At this time, we are unable to officially support our 2021 software products on the new Microsoft Windows 11 operating system for the upcoming tax season. While preliminary testing against the preview versions has shown positive results, the final release candidate of Windows 11 has not yet been released to us and therefore we have been unable to test our 2021 software for full compatibility with Windows 11. After the final release candidate for Windows 11 is released to us, we will commence our compatibility testing. The projected official release of Windows 11 is late 2021 and as such we do not anticipate officially supporting the new operating system for the 2021/2022 tax season. We will communicate any change in the support policy for our 2021 software once Microsoft officially releases the operating system and our compatibility testing is complete. Click here for more information on Windows 11.
Tuesday, August 17, 2021
Security Summit warns tax pros to watch for tell-tale signs of identity theft
The IRS, state tax agencies and the tax industry – working together as the Security Summit – reminded tax professionals that they should contact the IRS immediately when there’s an identity theft issue while also contacting insurance or cybersecurity experts to assist them with determining the cause and extent of the loss.
“There are tell-tale signs of identity theft that tax pros can easily miss,” said IRS Commissioner Chuck Rettig. “Identity thieves continue to look for ways to slip into the systems of tax pros to steal data. We urge practitioners to take simple steps and remain on the lookout for signs of data and identity theft. They are a critical first line of defense against identity theft.”
Knowing the signs of identity theft is the final part of a five-part series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data. This year’s theme “Boost Security Immunity: Fight Against Identity Theft,” focused on urging tax professionals to try harder to secure their systems and protect client data during this pandemic and its aftermath.
This summer-time Summit series, now in its sixth year, highlighted the protections offered by multi-factor authentication and key security steps, the use of the Identity Protection PIN for clients, scams to steal unemployment benefits and the dangers of phishing email/text scams.
One common refrain the IRS hears from tax professionals reporting data thefts is that they did not immediately recognize its signs.
Summit partners urged tax professionals to watch out for these critical signs:
Tax professionals should also watch for warning signs when clients report they’ve received:
If you or your firm are the victim of data theft, immediately:
Find more information at Data Theft Information for Tax Professionals.
For more information, see Boost Security Immunity: Fight Against Identity Theft.
“There are tell-tale signs of identity theft that tax pros can easily miss,” said IRS Commissioner Chuck Rettig. “Identity thieves continue to look for ways to slip into the systems of tax pros to steal data. We urge practitioners to take simple steps and remain on the lookout for signs of data and identity theft. They are a critical first line of defense against identity theft.”
Knowing the signs of identity theft is the final part of a five-part series sponsored by the Summit partners to highlight critical steps tax professionals can take to protect client data. This year’s theme “Boost Security Immunity: Fight Against Identity Theft,” focused on urging tax professionals to try harder to secure their systems and protect client data during this pandemic and its aftermath.
This summer-time Summit series, now in its sixth year, highlighted the protections offered by multi-factor authentication and key security steps, the use of the Identity Protection PIN for clients, scams to steal unemployment benefits and the dangers of phishing email/text scams.
One common refrain the IRS hears from tax professionals reporting data thefts is that they did not immediately recognize its signs.
Summit partners urged tax professionals to watch out for these critical signs:
- Client e-filed returns rejected because client’s Social Security Number was already used on another return.
- More e-file acknowledgements received than returns the tax pro filed.
- Clients responded to emails the tax pro didn’t send.
- Slow or unexpected computer or network responsiveness such as:
- Software or actions take longer to process than usual,
- Computer cursor moves or changes numbers without touching the mouse or keyboard,
- Unexpectedly locked out of a network or computer.
Tax professionals should also watch for warning signs when clients report they’ve received:
- IRS Authentication letters (5071C, 4883C, 5747C) even though they haven’t filed a return.
- A refund even though they haven’t filed a return.
- A tax transcript they didn’t request.
- Emails or calls from the tax pro that they didn’t initiate.
- A notice that someone created an IRS online account for the taxpayer without their consent.
- A notice the taxpayer wasn’t expecting that:
- Someone accessed their IRS online account,
- The IRS disabled their online account.
If you or your firm are the victim of data theft, immediately:
- Report it to your local IRS Stakeholder Liaison Liaisons will notify IRS Criminal Investigation and others within the agency on the practitioner’s behalf. Speed is critical. If reported quickly, the IRS can take steps to block fraudulent returns in the clients’ names and will assist tax pros through the process.
- Email the Federation of Tax Administrators at StateAlert@taxadmin.org Get information on how to report victim information to the states. Most states require that the state attorney general be notified of data breaches. This notification process may involve multiple offices.
Find more information at Data Theft Information for Tax Professionals.
For more information, see Boost Security Immunity: Fight Against Identity Theft.
Friday, August 13, 2021
IRS: Families now receiving August Child Tax Credit payments; still time for low-income families to sign up
WASHINGTON — The Internal Revenue Service and the Treasury Department announced today that millions of American families are now receiving their advance Child Tax Credit (CTC) payment for the month of August as direct deposits begin posting in bank accounts and checks arrive in mailboxes.
This second batch of advance monthly payments, worth about $15 billion, are reaching about 36 million families today across the country. The majority will be issued by direct deposit.
Under the American Rescue Plan, most eligible families received the first payment on July 15, and payments will continue each month for the rest of 2021. For these families, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17.
Besides the July 15 and Aug. 13 payments, payment dates are Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
Here are further details on these payments:
- Families will see the direct deposit payments in their accounts starting today, Aug. 13. Like the first payments, the vast majority of families will receive these payments by direct deposit.
- The IRS wants to alert some recipients who received direct deposits in July that they will receive the August payments by mail. Due to an issue expected to be resolved by the September payments, a percentage of these recipients – less than 15% – who received payments by direct deposit in July will be mailed paper checks for the August payment. For those affected, no additional action is needed for the September payment to be issued by direct deposit. Families can visit the Child Tax Credit Update Portal to see if they’re receiving a direct deposit or paper check this month.
- For those receiving their payments by paper check, be sure to allow extra time for delivery by mail through the end of August. Those wishing to receive future payments by direct deposit can make this change using the Child Tax Credit Update Portal (https://www.irs.gov/credits-deductions/child-tax-credit-update-portal), available only on IRS.gov. To access the portal or to get a new step-by-step guide for using it, visit IRS.gov/childtaxcredit2021. A change made by 11:59 p.m. ET on Aug. 30 will apply starting with the September payment.
- Payments went to eligible families who filed a 2019 or 2020 income tax return. Returns processed by Aug. 2 are reflected in these payments. This includes people who don’t typically file a return but during 2020 successfully registered for Economic Impact Payments using the IRS Non-Filers tool on IRS.gov or in 2021 successfully used the Non-filer Sign-up Tool for advance CTC, also available only on IRS.gov.
- Payments are automatic. Aside from filing a tax return, including a simplified return from the Non-filer Sign-up Tool, families don’t have to do anything if they are eligible to receive monthly payments. The Non-Filer Sign-Up tool is available until October 15, 2021. Families who did not get a July payment and are getting their first monthly payment in August will still receive their total advance payment for the year. This means that the total payment will be spread over five months, rather than six, making each monthly payment larger. For these families, each payment is up to $360 per month for each child under age 6 and up to $300 per month for each child ages 6 through 17
- Additionally, the IRS is correcting the advance CTC payments for families where the parent(s) have an Individual Taxpayer Identification Number (ITIN) and the qualifying children have a Social Security number. Such families who did not receive a July payment will receive a payment in early August, which includes a portion of the July payment. They will receive the remainder of the July payment in late August.
Low-income families can still sign up
It’s not too late for low-income families to sign up for advance CTC payments. The IRS urged anyone who normally isn’t required to file a tax return to explore the tools available on IRS.gov. These tools can help determine eligibility for the advance CTC or help people file a simplified tax return to sign up for these payments as well as Economic Impact Payments and the Recovery Rebate Credit. People can get these benefits, even if they don’t work and even if they receive no income.
The IRS continues to raise awareness of the expanded Child Tax Credit. The IRS encourages partners and community groups to share information and use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up to receive the advance Child Tax Credits as well as Economic Impact Payments. People can check their eligibility for the advance payments by using the new advance Child Tax Credit Eligibility Assistant.
Families can stop payments anytime
Families can stop payments anytime, even after payments begin. They do that by using the unenroll feature in the Child Tax Credit Update Portal. Eligible families who make this choice will still receive the rest of their Child Tax Credit as a lump sum when they file their 2021 federal income tax return next year. To stop all payments starting in September and the rest of 2021, they must unenroll by 11:59 p.m. ET on Aug. 30, 2021.
For married couples, each spouse must unenroll separately. If they each choose to unenroll, they will receive no monthly payments. If only one spouse unenrolls, they will still receive monthly payments, but they will be half the normal amount.
The unenroll feature can also be helpful to any family that no longer qualifies for the CTC or believes they will not qualify when they file their 2021 return. This could happen if, for example, someone else, such as an ex-spouse or another family member, qualifies to claim their child or children as dependents in 2021.
Links to these tools, a step-by-step guide to using the Non-filer Sign-up Tool, answers to frequently asked questions and other helpful resources are available on the tax agency’s special advance CTC 2021 page. It’s at IRS.gov/childtaxcredit2021.
"A Closer Look" at The New Tax Pro Account
Today, the IRS published the latest executive column "A Closer Look" which features Dietra Grant, director of the Customer Account Services (CAS) organization, discussing the new Tax Pro Account, an application on IRS.gov that allows greater online interaction and collaboration between tax professionals and taxpayers.
Tax Pro Account on irs.gov gives tax professionals the ability to initiate an online POA or TIA request for an individual taxpayer. Once the authorization is submitted, the request is then automatically sent to the individual taxpayer's online account on irs.gov for approval and signature.
Read the article here: English or Spanish.
*“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.
Thursday, July 29, 2021
Security Summit: Tax pros should encourage clients to obtain IP PINs to protect against tax-related identity theft
The IRS, state
tax agencies and the nation’s tax industry – working together as the Security Summit – need
assistance from tax professionals to spread the word to clients that the IP PIN
is now available to anyone who can verify their identity.
“An Identity Protection PIN prevents someone else from filing a tax return using your Social Security number,” said Chuck Rettig, IRS commissioner. “We’ve now made the IP PIN available to anyone who can verify their identity. This is a free way for taxpayers to protect themselves, but we need the help of tax professionals to make sure more people know about it.”
The IRS
created Publication 5367, IP PIN Opt-In Program
for Taxpayers, in English and Spanish, so that tax professionals could print
and share the IP PIN information with clients. There are also special posters
available in English and Spanish.
For security
reasons, tax professionals cannot obtain an IP PIN on behalf of clients.
Taxpayers must obtain their own IP PIN.
Read the full news release: Encourage clients to obtain IP PINs
Wednesday, July 21, 2021
More than 2.2 million additional Economic Impact Payments disbursed under the American Rescue Plan
The Internal Revenue Service, U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced today they have disbursed more than 2.2 million additional Economic Impact Payments under the American Rescue Plan.
Today's announcement covering the most recent six weeks of the effort brings the total disbursed so far under the American Rescue Plan to more than 171 million payments. They represent a total value of more than $400 billion since these payments began rolling out to Americans in batches on March 12.The IRS will continue to disburse Economic Impact Payments on a weekly basis. Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for "plus-up" payments.
Special reminder for those who don't normally file a tax return
Although payments are automatic for most people, the IRS continues to urge people who don't normally file a tax return and haven't received Economic Impact Payments to file a 2020 tax return to get all the benefits they're entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit. Filing a 2020 tax return will also assist the IRS in determining whether someone is eligible for monthly advance payments of the 2021 Child Tax Credit, which began earlier this month.
The IRS has provided an online Non-Filer tool to allow individuals who weren’t required to file (and have not filed) a tax return for 2020 to file a simplified tax return. This simplified tax return allows eligible individuals to register for advance Child Tax Credit payments and the third Economic Impact Payment, as well as claim the 2020 Recovery Rebate Credit. Free tax return preparation is also available for qualifying people.
The IRS has launched the Tax Pro Account for tax professionals
The IRS has launched the new Tax Pro Account on irs.gov. This new feature is one of many recent enhancements to the Online Account for individuals. It provides the ability for taxpayers to connect online with their tax professional. The tax professional will long into the Tax Pro Account to digitally initiate Power of Attorney (POA) and Tax Information Authorization (TIA) requests. Once completed and submitted by the tax professional, the authorization requests will appear in the taxpayers' Online Account for their review, approval or rejection and electronic signature. Because the taxpayers' identities already are verified at the time of login, they simply check a box as their signature and submit the authorization request to the IRS. If completely accurately, the request will go directly to the Centralized Authorization File (CAF) database and will not require manual processing. Some requests will be available immediately while some may take up to 48 hours.
View the full IRS Announcement
The IRS has created the following taxpayer facing products to increase awareness of this new process.
- Publication 5533, Why You Should Create an IRS Online Account – Share with taxpayers; outlines the benefits of having an IRS Online Account
- Publication 5533-A, How to Submit Authorizations Using Tax Pro Account and Online Account – Share with taxpayers; outlines how the new digital authorization process works
- Publication 5533-B, Benefits of Tax Pro Account and Digital Authorizations - Share with tax professional colleagues; outlines the benefits of Tax Pro Account and digital requests
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