Tax Season Opens As Planned Following Extenders Legislation

Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.

The IRS will begin accepting tax returns electronically on Jan. 20. Paper tax returns will begin processing at the same time.

The decision follows Congress renewing a number of "extender" provisions of the tax law that expired at the end of 2013. These provisions were renewed by Congress through the end of 2014. The final legislation was signed into law Dec 19, 2014.

"We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems," IRS Commissioner John Koskinen. "Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season."

The IRS reminds taxpayers that filing electronically is the most accurate way to file a tax return and the fastest way to get a refund. There is no advantage to people filing tax returns on paper in early January instead of waiting for e-file to begin.

More information about IRS Free File and other information about the 2015 filing season will be available in January.

IRA Rollovers Clarified

It is well known that a taxpayer does not have to pay tax on a trustee-trustee transfer of an IRA into another IRA.  It is also well know that an IRA distribution is not taxable if the distribution is rolled into an IRA within 60 days of the distribution.  It is also well known that a taxpayer can only perform such a rollover once every 365 days.  It also has been a known fact that the once-every-365-days applies only to the two IRA accounts involved in the rollover and a taxpayer could still do another rollover as long as it involves two other IRA accounts.  This position was in IRS Publication 590 and IRS regulations.

IRS challenged Mr. Bobrow (TC Memo 2014-21) who performed multiple rollovers in a tax year even though no rollover involved a tainted account.  Basically IRS argued its own regulations and Publication 590 were an incorrect interpretation of the Internal Revenue Code.  Tax Court ruled in favor of IRS stating the restriction applies to all of the taxpayer’s IRAs as if they were one IRA.  Basically Tax Court said a rollover from one of a taxpayer’s IRA accounts to another of the taxpayer’s IRA accounts restricts the taxpayer from performing such a rollover for the next 365 days regardless of what IRA accounts were involved.  Now IRS is rewriting the regulation and Publication 590 to match Tax Court’s position.  IRS has generously said it will not enforce its new regulations on any rollover that takes place before January 1, 2015.

NOW THE LATEST information can be found in Announcement 2014-32.  We’ll present the main issues numerically:

Happy Holidays From MA/RI NATP

Happy Holidays from your Massachusetts/Rhode Island Board of Directors.

Hope to see in Sturbridge on January 8th, 2015 for our State Update Seminar!

Section 263(a)-1(f) De Minimus Safe Harbor Elections

What Is A Section 263(a)-1(f) De Minimus Safe Harbor Election? Why Is It Important? And, What Also Must Be Done (If Anything)? By William Delaney, EA

The IRS has issued regulations and procedures dealing with the expense, repair, or capitalization of various types of assets, materials and supplies.  As a result, we must advise all of our clients who claim depreciation and/or write-off such purchases as a business expense that they need to do something, specifically adopt an accounting method which is permitted under the new regulations and make an election to do so.

IRC Section 263A was originally enacted in 1986 and amended a number of times over the years, most recently in 2005.  It is, at least in the eyes of the Internal Revenue Service, the operative guide to what is permitted and/or allowed regarding expense v. capitalization.

IRC Section 263A(i) includes this language:  “The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section…”  This is a directive, by the Congress to the Secretary of the Treasury, to write regulations (shall prescribe) applicable to a particular Code section.  IRC Section 263 (which predates Section 263A by many years) does not have any similar language.

Reg. 1.263(a)-1 – Capital expenditures; in general. -  appears to be written under the authority of IRC Section 263A(i).  This would appear to allow the Secretary of the Treasury the authority to “carry out the purposes” of Code Section 263A, which may include defining an accounting method change.  See the general rule as contained in IRC Section 446(e) - requirements respecting change of accounting method.  Regulation 263(a)-1(g) excludes the safe harbor election method change (see below) from the need to obtain accounting method change approval by stating that this is not an accounting method change.  This appears to be a reinterpretation of Code Section 446(e).

Code Section 446, however, does not provide for any delegation of authority.

Now comes Regulation Sec. 1.263(a)-1(f) which provides for a safe harbor election available for our clients who do not have “applicable financial statements” which are, essentially financials which are submitted to the SEC and/or are “certified audited” by a CPA or a foreign equivalent.  The annual election is made on an original return filed by the due date, including extensions.  The election, or failure to make one, is irrevocable.

Regulation 1.263A-1(k) defines and explains that this type of action is a change in accounting method and requires advance approval from the IRS in accordance with Code Section 446(e).  See also Reg. 1.446-1(e)(3)(ii) which sets out the authority for the IRS to establish administrative procedures (i.e. use of Form 3115) for obtaining the required approval.  The procedures are outlined in Rev. Proc. 2011-14.

William Delaney, EA
Westwood, MA

Rev. Proc. 2014-16 modifies Rev. Proc. 2011-14 (issued to outline the Code Section 446 requirements) and changes the automatic (if applied for) accounting change approval to the extent that a Section 263 Election action does not rise to the level of an accounting method change.  If that is so, there is no need to file a Form 3115.
At this point, if you are totally confused, so am I.  There is more than enough contradictory information for this writer to conclude that the only prudent course to follow  to protect clients who are making this election is to also make a one-time filing of Form 3115 and invoke an automatic consent provision under Rev. Proc. 2011-14.  This appears to be a change #8 under Part I, 1(a) of Form 3115 and would require some boiler plate explanation under Part II, 12 and 13, and Part III, 18.  It does not seem that the remainder of the form need be completed.

A sample safe harbor election (for internal accounting record use) is attached.  Many preparers plan to use a more detailed format.  Most professional software packages already have a boiler plate format available for attachment to the actual return.  We are unable to provide guidance as to what will be acceptable by the IRS.



Internal Expense/Capitalization Policy for Books & Records And Financial Statement Preparation

This will confirm our formerly unwritten policy which has been and continues to be that a capital asset is a unit of property with a useful life exceeding one year and a per unit acquisition cost exceeding $500.  Such capital assets will be depreciated over their useful lives.

Tangible assets with a cost not to exceed $500 are expensed in the year of purchase.

Invoices substantiating such purchases are retained for a minimum of seven years for assets expensed in the year of purchase, and for the useful life of a capital asset which is subject to depreciation over a period of years.



_________________                           ___________________________________
      Date                                                             Name of Entity        



                                                              ___________________________________
                                                                       Authorized Signature      

IRS Scheduled System Maintenance Starting November 22, 2014

Individual (1040) returns cannot be filed between November 22nd and sometime in January

Each year, the IRS shuts down e-file temporarily for a maintenance period.  After 10 am on November 22nd, 2014, IRS will stop processing individual (1040) income tax returns.  Transmissions for 2012 and 2013 returns will resume sometime in January 2015, or in accordance with the start-up of the filing season for 2014 returns.  2011 returns can no longer be e-filed after this shut down.  IRS supports 3 years at a time.

Because of the extended period of time, which will be approximately 2 months, most software companies will not be accepting files during this period.

NOTE:  This does not apply to business returns at this time.  The tentative date for shut down of business e-file is 12/26/2014.

Minimum Wage and Unemployment Wage Base Changes for 2015

Did you know…the MA unemployment tax wage base for 2014 is $14,000, but it will increase to $15,000 as of 1/1/2015.  The RI wage base (for rates other than the maximum) is currently $20,600. The 2015 rate has not been announced.

For 2015, the MA minimum hourly wage will increase to $9.00; for 2016, the minimum will be $10.10; for 2017, the minimum will be $11.00 (highest state rate in the nation). The MA minimum hourly tip worker wage will increase in increments from $2.63 to $3.75 by 2017.

For 2015, the RI minimum hourly wage will increase to $9.00.

RI Governor Chafee and RI DLT Announce Repayment 6 Months Early of the Federal Unemployment Insurance Loans

Providence, RI—Governor Lincoln D. Chafee joined Rhode Island Department of Labor and Training (DLT) Director Charles J. Fogarty on today at DLT in Cranston to announce repayment of the funds the state borrowed to cover Unemployment Insurance (UI) benefit payments.

Since March 2009, the U.S. Treasury has loaned our state $905 million to assist unemployed Rhode Islanders through the recession. With the final payment of $2,690,368.70 to the U.S. Treasury six months early, businesses will save more than $50 million in 2015 – including $36 million in Federal Unemployment Tax Act (FUTA) payments and $14.5 million in interest assessment taxes. Rhode Island's 32,000 employers — who pay for the Unemployment Insurance Trust Fund (UITF) — will save $45 million more in FUTA taxes in 2016.

"This is a big win for Rhode Islanders and our business community," Governor Chafee said. "In 2011, my administration faced a huge challenge with an insolvent Unemployment Insurance system, an existing UI loan and a lack of a plan to repair the system or repay the loan. By borrowing from Treasury, we spared the business community the burden of repaying the loan. That was our only course of action acceptable to me."

In January of 2011, Governor Chafee requested Director Fogarty develop a balanced UI repayment plan that made the UITF solvent, eased the tax burden on employers; aligned our benefit structure with Connecticut and Massachusetts; and built the required reserves in the UITF to lower the UI tax payment schedule. The FY 2012 state budget adopted by the General Assembly included this UI repayment plan that would be phased in over three years.

"Nobody liked the overhaul plan. We really had to sell it," Director Fogarty said. "Claimants didn't like the changes we were making to their wage replacement rate and employers didn't like the additional contributions that were asking them to make. The only way for the plan to work was to appeal to shared sacrifice."

Currently, DLT projected that in 2019 the UITF will reach the required reserve level, which will allow the State UI Tax Schedule to drop Rhode Island from the highest bracket for the first time since 1992. When this occurs, dropping one tax schedule will save R.I. employers an additional $21 million annually.

In an August 2011 report, the National Employment Law Project (NELP) recognized two states out of the more than 30 states that borrowed federal money as having dealt with their UI system crises head-on. "Only Colorado and Rhode Island this year implemented effective financing reform, by raising and indexing their taxable wage bases, and by requiring that contributions into their trust funds be based on the amount businesses draw in benefits," the NELP reported.

It added: "Rhode Island also enacted harsh changes to its benefit calculation formula that will result in that state's wage replacement rate falling from among the best in the nation to the middle of the pack."

The Cohan Rule is Still Alive and (Sort Of) Well, At Least Some of the Time

Submitted by William Delaney, EA of Westwood, MA

William Delaney, EA

George M. Cohan was a well-known entertainer in the1920s and 1930s.  He traveled across the U.S. and in many foreign countries.  He did not maintain good business records; sometimes he maintained no business records at all.  In a well publicized decision issued in 1930, the 2nd Circuit Court of
Appeals allowed a portion of Cohan’s poorly documented travel related expenses based upon credible testimony and the obvious fact that if he earned income while appearing at physical location X he must have incurred some expense in traveling to and residing temporarily at physical location X. Thus we have the Cohan Rule.  See Cohan v. Commissioner, 39 F. 2nd 540 (2nd Cir. 1930).

Many years later, the IRS decided to limit the application and impact of the Cohan Rule and it issued temporary regulation 1.274-5T (effective for taxable years beginning on or after 1/1/1986).  This “temporary” regulation is still the applicable guideline.

Under the regulation, “…no deduction or credit shall be allowed with respect to---(travel, entertainment, gifts, listed property [editor’s insert])…unless the taxpayer substantiates each element of the expenditure or use…in the manner provided in paragraph (c) [i.e. the substantiation requirements – editor’s insert]…This limitation supersedes the doctrine found in Cohan v. Commissioner…”

IRS Quarterly Interest Rates Remain Same for 4th Quarter 2014

IRS has announced the interest rates for the 4th quarter of 2014.  The rates remain the same across the board as:

-        3% for most overpayments (2% for corporation overpayments)
-        3% for underpayments
-        5% for large corporate underpayments
-        0.5% for corporate overpayments exceeding $10,000

These rates have not changed since October 1, 2011, and now continue through December 31, 2014.

Revenue Ruling 2014-23


This text has been shared with you courtesy of:  David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111).  davidmellem@yahoo.com, davidmellemea@yahoo.com, marymellem@yahoo.com, marymellemea@yahoo.com.

©2014 Ashwaubenon Tax Professionals.  No reproduction of this article is permitted without the express written consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way, Suite 1040, Green Bay, WI  54304.

We do not sell, give, or in any way share email addresses with anyone.  If you would like to be removed from our email list, send us an email to that effect or use the word UNSUBSCRIBE in the subject line.  If someone else would like to be added to our list, have them send us an email to that effect or use the word SUBSCRIBE in the subject line.

Another Large Charitable Contribution Fails for Lack of Substantiation

Submitted by William Delaney, EA of Westwood, MA

If you would like to have, at your side, a primer dealing with how one must document and support a charitable contribution deduction, take a look at a very recent Tax Court case, Thad DeShawn Smith v. Comm., TC Memo 2014-203 (10/2/2014).  After reading this you would wonder why the taxpayer bothered to incur the costs associated with bringing this to court---why would he think that he had a shot at winning?

William Delaney, EA

The Court found that Mr. Smith failed to meet the substantiation requirements for any of his contributions (although the Court believed that some, at least, had been made), so all were disallowed!

One thing which jumped out at me was a discussion of clothing, furniture and electronic equipment donated to the AMVETS.  It is not unusual for such organizations to pick-up your donations and leave a signed, but blank receipt.  Often the receipts are not dated.  The donor would then complete the description area or attach a detailed listing.  The donor might also insert a date.

The Court commented that the AMVETS receipts did not contain a “…description…of any property…contributed.”  Because this type of form is signed in advance (i.e. before the actual donation takes place) the court wondered if they rise to the level of an acknowledgement by AMVETS that it received anything.  Lastly, the only evidence that this form was a contemporaneous receipt was the date which the donor himself inserted.  How much weight would one give to a donor inserted date?

The Court ruled that this “receipt” was insufficient to meet the substantiation requirements of the Code.  Your editor must confess that he has accepted this type of receipt, along with a donor prepared listing of the donations, as adequate substantiation for contributions of $250 or more.  The Court is telling us, however, that such a receipt does not meet the substantiation requirements.

2015 PTIN Renewal Period Underway for Tax Professionals

Renew or Sign up Now

WASHINGTON —The Internal Revenue Service today reminded the nation’s more than 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2015. All current PTINs will expire Dec. 31, 2014.

Anyone who prepares or helps prepare any federal tax return or claim for refund , for compensation must have a valid PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared.

“We ask that you renew your PTIN as soon as possible to avoid a last-minute rush, ,” said Carol A. Campbell, director, IRS Return Preparer Office. “It’s easy to let this slip as the holiday season approaches.”

For those who already have a 2014 PTIN, the renewal process can be completed online and only takes a few moments. The renewal fee is $63. If you cannot remember your user ID and password, there are online tools to assist you. Preparers can get started at www.irs.gov/ptin.

If you are registering for the first time, the PTIN application fee is $64.25 and the process may also be completed online.

Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal, is available for paper applications and renewals, but takes four to six weeks to process. Failure to have and use a valid PTIN may result in penalties. All enrolled agents, regardless of whether they prepare returns, must have a PTIN in order to maintain their status.

Issuance of ‘Annual Filing Season Program – Records of Completion’ to begin

PTIN holders who renew their PTIN for 2015 and have met the continuing education requirements for the new voluntary IRS Annual Filing Season Program will be contacted by the IRS with instructions on how to elect to participate and print their Annual Filing Season Program - Record of Completion.

TOMORROW!!! 2014 Annual Meeting & Seminar - Register at the Door

Massachusetts / Rhode Island NATP Chapter Annual Meeting & Educational Seminar October 28th 2014

Join the Massachusetts / Rhode Island NATP Chapter on Tuesday, October 28th, 2014 for our Annual Meeting & Educational Seminar. This all day event will be held at the Holiday Inn in Mansfield, MA. Take a look at the details on our speaker and topics provided in this great 8 CE Hour opportunity including continental breakfast, snacks, lunch, vendors and great networking opportunities.This seminar is limited to the First 100 Registrants!

Seminar Check in is 7am-7:45am. Seminar runs 7:45-4:40.

• After October 27, please register at the door.

Speaker - Mary Mellem, EA

Mary has 30 years experience as a Tax Professional and 21 years
experience teaching tax programs throughout the country. She and
her husband operate Ashwaubenon Tax Professionals. Mary holds a
Bachelor Degree in Secondary Education from the University of
Wisconsin in the field of Mathematics and Economics. In 1990, she
received the Enrolled Agent designation. Mary is a member of the
NAEA and the NATP.


Bankruptcy

Overview of bankruptcy laws and taxes ~ Taxes and their dischargability ~ Preparation of the tax return(s) for the individual who files bankruptcy: Short Years, Carryovers of capital losses, NOLS, and other attributes.  IRS #JSAQG-T-00010-14-I

HSAs

What are HSAs and who qualifies? ~ How are HSAs established? ~ Contributions to the HSA ~ Distributions ~ Rollover ~ Employment Issues ~ A Hidden IRA.  IRS #JSAQG-T-00011-14-I

Schedule D & Form 8949

Stocks and Bonds ~ Mutual Funds ~ Wash Sales ~ Equity Options (puts, calls) ~ Stock Options.  IRS #JSAQG-T-00012-14-I

Audit Proofing Business Returns

Covers areas IRS has indicated it will be examining and what taxpayers need to have to justify information on tax returns.  IRS #JSAQG-T-00013-14-I

Special Offer for the January 8, 2015 State Update Seminar

Sign up on October 28, 2014 and pay by November 10, 2014 for ½ Price 

2015 IRA and Pension Plan Limitations Announced

The 2015 IRA and pension plan limitations have been announced.  Below are some of the more common amounts.

The defined benefit plan limitation remains at $210,000 (same amount applicable for 2014).

The defined contribution plan maximum increases to $53,000 (up from $52,000 for 2014).

The annual compensation limit for most employer contributions increases to $265,000 (up from $260,000 for 2014).

A year of service for SEP coverage increase to $600 (up from the $550 applicable for 2014).

The maximum elective deferral for §401(k), §403(b), §457, and SARSEPs increases to $18,000 (up from $17,500 applicable for 2014).  The catch up contribution limit for those aged 50 or older as of the end of the year increases to $6,000 (up from $5,500 applicable for 2014).

The maximum elective deferral to SIMPLE plans increases to $12,500 (up from $12,000 applicable for 2014).  The catch-up maximum increases to $3,000 (up from $2,500 applicable for 2014).

The maximum contribution to IRAs remains at $5,500.  The catch-up for IRAs is not subject to annual indexing and remains at $1,000.  The modified AGI phase-out ranges for 2015 will be:
$61,000-$71,000 (up from $60,000-$70,000 applicable for 2014)
MFJ = $98,000-$118,000 (up from $96,000-$116,000 applicable for 2014)

Roth IRA AGI phase-out limits increase to $116,000-$131,000 (up from $114,000-$129,000 applicable for 2014).  For MFJ these amounts are $183,000-$193,000 (up from $181,000-$191,000 applicable for 2014).

The IRS Notice also has the other pension related indexed amounts such as key employee, top heavy, and “control employee” limits.

A copy of Notice 2014-99 can be found at www.irs.gov/pub/ by clicking on irs-news and then clicking on IR-14-99.


UPCOMING SEMINARS LISTED BELOW

This text has been shared with you courtesy of:  David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111).  davidmellem@yahoo.com, davidmellemea@yahoo.com, marymellem@yahoo.com, marymellemea@yahoo.com.

©2014 Ashwaubenon Tax Professionals.  No reproduction of this article is permitted without the express written consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way, Suite 1040, Green Bay, WI  54304.

We do not sell, give, or in any way share email addresses with anyone.  If you would like to be removed from our email list, send us an email to that effect or use the word UNSUBSCRIBE in the subject line.  If someone else would like to be added to our list, have them send us an email to that effect or use the word SUBSCRIBE in the subject line.

UPCOMING SEMINARS:

October 28 – Massachusetts/Rhode Island Chapter of National Association of Tax Professionals in Mansfield, MA.  Mary is presenting Bankruptcy, HSAs, Schedule D & Form 8949, and Audit Proofing Business Returns.  For more information go to www.massrinatp.org .

November 7 & 8 – Oregon Association of Tax Consultants.  David & Mary will be presenting Schedules K1 (S corporation, partnership, trust, estate) and basis, Corporation Liquidation, Schedule A Nuances, HSAs, Elections, and Net Operating Losses.  For more information go to http://www.oatc-oregon.org/Portland/ .

November 10 – Utah Chapter of National Association of Tax Professionals in the Larry Miller Center at the Salt Lake Community College in Sandy, UT.  David is presenting Patient Protection and Affordable Care Act (i.e., ObamaCare); Schedules L, M1 and M2; and Audit proofing business returns.  For more information go to www.natptax.com, click on Chapters, NATP Chapters, and Utah.

More details will be in future emails regarding the additional seminars listed below:
January 7, 2015 – Southeast Chapter of Wisconsin Association of Accounts for 4 CPE hours from 1pm-5pm.  Federal and Wisconsin Tax Update

January 9, 2015 – Wisconsin Society of Enrolled Agents for 8 CPE hours.  Federal and Wisconsin Tax Update.

Tax Preparer Seminar

The Rhode Island Division of Taxation is holding a seminar for tax preparers. The chief focus of the seminar will be what’s new for the coming filing season and what’s new in state tax law, including the property-tax relief program (Form RI-1040H), the estate tax, and corporate taxes. There’ll also be an update on Notices that the Division of Taxation sends to taxpayers.

The seminar is aimed at paid preparers of Rhode Island income tax returns and is free of charge, but preregistration is required. The first session will be at CCRI’s Newport campus, in Newport, on November 6 from 9:00 a.m. to Noon. For those unable to make the Newport session, the seminar will be repeated in a session at CCRI’s Knight Campus in Warwick on December 3 from 9:00 a.m. to Noon. Click here for the seminar flier and for more information about registration.

Home Office Deductions and Substantiation Requirements

William Delaney, EA
Westwood, MA

Taxpayer (Miller) was the only New York state based employee of BIW (employer), a company located in California.  Since the employer did not have office or other work space in NY, BIW asked Miller to work out of her home.  On its website, Miller’s address was listed, along with Miller’s phone number.  The taxpayer lived in a studio apartment which was one large room divided into three equal sections, one of which was used almost exclusively (more on this later) for BIM’s business operations.

At issue were various business expenses deducted on Miller’s 2009 return (Schedule A)
which totaled $34,933 against wages income of $48,680.  Matters were complicated by Miller’s testimony that she lost most of her business records when she moved to another apartment in 2011.  As a result, all of her 2009 expenses were disallowed by the IRS due to lack of substantiation.  [See Reg. 1.274-5T(c)(2)]

At trial, Miller admitted that she used portions of the office space for non-business purposes.  The Court found, however, that this personal use was de minimis and due to the practicalities of living in a small studio apartment.  She was, therefore, allowed a deduction for one-third of her rent and cleaning service charges.

Miller paid TimeWarner Corporation for a package consisting of cable television, telephone, and internet access.  Since the cable television was exclusively personal use, its cost was excluded.  Applying the Cohan rule, the Court found that one-half of the telephone cost was for local service (no deduction under Sec. 262(b) for the basic cost of the first phone) and could not be deducted.  The Court allowed a deduction for the remainder as business use.

The Court accepted as credible Miller’s testimony that she used wireless internet 70% for business, and found that the strict substantiation requirements of Sec. 274(d) were not applicable (see Noz v. Comm., TC Memo 2012-272).

Miller was unable to substantiate her utility expense with invoices and/or receipts, so no deduction was allowed.  Cohan could not be applied.  Likewise, she was unable to substantiate her cellular phone charges [which are subject to the substantiation requirements of Sec. 274(d)] because a cell phone (at that time) was listed property
and she could not produce invoices and/or receipts.

Lastly, and this is outside of the office in home issue, Miller was required to dress appropriately for BIW sponsored events which she attended.  She purchased three evening dresses at a total cost of $2,093 which she wore exclusively at employer sponsored events.  Since the cocktail dresses did not resemble a uniform, nor was she required by her employer to wear a uniform, the dresses were found to be suitable for personal use.  No deduction allowed.

Lauren Elizabeth Miller v. Comm., TC Summary Opinion 2014-74 (7/28/14)

RI Interest Rates Posted for 2015

The Rhode Island Division of Taxation has posted the interest rates that will apply for 2015 on overpayments and delinquencies. The rates are based on a formula set in statute.

The rates for the 2015 calendar year are the same as those that apply for the 2014 calendar year: 18% per annum on delinquent tax payments, 3.25% per annum on overpayments.

A complete listing of rates by year, can be viewed on the RI Division of Taxation website.

Final Regulations Under Sec. 162 Provide New Safe Harbor Rules For Certain Local Lodging Expense

The cost of local lodging is generally for the convenience of the employee and does not qualify as a business expense unless the employee reports the cost as additional compensation income.

Generally, an employee or self-employed person is not away from home (for purposes of qualifying the expense as a deduction) unless he is away overnight.

Under new Reg. l.162-32(b), the IRS has established a safe harbor rule for when local lodging expenses may qualify as ordinary and necessary (Section 162) expenses.  It’s a four part test.  All four parts must be in place.

1. The lodging is necessary for the individual to participate fully in or be available for a bona fide business meeting, conference, training activity, or other business function.

2. The lodging is for a period which does not exceed five calendar days and does not recur more frequently than once per calendar quarter.

3. If the individual is an employee, his employer requires him to remain at the activity or function overnight.

4. The lodging is not lavish or extravagant under the circumstances and does not provide any significant element of personal pleasure, recreation or benefit.

There are many situation specific examples in the new regulations.  One in particular
[Reg. 1.162-32(c) Example 5] has to do with someone who normally commutes two hours each way from home to work and return.  The employer wished to have the employee available for extra hours because of a special project, so the employee was provided with hotel accommodations for a period of time.  The IRS concluded that this provided a personal benefit to the employee (she was relieved of her long, daily commute) and was taxable to her as additional compensation.

See T.D. 9696, 9/30/2014; Reg. 1.162-32, Reg. 1.262-1

MA DOR Public Hearing September 23, 2014

NOTICE OF PUBLIC HEARING

Pursuant to the provisions of General Laws Chapter 14, Section 6(1), Chapter 30A, Section 2, and Chapter 62C, Section 3, the Commissioner will hold a public hearing on the following proposed regulation amendment and repeals:

830 CMR 62C.19.1:  Extensions of Time for Filing Returns (repeal)
830 CMR 62C.31A.1:  Responsible Persons (amendment)
830 CMR 62C.37A.1:  Settlement of Tax Liabilities (amendment)
830 CMR 65C.1.1:  Administrative Provisions for Estate Tax (repeal)
830 CMR 65C.2.1:  Massachusetts Gross Estate (repeal)
830 CMR 111M.2.1:  Health Insurance Individual Mandate; Personal Income Tax Return Requirements (amendment)

Scheduled Hearing Date:

Tuesday, September 23, 2014 at 10:00 A.M.
100 Cambridge Street, 2nd Floor, Conference Room A
Boston, Massachusetts 02114

Subject Matter:

830 CMR 62C.19.1:  The regulation explains the circumstances under which taxpayers may be granted an extension of time to file income tax, corporate excise and estate tax returns.  The regulation is being repealed because it is outdated and does not reflect current electronic filing methods.

830 CMR 62C.31A.1:  This regulation describes the procedure for the assessment of taxes upon and the collection of taxes from responsible persons, persons under a duty to pay over certain trustee and use taxes owed by a corporation, partnership or limited liability company.  This proposed amendment extends the statute of limitations period for the collection of taxes from six years to ten years, as well as clarifies that any question relative to a responsible person determination before the Department, the Appellate Tax Board, or any court at the end of the collections period will extend the collections period for an additional year after the final determination of the question.

830 CMR 62C.37A.1:  This regulation explains the Department’s procedures for the settlement of tax liabilities authorized under the provisions of M.G.L. c. 62C, § 37A.  This proposed amendment to section (3)(c) requires taxpayers to extend the waiver of the running of the statutory period of limitations on collection of the tax for an additional period ending two years after the due date of the last payment.  This change has been announced previously in DOR forms instructions and administrative procedures.

830 CMR 65C.1.1:  This regulation explains the administrative provisions of the Massachusetts estate tax that were applicable to the estates of decedents dying on or after January 1, 1986 and before January 1, 1997.  The regulation is being repealed because it is obsolete.

830 CMR 65C.2.1:  The regulation explains the property included in the Massachusetts gross estate for the computation of the Massachusetts estate tax that was applicable to the estates of decedents dying on or after January 1, 1986 and before January 1, 1997.  The regulation is being repealed because it is obsolete.

830 CMR 111M.2.1:  Under the Massachusetts Health Care Reform Act, a resident is required to indicate whether he or she has health insurance on his or her Massachusetts personal income tax return.  A resident who has access to affordable coverage but who does not obtain the coverage, and to whom an exception does not apply, is subject to penalties under M.G.L. c. 111M, § 2 which will be imposed through the individual’s personal income tax return.  For tax years beginning on or after January 1, 2014, the federal Affordable Care Act instituted a federal mandate on individuals to obtain and maintain health insurance. While both Massachusetts and federal health care reform include this individual responsibility requirement, there are differences associated with the penalties imposed.  For tax year 2014 and subsequent years, to ensure that no taxpayer is subject to the aggregation of both the state and federal penalties, this proposed regulation provides an adjustment in the circumstance where an individual is subject to both the federal and the Massachusetts penalties.

Information:

Amy Pitter
MA DOR Commissioner of Revenue

A copy of the proposed regulation will be sent electronically via e-mail to practitioners who are on the Rulings and Regulations Bureau's e-mail list.  In addition the proposed regulation is posted on the Department of Revenue's Web site at: http://www.dor.state.ma.us/rul_reg.  Hard copies of the proposed regulation may be obtained from the Rulings and Regulations Bureau, Post Office Box 9566, Boston, Massachusetts 02114-9566.  Written comments in advance of the hearing are encouraged and should be sent to the Rulings and Regulations Bureau.  Alternatively, comments may be emailed to RulesandRegs@dor.state.ma.us or faxed to 617-626-3290.  All persons desiring to be heard on this matter should appear at the designated time and place.

Rhode Island Business Coalition Commends Recent Business Climate Reforms

The Rhode Island Business Coalition released a report commending the General Assembly for passing business friendly legislation in the 2014 session, including reducing the corporate tax rate, switching to combined reporting, and removing the estate tax "cliff," and encouraged further reforms to address the state's deficit.

Below is the PDF

RI Business Coalition Report

Massachusetts DOR Explains Limited Amnesty Program

What You Need to Know About the Tax Amnesty Program

A provision in the FY15 Massachusetts state budget establishes a tax amnesty program for two consecutive months during the 2015 fiscal year for certain tax types.

Only individual and business taxpayers who receive a Tax Amnesty Notice from the Massachusetts Department of Revenue (DOR) will be eligible for the amnesty program, which applies to certain existing individual and business tax liabilities that were stated on a Notice of Assessment issued by the Commissioner on or before July 1, 2014.

The amnesty program will run from September 1, 2014 to October 31, 2014 but will not extend to individuals and businesses that have already paid all tax and interest amounts due and only owe penalties, those that have signed settlement agreements with the Commissioner, or those who are determined to have been the subject of tax-related criminal investigations or prosecutions prior to or during the amnesty program. Also, any taxpayer that delivers or discloses or has delivered or disclosed any false or fraudulent application, document, return or other statement in connection with the amnesty program will not be eligible for amnesty and will be subject to the greater of: (i) applicable penalties under G.L. c. 62C; or (ii) a penalty not to exceed $10,000.

If you qualify for this tax amnesty and pay your taxes and interest in full, the Department will waive all associated penalties. showing the tax and interest due, along with the penalties to be waived, will be mailed on September 2, 2014 to taxpayers who qualify. If you pay the tax and interest shown on the bill on or before October 31, 2014, the Commonwealth will waive the unpaid penalties for the period.

More details on the MA DOR Amnesty program can be found online here

Upcoming Rhode Island Small Business Seminars and Trainings

These seminar and training sessions offered through the RI Division of the US Small Business Administration may be of interest to you and/or your clients. Our Chapter is in no way affiliated with any of these offerings.

Thursday, September 4

Export Express Grant Program (U.S. Small Business Administration and Commerce RI – 315 Iron Horse Way in Providence from 8:30-10:30am and is free of charge.  To register, please email providence.ri@sba.gov or call 401-528-4561):

The Export Express Grant program provides funding to Rhode Island companies for customized export training programs, including business plan development, market entry strategies, export logistics, international trade show development, certification training and foreign language training.  Eligible Rhode Island companies may apply for up to $5,000 in matching funds to address their international training needs. Consortiums may receive additional funding.

The International Trade Office will work with businesses to develop customized training to fit their export needs. Companies may implement training in the following areas: International Business Plan Development; Market Entry Strategies; Export Logistics; International Business Development Mission/ Trade Show Development; Language Training.



Financing Strategies:  Learn from the Experts (Center for Women & Enterprise – 132 George M. Cohan Boulevard in Providence from 4:00 – 6:00pm.  Fee for workshop is $50.  Partial scholarships may be available to those who qualify.  To register, visit www.cweonline.org or call 401-277-0800):

If you are in the process of launching a new business, or thinking about starting one, this panel discussion will help you to understand the variety of financing options available to you as a new business owner.  The discussion will focus on strategies to raise funds as well as what investors and lenders look for when making financing Decemberisions.  The panel can have but not limited to the following experts:

• Angel investor
• A micro-credit lender
• A banker
• A crowd-funding expert
• An entrepreneur with experience raising funds

We will begin with a brief introduction and overview of services from each panelist followed by a panel discussion and Q &A with audience.



Legal Considerations for New Business Owners (Center for Women & Enterprise – 132 George M. Cohan Boulevard in Providence from 6:00 – 8:00pm.  Fee for workshop is $50.  Partial scholarships may be available to those who qualify.  To register, visit www.cweonline.org or call 401-277-0800):

This workshop provides a high level overview of a range of legal issues that entrepreneurs should be aware of when starting their company.  Attend this workshop to learn how to avoid common mistakes and employ preventative measures that can protect and ensure the success of, your new business.

Workshop topics will include:

Entity formation
• Contract Basics
• IP Considerations
• Licenses and regulations

After the workshop, participants will have the opportunity to sign up for a one on one consultation regarding their specific business legal concerns through the Center for Women and Enterprise’s one on one consulting program.


Friday, September 5

Is Entrepreneurship Right for You? (Center for Women & Enterprise – 132 George M. Cohan Boulevard in Providence from 6:00 – 8:00pm and is free of charge.  To register, visit www.cweonline.org or call 401-277-0800):

Attend this workshop and Decemberide whether starting your own business is right for you.  As part of this workshop, you will:

• Explore the process and learn about the risks and rewards of starting up your own business
• Conduct a self-assessment that will help you Decemberide if business ownership is right for you
• Hear success stories of women who have worked with CWE and are now thriving in the business world
• Get an overview of various resources at CWE and elsewhere to help you move forward with your business idea and succeed
• Have the opportunity to schedule an individualized consultation with a CWE Program Manager

RI Tax Preparers to Face New Compliance

The Rhode Island Division of Taxation has proposed a regulation involving penalties that may be imposed on paid tax preparers who fail to comply with due diligence requirements.

Regulation PIT 14-23 would help to implement a state law enacted in June 2013 that established specific penalties -- civil and criminal -- for paid preparers who prepare Rhode Island returns with the intent to wrongfully evade or reduce a tax obligation. (See Rhode Island General Laws Chapter 44-68.)

A public hearing on the regulation is scheduled for 9:30 a.m. on Wednesday, September 17, 2014, at the Rhode Island Division of Taxation, One Capitol Hill, Providence, R.I.

Also at that hearing, the Division of Taxation will take public comment regarding two regulations that are scheduled for repeal because the underlying statutes have been repealed: Regulation CT 88-09, “Business Corporation Tax/Net Worth Tax,” and a regulation which was related to the study of combined reporting, Regulation CT 11-15, “Combined Reporting (pro forma).”

Highlights From NATP Annual Conference

Chris Miarecki

Compliments of Christine Miarecki, Immediate Past President of the Chapter, here are some highlights from the NATP Annual Conference held in Orlando last week.

There were 7 members from the Board of Directors there on Sunday to attend the Leadership Sessions held prior to the opening of the conference.

One of the most interesting sessions informed us that the IRS has formed a new division which is now auditing the groups who offer education. The National Office has already been audited and it appears the state chapters will also be audited over the next 2-3 years. The scope of what they are looking for is that procedures are in place and being followed regarding attendance, speaker qualifications, etc.

Since our programs must be approved by the IRS we know our speakers are highly qualified and we are following the requirements for attendance. We need your cooperation to make our programs run smoothly. We must have your PTIN and you must sign in for the sessions in order to receive your credits. These are the regulations which the IRS has put in place so please understand that we need to follow these rules or run the risk of losing our ability to offer education seminars. Thank you for your understanding and cooperation.

As usual all of the classes that were offered for the week were excellent , great instructors who are so knowledgeable and so willing to answer questions. It is so difficult to chose what sessions to attend but somehow every day was filled and by Thursday afternoon my head was a jumble of information to be sorted out slowly.

I highly recommend attending the National Conference, it is a wonderful opportunity for education and more importantly meeting fellow preparers from all over the country. It is also good to hear that your problem clients are not unique and it helps to hear how others handle those situations that cross our desks daily.

Another issue that ran throughout the whole conference was office security and keeping your clients information protected. This is an area that the IRS is also looking at, making sure preparers are following the regulations to protect their clients.

Well those are some of the highlights, hope to see you in October at our Annual Chapter Meeting and Education Session in Mansfield.

I am happy to answer any questions or hear your ideas for our Chapter, National Conference or general information.

2015 National Conference will be held in New Orleans, please give some thought to attending you will not be sorry. This was my 10th conference, first was Boston and I was hooked.

Enjoy some photos!

Orlando Marriott Resort - View From Room Balcony

Orlando Marriott Resort - Storm Rolling In

"Reaching Your Summit" Leadership Session

"Reaching Your Summit" Leadership Session

Massachusetts Lawmakers Approve Angel Investor Tax Credit

The Massachusetts legislature on August 1 approved an omnibus economic development bill that would create an angel investor tax credit as a way to encourage investment in small businesses.

The conference report of H 4377  also would restructure the state's research and development credit, create a tax credit for pre-Broadway shows, and establish a two-day sales tax holiday.

The Democrat-controlled legislature approved H 4377 as one of its final acts of this year's formal legislative session: The House enactment vote was 144 to 9; the Senate's was 40 to 0. The bill now goes to Gov. Deval Patrick (D), who has previously indicated his support for specific provisions of the bill.

In a statement issued August 1, House Speaker Robert DeLeo (D) said the bill ensures that residents, businesses, and communities "are able to compete and excel in a dynamic, global economy. I'm particularly proud and encouraged by the initiatives that will broaden the circle of economic prosperity beyond Greater Boston to all regions of the Commonwealth."

Senate President Therese Murray (D) said in the statement, "This bill makes many investments in our

MA DOR kicks off Small Business Initiative with Practitioners

Practitioners work with small businesses every day and many run their own small businesses.  So, they were the perfect group to start with to gather information.  We kicked off the 2014 Small Business Initiative with a statewide tour to meet with members of the Mass Society of CPAs and then launched an online crowdsourcing challenge with practitioners across the state.  DOR is reviewing the material collected during the tour and challenge and taking actions based on the feedback. Practitioners gave us great information to help launch the initiative and engage small business owners in conversation about their needs.
 

What We Learned

DOR took the information learned from practitioners during the statewide tour and through the crowdsourcing challenge and plans to ask small businesses to expand upon the information so DOR ends up with a well-rounded understanding of their needs. Here are some of the comments DOR received from practitioners:

New Business Clients:

Practitioners wanted to know if there was a way the agency could be alerted when a small business is formed so that it can increase education and outreach efforts. Practitioners would like DOR to provide informational emails for new business clients.  They also suggested a new business webpage explaining tax obligations. DOR is looking at each of these suggestions and will follow up with ideas.

Rulings & Regulations:

Participants suggested that when an email communication on a tax matter is sent out, a basic description of what it is, how it affects taxpayers and forms involved should be included.  Many practitioners said having examples were very helpful. DOR recently changed the format for email communications to provide a quick summary of the highlights of the information to make it easier for readers to determine the significance to them.  Whenever possible, more examples will be included.  

Notices:

Practitioners have asked that DOR clarify what actions taxpayers should take upon receiving a notice, including how to make a payment. They also requested that notices include an obvious indication of what year it relates to.  It was suggested that notices be available electronically and/or emailed to taxpayers and practitioners. DOR is in the process or reviewing all notices that are sent out and making revisions to keep taxpayers better informed of the reason for the notice and the actions they need to take.    There will be a great number of options available within the new tax system that is currently being developed.  

Website:

Practitioners would like the Guide to Sales Tax to be available in PDF form. They also suggested that DOR send out information about the most popular topics or a ‘tip of the week’ including links with more information on the subject. DOR is currently working to make website navigation quick and easy. Currently the Taxpayer Advocate posts TIPS on the website.

Efiling:

Practitioners also suggested DOR send an email notice to a taxpayer prior to money being withdrawn from an account for a scheduled tax payment if possible. DOR is looking into its efiling system capabilities based on these suggestions.

Customer Service:

Practitioners suggested that customer service hours are staggered during tax season to help with the number of calls. Both extended hours and a practitioner hot-line are under discussion in conjunction with the phased-in implementation of our new IT system.  

Collections:

Practitioners encouraged DOR to review its collections processes in an effort to maximize revenue collections while still ensuring fair practices. Practitioners also believe taxpayers need to further understand their options and the process involved for claiming hardship. DOR is working on new content for the “How Do Collections Work” webpage to explain the collections process and help taxpayers better understand their options if they cannot pay a bill.

Audit:

Practitioners believe having desk auditors available in district offices where practitioners and their clients could stop by with records for review would be beneficial. DOR is examining the feasibility of scheduled visits by auditors to district offices.

Abatements:

Practitioners were asked if they or their clients have utilized the online CA6 or amend a return/abatement option.  Practitioners suggested that confirmations be issued or that checking the status of an application online be considered.  Additionally, they would like to know the reason an application is denied. DOR plans to look into ways to enhance the online abatement process to makes it even easier for taxpayers and practitioners to use. The agency is also discussing ways to let taxpayers and practitioners know the specific items in the abatement that have been denied before a case hearing is scheduled.

Surveys:

Practitioners asked about DOR surveys.  Some had a concern about their comments going directly to auditors.  DOR surveys are an important resource for practitioners and small business owners to speak directly to DOR.  The Taxpayer Advocate reviews all responses and reports directly to the Commissioner on the issues and concerns. Responses to surveys taken from the website survey page

1099 Withholding:

Practitioners asked for a solution to requests for copies of 1099s every year in order to credit money from the same taxpayer. DOR is looking into other ways to verify information for consecutive years.

Power of Attorney:

Practitioners with Power of Attorney for their clients would like to receive copies of all notices sent to clients. While not possible in the current tax system, this will be a goal for the future.

McKinney Walker Plan - Putting Connecticut Taxpayers First Eliminates Income Tax for Middle Income Workers

Recently, our neighboring state of Connecticut gubernatorial candidate John McKinney (R) released his proposed fiscal plan to balance the fiscal 2016 budget, reduce spending by $1.4 billion, phase out the 10 percent business surcharge tax, and eliminate the income tax for filers under $75,000 in fiscal 2017.

Candidate for Governor, Senator John McKinney and Lt. Governor Candidate, Former U.S. Comptroller General Dave Walker unveiled their plan to put Connecticut taxpayers first.

“When elected, we will introduce a budget plan that balances without new taxes or borrowing by making real spending reductions,” said Senator McKinney. “We believe that Connecticut taxpayers deserve a better deal.”

The McKinney-Walker proposed plan will:

• Reduce the FY2016 budget with $1.4 billion in spending reductions and nonew taxes or new borrowing.
• Balance the FY2016 budget to guarantee the clothing and footwear sales tax exemption and the phase-out of the 10% business surcharge tax.
• Eliminate the income tax for filers under $75,000 in FY2017.

Governor Malloy added $3 billion in new state spending, raided trust funds, increased borrowing, and imposed the single biggest tax hike in Connecticut history.

“He has no more tricks up his sleeve. With a stagnant economy and a sweetheart deal with union bosses, he simply can’t solve the problem,” said Dave Walker. Sen. McKinney remarked - Tom Foley claims he can solve the problem by flatfunding and dodges questions about how this would work by saying he “just
won’t let anything go up.”

John McKinney (L) & David Walker (R)

“His approach doesn’t even exist in reality. Tom’s either hiding some plan or doesn’t understand the budget. Either way - his approach lacks the candor and honesty that are needed to solve the problem. Connecticut residents are anxious about the future and want major change,” added Sen. McKinney.

The McKinney Walker Team, believe in addition to giving Connecticut taxpayers a better deal, the state’s business and industry leaders deserve a stable fiscal and economic environment. Walker said, “When the state’s fiscal house is in order businesses will have stability and taxpayers will have relief.”

“We believe that state government has an obligation to provide both,” added Sen. McKinney.

To read more about the plan please visit www.McKinneyforGovernor.com

Massachusetts DOR: Tax Amnesty Set for September, October 2014

The Massachusetts Department of Revenue has provided information about a tax amnesty program established in the state's fiscal 2015 budget (H 4242); the amnesty is set for September and October and notices will be mailed on September 2 to qualifying taxpayers.

What You Need to Know About the Tax Amnesty Program

A provision in the FY15 Massachusetts state budget establishes tax amnesty program for two consecutive months during the 2015 fiscal year for certain tax types.

What is this tax amnesty program?

When you don't pay your taxes in full when they are due, interest and a variety of penalties continue to be assessed until payment in full is received by the DOR. If you qualify for this tax amnesty and pay your taxes and interest in full, the Department will waive all associated penalties.

What are the dates for the tax amnesty program?

The tax amnesty will take place during the months of September and October, 2014.

How do I participate?

Tax amnesty notices showing the tax and interest due, along with the penalties to be waived, will be mailed on September 2, 2014 to taxpayers who qualify. If you pay the tax and interest shown on the bill on or before October 31, 2014, the Commonwealth will waive the unpaid penalties for the period. Please note that the amnesty only applies to assessments that were on the books prior to July 1, 2014.

What types of taxes are eligible?

The tax types that are eligible for this amnesty program include:

• Boat and recreational vehicle sales tax
• Cigarette, cigar and smoking tobacco excise
• Convention Center Financing Fees (CCF) on rooms, parking and tours (applicable locations)
• Club alcoholic beverage excise
• Gasoline excise
• Individual income tax
• Materialman sales tax
• Meals tax, including local option
• Room occupancy excise, including local option
• Sales and use tax
• Special fuels excise

MA / RI NATP Chapter Annual Meeting & Seminar Details and Registration

2014 Annual Meeting & Seminar

Massachusetts / Rhode Island NATP Chapter Annual Meeting & Educational Seminar October 28th 2014

Join the Massachusetts / Rhode Island NATP Chapter on Tuesday, October 28th, 2014 for our Annual Meeting & Educational Seminar. This all day event will be held at the Holiday Inn in Mansfield, MA. Registration details are below, and will be handled online by National this year. Take a look at the details on our speaker and topics provided in this great 8 CE Hour opportunity including continental breakfast, snacks, lunch, vendors and great networking opportunities. This seminar is limited to the First 100 Registrants!

• To register by phone, fax or mail, click for the registration form.
• For online registration with credit card, click here.
• After October 27, please print the form (see link above) and register at the door.

Speaker - Mary Mellem, EA

Mary has 30 years experience as a Tax Professional and 21 years
experience teaching tax programs throughout the country. She and
her husband operate Ashwaubenon Tax Professionals. Mary holds a
Bachelor Degree in Secondary Education from the University of
Wisconsin in the field of Mathematics and Economics. In 1990, she
received the Enrolled Agent designation. Mary is a member of the
NAEA and the NATP.


Bankruptcy

Overview of bankruptcy laws and taxes ~ Taxes and their dischargability ~ Preparation of the tax return(s) for the individual who files bankruptcy: Short Years, Carryovers of capital losses, NOLS, and other attributes.  IRS #JSAQG-T-00010-14-I

HSAs

What are HSAs and who qualifies? ~ How are HSAs established? ~ Contributions to the HSA ~ Distributions ~ Rollover ~ Employment Issues ~ A Hidden IRA.  IRS #JSAQG-T-00011-14-I

Schedule D & Form 8949

Stocks and Bonds ~ Mutual Funds ~ Wash Sales ~ Equity Options (puts, calls) ~ Stock Options.  IRS #JSAQG-T-00012-14-I

Audit Proofing Business Returns

Covers areas IRS has indicated it will be examining and what taxpayers need to have to justify information on tax returns.  IRS #JSAQG-T-00013-14-I

Special Offer for the January 8, 2015 State Update Seminar

Sign up on October 28, 2014 and pay by November 10, 2014 for ½ Price 

Request From the Massachusetts DOR Taxpayer Advocate

As the 2014 tax filing season approaches, DOR is preparing for the annual review of our major tax forms and we want your input.  For example, we want to know if there is anything in the instructions for Form 1 or Form 1-NR/PY that you find unclear. And, we want to hear about other forms that you think could be improved.  Please send an email to taxadvocate@dor.state.ma.us and tell us what form, and the specific line item or instruction, that caused confusion or uncertainty.  With your help we can improve the filing process.

Please send your suggestions for improving any process at DOR to the Taxpayer Advocate.  Our stakeholders offer useful solutions for the issues they report to us and we want to hear yours.

Regards,

Dennis Buckley
DOR Taxpayer Advocate