American Payroll Association - GAINS

Georgia Accounting
Information Network Support
Sam Froio
Internal Revenue Service
Small Business/Self
Employed Div
IRS - 101
 What
event contributed to the first
Personal Income Tax Return?
Civil War
IRS - 101
 The
law requiring you to file a
Personal Income Tax Return was
repealed shortly after the Civil War.
 What event brought it back?
IRS - 101
Watch Us
People can view IRS YouTube
videos on their smartphones.
The videos provide short,
informative features on a
variety of tax topics. The
channel ranks 4th most
viewed channel among more
than 125 federal government
YouTube channels and is
available in American Sign
Get The Latest News
 With
this tool, users can
have the latest IRS news
releases delivered to their
phones as it becomes
Get My Tax Record
 Taxpayers
can now order
their tax return transcript
from the IRS2GO app.
The transcript will be
delivered via the U.S.
Postal Service to their
address of record.
FSLG Div. Assists With
Assistance through individualized
instruction focused on employment tax
withholding, reporting and filing
 Assistance for information return reporting
for payments to vendors.
 Guidance on any other federal tax-related
 Participation in educational seminars and
workshops at national and local levels.
Southeast Contact
Issue Management Resolution
 Provides
mechanism for raising
– IRS policies, practices and procedures
– Systemic problems
 Facilitates
issue identification,
resolution and feedback
Issue Submission
Gather all information
 Contact local stakeholder liaison staff
– Visit
– Search keyword “stakeholder liaison”
Elevating An Issue
 Is
it an IRS issue?
 Is clarification needed?
 Are policy or procedural changes
 How widespread is the issue?
Response and Resolution
 Direct
response from Stakeholder
 Changes to policy and practices
 Expanded education and outreach
 Monthly IMRS reports on
Problems processing tax returns of
H2-A visa workers
 Issue: A tax practitioner with a low
income tax clinic repeatedly receives
notices assessing self-employment tax
on H2-A visa workers. H2-A visa workers
are exempt under IRC 3121(b)(1). The
practitioner requests guidance on how to
prepare these returns to alert IRS of the
 Response:
Math error notices
were issued because a Schedule SE
was included with the return. A tax
return for an H2-A visa worker
should be filed in the following
manner: exclude Schedule SE; enter
"exempt, see attached statement" on
the Self-Employment Tax line of
Form 1040; and attach a statement
of explanation.
Search “IMRS” On IRS.GOV
 Hot
 IMRS monthly overviews
 Industry issues quarterly report
 Prior year issues sorted by subject
 Stakeholder Liaison local contacts
Emloyment Taxes Link
E-News for Payroll Providers
E-News for Payroll Providers
Anita Bartels
Program Manager for Employment
Tax Compliance
Veterans In The Unemployment
 Nationwide,
the unemployment rate
for veterans was 8.3% in 2011.
 Florida = 9.3%
 Georgia = 8.9%
Work Opportunity Tax Credit
An Employer-Friendly Benefit for Hiring
Veterans Most in Need of Employment.
 “Returning Heroes and Wounded Warriors
Work Opportunity Tax Credits,” amends
and expands the Veteran target groups.
The changes and new provisions in this
Act Apply to individuals who began to
work for an employer the day after its
enactment, November 22, 2011, and
before January 1, 2013.
The Vow to Hire Heroes Act of
 The
credit can be as high as $9,600
per veteran for for-profit employers
or up to $6,240 for tax-exempt
 Work Opportunity Tax Credit.
Certification Extension
Normally, an eligible employer must file
Form 8850 with the state workforce
agency within 28 days after the eligible
worker begins work. But according to
today’s guidance, employers have until
June 19, 2012, to complete and file this
newly-revised form for veterans hired on
or after Nov. 22, 2011, and before May
22, 2012. The 28-day rule will again apply
to eligible veterans hired on or after May
22, 2012.
SWA WOTC Coordinator
Brenda Young
Georgia Department of Labor
ATLANTA, GA 30303-1751
Phone: 404-232-3699
Fax: 404-232-3684
Factors To Consider
 Length
of Veteran’s unemployment
before hire.
 Hours the Veteran works.
 First year’s wages paid.
 Employers who hire veterans with
service-related disabilities may be
eligible for the maximum credit.
A Qualified Tax-Exempt
Is “an employer that is an organization
described in section 501(c) and exempt
from taxation under section 501(a).” An
agency or instrumentality of the federal
government, or of a state, local or Indian
tribal government, is not a qualified taxexempt organization unless it is an
organization described in § 501(c) that is
exempt from tax under § 501(a).
Claiming The Credit
 The
credit is claimed on Form 5884C against the employer’s share of
social security tax.
 It is recommended that employers
not reduce their employment tax
deposits in anticipation of the credit.
Identity Theft
Privacy at the IRS
 Security
and privacy of taxpayer
information is a priority for the IRS.
Through this, we maintain public trust
in tax administration. Our mission is
– Ensure security of IRS systems and proper
protection of personal information
– Prevent and detect cyber and other
– Educate on protecting information
Identity Theft is a Persistent
Threat to the American Taxpayer
Number one consumer complaint reported to
the Federal Trade Commission for 11 years in
a row – accounting for 19% of all complaints.
Javelin’s Identity Fraud Survey estimates 8.1
million victims of identity theft in the U.S. in
2010 – at a cost of $37 billion.
Incidents related to government benefits are
the most common form, more complex and
require more time and money to detect and
resolve. ‘Average’ victim spends 141 hours
and $2,104 out of pocket to resolve.
Committed to Resolving
Taxpayer Identity Theft
“My overall goal as the IRS Commissioner is that
when a taxpayer contacts us with an issue or
concern, we have in place a seamless process that
gets the issue resolved promptly.
From the perspective of an identity theft victim, that
means when the taxpayer calls the IRS that they
reach someone who is knowledgeable on the issue
and who is able to take care of the problem quickly
and permanently.”
Douglas H. Shulman,
Commissioner, IRS
Senate Finance Committee
April 10, 2008
Identity Theft Can Impact Taxes
Scenario 1: Refund-Related Crime
Identity thief uses stolen SSN to file forged tax
return and obtain refund early in the filing
season. Owner of SSN will be unaware until he
files and the IRS discovers two returns filed
using the same SSN.
If electronic return is rejected, it may be
because an identity thief has already filed a
fraudulent return.
Identity Theft Can Impact Taxes
Scenario 2: Employment-Related Crime
Identity thief uses a stolen SSN to obtain
employment. The IRS will receive a W-2 or a
Form 1099 from the employer reporting
income on the account of the rightful SSN
What the IRS is Doing…..
Placing identity theft indicators on taxpayer
accounts to track and manage incidents.
Notifying taxpayers when they are victims of
identity theft impacting their tax account.
Assisting taxpayers who are victims of identity
theft. The Identity Protection Specialized Unit
was established as the central point of contact for
taxpayers who had their identity stolen.
Using business filters to analyze returns filed on
identity theft victim accounts designed to accept
legitimate returns and reject false returns.
What do Identity Theft Indicators
They prevent victims from facing the
same problems every year.
Identify and track tax related identity theft
Distinguish legitimate from fraudulent
Measure the problem, monitor victims’
accounts and develop processes to resolve
Identity Theft Indicators
What else do the identity theft indicators
Reflect different types of identity theft…
 Refund-related
identity theft
 Employment-related
 No
identity theft
filing requirement
 Lost
my wallet
Taxpayer Accounts
Marked with Indicators
Number of taxpayers’ accounts marked with
an identity theft indicator has increased
significantly over the last four years.
Identity Theft Indicators - Taxpayers Impacted
2008 to 2011
Notifying Identity Theft Victims
 When
the IRS places an identity theft
indicator on a victim’s account, a
notification letter is sent to them.
 Notification
letter provides the
– Information on the incident
– Statement that taxpayers account has been
reviewed, adjusted and resolved
– Additional information on how to protect
– Toll free number to contact the IRS if victims
have questions or concerns
Identity Protection Specialized
The IPSU is staffed with specialists in
tax-related identity theft. IPSU staff
assist callers in resolving identity theft
– Toll free – 800-908-4490 Available Monday - Friday, 8 am –
8 pm local time, for taxpayers to talk to IPSU staff when
their tax account is affected by identity theft
– Taxpayers can self-report they are victims before it affects
their tax account
– Taxpayers can submit documentation to substantiate their
identity and verify being a victim of identity theft using the
IRS identity theft affidavit (Form 14039)
Tax Return Review
Identity theft indicators direct tax
returns in future years through a
series of filters.
– Tax returns filed using the victim’s SSN
pass through filters to ensure only
legitimate returns are processed
– Questionable returns are reviewed to
determine legitimacy – and rejected if
Identity Theft Resources
Go to, keyword ‘identity theft’
IRS works closely with other organizations:
– Federal Trade Commission – the lead Federal agency
on identity theft. You can file an identity theft complaint
online with them.
– OnGuard Online – Joint
government site maintained by FTC, IRS, SSA and others
to help consumers with identity theft issues.
– Identity Theft Resource Center – Nonprofit, national
organization dedicated exclusively to understanding and
prevention of identity theft.
Identity Theft Resources (cont.)
Publication 4535, ID Theft
Prevention and Victim Assistance
 Free
Credit Reports –
– Equifax
– Experian
– TransUnion
If You Are an Identity Theft
Contact all of the following:
 Financial
institutions where you have
an account
 The
three credit bureaus
 Police
to file a police report
 Federal
Trade Commission to file a
Thank You!
 Sam
 Internal Revenue Service
 904-665-0776