Tax Insights

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New tax law changes: Taxpayer First Act

The Taxpayer First Act of 2019 was signed by President Trump on July 1, 2019. The purpose of the Act is to ultimately make taxpayers’ experience with the IRS easier and safer by improving customer service and adding safeguards during contact with the IRS. Included below is a list of some of the most interesting changes the Act will implement.

  • The IRS will have the ability to exchange information with whistleblowers when helpful in an investigation and to update this person on the progress of the case. The whistleblower cannot disclose any information given by the IRS to the public.
  • While on hold by phone with the IRS, helpful information about tax scams and tax advice will be provided during the hold time rather than music.
  • If a tax refund goes to an incorrect bank account or is reported lost, the IRS must coordinate with the financial institution to deliver the refund to the correct account in a timely manner.
  • A program is being created to issue an Identity Protection Personal Identification Number (IP PIN) to any US resident who requests one. IP PINs are used to verify identity when e-filing tax returns.
  • In the event of identity theft, the IRS is implementing a single point of contact for those affected by identity theft.
  • The IRS is now required to notify a taxpayer of any suspicions of identity theft occurring and must notify the taxpayer if there is an individual charged with the crime.
  • By 2023, the IRS must develop an online system to file Forms 1099. The website will provide resources to taxpayers as well as options to prepare, file and distribute Forms 1099 while simultaneously maintaining records.
  • The IRS must verify the identity of anyone opening an E-Services account before the services can be used.
  • For returns filed after December 31, 2019, the penalty for failure to file (more than 60 days late) increases from $205 to $330.

 

KC Kolb, CPA

Comments

  1. John Garrison says:

    Will the IRS now issue CPE credit for the hours on hold receiving free advice instead of music?