Archive for Industry News

IRS Announces 2013 Pension Plan Limitations

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IRS Announces 2013 Pension Plan Limitations; Taxpayers May Contribute Up to $17,500 to Their 401(k) Plans in 2013

IR-2012-77, Oct. 18, 2012

WASHINGTON — The Internal Revenue Service today announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2013. In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment. Highlights include: » Read more..

Registered Tax Return Preparer Candidates Urged to Schedule Tests

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PTIN Renewal Period Underway for All Tax Professionals; Registered Tax Return Preparer Candidates Urged to Schedule Tests 


IR-2012-79, Oct. 22, 2012

WASHINGTON — The Internal Revenue Service today reminded the nation’s 730,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2013. Also, preparers who have a competency test requirement should take the time now to schedule an appointment for the exam.

Anyone who is a paid federal tax return preparer must register with the IRS and have a PTIN, as must all Enrolled Agents. Additionally, some return preparers have new continuing education and competency test requirements. » Read more..

RTRP Test or the Special Enrollment Exam 2012

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Ready to advance your career? Be ahead of the game by taking the Registered Tax Return Preparer test this summer. Or take the Special Enrollment Exam to become an Enrolled Agent. Both tests are available in all six IRS Nationwide Tax Forum cities! Note: You will not receive continuing education credit for taking the test during the Tax Forums. 

Sign up for the RTRP Test:

  • Log into your online PTIN account
  • Click on your PTIN
  • Click on Schedule a Competency Test
  • Select one of the convenient test locations from the list below
  • Pay the fee – $116 (this fee is in addition to the cost of attending the Tax Forum)

Sign up for the Special Enrollment Exam:

NOTE: test seats are available on a first come first served basis – sign up early! » Read more..

Where to report 1099-K Income

Brooklyn CPA to the rescue

New form 1099-K produced confusion, here are some answers.


My website is getting a lot of hits with people confused on how to handle new Form 1099-K. Most people don’t know where to make the entry on their tax return. I decided to help and here are some answers to your question.

What is form 1099-K?

Form 1099-K must be sent by all credit card companies and any other companies that received payments for purchases and passed the money to a business or an individual who sold the goods to a consumer. To make this simple, this is a portion of gross receipts that was paid for by credit cards, PayPal, Google Checkout, and other companies that provide similar transactions.

Where do you enter 1099-K information?

Form 1040, individual tax return

On form 1040 you have to make this entry on Schedule C (self employment). Add up all 1099-K amounts and enter the total on Form 1040, Schedule C, » Read more..

Identity Theft Crackdown Sweeps Across the Nation

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More than 200 Actions Taken in Past Week in 23 States

For more information, see the Special Identity Theft Enforcement Efforts – 2012 page.

IR-2012-13, Jan. 31, 2012

WASHINGTON – The Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft.

Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last » Read more..

Tax Questions How & Where to Report 1099-K income for 2011

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For tax year 2011, the IRS asks recipients of the Form 1099-K, Merchant Card and Third–Party Network Payments to include the business income from 1099-Ks as part of the aggregate total with other business receipts on their tax returns.

The “What’s New” section in the instructions for Form 1040 Sch. C,Sch. E and Sch. F has information for reporting the income on 2011 tax returns.

Please note: This does not change the requirement that responsible entities file and furnish Forms 1099-K for 2011.

Form 1099-K, Merchant Card and Third Party Network Payments

A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card » Read more..

Professional Tax Preparation Software has been set to Extended Deadline

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IRS Kicks Off 2012 Tax Season with Deadline Extended to April 17

IRS YouTube Video: April 17th Tax Deadline: English  | ASL
IR-2012-1, Jan. 4, 2012

WASHINGTON — The Internal Revenue Service today opened the 2012 tax filing season by announcing that taxpayers have until April 17 to file their tax returns. The IRS encourages taxpayers to e-file as it is the best way to ensure accurate tax returns and get faster refunds.

The IRS also announced a number of improvements to help make this tax season easy for taxpayers. This includes new navigation features and helpful information on and a new pilot to allow taxpayers to use interactive video to get help with tax issues. » Read more..

PTIN System Unavailable for New Applications

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PTIN System Unavailable for New Applications from Dec. 26 until Jan. 9


Due to previously scheduled maintenance on IRS systems, the PTIN system will be unavailable for new applications from 5:00 PM ET on Friday, Dec. 26 until approximately 9:00 AM ET on Monday, Jan. 9. Preparers are still able to renew existing PTINs during this window. We sincerely apologize for the inconvenience. We are exploring ways to mitigate the outage for preparers who cannot meet the December 26 deadline.  More to come on this issue.

Saver’s Credit, Plan Now to Get Full Benefit

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Plan Now to Get Full Benefit of Saver’s Credit; Tax Credit Helps Low- and Moderate-Income Workers Save for Retirement

IR-2011-121, Dec. 16, 2011

WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2011 and the years ahead, according to the Internal Revenue Service.

The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the saver’s credit is available in addition to any other tax savings that apply.

Eligible workers » Read more..

IRS issued final regulations requiring paid tax return preparers to file a due diligence checklist


Starting Jan. 1: Tax Preparers Need to File Due Diligence Checklist with All Earned Income Tax Credit Claims

IR-2011-122, Dec. 20, 2011

WASHINGTON — The Internal Revenue Service today issued final regulations requiring paid tax return preparers to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). This is the same form that is currently required to be completed and retained in a preparer’s records.

The due diligence requirement, enacted by Congress over a decade ago, was designed to reduce errors on returns claiming the EITC, most of which are prepared by tax professionals. The IRS created Form 8867, Paid Preparer’s Earned Income Credit Checklist, to help preparers meet the requirement by obtaining eligibility information from their clients. Preparers have » Read more..