e-News for Tax Professionals 2024-50

In its quarterly update to the Strategic Operating Plan, the IRS detailed significant developments in criminal investigations, enhancements to taxpayer services and developments in digital modernization that have revolutionized agency operations while safeguarding billions of taxpayer dollars. With the help of these ongoing new initiatives, the IRS recovered $4.7 billion. More than $1.3 billion comes from wealthy, high-income individuals who have not filed taxes or paid overdue tax debt. Approximately $2.9 billion is related to IRS Criminal Investigation work into tax and financial crimes, including drug trafficking, cybercrime and terrorist financing, and $475 million in proceeds from criminal and civil cases attributable to whistleblower information.

2. Business Tax Account available now for corporate Designated Officials; Income Verification Express Service offered to designated officials and sole proprietors

IRS Business Tax Account (BTA) beneficial characteristics continue to expand as the IRS makes this account accessible to an increasing number of business taxpayers. A recent expansion makes this online self-service tool for business taxpayers available to C corporations. A person who can legally bind the corporation, known as a Designated Official, can now access BTA on behalf of their S corporation or C corporation. In addition, Designated Officials and sole proprietors can now use BTA to approve or reject a tax transcript authorization request from a lender through the IRS Income Verification Express Service (IVES). Through IVES, mortgage companies, banks, credit unions and other lenders can easily access a taxpayer’s tax records to verify the income of those applying for mortgages and other loans. The IRS can only provide a lender access to this information if a taxpayer authorizes it.

To learn more, visit Business Tax Account, view the Business Tax Account Overview video or review Publication 5904, Access Your Business Tax Account.

3. ETAAC is accepting membership applications through Jan. 31

The IRS is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC), an organized public forum for discussion of issues in electronic tax administration, such as prevention of identity theft and refund fraud. New members will serve three-year terms beginning in September 2025. Applications will be accepted through Jan. 31. For more information about ETAAC, the application process and qualification criteria, email [email protected].

4. Many retirees urged to make required withdrawals from retirement plans by year-end

The IRS reminds retirees 73 and older of the year-end deadline for taking Required Minimum Distributions (RMDs) from Individual Retirement Arrangements (IRAs) and other retirement plans. Many owners of IRA accounts and retirement plans are required to withdraw RMDs each year. These withdrawals are taxable income and may incur penalties if not taken on time. RMDs for Designated Roth accounts in 401(k) and 403(b) retirement plans were eliminated by the SECURE 2.0 Act, which also increased the age at which account owners must start taking RMDs.

The minimum distribution rules commonly apply to original account holders and their beneficiaries in IRAs, retirement plans and Roth IRAs.

5. Tax pros: New continuing education seminars available on IRS Nationwide Tax Forum Online

The IRS encourages tax professionals to register for the IRS Nationwide Tax Forum Online to get 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 legislation, 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).

6. Upcoming webinars for tax professionals

The IRS offers the upcoming live webinar to the tax professional community:

Digital Assets Existing and New Reporting Requirements on Dec. 19, at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Certificates of Completion are being offered. Click here to register.

7. News from the Justice Department’s Tax Division

The Justice Department filed a civil injunction suit seeking to bar two Texas tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others. The complaint alleges Hudrell Lemontez Jones and Brenda Jackson Thomas operated and prepared returns through an unincorporated business in 2020 before forming D&B Professional Tax Services LLC in 2022. According to the complaint, the two prepared and filed tax returns that falsely reduced their customers’ taxable income, falsely increased their customers’ refunds, and profited by charging their customers substantial return preparation fees — at the expense of the Treasury.

8. Technical Guidance

Announcement 2024-42: The competent authorities of the United States and the Kingdom of Norway have entered a Competent Authority Arrangement under paragraph 2 of Article 27 (Mutual Agreement Procedure) of the Convention between the United States of America and the Kingdom of Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Property in which the competent authorities confirm that Article 20 (Investment or Holding Companies) is not applicable to a U.S. investment company that qualifies as a Regulated Investment Company pursuant to sections 851 (Definition of regulated investment company) and 852 (Taxation of regulated investment companies and their shareholders) of the Internal Revenue Code.

Notice 2025-02 provides relief from certain penalties imposed solely for failure of a partnership with unrealized receivables or inventory items to furnish Part IV of Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, by January 31, 2025, to the transferor and transferee in certain transfers of partnership interests occurring in calendar year 2024.

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