e-News for Tax Professionals 2024-43

Tax pros: The IRS is currently processing renewals of preparer tax identification numbers (PTIN) for 2025. For the upcoming year, more than 810,000 tax return preparers must renew their PTIN. The expiration date of all existing PTINs is Dec. 31. For 2025, the cost to obtain or renew a PTIN is $19.75. The PTIN fee is not refundable.

To renew a PTIN online, users should:

Log in to their existing online PTIN account;
Complete the online renewal application by verifying personal information and answering a few questions; and
Pay the $19.75 renewal fee via credit/debit/ATM card or eCheck.

First time PTIN applicants can also apply for a PTIN online. To apply for a PTIN online:

Create an account.
Apply for a PTIN. View a checklist of what’s need before getting started; and
Pay the $19.75 fee.

2. IRS reminds disaster area filers with extensions: some states must file 2023 returns by Nov.1; others have until Feb. 3 or May 1

The IRS reminds taxpayers in disaster areas who were granted extensions to file their 2023 returns that, depending upon their location, their returns are due on Nov. 1, Feb. 3, 2025, or May 1, 2025.

Taxpayers in parts of Arkansas, Iowa, Kentucky, Mississippi, New Mexico, Oklahoma, Texas and West Virginia have until Nov. 1, 2024, to file their 2023 returns.
Taxpayers in the entire states of Louisiana and Vermont, all of Puerto Rico and the Virgin Islands and parts of Arizona, Connecticut, Illinois, Kentucky, Minnesota, Missouri, New York, Pennsylvania, South Dakota, Texas and Washington state have until Feb. 3, 2025, to file their 2023 returns.
Taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Tennessee and Virginia will have until May 1, 2025, to file their 2023 returns. For these taxpayers, May 1 will also be the deadline for filing their 2024 returns.

3. Encourage your clients to get for an IP PIN for 2025 tax year

Tax pros: Encourage your clients to safeguard their identity by signing up for an identity protection personal identification number (IP PIN) before Nov. 23. After this date, the IP PIN system will not be available again until early January. A taxpayer’s identity will be safeguarded during the filing season if they register for an IP PIN now. New IP PINs are generated for the 2025 filing season during this period, so online enrollees must retrieve their new IP PINs starting early January 2025. The IRS encourages taxpayers to sign up for IRS Online Account, which provides a quick and easy way to obtain an IP PIN.

4. IRS launches 2024 IRS Nationwide Tax Forum Online; new online seminars available to tax professionals

The IRS recently launched the 2024 Nationwide Tax Forum Online, giving tax professionals access to 18 seminars recorded at the 2024 IRS Nationwide Tax Forum. The Nationwide Tax Forum Online offers tax professionals a convenient way to stay informed about current legislations, IRS procedures, and key topics for the upcoming tax season. Each seminar features a 50-minute interactive video presentation with synchronized slides, downloadable materials, and complete transcripts. Courses can be taken for continuing education (CE) credit for a fee of $29, or they can be reviewed for free (no CE credit). Don’t miss this opportunity to stay informed about important tax changes and further your professional knowledge.

5. Tax Talk Today highlights Nationwide Tax Forum, emerging scams and schemes

Want to learn more about the annual IRS tax forums? Tax Talk Today’s Alan Pinck conducted onsite interviews at the 2024 San Diego Tax Forum touching on an array of topics. View his interview with IRS Communications & Liaison Chief Terry Lemons about the growing threat tax pros and taxpayers face from scams and schemes.

6. LB&I pass-through unit launches; teams of agency experts to tackle complex exams

The new pass-through field operations unit, which the IRS announced last fall, has officially begun work in its Large Business and International division to audit pass-through entities more effectively. The establishment of a new unit dedicated to ensuring pass-throughs of all shapes and sizes —including partnerships, S-corporations and trusts—are in compliance is part of IRS’s broader efforts to devote more focus and funding to a previously neglected area.

"The establishment of pass-through field operations is a significant step in our goal to increase fairness in enforcement while improving service,” said IRS Commissioner Danny Werfel. "By using Inflation Reduction Act funding and enhancing our expertise in this area, we will be able to reverse our historically low audit rates for complex arrangements employed by certain high-wealth individuals and large entities, while at the same time improving the taxpayer experience through a more tailored exam approach.”

7. Treasury, IRS grant tax-exempt organizations relief from filing Form 4626

This week, the Department of Treasury and IRS granted tax-exempt organizations a filing exception, allowing them to avoid filing Form 4626, Alternative Minimum Tax – Corporations for the 2023 tax year. To determine whether they are an applicable corporation for the purposes of the alternative minimum tax and, if so, to calculate any corporate alternative minimum tax liability, tax-exempt organizations should keep Form 4626 for recordkeeping purposes. Any tax-exempt organization that is responsible for the alternative minimum tax must pay the tax and report the amount on Part II, Line 5 of Form 990-T, Exempt Organization Business Income Tax Return.

8. Treasury, IRS issue guidance on advanced manufacturing investment credit implementation

The Department of Treasury and the IRS released final rules that offer guidance on how to implement the Advanced Manufacturing Investment Credit, which was created by the CHIPS Act of 2022. The final regulations clarify the updated investment credit recapture provisions and outline the credit’s eligibility requirements.

9. Upcoming webinars for tax practitioners

The IRS offers the upcoming live webinars to the tax practitioner community:

Energy Efficient Home Improvements Credit & Residential Clean Energy Property Credit: How the Inflation Reduction Act revised these credits on Nov. 14, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of completion are being offered. Click here to register.
Beneficial Ownership Information presented by Financial Crimes Enforcement Network (FinCEN) on Nov. 19, at 2 p.m. ET. No continuing education credit is being offered. Click here to register.

10. News from the Justice Department’s Tax Division

Hophine Bwosinde, a Kansas tax preparation business owner, pleaded guilty to preparing and filing false income tax returns on behalf of his clients. Bwosinde prepared and filed false tax returns on behalf of his clients by inflating legitimate business expenses or by claiming losses related to fake businesses. In addition, Bwosinde falsely reported negative income on clients’ returns. These false items caused his clients to significantly underreport their income to the IRS, which reduced the amount of taxes the clients owed and generated refunds for many to which they were not entitled. Bwosinde caused a total tax loss exceeding $1.5 million. IRS Criminal Investigation is investigating the case.

Gerald Vito, James Eleby and Kwame Thomas were found in contempt by federal court in Miami for violating a permanent injunction that forbade them from preparing, filing or aiding in the preparation or filing of federal tax returns. In March 2021, a complaint was filed against Eleby and Vito for the preparation of tax returns that significantly understated their customers’ tax liabilities by claiming deductions for fabricated or inflated charitable deductions, medical expenses, and employee business expenses. The defendants purposely underreported tax liabilities of their clients. Later that year, the court issued a default judgment of permanent injunction that barred the pair from preparing tax returns for others. In September, the court found that the United States demonstrated by clear evidence that Vito and Eleby violated the permanent injunction by continuing to prepare tax returns for others. The court further found that Thomas, who was not a defendant in the original complaint, violated the injunction by working alongside Eleby to prepare returns in violation of the injunction. The court found Vito, Eleby and Thomas in civil contempt for these infractions and mandated that they disgorge the $988,789.56 in fees they earned while violating the injunction.

11. Technical Guidance

Notice 2024-74 provides additional guidance to taxpayers using the safe harbors in Notice 2024-37 with respect to the sustainable aviation fuel (SAF) credit.

Notice 2024-76 provides guidance on the corporate bond monthly yield curve for September 2024, the corresponding spot segment rates used under section 417(e)(3), and the 24-month average segment rates under section 430(h)(2) of the Internal Revenue Code.

Revenue Procedure 2024-31 provides the procedures and requirements that a manufacturer of specified property must follow to be treated as a “qualified manufacturer” (QM) under section 25C(h) of the Internal Revenue Code.

Revenue Procedure 2024-40 provides detailed information on adjustments and changes to more than 60 tax provisions that will impact taxpayers when they file their returns in 2026.

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