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IRS has recently notified foreign CAAs by email that, effective Apr. 17, 2017, IRS has rescinded the termination letter that they had previously been sent. 
 
In the email, IRS stated that if a CAA's Certified Acceptance Agent Agreement was not set to expire on Dec. 31, 2016, then no further action was required on their part for the CAA to resume participation in the CAA program as of Apr. 17, 2017. The CAA was told that he would receive an official letter in the mail in the next few weeks.

The email further stated that if the CAA submitted a renewing application prior to Dec. 31, 2016 and received a preliminary agreement, no action was required from the CAA at this time. A final agreement would be sent to the CAA in the mail within the next few weeks.

If the CAA or his organization submitted a “New” or “Renewing” application that was rejected because of the termination of the foreign CAA agreements, IRS indicated that the CAA could resubmit his application with the required documentation to participate in the program. If the CAA's agreement expired on Dec. 31, 2016 and the CAA did not submit a renewing application, he or she would have to submit a “New” application to continue participation in the program.

The email stated that all new and renewing applicants must complete the following four steps:

• (1)  Take the Mandatory Acceptance Agent training.
• (2)  Complete the Application Form 13551 (IRS Application to Participate in the IRS Acceptance Agent Program) and attach the fingerprint card (if applicable).
• (3)  Attach the original mandatory training certification form for each authorized representative.
• (4)  Complete forensic training and submit the original certificate of completion to the IRS with Form 13551.

Any individual filing a U.S. tax return is required to state his or her taxpayer identification number (TIN) on that return. Generally, a TIN is the individual's Social Security Number (SSN).

However, in the case of individuals who are not eligible to be issued an SSN, but who still have a tax filing obligation, IRS issues Individual Taxpayer Identification Numbers (ITINs) for use in connection with the individual's tax filing requirements. (Reg. § 301.6109-1(d)(3)(I))

The PATH Act provides that IRS may issue ITINs if the applicant provides the documentation required by IRS either (a) in person to an IRS employee or to a Community-based certified Acceptance Agent (CAA), or (b) by mail. Individuals who were issued ITINs before 2013 are required to renew their ITINs on a staggered schedule between 2017 and 2020.

A CAA is a person or an entity (business or organization) who, pursuant to a written agreement with IRS, is authorized to assist individuals and other foreign persons who do not qualify for a SSN but who still need a TIN to file a Form 1040 and other tax schedules.

The CAA facilitates the application process by reviewing the necessary documents, authenticating the identity when able, and forwarding the completed forms to IRS.

 

 

On April 26, 2017 we posted Trump Proposes 15% Corp. Tax Rate & Repeal of 3.8% Obama Tax where we discussed that 15 percent tax rate for corporations, cutting the top individual tax rate from 39.6% to 35%, reducing the number of rates from seven to three and the repeal of a 3.8 percent tax on net investment income are the top priorities in the Trump administration’s tax reform agenda, according to a plan released by the White House today April 26, 2017

On April 27, 2017 we posted Trump Proposes To Repeal Estate Tax, Alt Min Tax and 3.8% Obama Tax where we discussed that it also provides for repeal of:

1. the Estate Tax
2. the Alternative Minimum Tax along will
3. the 3.8 per cent Surtax on investment income (capital gains, interest and dividends) introduced by the Obama administration to fund the Affordable Care Act.

But also see our April /25/17 post Tax Reform Announcement Coming on April 24 but Tax Reform Is 'Impossible' This Year - So Where Does That Leave Tax Advisers?  where we discuss that there may not be enough time to get the tax bill passed in 2017. Warren Payne, a former House Ways and Means Committee policy director now with Mayer Brown LLP, believes that passing tax reform by August will be ‘‘impossible’’ this year. Rather, he suggested during a conference call March 16 that it is more likely to be addressed in early 2018. 

 

  

On April 26, 2017 we posted Trump Proposes 15% Corp. Tax Rate & Repeal of 3.8% Obama Tax where we discussed a 15 percent tax rate for corporations, cutting the top individual tax rate from 39.6% to 35%, reducing the number of rates from seven to three and the repeal of a 3.8 percent tax on net investment income are the top priorities in the Trump administration’s tax reform agenda, according to a plan released by the White House today April 26, 2017.

Upon closer reading it also provides for repeal of the Estate Tax and the Alternative Minimum Tax along will the repeal of the 3.8 per cent Surtax on investment income (capital gains, interest and dividends) introduced by the Obama administration to fund the Affordable Care Act. This will return the top capital gains tax rate and dividend rate to 20 per cent.

A 15 percent tax rate for corporations, cutting the top individual tax rate from 39.6% to 35%, reducing the number of rates from seven to three and the repeal of a 3.8 percent tax on net investment income are the top priorities in the Trump administration’s tax reform agenda, according to a plan released by the White House today April 26, 2017.

Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn confirmed rumors that President Donald Trump is sticking to priorities outlined during this election campaign to slash the current 35 percent corporate tax rate by 20 percentage points.

Another significant change that the White House is proposing is a shift to a territorial tax system under which income earned abroad would not be taxed within the U.S. Under the current worldwide system, U.S. corporations are required to pay taxes on all income, regardless of where it is earned.