1. IRS Updates
October 5, 2017

2. Field Assistance
October 5, 2017

3. Taxpayer Assistance Centers
Taxpayer Assistance Centers (TAC) provide face-to-face assistance to taxpayers whose issues cannot be resolved through other convenient and efficient methods, or to taxpayers who choose to obtain information and assistance in the TAC.

4. Taxpayer Assistance Centers - Continued
Keep in mind, many questions can be resolved online without visiting a TAC.
All TAC offices are by appointment.
To make an appointment call
Taxpayers will be asked to provide valid photo identification to receive services.
Taxpayers who simply want to drop off a payment or a tax return or even pick up a tax form can still do that without an appointment.

5. General TAC Services
Account inquiries (help with letters, notices and levies on wages or bank account)
Adjustments (changes to tax account information or payments)
Alien clearances (Sailing Permits)
Assistance with Affordable Care Act tax provision questions for individuals

6. Individual Taxpayer Identification Numbers Service
General and renewal Individual Taxpayer Identification Number (ITIN) application services are provided in all TACs and include review, acceptance, and forwarding to Submission Processing.
Currently, about half of our TACs will authenticate certain identification documents for those who submit Form W-7, Application for IRS Individual Taxpayer Identification Number in person.

7. ITIN Service - Continued
This service allows taxpayers to retain their original identification documents while their ITIN applications are being processed.
For the closest ITIN authenticating TAC near you, visit:

8. Additional Assistance Options
You can get help with IRS letters you have received or resolve tax account issues from our toll free assistors.
Call the number shown on the letter you received, or for general questions and help, dial for individual tax issues or for business-related tax issues.

9. Additional Assistance Options- Continued
Other toll-free lines devoted to tax exempt organizations, tax professionals and other specialties are listed on
To make an appointment at a TAC call

10. Filing Information Returns Electronically
October 5, 2017

11. FIRE Overview Information returns are: Tax documents
Required by IRC regulations
Used to report payments to IRS
FIRE system set up for filing information returns electronically
File Form W-2 with SSA not IRS

12. Benefits of Using FIRE Cost-effective Paperless Secure Easy to use
Efficient
Fast
Flexible

13. Who Can Participate in FIRE
Anyone that files information returns
Entities who file 250 information returns are required to file electronically via FIRE
The 250 or more requirement applies separately to:
Each type of form
Original returns and corrected returns
Amounts filed not aggregated

14. How to Participate in FIRE
You will need to :
Create properly formatted electronic files using software
Submit Form 4419 to obtain a TCC
Fax form to: (toll-free)
Submit 30 days before due date of returns for current year processing
Create a FIRE account

15. Software/Vendor Information
You must have software to create properly formatted files to use FIRE
Files must be in ASCII code
Find the list of Approved IRS e-file for Business Providers containing a listing for Information Return Providers on IRS.gov
Pub 1582, Information Returns Vendor List, is online; type “Pub 1582” in the search box on IRS.gov

16. Create Your FIRE Account
Information needed to create FIRE account:
Company’s name
Company’s address
Company’s phone number
Contact name and address
Go to to create FIRE account.

17. Ready to Log on to FIRE? Testing
Do you have the required software to create the files?
Have you filed Form 4419?
Have you received your TCC?
Have you created your FIRE account?
Test your hardware and software using the FIRE test system at
Go to to create FIRE account.

18. Helpful Publications Pub 1220 Pub 1187 Pub 1239 Pub 4810 Pub 3609

19. Work Opportunity Tax Credit
October 2017

20. WOTC
Retroactive for employees hired between Dec. 31, 2014 and Jan. 1, 2020
Tax-exempt employers hiring qualified veterans (Dec. 31, 2014-Jan. 1, 2020) included
New target group employees
Qualified long-term unemployment recipients

21. New Target Group Qualified Long-Term Unemployment Recipient
Hired on or after January 1, 2016

22. Transitional Relief
Notice provides employers that hire members of targeted groups additional time beyond the 28-day deadline for submitting Form 8850.
PATH Act extended the Work Opportunity Tax Credit retroactively for 2015.
Form 8850 must be submitted by May 31, 2016.
Qualified long term employment recipients deadline June 29, 2016.

23. Pre-screening and Certification
All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit
Employers should contact their individual state workforce agency with any specific processing questions for Forms 8850.

24. Claiming the WOTC
The process for taxable businesses claiming the WOTC for all categories remains the same.
Claim credit as a general business credit
Tax-exempt employers claiming the WOTC for veterans categories, follow the instructions shown on Form 5884-C.

25. IRS.gov
Enter WOTC in the search box

26. Don’t Take the Bait Series

27. Affordable Care Act (ACA) Employer Information
October 5, 2017

28. Affordable Care Act Estimator Tools
Four tools for estimating healthcare tax credits and payments:
Premium Tax Credit Change Estimator
Individual Shared Responsibility Provision-Payment Estimator
Small Business Health Care Tax Credit
Employer Shared Responsibility Payment Estimator
taxpayeradvocate.irs.gov is the Website

29. Employer Shared Responsibility Provision Estimator
Employers – use this online tool to determine:
Number of full-time employees, including FTEs,
If your company might be an applicable large employer, and
If you are, an estimate of the maximum amount of the potential shared responsibility payment that could apply, if you fail to offer coverage to your full-time employees
To learn more visit: taxpayeradvocate.irs.gov

30. Determining ALE Status
An employer is considered an ALE if it has 50 or more full-time employees or full-time equivalent employees
Number of employees and their hours of service in preceding year determines ALE status for the current year
Common ownership and controlled groups

31. Determining FTEs Full-time employee = at least 30 hours a week
Full-time Equivalent = hours non-full-time employees worked divided by 120
Seasonal employee
Military coverage, including Tricare or Veterans’ coverage

32. Information Reporting Requirements for ALES
Requires ALEs to file an information return to report health care coverage offered to the employer’s full-time employees for the calendar year
Applies to employers who are subject to the employer shared responsibility provisions (§4980H)
Information is used to (1) administer the employer shared responsibility provisions (§4980H) and (2) determine an employee’s eligibility for the premium tax credit

33. ALE Information Reporting Forms
1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns):
Employer name, address, EIN, and contact information
# of 1095-Cs submitted
ALE member information
1095-C (Employer-Provided Health Insurance Offer and Coverage):
Employee name, TIN, and address
Employer name, EIN, and contact information
Offer of coverage (by month)
Covered individuals

34. Due dates to employees and IRS
Required for calendar year 2015 (filed in 2016) and beyond
Furnished to Employee by January 31
Filed with the IRS by February 28 (March 31 if filed electronically)

35. Filing – Paper / Electronic (AIR)
Paper filing available only if submitting 250 or fewer information returns
Must electronically file if submitting more than 250 information returns
Details on Information Return filing preparation is on IRS.gov (search term ‘AIR’)
AIR Publications and page

36. Employer Shared Responsibility Payment
Liability exists if employer:
Does not offer coverage to at least 95% of FT employees (and their dependents) and at least one FT employee receives the PTC OR
Does offer to 95% of FT employees s (and their dependents), but at least one FT employee receives the PTC because, for that full-time employee, coverage was
not offered
unaffordable, or
did not provide minimum value

37. Definition of Affordability and Minimum Value
Affordable if employee’s share of lowest cost self-only coverage does not exceed 9.5% of household income
Three employer “safe harbors”
Minimum value
Covers at least 60% total cost of benefits

38. Amount of ESRP Offer to less than 95% (70% for 2015)
Payment of 1/12 of $2,000 (adjusted annually) per FT employee, above 30 threshold (per month)
Offer to at least 95%
Payment of 1/12 of $3,000 (adjusted annually) per PTC-receiving FT employee, (per month), subject to limitation

39. ESRP Assessment and Payment
Employer will not make a payment with a return
IRS will determine amount and notify employer
Employer will have opportunity to respond before assessment
IRS will send a notice and demand after assessment

40. ACA Provisions for Large and Small Employers
Health coverage provider reporting requirements –Section 6055
All self-insured employers (including self-insured ALEs) are subject to these reporting requirements
W-2 Reporting requirement
Additional Medicare Tax withholding

41. Due Dates for W-2s, W-3s & 1099-MISC, box 7
October 5, 2017

42. Due Date January 31
PATH Act requires due dates for certain information reporting forms by January 31
Electronic and paper Forms W-2 & W-3 are due to the Social Security Administration
Forms 1099-MISC, box 7 (for non-employee compensation) are due to the Internal Revenue Service

43. Information Return Penalties
Failure to file these forms correctly and timely may result in penalties
For more information
Pub 1586, “Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs”
Tax Topic 752

44. Information Return Penalties
Find more information about these penalties:
Search IRS.gov for: information return penalties
Scroll to find page, Increase in Information Return Penalties – IRS tax forms
Includes links to PDF versions of instruction for:
Forms W-2 and W-3
Certain Information Returns

45. Stay Up-to-Date Subscribe to: E-News for Tax Professionals
E-News for Payroll Professionals
QuickAlerts
Follow:
@IRStaxpros

46. W-2 Verification Code Pilot Update
October 5, 2017

47. Form W-2 Verification Code Pilot
To verify wage/withholding data included with e-filed Form 1040
On 47 million Forms W-2 in filing season 2017
ADP, Ceridian, Intuit, Paychex, Payroll, People, Prime Pay & Ultimate Software
Each included the VC on the W-2s of some of their clients
708,000 EINs in total

48. Form W-2 Verification Code Pilot
Unique, 16-character, alphanumeric code
Calculated using data from the W-2
In box, “Verification Code,” on copies B & C
B: "To be filed with employee's federal tax return”
C: "For employee's records”

49. Form W-2 Verification Code Pilot
W-2 Instructions:
If this field is populated, enter this code when it is requested by your tax return preparation software
It is possible your software or preparer will not request the code
The code is not entered on paper-filed returns

50. Form W-2 Verification Code Pilot
Missing or incorrect VCs did not prevent or delay the processing of a return or refund
IRS calculated the VC and compared it with the VC the taxpayer entered
Allows validation before any data is received from SSA
If VC validated, we treated the W-2 data submitted with a 1040 to be valid, thereby reducing false fraud-selections

51. Form W-2 Verification Code Pilot
Filing season 2017
If taxpayer/preparer had a W-2 with a VC, the VC was entered 34 percent of the time
If VC was entered, it validated 97 percent of the time
Filing season 2018
Will continue as conducted in FS 2017
Form W-2 has box 9, “Verification code”
Will allow 1040 software to more effectively direct taxpayer to find the VC

52. Private Debt Collection
October 5, 2017

53. Private Collection Agencies
CBE Group
Conserve
Performant
Pioneer

54. Private Collection Agencies
Assign initial cases to agencies in the spring of 2017.
Covers tax debts owed that are currently not being worked by the IRS.
Agencies will work with the taxpayer and the representative to resolve the unpaid account.

55. Taxpayer Rights
Taxpayers working with agencies will have same rights as taxpayers working with IRS.
Agencies will be able to identify themselves as contractors of the IRS collecting taxes.
Private debt collectors will be expected to be courteous and respect taxpayers’ rights.

56. Efforts to Mitigate Scams
IRS will send taxpayer and rep written notice that it’s transferring their accounts.
Agency will send separate letter to taxpayer and rep confirming transfer.
Agency employees must follow Fair Debt Collection Practices Act.
Visit IRS.gov, “Tax Scams and Consumer Alerts” page

57. Scams (cont.) - Payments
Agencies won’t ask for payment on prepaid debit card.
Electronic payment options are on IRS.gov, Pay Your Tax Bill.
Checks payable to U.S. Treasury and sent directly to IRS, not private collection agency. 

58. More Information
Percentage of amount collected for program to hire/train IRS collection personnel
Revenue collected will be in addition to revenue coming in through IRS operations
Search "private debt collection“ on IRS.gov

59. SHARING ECONOMY
October 5, 2017

60. Contact Information
Alan Gregerson