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Tax Briefing-August 2017

Tax Preparation Software Will Ask Additional Questions for 2017 Business Returns:  In a news release, the IRS noted an increase in identity theft involving business-related tax returns, including Schedule K-1 filings made by partnerships. To help combat this problem, the IRS will be asking practitioners to gather more information on their business clients. For 2017 business returns filed in 2018, tax preparation software may require the following information: (1) the name and Social Security Number of the company individual authorized to sign the return; (2) estimated tax payment history; (3) parent company information; (4) additional information based on deductions claimed; and (5) filing history for the company's other business-related tax forms, such as Form 940 and Form 941. In addition, the IRS warns practitioners to be aware of any potential business clients claiming they don't currently have an EIN. News Release IR 2017-123.