New Features for Tax Year 2018 – Now with W-2 Reporting

BoomTax is excited to announce the release of our Tax Year 2018 product. We’ve been hard at work to develop new features that will provide you with the same simplicity you love for even more tax forms.   Continue reading New Features for Tax Year 2018 – Now with W-2 Reporting

IRS: Reduced Backup Withholding Rate Applies to Small Businesses

The IRS updated Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), last month to reflect a key change as part of the Tax Cuts and Jobs Act (TCJA). Effective January 1, 2018, the backup withholding tax rate dropped from 28 to 24 percent.

Among other circumstances, backup withholding applies when a taxpayer fails to provide their correct taxpayer identification number (TIN) to a payer or when a taxpayer underreports interest or dividend income on their federal tax return. Continue reading IRS: Reduced Backup Withholding Rate Applies to Small Businesses

IRS e-Services Secure Access Authentication via Phone and IRS2Go

Over the weekend, the IRS released a new login portal for e-Services with a required two-factor authentication component called Secure Access Authentication. This means that you will now need to enter a code from your phone each time you login to use IRS e-Services.

Secure Access Authentication Methods

The IRS provides a few different ways to get this code. The most common ways are via text message or their own IRS2Go app. If you choose to use a phone for authentication, you will need to consider what type of phone line you will register. The IRS requires the phone line must be:

  • A U.S.-based mobile phone number registered in your name;
  • Able to receive text messages; and
  • It may NOT be a prepaid (Pay-as-You-Go), landline, Skype, Google Voice, or virtual number.

If you choose to use the IRS2Go app, you can use any capable tablet or phone. You will not necessarily need internet access, but the setup phase will take much longer as you will have to wait for a letter in the mail with your activation code.

How to Get Started

If your phone line meets the above criteria, you’ll need a lot of personal information to get started. The IRS will be looking for many of the following:

    • A readily available email address;
    • Your Social Security Number;
    • Your filing status and address from your last-filed tax return;
    • Your personal account number from a:
      • credit card, or
      • home mortgage loan, or
      • home equity (second mortgage) loan, or
      • home equity line of credit (HELOC), or
      • car loan;
    • A readily available mobile device that either is text-enabled or supports the IRS2Go app. A text-enabled mobile phone associated with your name will allow you to complete registration in one session. If you want to use a business mobile phone or the IRS2Go app, request the activation code by mail.

NOTE: If you have a “credit freeze” on your credit records through Experian, it must be temporarily lifted before you can successfully complete this process. The credit card cannot be American Express, a debit card, or a corporate card issued in your name by your company or organization.

A Better Way

At BoomTax, we’re dedicated to simplifying your tax reporting. Customers that use our platform for 1099 and ACA filing don’t need to worry about maintaining an IRS e-Services account. BoomTax works with the IRS directly so you can focus on completing your filing without ever having to contact the IRS.

See How Easy Filing Can Be