CO Tax News

From our IRS Stakeholder Liaison

The IRS today reminded tax professionals who specialize in representation or other services that they will need a Secure Access username and password to use the new authorization form upload tool launching next month..  This upload tool will allow an alternative to person-to-person contact as COVID-19 remains a threat to taxpayers and tax professionals. But tax professionals must have a Secure Access username and password in order to access it.  This new upload tool will allow tax professionals to safely work with clients remotely to obtain an electronic signature and to electronically upload Forms 2848 or 8821 to the IRS. The forms will be reviewed by the IRS following the usual process.

Many tax professionals can use their e-Services username and password to access the “Submit Forms 2848 and 8821 Online” tool when it becomes available in mid-January. Tax professionals who do not have access to e-Services may have to register using personal tools such as Get Transcript, Online Account or Get an IP PIN.  To register for one of the personal tools, review IRS.gov/SecureAccess to see what information is needed to successfully verify identities and create an account. Please note: if you do not have a mobile phone in your name you must request an authorization code by mail which will delay the registration process.

Colorado Sales Tax Changes

Colorado Sales/Use tax collection is under reconstruction.  For a quick summary see this quality post which summarizes these links.

CO Special Legislative Session November 2020

Colorado government is having a special session this month to assist Colorado businesses with funding.  Here are the pre-released bills.

Colorado Fiscal Year 2021-22 Budget Request by Governor Jared Polis – November 2, 2020

07-11/2020: Colorado NOL and QBI changes no longer follow federal law.  See https://leg.colorado.gov/bills/hb20-1420.

Watching Minnesota

COsEA Legislative Committee and NAEA are concerned about law changes in MN that could effect all EAs who prepare Minnesota tax returns, particularly those that might involve installment plans for underpayers.  The Minnesota Society of Enrolled Agents has reached out to NAEA for assistance to amend Minnesota Statute 332B requiring enrolled agents who represent even one single taxpayer in the state to:

  • Register with Minnesota, despite being federally licensed
  • Pay a $1,000 initial registration fee
  • Pay a $250 annual fee
  • Post a $5,000 security bond

Failure to comply subjects enrolled agents to fines and penalties of up to $5,000 per incident, injunctions and civil damages.

If Minnesota Statute 332B is not fixed – either through the legislative or judicial process, or both – it is likely to become the model legislation for other states. Don’t let the next state be ours!