TIGTA Releases Annual Assessment of IRS’s Information Technology Program for Fiscal Year 2018: The Treasury Inspector General for Tax Administration (TIGTA) issued its annual assessment of the IRS’s Information Technology Program. TIGTA found that the IRS is taking steps to improve its security program deficiencies to comply with the requirements of Federal Information Security Modernization Act of 2014, although taxpayer data remains vulnerable to inappropriate and undetected use. TIGTA also identified issues in the IRS’s physical security and systems access controls, authentication controls, identification and protection of system boundary components, and system configuration and change management, among other areas.
UK Digital Services Tax: The United Kingdom has announced that it will introduce a Digital Services Tax (DST) to be effective in April 2020. The DST would impose a two percent tax on the revenues of specific digital businesses where revenues are linked the participation of UK users. The tax will apply to search engines, social media platforms, and online marketplaces.
IRS Issues ‘Get Ready for Taxes’ Notice: Today, the IRS issued Notice IR-2018-209, advising taxpayers about steps they can take now to ensure smooth processing of their 2018 tax return and avoid surprises when they file next year. The notice is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. The IRS also announced the release of Publication 5307, “Tax Reform Basics for Individuals and Families.” This new publication provides important information for individual taxpayers about:
- Increasing the standard deduction
- Suspending personal exemptions
- Increasing the child tax credit
- Adding a new credit for other dependents
- Limiting or discontinuing certain deductions