We send our thoughts to our members affected by Hurricane Ian and other recent storms. The IRS has announced various tax filing and payment relief for victims in these disaster areas. For additional information, check out the following resources:
Tax Section news, member support and FAQs
Get answers to common questions the Tax Section team receives about tax developments, member resources, advocacy initiatives and member benefits.
Tax Section news, member support and FAQs
Get answers to common questions the Tax Section team receives about tax developments, member resources, advocacy initiatives and member benefits.
Tax news and updates
Updated Oct. 4, 2022
Given the recent hurricanes and storms, is there any IRS disaster relief available?
How should Paycheck Protection Program (PPP) loan proceeds be treated if the taxpayer did not satisfy the conditions for PPP loan forgiveness?
The IRS’s Office of Chief Counsel released a memorandum on Sept. 16, 2022, noting a taxpayer who did not qualify for PPP forgiveness should include PPP loan proceeds in gross income under Sec. 61. This memorandum should not be used as authority, but it does provide information on the IRS’s position related to this issue. Take this time to also refresh your knowledge on the weight of various levels of tax authority.
What are the tax implications in the Inflation Reduction Act of 2022?
The Inflation Reduction Act of 2022 contains several key tax provisions including a corporate minimum tax for large corporations, tax on stock buybacks, various renewal energy tax incentives and increased IRS funding. Visit the Tax Policy and Regulatory library for the latest guidance and resources on the Inflation Reduction Act including a Summary of the Inflation Reduction Act of 2022 and an Energy Tax Credits and ESG Client Letter.
What did President Biden announce about student loan forgiveness on Aug. 24, 2022?
President Biden announced a three-part plan for debt forgiveness and relief for federally owned student loans.
The plan's first part is an additional (final) extension of the federally owned student loan repayment pause, until Dec. 31, 2022. Payments would resume January 2023.
The second part would allow debt forgiveness for loans held by the Department of Education of up to $20,000 if a taxpayer went to college on a Pell Grant, or $10,000 without the assistance. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. At this time, the plan doesn't specify how those earnings figures are calculated or to which tax year they apply.
The third part is a modification to the income-based repayment plan rules. The Biden administration said those with undergraduate degrees and a Pell Grant would have their repayments capped at 5% of monthly income. More details are needed on this repayment plan.
Based on details released, a large number of borrowers may be eligible to receive relief automatically since their income data is already available to the U.S. Department of Education. There is an application coming for borrowers to be able to provide their information.
The forgiveness/relief is not subject to federal taxes because Sec. 9675 of the American Rescue Plan Act (ARPA), P.L. 117-2, passed in March 2021, provides Internal Revenue Code (IRC) Sec. 108(f)(5) with an income exemption from 2021 through 2025 for student loan forgiveness. Whether the forgiveness is taxable at the state level depends on how each state has structured its tax laws. States that follow the ARPA federal treatment for Sec. 108(f)(5) generally will exclude debt forgiveness from state income tax. For additional information, review the Tax Section’s state guidance for taxability or exclusion of student loan forgiveness.
The AICPA has expressed concerns about the timing of the deadline and requested clarifications and expansion of the scope of relief in Notice 2022-36. The IRS reaffirmed that September 30 is the deadline for late-filing penalty relief for 2019 and 2020 tax returns. The IRS does clarify that taxpayers who file during the first few months after September 30 will qualify for partial relief as the penalty starts accruing on Oct. 1, 2022, rather than the return’s original due date.
Does the IRS Notice 2022-36 relief only apply to late-filing penalties, or does it also apply to late-payment penalties?
Notice 2022-36 provides relief from late-filing penalties specifically listed in the notice for 2019 and 2020 tax returns that will be filed on or before Sept. 30, 2022, and notes that penalties that are not listed for relief do not apply. Since the late-payment penalty (or underpayment of estimated tax penalty) is not listed, the relief does not apply under this notice. The AICPA continues to advocate for late-payment relief.
Will the waiver of the late fee announced by the IRS in Notice 2022-36 apply to not-for-profits that file Forms 990, 990-EZ, 990-T or 990-PF?
Notice 2022-36 includes Forms 990-T, Return of Organization Exempt from Income Tax, and 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. However, the notice is silent on penalties associated with Forms 990, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation, or 990-EZ, Short Form Return of Organization Exempt from Income Tax.
For more information, see the Journal of Accountancy article: IRS relieves penalties for 2019 and 2020.
The AICPA is considering asking the IRS for relief for additional filers, including those filing Forms 990 and 990-EZ.
What are the concerns with the new IRS funding in the Inflation Reduction Act?
The Inflation Reduction Act includes provisions to increase funding for IRS operations, which has led to concerns on how the funding will be used and what it means for taxpayer and practitioner services. The AICPA noted the funding imbalance allocated to enforcement versus service operations considering ongoing processing delays, an outstanding backlog of returns and other taxpayer service issues.
What are the tax implications in the CHIPS and Science Act?
The Creating Helpful Incentives to Produce Semiconductors for America Act of 2022 (CHIPS and Science Act) includes a manufacturing credit of 25% of qualified investment from an advanced semiconductor manufacturing facility.
What should I do if my client received a CP-14 balance due notice in error?
The IRS acknowledged that certain 2021 tax return payments were not correctly applied to joint taxpayer accounts and resulted in erroneous CP-14 balance-due notices issued. The error stems from payments that were made by the second-listed spouse on the joint return and not properly credited by the IRS. Affected taxpayers who paid the tax owed in full and on time do not need to respond to the erroneous notice.
Do you have any guidance on the new Schedules K-2 and K-3?
The new Schedules K-2 and K-3 has challenged tax practitioners as they navigate how to file these new forms for passthrough entities. The AICPA continues to push for clarity and guidance along with a delay of filing these schedules. While the IRS provided some transition relief for certain domestic passthrough entities, there still may be questions about the reporting requirements. The Tax Section has pooled some guidance and resources together in our IRS Schedules K-2 and K-3 guidance and resources library including a client information letter.
What is the latest information on the IRS’s use of facial recognition?
The IRS’s use of facial-recognition technology has led to some privacy concerns. The IRS announced it will move away from mandating the use of third-party facial-recognition technology to authenticate the identities of people creating new online accounts and offer an alternative option for taxpayers to verify their identity in a live, virtual interview with an IRS agent. Taxpayers can still verify their identity through biometric verification using ID.me, and the IRS is committed to ensuring that images provided by taxpayers are subsequently deleted for the accounts being created. Going forward, the IRS will use Login.gov and work with the U.S. General Services Administration to implement after the 2022 filing deadline.
Should I refile my client’s return if I received a CP80 notice?
The CP80 notice shows credited payments and/or other credits to a taxpayer’s account for the indicated tax period. However, the IRS hasn’t received the tax return. Due to processing delays for 2019 and 2020 tax returns, the issuance of CP80 and CP080 notices have been suspended. As indicated in the IRS’s FAQs, if a taxpayer received a notice for the 2019 return and it was filed timely, refile the return. If a taxpayer receives a notice for the 2020 return, do not refile.
Is the AICPA advocating for the IRS to improve service levels?
We’re unfortunately hearing from members about delays in various IRS tax matters.
The IRS launched a special filing season alerts page as a source for taxpayers and tax practitioners to get the latest details affecting the 2022 tax filing season, and the IRS’s continued efforts to address the backlog of unprocessed tax returns.
The AICPA has recommended the IRS take reasonable actions that would reduce persistent, unnecessary and erroneous notifications and help taxpayers.
The Tax Practitioners United for Taxpayer Relief Coalition, led by the AICPA, was formed to help the IRS mitigate these burdens on taxpayers and tax practitioners. Learn more about the AICPA’s advocacy efforts for improving IRS taxpayer services in our resource center.
What are the changes to Form 1099-K reporting?
The American Rescue Plan Act provides taxpayers who receive $600 or more for goods or services through third-party payment networks/applications, such as PayPal, to have those payments reported to the IRS via Form 1099-K, Payment Card and Third-Party Network Transactions. This change is effective beginning Jan. 1, 2022, which means the new reporting requirement does not impact taxpayers’ 2021 tax returns. However, many clients will have questions now as they may be asked by third-party payment networks for their identification number and other information. Here are some general IRS FAQs on payment card and third-party network transactions to help you advise your clients.
What should I do if I believe my client received an erroneous Letter 6419?
Letters 6419 sent to taxpayers reported the advance child tax credit payments received in 2021. While the IRS believes these errors are not widespread, the IRS issued a fact sheet that points taxpayers to their IRS online account to verify the payments when the Letter 6419 reports a different total than expected.
What guidance is available to help with the employee retention credit (ERC)?
To stay up to date, follow the AICPA Tax Section’s ERC guidance and resource library for help digesting the latest guidance and maximizing the use of the ERC with your clients. There you’ll find resources and CPE learning opportunities to help you with this complex credit.
Can I call the IRS and request reasonable cause penalty abatement?
If you’re helping your clients with IRS penalty relief by submitting a reasonable cause defense, note that often you can e-fax your written statements while on the phone with the IRS instead of mailing supporting documentation. Use the Tax Section’s IRS Penalty Abatement Templates and First-Time Penalty Abatement guidance for additional help.
Resources and learning
How do I access my digital magazine subscription to The Tax Adviser?
How do I subscribe to the Tax Section Odyssey podcast?
The Tax Section Odyssey podcast is your go-to source for staying informed on the latest tax trends and developments. A new episode is released every other week and is available for free to all listeners.
Subscribe to the podcast to not miss an episode. Search for “Tax Section Odyssey” in your preferred podcast platform (Apple Podcasts, Spotify, Google Podcasts, Stitcher, TuneIn, etc.) and locate the button to follow/subscribe to the series.
If you like to listen on your web browser, bookmark/add the Tax Section Odyssey podcast to your favorites in your browser.
When are the free Tax Section CPE events and how do I register for these events?
Tax Section members receive four complimentary webcasts each year that offer eight hours of CPE credits (two in the field of regulatory ethics and six in the field of taxes). Tax Section members also receive two self-study courses that offer eight hours of CPE credits.
Visit our Free Tax Section CPE page for registration to upcoming events. Tax Section members also get reminders in the Tax Section News e-newsletter to mark their calendars and register far in advance of each event.
Does the Tax Section offer tax engagement letters?
Tax Section members have access to a collection of client engagement letters, such as templates for individual, partnership, corporation, estate, trust and non-profit tax returns. We also have tax engagement letters to assist with consulting, projections and audits.
See the full list of tax engagement letters in the Tax Section’s Annual Tax Compliance Kit.
When are the annual tax engagement letters, organizers, checklists and practice guides available each year (as part of the Annual Tax Compliance Kit)?
Engagement letters and organizers are generally available in November each year. Checklists are available by mid-December and most practice guides are available late-December.
Tax Section members get an email notification when the resources are posted. Visit the Annual Tax Compliance Kit for updates and the latest resources.
Note, tax legislation timing may affect availability, and updates to resources due to legislative changes will be made as soon as possible.
When are the year-end client tax planning letters available?
How do I suggest a new resource or an improvement for the AICPA Tax Section?
I’m having trouble finding the resource I need. Do you offer a free web tour to help me navigate your website?
The AICPA Tax Section offers web tours to help members (and prospective members) learn how to get the most out of their membership.
We guide you through our valuable resources, provide tips on how to access resources easily, show you how you can suggest new resources and discuss volunteer opportunities available in the AICPA Tax Division. Register for a tour (multiple dates and times available).
Statements on Standards for Tax Services (SSTSs)
Does the AICPA Tax Section provide guidance on the SSTSs?
The AICPA’s Statements on Standards for Tax Services (SSTSs) are enforceable tax practice standards for members of the AICPA. The SSTSs and interpretations delineate members' responsibilities to taxpayers, the public, the government and the profession. They are intended to be part of an ongoing process of articulating standards of tax practice for AICPA members.
As part of the Tax Section’s responsibility to its members and the public interest, the Tax Section team assists members with questions pertaining to the SSTSs. Contact the Global Engagement Center at 888.777.7077 or email the Tax Section at firstname.lastname@example.org.
Does the AICPA Tax Section plan to revise the SSTSs?
The AICPA has proposed changes to the Statements on Standards for Tax Services (SSTSs) to ensure the highest ethical standards for members to support the public’s view that CPAs are the premier providers of tax services. Submit your comments on the SSTS Exposure Draft (ED) and Invitation to Comment (ITC) by Dec. 31, 2022.
Tax Section membership benefits
What are the benefits of the AICPA Tax Section?
Tax Section members receive benefits that include:
16 hours of free CPE
Four Tax Practice Quarterly webcasts with up to eight hours of CPE credits geared toward core issues for tax season, the evolving practice, tax technology and tax ethics and two self-study courses with up to eight hours of CPE credits ($824 value).
Tax Resource Library
Checklists, sample letters, practice guides and toolkits focused on key practice areas in planning, compliance, IRS practice and procedure, firm management and ethics.
The Tax Adviser magazine
Digital subscription to our award-winning magazine with in-depth analysis on key issues, practical guidance and tax planning strategies.
Weekly Tax Section News
Exclusive tax communications delivered to your inbox on key developments, trending issues, planning strategies, tax advocacy and updates on recently released tools. Check your AICPA communication preferences are set to get the Tax/PFP Newsletter.
Webcast archive library
Unlimited 24/7 access to our archived webcasts.
Representation in Washington on issues specific to CPA tax practitioners.
$100 savings on select conferences and 20% off select webcasts plus other special offers throughout the year
What are some key resources the Tax Section offers?
The Tax Section provides a wealth of resources for keeping up to date on the latest developments and enhancing your professional development. Resources that Tax Section members can access include:
IRS practice & procedure
Does the AICPA Tax Section answer technical tax questions?
Does the AICPA Tax Section provide networking opportunities to help members knowledge share and get help with technical tax issues?
The AICPA Tax Practitioners LinkedIn group keeps members up to date on tax legislation and regulatory developments and fosters peer discussions on technical tax issues and practice management.
Volunteering is an excellent way to build a network of professionals to help you with tax matters. Learn more about our Tax Division Committees and Technical Resource Panels. Visit Volunteer Central or contact the AICPA Tax Section at email@example.com to find out how you can get involved.
Many CPA state societies also offer member forums and networking opportunities to discuss tax matters with local peers. Consider reaching out to your state society to learn about their networking opportunities. Locate your state society information in our SALT Roadmap — State and Local Tax Guide.
Website and member communications troubleshooting
How do I subscribe to relevant tax communications from the AICPA and Tax Section?
To get tax communications tailored to your interests, review your AICPA communication preferences in your account profile and make sure you’re subscribed to the following.
Sections & Premium Subscriptions
Sections & Premium Subscription Holders
I am having issues accessing the website and viewing certain webpages and resources. How do I get help?
The AICPA Global Engagement Center can help you troubleshoot your issues. Before contacting them, you can also try the following tips.
Use Google Chrome. It is the recommended browser for our website.
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