www.qns.com I LIC COURIER I AUGUST 2019 35
Photos courtesy of Sachyn Mital/MoMI and Warner Bros.
TAX TIPS
CHANGES ARE
COMING TO IRS
BY JOHN SAVIGNANO, CPA
e Taxpayer First Act easily passed Congress on a
bipartisan basis and was signed by the president. It
includes a veritable smorgasbord of ideas on improved
customer service, enforcement easing’s, identity
protection, cybersecurity, modernization, expanded use
of electronic systems and much more. Some of the
provisions are as follows:
An independent oce of appeals within IRS to resolve
controversies for most taxpayers.
An IRS re-design. e Service is mandated to develop its
own reorganization plan that meets certain parameters
and submit it to Congress by September 2020. IRS is
mulling a new division dedicated to tax practitioners.
On taxpayer service, IRS is tasked with craing a
customer service strategy. Low incomers seeking oers in
compromise to settle tax debts won’t have to pay a fee. IRS
must give advance notice before closing an in-person
taxpayer assistance center.
Among the enforcement and collection changes: e
agency is prohibited from turning over tax debts of
low-income individuals to private tax-debt collectors.
Taxpayers will get timely notice when the Revenue Service
contacts a third party, such as a bank or employer.
Controversial asset seizures will be reined in.
Two changes aect nonprots: Non-lers get relief on
exemption revocations. Exempt groups that fail to le
their annual Form 990 returns for two consecutive years
will get a letter from IRS notifying them that the agency
hasn’t received the lings and that not ling for a third
straight year will cause their exemption to be revoked. All
exempt groups have to electronically le their annual
Form 990s, except that smaller organizations get an
additional two years to comply.
Ideas to help victims or potential victims of tax identity
the are included. All individuals can request a special
password to use before ling returns. Individuals will be
alerted to suspected identity the. IRS will notify them
when it detects an unauthorized use of their or any
dependents identity. Identity the victims will be assigned
an IRS employee to track their case.
e ne for ling late returns is going up. Currently, the
minimum penalty for returns led 60 or more days aer
the ling due date is the lesser of $215 or 100% of the
amount required to be shown as tax on the return. Under
the new law, the $215 gure is increased to $330 for
returns required to be led aer 2019.
John Savignano is a partner with Savignano Accountants
& Advisors located at 47-46 Vernon Blvd., Second Floor, in
Long Island City. If you have any questions or require
additional information, please call John at 718-707-0955.
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