IMRS Monthly Overview - November 2011
Policy, Practice, Procedures
IMRS issue 12-0001537 - Option to opt-out of release of information in PTIN database
Issue: A tax practitioner proposed that an opt-out feature be established regarding the release of practitioners' PTIN information. As an alternative to a complete opt-out, the practitioner suggested that practitioners be able to request that their e-mail addresses not be released.
Policy, Practice & Procedures
IMRS Issue 11-0001381 – Electronic issuance of Forms 1099
Issue: A tax practitioner has concerns about allowing companies to issue Forms 1099 electronically. He believes some companies may not be following IRS regulations, and wants to know how to report them for IRS follow up. He also believes that all companies should be required to send 1099s by mail since many taxpayers don't know to look online for their forms.
Response: If a payer does not follow the proper procedures when furnishing statements electronically, they have not met the requirement to furnish the correct statement to the payee. If you have specific information that a company is not properly complying with the requirements when furnishing statements electronically, complete Form 3949-A, Information Referral (PDF), and mail it to the address on the form. Form 3949-A can be found on IRS.gov. The regulations and the instructions in Publication 1179 require taxpayers to consent to the electronic furnishing of Forms 1099, and allow taxpayers to opt out of electronic furnishing once they have given consent. Taxpayers who have difficulty keeping track of electronic statements are encouraged to request them by mail.
IMRS Issue 11-0001443 – Name control for trusts
Issue: An attorney who assigns bulk employer identification numbers for trusts and submits the information to IRS is unable to obtain the correct name control for e-filing.
Response: Without a valid Form 2848, Power of Attorney, or Form 8821, Tax Information Authorization, the IRS cannot release the name control we assigned to the entity. The taxpayer (owner of the EIN) receives a CP575 (Notice of EIN Assignment) that contains the name control assigned in the header section of page 2.
The IRS is currently analyzing the name control assignment process as it relates to e-File and EIN assignment. We made changes to e-File to allow a broader search for a name control for this filing season and this has proven to be successful.
When establishing an EIN for a trust, here are some general guidelines to help you determine what the assigned name control will be:
- Omit any names of trustees from the primary name.
- Place the individual's name at the beginning of your trust name.
- Do not enter the words "dated,” “under,” or “for the benefit of” at the beginning of the trust name.
- Do not enter the alpha month - replace with corresponding numeric character.
- Omit the word "the" from the beginning of your trust name.
Communication and Outreach
IMRS Issue 11-0001466 - Request for change to Quick Alerts subscription categories
Issue: Quick Alert subscribers are receiving numerous Quick Alerts containing information that does not apply to them. The IRS should have two Quick Alert services: one targeted at software providers/transmitters and the other targeted at electronic return originators.
Response: Changes were made to the program based upon both internal and external stakeholder feedback. We consider all suggestions carefully and determine what steps the IRS should take based on those suggestions. We determined that the creation of a new "Technical" QuickAlerts category would best satisfy the needs of all stakeholders.
Effective 11/01/2011, QuickAlerts will have four subscription categories:
- General Notifications
- General IRS e-file Service Center Messages
Subscribers to the new "Technical" category will receive QuickAlerts on Schema Information and Software (PATS/ATS) Testing. The "PATS Testing" topic will be removed from the Alerts category. No other topics will move from their existing categories. Subscribers who want to receive the Technical e-file information, mainly intended for software developers, transmitters and states, should access their QuickAlerts subscription and subscribe to the new category.
NOTE: Current and previous reports are also available on this site. The monthly overviews are posted for the prior two years through the current month. You can also access reports for issues closed in prior years on the same page.
We invite you to raise your issues/concerns with your local stakeholder liaison.