TSCPA News

Steps for Tax Professionals to Obtain Wage and Income Transcripts for Tax Training

December twenty, 2018

The Internal Revenue Service, in partnership with the tax preparation customs, has devised a new process that will let tax practitioners to access employer information needed for return preparation and electronic filing while as well protecting taxpayer information.

The new process is part of a series of steps planned by the IRS to raise safeguards around the tax transcript format and distribution to help protect taxpayers from identity theft. A transcript is a summary of tax return entries on the Form 1040 series.

In September 2018, the IRS began partially masking the personally identifiable information for all individuals and entities listed on an individual tax return. The redesigned transcript will fully display all financial entries. Come across the IRS website for details.

In improver to masking PII data, the IRS will stop faxing transcripts as of February. four, 2019 to both taxpayers and authorized 3rd parties, including tax professionals. This safeguard applies to both individual and business organisation transcripts.

Individual taxpayers may view their masked transcripts at "Get Transcript Online" on the IRS site or gild past mail for delivery to the address of record. Masked transcripts will nonetheless be available to tax professionals through the Transcript Delivery System (TDS), an due east-Services tool. Business concern transcripts are not masked and may be accessed past tax professionals through TDS.

The IRS slightly delayed the appointment it will end faxing transcripts and worked with members of the revenue enhancement professional community on an alternative to faxing that will let certain tax practitioners access to data needed to file prior-year individual revenue enhancement returns.

Starting Jan. 7, 2019, tax professionals who see certain requirements may request an unmasked Wage and Income Transcript. The unmasked transcript will only be sent to the practitioner's e-Services Secure Object Repository (SOR), a secure electronic mailbox.

The Wage and Income Transcript shows data from information returns received by the IRS such equally Forms W-ii, 1099, 1098 and Form 5498, IRA Contribution Data. It also shows the full employer proper name, address and Employer Identification Number (EIN) needed past tax preparation software in society to e-file.

How to Request a Wage and Income Transcript

Taxation practitioners must commencement go to the TDS to obtain a masked Wage and Income Transcript to see if it meets their needs. If employer data is even so needed for revenue enhancement preparation, practitioners may gild an unmasked Wage and Income Transcript if the customer does non have the employment data. The practitioner must:

  • Take a Centralized Dominance File (CAF) number in good continuing;
  • Have an east-Services account and access to the SOR, the e-Services secure mailbox.

Revenue enhancement practitioners who run into those requirements should take the post-obit steps:

  1. Phone call the Practitioner Priority Service line
  2. Authenticate identity with CAF number, name, Social Security Number and date of nativity
  3. Fax a completed authorization grade (if needed)
  4. Request an unmasked Wage and Income Transcript
  5. Access e-Services secure mailbox to receive the unmasked Wage and Income Transcript

Alternatively, taxation practitioners who exercise not take an e-Services account or SOR access may asking that the unmasked Wage and Income Transcript be mailed to the client's address of record.

To ensure the authorization form is processed timely, review the IRS' Fact Canvas 2018-21.

The IRS continues to piece of work with the taxation professional person community and is at present exploring an selection to send both masked and unmasked transcripts to the security mailbox.

How to Create an eastward-Services Account

Taxation professionals who lack access to the secure SOR mailbox are encouraged to create an e-Services account equally quickly as possible. IRS due east-Services offers a suite of tools for tax professionals including the TDS and SOR. The SOR is available from the eastward-Services folio or from the TDS carte du jour.

IRS east-Services is protected by a ii-factor authentication and identity proofing process called Secure Admission. Secure Access provides a rigorous identity proofing process to set upwardly an business relationship and a two-step login process for returning users. Returning users must enter their credentials (username and password) and a security code sent to a mobile phone or generated past an IRS2Go app each time they attempt to access their account.

Prior to creating an east-Services business relationship, review the IRS' Secure Access: How to Annals for Sure Online Cocky-Help Tools. If the practitioner has all the information requested, information technology will accept approximately 15 minutes to complete. If some data is missing or the process is unable to exist completed successfully, there is an "exception procedure" for tax professionals. See Important Update nigh Your e-Services Business relationship on the IRS site for alternatives as well as FAQs.

Tax practitioners who are not eastward-Services users and only want access to the SOR must register and create an eastward-Services account. They do not demand to file whatsoever other applications, such as an e-file application.

Taxation practitioners who take an e-Services account and are responsible officials on an e-file application can add delegated users. These delegated users can admission the SOR and TDS once they create an e-Services account.

Practitioners who want to access both the SOR and TDS must create an due east-Services account and submit an e-file application if one is non on file. Unenrolled practitioners besides must due east-file five or more returns annually to access TDS. An due east-file application requires a groundwork check and may take upwards to 45 days to complete. Additional Information is on the IRS site at Circular 230 and Get an Authorized e-file Provider.