Recent Tax Updates

2020 National Security Awareness Tips for Upcoming 2021 Filing Season

As the 2021 filing season approaches the IRS is warning taxpayers and tax preparers to remain vigilant due to the constantly evolving threats and scams from fraudsters. This year identity thieves have added additional scams related to the COVID-19 pandemic in their effort to steal taxpayers and tax preparers out of their identities and/or money.

As part of their awareness effort the IRS held their 5th Annual National Security Awareness Week between November 30 and December 4. The goal of this awareness effort is to offer basic security guidance for individual taxpayers, tax preparers and business taxpayers to protect themselves and their tax information from tax-related identity theft.

This year the IRS is emphasizing the following subjects related to security and how tax preparers can protect themselves from identity thieves:

The National Security Awareness Week page on the IRS website also offers the following information:

  • Tax Tips for tax preparers
  • Links to posters on the five topics covered by this year’s National Security Awareness week
  • Videos on security topics for tax preparers

See the following on the IRS and FTC website for more information on what tax preparers and taxpayers can do to protect themselves from identity thieves:

Mark Castro, CPA

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.

Recent Tax Updates

Form 1099-K on laptop.

IRS Delays Form 1099-K Reporting for 2023

Following feedback from taxpayers, tax professionals and payment processors, the IRS announced on November 23 that the requirement that was enacted in the American Rescue Plan Act of 2021 that lowered the reporting threshold from $20,000 to $600 for third-party networks that process payments for transactions that involve the selling of goods or services will be delayed until 2024.

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cheerful-professional-preparers-employee retention credit

Employee Retention Credit

Over the past few months, you may have seen information in the media about the Employee Retention Credit and the most recent news that the IRS has stopped processing any new claims for this credit due to the high incidence of questionable claims being submitted to the IRS.

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