities
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The IRS Tax Forum Registration is open, and NAEA Members receive $10 off their registration by using the following Partner Association Code: 2019NAEA#@ Visit www.irstaxforum.com/index to register today! Join your colleagues for three days of informative educa-tion sessions, training, and networking opportunities fea-turing a full agenda of the latest tax law information and exhibits of the latest products and services for your busi-ness needs. The Partner Association Code discount is applicable to early bird registration ONLY. Early bird registration ends June 15, 2019.
Volume 16, Number 2 NMSEA Happenings
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IRS, Treasury unveil proposed W-4 design for 2020 IR-2019-98, May 31, 2019
WASHINGTON –Today the Internal Revenue Service issued a draft of the 2020 Form W-4, Employee's Withholding Allowance Certificate (PDF), that will make accurate withholding easier for employees starting next year. https://tinyurl.com/Draft-2020-Form-W-4
The revised form implements changes made following the 2017 Tax Cuts and Jobs Act, which made major revisions affecting taxpayer withholding. The redesigned Form W-4 no longer uses the concept of withholding allowances, which was previously tied to the amount of the personal exemption. Due to changes in the law, personal exemptions are currently not a central feature of the tax code.
“The new draft Form W-4 reflects important feedback from the payroll community and others in the tax community,” said IRS Commissioner Chuck Rettig. “The primary goals of the new design are to provide simplicity, accuracy and privacy for employees while minimizing burden for employers and payroll processors.”
The IRS and Treasury collected extensive feedback over the past year while working closely with the payroll and tax community to develop a redesign that best serves taxpayers.
The IRS expects to release a near-final draft of the 2020 Form W-4 in mid-to-late July to give employers and payroll processors the tools they need to update systems before the final version of the form is released in November. To make additional improvements to this initial draft for 2020, the IRS is now accepting comments for 30 days. To facilitate review of this form, IRS is also releasing FAQs about the new design.
The IRS anticipates the related instructions for employers will be released in the next few weeks for comment as well.
The IRS reminds taxpayers that this draft Form W-4 is not for current use, but is a draft of the form to be used starting in 2020. Employees who have submitted a Form W-4 in any year before 2020 will not be required to submit a new form merely because of the redesign. Employers can continue to compute withholding based on the information from the employee’s most recently submitted Form W-4.
For 2019, taxpayers should continue using the current Form W-4 (PDF). The IRS also continues to encourage people to do a Paycheck Checkup as soon as possible to see if they are withholding the right amount of tax from their paychecks, particularly if they had too much or too little tax withheld when they filed their 2018 taxes earlier this year. People with major life changes, such as a marriage or a new child, should also check their withholding.
The IRS cannot respond individually to those who submit comments, but the agency does appreciate the feedback and will consider all comments received.
Volume 16, Number 2 NMSEA Happenings
Register at: https://www.naea.org/national-conference
Educational Opportunities
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The New Business Workshop presented by NM Taxation & Revenue is a comprehensive look at the Combined Reporting System (CRS) for Gross Receipts, Withholding and Compensating Tax programs. We will discuss Non-Taxable Transaction Certificates, Estimated income tax payments for business owners, deductions and exemptions from Gross Receipts, special tax programs and audits. We also present e-file training. In addition to the state CRS we have a volunteer CPA discuss federal tax issues (i.e. reporting forms, Self-Employment Tax and Estimated Tax) and good business practices (i.e. good record-keeping). http://www.tax.newmexico.gov/Businesses/workshops.aspx Albuquerque Mon, July 8, 2019, 8:30 AM - 4:00 PM, Mon, July 15, 2019, 8:30 AM - 4:00 PM Mon, July 22, 2019, 8:30 AM - 4:00 PM (Bank of the West Building, corner of Central Ave and San Mateo Blvd---5301 Central Ave NE – 1st Floor Con-ference Center, Albuquerque 87108) Santa Fe Tues, July 9, 2019 9:00 - 11:00 AM Manual Lujan Building, 1200 South St Francis Drive, Santa Fe Las Cruces Tuesday, July 16, 2019 8:45 - 11:00 AM Taxation & Revenue Building, 2540 El Paseo Bldg #2, Las Cruces For more information, please call 575-528-6100 To register http://www.tax.newmexico.gov/Businesses/workshop-registration.aspx#/CalendarContentonline
Volume 16, Number 2 NMSEA Happenings
Educational Opportunities
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h�ps://nmsbdc.ecenterdirect.com/events?centerid=19
Volume 16, Number 2 NMSEA Happenings
Educational Opportunities
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TxSEA Annual Convention June 27, 2019 – June 29, 2019
EARLY BIRD PRICING EXTENDED THROUGH MAY 26, 2019!!!!!
Our Convention will be held at the Hurst Convention Center Located at 1601 Campus Dr., Hurst, TX 76054-3216. More details https://txsea.org/annual-meeting/
Register Online today to lock in the Early Bird Price! Price includes 18 hours of CE plus 2 hours of Ethics for Enrolled Agents for a total of 20 hours! All registration will be handled ONLINE by clicking:
https://www.regonline.com/registration/Checkin.aspx?EventID=2553219
Registration Deadlines: by 5/26/19 after 5/26/19
Full TxSEA Member: $375 $475
Full NAEA Member: (Non-TxSEA): $400 $500
SouthWest Fest 2019 June 19-21, 2019 • Carefree, AZ
Southwest Fest features lead instructor Alice Orzechowski, CPA, EA as well as local speakers Brandon Keim, LLM, CPA and Lin LeClair, EA. Price includes 14 hrs of CPE plus 2 hours of Ethics. Topics covered include an annual ethics update, tax updates, tax court, alphabet soup A to Z, and a special session on social media.
$425.00 for NAEA members until Saturday, June 15, 2019 $475.00 for NAEA members after June 15, 2019 Includes 2 breakfasts, 2 lunches, breaks, materials
Online Registration: https://events.r20.constantcontact.com/register/eventReg?oeidk=a07eg0ebxda52309ae6&oseq=&c=&ch=
Volume 16, Number 2 NMSEA Happenings
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Welcome aboard to: Mike Puccetti, EA,
Albuquerque.
First Friday IRS Liaison Conference Call with NM, TX & AZ Ellen Briscoe, EA, ATA is our representative. Call is usually the first Friday of the month. June 7, 2019 report is at
pg 12-15. Comments or questions to Ellen at [email protected]
Next edition of IRS Communications at a Glance, will be sent to members by E-Blast.
Senate Passes the Taxpayer First Act The bi-partisan updated https://tinyurl.com/TP-First-Act moved swiftly through Congress and is anticipated to be signed by the President. This updated version removed the provision to codify the Free
File program.
This Act is exciting for tax professionals, as it will:
Establish an IRS Independent Office of Appeals
Establish a private debt collection and special compliance personnel program
Modernize the Internal Revenue Service’s organizational structure
Expand access to IP PINs nationwide
Establish a single point of contact for tax-related identity theft victims
Impose an increased penalty for improper disclosure or use of information by preparers
Develop of an internet platform for Form 1099 filings We applaud Congress’s efforts to improve the IRS’s administrative practices and taking on the long overdue challenge of reforming the IRS so it is better equipped to serve the tax professional and their taxpayer clients.
As we included in our letter submitted to Congress, NATP will continue to advocate for the need for due diligence consistency across all categories of tax preparation; among them would be paid preparers, tax software, artificial intelligence tools and VITA. It is the position of the association that the term paid preparer needs better definition and awareness that it extends beyond the traditional tax professional. https://www.natptax.com/Pages/default.aspx
Volume 16, Number 2 NMSEA Happenings
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Membership renewals to new address: As of December 15, 2018, any renewals mailed to P.O. Box 79411 will be
returned. Please, please, please mail your renewals to our new address:
National Association of Enrolled Agents
PO Box 5277
New York, NY 10008-5277.
Thank you.
NMSEA Annual Pat Jenkins Shred-Fest Albuquerque
Location: BAC Enterprises, 4201 Hawkins Street, NE, ABQ. Date: TBA Time: 10 am to 1 pm Up to 50 pounds of document will be shredded for no charge. Volunteers needed. If you want a postcard template to send to your clients, please contact Shelley Barker, [email protected], 505-298-1744. Again this year, we will be accepting donations of money or school supplies, which will help APS students through the Title I program.
To receive this newsletter, please send your e-mail address to the newsletter editor, Richard Wright, at [email protected] (editor since July 2009)
The NMSEA Happenings is published by the New Mexico Society of Enrolled Agents, Inc, PO Box 30974, Albuquerque, NM 87190-0974 for the benefit of NMSEA members and affiliates. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that neither the publisher nor author is engaged in rendering specific legal, tax or accounting advice or other professional services. If specific advice or other expert assistance is required, the services of a competent professional person should be sought.
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No trees were harmed in the creation of this newsletter. However, a
Volume 16, Number 2 NMSEA Happenings
First Friday Hot Issues Summary –June 7, 2019
We Want You to Know
Tax ReformDon’t forget to check the IRS.gov Tax Reform pages regularly for the latest information.
Changes to Transcript DeliveryThe Internal Revenue Service will stop its tax transcript faxing service June 28 and willamend the Form 4506 series to end third-party mailing of tax returns and transcripts inJuly. See News Release IR-2019-101 for more information. Attend the webinar: June 19, 2 p.m. EDT - Tax Transcripts: Alternatives to Faxing
and Third-Party Mailing.
Enrolled Agent Application and Renewal User Fee IncreaseThe enrolled agent application and renewal user fee increases from $30 to $67 effectiveJune 12, 2019. The IRS will not implement the increased EA user fee until November 1,2019, which is when the next EA renewal period begins. The fee will increase at thattime for both new applications and for renewals.See the final regulations for more information.
Don’t Forget to Update Your IRS e-File ApplicationAuthorized IRS e-file Providers (Providers) should ensure that the IRS has currentinformation by reviewing and updating their IRS e-file Applications. The IRS removesProviders from participation in IRS e-file when it receives undeliverable mail or is unableto contact a Provider.NOTE: Changes submitted on an IRS e-file Application do not change the address ofrecord for a business’ tax records, just as a change to tax records does notautomatically update information on a Provider’s IRS e-file Application.See Publication 3112 IRS e-file Application and Participation.
Corrected Schedule D Tax Worksheet (Form 1040)The 2018 Schedule D Tax Worksheet in the Instructions for Schedule D (Form 1040)contained an error. The tax calculation did not work correctly with the new TCJA regulartax rates and brackets for certain Schedule D filers who had 28% rate gain orunrecaptured section 1250 gain. If you downloaded those instructions before May 16,2019, you should download them again. Because the IRS has already provided thecorrected worksheet to its tax software partners, anyone filing a 2018 return, includingthose with extensions, after May 15, 2019, are not affected by the error. Affectedtaxpayers need not file an amended return with the IRS or call the IRS. The IRS isreviewing returns submitted prior to May 16; more information will be provided about thisreview later.For more information see Error in Tax Calculation in Schedule D Tax Worksheet (Form1040).
First draft of 2020 Form W-4 Now Available for Viewing and CommentsYou can now view the IRS early draft of the 2020 Form W-4. If you have commentsabout this draft of Form W-4, you can submit them to [email protected] should be submitted by July 1, 2019.Draft employer instructions related to this draft form W-4 can be found in DraftPublication 15-T, Federal Income Tax Withholding Methods.For more information see IR-2019-98 IRS, Treasury unveil proposed W-4 design for2020
Regional Practitioner Meetings. Registration OpenJuly 16 – Tyler, TexasJuly 18 – Houston, TexasJuly 25 – Santa Fe, New MexicoAugust 9 – El Paso, TexasAugust 13 – Amarillo, TexasAugust 20 – Corpus Christi, TexasAugust 22 – Edinburg, TexasAugust 22 – Huntsville, Texas
Follow-ups from prior meetings:
Information on IRS.gov Regarding Transcript Delivery to the SORIssue: Practitioners suggested having more information posted to IRS.gov regardingthis new procedure.Response: The following information is posted to IRS.gov: News Release IR-2019-101 for more information. There will be a webinar for tax professionals June 19, 2 p.m. EDT - Tax
Transcripts: Alternatives to Faxing and Third-Party Mailing FS-2018-20, Steps for tax professionals to obtain wage and income transcripts
needed for tax preparation About the New Tax Transcript: FAQs
Action: Let us know what additional information you feel is needed, the type of vehicleyou think would be most helpful (update to existing page, fact sheet, tax tip, newsrelease, other) and any pages where you feel a link to the current information would behelpful.
Transcript Request LimitIssue: Why is there still a limit of only 10 transcripts when they are no longer beingfaxed?Response: The number of pages that can be faxed is limited based on the file size ofthe request and cannot exceed the Outlook Exchange size limit of 10 MB. Due to thelength of time to process each page on the receiving end, a recommended page limit is100 pages. There are no page limitations for delivery to the SOR. See IRM 21.2.3.4.The limitation of 10 transcripts per taxpayer is a policy of Practitioner Priority Services.See IRM 21.3.10.4.4 Transcript Requests.Status: Closed.
Hold Times on Toll-Free NumbersIssue: The practitioner wanted to verify that PPS initiated a policy that the customerservice representative could not be placed on hold for more than 2 minutes. Theypointed out that this could be a real problem if it takes more than 2 minutes to fax in anauthorization or other documentation.Response: IRM 21.1.1.4 indicates that if the caller asks the Customer ServiceRepresentative to hold, the CSR should explain they can hold for no more than twominutes before moving to the next call. However, there is also a note that if the CSRmust receive a fax from the caller, they should verify the fax number, confirm how long itwill take to receive the fax and then return to the caller within that time frame.Status: Closed.
New Issues:
Form 2848 Not Input – Box 6 CheckedIssue: Practitioner submitted a 2848 with box 6 checked and an earlier authorizationattached but the CAF unit returned the authorization.Response: When the IRS records a power of attorney on the CAF system, it generallywill revoke any earlier power of attorney previously recorded on the system for the samematter. If you do not want to revoke any existing power(s) of attorney on file for thesame matter, you should check the box on line 6 and attach a copy of the power(s) ofattorney you wish to retain. (See the instructions for Form 2848.) By same matter, wemean the same year (or period) and tax type.An authorization for 1040 taxes for 2016 would not affect an authorization already on filefor taxes on 2015 because these are not the same matters.If you check the box on line 6 and attach an authorization that covers anything otherthan the same matters on your new authorization, your authorization will not beprocessed.In addition, filing Form 2848 will not revoke any Form 8821 that is in effect. Do notcheck box 6 because you want to retain an authorization submitted on Form 8821.Status: Closed.
Form 2848 Not Accepted – Title of SignerIssue: Practitioners report authorizations not being honored because of the title used bythe taxpayer who signed the Form 2848. For example, the customer servicerepresentative rejected an authorization because the title was missing for a soleproprietor even though the name of the sole proprietorship and the signer were thesame.Response: IRM 21.3.7.5.1 lists the essential elements for Forms 2848 and 8821. If anessential element is missing or incomplete, the authorization is invalid. One of theelements when submitting an authorization for a business account is the title of thesigner. However, it is acceptable for the CAF unit to edit Sole Proprietor as the owner forthe authorization when EIN is valid for Sole Proprietor and the title is missing. Theseauthorizations should get input to the CAF.Action: We will elevate the issue regarding the CSRs not honoring the authorizationsfor this reason.
Status: Open
Authorization Not Accepted - IllegibleIssue: Practitioners report authorizations being returned because they are illegible. Thedocument was legible when they faxed it, is there a problem with IRS printing the faxes?Response: We will look into this issue.Status: Open.
Caller ID on NoticesIssue: Practitioner received a copy of CP 504 – Final Notice – Balance Due with a callerID included under the number to call. He did not need the caller ID when calling thephone number, so he wondered what it was for.Response: The Caller ID number is used with some of our automated systems, such asthe Online Payment Agreement. Power of Attorneys who have filed Form 2848 and areauthorized to represent a taxpayer may use OPA on their client’s behalf. To authorize,the POA must enter; Taxpayer's SSN or ITIN Their Centralized Authorization File (CAF) number, and Either the six-digit Caller ID number from the taxpayer's notice or signature date on
Form 2848For more information on this and other systems that use the Caller ID see IRM 21.2.1.Status: Closed.
Publication Sent with NoticeIssue: Practitioner feels that the publication included with the proposed assessmentmade by a correspondence exam should include information regarding the taxpayer’sright to appeal the decision.Response: Please provide us with a copy of the notice and the number of thepublication.Status: Open
