IMRS Monthly Overview - September-October 2013
The IMRS Monthly Overview provides synopses of some of the issues received and/or closed by the Issue Management Resolution System staff during the past month. The Monthly Overview informs the public about the work of IMRS and highlights issues that we think would be of most interest to external stakeholders. When the Monthly Overview is posted to IRS.gov, a tweet goes out to Twitter followers of @IRStaxpros. Please sign up if you would like to be notified.
NEW IMRS ISSUES
Policy, Practice, Procedures
IMRS Issue 13-0001851 – Fax numbers for Form 2848
Issue: A tax professional firm reports the fax numbers in the instructions for Form 2848, Power of Attorney and Declaration of Representative, are incorrect and different from the numbers listed on IRS.gov.
RECENTLY CLOSED ISSUES
Communication and Outreach
IMRS Issue 13-0001828 - Form 8888, Allocation of Refund and Tax Preparation Fees
Issue: A stakeholder liaison requested an article for e-News for Tax Professionals to remind tax professionals about proper allocation of clients’ refunds.
Response: The Sept. 6, 2013, edition of e-News for Tax Professionals includes a reminder that taxpayers may direct their refunds to more than one account at a bank or other financial institution in the United States using Form 8888, Allocation of Refund. However, they may not request deposit of their refunds to accounts that are not in their names, such as their tax preparers' accounts. Regulations in Circular No. 230 state that a practitioner who prepares tax returns may not endorse or otherwise negotiate any check issued to a client by the government in respect of a federal tax liability. For more information, visit Frequently Asked Questions about Splitting Federal Income Tax Refunds on IRS.gov.
Policy, Practice, Procedures
IMRS Issue 13-0001813 – Practitioner is receiving client’s notices in Spanish
Issue: A practitioner received an IRS notice for a client in Spanish. The practitioner does not read or speak Spanish. The practitioner suggests that all notices issued in Spanish include an English translation.
Response: Spanish language notices are sent to taxpayers based on filing conditions. If the taxpayer files a Spanish language form, such as forms 940PR, 1040PR, etc., then IRS will issue notices in Spanish. IRS systems don't allow for sending practitioner copies in a language different than the notice sent to the taxpayer.
IRS notices display a CP number in the upper-right corner. Generally, the CP number of Spanish notices begins with a 6, 7 or 8. These numbers correspond directly to their English equivalents as follows:
|Spanish CP#||English CP#|
Example: for the Spanish CP 621, the English version is the CP 521.
Search Understanding Your IRS Notice or Letter to view the notices in English. In the future, each Spanish notice on IRS.gov will include a link to the English version. Your Stakeholder Liaison local contact can assist further.
IMRS Issue 13-0001790 – Delays processing acceptance agents applications
Issue: Effective Jan.1, 2013, the IRS updated procedures affecting the Individual Taxpayer Identification Number (ITIN) application process. The IRS has also taken steps to improve the ITIN Acceptance Agent Program. Practitioners are concerned about the delayed processing of new and renewing acceptance agent applications. They also request that a separate designation be made on IRS.gov to distinguish a Certifying Acceptance Agent (CAA) from an Acceptance Agent (AA).
Response: Although acceptance agent applications were accepted during the interim period, no new or renewing applications were approved. With the release of the final changes to the AA Program, applications will be processed on a first-in, first-out basis. Those who submitted a renewing application that was not rejected can continue to operate under the old agreement until the new agreement is finalized.
The acceptance agents lists now include an asterisk to distinguish the AAs from the CAAs.
IMRS Issue 13-0001844 – Page numbers for information document request transcripts
Issue: A practitioner asked whether page numbers can be added to transcripts received for wage and investment income information.
Response: The request will be considered along with other suggested enhancements to transcripts.
IMRS Issue 13-0001853 – Publication 5067, Voluntary Classification Settlement Program At-a-Glance
Issue: A Stakeholder Liaison requested that Publication 5067, Voluntary Classification Settlement Program At-a-Glance, be made available on IRS.gov. The VCSP provides an opportunity for taxpayers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes.
Response: Publication 5067 is now available from the Forms and Publications page on IRS.gov for sharing with interested clients.
NOTE: Current and previous reports are also available on this site. The monthly overviews are posted for this year 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.