Friday, December 2, 2016

IR-2016-157: Fall 2016 Statistics of Income Bulletin Now Available

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Issue Number:    IR-2016-157

Inside This Issue


Fall 2016 Statistics of Income Bulletin Now Available

WASHINGTON — The Internal Revenue Service today reminded researchers that the fall 2016 issue of the Statistics of Income Bulletin is available on IRS.gov. The Statistics of Income (SOI) Division produces the online Bulletin quarterly, providing the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue includes articles on the following topics:

  • Sole Proprietorship Returns, Tax Year 2014: For Tax Year 2014, taxpayers reported nonfarm sole proprietorship activity on approximately 24.6 million individual income tax returns, a 2.3-percent increase from 2013. Profits rose to $317.1 billion for 2014, up almost 5 percent from the previous year. 
  • Partnership Returns, Tax Year 2014: The number of partnerships and partners in the United States continued to increase for Tax Year 2014. Partnerships filed more than 3.6 million returns for the year, representing more than 27 million partners. 
  • Transactions Between Large Foreign-Owned Domestic Corporations and Foreign Related Persons, Tax Year 2010: The total value of non-loan transactions between large foreign-owned domestic corporations and related foreign parties amounted to $1.208 trillion for Tax Year 2010, a 1.8-percent increase from the 2008 study's $1.187 trillion.  

SOI Bulletin articles are available for download at IRS.gov/taxstats. For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAAS:S, Internal Revenue Service, 1111 Constitution Avenue NW, (K-Room 4112), Washington, DC 20224.

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Thursday, December 1, 2016

IR-2016-156: IRS, Security Summit Partners Announce “National Tax Security Awareness Week” beginning Dec. 5

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Issue Number:    IR-2016-156

Inside This Issue


IRS, Security Summit Partners Announce "National Tax Security Awareness Week" beginning Dec. 5

WASHINGTON – The Internal Revenue Service and its Security Summit partners today announced the start of "National Tax Security Awareness Week." As part of the Security Summit effort, the IRS, the states and the tax community will share a variety of information throughout next week to educate taxpayers on steps they should take to protect themselves from identity theft and tax scams as well as protect their valuable financial data in advance of the upcoming filing season. 

The week, which runs Dec. 5-9, will feature a series of consumer warnings and tips that will be released daily and featured on the Taxes. Security. Together. web page and a one-page Publication 4524, Security Awareness for Taxpayers.

The IRS, state tax agencies and the tax community came together in 2015 to combat tax-related identity theft as a coordinated partnership. But they realized one partner was missing:  taxpayers.

The IRS and its partners need the help of all taxpayers to help protect important tax and financial data. The Security Summit also needs the help of tax professionals and businesses to share information and help educate clients and employees about security measures.

"With holiday shopping underway and the 2017 tax season about to begin in January, we are entering a period where many people will be using sensitive financial and tax data on their computers," said IRS Commissioner John Koskinen. "In the months ahead, more than 100 million tax returns will be completed on laptops and desktops by taxpayers and tax professionals, making this the perfect time to take steps to protect your valuable information. As the holiday season approaches, we also encourage everyone to look out for friends and family who may not be tech savvy and may be leaving their computers vulnerable to identity thieves."

The IRS and its partners will be promoting a range of topics related to computer security and tax scams, reminding taxpayers to:

  • Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Encrypt sensitive files such as tax records you store on your computer. Use strong passwords.
  • Learn to recognize and avoid phishing emails, threatening phone calls and texts from thieves posing as legitimate organizations such as your bank, credit card company and government organizations, including the IRS. Do not click on links or download attachments from unknown or suspicious emails. 
  • Protect your personal data. Don't routinely carry your Social Security card, and make sure your tax records are secure. Treat your personal information like you do your cash; don't leave it lying around.

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IR-2016-155: IRS Launches New Online Tool to Assist Taxpayers with Basic Account Information

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Issue Number:    IR-2016-155

Inside This Issue


IRS Launches New Online Tool to Assist Taxpayers with Basic Account Information

WASHINGTON – The Internal Revenue Service announced today the launch of an online application that will assist taxpayers with straightforward balance inquiries in a safe, easy and convenient way.

This new and secure tool, available on IRS.gov allows taxpayers to view their IRS account balance, which will include the amount they owe for tax, penalties and interest. Taxpayers may also continue to take advantage of the various online payment options available by accessing any of the payment features including: direct pay, pay by card and Online Payment Agreement. As part of the IRS vision for the future taxpayer experience, the IRS anticipates that other capabilities will continue to be added to this platform as they are developed and tested.

"This new tool is part of the IRS's commitment to improve and expand taxpayer services by providing additional online taxpayer options," said IRS Commissioner John Koskinen. "The new 'balance due' feature, paired with the existing online payment options, will increase the availability of self-service interactions with the IRS. This will give taxpayers another way to take care of their tax obligations in a fast and secure manner."

Before accessing the tool, taxpayers must authenticate their identities through the rigorous Secure Access process. This is a two-step authentication process, which means returning users must have their credentials (username and password) plus a security code sent as a text to their mobile phones.

Taxpayers who have registered using Secure Access for Get Transcript Online or Get an IP PIN may use their same username and password. To register for the first time, taxpayers must have an email address, a text-enabled mobile phone in the user's name and specific financial information, such as a credit card number or specific loan numbers. Taxpayers may review the Secure Access process prior to starting registration.

As part of the security process to authenticate taxpayers, the IRS will send verification, activation or security codes via email and text. The IRS warns taxpayers that it will not initiate contact via text or email asking for log-in information or personal data. The IRS texts and emails will only contain one-time codes.

In addition to this new functionality, the IRS continues to provide several self-service tools and helpful resources available on IRS.gov for individuals, businesses and tax professionals.

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IRS Special Edition Tax Tip 2016-16: Reminder to Businesses: Special Tax Benefits Still Available in 40 Designated Empowerment Zones

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Issue Number:    IRS Special Edition Tax Tip 2016-16

Inside This Issue


Reminder to Businesses: Special Tax Benefits Still Available in 40 Designated Empowerment Zones

Eligible businesses can still claim Empowerment Zone tax benefits through the end of this year. Empowerment Zones are certain urban and rural areas where employers and other taxpayers qualify for special tax benefits.

The Department of Housing and Urban Development and the Department of Agriculture designated 40 economically distressed locations as empowerment zones. Find a list of them in the instructions to IRS Form 8844.

Key Empowerment Zone tax benefits include:

  • Empowerment Zone Employment Credit. Eligible employers can claim this credit on Form 8844. It is worth up to $3,000 and is available to businesses based on wages paid to each qualified employee who both lives and works in an empowerment zone,
  • Increased expensing for qualifying depreciable property,
  • Tax-exempt bond financing,
  • Deferral of capital gains tax on the sale of qualified assets sold and replaced, and
  • Partial exclusion of capital gains tax on certain sales of qualified small business stock.

Find more information about empowerment zones on HUD's website at https://www.hudexchange.info/programs/community-renewal-initiative.

 

Share this tip on social media -- #IRStaxtip: Reminder to Businesses: Special Tax Benefits Still Available in 40 Designated Empowerment Zones. http://go.usa.gov/x8U8t. #IRS.

 

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FATCA News and Information

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FATCA News & Information December 1, 2016

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Issue Number:  2016-23

Inside This Issue


  1. New! FATCA Notification XML Schema v2.3
  2. FATCA IDES Testing for FATCA XML Schema v2.0

 


1.  New! FATCA Notification XML Schema v2.3

The IRS updated the FATCA Notification XML Schema v2.3 to include new file and record level error notification codes for Nil Reports and FATCA XML Schema v2.0. The IDES test environment will only accept FATCA Notification XML Schema v2.3. The notification schema will be effective in January 2017. For more information on the Notification XML schema v2.3 and samples, go to the IDES Schema web page. 

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2.  FATCA IDES Testing for FATCA XML Schema v2.0

The FATCA International Data Exchange Service (IDES) opens for testing from Monday, December 19, 2016 at 8:00 AM EST to Monday, January 30, 2017 at 5:00 PM EDT (UTC/GMT -5).  The test session will be open to users that have completed IDES enrollment by Thursday, December 15, 2016 at 5:00 PM EST. The test environment will only support the FATCA XML Schema v2.0 and Notification XML Schema v2.3.

Enrolled users will receive an email with a link to the current IDES test web application and SFTP on Monday, December 19, 2016. Additional information is available on the IDES Testing Schedule web page. If you need assistance with enrollment, contact the IDES Help Desk.

Resources

Please sign up to attend the next FATCA Global IT Forum hosted by the IRS on December 7, 2016 and December 8, 2016.  Our technical experts will be available to answer your questions. For more information on FAQs, testing and sample files, visit the IDES Resources web pages. If you need assistance, contact the IDES Help Desk.

Note:

Any production files submitted to the test environment will not be processed and generate an error notification. Do not submit production files to the test environment or test files to the production environment.

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