There have been some big bipartisan tax changes passed by congress and signed by the President recently.
The Taxpayer First Act includes mandates for improved customer service, Identity protection, easing of enforcement, modernization of the IRS, cybersecurity and more use of electronic systems.
Part of this Act was a mandate that the IRS must create a reorganization plan and submit it to congress by September of next year. They have been given guidelines that they must use to ensure the parameters are met.
The Act also requires the IRS to create a customer service strategy. This includes focus on the low income taxpayers being able to settle tax debts without having to pay a fee. The IRS is not allowed to close any in-person taxpayer assistance centers without advanced notice.
The IRS is not allowed to turn over collection of low-income taxpayers to private collection agencies.
The IRS will be required to give taxpayers timely notice if they’re going to contact third parties like banks or employers before they contact them.
Prevention of Identity theft is going to be a top concern. Taxpayers can request special passwords before filing their returns and the IRS will alert individuals if the suspect identity theft. Identity theft victims will be assigned an IRS employee to track their case.
Be sure to file your return on time or file an extension. The current minimum penalty, for filing 60 or more days late, the lesser of $215 or 100% of the amount of tax due will be Raised to $330 for returns required to be filed after 2019.
If you give money to individuals or a small group a go-fund-me contribution for medical costs or to help a family or small group in need, while commendable, the donations are not deductible.
The Affordable Care Act is in court again and if the ruling by the Texas court is upheld by the 5Th US Circuit Court of Appeals, expect it to go back to the Supreme Court for a final ruling next summer right before the elections.
We will continue to update as we get more details.