The Internal Revenue Service  expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities.

The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers' personally identifiable information.

"This is a way to, in essence, lock your tax account, and the IP PIN serves as the key to opening that account," said IRS Commissioner Chuck Rettig. "Electronic returns that do not contain the correct IP PIN will be rejected, and paper returns will go through additional scrutiny for fraud."

The IRS launched the IP PIN program nearly a decade ago to protect confirmed identity theft victims from ongoing tax-related fraud. In recent years, the IRS expanded the program to specific states where taxpayers could voluntarily opt into the IP PIN program. Now, the voluntary program is going nationwide.

About the IP PIN Opt-In Program

Here are a few key things to know about the IP PIN Opt-In program:

• This is a voluntary program.
• You must pass a rigorous identity verification process.
• Spouses and dependents are eligible for an IP PIN if they can verify their identities.
• An IP PIN is valid for a calendar year.
• You must obtain a new IP PIN each filing season.
• The online IP PIN tool is offline between November and mid-January each year.
• Correct IP PINs must be entered on electronic and paper tax returns to avoid rejections and delays.
• Never share your IP PIN with anyone but your trusted tax provider. The IRS will never call, text or email requesting your IP PIN. Beware of scams to steal your IP PIN.
• There currently is no opt-out option but the IRS is working on one for 2022.

For detailed information go to:https://www.irs.gov/newsroom/all-taxpayers-now-eligible-for-identity-protection-pins

IRS Issues New RMD Tables . . . for 2022!

You can look forward to somewhat smaller required minimum distributions (RMDs) from your IRA and company retirement savings plan beginning in 2022. That’s because, on November 6, the IRS released new life expectancy tables that are used to calculate RMDs. The new tables are not effective until 2022. RMDs are waived for 2020, and RMDs for 2021 will be calculated under the current tables.

 

New in December 2019:

Tax "extenders":

• Qualified principal residence indebtedness exclusion is back  RETROACTIVE TO 2018.
• Qualified mortgage insurance premiums will still be deductible. RETROACTIVE TO 2018.
• Lower itemized medical expenses threshold stays at 7.5% for 2019 and 2020
• Tuition and fees for qualified educational costs return as a potential deduction for all. This above-the-line deduction can be claimed by eligible taxpayers as an adjustment to income of up to $4,000. RETROACTIVE TO 2018.

Kiddie Tax   The SECURE Act (Division O, Page 647 of the Appropriations Act) provides relief for kiddie tax. For tax years beginning after Dec. 31, 2019, the unearned income of certain children is again taxed at the parents’ tax rate. In 2018 and 2019, the Tax Cuts and Jobs Act taxed the unearned income of children using the much higher trust tax rates. The law is changed to allow a taxpayer to elect (at such time and in such manner as the IRS may provide) for the change to also apply to taxable years beginning in 2018, 2019, or both (as specified by the taxpayer in his or her election).

New tax-related retirement options: The Setting Every Community Up for Retirement Enhancement Act of 2019, or SECURE Act, is a major part of this bill.

Provisions which are now law, include:

• Part-time workers can participate in 401(k) plans.
• Required minimum distributions (RMDs) no longer kick in at age 70½. The age for required distributions out of a tax-deferred retirement account can now wait until you turn 72.
• Contributions could be made to traditional IRA contributions by those older than 70½.
• New parents, including adoptive moms and dads, could make penalty-free retirement plan withdrawals from qualified retirement plans.
• Some home health care workers can contribute to a defined contribution plan or IRA.
• Inherited IRAs, instead of being stretched out tax-deferred over beneficiaries' lifetimes, now must be drawn down completely within 10 years.
• Small employers can apply for a new tax credit of up to $500 per year to help defray startup costs for new 401(k) and SIMPLE IRA plans that include automatic employee enrollment.

 

Click here for Highlights of  the Tax Cuts and Jobs Act

For the complete IRS publication go to:   https://www.irs.gov/pub/irs-pdf/p5307.pdf