IRS Updates

Guidance For Cooperatives And Patrons

The IRS and Treasury have issued proposed regulations for cooperatives and their patrons on calculating the deduction for qualified business income (QBI) and the deduction for domestic production activities. The QBI deduction is up to 20 percent of the qualified business income from the business, and some patrons who conduct business through cooperatives may be able to include patronage dividends they receive from those cooperatives to calculate their own QBI deduction.

ETAAC Report Issues Recommendations

The Electronic Tax Administration Advisory Committee (ETAAC) released its annual report to Congress, which features recommendations focused on the prevention of identity theft and refund fraud. ETAAC members work closely with the Security Summit, which is a joint effort of the IRS, state tax administrators and tax industry experts, to fight tax-related identity theft and cybercrime. The full ETAAC report can be read here.

ITINs Set To Expire Soon

Millions of Individual Tax Identity Numbers (ITINs) are set to expire before the end of 2019. The IRS encourages taxpayers with ITINs to renew them well before the deadline in order to avoid delays in tax refunds. To renew an ITIN, Form W-7 must be submitted, along with proper documentation. Certified Acceptance Agents can assist with this, or taxpayers can make an appointment at a designated IRS Taxpayer Assistance Center. 

IRS Proposes Regulations For Certain Private Colleges and Universities Investment Income Tax 

The new 1.4% excise tax on certain colleges’ and universities’ net investment income will affect an estimated 40 institutions. The proposed regulations define terms that will help educational institutions to determine whether the excise tax applies to them. Those with at least 500 full-time tuition-paying students and that have assets worth at least $500,000 per student are expected to be affected.