IR-2013-99, Dec. 17, 2013

WASHINGTON — The Internal Revenue Service today announced the selection of three new members and a chairperson to the Electronic Tax Administration Advisory Committee (ETAAC).

ETAAC provides an organized forum for discussion of issues in electronic tax administration and supports the goal of increasing electronic transactions between tax professionals and the IRS.

The new members are below.

• James Buttonow of Greensboro, N.C., is a certified public accountant and vice president of product development for Beyond415 software products. He designs and develops post-filing technology solutions and teaches post-filing topics to practitioners.
• Everard Lee Davenport of Washington, D.C., is principal at Davenport Consulting, working with a variety of organizations to create and lead programs providing free income tax services, computer access and digital learning to underserved communities. He is the architect of MyFreeTaxes.com.
• Troy Thibideau of Maple Grove, Minn., is executive vice president of marketing and client operations for Convey Compliance Systems, Inc., working with third party service providers and information returns. He is a former CPA with over 20 years of experience within the technology and finance industries.

The new chairperson is below.

• Cyrus Daftary of Newton, Mass., has been elected by the members to serve as the chairperson of ETAAC for 2013-2014. He is a partner with Burt, Staples & Maner and is responsible for developing and implementing tax software solutions for withholding and information return reporting. Daftary’s experience includes representing clients before the IRS under Form 1042 audits and Form 1042 voluntary disclosures, and designing an online course “Cyberlaw: Legal Research, Issues and Practice in Cyberspace.” He earned an economics degree from Indiana University, a Juris Doctorate from University of Dayton School of Law and a LL.M. from Temple University in Tax.

Each June, the ETAAC submits a report to Congress reporting on the progress of the IRS’s electronic tax initiatives. ETAAC was created in 1998 by the IRS Restructuring and Reform Act of 1998 (RRA 98).

Although the year is almost over, you still have time to take steps that can lower your 2013 taxes. Now is a good time to prepare for the upcoming tax filing season. Taking these steps can help you save time and tax dollars. They can also help you save for retirement. Here are three year-end tips from the IRS for you to consider:

1. Start a filing system.  If you don’t have a filing system for your tax records, you should start one. It can be as simple as saving receipts in a shoebox, or more complex like creating folders or spreadsheets. It’s always a good idea to save tax-related receipts and records. Keeping good records now will save time and help you file a complete and accurate tax return next year.
2. Make Charitable Contributions.  If you plan to give to charity, consider donating before the year ends. That way you can claim your contribution as an itemized deduction for 2013. This includes donations you charge to a credit card by Dec. 31, even if you don’t pay the bill until 2014. A gift by check also counts for 2013 as long as you mail it in December. Remember that you must give to a qualified charity to claim a tax deduction. Use the IRS Select Check tool at IRS.gov to see if an organization is qualified.

   Make sure to save your receipts. You must have a written record for all donations of money in order to claim a deduction. Special rules apply to several types of property, including clothing or household items, cars and boats. For more about these rules see Publication 526, Charitable Contributions.

   If you are age 70½ or over, the qualified charitable distribution allows you to make tax-free transfers from your IRAs to charity. You can give up to $100,000 per year from your IRA to an eligible charity, and exclude the amount from gross income. You can use the excluded amount to satisfy any required minimum distributions that you must otherwise receive from your IRAs in 2013. This benefit is available even if you do not itemize deductions. This special provision is set to expire at the end of 2013. See Publication 590, Individual Retirement Arrangements (IRAs), for more information.

3. Contribute to Retirement Accounts.  You need to contribute to your 401(k) or similar retirement plan by Dec. 31 to count for 2013. On the other hand, you have until April 15, 2014, to set up a new IRA or add money to an existing IRA and still have it count for 2013.

   The Saver’s Credit, also known as the Retirement Savings Contribution Credit, helps low- and moderate-income workers in two ways. It helps people save for retirement and earn a special tax credit. Eligible workers who contribute to IRAs, 401(k)s or similar workplace retirement plans can get a tax credit on their federal tax return. The maximum credit is up to $1,000, $2,000 for married couples. Other deductions and credits may reduce or eliminate the amount you can claim.

For more on all these topics, visit the IRS.gov website.

Additional IRS Resources:

• Tax Topic 305 – Recordkeeping
• Exempt Organizations Select Check tool
• Publication 526, Charitable Contributions
• Publication 590, Individual Retirement Arrangements (IRAs)  
• 401(k) Plans
• Tax Topic 610 – Retirement Savings Contributions Credit
  

IRS YouTube Videos:

• Year-End Tax Tips 2013 – English | Spanish | ASL

IRS Podcasts:

• Year-End Tax Tips 2013 – English | Spanish

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