dentity Protection PINs

Due to an error, taxpayers are receiving Identity Protection PIN letters with an incorrect year listed. Taxpayers and tax professionals should be advised the IP PIN listed on the CP 01A Notice dated Jan. 4, 2016, is valid for use on all individual tax returns filed in 2016.

The notice incorrectly indicates the IP PIN issued is to be used for filing the 2014 tax return when the number is actually to be used for the 2015 tax return. The IRS emphasizes the IP PIN listed on the CP 01A notice is valid for the 2015 returns. Taxpayers and their tax professionals should use this PIN number for 2015 tax returns, which the IRS will begin accepting from taxpayers starting Jan. 19, 2016.

The IRS apologizes for the confusion and any inconvenience.

For more information, see the questions and answers below.

Q. When were the CP01A notices mailed?

A. The notices are all dated Jan. 4, 2016, but were mailed in late December. Taxpayers are receiving these now through mid-January.

Q. What does an IP PIN do?

A. An IP PIN helps the IRS verify a taxpayer’s identity and accept their electronic or paper tax return. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN.

If a return is e-filed with your SSN and an incorrect or missing IP PIN, our system will reject it until you submit it with the correct IP PIN or you file on paper. If the same conditions occur on a paper-filed return, we will delay its processing and any refund you may be due for your protection while we determine if it’s yours.

Q. Does this issue affect anything else involving the IP PIN process?

A. No.

The individual shared responsibility provision of the Affordable Care Act requires you and each member of your family to have basic health insurance coverage (also known as minimum essential coverage), qualify for an exemption, or make an individual shared responsibility payment when you file your federal income tax return. If you are not required to file a tax return and don’t want to file a return, you do not need to file a return solely to report your coverage or to claim an exemption. Find out if you qualify for an exemption or must make a payment by using our interactive tool, Am I required to make an Individual Shared Responsibility Payment.

You will claim or report coverage exemptions on Form 8965, Health Coverage Exemptions, and attach it to Form 1040, Form 1040A, or Form 1040EZ. You can file any of these forms electronically. For more information on Form 8965, see the instructions. For any month that you or your dependents do not have coverage or qualify for an exemption, you will have to make a shared responsibility payment. See our Individual Shared Responsibility Provision – Reporting and Calculating the Payment page for more information about the payment.

How you get coverage exemption depends on the type of exemption. You can obtain some exemptions only from the Marketplace while others you may claim when you file your tax return.  You can obtain some exemptions from the Marketplace or by claiming them on your tax return.

Marketplace Exemptions

If the Marketplace grants your coverage exemption, they will send you a notice with your unique Exemption Certificate Number or ECN. Keep this notice with other important tax information.

You will enter your ECN on Form 8965 in column C of Part I, Marketplace-Granted Coverage Exemptions for Individuals.

If the Marketplace hasn’t processed your exemption application before you file your tax return, complete Part I of Form 8965 and enter “pending” in Column C for each person listed.  If you claim the exemption on your return, you do not need an ECN from the Marketplace.

IRS Exemptions

For a coverage exemption that you qualify to claim on your tax return, all you need to do is file Form 8965, Health Coverage Exemptions, with your tax return. You do not need to call the IRS or obtain the exemption in advance.

You will use Part II of Form 8965, Coverage Exemptions for Your Household Claimed on Your Return, to claim coverage exemption if your income is below the filing threshold for your filing status but you choose to file to file a tax return. If you are not required to file a tax return and don’t want to file a return, you do not need to file a return solely to claim this exemption.

You may claim other coverage exemptions on your tax return using Part III of Form 8965, Coverage Exemptions for Individuals Claimed on Your Return. Use a separate line for each individual and exemption type claimed on the return.

This chart shows the types of exemptions available. It also indicates whether the exemption they must be (a) granted by the Marketplace, (b) claimed on an income tax return, or (c) either granted by the Marketplace or claimed on a tax return. For additional information about how to get exemptions that the Marketplace may grant, visit HealthCare.gov/exemptions.

Exemptions and who grants them 

Exemptions	May only be granted by Marketplace	May be granted by Marketplace or claimed on tax return	May only be claimed on tax return
Coverage is considered unaffordable - The minimum amount you would have paid for employer-sponsored coverage or a bronze level health plan (depending on your circumstances) is more than 8 percent of your actual household income for the year as computed on your tax return. Also see coverage considered unaffordable based on projected income listed below, which provides a prospective exemption granted by the Marketplace if the minimum amount you would have paid for coverage is more than 8 percent of your projected household income for the year.
Short coverage gap - You went without coverage for less than three consecutive months during the year. For more information, see question 22 of our questions and answers.
Income below the return filing threshold - Your gross income or your household income is less than your applicable minimum threshold for filing a tax return. Learn more about household income.
Citizens living abroad and certain noncitizens - You are: A U.S. citizen or resident who spent at least 330 full days outside of the U.S. during a 12-month period; A U.S. citizen who was a bona fide resident of a foreign country or U.S. territory; A resident alien who was a citizen of a foreign country with which the U.S. has an income tax treaty with a nondiscrimination clause, and you were a bona fide resident of a foreign country for the tax year; or Not a U.S. citizen, not a U.S. national, and not an alien lawfully present in the U.S. (For this purpose, an immigrant with Deferred Action for Childhood Arrivals (DACA) status is not considered lawfully present and therefore is eligible for this exemption.) If you meet one of these conditions, you qualify for this exemption even if you have a social security number (SSN).
Members of a health care sharing ministry - You are a member of a health care sharing ministry, which is an organization described in section 501(c)(3) whose members share a common set of ethical or religious beliefs and have shared medical expenses in accordance with those beliefs continuously since at least December 31, 1999.
Members of Indian Tribes - You are a member of aFederally-recognized Indian tribe, including an Alaska Native Claims Settlement Act (ANCSA) Corporation Shareholder (regional or village), or you were otherwise eligible for services through an Indian health care provider or the Indian Health Service.
Incarceration - You are in a jail, prison, or similar penal institution or correctional facility after the disposition of charges.
Members of certain religious sects - You are a member of a religious sect in existence since December 31, 1950, that is recognized by the Social Security Administration (SSA) as conscientiously opposed to accepting any insurance benefits, including Medicare and Social Security.
Aggregate self-only coverage considered unaffordable - Two or more family members' aggregate cost of self-only employer-sponsored coverage exceeds 8 percent of household income, as does the cost of any available employer-sponsored coverage for the entire family.
Gap in coverage at the beginning of 2014 - You had a coverage gap at the beginning of 2014 but you either (1)enrolled in, or are treated as having enrolled in, coverage through the Federally-facilitated Marketplace by March 31, 2014, (2) enrolled in, or are treated as having enrolled in, coverage through a state-based Marketplace by March 31, 2014, or any extension of the March 31 open enrollment deadline, or (3) enrolled in coverage outside of the Marketplace with an effective date on or before May 1, 2014. See this HHS Question and Answer.
General hardship - You experienced circumstances that prevented you from obtaining coverage under a qualified health plan, including, but not limited to, homelessness, eviction, foreclosure, domestic violence, death of a close family member, and unpaid medical bills. Learn more about the criteria for this exemption.
Coverage considered unaffordable based on projected income - You do not have access to coverage that is considered affordable based on your projected household income.
Determined ineligible for Medicaid in a state that did not expand Medicaid coverage - You are determined ineligible for Medicaid solely because the State in which you live does not participate in Medicaid expansion under the Affordable Care Act.
Resident of a state that did not expand Medicaid - Your household income is below 138 percent of the federal poverty line for your family size and at any time in 2014 you reside in a state that does not participate in Medicaid expansion under the Affordable Care Act. *
Unable to renew existing coverage - You were notified that your health insurance policy was not renewable and you consider the other plans available unaffordable. See HHS guidance and HHS Question and Answer for more information..
Gap in CHIP coverage - You applied for CHIP coverage during the initial open enrollment period and were found eligible for CHIP based on that application but had a coverage gap at the beginning of 2014. SeeHHS guidance for more information.
AmeriCorps coverage - You are engaged in service in the AmeriCorps State and National, VISTA, or NCCC programs and are covered by short-term duration coverage or self-funded coverage provided by these programs.
Limited benefit Medicaid and TRICARE programs that are not minimum essential coverage - You are enrolled in certain types of Medicaid and TRICARE programs that are not minimum essential coverage (available only in 2014).
Employer coverage with non-calendar plan year beginning in 2013 - You were eligible, but did not purchase, coverage under an employer plan with a plan year that started in 2013 and ended in 2014 (available only in 2014).

* Resident of a state that did not expand Medicaid in 2014 including Alabama, Alaska, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maine, Michigan,   Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wyoming, or Wisconsin

For more information regarding Taxes and Health Insurance, visit the HealthCare Marketplace.

The Internal Revenue Service today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 54 cents per mile for business miles driven, down from 57.5 cents for 2015
• 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
• 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.  Notice 2016-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

El Servicio de Impuestos Internos (IRS) anunció hoy que criminales usaron datos específicos de ciertos contribuyentes obtenidos de fuentes externas al IRS para conseguir acceso desautorizado a información de aproximadamente 100, 000 cuentas tributarias a través de la aplicación del IRS “Get Transcript” (Ordenar Transcripción). Estos datos incluyen información de seguro social, fecha de nacimiento y dirección de domicilio.

Estos terceros adquirieron suficiente información de una fuente externa antes de intentar acceso al sitio del IRS, lo cual les permitió navegar un proceso de autenticación de múltiples pasos, incluyendo varias preguntas de verificación personal que normalmente solo las sabe el contribuyente. El asunto está siendo revisado por el Inspector General del Tesoro para La Administración Tributaria como también la división de Investigación Criminal del IRS, y la aplicación “Get Transcript” ha sido cerrada temporalmente. El IRS proporcionará servicios de monitoreo de crédito gratis para los aproximadamente 100, 000 contribuyentes cuyas cuentas fueran penetradas. En total, el IRS ha identificado 200, 000 intentos de acceso a la data y estará notificando a todos estos contribuyentes acerca del incidente.

Como siempre, el IRS toma la seguridad de los datos de los contribuyentes muy en serio, y estamos trabajando agresivamente para proteger a los contribuyentes afectados y seguir fortaleciendo nuestros protocolos.
Información adicional

El IRS anunció hoy que estará notificando a contribuyentes luego de que terceros obtuvieran acceso sin autorización a la información de unas 100, 000 cuentas a través de la aplicación en línea “Get Transcript” (Ordenar Transcripción).

El IRS determinó a fines de la semana pasada que actividad inusual había tenido lugar en la aplicación, lo cual indica que terceros habían tenido acceso sin autorización a algunas cuentas en la aplicación para transcripciones. A continuación de una revisión inicial, parece que se obtuvo acceso a más de 100, 000 cuentas a través de la aplicación en línea “Get Transcript”.

En este sofisticado esfuerzo, terceros tuvieron éxito en pasar un proceso de autenticación de múltiples pasos que requiere el conocimiento personal sobre el contribuyente por adelantado incluyendo información de seguro social, fecha de nacimiento, estado civil tributario y dirección de domicilio antes de tener acceso a los sistemas del IRS. El proceso de múltiples niveles también requiere un paso adicional en el que los contribuyentes deben responder correctamente varias preguntas de verificación personal de identidad que normalmente sólo las sabe el contribuyente.

El IRS cerró la aplicación “Get Transcript” temporalmente la semana pasada después de que una evaluación inicial detectó intentos dudosos en el sistema a mediados del mes de mayo. La aplicación en línea permanecerá desactivada hasta que el IRS efectúe modificaciones y refuerce aún más su seguridad.

El asunto está siendo revisado actualmente por el Inspector General del Tesoro para La Administración Tributaria y las oficinas del IRS, incluyendo la división de Investigación Criminal.

El IRS señaló que este asunto no involucra a su sistema de cómputo principal que trata con la presentación de declaraciones de impuestos; ese sistema continúa seguro.

En la aplicación “Get Transcript”, una revisión más a fondo hecha por el IRS identificó que estos intentos fueron bastante complejos en su naturaleza y parecían haber empezado en el mes de febrero y continuado en curso hasta mediados del mes de mayo. En total, cerca de 200, 000 intentos fueron hechos desde dominios de correo electrónico cuestionables, con más de 100, 000 de ellos pasando con éxito los obstáculos de autenticación. Durante esta temporada de impuestos, contribuyentes descargaron un total de aproximadamente 23 millones de transcripciones con éxito y de manera segura.

Además, para inhabilitar la aplicación “Get Transcript”, el IRS ha tomado un número de medidas para proteger a los contribuyentes, incluyendo:

• Enviar una carta a todos los aproximadamente 200, 000 contribuyentes cuyas cuentas tuvieron intentos de accesos no autorizados, notificándoles que terceras personas parecen haber tenido acceso a números de Seguro Social de contribuyentes e información financiera personal adicional de una fuente externa al IRS antes de intentar acceder a la aplicación de transcripción del IRS. Aunque la mitad de este grupo no tuvo su cuenta de transcripción penetrada debido a que los terceros fallaron las pruebas de autenticación, el IRS todavía está tomando un paso adicional de protección para alertar a los contribuyentes. Eso es porque los actores maliciosos adquirieron información financiera confidencial de una fuente externa al IRS acerca de estos hogares que llevó a los intentos de acceder a la aplicación de transcripción.
• Ofrecer monitoreo de crédito gratuito para los aproximadamente 100, 000 contribuyentes cuyas cuentas de transcripción fueron accedidas para garantizar que esta información no sea usada a través de otras vías financieras. Los contribuyentes recibirán instrucciones específicas para que puedan inscribirse para el monitoreo de crédito. El IRS enfatiza que estas cartas de divulgación no solicitarán ninguna información de identificación personal de los contribuyentes. Además, el IRS está marcando las cuentas subyacente de los contribuyentes en nuestro sistema de procesamiento central marcándolas en caso de robo de identidad potencial para proteger a los contribuyentes en adelante – tanto ahora como en el año 2016.

Estas cartas se enviarán a partir de esta semana e incluirán detalles adicionales para los contribuyentes sobre el monitoreo de crédito y otras medidas. En este momento, ninguna acción es necesaria para los contribuyentes fuera de estos grupos afectados.

El IRS continúa llevando a cabo revisiones más a fondo en aquellos casos donde se accedió la aplicación de transcripción, incluyendo cuántos de estos hogares presentaron impuestos en el año 2015. Es posible que algunos de estos accesos de transcripción se hicieran para usarlos para un robo de identidad para la temporada de impuestos del año que viene.

El IRS enfatiza que este incidente involucra una aplicación que implica transcripciones – no implica a otros sistemas del IRS, como nuestras cuentas centrales de los contribuyentes u otras aplicaciones, tales como “Dónde está mi reembolso”.

El IRS estará trabajando agresivamente para proteger a los contribuyentes afectados y fortalecer aún más nuestros protocolos en el futuro.
Artículo relacionado: Preguntas y Respuestas sobre la aplicación “Ordenar Transcripción”

The IRS reminds taxpayers that the quickest way to get a copy of their tax transcript is to order it online using the Get Transcript application on IRS.gov. By planning ahead, they should receive their transcript in the mail within five to 10 days from the time the IRS receives the request online.

The IRS continues to work to bring the viewable/printable functionality of the application back online in the near future with enhanced identity protection security features. In the meantime, taxpayers can still request a mailed transcript by going online to Get Transcript.

Though taxpayers should always keep a copy of their tax return for their records, some may need the information from filed tax returns for many reasons. This includes college financial aid applicants or taxpayers who have applied for a loan to buy a home or start a business.

If a taxpayer is returning to college this January and applying for financial aid, they should check with their financial aid department at school to see if they will need a copy of their transcript before they start classes. Frequently, students get all the tax return information they need on the FAFSA application via the IRS Data Retrieval Tool.

Similarly, if a taxpayer plans to apply for a loan, they should ask their financial institution if a transcript will be necessary so they can plan ahead and have it at the appropriate time.

The fastest way to get a transcript is through the Get Transcript tool on IRS.gov. Although the IRS temporarily stopped the online viewing and printing of transcripts, Get Transcript still allows taxpayers to order their transcript online and receive it by mail.  Taxpayers simply click the "Get a Transcript by Mail" button to order the paper copy of their transcript and have it sent to their address of record.  Among the options available:

• To order a transcript online and have it delivered by mail, go to IRS.gov and use the Get Transcript tool.
• To order by phone, call 800-908-9946 and follow the prompts.
• To request an individual tax return transcript by mail or fax, complete Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Businesses and individuals who need a tax account transcript should use Form 4506-T, Request for Transcript of Tax Return.

The IRS will mail the transcript to the address of record entered on the prior year’s tax return. The mailed transcript is an official document. It does not need to be a “certified” copy as is the case with some other documents. If a taxpayer has moved since they last filed a tax return with the IRS, they need to first submit Form 8822, Change of Address, to ensure that the transcript is mailed to the correct address. Allowing time for the Form 8822 is another reason for taxpayers to plan ahead for their transcript needs.

If a taxpayer is applying for financial aid, they are encouraged to use the IRS Data Retrieval Tool on the FAFSA website to easily import their tax return information to their financial aid application. The temporary shutdown of the Get Transcript tool does not affect the Data Retrieval Tool. Taxpayers may also click on the FAFSA help page for more information.

If they are applying for a mortgage, most mortgage companies only require a tax return transcript for income verification purposes. Most of these companies participate in our IVES (Income Verification Express Service) program and can request (with the taxpayer’s consent) to have a transcript sent directly to the financial institution. If a taxpayer needs to order a transcript, they should follow the process described above and have it mailed to the address the IRS has on file for them.

Remember, ordering a transcript online is the quickest option. For more information, read the IRSHow Do I Get My Transcript? fact sheet.

The first day to e-file is Tuesday, January 19, 2016. Please be sure to have all updates installed on your software before transmitting any returns. 1 Stop is excited to begin a new tax season, and we look forward to helping in any way possible! Call our support line with any questions.

If the taxpayer meets certain criteria, s/he may be exempt from the requirement to have qualifying health coverage. If the taxpayer is exempt, s/he will not have to make a shared responsibility payment when s/he files his/her 2014 federal income tax return in 2015. For any month that the taxpayer does not qualify for a coverage exemption, s/he will need to have minimum essential coverage or make a shared responsibility payment.

How the taxpayer gets a coverage exemption depends upon the type of exemption for which s/he is eligible. The taxpayer can obtain some exemptions only from the Marketplace while others may be claimed when the taxpayer files his/her tax return.  Some exemptions can be obtained from the Marketplace or claimed on the taxpayer's tax return. The taxpayer will report an exemption obtained from the Marketplace when s/he files his/her tax return.

The taxpayer may be exempt if:

• The minimum amount s/he must pay for the annual premiums is more than eight percent of the household income;
• S/he has a gap in coverage that is less than three consecutive months; or
• S/he qualifies for an exemption for one of several other reasons, including having a hardship that prevents him/her from obtaining coverage, or belonging to a group explicitly exempt from the requirement.

Learn more about exemptions in this chart and in questions 21-24 of our Questions and Answers. For more information on hardship exemptions, you can also visit Healthcare.gov and access HHS guidance and Questions and Answers.

The IRS is implementing new ACA Regulations for the 2015 tax filing season, based on coverages from 2014. There will be new fines, know as the Shared Responsibility Payment, for every person who went without minimum essential health coverage in 2014, unless they have qualify or have previously qualified for an exemption. For information on minimum essential coverage types, click here.

For 2014, the annual SRP amount is the greater of

● 1 percent of the household income that is above the tax return filing threshold for the taxpayer’s filing status, or
● The family’s flat dollar amount, which is $95 per adult and $47.50 per child (under age 18), limited to a family
maximum of $285.

Form 8965 must be filled out for tax returns that have people who were uninsured in 2014. Failure to fill out form 8965 can result in a delay of the tax refund being issued to the taxpayer for several months.

Select taxpayers who received a subsidy by getting insurance through the Marketplace (healthcare.gov) will receive a form by January 31, which must be entered into the software as well.

For more information, read IRS Publication 5187 or call 706-602-0275. We're here to help!

IR-2013-18, Feb. 8, 2013

WASHINGTON — The Internal Revenue Service announced today that taxpayers will be able to start filing two major tax forms next week covering education credits and depreciation.

Starting Sunday, Feb. 10, the IRS will start processing tax returns that contain Form 4562, Depreciation and Amortization. And on Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits.

This step clears the way for almost all taxpayers to start filing their tax returns for 2012. These forms affected the largest groups of taxpayers who weren’t able to file following the Jan. 30 opening of the 2013 tax season.

The IRS will be able to accept the education credits and depreciation forms following the completion of reprogramming and testing of its systems.  Work continues on preparing IRS systems to accept the remaining tax forms affected by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2.

The IRS also announced today it will start accepting the remaining forms affected by the January legislation the first week of March.  A specific date will be announced later. Most of those in this group file more complex tax returns and typically file closer to the deadline or obtain an extension. Afull list of the forms that will be accepted the first week of March is available on IRS.gov.

Next week’s opening covers two groups of taxpayers using:

• Form 8863, Education Credits. Form 8863 is used to claim two higher education credits -- the American Opportunity Tax Credit and the Lifetime Learning Credit.
• Form 4562, Depreciation and Amortization. Most of the people using the depreciation form tend to file later in the tax season or obtain a six-month extension. Non-1040 business filers using Form 4562 can also file starting Sunday.

For taxpayers using e-file, most software companies are now accepting tax returns with these two forms and will submit them after the IRS begins accepting them next week.

More information is available on this website.

IR-2013-10, Jan. 28, 2013