Third Party Contacts
The Internal Revenue Code section that requires the IRS to give notice prior to contacting third parties.
What is IRC 7602(c)(1)?
This schedule is required to be attached to form 941 for semi-weekly depositors
What is Schedule B?
Criteria met by and employer requiring filing of the Form 940
In the current or preceding year the employer.....
Paid wages of $1,500 or more in any calendar quarter,
or
At any time had one or more employees in any 20 calendar weeks.
The default Federal tax status for a multi-member LLC
What is a Partnership?
The two (2) IRS programs that identify unfiled tax returns.
What are
1. Stop Filer (Identifies IMF and BMF taxpayers who previously filed tax returns and then stopped)
2. Non-Filer (Identifies IMF taxpayers who have not filed returns, but for whom IRS has received income information such as Form W-2 or Form 1099)
This source provides information on large cash and suspicious financial transactions
What is FINCEN?
Individuals who perform services that are subject to the will and control of an employer as to what must be done and how it must be done.
Who are Common-Law employees?
Publication that provides information regarding types of employers EXEMPT from FUTA Tax
What is Publication 15 (Circular E)
Also provides......
-Tables for withholding amounts for individuals
-Payroll tax depositing schedules
-Information on FICA (ie FTD depositing requirements)
A single member LLC that did not elect to be classified as an association taxable as a corporation.
What is a Disregarded Entity?
The reference that states IRS will generally not take enforcement action to secure returns due more than six (6) years prior?
What is...
IRM 1.2.14.1.18, Policy Statement 5-133
Four items the IRS provides taxpayer's notification that we may need to contact third party sources?
What is providing (mailing) Publication 1, CP504, CP518 and Letter 3164's?
The total FICA amount on wages in the amount of $20,600
Tax Type Wages X Rate Employee Amt Employer Amt
Social Security $20,600 X 0.062 = $1,277.2 $1,277.2
MEDICARE $20,600 X 0.0145 = $2,98.7 $298.7
$1,575.90 + $1,575.90
TOTAL FICA = $3,151.8
*Add Employer and Employee portions of Social Security and Medicare tax to determine the total FICA
An agricultural employer must file Form 940 if either one of the following applies.
Paid cash wages of $20,000 or more to farm workers during any calendar quarter of the current or preceding year
OR
Employed 10 or more farm workers during some part of a day during any 20 different weeks of the current or preceding year.
(Only need to meet one of the criteria NOT both)
DAILY DOUBLE: Linda's favorite movie
What is The Godfather?
The three objectives in working a Del Ret case
What are..
1. Secure the returns,
2. Secure full payment on returns secured
3. Ensure future voluntary compliance.
The two ways a Revenue Officer can document third party contact
What is by completing an ICS history and completing form 12175?
This form is used to report employment taxes for agricultural employers
What is form 943?
The current FUTA tax rate
AND
The credit rate allowed for state unemployment taxes allowed against the federal tax
FUTA is 6.0% (.006)?
State credit rate is 5.4% (.0054)
6.0% – 5.4% = 0.6% (Usual FUTA Tax rate)
LLC's file this form to make an Entity Classification Election.
What is form 8832?
• A multi-member LLC can elect to be classified as a partnership or as an association taxable as a corporation.
• A single member LLC can elect to be classified as an association taxable as a corporation or to be classified as a disregarded entity.
The document 6209 section that provides explanations for IMF and BMF TDI (Del Ret) investigations.
What is section 11 of the Document 6209?
This schedule on form 1040 is a place to look for rental property income and the property address
What is Schedule E?
(Page 2-9, Information Available on Tax Returns)
This rule applies if the total unpaid tax liability during a 941 tax period reaches $100,000
What is the Next Day Deposit Rule?
DAILY DOUBLE: Jeff's favorite movie
What is In The Heat Of The Night?
Assets of the single member/owner are subject to collection actions for employment tax liabilities that accrue before this date.
**Assets of the single member/owner are subject to collection actions for employment tax liabilities that accrue before January 1, 2009.
**Assets of the LLC are subject to collection actions for employment tax liability that accrue on or after January 1, 2009.
(See page 2-9 of Module E)
What is conduct a full compliance check by
• Determining if all filing requirements are satisfied.
• Resolving any non-filing or non-payment issues.