On Tuesday, July 2nd, 2019, The U.S. President, Trump, has signed the Taxpayers First Act filing bill into law.
The bill is to make improvements to the Internal Revenue Services, such as modernizing technology, updating their customer service techniques, helping any tax-related identity theft victims by securing their rights.
The bill also makes limitations on the types of tax receivables that private debt collection services can assign, it may remove any taxpayer if their income is only based on disability insurance and if their income doesn’t exceed 200% of the applicable poverty level.
The Installment agreements that is offered by a private debt collector would increase its maximum length from five years to seven years.
This bill directs the IRS to create an online platform to allow taxpayers to prepare and file for the Forms 1099.
The IRS will be required to notify any organizations before revoking their exempt status for failure to file a return for three years, the IRS is to notify that it has no records of a return for two or more years. The revocation will occur after the third year and the failure to file penalty fee is to increase to $330.
If there are any tax-related identity theft victims or any suspects of identity theft the IRS will make it a single point of contract to notify the taxpayers. The penalty for improper use of information by a tax return preparer, and if the use or disclosure is made in connection to identity theft the penalty in some cases will increase. For each disclosure, the penalty will be $1,000 (instead of $250) and the annual maximum will be $50,000 (instead of $1,000).