Monday, August 1, 2016

FYI: IIRS News & Events from Stakeholder Liaison

Hello Everyone,


FYI:  Below is the latest edition of IRS News & Events from Stakeholder Liaison. 


Also, attached above is a flyer for the IRS & California Employment Department Basic Payroll Tax Webinar for the Construction Industry which is from 10:00 – 11:00 am.  No CE is being offered for this webinar.  (See above attached promotional flyer for additional information).


IRS News & Events from Stakeholder Liaison - Please share with your members and colleagues. Select the blue links to see the full article.

What to Watch: IRS videos:

Featured video: Summer Day Camp Expenses


Find out how you can get it tax credit for sending your kids to summer day camp

General News


IRS Statement on "Get an IP PIN" Tool

July 19, 2016 — The IRS today announced that the “Get an IP PIN” tool has returned to with a stronger authentication process to help protect taxpayers.


New requirement for Section 501(c)(4) organizations – Form 8976

New legislation enacted at the end of 2015 added Section 506 to the Internal Revenue Code. Section 506 requires an organization to notify the IRS of its intent to operate as a Section 501(c)(4) organization. The IRS has developed a new form – Form 8976 – that organizations should use to provide this notification


IRS Announces Additional Low Income Taxpayer Clinic Grant Recipients

IR-2016-98, July 18, 2016 — The IRS today announced $385,678 in matching grants to nine additional recipients for development of qualified Low Income Taxpayer Clinics (LITCs) in underserved areas around the country for the last six months of the 2016 grant year.


National Taxpayer Advocate Reviews Filing Season and Identifies Priority Areas and Challenges in Mid Year Report to Congress

IR-2016-97, July 7, 2016 — National Taxpayer Advocate Nina E. Olson today released her statutorily mandated mid-year report to Congress that contains extended excerpts from her ongoing Public Forums on Taxpayer Needs and Preferences, presents a review of the 2016 filing season, and identifies the priority issues the TAS will address during the upcoming fiscal year.


Modernized e-File Assurance Testing System (ATS) 1040NR Early Look Scenarios for Tax Year 2016/Processing Year 2017

The IRS is developing the Form 1040NR for the Modernized e-File system for Tax Year 2016. Early look versions of the five ATS scenarios are available on Coming Soon to the MeF Program. The purpose is to provide the external customers with an opportunity to review and comment on the scenarios before the final posting.


IRS Posts New FATCA FAQ to General Compliance Area

The IRS has published a new FAQ regarding submission of Form 8809-I when an additional 90 Day Extension to file Form 8966 has been requested.


Sign Up for IRS Summertime Tax Tips

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IRS, Partners Warn Tax Preparers of Data Theft Risks; Launch New Campaign to Increase Awareness

IR-2016-96, July 6, 2016 — Leaders from the IRS, state tax agencies and tax preparation community today warned tax preparers that increasingly they are targets of cybercriminals and should take appropriate steps to protect clients from data theft.


Tax Professionals: Protect Your Clients; Protect Yourself from Identity Theft

FS-2016-23, July 2016 — The Security Summit, the partnership between the IRS, state tax agencies and the tax community formed to combat identity theft, recently announced it expanded its public awareness campaign on data security to include tax professionals.


IRS Takes Steps to Strengthen IVES Program; Works with Industry to Quickly Implement New Safeguards

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Affordable Care Act

What’s Trending


Health Care Tax Tips

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Technical Guidance

REG-109086-15 Premium Tax Credit Notice of Proposed Rulemaking VI


REG–147196–07 Deferred Compensation Plans of State and Local Governments and Tax- Exempt Entities


TD 9769 Removal of Allocation Rule for Disbursements from Designated Roth Accounts to Multiple Destinations


TD 9779 Property Transferred in Connection With the Performance of Services


TD 9774 Method of Accounting for Gains and Losses on Shares in Money Market Funds: Broker Returns with Respect to Sales of Shares in Money Market Funds


Revenue Procedure 2016-41 sets forth the procedure for an organization to notify the Internal Revenue Service (IRS), consistent with section 506 of the Internal Revenue Code (Code), that it is operating as an organization described in section 501(c)(4) of the Code (a section 501(c)(4) organization).


Revenue Procedure 2016-40 provides two safe harbors in which the Service will not assert that a corporation lacks the requisite ‘control’ for purposes of section 355(a), when a corporation (D) acquires putative control of another corporation (C) through C’s issuance of stock, and C subsequently engages in a transaction that actually or effectively reverses the effect of the stock issuance.  The Revenue Procedure also removes the prohibition against issuing letter rulings on transactions involving such an acquisition of “control.” 


Revenue Procedure 2016-39 provides the procedures by which a taxpayer may obtain the automatic consent of the Commissioner of Internal Revenue (Commissioner) to change to or from the net asset value (NAV) method of accounting provided in § 1.446-7 of the Income Tax Regulations for gain or loss on shares in a money market fund (MMF).  This revenue procedure modifies Rev. Proc. 2016-29, 2016-21 I.R.B.


Revenue Procedure 2016-32 On July 1 the user fee to process the Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, was decreased from $400 to $275. You must submit the fee through when you file a 1023-EZ application. You can pay the fee directly from your bank account or by credit/debit card.


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The 2016 IRS Nationwide Tax Forums - Continuing through September 15!

  • Participate in SB/SE Focus Groups: Here’s Your Opportunity to Improve IRS Programs!
    • ACA Information Returns
    • Federal Tax Deposit Alerts


Webinars for Tax Practitioners


California Practitioner Liaison Meetings and Seminars


Retirement Plans


Exempt Organizations - Online educational programs available anytime at


Fed State & Local Governments


Webinars for Businesses


California Workshops for Small Business Owners


Please share these links with your small business clients. The workshops provide detailed instructional lessons that cover their tax filing, paying and operating requirements and responsibilities

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Jennifer Henrie-Brown, ID #1000247447

Stakeholder Liaison Specialist

Communications Stakeholder Outreach

Work cell phone:  510-926-0175

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