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In this issue:
New Module Calculates Section 199A Deduction
Additionally, the Qualified Business Income Deduction module calculates the Qualified Business Income Deduction for 2018 or 2019 (based on user inputs), including commentary regarding taxable income thresholds, worksheets used, and more. It calculates the Qualified Business net loss carryforward (and REIT Dividend/PTP loss carryforward) if necessary, and produces the appropriate IRS worksheets for the user's records. Finally, it adds the computation of the "9%" reduction required for patrons of certain agricultural or horticultural cooperatives.
Are You Ready for California's New Wayfair Law?
[B]eginning April 1, 2019, out-of-state retailers selling above certain thresholds into California will be required to collect California use taxes on their sales into California. Today's Special Notices also impact in-state and out-of-state retailers' obligations to collect and remit district use taxes adopted by California localities. (CDTFA NR 18-59)
Future legislation may affect some details, but one thing is certain: California's new Wayfair law, which goes into effect next week, will impact many retailers, both in and out of state. Are you ready? If not, our California Sales Tax Preparer can help. Program features include:
Phishing Still Tops the List
Numerous data breaches across the country mean the tax preparation community must be on high alert to unusual activity, particularly during the tax filing season. Criminals increasingly target tax professionals, deploying various types of phishing emails in an attempt to access client data. Thieves may use this data to impersonate taxpayers and file fraudulent tax returns for refunds.
As part of the Security Summit initiative, the IRS has joined with representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators to combat identity theft refund fraud to protect the nation's taxpayers.
The Security Summit partners encourage tax practitioners to be wary of communicating solely by email with potential or existing clients, especially if unusual requests are made. Data breach thefts have given thieves millions of identity data points including names, addresses, Social Security numbers and email addresses. If in doubt, tax practitioners should call to confirm a client’s identity.
Any phishing attempts involving the IRS should be reported:
If a taxpayer receives an unsolicited email or social media attempt that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), they should report it by sending it to email@example.com. Learn more by going to the Report Phishing and Online Scams page on IRS.gov.
Tax professionals who receive unsolicited and suspicious emails that appear to be from the IRS and/or are tax-related (like those related to the e-Services program) also should report it to: firstname.lastname@example.org.
For more information, see IR-2019-26.
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