IMRS Industry Issues Quarterly Report - December 2013
IMRS Issue 13-0001811 – Federal Tax Deposit Threshold
Issue: A practitioner requested the quarterly threshold amount for making federal tax deposits, currently set at $2,500, be increased to a minimum of $3,500, or preferably $5000. This would relieve small business owners from the burden of making monthly deposits or from paying a practitioner or payroll service to make the deposits on their behalf.
Response: In determining the minimum FTD rules, taxpayer burden must be balanced with the requirement of getting funds deposited efficiently into the Treasury. There are multiple minimum FTD rules, and they vary according to the type of tax involved. Changing the FTD rules would create additional complexity and confusion for taxpayers, would upset the current established regulatory scheme and complicate enforcement of the Electronic Federal Tax Payment System. Therefore, the IRS is not making any changes to the existing minimum FTD rules.
The Treasury Department maintains EFTPS for employers to make and verify federal tax payments electronically 24 hours a day, 7 days a week through the Internet, or by phone. EFTPS is secure, accurate, easy to use and provides an immediate confirmation for each transaction. You can also schedule business payments up to 120 days in advance. This service is free of charge.
IMRS Issue 13-0001777 – Telephone/Fax Inquiries from IRS
Issue: A stakeholder contacted the IRS concerned about a phone call from someone claiming to be with the IRS. The caller requested information about the employer’s tax identification number and wage and withholding information of employees.
Response: Business owners may receive a call or fax request from IRS employees as part of the IRS’ strategies on detection, resolution and prevention of improper refunds. The IRS employee may request verification of income and/or withholding information reported to the IRS through other means.
If business owners receive such a call or fax and are not comfortable providing the information, they should contact the IRS customer service line at 1-800-829-4933 to verify the validity of the call or fax. They may then contact the requesting IRS employee and provide the required information.
IMRS Issue 13-0001848 – Powers of Attorney for LLCs
Issue: Stakeholder Liaison requested posting guidance for powers of attorney for limited liability companies on IRS.gov. It’s often difficult for the business and/or the practitioner to know who should sign the POA since different types of person(s) can sign a POA for an LLC depending on its election to be a corporation, partnership or disregarded entity.
Response: Find guidance for who, in an LLC, should sign a POA on IRS.gov by searching “Powers of Attorney for LLCs".