FROM:  Karen Moody, President/CEO

WINTER STORM TAX RELIEF

Federal

I was notified late Friday that Governor Reeves honored our request and sent his letter for federal tax relief to the Secretary of the Treasury.  I reached out to Senators Wicker and Hyde-Smith this morning asking them to encourage Treasury to expedite the review of Governor Reeves’ letter. I immediately received responses from both of their offices in concurrence.   

Again, please refer to the Internal Revenue Service Manual for penalty abatement for reasonable cause that we sent on Friday if relief is not officially granted. 

State

I spoke with MDOR this morning to clarify their stance on extending W-2s which was outlined in the email we sent on Friday. MDOR will work with firms impacted by the winter storm on a timeframe to get the W-2s submitted when you are able. You may contact MDOR at 601-923-7000 or use txassist@dor.ms.gov acknowledging that your firm is unable to submit the forms timely, rather than having to extend all of your clients individually. Refunds may be delayed until W-2s are received. 

MSCPA will continue to keep you updated via email and on our website homepage.

GOVERNMENT SHUTDOWN

On Friday, the IRS posted its contingency plan for a potential short government shutdown. Under the plan, effective until Feb 7, all IRS employees will continue working. The contingency plan uses funding from the Inflation Reduction Act. In other words, 100% coverage at the IRS will continue until February 7th.  AICPA does not expect this shutdown to be an extended shutdown but will continue monitoring and sharing relevant updates received. Please visit the AICPA's website for up-to-date information: https://www.aicpa-cima.com/resources/landing/navigating-the-government-shutdown