IRS seeks to accelerate matching of external information to refund returns
The IRS wants to move closer to a ‘real-time’ tax system that would allow them to identify matching discrepancies between individual tax returns and the information reported to the IRS from third parties. Such a system would require W-2’s, 1099’s and other information returns normally reported to the IRS in February or March to be reported earlier. For instance, 50% of individual refunds for the filing season had been issued by the end of Feb. 2011, at that time only 3% of the third party information had been received by the Service. As the IRS continues to think in this direction, changes in information reporting would be necessary, possibly even moving 1099 and W-2 reporting to a real-time system. Changes here are expected to be a long way off however. The full story and comments can be read here.
Ecomonic uncertainty and regulatory compliance and enforcement top list of organizational threats
In a recent in-house counsel Grant Thornton LLP survey conducted by ALM Marketing Services, economic uncertainty and regulatory compliance and enforcement came in first and second place, respectively, as threats to organizational growth. The full story and the survey report can be found here.
Ohio Bureau of Workers’ Compensation announces proposed $1B in rebates
On May 2, 2013, Ohio’s BWC announced a proposal to provide a $1 billion rebate to both private and public sector employers. A reduction of premiums (2% for private employers) was also announced as part of the proposal. More info, including a fact sheet and news release, can be read here.
2014 HSA contribution limits announced
The Health Savings Account contribution limits for 2014 were recently announced. The maximum contribution will be $3,300 for individuals and $6,550 for a family. More details are available in the Revenue Procedure.
IRS will now obtain a warrant before requesting emails from ISPs
It appears that the IRS’ position that a search warrant is not necessary if they want to obtain emails in a criminal investigation is a thing of the past. A new policy statement dated May 3, 2013 says that a search warrant will be obtained before requesting email correspondence in future investigations. The statement also indicates that the IRS will not seek this kind of information in civil cases. The statement can be read here.
2013 filing season update: depreciation form approved today and education credit form approved for Feb. 14th
On February 8th, The IRS announced that forms 4562 for depreciation and form 8863 for education credits will be approved and acceptable for filing this coming week. This clears the way for the majority of 2012 business and individual tax returns to be prepared and filed.
Some forms remain in the development stage, however. A list of the forms awaiting approval can be found here. The Service expects these to be available the first week of March, so there’s still more to look forward to.
