Here are some things to be aware of as we approach the 2018 filing season:
Tax Cuts and Jobs Act Has Only Minimal Effect on 2017 Federal Returns
Except for the three provisions listed below all of the new tax changes that were included in the recently passed Tax Cuts and Jobs Act go into effect beginning in 2018 or beyond.
The following do go into effect at some point in 2017 and thus will be applicable for 2017 federal returns:
Expiration of ITINs
At the end of 2017 the following ITINs expired and must be renewed if an individual wants to use it on a 2017 federal return:
See the IRS Individual Taxpayer Identification Number page for more information on expiring ITINs and how to renew an ITIN.
Be Aware of Phishing Emails
Preparers need to be on the lookout for spear phishing emails that are targeting tax preparers. The goal of these phishing emails is to take over a preparer’s computer (or computer system) in order to obtain the tax and personal information of their clients.
Spear phishing emails pose as familiar entities and are tailored to the individual preparer. These emails disguised as being from a trusted source seek to have the preparer voluntarily disclose sensitive information such as passwords. They may also encourage the preparer to open a link or attachment that actually downloads malware onto their computer. Once the malware is downloaded the cybercriminal now has access to the preparer’s computer and (all information contained on it) without them even knowing about it.
See the following on the IRS website for more information on what to look out for and examples of phishing emails:
2018 Depreciation Changes
October 18, 2018
2018 Tax Law Changes that are Directly Reported on Form 1040
October 3, 2018
IRS Tax Transcripts Changes
September 27, 2018
Revised 2018 Schedule A due to Tax Cuts and Jobs Act Changes to Itemized Deductions
August 29, 2018
2018 Expansion of Preparer Due Diligence Requirements
August 8, 2018
IRS Accepting Renewal Applications for ITINs Expiring at End of 2018
July 25, 2018