Category: News

In early May tax practitioners are typically easing back into work after a well-deserved break. For many reasons, that is not the case this year.  

For those who have seen “Stranger Things” (no spoilers for season 3, please!), you may feel like you’re in the Upside Down. If you haven’t seen the TV show, think alternate parallel universe. And not in a good way.

A global pandemic has us grappling with what it means for our personal and work lives. There was unprecedented filing relief extended to all types of income tax returns due between April 1 and July 15. Legislation led to new types of credits, as well as many other relief measures. This included the Small Business Administration’s Paycheck Protection Program, which has tax practitioners brushing up on many new rules. A lot of practitioners struggle with remotely serving clients and working from home because of all the potential distractions that come with it.

But time marches on. Clients still need help to understand how to take advantage of the available tax relief options. They’ll want your help with strategic business planning. Tax returns still must be either filed by July 15 or extended to the fall.

Additional tax legislation is possible. You may have missed some key elements during the flurry of the past month. In that case, you need to get up to speed with the changes for your clients. For example, do you know how and when it’s beneficial to take retroactive 100% bonus depreciation on qualified improvement property? (Read more on this.)

We want to help tax practitioners strategically plan as we move past an uncommon April. And we need your help with this.

Please take a few minutes to take our survey and let us know how you’re doing. What were your main pain points during the past few months? What are your expectations for the near future? What are some of the better moments that you hope will stay with you once COVID-19 is behind us? We want to hear from you.

We’ll share these survey results on the May 7 and May 12 webcast “Tax Practice Quarterly: The Evolving Tax Practice in the Midst of a Pandemic.” This webcast is free for Tax Section members and offers two CPE credits. Two seasoned practitioners will share advice on how you can evolve your tax practice. That could mean offering a new line of services, restructuring your billing policies or incorporating some work-from-home lessons into your planning.

We know this has been a challenging time. Whatever your experience, there’s no question it’s been an upside-down tax season. Regardless of the due date postponement for many returns, clients may need their returns completed quickly –– perhaps for PPP loan applications, cashflow purposes for refunds or several other reasons. As you think through what the rest of 2020 means for you as a tax practitioner, join us May 7 to hear about ways you can evolve as a firm and as a professional.

April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants

     

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When life is busy, it’s easy to neglect our well-being. We may think, “I don’t have time” or “I’m too tired,” but what’s more important than health? We can’t give our best to anything or anyone if we don’t make time for self-care.

Simple truth: The more you invest in yourself, the more your body and mind will give back to your work, your relationships and beyond.

According to Ayurveda, one of the world’s oldest medicinal practices, a primary component of health that is often overlooked is how we treat our five senses: hearing, sight, smell, taste, touch. In a standard work day, most of us are misusing or abusing our senses; this can exacerbate our stress levels, especially when the body and mind are fatigued. If we learn to use our five senses, we uncover steadiness and energy boosts.

Engage the senses to reduce stress and accomplish more.

Hearing

What we hear impacts how we think and the words we say. Think to the last time someone vented to you or unloaded their anger on you. Did you start to also use aggressive language or assertive behavior? Instead of listening to gossip, rumors or harsh words, consider listening to sounds that are more uplifting, like peaceful, instrumental music. Consider meditation or enjoying moments of silence. Practice avoiding office negativity and disconnecting from the daily grind.

Sight

What we see plays a large role in how we perceive daily life. When we’re surrounded by the walls of a cubicle or home office, we can feel underwhelmed. When we’re driving in rush hour traffic, we can feel overstimulated. We are impacted by what we see.

Instead of watching shows or movies with negative images (e.g., murder mysteries or horror films) try watching light-hearted films. If you work in an office with fluorescent lights or limited views of the outside, walk outside or sit by a window each day. If this isn’t possible, hang a photo of nature that nourishes your eyes during conference calls and stretch breaks. If you have to work late, take a sunset break to watch the incredible light show that Mother Nature offers daily. At least one hour before bed and one hour after waking, avoid looking at screens — computer, TV and phone.

Smell

Our sense of smell plays an important role in our health. Many of us can immediately recall memories based on smell. Nurture this powerful sense by smelling essential oils of sandalwood or lavender for calming effects; or citrus or peppermint for energizing effects.

Go outside intermittently to take deep breaths of fresh air. Getting outside can reinvigorate your energy just by smelling fresh grass and clean air.

Avoid working by smells that are displeasing — chemicals, cleaning products, garbage, and candles or lotions with a scent you don’t like.

Taste

Sense of taste influences cravings, and during a busy time it can be harder to eat healthy food. Sugar spikes from snacks impact energy levels, digestion and productivity. To avoid excessive snacking or missing meals, engage in all six tastes daily: sweet, salty, sour, bitter, pungent and astringent.

Chewing at least 20 times before swallowing encourages us to eat slowly and enjoy the tastes. The real flavor of food comes from the experience, not mindlessly eating. Avoid multi-tasking while eating and “inhaling” your food.

Touch

Touch is a powerful way to calm nerves and release stress. According to the medical literature of Ayurveda, healthy touch can be equated to love. Through the lens of Ayurveda, if we think of a mother’s touch or cuddling with a loved one, this physical intimacy goes far beyond feeling nice.

Conversely, when we touch our computers and phones, we’re bringing electric and magnetic fields (EMFs) into our bodies. EMFs can cause us to feel anxious and overwhelmed.

To practice self-care through touch, hug someone every day, use a weighted blanket to promote feeling of security and consider the Ayurvedic Self-Massage. Charaka Samhita states, “By using oil massage daily, a person is endowed with positive touch, trimmed body parts and becomes strong, charming and least affected by old age.”

Practice simple techniques to improve mood, energy and well-being.

Increase your health and well-being simply by nourishing your senses. You don’t have to overhaul your daily routines to feel better. Start with small modifications that have the power to transform your entire life when made consistently.

If you continue down a path of micro-improvements, you will stress less and accomplish much more, regardless of your workload or demanding schedule.

Transform burnout and live a life you love.

Lauren Baptiste is an Executive Wellness Coach, breaking-through the effects of workplace burnout. She founded Acheloa Wellness, a firm that empowers ambitious, hard-working women with the tools and techniques to be successful in today’s world. Lauren is practiced in Ayurveda, hormonal health and healing arts and is also a CPA with more than 10 years of experience in the corporate environment. 

     

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With remote working becoming the norm, who hasn’t had to take a video call for work? Meetings, check-ins and briefings are all happening on video apps now, but a backdrop of piled-up laundry, milling family members or unwashed dishes probably isn’t what you want to share with your colleagues while discussing the latest financial report.

What can you do about it? Use one of our new Zoom virtual backgrounds. These easy-to-implement backdrops cover up everything behind you. We always want finance professionals to look their best, so we’ve created a range of options to make working from home a little more interesting. Just right-click and save!

Sleek and sophisticated 1

Sleek and sophisticated 2

Durham: US home of the Association of International Certified Professional Accountants

London: UK home of the Association of International Certified Professional Accountants

Kuala Lumpur: Malaysia home of the Association of International Certified Professional Accountants

Cozy conference room

Snug bookcase corner

Old fashioned calculator

Vintage accounting ledger

The origins of accounting

Head full of numbers

Deskbound office worker

DIY moneymaker in the house

Leather upholstered chair in purple

Leather upholstered chair in green

Leather upholstered chair in yellow

Stuffed leather chair in purple

Stuffed leather chair in green

Stuffed leather chair in brown

Celebrate the Father of Accounting and Bookkeeping

We’re committed to helping you through this time of uncertainty. To access our latest news and resources, please visit our COVID-19 Resource Center.

Association Staff

     

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This is the most unusual tax season on the books — April 15 came and went and yet tax season isn’t over. Over the past several weeks, we’ve heard from members about state and local tax filing, payment and administrative issues. We’ve shared 11 recommendations with the state CPA societies and encouraged them to consider these with their state and local tax authorities.

A recap on the past couple of months 

As you know, over the past two months, the AICPA® has been busy advocating on your behalf and working with Congress. We successfully urged Treasury and the IRS to provide immediate filing and payment relief, along with broader relief for all returns. This led to a delay in federal filings and payments until July 15 for returns due from April 1 to July 15. Our teams continue to advocate and monitor the situation, and we will keep you informed as developments arise.

To support members and state CPA societies, we track guidance from the state tax authorities, develop charts on federal and state due dates and identify various example states in our Recommendations for Administrative, Filing and Payment Relief for State and Local Taxes during the Coronavirus Pandemic.  We shared this with state CPA societies to consider at the state and local level.

All 41 states with a personal income tax moved their April 15 filing and payment deadlines later. Forty states (and DC) changed their April 15 filing and payment deadline to July 15 for individual income taxes, along with some other entities. We had a cliff-hanger with New Jersey as the last state to make that change. The governor signed the legislation April 14, extending the April 15 filing and payment deadlines to July 15. Five states (and Puerto Rico) changed their April 15 individual income tax filing and payment deadline to a date other than July 15. They are Iowa (July 31), Hawaii, (July 20), Idaho (June 15), Mississippi (May 15), Virginia (filings May 1, June 1 payments) and Puerto Rico (June 15). 

States continue to issue further guidance, including FAQs and notices of additional relief and extensions. Links and details on the latest information are in our chart on state tax filing guidance on coronavirus.  

Our recommendations

Speaking of additional relief, the unique and unprecedented nature of this crisis makes many deadlines and administrative practices that state and local tax administrators traditionally require unworkable. To help state CPA societies, the AICPA shared the following 11 administrative, filing and payment relief issues for state and local taxpayers relating to the coronavirus pandemic.

Specifically, state CPA societies may want to consider suggesting that, during the pandemic, their state and local tax authorities:

1. Permit businesses to adhere to work locations for state and local tax purposes during the pandemic and allow businesses the option to use these employees’ work locations for payroll withholding, nexus and apportionment purposes while such telework requirements are in place.
2. Delay until July 15 all state and local income and franchise filing and payment and estimated tax payment deadlines originally due March 1 through July 15.
3. Delay until July 15 all state and local sales and use taxes, property taxes, business activity taxes and other tax filing and payment deadlines.
4. Waive interest and penalties and provide broad reasonable cause relief for late payment and late filing for returns originally due March 1 through July 15 that are filed by July 15 and other delays and late actions as a result of the pandemic.
5. Permit electronic fund transfers for payments ­with no additional fees.
6. Permit electronic images (scanned or photographed) of signatures.
7. Permit electronic filing and email transmission of documents and returns (including allowing an email of a PDF of a return).
8. Suspend any requirement to send items and returns via certified mail.
9. Extend the time to file a refund claim for a previous tax year with a statute of limitations that expires from March 1 until 90 days after the end of the governor’s declared state of emergency in the state.
10. Provide taxpayers with extensions until 90 days after the end of the governor’s declared state of emergency in the state for audit, exams, appeal deadlines, protest matters, refund claims for previous years and stop during the pandemic all enforcement type activity and automated notices as many of these situations require time-sensitive response.
11. Provide an exemption from the sales and use tax for donated products, including donations of personal protective equipment (PPE) to a charity or governmental entity. 

Lend a hand

If you want to help with these issues, consider contacting your state CPA society to assist. They are working with their state and local tax authorities to address these issues to benefit taxpayers, businesses and governments and will continue advocating over the next few months as taxpayers in the state adapt to the limitations this disruption presents.

Resources available to you

In addition to the resources listed above, you may also be interested in the following to help you with coronavirus tax filing issues during this time:

• AICPA Coronavirus COVID-19 Tax Policy & Advocacy Resources
• AICPA Coronavirus Tax Resources
• AICPA Coronavirus (COVID-19) Resource Center
• IRS Coronavirus and Economic Impact Payments: Resources and Guidance

We hope that everyone stays healthy and continues to work well remotely with clients and state tax authorities while we get through this extended tax season coronavirus pandemic.

Eileen Sherr, CPA, CGMA, M.T., Senior Manager – AICPA Tax Policy & Advocacy, Association of International Certified Professional Accountants

     

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The U.S. government is issuing stimulus checks to every eligible American. But for millions of people of low socioeconomic status (SES) — those most in need of the stimulus checks — there’s an extra step.

The IRS created an online form for people who don’t normally file a tax return, known as non-filers. It’s a free and easy way to provide basic information so people of low SES can receive their economic impact payment as soon as possible. Do you know someone who needs help getting their stimulus check? On their own or with the aid of a trusted person, the individual can visit IRS.gov and select the non-filer application.

Who is eligible to use the tool?

This free resource is designed for:

• People whose gross income from their 2018 or 2019 federal income tax return was under $12,200 for single filers or $24,400 for married couples
• People who aren’t required to file a 2018 or 2019 federal income tax return for other reasons
• People who receive Social Security, Social Security Disability Insurance (SSDI) or Railroad Retirement benefits and have children younger than 17

How long does it take?

The process only takes a few minutes to complete.

What are the next steps?

1. Click or tap on “Non-Filers: Enter Payment Info” on irs.gov.
2. Provide your name, address, Social Security number and that of dependents.
3. If available, enter bank account information. This will allow the IRS to deposit directly into the account; otherwise, payment will be mailed to the address provided.

Who else should I share this information with?

Help your community by sharing this information with individuals, organizations and not-for-profits that interact with people of low SES:

• Your local chamber of commerce
• Religious associations and congregations
• Nursing homes
• Homeless shelters and other organizations that support non-filers

Sharing this information with those in need is how you can help make an impact during these unprecedented times.

Association Staff

     

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The federal government is in the process of delivering cash to many U.S. citizens to help stimulate the economy, providing tax credits to individuals of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child.

For those struggling to pay bills or who have lost their jobs, these payments can help them stay afloat during these extraordinary times. But it’s also a potential windfall for scammers, who are continually trying to find new ways to steal from unsuspecting individuals.

“Scammers prey on people’s emotions and weaknesses,” said Howard Silverstone, CPA and American Institute of CPAs (AICPA) Forensic and Litigation Services Fraud Task Force member. “Right now, people haven’t been going to work every day. They’re home with the kids. They’re stressed. They may have lost their jobs. They need that money. Scammers know this and are preying on it.”

The Federal Trade Commission reported that it received more than 1.4 million fraud reports in 2018, with people losing $1.48 billion. With the federal Coronavirus Aid, Relief and Economic Security (CARES) Act pumping $2 trillion into the nation’s economy, scammers have a $2 trillion incentive to try to steal from unsuspecting individuals. They particularly attack those who can least afford it.

“Criminals don’t only go after the rich and people with all the money,” said Silverstone. “Sadly, they often go after vulnerable people who don’t have money and who need it most.”

The IRS has said it will deposit these economic impact payments directly into the accounts of taxpayers who used direct deposit for their 2018 or 2019 taxes, those receiving Social Security payments or Railroad Retirement beneficiaries. The payments begin to phase out for taxpayers with adjusted gross incomes above $150,000 for joint filers, $112,500 for heads of households and $75,000 for other individuals. All others, including non-tax filers who do not submit a Form 1040, 1040A or 1040EZ, must register with the IRS to receive their payments via an online portal.

With funding being distributed so widely, scammers are leveraging several tools to try to separate individuals from that cash — most notably phishing emails, phone calls and texts. Fraudsters use these communications to spur people to provide personal information, falsely claiming the IRS needs to confirm Social Security numbers, bank account numbers or addresses before making payment. Once scammers have that information, they can steal money and identities.

Silverstone warns that the IRS never calls and never emails. Unless you’ve received notice via postal mail, any communications claiming to be from the IRS are likely fraudulent.

“For most of the people receiving this money, the IRS already has your information,” said Silverstone, adding that individuals should not respond to phone calls, emails or texts regarding payments.

Another tell-tale sign is the language used in communications. While the media and general public may refer to the $1,200 tax credits as “stimulus payments” or “stimulus checks,” the federal government does not use that terminology. Rather, the IRS refers to them as “Economic Impact Payments.”

“If you see things about the stimulus payment, it’s not from the IRS,” said Silverstone.

For more information, see the AICPA’s Coronavirus (COVID-19) Resource Center and Coronavirus (COVID-19) Forensic and Valuation Resources for resources, tools and other information to help individuals, tax filers, small business owners and others better manage their way through this pandemic.

The IRS has also compiled information to protect taxpayers and economic impact payment recipients.

The IRS reminds taxpayers that scammers may:

• Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is “Economic Impact Payment.”
• Ask the taxpayer to sign over their economic impact payment check to them.
• Ask by phone, email, text or social media for verification of personal and/or banking information, claiming that the information is needed to receive or speed up their economic impact payment.
• Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
• Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

Reporting coronavirus-related scams or other phishing attempts

Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward them to phishing@irs.gov.

Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.

For non-filers

Non-filers, those who do not submit a Form 1040, 1040A or 1040EZ, must apply via an online IRS portal to receive their payments. The IRS requests the following information from those individuals. Do not provide it to anyone other than the official IRS portal.

• Full name, current mailing address and an email address
• Date of birth and valid Social Security number
• Bank account number, type and routing number (if you have one)
• Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year (if you have one)
• Driver’s license or state-issued ID (if you have one)
• Name of each qualifying child

For more help during the pandemic, turn to the AICPA Coronavirus (COVID-19) Resource Center.

Association Staff

     

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Over the previous articles in this series, we’ve covered big-picture wellness topics that can help you decrease stress, perform better at work, and find more satisfaction in your career. Allowing yourself to be emotional at work, eating healthy, going about your day with intention are behaviors that will benefit you today and for years to come.

Along with these vital concepts, it’s nice to have some hard-and-fast tips for getting a little more done without having to burn the midnight oil. You can call them life hacks, productivity tricks, efficiency systems, or whatever else you’d like. I like to think of them as performance optimizers. And when you’re in the throes of busy season, you need all the optimization you can get.

Please note: these strategies do not comprise a program that I’m advocating. Some of the techniques may work for you; others may not. That’s totally fine. Use the techniques presented below if they make sense for you and deliver results.

We all work differently. And we can all work a little smarter. Without further ado, here are some of my favorite ways to do just that.

Monotasking

One of the easiest ways to streamline your workday is to stop trying to do a million tasks at once.

Studies show that multitasking hampers the quality of work without saving much time. Juggling a ton of balls isn’t just ineffectual, it will add stress and anxiety to your day. By trying to multitask, you increase your degree of difficulty for no reason. In the best-selling book “The One Thing,” Gary Keller writes, “It is not that we have too little time to do all the things we need to do, it is that we feel the need to do too many things in the time we have.”

A telling and tragic example of multitasking is texting and driving. The accidents caused each day by texting and driving aren’t the result of drivers not having enough time in the day to send a text, but rather feeling the need to do both at once. Instead of trying to do the work equivalent of texting and driving, focus on one thing at a time.

One tip to help you monotask: when you get to work, turn off irrelevant phone notifications. Texts are fine, especially from important people like family members, but do you really need to be distracted by a notification from a restaurant app? If you need to check email or a messaging app like Slack, do it in regular intervals rather than constantly eyeing it on your screen.

The more attention you devote to the task at hand, the better your work will be and the quicker you’ll get it done.

Regimented breaks

Taking breaks at work is essential. Breaks have been shown to help with everything from productivity to employee engagement. Especially when coupled with beneficial activities like exercise or meditation, a quick respite is a great way to refresh. Bonus tip: Use apps like Calm or Headspace to help make meditation easy no matter where you are or how little time you have.

If you’re the type of person who “forgets” to take breaks when it’s busy, try to schedule them at regular intervals. One popular method calls for working for 52 minutes, followed by a break of 17 minutes. Others suggest a five-minute break every hour.

Regiment your breaks, making them harder to skip.

Eisenhower Decision Matrix

To help organize his day, Dwight Eisenhower developed a matrix by dividing tasks based on their urgency and importance:

• Urgent and important tasks were handled promptly by him.
• Non-urgent but important tasks were set aside with a clear due date.
• Urgent but less important tasks were delegated to others.
• Non-urgent and unimportant tasks were dubbed superfluous.

This approach can be a great way to get a grasp on the tasks at-hand and reduce the time you spend on less-than-important activities.

The Pomodoro Technique

Created by Francesco Cirillo and named the Italian word for tomato, the Pomodoro Technique involves working in timed, 25-minute intervals, with each interval devoted to a single task. There’s a list of the Best Pomodoro Apps to Try so you can apply the technique.

The key is to spend each timed session on a single task. If you are just timing your regular day, you’re not using the technique properly.

Website blockers

If you can’t resist the temptation of distracting websites or social media platforms, you can eliminate the temptation altogether.

Website blocking apps bar you from specific sites for timed durations that you can set and control. Some companies opt to use these tools on a wide-scale basis, but that can be a divisive process. Using it for yourself, on the other hand, comes with no such caveats.

We hope you’ve enjoyed this blog series. Be sure to check out Amy’s associated podcast, Mindfulness matters: Reimagine your approach to busy season (Part 6), a meditation to help you get focused. A short, free registration may be necessary.

Amy Vetter, CPA.CITP, CGMA, MBA, is the CEO of The B³ Method^® Institute and Drishtiq Yoga, a top inspirational keynote speaker, corporate board member, author and host of the podcast Breaking Beliefs. As a CPA and Yogi who specializes in technology innovation, Amy is a motivational and inspiring speaker. She provides a refreshingly new perspective that inspires and guides professionals on how to transform their careers and lives.

     

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“Illusions commend themselves to us because they save us pain and allow us to enjoy pleasure instead.”  Sigmund Freud

If there’s one thing I’ve learned in the 37 years of working at the AICPA, it’s that you don’t want to mess with tax filing season. Sure, tax season is never “easy” and spreading the work over a longer period is important. But most CPAs just want to get it over with. I was in practice before I came to the AICPA and I can still empathize with these sentiments all these years later.

Minimizing tax filing season disruptions and changes is important to the IRS, too. Sure, there have been a few snafus over the years. But, by and large, the IRS manages massive amounts of data well and it does us proud in administering a system with 156 million individual returns and 112 million refunds amounting to $321 billion. The average refund is about $3,000. April 15 is prominent in the IRS’ psyche because it’s prominent in the psyche of the American public.

The focus on April 15 as Tax Day changed, at least for this year. Surviving a pandemic was for history book reading or maybe a scary movie. But now it seems to consume us every day. I’m proud of the AICPA for all that we have done, and continue to do, to support our members, the business community and government. Much information is available, for example, in our AICPA Coronavirus (COVID-19) Resource Center, our SBA Paycheck Protection Program resources for CPAs, and in our Coronavirus (COVID-19) tax resources.

Before I go back in time, I want to thank Treasury and the IRS for providing the broad relief that we advocated for and taxpayers and their advisers needed. On April 9, the IRS released Notice 2020-23. Taken together with Rev. Proc. 2018-58 — listing “time-sensitive” actions that are postponed — and FAQs relating to payroll taxes, the IRS has filled most of the blanks of the accommodations necessary for the pandemic emergency.

My wheelhouse is tax policy and advocacy. Around the first of March, my team started thinking ahead to March 15 and April 15. Was there a COVID-19 stumbling block? How could we avoid that stumbling block? Then the calls and emails from across the profession started coming, especially from CPAs in California, Washington state and New York — the areas hit early and hardest by COVID-19. They weren’t the usual CPA messages; they were messages enveloped in pain and anxiety. Clients, staff and families were getting sick. Everyone was working at home — not always effectively — and schools started to close. It became clear that the next several months — tax filing season — would be like none we’ve experienced. We fought off Freud’s “illusions” and took what we knew would be a tough road for some members and the IRS. Tax filing and payments would need broad relief well beyond April 15.

The AICPA advocated for relief in every way possible. Many of our members, state CPA societies and those on Capitol Hill helped us. We thank them for their leadership and commitment to clients of all stripes. In particular, we appreciate the efforts of Sen. John Thune (R-SD), who introduced a bill to help get us on the road to obtaining broad relief.

As filing season has progressed, the IRS has appropriately, but significantly, curtailed much of its operations for the health and safety of its employees and taxpayers. This makes it impractical, if not impossible, for taxpayers and their advisers to continue business as usual. This was a significant reason for our strong advocacy efforts. (You can follow all of our advocacy initiatives in our Coronavirus (COVID-19) tax advocacy resources page.)

While we appreciate the broad relief the IRS provided, we continue to urge Treasury and the IRS to develop a contingency plan for the next relief phase, should that be needed. We cannot wait until a few days before July 15 for the IRS to release that plan. The entire tax community deserves and needs early notification. Other issues are drawing our immediate attention, such as (1) making sure the payroll tax FAQs are updated; (2) having the IRS clarify the services that are open — and not just the ones that are closed; (3) pushing for an early re-opening of the practitioner priority services line when it’s safe to do so; and (4) advocating for expanded e-signature availability.

Given the unprecedented COVID-19 spread, as a country, we should not risk anyone’s life to meet tax filing obligations, including IRS personnel. Freud also said, “Out of your vulnerabilities will come your strength.” We hope that, out of all the challenges we struggle with today will come a better, more agile and workable tax system in the future. Stay healthy and safe.

Edward S. Karl, CPA, CGMA, Vice President of Taxation, American Institute of CPAs

     

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COVID-19 has altered how businesses, governments and agencies operate around the world. The Internal Revenue Service (IRS) is no different. The IRS recently announced it has scaled back some of its operations.

To protect employees and taxpayers, agents are now working remotely and only holding teleconferences. Scheduled meetings are still likely to take place on their scheduled date virtually, and agents are requesting teleconferences with taxpayers to work their cases.

Scaled-back operations and staff working remotely doesn’t mean the IRS is unavailable to you.

Contacting the IRS

Proposed regulations hearings are being teleconferenced. Send an email to publichearings@irs.gov to receive the telephone number and access code for specific hearings. And as usual, comments can be submitted by e-mail to the address noted in the proposed rulemaking.

Tax practitioners with e-Services accounts and with client authorization can still access the Transcript Delivery System (TDS) to obtain prior-year transcripts. Check out the AICPA Tax Section’s Using IRS E-Services for tips and tricks for using the tool.

In an exam, ready yourself for multiple teleconferences rather than the usual in-person meeting.

More tips:

• gov remains the best source for tax law questions, checks on refund status and tax payments.
• Although IRS phone lines supported by customer service representatives for both taxpayers and tax professionals are not staffed at this time, automated phone lines, which handle most taxpayer calls, remain available. Some tax compliance lines also remain available. To check on regular tax refund status via automated phone, call 800-829-1954.
• Reach out to your local Taxpayer Advocate Service for time-sensitive issues, including if a levy situation creates a financial hardship. There may be a message indicating that they will contact you within 24 hours of receiving your voicemail.
• Send a fax. May sound archaic, but faxes are still a good bet.

Representing your clients

Encourage your clients to use the Where’s My Refund? and Get Transcript services to pull information regarding these items. Clients entitled to a refund and that planned to file paper returns can be encouraged to e-file. Taxpayers also can make tax payments through Direct Pay. The IRS has stated that in “mid-April” taxpayers will be able to check the payment status of their economic impact payments through the Get Your Payment portal. All IRS updates on the economic impact payments and other COVID-19-related issues also will be posted immediately on the Coronavirus Tax Relief and Economic Impact Payments website.

For any notices that you receive offering appeal rights (e.g., rejected offers in compromise, innocent spouse request denial, request to remove a penalty), file the timely protest by certified mail, by mail and by fax to the office that issued the notice or the instructions on the notice. There may not be a person around to accept the certified mail, but by keeping the certified number you can trace the mailing process. Note that the IRS Independent Office of Appeals continues to work its cases and assigned appeals officers can be contacted by phone.

For pending offers in compromise (OIC) applications, the IRS will allow taxpayers until July 15^th to provide requested additional information to support a pending OIC, and the IRS will not close any pending OIC request before July 15^th without the taxpayer’s consent.

Regarding OIC payments, taxpayers may suspend payments on accepted OICs until July 15^th. By law, interest will continue to accrue on the unpaid balance.

The IRS will not default an OIC for those taxpayers who are delinquent in filing their tax return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return or extension) on or before July 15^th.

For taxpayers under an existing installment agreement, payments due between April 1^st and July 15^th are suspended. Taxpayers who are currently unable to comply with the terms of an installment agreement, including a direct debit installment agreement, may suspend payments during this period. The IRS will not default any installment agreements during this period. By law, interest will continue to accrue on the unpaid balance.

Request an installment agreement — online or through the mail — with the revenue officer assigned to the case. When requesting installment agreements by mail, remember to include items such as: a list of all periods that are outstanding; the type of tax; the due date of payment requested; and the dollar amount of the payment in the letter. Send the letter by certified mail and regular mail. Ask the taxpayer if he or she would like to send monthly payments to the IRS until he or she (or you) are contacted. Send a cover letter with each payment requesting the installment agreement and include the above stated items.

IRS has suspended new certifications to the Department of State for taxpayers who are “seriously delinquent”, which would have prevented taxpayers from receiving or renewing passports. These taxpayers are encouraged to submit a request for an installment agreement or, if applicable, an OIC during this period.

Taxpayers have until July 15^th to respond to the IRS to verify that they qualify for the Earned Income Tax Credit or to verify their income. The IRS will not deny these credits for a failure to provide requested information until after July 15^th.

Remind your clients to remain current with tax filings and any remaining estimated tax payments and/or employment taxes.

Also, starting on April 17^th and until further notice, the IRS will accept eligible refund claims Form 1139 submitted via fax to 844-249-6236 and eligible refund claims Form 1045 submitted via fax to 844-249-6237. Forms that were mailed after March 27^th may be re-faxed as well. The IRS has released FAQs on this topic.

IRS operations that have been reduced or suspended

• Paper correspondence is limited. U.S. Tax Court mail is to be held for delivery until the U.S. Tax Court reopens.
• Call centers and the Practitioner Priority Service, a special phone line for tax practitioners, is closed.
• These help-desk lines are also suspended until further notice: e-Services; Filing Information Returns Electronically (FIRE); the Affordable Care Act Information Return (AIR).
• New Income Verification Express Services (IVES) requests are not being accepted.
• Central Authorization File (CAF) number authorizations are suspended.
• Opened new examinations that were not begun in earnest are likely on hold until July 15^th.
• No new examinations are to be opened until after July 15^th, provided the statute of limitations does not expire in 2020.
• Information document requests (IDRs) may be issued and adjustments may still be proposed, however, IDR enforcement procedures have been suspended through July 15^th.
• Fast Track mediation, which is typically 120 days, is likely not available.
• Most collection activities through the Small Business and Self-Employed Tax Center are suspended through July 15^th unless there is a risk of permanent loss to the government due to the expiration of a statute or other exigent circumstance, or the taxpayer has agreed to an action.
• In general, certain levies and collection notices are suspended until further notice, such as the Federal Payment Levy Program.

• The 90-day deadline to file a Tax Court petition, after receiving a notice of deficiency, is extended to July 15^th.

• The Philadelphia Accounts Management Campus is currently closed. Thus, the processing of U.S residency certifications is temporarily suspended.

Even during a global pandemic, you have the right to contact the IRS. And even though the IRS has temporarily scaled back many of its normal channels of communication, they still offer essential services.

These tips will help you navigate and remain the best advocate for your clients.

Sarah Shannonhouse, CPA, Manager — Tax, Practice and Ethics, Association of International Certified Professional Accountants Sarah would like to thank Dan Wise, CPA, Head of Tax Risk at CohnReznick and Larry Wolfe, CPA, owner of Larry J. Wolfe Ltd. for their suggestions for this blog post.

     

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The coronavirus (COVID-19) pandemic has created different day-to-day challenges than a few weeks ago. Just last month, you were probably discussing business expansion or future growth opportunities with clients and now you’re talking about how to stay afloat during uncertain times.

Practically overnight, your clients’ needs have changed completely. Some of your client questions might even go beyond what you have been accustomed to addressing.

Here are some ways to help center your client communications to focus all parties on building a brighter and stable future.

1. Reassure clients.

Tell clients how you plan to operate through the disruptions and what measures are in place to prevent community coronavirus spread. Employing a dedicated webpage, posting alerts on social media channels, sending emails or calling clients are good methods to reach clients quickly and stay connected with them.

For some pointers on how to get started, use these client communication tools:

• Client letter for individual clients
• Client letter for business clients
• Tax snapshot for clients

Next, be proactive and anticipate what your clients need to know. Consider hosting a webinar to showcase your expertise and value.

2. Explain what the extended deadlines really mean to each client.

Recently, the IRS extended the April 15 filing and payment deadline to July 15. Yesterday, the IRS expanded its relief to additional returns and tax payments in Notice 2020-23, but many clients may not understand what this means for their situation. Give your clients an update on your plans for filing season. Debrief them on how to send information to you and your expected timeline.

3. Provide insights on stimulus payments.

Economic stimulus payments, also known as recovery rebates, are expected to be issued in mid-April. Use this stimulus calculator to help your clients calculate their recovery rebate and talk to them about the timing of rebates and what they should expect.

Even though the tax deadlines were extended, it will benefit many clients to file their 2019 returns as soon as possible, especially if they are due a tax refund. Keep in mind that the IRS will use a taxpayer’s 2019 return to calculate their stimulus payment. In the absence of a 2019 return, the IRS will use the taxpayer’s 2018 return to calculate the stimulus payment. Consider if the 2018 return would yield a higher stimulus payment (e.g., income was lower in 2018). If so, it may be beneficial to hold filing the 2019 return to get the most stimulus payment sooner.

If your clients have direct deposit set up on their tax forms, they will get their payments sooner. For those who don’t have direct deposit information on file with the IRS or who file by mail, the Treasury Department plans to set up a web-based portal for people to provide their banking information. If no direct deposit information is on file, the IRS will mail a check to the taxpayer.

4. Prep clients on cybersecurity concerns.

Recently, the IRS warned taxpayers that coronavirus-related scams were increasing. Educate your clients on these issues:

• The IRS will not ask taxpayers to give personal or financial information over the phone or email to help accelerate the payment of a stimulus payment.
• Be skeptical of text messages or website and social media requests for money or personal information.
• If a taxpayer needs to use the IRS online portal to get a stimulus payment, do not provide direct deposit information or other banking information to others.

5. Help small business clients navigate federal relief programs.

Your small business clients who have been economically affected by COVID-19 can get help through the Small Business Administration (SBA). The following are possible options for your small business clients:

• Paycheck Protection Program (PPP)
• Economic Injury Disaster Loan (EIDL) and Emergency Economic Injury Grants
• Small Business Debt Relief Program

Use this SBA loan snapshot to help your clients understand the various options available to them.

6. Work with the IRS effectively.

You’re still the best advocate for your clients through all this and you must be able to contact the IRS. Recently, the IRS announced it was scaling back some of its operations to focus on “mission-critical activities.” Some of these include temporarily closing the Practitioner Priority Service line and suspending the e-Services Help Desk line, FIRE (Filing Information Returns Electronically) and AIR (the Affordable Care Act Information Return) system help desks.

Given this, what are the best ways for you to contact the IRS? Try these:

• Tax practitioners with e-Services accounts and client authorization can still access the Transcript Delivery System (TDS) to get prior-year transcripts. The AICPA Tax Section’s Using IRS E-Services page features tips and tricks for using the tool.
• Encourage your clients to still use the Where’s My Refund? and Get Transcript services to pull information regarding these items.
• Contact your local taxpayer advocate, especially if a levy situation creates hardship. There may be a message indicating that they will contact you in 24 hours if you leave a voicemail.
• The IRS can still receive mail, although responses will probably be delayed.

Client communication is critical.

Not only are you considered your clients’ trusted financial adviser but being a supportive counselor has taken center stage. Your clients look to you to provide comfort in this crucial period. Fortunately, there are steps you can take in the short term that will provide lasting benefits for better client relationships.

For more resources on how to deal with the impacts of the coronavirus, go to the AICPA Coronavirus (COVID-19) Resource Center and the AICPA Tax Section’s coronavirus tax resources.

Minh Graham, CPA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants

     

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