Line items


IRS Launches Online Payment, Transcript Services
The IRS has begun IRS Direct Pay, a web-based resource that allows taxpayers to pay tax bills or make estimated tax payments (tinyurl.com/lktuq8c). Taxpayers must have a Social Security number to use the service, which also allows them to schedule payments up to 30 days in advance and check the status of pending payments. Another web application, Get Transcript, allows taxpayers to obtain a record of their IRS account (tinyurl.com/lx7qw6x). The IRS next plans to streamline applying for installment agreements (by taxpayers or their authorized representatives) by revamping its Online Payment Agreement Application page (tinyurl.com/d67hvvu).


Small Businesses Can Get Late-Filing Relief for Retirement Plan Reports
The IRS launched a temporary pilot program offering penalty relief for delinquent filing by plan sponsors and administrators of Form 5500, Annual Return/Report of Employee Benefit Plan, and its short and EZ versions, as applicable (Rev. Proc. 2014-32). For one year starting June 2, the IRS will relieve penalties under Secs. 6047(e), 6058, and 6059. The relief is available only with respect to plans not subject to Title 1 of ERISA (Employee Retirement Income Security Act of 1974). Thus, the relief generally is available only for plans that cover only the owner of a business (and spouse) or one or more partners (and spouse or spouses) in a business partnership (“one-owner” plans), and foreign plans. Relief is not available for a delinquent return for which a penalty has been assessed. Participants must file a complete Form 5500 series return for each delinquent year, in the form and manner described in the revenue procedure.


TIGTA Finds $2.3 Billion Alimony Tax Gap
Approximately $2.3 billion more in alimony was deducted by taxpayers than included in income by its recipients for 2010, the Treasury Inspector General for Tax Administration (TIGTA) reported (Rep’t No. 2014-40-022). For 47% of returns with deductions, no alimony income was reported on a corresponding recipient’s return, or the amount reported did not correspond with the deduction. TIGTA faulted examination policies including a deduction dollar amount trigger that prevented the IRS from detecting many mismatches and, in some cases, failure of taxpayers claiming deductions to provide recipients’ taxpayer identification number as required.

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

8 sentences to help you master subject-verb agreement

When professionals prepare written material for readers inside their organization or outside, they should make sure that no errors distract from the message they need to convey. Take this short quiz for practice in subject-verb agreement.