February 2022 – Larson Accounting Group

22 de February de 2022

The IRS announced today that a new option in the agency’s authentication system is now available for taxpayers to sign up for IRS online accounts without the use of any biometric data, including facial recognition. This is consistent with the IRS’s commitment earlier this month to transition away from the requirement for taxpayers creating an IRS online account to provide a selfie to a third-party service to help authenticate their identity. Taxpayers will have the option of verifying their identity during a live, virtual interview with agents; no biometric data – including facial recognition – will be required if taxpayers choose to authenticate their identity through a virtual interview.

Taxpayers will still have the option to verify their identity automatically through the use of biometric verification through ID.me’s self-assistance tool if they choose. For taxpayers who select this option, new requirements are in place to ensure images provided by taxpayers are deleted for the account being created. Any existing biometric data from taxpayers who previously created an IRS Online Account that has already been collected will also be permanently deleted over the course of the next few weeks.

While this short-term solution is in place for this year’s filing season, the IRS will work closely with partners across government to roll out Login.Gov as an authentication tool. The General Services Administration is currently working with the IRS to achieve the security standards and scale required of Login.Gov, with the goal of moving toward introducing this option after the 2022 filing deadline.

Source: IRS

by Larson Accounting

14 de February de 2022

WASHINGTON — As part of ongoing efforts to provide additional help for people during this period, the IRS announced today the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return.

These mailings include balance due notices and unfiled tax return notices. The IRS entered this filing season with several million original and amended returns filed by individuals and businesses that have not been processed due to challenges of the historic pandemic and is taking this step to help avoid confusion for taxpayers and tax professionals.

“IRS employees are committed to doing everything possible with our limited resources to help people during this period,” said IRS Commissioner Chuck Rettig. “We are working hard, long hours pushing creative paths forward in an effort to be part of the solution, rather than the problem. Our employees continue to expend every effort to balance a confluence of multiple, unprecedented demands − including successfully starting the filing season, working our inventory of unprocessed tax returns as well as looking for additional ways to minimize burden for taxpayers, tax professionals and businesses.

“Our efforts are not limited to suspension of these additional letters and the possibility of similar actions going forward. We have redeployed and reallocated resources throughout the IRS and have implemented innovative strategies in an ongoing effort to provide a meaningful reduction in our inventories,” Rettig said.

These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices.

Some taxpayers and tax professionals may still receive these notices during the next few weeks. Generally, there is no need to call or respond to the notice as the IRS continues to process prior year tax returns as quickly as possible.

However, if a taxpayer or tax professional believes a notice is accurate, they should act to rectify the situation for the well-being of the taxpayer. For example, the IRS cautions people with a balance due that interest and penalties can continue to accrue. In addition, IRS employees may in select circumstances issue notices to particular taxpayers to resolve specific compliance issues.

The IRS does not have the authority to stop all notices as many are legally required to be issued within a certain timeframe. The IRS will continue to assess other changes and system modifications that the IRS may be able to implement to assist taxpayers on an array of issues. The IRS will continue to make information available to taxpayers throughout the filing season.

The IRS encourages those who have a filing requirement and have yet to file a prior year tax return or to pay any tax due to promptly do so as interest and penalties will continue to accrue. Visit IRS.gov for payment options.

The suspended notices include:

Individual Taxpayer Notices
Notice/Letter Number	Title	Description
CP80	Unfiled Tax Return	This notice is generally sent when the IRS credited payments and/or other credits to a taxpayer’s account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period.
CP59 and CP759 (in Spanish)	Unfiled Tax Return(s) – 1st Notice	IRS sends this notice when there is no record of a prior year return being filed.
CP516 and CP616 (in Spanish)	Unfiled Tax Returns – 2nd Notice	Request for information on a delinquent return as there is no record of a return filed.
CP518 and CP618 (in Spanish)	Final Notice – Return Delinquency	This is a final reminder notice when there is no record of a prior year(s) return filed.
CP501	Balance Due – 1st Notice	This notice is a reminder that there is an outstanding balance on a taxpayer’s accounts.
CP503	Balance Due – 2nd Notice	This notice is the second reminder that a there is an outstanding balance on a taxpayer’s accounts.
CP504	Final Balance Due Notice – 3rd Notice, Intent to Levy	The IRS sends this notice when a payment has not been received for an unpaid balance. This notice is a Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)).
2802C	Withholding Compliance letter	This letter is mailed to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding.

Business Notices
Notice/Letter Number	Title	Description
CP259 and CP959 (in Spanish)	Return Delinquency	IRS sends this notice when there is no record of a prior year return being filed.
CP518 and CP618 (in Spanish)	Final Notice – Return Delinquency	This is a final reminder notice that we still have no record of a prior year tax return(s).

Source: IRS

by Larson Accounting

1 de February de 2022

WASHINGTON – Today, the U.S. Small Business Administration (SBA) announced updated guidance for those small businesses that have already applied for the Targeted EIDL Advance program, received a decline, and are interested in applying for reevaluation. Specifically, the following updated guidance is being provided:

Current Targeted EIDL Advance applicants:

Those interested in being considered for reevaluation can submit their reevaluation requests until February 15. The SBA is no longer accepting new Targeted EIDL Advance applications as of December 31, 2021.
This opportunity is for small businesses that were declined for the Targeted Advance program and can provide additional information to demonstrate their eligibility.

About the Targeted EIDL Advance program

In response to the COVID-19 pandemic, the Targeted EIDL Advance program provides eligible applicants funds of up to $10,000 that do not have to be repaid. Under the Biden-Harris Administration, the Targeted Advance program has provided approximately $5 billion to nearly 600,000 businesses, especially our hardest-hit small businesses in underserved communities, a priority of Administrator Guzman. For small business owners who apply for reevaluation, it is recommended they confirm they meet the below eligibility criteria:

Located in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool (sbaeidl.policymap.com) is available. The business address must be in a low-income community to qualify. Applicants whose businesses have re-located to a low-income community since submitting their original application must submit proof of relocation, such as a lease agreement, utility bill, or mortgage with the name of the business.
Demonstrated reduction in revenue. Eligible applicants must demonstrate a more than 30 percent reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30 percent reduction; and
Have 300 or fewer employees.

How to apply

If your business meets the eligibility criteria and your original application was declined, you may request Targeted EIDL Advance reevaluation by emailing targetedadvancereevaluation@sba.gov. Please include documentation that demonstrates your eligibility for the Targeted EIDL Advance program.

Small business owners may call SBA’s Customer Service Center 1-833-853-5638 (855-440-4960 for the deaf and hard-of-hearing) or email DisasterCustomerService@sba.gov for additional assistance. The center is open Monday through Friday from 8 a.m. to 8 p.m. EST. Multilingual representatives are available.

Visit www.sba.gov/eidl to learn more about eligibility and application requirements. For additional information on COVID EIDL and other recovery programs, please visit www.sba.gov/relief.

Small business owners may also contact SBA’s Resource Partners by visiting www.sba.gov/local-assistance.

Application Process and Fraud Control Enhancements

In addition to the policy enhancements, the SBA has invested in optimized processes and increased capacity to improve the customer service experience for applicants. Directed by Administrator Guzman to swiftly and drastically enhance COVID EIDL, the revamped management team implemented new processes and performance management, such as prioritizing personnel for COVID EIDL and increasing the average number of application decisions made. The SBA accelerated daily processing of loan increases from close to 2,000 applications to more than 37,000 applications daily. Loan officer productivity also went from 1.86 applications per day to 15 applications per day. As a result of these increased loan review rates, the 600,000+ loan increase backlog has been cleared, and new applications were processed immediately.

At the same time, and to ensure taxpayer dollars are used to support businesses that need COVID EIDL funding most, the SBA increased fraud controls and is working in collaboration with the SBA Inspector General to closely monitor the program.

About Targeted Advance Grants

A component of the COVID-19 Economic Injury Disaster Loan (EIDL), the Targeted Advance program provides up to $10,000 in funds that do not need to be repaid to small business owners, including agricultural businesses and nonprofit organizations in all U.S. states, Washington D.C., and territories. The purpose of Targeted Advance is to provide additional financial assistance beyond the COVID EIDL Loan program, which allows small businesses impacted by the COVID-19 disaster to focus on running their businesses without the stress of repayment.

About Economic Injury Disaster Loans

In response to COVID-19, small business owners, including agricultural businesses and nonprofit organizations in all U.S. states, Washington D.C., and territories were able to apply for the COVID-19 Economic Injury Disaster Loan (EIDL). The purpose of EIDL is to provide financial assistance for small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred.

About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Source: SBA – 2022