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Tag: tax updates

Navigating the Proposed Changes to Circular 230: What Tax Professionals Need to Know

Posted on by Giavante' Hawkins

The Department of the Treasury and the Internal Revenue Service (IRS) have recently proposed significant updates to Circular 230, the regulations governing practice before the IRS. These changes aim to modernize the rules to better align with current tax practice and technological advancements.

Key Proposed Changes:

  1. Removal of Obsolete Provisions: The proposed regulations suggest eliminating sections related to registered tax return preparers and outdated tax return preparation guidelines, reflecting legislative changes since the last amendments in 2011 and 2014.
  2. Contingent Fees: Updates are proposed to the rules concerning contingent fees to align with current laws and practices.
  3. Technological Competency Requirement: Recognizing the increasing reliance on digital tools, the proposed regulations would mandate that practitioners maintain technological proficiency as part of their practice before the IRS.
  4. Clarification of OPR Jurisdiction: The proposed changes clarify that the IRS Office of Professional Responsibility (OPR) retains jurisdiction over practitioners who have been suspended or disbarred, ensuring continued oversight of professional conduct.
  5. Appraiser Standards: The regulations propose establishing clear standards for appraisers, including criteria for disqualification, to ensure the integrity and accuracy of valuations submitted to the IRS.

Implications for Tax Professionals:

These proposed updates underscore the importance of staying informed about regulatory changes and maintaining competencies, especially in technology, to provide effective representation before the IRS. Tax professionals should review these proposed changes in detail to understand their potential impact on practice standards and compliance requirements.

For more information, refer to the IRS announcement:

Internal Revenue Service

Important Updates In Response to COVID-19

Posted on by Navaal Mahdi

Maryland Income Tax Deadline Extended to July 15, 2020 | Comptroller of Maryland

Following yesterday’s press conference from the White House where it was announced there would be a 90-day extension of the April 15th deadline for federal income tax payments, Maryland Comptroller Peter Franchot has announced that Maryland business and individual income taxpayers will be afforded the same relief. No interest or penalty for late payments will be imposed if 2019 tax payments are made by July 15, 2020.

“Right now, Maryland taxpayers and businesses must stay focused on their health and keeping their lights on, both in their homes and businesses,” Comptroller Franchot said. “Extending the due date for Maryland state individual and business income tax payments helps us keep cash flowing in our economy and into employees’ bank accounts.”

Taxpayers who take advantage of the federal extension to file their return, which is separate from the relief granted today to pay their taxes, will continue to be automatically granted an extension on their Maryland tax filings. No additional extension forms are required. Fiscal year filers with tax years ending January 1, 2020, through March 31, 2020, are also eligible for the July 15, 2020 extension.

Read the press release here.

 

White House Announces 90 Day Relief on Tax Payments

During the White House daily press conference yesterday, Treasury Secretary Steven Mnuchin announced that tax payments up to $1 million for individuals can be deferred for 90 days.

The $1 million threshold was chosen for those who report pass-through business income on their individual return. Corporations are able to defer up to $10 million in tax payments. Penalties and interest that would otherwise apply during this nearly three-month period will be waived.

Americans who can file taxes by the April 15 deadline should file normally. Refunds will not be affected for those who file.

 

COVID19 and the CPA Exam | NASBA

NASBA, AICPA, Prometric and the Boards of Accountancy (Boards) have been monitoring the COVID19 crisis and have taken the following actions to ensure the health and safety of our CPA Exam candidates.

Effective immediately, Prometric will close test centers in the United States and Canada for a period of 30 days. They anticipate re-opening test centers on April 16, 2020, however, please note the specific date will depend on circumstances that are changing daily. No action is required on the part of the candidate. Prometric will cancel scheduled appointments and clear the Notices to Schedule (NTS) for candidates to reschedule at their convenience.

NASBA has recommended that the Boards of Accountancy extend all NTS with expirations between April 1 – June 30, 2020, until September 30, 2020. At this time, no action is required by candidates and there is no need to contact NASBA or your Board of Accountancy. Please monitor our social media channels and website for updates on when the NTS extensions are completed.

NASBA will identify all candidates who have an open NTS and credit expiring through June 30, 2020, and provide this information to Boards with a recommendation to grant an extension of credit if the candidate is impacted by circumstances beyond their control. Due to shutdowns of many board offices, the decisions to extend conditional credit will not be finalized until Boards resume normal operations. There is no need to contact Boards at this time.

The best way to contact NASBA during this time is via email at cpaexam@nasba.org.

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