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.
