Tax Files


Come In and Tell Us Your Problem
The Internal Revenue Service has begun scheduling open forums for taxpayers who need help solving their tax problems. The forums, known as "problem-solving days," will be held at least one day per month by local and district IRS offices. For more information on the forums, contact district or local IRS offices or call the IRS Office of the Taxpayer Advocate at 800-829-1040.

Congressional Bloopers

Congress is likely to consider a "technical corrections" bill this year intended to clarify provisions of the Taxpayer Relief Act of 1997, such as those governing the sale of a principal residence, the effective date for partnership returns to be filed on magnetic media and the determination of adjusted net capital gain.

Under the Microscope

The alternative minimum tax (AMT) may come under congressional scrutiny in 1998 as the number of taxpayers eligible for AMT filing increases. According to Kenneth Kies, Joint Committee on Taxation chief of staff, that figure was 600,000 in 1997 and is expected to grow over the next 10 years to more than 6.2 million as the tax index pushes more middle-income taxpayers into the AMT.

Government Exemption

Congressmen George Gekas (R-Pa.) and Martin Frost (D-Texas) introduced a bill (HR 2113) that would allow local governments to stop mailing Form W-2, Wage and Tax Statement , to election workers who are not expected to have any federal tax withholding obligations, including Social Security taxes.

Dividend Form

The IRS issued the 1998 Form 1099-DIV, Dividends and Distributions , which employers must file for any individuals they paid a stock distribution and withheld and paid any foreign tax on that distribution. A copy of the form must be provided to plan participants by February 1, 1999, and to the IRS by March 1, 1999. Instructions for Form 1099-DIV can be ordered by calling 800-829-3676.

 

©1998 AICPA

SPONSORED REPORT

Taking stock of artificial intelligence

Artificial intelligence is either the greatest thing to ever happen to human work or the dread of our existence. This independently written report explores how AI will reshape the workplace and how analytically minded individuals can stand out.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.