2016 preparing for an irs auditppnewpdf - calt · • an audit can be concluded in four ways: –...
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Preparing for an IRS Audit
Kristy MaitreTax SpecialistCenter for Agricultural Law and TaxationJuly 28, 2016
What is an IRS audit?
• An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is being reported correctly, based on the tax laws, and to verify the amount of tax reported is substantially correct
Does the IRS ever contact a taxpayer or the tax preparer via e‐mail to initiate an audit?
• The IRS does not contact an individual via e‐mail for an initial appointment
• Contact related to being selected for an audit will be made via mail only
• The IRS will still send a letter confirming the audit
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IRS Agent Preparation
• Review the return• Will generally pull all information documents and compare
to the return, W‐2, 1099 etc. even K‐1 information• They will review the prior two years looking for highs and
lows and changes in reporting• They will identify the issues they want to review• They will determine the depreciation methods and verify
they are correct• They will prepare an Information Document Request (IDR)• If there is an NOL or carryforward of a credit, they may ask
for documentation to support the amount• They may ask for a copy of prior year returns• Depending on the issue they could ask for additional
information
Appointment
• The letter will request a time where the auditor can begin the audit
• It will advise the client of the right to representation
• This is where you come into the picture
Notice/Letter
• Your client will receive a CP75 notice when IRS notifies them of the audit ‐Campus
• The client may also just receive a letter from the Tax Compliance Officer (TCO) ‐ (office audit) or the Revenue Agent (RA) – this is generally the procedure for audits outside the campus
• We will center on these types of audits today
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Audit Methods
• An audit may be conducted by mail or through an in‐person interview and review of the taxpayer's records ‐ Campus
• The interview may be at an IRS office (office audit) or at the taxpayer's home, place of business, or accountant's office (field audit)
• The IRS will tell you what records are needed• Audits can result in no changes or changes• Any proposed changes to your return will be
explained
Proposed Changes
• Should be based on law
• Do your research if you disagree
• If the auditor disallows/makes an adjustment based on case law or other reason it is not unreasonable to ask for that information
Can you request the audit be conducted at the IRS office instead of at your place of business?
• If the audit has been scheduled to be conducted at your location, it will generally be conducted where the books and records are located
• Requests to transfer the audit to another location, including an IRS office, will be considered but may not be granted
• Treasury Regulation 301.7605‐1(e), Time and place of audit, discusses the items considered when a request for a change in location is made
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Audit Selection
• Selecting a return for audit does not always suggest that an error has been made
• Returns are selected using a variety of methods, including:– Random selection and computer screening ‐ sometimes returns are selected based solely on a statistical formula
– Document matching ‐ when payor records, such as Forms W‐2 or Form 1099, don't match the information reported
• Related examinations ‐ returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit
Clients Rights During an Audit
• Publication 1, Your Rights as a Taxpayer, explains the clients rights as a taxpayer as well as the examination, appeal, collection, and refund processes
• These rights include:– A right to professional and courteous treatment by IRS
employees– A right to privacy and confidentiality about tax matters– A right to know why the IRS is asking for information, how the
IRS will use it and what will happen if the requested information is not provided
– A right to representation, by oneself or an authorized representative
– A right to appeal disagreements, both within the IRS and before the courts
Audit Length
• The length of each audit varies depending on:
– The type of audit
– The complexity of items being reviewed
– The availability of information being requested
– The availability of both parties for scheduling of meetings and
– Your agreement or disagreement with the findings
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Audit Determinations
• An audit can be concluded in four ways:– No change: an audit in which you have substantiated all of the items being reviewed and results in no changes
– Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes
– Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes
– Agreed in Part/Disagree in Part
Requested Records Efficiently Organized
• It is important that all records are present, available, and separately identifiable at the audit location in advance of the audit
• The requested information should be organized in a manner that will allow for quick and easy review
• You should not wait for the agent to arrive to begin locating or pulling records that have been requested unless mutually agreed between the agent and you or your representative
Requested Records Efficiently Organized
• It is also helpful to have the records labeled or tabbed to coincide with the Information Document Request (IDR) attached to the appointment letter
• Having records pulled and organized will help to ensure the audit process is more efficient and may lessen the time an agent will need to spend either at the audit location or in any required follow up appointments
• The longer the agent works on the audit the deeper they can probe
• Copying of any documents is not needed unless specifically requested by the agent either prior to or during the audit
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Agent Request
• The auditor may request to take records to review
• Make sure you get some sort of document from the agent to confirm the receipt
• It is best to provide copies of the records requested and mail later or deliver later
Records
• It is important that all records are present, available, and separately identifiable at the audit location in advance of the audit
• Prepare for the audit based on the Information Document Request (IDR) Form 4564
• Review the IDR for the issues the IRS would like to address– Bank statements for the year of the audit as well as January of the next year and December of the previous year, may be requested
Bank Records
• Income Audit
– Get all bank account information for all accounts
– Do a bank deposit analysis
– Identify each source of the deposits
– Identify transfers
– Does the client reconcile their bank accounts
– If client uses debit card, match with the copy of the receipt for the category identified in the IDR
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Bank Records
Bank Statement
Bank Statement
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Bank Statement
Bank Statement
Bank Statement
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Bank Statement
Bank Statement
AnalysisWhere Did the Deposits Come From?
• Deposits Total = $4,803.79
– Deposit $ 200.00
– Overdraft Protection $ 80.12
– Transfer $2,475.91
– Paycheck $1,560.26
– Transfer $ 150.00
– Overdraft Protection $ 37.50
– Transfer $ 300.00
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Bank Anaylsis
Issues of ConcernAuditor May Have Questions
• Mixing of Personal and Business on one bank statement
• Golf Balls• South Dakota Trip – no details: was a charge card
used, is there another bank account, business use defined?
• IRS payment what is that for? Estimates • Definition of the Insurance?• Overdraft Protection Fee ‐ % business/%personal• No Hotels : Credit Card statements/cash• Is there a Materials and Supplies Capitalization policy?• Has and Form 3115 been filed?
Issues of ConcernAuditor May Have Questions
• Be aware of large deposits and have that information available if a question arises
• Generally an RA audit looks at income and large ticket items
• An office audit – generally the items are more general and often specified (classification) in the campus or by the Tax Compliance Officer
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The Requested Information should be Organized in a Manner that will allow for Quick and Easy Review
• Review the IDR– Have documentation that ties to the tax return, invoice, bank entry or copy of cancelled check – for each issue
– Some information only the source document will do– Make sure the information matches what is on the return
– If you have any discrepancies, or mistakes it is generally better to point these out up front and acknowledge this to the auditor
• There are two thoughts to this issue– Make the auditor work for it – audit lasts longer and generally they may dig deeper
– Point out up front and provide an explanation, auditor may accept
The Requested Information should be Organized in a Manner that will allow for Quick and Easy Review
• If you need more time, explain why and request a reasonable date to provide the information
• The auditor will decide to expand the audit based on information from the first audit year
Key Points to Remember
• Tie all figures and identify unknowns
• The auditor has up to 40+ cases in inventory, the time spent with your audit should be all inclusive as possible WHY?
• More information available to address issues– Faster closing of case – Auditor may be able to conclude case
– Less time billed to client
– Auditor with a large inventory may not get back to your case for weeks
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You should not wait for the agent to arrive to begin locating or pulling records that have been requested unless mutually agreed between the agent and
client or you the representative
• Once you receive the IDR start gathering information
• Do not be surprised if auditor expands into other issues
• Look at the large amounts first, smaller amounts last unless the IDR specifies
It is also helpful to have the records labeled or tabbed to coincide with the Information Document Request (IDR) attached
to the appointment letter
• Be organized
• If something is missing – reconstruct as needed
• Folders or labels work well
• Having records pulled and organized will help to ensure the audit process is more efficient and may lessen the time an agent will need to spend either at the audit location or in any required follow up appointments
Interview
• The answers are – Yes
– No
– I will need to check or find
– Clients have a tendency to babble, the agent will pick up on little things
– Have prepared explanations ready on issues where the auditor may ask for clarification
– Volunteering information many times leads to expanded audits – not always – but it happens
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Interview Will Include
• Tell about your business or investments• When did the business start and are you still in business?• Did you issue any Form 1099 for contract labor?• Method of Accounting• Any special elections• Do you use professional software to track income and
expenses?• How often do you do the books?• If inventory, how was the ending inventory determined• Credits – question about energy efficient issues, or
information concerning education credits or earned income credit
Form 4564
Form 4564
• IRS Form 4564, Information Document Request, generally arrives with Letter 2205 or Letter 3572 as the first step of an IRS field audit
• Form 4564 can request your QuickBooks or other software records ‐ doubtful
• IRS Form 4564 looks simple but offers an opportunity for self‐incrimination – KIS
• My experience is that clients are over compliant, sometimes opening up additional audit issues
• While the information requested on Form 4564 should already exist, the compressed timeline of a field audit may not allow it to be presented optimally – planning is the key
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Push
• IRS auditor are trained to GET IN AND OUT
• Compressed timeframes are a disadvantage to the representative – planning can change that to an advantage
• Auditors generally do not expect the client to be prepared – BE PREPARED
• Do a Pre‐Audit of the issues on the IDR
• Remember IRS is not a friend
Summons and Other Tools
• IRS can summons
– Records
– The business owner to be interviewed
– The individual to be interviewed
– Can check with third parties to verify information
– Can request to visit the place of business
– Required to work with the client or representative on a time table and the date of the audit
Other Issues
• IRS should not threaten and should respect the client and your right to represent the client
• If your client does not responded to the audit letter they will receive a report that generally will disallow all credits and deductions that cannot to proven via information documents
• Lack of response also results in a 90 day notice of deficiency and tax assessment
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Other Issues
• Be professional, there is always a way to keep the feathers smooth
• Remember the agent is there to do a job, they just happen to jump off on your planet –don’t stall and do question if you have a strong foundation in the issue
Other Issues
• Statute extensions– 3 Year Period: This is the standard amount of time that the IRS
has to legally audit most tax returns– 6 Year Period: If the income on the tax return was understated
income by 25% or more the statute of limitations to audit the return can be extended by another 3 years
– Unlimited Time Period: If the tax return was filed with the intent to commit fraud then the statute of limitations can be extended to forever
– There is a fine line between fraud and negligence and this only applies to tax fraud
– The IRS must prove fraud in these types of cases and typically will only do this if a lot of money is involved or it is a high profile tax case.
State Return
• IRS has agreements with state tax authorities to share audit information
• If adjustments are made on the federal amend the state and vice versa
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Review
• You will aid your client and the time frame of the audit doing a pre‐audit
• Only present the information requested
• Advise your client on how to address questions
• Be upfront and forth coming with information requested
• Request law documentation as needed
• Case law could become important
Circular 230
• Watch for compliance with Circular 230
• 10.20 Information to be provided
• 10.21‐10.37 Due Diligence rules
Due Diligence
• A paid preparer should make adequate inquiries to be satisfied that the taxpayer is carrying on a business and that the income and expenses reported on the tax return are substantially correct and complete.
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The ShoeBox Audit
Clients Duty to Keep Records
• In filing tax returns or other documents with the IRS, taxpayers are under a duty to keep and maintain books and records that will substantiate the accuracy of their filed documents
• Tax law includes both general and specific recordkeeping responsibilities
• A failure to adhere to these can result in the loss of favorable tax treatment, the disallowance of deductions, tax deficiencies and, often, penalties
• When records are lost, destroyed in a casualty or stolen, some relief is possible, but only after satisfying tough burden‐of‐proof and reconstruction requirements
Methods Available for IRS Use
• Source and Application of Funds
• Bank Deposits and Cash Expenditures Method
• Markup Method
• Unit and Volume Method
• Net Worth Method
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The Source and Application of Funds Method
• An analysis of a taxpayer’s cash flows and comparison of all known expenditures with all known receipts for the period
• Net increases and decreases in assets and liabilities are taken into account along with nondeductible expenditures and nontaxable receipts
• The excess of expenditures over the sum of reported and nontaxable income is the adjustment to income
Bank Deposits and Cash Expenditures Method
• In summary, income is proven through a detailed, in‐depth analysis of all bank deposits, cancelled checks, currency transactions, and electronic debits, transfers, and credits to the bank accounts AND identification of the taxpayer's cash expenditures
• The Bank Deposits and Cash Expenditures Method is distinguished from the Bank Account Analysis by: – The depth and analysis of all the individual bank account transactions, and
– The accounting for cash expenditures, and
– Determination of actual personal living expenses
Markup Method
• The Markup Method produces a reconstruction of income based on the use of percentages or ratios considered typical for the business under examination in order to make the actual determination of tax liability
• It consists of an analysis of sales and/or cost of sales and the application of an appropriate percentage of markup to arrive at the taxpayer’s gross receipts
• By reference to similar businesses, percentage computations determine sales, cost of sales, gross profit, or even net profit
• By using some known base and the typical applicable percentage, individual items of income or expenses may be determined
• These percentages can be obtained from analysis of Bureau of Labor Statistics data or industry publications. If known, use of the taxpayer’s actual markup is required
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Markup Method
• The Markup Method is a formal indirect method that can overcome the weaknesses of the:– Bank Deposits
– Cash Expenditures Method
– Source and Application of Funds Method, and
– Net Worth Method
• These methods do not effectively reconstruct income when cash is not deposited and the total cash outlays cannot be determined unless volunteered by the taxpayer
Unit and Volume Method
• In many instances gross receipts may be determined or verified by applying the sales price to the volume of business done by the taxpayer
• The number of units or volume of business done by the taxpayer might be determined from the taxpayer’s books as the records under examination may be adequate as to cost of goods sold or expenses
• In other cases, the determination of units or volume handled may come from third party sources
• This method for determining the actual tax liability has been effectively applied in carry out pizza businesses, coin operated Laundromats, and mortuaries
Net Worth Method
• The Net Worth Method for determining the actual tax liability is based upon the theory that increases in a taxpayer’s net worth during a taxable year, adjusted for nondeductible expenditures and nontaxable income, must result from taxable income
• This method requires a complete reconstruction of the taxpayer’s financial history, since the government must account for all assets, liabilities, nondeductible expenditures, and nontaxable sources of funds during the relevant period
• The theory of the Net Worth Method is based upon the fact that for any given year, a taxpayer’s income is applied or expended on items which are either deductible or nondeductible, including increases to the taxpayer’s net worth through the purchase of assets and/or reduction of liabilities
• The taxpayer’s net worth (total assets less total liabilities) is determined at the beginning and at the end of the taxable year. The difference between these two amounts will be the increase or decrease in net worth. The taxable portion of the income can be reconstructed by calculating the increase in net worth during the year, adding back the nondeductible items, and subtracting that portion of the income which is partially or wholly nontaxable
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Premium Tax Credit Verification
Form 14050Premium Tax Credit
Form 14050Premium Tax Credit
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Keep your Health Insurance Documents with Your Tax Records
• Gathering documents and keeping well‐organized records make it easier to prepare a tax return
• IRS may need to verify insurance coverage at a later time
• The information forms are:– Form 1095‐A, Health Insurance Marketplace Statement
– Form 1095‐B, Health Coverage– Form 1095‐C, Employer‐Provided Health Insurance Offer and Coverage
Forms Are Not Required to be Sent to IRS with the Tax Return
• The taxpayer does not need to send these forms to IRS as proof of their health coverage with the filing of the return
• However, they should keep any documentation with their other tax records
• This includes records of the family’s employer‐provided coverage, premiums paid, and type of coverage
• They should keep these – as they do other tax records – generally for three years after they file the tax return
Forms Are Not Required to be Sent to IRS with the Tax Return
• When preparing the tax returns, most people will simply have to check a box to indicate they and everyone on their tax return had health care coverage for the entire year
• They will not need to file any additional forms, unless they are claiming the premium tax credit or a coverage exemption
• In which case, they will use Form 8962, Premium Tax Credit, or Form 8965, Health Coverage Exemptions.
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Issues to Be Aware Of
• Taxpayer needed to keep records of health coverage
• Form 14050 is used by IRS to verify coverage
• Certain documentation will need to be provided
• The taxpayer may need to contact the Marketplace
Documents
• Records showing the names of the individuals for whom they are claiming for the Premium Tax Credit for their Marketplace coverage
• These records can include copies of insurance enrollment forms, invoices, or statements from the insurance providers
• Proof that the taxpayer paid health insurance premiums– Acceptable documentation includes copies of both sides of cancelled checks, paid receipts, certificates of group health plan coverage, credit card statements, or bank records showing direct debit of the payments
Supporting Form 8962 Entries Part IV
• Premium Tax Credit, regarding the shared policy allocation
– (1) Allocated Policy Number
– (2) Allocation SSN
– (3) Allocation Percentages
– (4) Allocation Start/Stop months
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Supporting Form 8962 Entries Part V
• Premium Tax Credit, Alternative Calculation for Year of Marriage
– (1) Alternative Family Size
– (2) Alternative Start/Stop months
– (3) Date of marriage
1099‐K Audits
• Form 14420, Verification of Reported Income
What is Form 1099‐K?
• Form 1099‐K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions
• The taxpayer should get a 1099‐K by the end of January if, in the prior calendar year, they received payments:– From payment card transactions (e.g., debit, credit or stored‐value cards) in settlement of third‐party payment network transactions above the minimum reporting thresholds of
• Gross payments that exceed $20,000, AND• More than 200 such transactions
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What is Form 1099‐K?
• Collectively, all payment card transactions and all third‐party payment network transactions (once the threshold amounts have been met) are referred to as reportable payments or transactions
• NOTE: The thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third‐party network; there is no threshold for payment card transactions
What is a Third Party Settlement Organization?
• A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network
• Characteristics of a third party payment network include:– The existence of a central organization with whom a substantial
number of providers of goods and services (who are unrelated to the central organization) have established accounts
– An agreement between the central organization and the providers to settle transactions between the providers and purchasers
– The establishment of standards and mechanisms for settling such transactions, and
– The guarantee of payment in settlement of such transactions
Example
• Under § 6050W of the Internal Revenue Code, payment settlement entities (merchant acquiring entities and third party settlement organizations) must report payment card and third party network transactions
• This reporting requirement began in early 2012 for payment card and third party network transactions that occurred in 2011
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Did the Taxpayer Receive a Letter Related to 1099‐K from the IRS?
• The taxpayer could receive one or more of the letters we will discuss next because they may have underreported gross receipts
• This is based on a comparison of the tax return and the Form(s) 1099‐K furnished to them that shows an unusually high portion of receipts from 1099‐K reportable transactions
• It is very important that the taxpayer respond to the IRS
• The current versions of the letters are reflected but these are periodically updated
Current Latters
Consider
• Sales from all sources, including goods and services, are properly accounted for in gross receipts
• Sales from all payment types, including card payments, cash, checks, and other non‐card amounts, are properly accounted for in gross receipts
• The taxpayer shared a card terminal with any other persons or businesses during the tax period in question and, if so, whether the taxpayer properly filed Form(s) 1099
• Sales tax or merchant acquirer fees were included in gross receipts and whether the appropriate deduction was applied
• Any situations unique to the taxpayer's business may explain why the portion of gross receipts from non‐card payments, such as cash and checks, is unusually low
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Form 1099 K
Form 14420
Form 14420
• If any of the payments were not made to the taxpayer, list the Forms 1099‐K that do not belong to the taxpayer
• If The MCC code is not accurate please note the error and inform the merchant acquirer
• Note any errors found in a review of the books
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Form 14420
• Step 2 Requires basic gross figures for:• Sales from remote payments made by card• Gross sales from gift cards• Gross sales from lottery tickets• Step 3 is for shared terminals• Step 4 expands on Step 3• Sales tax included in gross receipts• Sales taxes paid during the tax period• Merchant acquirer fees in gross income• Total merchant acquirer fees paid during the tax
period
Form 14420
Form 14420
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Form 14420
Form 14420
• In addition if in the food industry:
• Tips included in gross sales
• Total tips paid out and tied to Form W‐2
Form 14420
• Step 5 The business website and a brief description of the online business
• The Form discusses “estimates” in many areas, the taxpayer should have the exact figures to provide and show that they tie to the tax returns
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Form 14420
Justifying the Statistical Analysis
Form 14420Power of Attorney
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Are Purchases made with Stored‐Value Cards or Gift Cards Reportable Transactions?
• It depends– Purchases are not reportable when the card is accepted as payment by the issuer or someone who is related to the issuer of the card (such as a subsidiary company or the company itself)
– Under these circumstances, the stored‐value cards do not fit the definition of a "payment card" and purchases made with such cards are therefore not reportable
– Purchases are reportable when the stored‐value card is accepted by a network of persons unrelated to the issuer and each other
• For the definition of unrelated person see § 267(b), including the application of § 267(b) and (e)(3), or §707(b)(1)
What About Form 1099‐MISC?
• If a worker at a trade or business is an independent contractor, and the independent contractor swipes payment cards on behalf of the trade or business in the normal course of business (in other words, the trade or business, not the independent contractor, receives the proceeds), should the trade or business report payments to the worker on Form 1099‐K or Form 1099‐MISC?
• In this situation, the trade or business should continue to report payments made to independent contractors on Form 1099‐MISC as they have done in the past
• However, the business will receive a Form 1099‐K for these payment card transactions from the payment settlement entity
1099 – K Q & A
• https://www.irs.gov/uac/general‐faqs‐on‐new‐payment‐card‐reporting‐requirements
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New Levy Sources
• Issuing Form 1099‐K opened new levy sources for IRS
• Balance due accounts which were previously reported as
– Currently Not Collectible
– Unable to Locate
– Unable to Contact
– Possible levy action could result
1120 Tax Returns
• CP 259K and Letter 4928 issues
• CP 259 or L 4928 are a non‐filer letter
• Corporate received 1099‐K
Penalties
• §6721 Failure to File correct information returns
• §6722 Failure to furnish correct payee statements
• §6724 Waiver; definitions and special rules
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CALT Website
http://www.calt.iastate.edu/
Tour of the CALT Website
Please WelcomePhil Harris
• Professor, Agricultural and Applied Economics –University of Wisconsin‐Madison– J.D., University of Chicago, 1977– M.A., Economics, University of Chicago, 1975– B.S., Economics, Iowa State University, 1973
• His research program focuses on business and tax planning for agricultural producers
• The program includes information on the choice of entity for organizing a farm business and for transferring a farm business to the next generation
• Income, estate and gift tax consequences as well as non‐tax issues
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Phil Harris
Phil Harris CALT Speaker
• September 9, 2016 Farm Tax Seminar
• The session will also be available via webinar
• Instructor – Farm and Urban Tax School
• November 21 – 22 –Waterloo
• December 12 – 13 ‐ Ames
Fall Tax Schools
• Though they are named the Farm and Urban Tax Schools the schools cover more than farm issues
• Common return issues for all kinds of returns are covered• All kinds of business entities• Problematic issues• Sometimes we even get into to issues that you many
encounter only once or twice a year or tax season• The Tax Schools are a blend of diverse topics of interest to
all tax professionals• This year: New instructors with diverse backgrounds• Your adventure awaits at Iowa State’s Center for
Agricultural Law and Taxation
Farm and Urban Tax Schools 2016
• November 2, 2016 to December 13, 2016 • 8 Locations in Iowa and Online Webinar• Save the Date for the 2016 Annual Farm and Urban Income Tax
Schools• The program is intended for tax professionals and is designed to
provide up‐to‐date training on current tax law and regulations– November 2‐3: Maquoketa– November 7‐8: Red Oak– November 9‐10: Sheldon– November 14‐15: Mason City– November 17‐18: Ottumwa– November 21‐22: Waterloo– December 5‐6: Denison– December 12‐13: Ames and Live Webinar
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September Farm Tax SchoolNavigating Changing Times
• September 8, 2016 to September 9, 2016, Ames, Iowa and Online• Attend any one day or both days, either in‐person or online! Company
discount for 3 or more individuals from the same employer!• Ag Law Seminar, September 8• Our Thursday seminar will offer practical, interesting information you can
immediately apply in your practice or ag‐related business. You’ll leave with forms and other tools to help you more efficiently serve your ag clients.
• Farm Tax Workshop, September 9• Our Friday seminar will be a comprehensive one‐day farm tax workshop
designed to equip tax practitioners with the tools they need to prepare farm income tax returns, from the simple to the complex.
• Online Registration: https://goo.gl/pdJTK5
Registration Fees
• Early Rate ‐ Registered on/by August 31– Attend in person or watch from your computer– Any one day: $200– Both days: $350– Company Discount: $10 discount per individual if 3 or more are
registered from the same employer ‐ this is available for either on‐site or online attendance
• Late Rate ‐ Registered after August 31– Attend in person or watch from your computer– Any one day: $220– Both days: $370– Company Discount: $10 discount per individual if 3 or more are
registered from the same employer ‐ this is available for either on‐site or online attendance
Continuing Education
• Ag Law Seminar (September 8)– Continuing Legal Education (CLEs) ‐ 7 hours (including one hour of ethics)
– Others Professional Education (CPEs) ‐ 7‐8 hours (including one hour of ethics)
• Farm Tax Workshop (September 9)– Continuing Legal Education (CLEs) ‐ 7 hours (including one hour of ethics)
– Others Professional Education (CPEs) ‐ 7‐8 hours (including one hour of ethics)
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Speakers
• Ag Law Seminar– Shannon Ferrell, Associate Professor, Agricultural Economics, Oklahoma State
University– Eldon McAfee, Shareholder, Brick Gentry P.C.– Erin Herbold‐Swalwell, Shareholder, Brick Gentry P.C.– Julia Vyskocil, Shareholder, Brick Gentry P.C.– Pat Dillon, Dillon Law P.C.– Professor Neil Hamilton, Director of Drake Law School Agricultural Law Center– John Baker, Iowa State’s Beginning Farmer Center Administrator– Jennifer Zwagerman, Associate Director of Drake Law School Agricultural Law
Center– Kristine Tidgren, Assistant Director for the Center for Agricultural Law &
Taxation
• Farm Tax Workshop– Philip E. Harris, JD, University of Wisconsin professor– Kristy Maitre, Tax Specialist with the Center for Agricultural Law & Taxation
Farm Tax Seminar Topics• Legislative Update: The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) and the Consolidated
Appropriations Act, 2016 (CAA of 2016)
• Income Issues
• Constructive Receipt
• Installment Sales of Livestock
• Hedging and Other Marketing Transactions
• Farm Income Averaging
• Farm vs. Nonfarm Income
• Easements
• Sale vs. Lease of Equipment by a Retiring Farmer
• Conservation Reserve Program Payments
• Income in Respect of a Decedent
• Reporting Property as Self‐rental on Schedule E (Form 1040)
• Deduction Issues
• Tangible Property Regulations
• Lease vs. Purchase of Farm Equipment
• Segregating Fertilizer Costs
• Domestic Production Activity Deduction
• Start Up Expenses
Farm Tax Seminar Topics
• Entity Issues• Partnership Formation and Contributed Assets with Debt in Excess of
Tax Basis• Guaranteed Payments• Qualified Joint Ventures• Issues for Farmers with Multiple Entities• Miscellaneous Farm Issues• Material Participation• Capitalization of Preproduction Expenses• Farm Inventory• Hobby Losses• Gift of Commodities• Valuation of growing crops• Cases and Rulings: A summary of rulings and cases from the past year
that affect farmers
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Accommodations
• Quality Inn & Suites Starlite Village Conference Center
• 2601 East 13th Street, Ames, Iowa
• Discounted overnight rooms are available for $89.00 per night (for the dates of September 7, 8 and 9)
• Call the hotel at 515‐232‐9260 and mention you are attending the Iowa State University September Seminars
Summer Webinars
• Net Operating Losses
• The Portability Election
• IRS Return Preparer Penalties Overview
• Miscellaneous Income
• New Developments
• Tax Research with Limited Resources
• IRS Representation
• Inventory Issues
• Appeals – How to Write Your Appeals Request
• Start Up Costs
• Hobby Losses
Beginning Tax PreparersClass
• CALT is working on offering a basic class for NEW tax preparers this fall in October
• The week long webinar will cover the basics an individual needs to know such as:– Requirement to file– Dependents– Filing Status– Itemized deductions– Education Credits
• Other issues a first or second year preparer needs to know as well as a refresher for others who need to brush up on issues
• The class will be a week long or more and will be offered at a special rate
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The Scoop
• Throughout the filing season two Scoops will be held on Scoop Dates– 8:00 – 8:30 am Central time– 12:00 – 12:30 Central time
• This assists with accommodating our west coast practitioners
• The same information will be shared at both sessions• You have the option of registering for whatever
session suits your schedule• https://www.calt.iastate.edu/calendar‐node‐field‐
seminar‐date/month
Future Scoop Dates
• August 24, 2016
• September 7, 2016
• October 5, 2016
• October 19, 2016
• November 16, 2016
• December 14, 2016
• http://www.calt.iastate.edu/calendar‐node‐field‐seminar‐date/month
The CALT Staff
John D. Lawrence Interim DirectorAssociate Dean, College of Agriculture & Life Sciences Extension Programs and OutreachDirector, Agriculture & Natural Resources Extension132 Curtiss HallIowa State UniversityAmes, Iowa 50011‐1050
Kristine A. Tidgren
Assistant Director
E‐mail: [email protected]
Phone: (515) 294‐6365
Fax: (515) 294‐0700
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The CALT Staff
Kristy S. MaitreTax SpecialistE‐mail: [email protected]: (515) 296‐3810Fax: (515) 294‐0700
Tiffany L. KayserProgram AdministratorE‐mail: [email protected]: (515) 294‐5217Fax: (515) 294‐0700