1. Current news releases
    1. From Twitter@IRSTaxPros: 09/14/20
      1. IRS Tax Tip 2020-100, August 11, 2020
        1. What?
        2. Why?
          1. IRS: Now is a good time for people to begin thinking about next year's tax return. While it may seem early to be preparing for 2021, reviewing your recordkeeping now will pay off when it comes time to file again.
        3. How to?
          1. From IRS Tax Tip:
          2. 1
          3. Taxpayers should develop a system that keeps all their important information together.
          4. 2
          5. Throughout the year, they should add tax records to their files as they receive them
          6. Includes:
          7. Notice 1444, Your Economic Stimulus Payment
          8. 3
          9. Taxpayers should notify the IRS if their address changes
          10. Address Change Notifications
          11. See Form 8822, Change of Address
          12. 4
          13. Review their tax return to make sure they didn't overlook any credits or deductions
          14. Records to maintaining to use to report earnings:
          15. Cancelled checks
          16. Payment receipts
          17. Unemployment documentation
          18. 5
          19. Taxpayers should also keep records relating to property they dispose of or sel to determine gains/losses.
          20. 6
          21. Taxpayers should keep records for three years from the date they filed the return (EE files keep for four years)
          22. From Publication 5349:
          23. 1
          24. Check withholding
          25. For EEs, adjust your withholding on your W4 based on the tax withholding estimator or use the W4 form to determine the applicable withholding amount
          26. See Paycheck Checkup
          27. See Tax Withholding Estimator
          28. See Form W-4, Employee's Withholding Certificate
          29. 2
          30. Organize tax records
          31. Organize tax records electronically and/or in a physical file, add tax records as you receive them, file them in a systematic way
          32. W2
          33. 1099s
          34. 3
          35. Filing Status
          36. Use ITA to determine filing status based on your responses to several tax filing status questions
          37. Use ITA
          38. 4
          39. Adjusted Gross Income (AGI)
          40. Know how Adjusted Gross Income (AGI) affects your taxes
          41. Consider these "Above The Line" deductions:
          42. HSA
          43. IRA
          44. Qualified Educator Expenses
          45. Student Loan Interest
          46. 5
          47. Credits/Deductions
          48. Compare standard deductions with itemized deductions to determine which generates a higher deduction
          49. Consider these credits:
          50. American Opportunity Credit
          51. Child & Dependent Care Credit
          52. Child Tax Credit
          53. Lifetime Learning Credit
          54. 5
          55. Save for retirement
          56. Retirements plans (401(k) plans, traditional IRA, Self-Employed SEP, SIMPLE, and other qualified plans) reduce AGI. See also adjustments to AGI above
          57. 6
          58. Stay connected with the IRS
          59. 7
          60. Tax prep checklist
          61. „ Social Security cards for you, your spouse and dependents (An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for you, your spouse and your dependents if you do not have a Social Security number)
          62. „ Birth dates for you, your spouse and dependents on the tax return
          63. „ Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers or payers
          64. „ Interest and dividend statements from banks (Forms 1099)
          65. „ A copy of last year’s federal and state returns, if available
          66. „ Bank account routing and account numbers for direct deposit
          67. „ Total paid for daycare expenses and the daycare provider’s tax number, such as their Social Security number or business Employer Identification Number
          68. „ Form 1095-A, Health Insurance Marketplace Statement
          69. „ If you are married and filing a joint tax return, both you and your spouse must be present to sign the required forms
        4. Applications:
          1. https://www.irs.gov/pub/irs-pdf/p5349.pdf
          2. Publication 5349 (11-2019) Catalog Number 72927S
  2. Previous news releases
    1. From Twitter@IRSTaxPro: 09/09/20
      1. IRS Tax Tip 2020-115, September 8, 2020
        1. What?
          1. To determine who is subject to earn income tax withholding
        2. Why?
          1. Some taxpayers earn income not subject to withholding. For small business owners and self-employed people this can mean making quarterly estimated tax payments
        3. How to?
          1. Determine if you are one of the common taxpayers who generally pay estimated taxes
          2. Common taxpayers who need to file and pay estimated payments are:
          3. Business owners
          4. Corporations (owes $500+)
          5. Partnerships
          6. Self-employed
          7. Sole proprietors
          8. S Corporation Shareholders
          9. Farmers/Fisherman (special tax requirements apply from those mentioned above)
          10. Determine if the estimated amount owed
          11. All common taxpayers who estimate that they owe $1,000 or more must file estimated taxes quarterly
          12. $1,000 estimated tax payment amount
          13. Exceptions:
          14. Corporations (owes $500+)
          15. Farmers/Fisherman (special tax requirements apply from those mentioned above)
          16. Taxpayers can review these forms for help figuring their estimated payments:
          17. Form 1040-ES, Estimated Tax for Individuals
          18. Form 1120-W, Estimated Tax for Corporations
          19. Taxpayers, who have a job or a pension with federal tax withholding should check their withholding using the Tax Withholding Estimator on IRS.gov.
          20. Determine the due dates and mark your calendar
          21. Due Dates 2020:
          22. 9/15/2020 (3rd Quarter 2020 Filing)
          23. 1/15/2021 (4th Quarter 2020 Filing)
          24. Due Dates 2021:
          25. Filing Due Dates
          26. Pay the amount owed on the due date each quarter
          27. File Form 1040-ES
        4. Applications:
          1. Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
          2. Form 2210: Part III
          3. Form 1040-ES, Estimated Tax for Individuals
          4. 1040-S, Page 1
          5. 1040-S, Page 2: Payment Due Dates
          6. 1040-S, Page 7
          7. 1040-S, Page 9
          8. https://www.irs.gov/publications/p505
          9. https://www.irs.gov/individuals/tax-withholding-estimator
    2. From Twitter@IRSTaxPro: 09/02/20
      1. IRS Webinars for Small Businesses, September 3, 2020
        1. What?
          1. Tax Cuts and Jobs Act (TCJA) Update: Opportunity Zones – September 3, 2020
          2. Host
          3. Richard Furlong/Philip Yamalis
          4. Webinar Objectives
          5. Registration link for all webinars
          6. Intro
          7. https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments
          8. Problems w/tech?
          9. Problems w/tech?
        2. Why?
          1. The law creating the new Opportunity Zones was part of the Tax Cuts and Jobs Act, which went into effect on December 22nd 2017, and specifically TCJA, which is the acronym for Tax Cuts and Jobs Act, added two new sections of the Internal Revenue Code that reference Qualified Opportunity Zones. The first is Section 1400Z-1 and 1400Z-2 as the second section.
        3. How to?
          1. Acronyms related to this tax incentive:
          2. QOF = Qualified Opportunity Fund
          3. Tax Incentives for those who invest into these opportunity zones. To spur econcomic development in these areas. Investor invest into qualitied opportunity funds. Rural and urban communities = opportunity zones. Must invest in a qualified opportunity zone in order to get the tax incentive. Can defer taxes on those investments through 12/31/2026 or when they dispose of the investment int he qualitifed opportunity fund.
          4. QOZ = Qualified Opportunity Zone
          5. There are Opportunity Zones in all 50 states, and that would include Alaska and Hawaii plus Puerto Rico, plus all U. S. territories.
          6. About the qualified opportunity fund:
          7. Qualified Opportunity Zones
          8. Qualified Opportunity Zones, Cont'd
          9. Qualified Opportunity Fund (QOF)
          10. Qualified Opportunity Fund (QOF), Cont'd
          11. Certifying as a QOF
          12. About the tax incentive:
          13. Investor Benefits:
          14. Investor Benefits
          15. Investor Benefits
          16. Investor Benefits 2/3
          17. Investor Benefits 3/3
          18. Eligible Gains:
          19. Eligible Gains
          20. The last tax year on election to defer eligible gains realized can be made, 12/31/26. On or prior to 12/31/26 may be elected to be deferred.
          21. About Form 8949:
          22. About Form 8997:
          23. How to invest in an opportunity zone?
          24. Elect for the tax incentive on IRS Form 8949. The form provides a deferral of the gain and defer from gross income if invested in a qualified opportunity fund or QOF for a period of time can exclude over 15% of the gain from their taxes.
          25. Check point:
          26. The gains must be invested in a QOF must be one who invests their investors gain in a qualified opportunity zone funds.
        4. Application(s):
          1. The email invite:
          2. Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
          3. https://www.irs.gov/businesses/small-businesses-self-employed/small-business-video-and-audio-presentations
          4. https://www.irsvideos.gov/Business/Resources/UnderstandingTaxReformBasicsAboutOpportunityZones
          5. My CE Credit: CE 1
          6. CE = 1
    3. From Twitter@IRSTaxPro: 09/01/20
      1. IRS News Release 2020-194, August 28, 2020
        1. What?
          1. IRS2020-194 News Release: IRS approves temporary use of e-signatures for certain forms --->>> Link to the official IRS memorandum here 👉👉👉
        2. Why?
          1. To protect the health of taxpayers and tax professionals, the Internal Revenue Service today announced (PDF) it will temporarily allow the use of digital signatures on certain forms that cannot be filed electronically --->>>
          2. The change will help to reduce in-person contact and lessen the risk to taxpayers and tax professionals during the COVID-19 pandemic, allowing both groups to work remotely to timely file forms.
          3. IRS Commissioner Chuck Rettig
          4. "Expanding the use of digital signatures is an important step during COVID-19 to help tax professionals"
        3. How to?
          1. The Form 1040, U.S. Individual Income Tax Return, already uses an electronic signature when it is filed electronically, either by using a taxpayer self-selected PIN, if self-prepared, or a tax-preparer selected PIN, if using a tax professional.
          2. The following forms can be submitted with digital signatures if mailed by or on December 31, 2020, see list of forms and links below.
        4. Application(s):
          1. Links to forms:
          2. Form 3115, Application for Change in Accounting Method;
          3. Form 8832, Entity Classification Election;
          4. Form 8802, Application for U.S. Residency Certification;
          5. Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit;
          6. Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies;
          7. Form 1120-C, U.S. Income Tax Return for Cooperative Associations;
          8. Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts;
          9. Form 1120-L, U.S. Life Insurance Company Income Tax Return (instructions)
          10. Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return; (instructions)
          11. Form 8453 series: U.S. Individual Income Tax Transmittal for an IRS e-file Return
          12. Form 8878 series: IRS e-file Signature Authorization for Form 4868 or Form 2350 (Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return and Form 2350, Application for Extension of Time to File U.S. Income Tax Return)
          13. Form 8879 series: IRS e-file Signature Authorization
    4. From Twitter@IRSTaxPro: 08/30/20
      1. IRS News Release 2020-167, July 21, 2020
        1. What?
          1. IRS2020-167 News Release: Working Virtually: Protect tax data at home and at work with the "Security Six;" Part 1 of Security Summit tips for tax professionals
          2. The Security Summit
          3. About the Security Summit:
          4. 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.
          5. About the Secuirty Summit members:
          6. Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA) --- click the link to learn more about CISA --->>> 👉👉👉
          7. IRS Commissioner Chuck Rettig
          8. Number of state agencies:
          9. 42
          10. Number of industry members:
          11. 20
          12. https://www.irs.gov/pub/irs-utl/about_the_security_summit.pdf
        2. Why?
          1. [Cybercriminals] are aware that tax practitioners and their systems may be more vulnerable this year during COVID-19, especially if they are working remotely.
          2. During COVID-19 cyberthieves are active!
          3. This news release provides tips on how tax professionals can protect client tax data when working remotely
        3. How to?
          1. Maintain a heightened state of alert as cybercriminals seek to exploit Covid-19 concerns
          2. To assist tax professionals with the security basics, the IRS, state tax agencies and nation's tax industry are launching a five-part series called Working Virtually: Protecting Tax Data at Home and at Work
          3. The first recommendation today covers the "Security Six" – basic steps that should be taken for every work location. The series will continue each Tuesday through August 18.
          4. 1. Install anti-virus software
          5. Make the anti-virus software Includes these features:
          6. Allows user to automatically receive the latest updates
          7. Allows user to manual scan
          8. Saving and scanning email attachments or web downloads rather than opening them directly from the source.
          9. Scanning portable media, including CDs, for malware before opening files.
          10. Allows user to set to automatically scan downloads
          11. Has a information/dialog box with important security alerts
          12. Scans and protects against spyware
          13. A note about spyware:
          14. A reminder about spyware, a category of malware intended to steal sensitive data and passwords without the user's knowledge: Strong security software should protect against spyware. But remember, never click links within pop-up windows, never download "free" software from a pop-up, and never follow email links that offer anti-spyware software. The links and pop-ups may be installing the spyware they claim to be eliminating.
          15. Scans and protects against phishing emails
          16. 2. Install firewalls
          17. About firewalls:
          18. Firewalls provide protection against outside attackers by shielding a computer or network from malicious or unnecessary web traffic and preventing malicious software from accessing systems. Firewalls can be configured to block data from certain suspicious locations or applications while allowing relevant and necessary data to pass through, according to CISA.
          19. About installing a hardware firewall
          20. About installing a software firewall
          21. 3. Two-factor authentication
          22. Tax professionals should always use this option to prevent their accounts from being taken over by cybercriminals and putting their clients and colleagues at risk.
          23. 4. Backup software/services
          24. 1
          25. Use an online/cloud storage
          26. 2
          27. Use an external hard drive (with multiple terabytes of storage capacity)
          28. 3
          29. Or both
          30. 5. Drive encryption
          31. About drive encryption:
          32. Drive encryption, or disk encryption, transforms data on the computer into unreadable files for an unauthorized person accessing the computer to obtain data.
          33. Can be:
          34. Stand-alone security software product
          35. OR
          36. Stand-alone security software product w/removable media (thumb drive)
          37. 6. Virtual Private Network (VPN)
          38. About VPNs:
          39. A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the Internet and the company network.
          40. Search for "Best VPNs" to find a legitimate vendor; major technology sites often provide lists of top services
          41. Search results: "Best VPNs"
          42. https://www.google.com/search?q=best+vpns&rlz=1C1NDCM_enUS874US874&oq=Best+VPNs&aqs=chrome.0.0l8.367j0j7&sourceid=chrome&ie=UTF-8
          43. https://nordvpn.com/country/usa/?vpn=brand&gclid=CjwKCAjwnK36BRBVEiwAsMT8WKnuyVVNqBT0zyCKQn2JSvMrZpFFvVnOSznJjyo9yV9_QT9HzsZoIxoCSFwQAvD_BwE
        4. Application(s):
          1. The Summit reminds the tax community that users, not the software, is the first line of defense in protecting taxpayer data.
          2. About IRS Secure Access (a two-factor authentication app/tool) --- Click the link here to register for a IRS Secure Access account --->>> 👉👉👉
          3. Tax professionals should ensure that taxpayer data that is backed up also is encrypted – for the safety of the taxpayer and the tax pro.
          4. This is critical for practitioners who work remotely.
          5. Additional resources:
          6. https://www.irs.gov/pub/irs-pdf/p4557.pdf
          7. https://nvlpubs.nist.gov/nistpubs/ir/2016/NIST.IR.7621r1.pdf
          8. https://www.irs.gov/pub/irs-pdf/p5293.pdf
          9. https://www.irs.gov/e-file-providers/join-e-news-for-tax-professionals
          10. https://www.irs.gov/newsroom/irs-new-media-1
          11. https://www.irs.gov/identity-theft-central
    5. From Twitter@IRSTaxPro: 08/30/20
      1. IRS News Release 2020-159, July 15, 2020
        1. What?
          1. IRS-2020-159 News Release: IRS announces 2021 PTIN fees for tax return preparers
        2. Why?
        3. How to?
          1. PTINs expire on December 31 of the year for which they are issued. PTINs generally can be renewed beginning in mid-October and are valid for the following calendar year. A tax return preparer can renew online at www.irs.gov/ptin by logging into the preparer's PTIN account or by submitting a paper Form W-12 with the "Renewal" box checked.
        4. Application(s):
          1. Link to PTIN application to apply/renew
  3. Mind Map prepared by: Jamie L Williams, CB (Host of Mind Map Treasure Chest YouTube Channel and owner/manager of Lenore, Inc)
  4. OBJECTIVE OF THIS MIND MAP:
    1. The mind map combines the material from the IRS News Release section of the IRS.gov website with the information in the related IRS forms, publications, and instructions into one mind map for easy access.
      1. The objective of this mind map is to be a comprehensive, study guide, and practitioner reference.