2007T

P r a c t i t i o n e r ’ s G u i d e t o t h e F i l i n g S e a s o n

AXhints

FAQs on TETR: What is the 

Telephone Excise Tax Refund? . . . . . 2

Splitting 2006 

Federal Income Tax Refunds. . . . . . . . 3

Frequently Asked Questions 

about Splitting 2006 

Federal Income Tax Refunds. . . . . . . . 5

Standards of Practice 

for Tax Professionals . . . . . . . . . . . . . . . . . 8

Preparers Can Use PTINs to 

Help Prevent Identity Theft. . . . . . . . . 9

What’s New for 2006—

A Summary of 

Important Changes . . . . . . . . . . . . . . . . . . . 9

Electronic Signatures. . . . . . . . . . . . . . . 10

Important Reminders 

on Depreciation . . . . . . . . . . . . . . . . . . . . . 11

ITIN (Individual Taxpayer 

Identification Number) 

Authorized Acceptance Agents . . 12

New Address For 

Filing Form W-7 . . . . . . . . . . . . . . . . . . . . . . 12

Where to Send 

Authorization Requests. . . . . . . . . . . . 12

EITC Resources Online 24/7 . . . . . . . 13

New Form for 

Estate and Gift Tax Program. . . . . . 13

Assisting Non-English-speaking 

Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

IRS e-file Marketing Tool Kit. . . . . . 15

Learn All About IRS e-file

in Publication 3452. . . . . . . . . . . . . . . . . . 15

Inside this Issue Welcome to this year’s 

Tax Hints—Practitioner’s 

Guide to the Filing Season

As in past years, this electronic publication collects links to vital 

information and data from the irs.gov website, and presents 

them all here, in one convenient sourcebook for tax professionals.

The first three Tax Hints items are particularly important—they 

address legislative changes that greatly affect this filing season. 

The lead article covers the telephone excise tax refund (TETR); the 

next two cover the split refund initiative. The Service’s early filing 

season experience shows that too few filers are availing themselves 

of the TETR. Please make sure your clients are taking advantage 

of this refund when they file. The split refund options offer more 

flexibility and should encourage filers to put tax refunds into 

savings accounts. 

National Public Liaison (NPL) publishes Tax Hints primarily for 

our stakeholders in the tax preparation field. You are the key 

authors of this publication: you told NPL what information you 

need for filing season reference and how you’d like it presented. 

Your input continues to guide and shape this document and is 

always welcome. 

Tax Hints points of contacts throughout the Service also play a 

key role in this publication: they send NPL information and data 

for inclusion that will make filing season easier and more efficient 

for the IRS. This material is usually specifically geared to our audience of tax professionals. Please send any comments, or suggestions for additional inclusions, by email to the program manager 

at gerard.j.ruelle@irs.gov.
Inside this Issue

continued from page 1

2007 TAX HINTS

Practitioner’s Guide to the Filing Season

T

he telephone excise tax refund (TETR) is 

 aone-time payment available on the 2006 

 income tax return, designed to refund the 

previously collected federal excise tax on long 

distance or bundled service.

Who is eligible for the refund?

In general, any individual, business, or taxexempt organization that paid federal excise 

tax on long distance or bundled service billed 

after February 28, 2003 and before August 1, 

2006 may be eligible to request the refund on 

the 2006 tax return. Taxes paid on local-only 

service are not eligible for the refund.

How do taxpayers 

request a refund?

Individual taxpayers can request a standard 

amount from $30 to $60 based on the number 

of exemptions claimed on their tax returns. 

Individual taxpayers who choose the standard 

amount need only fill out one line on their 

tax returns. The standard amount is based on 

actual telephone usage data and the amount 

applicable to a family or other household 

reflects the long distance phone tax paid by 

similarly-sized families or households. 

Requesting the standard amount may be the 

easiest way for taxpayers to get their refunds 

and avoid gathering 41 months’ worth of old 

phone records. For some taxpayers, requesting 

a refund based on the actual amount of tax 

paid may be more beneficial. 

These taxpayers should review their phone 

bills since Feb. 28, 2003. Taxpayers who 

choose this option can fill out Form 8913 

and attach it to their regular 2006 income 

tax returns (Forms 1040, 1040A, 1040NR or 

1040EZ). 

For those who do not otherwise have to file 

a tax return, the new Form 1040EZ-T can be 

used to request this refund. If filers request the 

standard amount, they can simply fill out form 

1040EZ-T using the eligible number of exemptions. If filers request the actual amount of 

tax paid, they must fill out Form 8913, Credit 

for Federal Telephone Excise Tax Paid, and 

attach it to Form 1040EZ-T.

How do businesses and tax-exempt 

organizations request a refund?

Businesses, tax-exempt organizations and sole 

proprietors can request the actual amount of 

tax paid using the Form 8913. Businesses and 

sole proprietors attach this form to their regular income tax returns for 2006. Tax-exempt 

organizations should attach it to Form 990-T.

The IRS has developed a formula that most 

businesses, tax-exempt organizations and 

eligible sole proprietors can use to calculate 

their refund. To use the formula, eligible taxpayers need only review their phone bills for 

2 months, instead of all 41 months included in 

the refund period. In addition, eligible taxpayers need to know their total telephone expenses for the 41-month period and the number 

of employees reported on their federal withholding tax return (Form 941) for the second 

quarter of 2006. The formula is an alternative 

to using monthly phone bills to determine the 

amount of refund to request. 

In general, businesses and tax-exempt 

organizations that were operating at any time 

during the period from March 1, 2003, through 

July 31, 2006, and continued to incur phone 

expenses from April 2006 through September 

2006, may use the formula. This includes corporations, S corporations, partnerships, trusts 

and estates. (Trusts and estates are treated as 

businesses in applying the formula.) Nonprofit, 

tax-exempt organizations, including churches 

and charities, can also use the formula. In 

addition, individual owners of rental property 

and self-employed people, including independent contractors, sole proprietors and farmers, 

can use the formula, but only if they report 

gross rental and business income totaling more 

than $25,000 on their 2006 federal income tax 

returns. 

For more details on the Telephone Excise 

Tax Refund, go to irs.gov.

FAQs on TETR

What is the Telephone Excise Tax Refund? Most Common Reasons for Power of 

Attorney (POA) and Tax Information 

Authorization (TIA) Rejection . . . . . . . . . . . 15

Schedule K-1, 

Two-Dimensional Barcodes . . . . . . . . . . . . . . 15

Key IRS Personnel Changes 

in 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Guidelines for Faxed Submissions. . . . . . 16

Use These Simple Solutions 

for an Error-Free Tax Return. . . . . . . . . . . . . 17

The Information Reporting Program 

Advisory Committee (IRPAC) . . . . . . . . . . . . 17

New Links Added this Year. . . . . . . . . . . . . . . 17

Federal Tax Deposit 

Requirements for Employment . . . . . . . . . 18

Injured Spouse Allocations . . . . . . . . . . . . . . 18

IRS Has Merged Digital Dispatch

and e-News for Tax Professionals . . . . . . . 19

Information Returns Processing . . . . . . . . 19

2007 IRS Nationwide Tax Forums 

Begin in July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Practitioner Priority Services (PPS). . . . 20

Tax Talk Today. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

U.S. Residency Certification User Fee 

Implementation: November 1, 2006 . . . 20

Reducing the Burden 

Taxpayers Face. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Taxpayer Advocate Service . . . . . . . . . . . . . . 21

Low Income Tax Clinics (LITCs) . . . . . . . . . . 21

The Internal Revenue Service 

Advisory Council (IRSAC). . . . . . . . . . . . . . . . . 22

Non-Resident Alien 

Withholding and Reporting. . . . . . . . . . . . . . 22

Lockbox Post Office Box Closures . . . . . . 23

Reporting Tax Fraud . . . . . . . . . . . . . . . . . . . . . . . 24

Top 10 Potential Triggers 

for Alternative Minimum Tax. . . . . . . . . . . . 24

IRS Toll Free Numbers . . . . . . . . . . . . . . . . . . . . . 25

Internal Revenue Service at a Glance . 26

irs.gov Hotlinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

2
Practitioner’s Guide to the Filing Season

Taxpayers have more 

direct deposit options 

for their 2006 refunds

T

axpayers have more choice and flexibility 

 for direct deposits of their 2006 federal 

 income tax refunds. Now they can split their 

refunds among up to three checking or savings 

accounts, with up to three different U.S. financial institutions. This new option is available 

regardless of whether taxpayers file the following original returns on paper or electronically:

Form 1040

Form 1040A

Form 1040EZ

Form 1040-PR

Form 1040NR

Form 1040NR-EZ

Form 1040-SS

(Taxpayers filing Form 1040EZ-T, Request for 

Refund of Federal Telephone Excise Tax, or 

Form 8379, Injured Spouse Allocation, cannot 

opt to split their refunds.)

Taxpayers can continue to use the direct 

deposit line on Form 1040 to electronically 

send their refunds to one checking or savings 

account, or use IRS’s new Form 8888, Direct 

Deposit of Refund, to split their refunds 

among two or three different accounts or 

financial institutions.

This change gives taxpayers more options 

for managing their refunds, teamed with 

the speed and safety of direct deposit. IRS 

estimates taxpayers will choose to split their 

refunds on approximately 3.8 million returns 

this year.

Two requirements 

for direct deposits:

IRS will electronically deposit refunds to any of 

a taxpayer’s checking or savings accounts with 

U.S. financial institutions, providing:

n The taxpayer supplies accurate account and 

routing numbers; and

n The financial institutions accept direct 

deposits for the type of accounts designated.

Taxpayers cannot direct their refunds into 

accounts of others. However, in the case of 

joint refunds, taxpayers can designate deposits 

to joint accounts or accounts of either spouse. 

For example: IRS will deposit a joint refund 

into an individual retirement arrangement (IRA) 

owned by one spouse, providing the financial 

institution accepts direct deposits for IRAs and 

will accept a joint refund to an account of only 

one spouse. 

These are the same guidelines IRS applies to 

direct deposits when a taxpayer directs his or 

her refund to one account. The only change is 

taxpayers now have more convenient options 

for receiving their refunds.

Examples of savings accounts taxpayers can 

choose to direct their refunds to include, but 

are not limited to:

n Regular passbook savings accounts;

n Individual retirement arrangements (IRAs);

n Health savings accounts (HSAs);

n Archer MSAs;

n Coverdell education savings accounts; and 

n Individual development accounts (IDAs).

Direct deposit acceptance varies among financial institutions and taxpayers first should 

verify that their financial institutions will accept 

direct deposits for the types of accounts they 

are designating. For example, a financial institution may accept direct deposits for regular 

savings accounts, but not for education savings 

accounts. 

Note of caution on 

direct deposits to IRAs

Taxpayers wanting to deposit all or part of 

their refunds to their IRA accounts should first 

ensure their financial institutions will accept 

direct deposits to IRA accounts. 

As with all IRA deposits, the account owner is 

responsible for informing their IRA trustee of 

the year for which the deposit is intended and 

for ensuring their contributions do not exceed 

their annual contribution limitations. IRS direct 

deposits of federal income tax refunds will not 

indicate a contribution year for IRA accounts.

If taxpayers fail to notify their IRA trustees of 

the intended year for the deposit, their trustees 

can assume the deposits are for 2007.

IRS is not responsible for the timeliness or 

contribution amounts related to IRA direct 

deposits. Since errors on returns or refund 

offsets could change the amount of refunds 

available for deposit, taxpayers who want to 

apply their refunds to 2006 IRA contributions 

should confirm the amount of the deposit and 

deposit date and make any necessary corrections to their 2006 contributions before their 

filing deadlines. If the deposit is not made 

into the account by the due date of the return 

(without regard to extensions), the deposit is 

not a contribution for 2006. Taxpayers must 

file amended 2006 returns and reduce any IRA 

deductions and any retirement savings contributions credits they claimed. 

Accurate account and 

routing numbers imperative

Taxpayers should verify routing and account 

numbers with their financial institutions. 

Although taxpayers can usually discern the 

routing number for their checking account 

from the face of their checks, routing numbers 

for some savings accounts are not always 

apparent.

IRS assumes no responsibility for taxpayer or 

preparer error and taxpayers should ensure 

their account and routing information is accurately entered. Errors could result in different 

scenarios. For example:

n If taxpayers omit a digit in the account 

or routing number of one account and the 

number does not pass IRS’s validation check, 

IRS will mail taxpayers a check for the entire 

amounts of their refunds;

n If taxpayers incorrectly enter account or 

routing numbers and the designated financial 

institutions reject and return the deposits to 

IRS, IRS will issue checks for that portion of the 

refunds; or

Splitting 2006 Federal Income Tax Refunds

2007 TAX HINTS

continued on page 4

3
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

4

n If taxpayers incorrectly enter account or 

routing numbers belonging to others and the 

designated financial institutions accept the 

deposits, taxpayers must work directly with the 

respective financial institutions to recover their 

funds.

Opportunity for asset building

Split refunds offer taxpayers the opportunity 

to build assets by sending part of their refunds 

to checking for immediate needs and part 

to savings for future needs. A recent study 

conducted by Harvard Business School and 

other interested parties, “Refunds to Assets: 

Splitting Refunds and Building Assets,” found 

one in three lower income taxpayers who were 

offered a choice opted to direct a portion of 

their refunds into savings accounts. For many, 

it was their first savings experience with a 

financial institution.

Regardless of taxpayers’ filing methods—

electronic or paper—direct deposit gives them 

faster access to their funds than paper checks.

Adjusting deposits for 

errors, offsets, etc.

Several factors could change the amount of a 

taxpayer’s refund. Math errors—one of the top 

mistakes on returns—can increase or decrease 

a taxpayer’s refund and the amount available 

for deposit. Refund offsets for delinquent federal or state taxes, child support, student loans, 

etc., and freezes on the Earned Income Tax 

Credit (EITC) portion of a refund until IRS can 

verify the taxpayer’s eligibility can decrease the 

refund amount available for deposit.

Adjustments resulting 

in larger refunds

If a taxpayer splits his or her refund among 

multiple accounts and the mistake results in a 

larger refund than expected, IRS will add the 

difference to the last account designated.

Example of an adjustment for an increased 

refund: A taxpayer’s return shows a refund 

of $300 and the taxpayer asks IRS to split the 

refund among three accounts, depositing $100 

to each account. Due to an error, the refund 

is increased by $150. IRS will adjust the direct 

deposits as follows:

Math error and delinquent 

tax adjustments resulting 

in reduced refunds 

If IRS must reduce the amount of a taxpayer’s 

refund due to a math error or offset for delinquent federal taxes and the taxpayer has 

allocated his or her refund among two or three 

accounts, IRS will adjust the deposits using a 

bottom-up approach and first deduct the difference from the amount designated for the last 

account. If the difference exceeds the amount 

designated for the last account, IRS will deduct 

the remainder from the amount designated to 

the next account, etc.

Example of a math error/delinquent federal 

tax offset adjustment resulting in a reduced 

refund: A taxpayer’s return shows a refund 

of $300 and the taxpayer asks IRS to split the 

refund among three accounts with $100 to 

each account. Due to a math error, the refund 

is decreased by $150. IRS will adjust the direct 

deposits as follows:

Taxpayers will receive letters from IRS explaining any adjustments to their returns, refund 

amounts, and direct deposits. Taxpayers can 

get information about refund adjustments also 

through Where’s My Refund? on www.irs.gov 

or by calling (800) 829-1954.

IRS recommends taxpayers use electronic 

filing to avoid math errors and other common 

problems that can result in adjustments to 

their returns and change the expected amount 

of their refunds.

Adjusting deposits for EITC freezes

If IRS withholds or freezes the EITC portion of 

a taxpayer’s refund pending additional information to verify eligibility, IRS will deposit the 

refund, less the amount withheld, according to 

the bottom-up approach discussed above.

If IRS later determines the taxpayer is eligible 

to receive the credit, the agency will deposit 

the amount withheld into the first account 

designated.

Offsets for delinquent state taxes, 

child support, etc., resulting in 

reduced refunds

If a taxpayer owes delinquent state income 

taxes, back child support, or delinquent 

non-tax federal debts such as student loans, 

etc., the Department of Treasury’s Financial 

Management Service (FMS), which disburses 

IRS refunds, may offset the refund for the 

delinquent amount. (These offsets could occur 

whether taxpayers opt to receive their refunds 

via paper checks or direct deposits to one or 

several accounts.)

FMS will deduct past-due amounts from the 

payment that appears first on the payment file 

received from IRS (the IRS payment file orders 

accounts from the lowest to the highest routing number). If the debt exceeds the payment 

designated for the account that appears first 

on the payment file, FMS will reduce the payment designated for the account that appears 

next, etc. 

Taxpayers will receive letters from FMS 

explaining any offset amounts, the agencies 

receiving the payments, the address and telephone number of the agencies, and amounts 

of their refunds or direct deposits offset. 

Taxpayers who dispute the debts should contact the agencies shown on the notice, not IRS, 

Filing Direct Deposit Paper Check

Method Refund Received Refund Received

e-file Within 2 weeks Within 3 weeks

paper Within 5 weeks Within 6 weeks 

Actual

Requested Direct Deposits

 Account 1 $100 $100

 Account 2 $100 $100 

 Account 3 $100 $250 ($100 taxpayer 

 requested plus 

 $150 adjustment) 

Actual

Requested Direct Deposits

 Account 1 $100 $100

 Account 2 $100 $50 ($100 taxpayer 

 requested minus 

 $50 adjustment) 

 Account 3 $100 $0 ($100 taxpayer 

 requested minus 

 $100 adjustment) 

continued from page 3

continued on page 5
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

5

since IRS has no information about the validity 

of the debt. Information about refund offsets 

also will be available through Where’s My 

Refund?

Where’s My Refund? 

The most convenient source 

for refund information

Whether taxpayers direct deposit their refunds 

into several accounts, into one account, or opt 

to receive paper checks, they can use IRS’s 

popular Where’s My Refund? feature to track 

their refunds.

Where’s My Refund? will include a message confirming the refund was split and 

the expected deposit date. It will not specify 

the amount of the individual deposits or the 

accounts to which the deposits were made but, 

if IRS or FMS adjusted the refund amount for 

math errors, offsets, etc., it will inform taxpayers about the amount of the adjustment. 

Taxpayers can access Where’s My Refund?

online at irs.gov or by calling (800) 829-1954. 

Inviting stakeholder input

IRS invites stakeholders and partners to tell 

us about their experience with 2006 split 

refunds— what worked, and what can be 

improved. We welcome feedback from stakeholders about their experiences assisting their 

customers and clients during the filing season, 

and will use this feedback to modify and 

improve the process for 2007 refunds. 

Stakeholders can comment through their 

IRS stakeholder relationship manager in 

National Public Liaison (NPL) or via e-mail to 

splitrefundcomments@irs.gov. Although we 

will read and consider every experience or 

suggestion, we can not respond to individual 

e-mail messages.

Speed, safety and choice — 

with direct deposit you can 

have it all!

Split your refund among 

as many as three accounts.

Q. What is a split refund?

A. A split refund lets you divide your refund, 

in any proportion you want, and direct deposit 

your funds among two or three different 

accounts with U.S. financial institutions.

Q. What are the benefits of 

splitting my refund?

A. Instead of choosing between depositing 

your refund into a checking or savings account 

and later moving part of your refund to 

another account, you can allocate your refund 

among up to three different accounts and send 

your money where you want it the first time. 

By splitting your refund, you get the convenience of directing some of your refund to your 

checking account for immediate needs and 

sending some to savings for future use. Plus, 

you get the safety and speed of direct deposit, 

meaning you will have access to your refund 

faster than if you opt to receive a paper check.

Q. How do I split my refund?

A. Simply complete and attach Form 8888, 

Direct Deposit of Refund, to your federal 

income tax return to tell IRS how much and to 

which of your accounts you want your refund 

deposited.

Q. Can I still send my refund 

to just one account?

A. Yes, you can ask IRS to direct deposit your 

2006 refund into just one account, or split it 

among two or three different accounts. The 

choice is yours. 

If you want your refund deposited into one 

account, use the special direct deposit lines 

on your tax return (Forms 1040, 1040A, etc.). 

If you want your refund deposited to two or 

three accounts, use Form 8888, Direct Deposit 

of Refund. 

Q. Does my refund have to 

exceed a certain amount to 

split it into different accounts?

A. Your deposit to each account must be at 

least $1.00.

Q. If I want to split my refund 

among different accounts, can 

those accounts be with different 

financial institutions?

A. Yes, you can split your refund among up 

to three different U.S. financial institutions as 

long as they will accept a direct deposit to your 

account.

Q. Must I file electronically 

to split my refund?

A. No, you can split your refund whether 

you file electronically or on paper. However, 

IRS recommends using e-file to avoid simple 

mistakes that could change the amount of your 

refund, and therefore the amount available for 

deposit.

Q. Can I split my refund 

if I file a 1040-EZ?

A. Yes, you can split your refund on an 

original return filed on any of the following 

returns: Form 1040, 1040A, 1040EZ, 1040NR, 

1040NR-EZ, 1040-SS, or 1040-PR. However, 

you cannot split your refund if you file Form 

1040EZ-T, Request for Refund of Federal 

Telephone Excise Tax, or Form 8379, Injured 

Spouse Allocation.

Q. Will splitting my refund cause 

a delay in depositing my refund?

A. No, splitting your refund will not cause a 

delay. Because it uses direct deposit technology, your funds will be in your accounts more 

quickly than if you opt to receive your refund in 

a paper check.

Frequently Asked Questions 

about Splitting 2006 

Federal Income Tax Refunds

continued from page 4

continued on page 6
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

6

Q. Can I split my refund between a 

direct deposit and a paper check?

A. No, you cannot split your refund between 

a direct deposit and paper check. You can 

either opt for the safety, security and speed of 

direct deposit to one, two, or three different 

accounts or request your refund via a paper 

check. 

Q. Can I split my refund if 

I have only two accounts? 

A. Yes, you can electronically direct your 

refund to one, two or three separate accounts 

at your discretion. This change gives you more 

convenience, flexibility and options in managing your finances. 

You can designate a direct deposit to one 

account directly on the Form 1040 series 

of forms or you can use Form 8888, Direct 

Deposit of Refund, to split your refund among 

two or three different accounts.

Q. Must I split my refund equally? 

A. No, you have the flexibility of dividing and 

directing your refund any way you want. There 

is no requirement to make the deposits equal. 

Q. Can I direct IRS to deposit 

all or part of my refund to any of 

my accounts with any financial 

institution?

A. IRS will direct deposit refunds to any of 

your checking or savings accounts with any 

U.S. financial institution that accepts electronic 

deposits. However, you should verify that your 

financial institution accepts direct deposits for 

the type of account you want to direct your 

deposit to and verify the account and routing 

numbers.

Q. If I am filing a joint return with 

my spouse, must our refund be 

deposited to a jointly-held account?

A. You can ask IRS to direct deposit a refund 

on a joint return into your account, your 

spouse’s account, or a joint account. However, 

state and financial institution rules can vary 

and you should first verify your financial institution will accept a joint refund into an individual account. 

Q. What types of accounts are 

eligible to receive my refund via 

direct deposit?

A. You can direct your refund to any of 

your checking or savings accounts with a U.S. 

financial institution as long as your financial 

institution accepts direct deposits for that 

type of account and you provide valid routing 

and account numbers. Examples of savings 

accounts include: passbook savings, individual 

development accounts (IDAs), individual retirement arrangements (IRAs), health savings 

accounts (HSAs), Archer MSAs, and Coverdell 

education savings accounts.

However, some financial institutions will 

accept direct deposits for some types of 

accounts, but not others. Contact your financial institution to ensure they will accept your 

direct deposit and verify your account and 

routing number. 

IRS also encourages taxpayers and their 

preparers to ensure account and routing numbers are accurately entered on returns so your 

funds can be deposited as intended. 

Q. Can I direct part or all of my 

refund to my prior year individual 

retirement account (IRA)?

A. You should ensure your financial institution accepts direct deposits to prior year IRA 

accounts. 

As with all IRA deposits, the account owner 

is responsible for informing their IRA trustee of 

the year for which the deposit is intended and 

for ensuring their contributions do not exceed 

their annual contribution limitations. IRS direct 

deposits of federal tax refunds will not indicate 

a contribution year for IRA accounts.

If you fail to notify your IRA trustee of the 

intended year for the deposit, your trustee can 

assume the deposit is for 2007.

IRS is not responsible for the timeliness or 

contribution amounts related to an IRA direct 

deposit. Since an error on your return or an 

offset to your refund could change the amount 

of refund available for deposit (for more information, see “Are there conditions that could 

change the amount of my direct deposits?”) 

you must verify the deposit was actually made 

to the account by the due date of the return 

(without regard to extensions) and the deposit 

amount. If the deposit is not made into your 

account by the due date of the return (without 

regard to extensions), the deposit is a contribution for 2007, rather than 2006. You must file 

an amended 2006 return and reduce any IRA 

deduction and any retirement savings contributions credit you claimed. 

Q. Can I direct part of my refund 

to pay a loan?

A. No, you can direct your refund to either a 

checking or savings account; you cannot opt 

for a direct deposit into a loan account.

Q. If I use a tax professional to 

prepare my return, will it cost me 

more to split my refund?

Tax preparation fees could vary. Ask your tax 

professional about his or her fees up front. 

Q. Can I direct part of my refund 

into my tax professional’s checking 

or savings account to pay my tax 

preparation fee?

A. No, you can direct your refund to any of 

your checking or savings accounts; you cannot 

direct your refund to someone else’s account 

(except for your spouse’s account on a joint 

refund).

Q. Are there conditions 

that could change the amount 

of my direct deposits?

A. There are several factors that could change 

the amount of your tax refund—resulting in 

either a larger or smaller refund than expected. 

Examples that could increase your refund are 

math errors and other mistakes. Examples 

that could decrease your refund include math 

errors, mistakes, owing delinquent federal 

taxes, state taxes, child support, student loans, 

or other delinquent federal obligations or if 

the Earned Income Tax Credit (EITC) portion of 

your refund is withheld pending further review. 

For additional information, see “What if a 

mistake on my return increases the amount of 

my refund?,” “What if a mistake on my return 

decreases the amount of my refund?,” “ What 

if I owe back taxes to IRS?,” “How will IRS

continued from page 5

continued on page 7
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

handle my split refund deposits if the Earned 

Income Tax Credit (EITC) portion of my refund is 

withheld pending further review?,” “Are there 

other conditions that could reduce the amount 

of my refund and change the amount I want 

deposited to each account?” and “What will 

happen if I owe both back taxes to IRS and back 

child support, state taxes, student loans, etc?”

Q. What if a mistake on my return 

increases the amount of my refund?

A. If you split your refund among multiple 

accounts and the mistake results in a larger 

refund than you expected, IRS will add the 

difference to the last account you designated. 

Example: Your return shows a refund of 

$300 and you ask IRS to split the refund 

among three accounts, depositing $100 to 

each account. Due to an error, your refund is 

increased by $150. IRS will adjust your direct 

deposits as follows:

You will receive a letter from IRS explaining any errors resulting in adjustments to your 

return, refund amount, and direct deposits.

IRS recommends using electronic filing to 

avoid math errors and other common problems 

that can result in adjustments to your return 

and change the amount of your refund.

Q. What if a mistake on 

my return decreases the 

amount of my refund?

A. If the mistake results in a smaller refund, 

IRS will use a bottom-up rule and deduct the 

difference from the amount you designated for 

the last account shown on Form 8888. If the 

difference exceeds the amount designated for 

the last account, IRS will deduct the remainder from the amount designated to the next 

account, etc. 

Example: Your return shows a refund of $300 

and you ask IRS to split your refund among 

three accounts with $100 to each account. Due 

to an error, your refund is decreased by $150. 

IRS will adjust your direct deposits as follows:

IRS will apply this same bottom-up rule to 

adjust direct deposits for refund offsets for 

unpaid federal taxes or if the Earned Income 

Tax Credit (EITC) portion of your refund is 

withheld pending further review. 

You will receive a letter from IRS explaining any errors resulting in adjustments to 

your return, your refund amount, and direct 

deposits.

IRS recommends using electronic filing to 

avoid math errors and other common problems 

that can result in adjustments to your return 

and change the amount of your refund.

Q. What if I owe back taxes to IRS?

A. If you owe delinquent federal taxes, IRS 

will withhold the balance due from your refund 

and adjust your split refund direct deposits 

under the bottom-up rule (see “What if a 

mistake on my return decreases the amount 

of my refund?”). You will receive a letter from 

IRS explaining any adjustments to your refund 

amount and direct deposits.

Q. How will IRS handle my split 

refund deposits if the Earned 

Income Tax Credit (EITC) portion 

of my refund is withheld pending 

further review?

A. IRS will deposit your refund, less the 

amount withheld according to the bottom-up 

rule— see “What if a mistake on my return 

decreases the amount of my refund?” 

You will receive a letter from IRS explaining 

why a portion of your refund was withheld, 

the effect on your direct deposits, and what 

information you need to provide to verify your 

EITC eligibility. If IRS later determines you are 

eligible to receive the credit, the agency will 

deposit the amount withheld into the first 

account you designated on Form 8888.

Q. Are there other conditions that 

could reduce the amount of my 

refund and change the amount I 

want deposited to each account?

A. If you owe delinquent state income 

taxes, back child support, or delinquent 

non-tax federal debts such as student loans, 

etc., the Department of Treasury’s Financial 

Management Service (FMS), which disburses 

IRS refunds, may offset your refund for the 

delinquent amount. 

FMS will deduct the past-due amounts from 

the payment that appears first on the payment 

file received from IRS (the IRS payment file 

orders accounts from the lowest to the highest 

routing number). If the debt exceeds the payment designated for the account that appears 

first on the payment file, FMS will reduce 

the payment designated for the account that 

appears next, etc. 

You will receive a letter from FMS explaining 

any offset amount, the agency receiving the 

payment, the address and telephone number 

of the agency, and amount of your refund/

direct deposit offset. If you dispute the debt, 

you should contact the agency shown on the 

notice, not IRS, since IRS has no information 

about the validity of the debt. 

You can get information about refund offsets 

through Where’s My Refund? on irs.gov.

Q. What will happen if I owe both 

back taxes to IRS and back child support, state taxes, student loans, etc?

A. If you owe delinquent federal taxes, 

IRS will withhold the balance due from your 

refund. If your refund exceeds the amount of 

your delinquent federal taxes, IRS will adjust 

your split refund direct deposits under the bottom-up rule discussed earlier (see “What if a 

Actual

Requested Direct Deposits

 Account 1 $100 $100

 Account 2 $100 $100 

 Account 3 $100 $250 ($100 taxpayer 

 requested plus 

 $150 adjustment) 

Actual

Requested Direct Deposits

 Account 1 $100 $100

 Account 2 $100 $50 ($100 taxpayer 

 requested minus 

 $50 adjustment) 

 Account 3 $100 $0 ($100 taxpayer 

 requested minus 

 $100 adjustment) 

continued from page 6

continued on page 8

7
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

mistake on my return decreases the amount of 

my refund?”).

If you also owe delinquent state income 

taxes, back child support, or delinquent non-tax 

federal debts such as student loans etc., the 

Department of Treasury’s Financial Management 

Service (FMS) will deduct the past-due amounts 

from the payment that appears first on the payment file received from IRS (the IRS payment file 

orders accounts from the lowest to the highest 

routing number). If the debt exceeds the payment designated for the account that appears 

first on the payment file, FMS will reduce 

the payment designated for the account that 

appears next etc. 

You will receive a letter explaining any adjustments IRS made to your refund amount and 

direct deposits. You will receive a separate letter 

from FMS explaining any offset amount, the 

agency receiving the payment, the address and 

telephone number of the agency, and amount 

of your refund or direct deposit that was offset. 

If you dispute the debt on the letter you receive 

from FMS, you should contact the agency 

shown on the notice, not IRS, since IRS has no 

information about the validity of the debt. 

You can get information about your refund 

offsets available through Where’s My Refund?

on irs.gov.

Q. What will happen if I 

enter an incorrect routing 

or account number?

A. Be very careful entering your account and 

routing numbers. IRS will handle account or 

routing number errors on split refunds the same 

as for regular direct deposits and mistakes 

can result in several different scenarios. For 

example, if:

n You omit a digit in the account or routing 

number of an account and the number does not 

pass IRS’s validation check, IRS will send you a 

paper check for the entire refund;

n You incorrectly enter an account or routing 

number and your designated financial institution rejects and returns the deposit to IRS, IRS 

will issue a paper check for that portion of your 

refund; or

n You incorrectly enter an account or routing 

number that belongs to someone else and your 

designated financial institution accepts the 

deposit, you must work directly with the respective financial institution to recover your funds. 

IRS assumes no responsibility for taxpayer error. 

Please verify your account and routing numbers 

with your financial institution and double-check 

the accuracy of the numbers you enter on your 

return.

Q. How can I ensure my refund 

is deposited as I designate?

A. First, check with your financial institution 

to ensure they will accept a direct deposit for 

the type of account you are designating. Some 

financial institutions will accept direct deposits 

for some types of accounts, but not others.

Second, ensure you have the correct account 

and routing numbers for the account—ask your 

financial institution if you are unsure—and double-check the accuracy of the numbers you enter 

on your tax return. An incorrect or transposed 

number could result in your financial institution 

rejecting the deposit, or worse, depositing your 

refund into someone else’s account.

Third, double-check your return to ensure you 

have not made math or other errors that could 

increase or decrease the actual amount of your 

refund. IRS recommends electronic filing for the 

most error-free return.

Q. What if I entered the 

correct account and routing 

numbers, but IRS made an error 

in depositing my refund?

A. IRS will correct any agency errors. Contact 

an IRS customer service representative by 

calling (800) 829-1040.

Q. If I split my refund, can I 

still use Where’s My Refund?

to check my refund status?

A. Yes, you can check the status of a split 

refund using the Where’s My Refund? feature 

available on irs.gov or by calling IRS’s Refund 

Hotline at (800) 829-1954. Where’s My Refund?

will include a message confirming that your 

refund was split. It will not specify the amount 

deposited into each account, but it will tell you 

the estimated date of the deposits and, if IRS 

adjusted the amount of your refund for math 

errors, etc., will tell you the amount of the 

adjustment. 

Q. I forgot a deduction on my original return and am filing an amended 

return for an additional refund. Can I 

split this additional refund?

A. No, you cannot split a refund on an 

amended return. At this time, IRS does not offer 

a direct deposit option for refunds on amended 

returns. IRS will mail you a check for the amount 

of your additional refund to the address shown 

on your amended return.

Q. I’m requesting an extension 

of additional time to file my 2006 

return. Can I still split my refund?

Yes, you can split your refund on any original 

return, even if you have an extension of time to 

file your 2006 return.

Q. I have not filed my 2005 return 

yet. Can I also split my 2005 refund?

A. No, refund splitting is not available for tax 

years before 2006. You can opt to direct deposit 

your 2005 refund into either your checking or 

savings account, but you cannot split this refund 

among two or three accounts. 

The Office of Professional Responsibility 

(OPR) has put together a one-stop 

resource for tax professionals. You can 

review vital information all tax pros 

need to know at http://www.irs.gov/

taxpros/agents/article/0,,id=123812,00.

html.

Standards of Practice 

for Tax Professionals

continued from page 7

8
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

Most of these changes are discussed 

in more detail in Publication 17, 

Publication 553, Highlights of 2006 

Tax Changes, and elsewhere in this issue of Tax 

Hints. Be sure to review the final paragraph of 

this article for other changes that could result 

from legislative changes still underway as this 

revision was posted.

Standard mileage rates

The standard mileage rate for the cost of operating your car is 44.5 cents a mile for all business 

miles driven in 2006. The standard mileage rate 

allowed for use of your car for medical reasons is 

18 cents a mile for 2006. 

The standard mileage rate allowed for use of 

your car for determining moving expenses is 18 

cents a mile for 2006. See also Publication 521. 

Retirement savings plans

The following paragraphs highlight changes that 

affect individual retirement arrangements (IRAs) 

and pension plans. 

n Traditional IRA income limits. You may be 

able to take an IRA deduction if you were covered 

by a retirement plan, your modified adjusted gross 

income is less than $85,000, and you are married 

filing jointly or a qualifying widow or widower. 

n IRA contribution. If you are age 50 or older 

at the end of 2006, the amount you may be able 

to deduct as an IRA contribution is increased to 

$5,000. 

n Combat pay. For purposes of taking an 

IRA deduction, earned income includes any nontaxable combat pay received by a member of 

the U.S. Armed Forces. 

n Qualified charitable distributions. If you 

have reached age 701⁄2 , you can make a qualified 

charitable distribution directly from your IRA to 

a qualified organization. You do not include the 

distribution in your income. See Publication 590 

for more information. 

n Limit on elective deferrals. Generally, the 

maximum amount of elective deferrals under a 

salary reduction agreement that could be contributed to a qualified plan increased to $15,000 

($20,000 if you were age 50 or older). However, 

for SIMPLE plans, the amount is $10,000 ($12,500 

if you were age 50 or older). 

n Designated Roth accounts. A 401(k) or 

403(b) plan can include a qualified Roth contribution program. Under the program, designated 

Roth contributions are treated as elective deferrals, except that the contributions are included 

in income. A qualified distribution from a Roth 

account is not included in income. For more information on contributions, see Publication 525, and 

for distributions, see Publication 575. 

n Qualified reservist distributions. If you 

were a qualified reservist called to active duty for 

more than 179 days, the additional 10% tax on 

early distributions does not apply to distributions 

to you after September 11, 2001. 

n Public safety employees. If you were a public safety employee who separated from service 

after you reached age 50, the additional 10% tax 

on early distributions does not apply to distributions to you from qualified governmental plans 

after August 17, 2006. See Publication 575 for 

more information. 

Certain amounts increased 

Some tax items that are indexed for inflation 

increased for 2006. 

n Earned income tax credit (EITC). The 

maximum amount of income you can earn and 

still get EITC increased. The amount depends on 

your filing status and number of children. The 

maximum amount of investment income you 

can have and still be eligible for the credit has 

increased to $2,800. 

What’s New for 2006—

Preparers A Summary of Important Changes

Can Use PTINs 

to Help Prevent 

Identity Theft

Tax professionals can use a

 Preparer Tax Identification

 Number (PTIN) instead of 

their Social Security Number 

(SSN) on returns they prepare 

for clients so they do not have 

to disclose their SSNs on those 

returns. 

Only paid tax return preparers may apply for a PTIN. Using 

a PTIN meets the requirement 

under IRC Section 6109(a) (4) for 

preparers to furnish an identifying number on returns they have 

prepared. The PTIN cannot be 

used in place of the Employer 

Identification Number (EIN) of 

the tax preparation firm. 

Preparers can get PTINs online 

at http://www.irs.gov/taxpros/

article/0,,id=109646,00.html,

the IRS e-services page, or visit 

www.irs.gov, click on “Tax 

Professionals” then on the 

link for e-services. After registering, preparers should follow the online instructions to 

have a PTIN assigned, or go to 

http://www.irs.gov/pub/irs-pdf/

fw7p.pdf to get a Form W-7P, 

Application for Preparer Tax 

Identification Number. More 

information about Identify Theft 

can be found at irs.gov, keyword 

“Identity Theft.” continued on page 10

9
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

n Standard deduction. The standard 

deduction for taxpayers who do not itemize 

deductions on Schedule A (Form 1040) has 

increased. The amount depends on your filing 

status. 

n Exemption amount. You are allowed a 

$3,300 deduction for each exemption to which 

you are entitled. However, your exemption 

amount could be phased out if you have high 

income. 

n Limit on itemized deductions. Some 

of your itemized deductions may be limited if 

your adjusted gross income (AGI) is more than 

$150,500 ($75,250 if you are married, filing 

separately). 

n Tax benefits for adoption. The adoption credit and the maximum exclusion from 

income of benefits under an employer’s 

adoption assistance program are increased 

to $10,960. 

n Hope or lifetime learning credit 

income limits increased. The amount of 

income you can have and still receive a Hope 

or lifetime learning credit has increased. The 

Hope credit is increased. 

n Social Security and Medicare taxes. 

The maximum wages subject to Social Security 

tax (6.2%) increased to $94,200. All wages are 

subject to Medicare tax (1.45%). 

Clothing and household items 

If you donate clothing and household items to 

a qualified organization, the items must be in 

good used condition or better for you to claim 

a charitable contribution deduction. 

Child under age 18 

You must use Form 8615 to figure the tax of 

a child under age 18 (increased from age 14) 

with investment income of more than $1,700. 

The election to report a child’s investment 

income on a parent’s return and the special 

rule for when a child must file Form 6251 also 

now apply to children under age 18. 

Alternative minimum tax (AMT)

The AMT exemption amount is increased to 

$42,500 ($62,550 if married filing jointly or 

qualifying widow or widower; $31,275 if 

married, filing separately). 

Energy credits 

You may be able to claim a new tax credit 

for the purchase of qualified energy efficiency 

improvements to your existing home. You may 

be able to claim a tax credit for the purchase 

of residential solar water heating, photovoltaic 

equipment, or fuel cell property. 

Alternative motor vehicles 

You may be able to take a credit if you place 

an alternative motor vehicle in service during 

the year. You no longer can take a deduction 

for clean-fuel vehicles. 

Phase-outs reduced 

n Personal exemptions. The phase-out of 

the limit on personal exemptions is reduced 

by 1/3. 

n Itemized deductions. The phase-out of 

the limit on itemized deductions is reduced 

by 1/3. 

Credit for clean renewable energy 

bonds or Gulf tax credit bonds 

You may be able to claim a credit if you held 

any clean renewable energy bond or Gulf tax 

credit bond during the year. 

Credit for federal 

telephone excise tax paid 

If you paid the federal excise tax on your long 

distance or bundled telephone service, you 

may be able to claim a credit. 

Split refunds

If you choose direct deposit of your refund, 

you may be able to split the refund into two 

or three accounts. (See article on page 3.) 

Electronic 

Signatures

T

he IRS will continue to offer 

two electronic signature 

(PIN) methods for individual 

taxpayers to sign their e-filed 

tax returns— the Self-Select PIN 

method and the Practitioner PIN 

method. We strongly recommend 

using the PIN because it eliminates 

the requirement to submit Form 

8453, U.S. Individual Income Tax 

Declaration for an IRS e-file Return. 

As in the past, taxpayers are still 

required to use two pieces of information to verify their identity when 

using the Self-Select PIN method. 

However, beginning in Tax Year 

2006, taxpayers will have the ability 

to provide their prior year PIN as 

one of the authenticators. 

When using the Practitioner PIN 

method, completion of Form 8879 

is still a requirement.

We encourage a thorough and 

attentive review of the ACK file to 

ensure the PIN was received successfully by IRS. Submission of a 

signature document, Form 8453, 

is only required when the return 

was not signed using an electronic 

signature method. The Electronic 

Return Originator must mail Form 

8453 to the IRS within 3 business 

days after receiving acknowledgement that the IRS has accepted the 

electronically filed return.

More information on electronic 

signatures can be found in various 

Hot Links listed in the back of this 

publication. 

10

continued from page 9

What’s New for 2006
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

 I

RS encourages taxpayers to understand 

the rules surrounding depreciation before 

attempting to deduct business-related depreciation expenses. Overstated adjustments, 

deductions, exemptions and credits comprise 

up to $30 billion per year in unpaid taxes, 

according to IRS estimates. To educate preparers and taxpayers on their filing obligations, 

this fact sheet explains the general rules for 

depreciating assets. 

Depreciation Basics

In general, if property is acquired for use 

in a business or another income-producing 

activity and is expected to last more than 

one year, taxpayers cannot deduct the entire 

cost as a business expense in the year it was 

acquired. They must depreciate the cost over 

the property’s useful life (as defined by the 

Internal Revenue Code) and deduct part of the 

cost each year on Form 4562, Depreciation 

and Amortization. (Refer to IRC Section 179 

Deduction below for an exception.)

Correctly computing depreciation deductions 

can be a challenging process which cannot be 

covered thoroughly here. You and your clients 

with depreciable business or income-producing 

assets should study the resources listed at the 

end of this article for further information.

In order to be depreciated, 

property must:

n Be property the taxpayer owns

n Be used in the taxpayer’s business or 

income-producing (investment) activity

n Have a determinable useful life

n Be expected to last more than one year

Certain property can not 

be depreciated, including:

n Land

n Property placed in service and disposed of 

in the same year

n Certain types of intangible assets, such as 

franchises, agreements not to compete, and 

goodwill

Property used only for personal activities 

cannot be depreciated. If an asset such as 

a home or motor vehicle has both personal 

and business use, only the business portion 

of its cost may be depreciated. Depreciation 

rules regarding partial business or investment 

use are discussed in Publication 946, How to 

Depreciate Property.

Computing Depreciation

In order to compute depreciation correctly a 

taxpayer must know the following:

n When the asset was placed in service for use 

n a business or income-producing activity

n The basis of the depreciable asset, and

n The depreciation methods available

Generally property is considered placed in 

service when it is ready and available for a 

specific use, regardless of whether or not it 

is actually used at the time. For example, a 

house purchased for use as rental property is 

placed in service when it is ready and available 

to rent, even if it is not actually rented at that 

time.

The basis is the amount that will be 

recovered (deducted) once the asset is fully 

depreciated. It may be the cost of the asset or 

another amount, depending on how and when 

it was acquired. Information on determining 

basis is available in Publication 946, How to 

Depreciate Property, and Publication 551, 

Basis of Assets.

Most assets are depreciated according to the 

Modified Accelerated Cost Recovery System 

(MACRS). However, there are situations when 

MACRS cannot be used. Preparers and taxpayers should fully understand the information in 

Publication 946 to be certain they are using the 

correct method.

IRC Section 179 Deduction

Some taxpayers can elect to recover all or part 

of the cost of certain qualifying property, up 

to a certain dollar limit each year, by claiming a Section 179 deduction. By taking the 

Section 179 deduction a taxpayer chooses to 

deduct depreciation up front rather than over 

the life of the asset. It is especially important 

to remember that the Section 179 deduction 

may be taken only on assets acquired for use 

in trade or business, not on property used for 

other income-producing activities, such as 

rental activities. See Publication 946, How to 

Depreciate Property, for detailed rules applicable to the Section 179 deduction. 

Disposing of Depreciable Assets

Depreciation reduces the owner’s basis in the 

property. When depreciable property is sold or 

disposed of, depreciation that was allowed or 

allowable on that property must be taken into 

consideration. In other words, even if no depreciation deduction was taken, the net profit or 

loss on the disposition of the property must 

be computed as if depreciation was actually 

taken. Taxpayers must also follow recapture 

rules to determine the amount of gain to be 

treated as ordinary income rather than capital 

gain. More information on the disposition of 

assets can be found in Publication 544, Sales 

and Other Dispositions of Assets.

Also see:

n IRS Publication 946, How to Depreciate 

Property

n IRS Publication 551, Basis of Assets

n IRS Publication 544, Sales and Other

Dispositions of Assets

Important Reminders on Depreciation

From IRS Fact Sheet FS-2006-27, November 2006

11
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

A

n Acceptance Agent (AA) is a person 

 (an individual or an entity) who, pursu-

 ant to a written agreement with IRS, is 

authorized to assist alien individuals and other 

foreign persons who are ineligible or unable 

to receive a Social Security Number to get an 

ITIN. Revenue Procedure 2006-10 describes 

the application process for acceptance into the 

AA Program and the requisite agreement that 

must be executed with IRS. 

Any eligible person can apply to become 

an Acceptance Agent. An eligible person may 

be a U.S. or foreign person, at least twentyone years of age (as of the date of the AA 

Application) and must be involved in the 

tax profession. Examples of eligible persons 

include tax practitioners, CPAs, colleges and 

universities, financial institutions, partnerships, 

corporations or any other person or categories 

of persons who are involved in the tax profession and who may be authorized under IRS 

regulations or procedures.

There is no fee associated with becoming 

an IRS AA. The application process begins 

with completion of Form 13551 (Application 

to Participate in the IRS Acceptance Agent 

Program). Applicants will also be required to 

submit to a suitability background check before 

being authorized to act as an Acceptance 

Agent. A suitability background check includes 

an IRS review of the applicant’s tax filing history to determine if the applicant is in full compliance with filing and payment responsibilities 

under the Internal Revenue Code (IRC) and its 

regulations.

The applicant or applicant’s representative 

who has the authority to sign the Acceptance 

Agent Agreement will also be subject to an 

FBI background check, including fingerprinting. However, there are exceptions to this rule. 

Any individual who is authorized to practice 

before the IRS under Circular 230 and provides 

evidence of current professional status will 

not be subject to the requirements of the FBI 

background check. The IRS, however, may 

consider the tax filing history of the entity and 

the individual in evaluating their application. 

The category of excepted applicants includes: 

a financial institution within the meaning of 

IRC section 265(b)(5) or Treasury Regulations 

1.165-12(c)(1)(iv); a college or university that 

qualifies as an educational organization under 

Treasury Regulations 1.501(c)(3)-1(d)(3)(i); 

casinos; applicants who have passed the suitability check for Electronic Return Originator 

(ERO) status and who remain in good standing 

with the IRS, along with Federal Agencies as 

defined in IRC section 6402(g). The fingerprint 

card used for the Acceptance Agent Program 

is unique, and should be obtained by calling 

the IRS Andover Campus at (866) 255-0654. 

Individuals can not take their own fingerprints. 

Additional information can be found in the 

Instructions for Form 13551.

Once the application process has been completed, if you have been accepted into the AA 

Program you will enter into an agreement with 

the IRS outlining the terms and conditions to 

ensure proper administration of the process by 

which the IRS issues ITINs. An agreement stays 

in effect for four years, after which time it must 

be renewed. The current processing time is 120 

days from the date the application is received 

by IRS.

Completed applications with required attachments, should be sent to the Internal Revenue 

Service, Mail Stop 983, Andover, MA 05501.

ITIN (Individual Taxpayer Identification Number)

Authorized Acceptance Agents

New Address 

For Filing Form W-7

Effective January 1, 2007, all Forms 

W-7 (Application for IRS Individual 

Taxpayer Identification Number) will be 

processed in the IRS Service Center 

in Austin, Texas. Applications will no 

longer be processed in Philadelphia 

due to a reorganization of Service 

Center functions. The new address 

for mailing ITIN applications is:

Internal Revenue Service

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

P

ower of Attorney or Tax Information 

Authorization requests should be

 directed wto Memphis or Ogden. 

If your principal business, office or agency or 

legal residence in the case of an individual, is 

located in: 

Write, call or fax:

Memphis Accounts Management Center, 

CAF Unit

5333 Getwell Road, Stop 8423

Memphis, TN 38118

Fax: (901) 546-4115 Phone: (901) 546-4176

If your principal business, office or agency or 

legal residence in the case of an individual, 

is located in: 

Write, call or fax:

Ogden Accounts Management Center, 

CAF Unit

1973 North Rulon White Blvd., Stop 6737

Ogden, UT 84404

Fax: (801) 620-4249 Phone: (801) 620-4254

International requests will continue to be 

processed at:

Philadelphia Accounts Management Center, 

CAF Unit

11601 Roosevelt Blvd. DPSW 312

Philadelphia, PA 19255

Fax: (215) 516-1017 Phone: (215) 516-5996

We are processing faxed requests in 48 hours 

and paper requests in five business days.

Where to Send 

Authorization Requests

North Carolina 

Ohio 

Pennsylvania 

Rhode Island 

South Carolina 

Tennessee 

Vermont 

Virginia 

West Virginia

Alabama 

Arkansas 

Connecticut 

Delaware 

District of 

 Columbia 

Florida 

Georgia 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Mississippi 

New Hampshire 

New Jersey 

New York

Oregon 

South Dakota 

Texas 

Utah 

Washington 

Wisconsin 

Wyoming

Alaska

Arizona 

California 

Colorado 

Hawaii 

Idaho 

Iowa 

Kansas 

Minnesota 

Missouri 

Montana 

Nebraska 

Nevada 

New Mexico 

North Dakota 

Oklahoma 

12
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

13

 Form 8892 (Payment of Gift/

 GST Tax and/or Application for

 Extension of Time to File Form 

709) should always be used as a payment voucher for gift taxes owed. File 

this form at the Cincinnati Campus 

(Internal Revenue Service Center, 

Cincinnati, OH 45999.) Form 8892 

should also be used when requesting 

an extension to file a Gift Tax return. 

If the donor is requesting extensions 

to file BOTH Form 1040 and Form 

709 (gift tax), then Form 4868 should 

continue to be used. 

The annual exclusion for Gift Taxes 

(Form 709) has been increased to 

$12,000 per donee, per year for a 

present interest gift in 2006. (This 

replaces the former annual exclusion 

of $11,000.) 

The Estate Tax exemption equivalent 

will increase to $2,000,000 for decedents dying in 2006 and the maximum tax rate for 2006 drops to 46%. 

A State Death Tax Deduction 

replaces the State Death Tax Credit 

for decedents dying after 12/31/04 

on the estate tax form (Form 706). 

Line 13 on the old version of Form 

706 has been deleted. A new line 3b 

allows a deduction for state death 

taxes paid. 

For more information on estate 

and gift tax, including Forms and 

Publications, go to www.irs.gov and 

click on Businesses (on the left side 

of the page under information) and 

then scroll down to Estate and Gift 

Taxes.

Proper Payment 

Voucher for 

Gift taxes

T

his year, go online for your Earned Income

 Tax Credit (EITC) needs. Whether you 

 need to qualify clients, market your EITC 

services or ensure your tax practice complies 

with the EITC due diligence requirements, 

you’ll find toolkits, interactive web features 

and resources online at your fingertips 24/7 

at www.irs.gov/eitc. 

Qualifying clients online

Book mark the EITC Assistant as your definitive resource to determine client eligibility. The 

EITC Assistant will guide you through simple 

steps and questions to determine whether 

your client qualifies for EITC, even tackling 

the tough issues of filing status and qualifying 

children in a straightforward manner. The EITC 

Assistant will then compute the amount of 

EITC after the eligibility issues are addressed.

With the EITC Assistant, you can walk your 

clients through the EITC qualifications onscreen, in either English or Spanish, and show 

them whether or not they qualify. Using the 

EITC also can help you avoid two of the most 

common practitioner errors in computing the 

credit: claiming a child who is not a qualifying child, and filing as “single” or “head of 

household” when the taxpayer is actually married. The two other most prevalent errors are 

reporting incorrect income amounts and entering incorrect Social Security numbers for either 

taxpayers or their qualifying children.

Specialized tools just for you

Bookmark the EITC Electronic Toolkit for 

Tax Professionals as your one-stop information resource, including special EITC rules for 

military, clergy, and people with disabilities. 

Embedded links make navigating EITC information easy, including links to forms, checklists, and the latest news about EITC initiatives. 

Criteria for 2006 claims, compliance initiatives, 

and qualifying child tie-breaker rules are just a 

few of the subject categories.

Under the Tools section, you’ll find free 

educational products to help market your EITC 

service, including letter templates, newsletter 

copy and flyers. The Resources section includes 

links to the EITC Assistant, IRS publications, 

irs.gov and information about IRS’s 

Taxpayer Advocate Service.

Meeting due diligence 

requirements

As a tax professional, you must exercise the 

same due diligence in preparing returns claiming EITC as with any other deductions and 

credits. However, unlike other tax credits, the 

Income Tax Regulations impose four due diligence requirements to ensure EITC accuracy. 

These include: 

1. Completing Form 8867, Paid Preparer’s 

Earned Income Credit Checklist, or an equivalent form, based on information either provided by the taxpayer or reasonably obtained 

by you. This Checklist ensures you consider all 

aspects which may qualify or disqualify a client 

for EITC;

2. Completing the EIC worksheet in the 

Form 1040/1040a/1040EZ instructions, or an 

equivalent form. Your records must reflect the 

information and computation method used in 

your EITC calculation; 

3. Retaining these records for 3 years after 

June 30th following the date the return was 

presented to the taxpayer for signature; and

4. Having no knowledge as well as no 

reason to know that any information used in 

determining the taxpayer’s eligibility or computing the EITC is incorrect. You cannot ignore 

the implication of information furnished to, 

or known by, you and must make reasonable 

inquiries whether the information appears to 

be incorrect, inconsistent or incomplete. 

Tax professionals who fail to follow due 

diligence requirements may be assessed a 

$100 penalty for each failure. For additional 

information on these regulations, see Treas. 

Reg. §1.6695-2.

Alert your small business clients who claim 

EITC that they also must follow the due 

diligence procedures. Internal Revenue Code 

(IRC) Section 6001 requires, for example, 

Schedule C filers (small business owners and 

self-employed individuals) to keep books and 

records to substantiate items on their tax 

returns. They must provide this information to 

the IRS if requested.

EITC Resources Online 24/7
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

The IRS offers a suite of multilingual products 

and services in Spanish and a limited number 

of products in Chinese (Mandarin), Korean, 

French, Vietnamese and Russian. These multilingual products come in various formats and 

are designed to educate non-English-speaking 

taxpayers about their tax responsibilities.

irs.gov

IRS’s Spanish web page (https://www.irs.gov/

Español) offers tax information for individuals 

and small businesses. For individual taxpayers, 

the web page contains many forms, publications and brochures that provide detailed tax 

information. Interactive applications are also 

available to assist you and your client determine eligibility for the Earned Income 

Tax Credit and calculate withholding. 

The EITC Assistant (Crédito por Ingreso 

del Trabajo (EITC) - ¿Debo Solicitarlo?),

helps you and your client accurately determine 

eligibility for EITC by answering some basic 

questions.

The Withholding Calculator (Calculadora 

Para La Retención de Impuestos) is available to help taxpayers ensure that they do not 

have too much or too little income tax withheld from their pay. It is not a replacement for 

Form W-4, but most people will find it more 

accurate and easier to use than the worksheets 

that accompany Form W-4. The results of this 

program can be used to help your client complete a new Form W-4. 

New this filing season: links to Where’s 

My Refund? (Donde esta Mi Reembolso?)

application. This interactive application lets you 

learn when the IRS processed your client’s tax 

return and when their refund will be sent.

For business customers, the web page provides 

access to the most recent forms, publications 

and other tax information. This information can 

be found on https://www.irs.gov/Español by 

clicking on the Small Business link (Recursos 

Para Pequenas Impresas).

Spanish tax publications are available on 

the web at https://www.irs.gov/Español. You 

can also get Spanish forms and publications 

by calling toll-free (800) TAX-FORM, or 

(800) 829-3676.

Toll-free Services

Recorded tax information. The TeleTax 

line at (800) 829-4477 has recorded messages 

in Spanish around the clock, covering more 

than 100 tax topics. 

Check refund status. The Refund Hotline 

provides information in Spanish at (800) 829-

1954. You will need to know your client’s filing 

status and the exact whole-dollar amount of 

the expected refund. 

For further assistance you can also talk 

with a Spanish-speaking IRS representative 

by calling the toll-free customer service line at 

(800) 829-1040.

More new Spanish-language 

tax products for this filing 

season

Publication 4445, Spanish Practitioner Toolkit 

is now available online. The toolkit contains 

brochures that guide you through the tax filing 

process. The toolkit also:

n Identifies bilingual resources available to you; 

n Explains different types of income and how 

to report and pay tax for each type;

n Explains employment statuses and how to 

report and pay taxes on income earned under 

these categories; 

n Explains the benefits of participating in the 

tax process such as establishing residency, 

qualifying for tax credits and complying with 

tax laws; and 

n Illustrates important information that 

Spanish-language clients need to know when 

selecting a tax preparer.

Publication 4636 is available online in 

Spanish, Chinese, Vietnamese, Korean, and 

Russian. The Spanish version is titled Opening 

the Door to the Spanish-speaking Customer, 

Abriéndole la Puerta al Cliente de Habla 

Hispana and includes these tax information 

brochures:

n Publication 4346A, Basics of Tax Processing, 

Lo Básico en el Procesamiento de 

Declaraciones

n Publication 4346B, Why Should I Pay Taxes, 

Por que debo pagar Impuestos

n Publication 4346C, IRS Toll Free Telephone 

Service, Servicio Telefónico Gratuito del IRS 

n Publication 4346D, EITC 2005—Don’t Guess. 

Know., EITC 2005 No Advine. Infórmese

n Publication 4346E, Understanding Your IRS 

Notice, Entendiendo su Aviso del IRS

n Publication 4346F, Getting Help With Your 

Unresolved Tax Problems, Recibiendo Ayuda 

Con Problemas de Impuesto No Resueltos

The Spanish language DVD Novela de 

los Impuestos Federales is a realistic portrayal 

of an immigrant’s journey to understand their 

tax responsibility. For more information check 

the web at https://www.irs.gov/Español.

Audio CDs in Chinese, Vietnamese, Korean, 

Russian and Spanish explain basic taxpayer 

rights and responsibilities. For more information check the web at https://www.irs.gov/

Español.

Our most popular publications 

are now available in Spanish

n Publication 1(SP), Your Rights as a 

Taxpayer, Derechos del Contribuyente, and

n Publication 579(SP), Cómo Preparar su 

Declaración de Impuesto Federal, explains 

who must file a federal tax return and other 

important topics, such as which forms to file, 

who are dependents, what income is taxable 

and nontaxable, and what some of the more 

common credits are.

Assisting Non-English-speaking Taxpayers

14
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

Key IRS 

Personnel 

Changes in 2006

 During the last year IRS has

 announced several top echelon

 leadership changes. If you missed 

any of these key personnel announcements, you can review the news releases 

containing the announcements on 

the News Release Archive page of the 

Newsroom link from www.irs.gov or use 

these links:

IRS Announces Kathy Petronchak 

Appointed Chief of Staff

IR-2006-65, April 17, 2006 — Petronchak 

will assist the Commissioner in overseeing 

IRS operations and planning the direction 

of IRS programs.

Wagner Named Deputy Commissioner 

of the IRS Tax Exempt and 

Government Entities Division 

IR 2006-100, June 21, 200—The Internal 

Revenue Service today announced the 

appointment of Christopher Wagner as 

Deputy Commissioner of the Tax Exempt 

and Government Entities (TE/GE) Division.

IRS Selects Ng as LMSB’s 

Deputy Commissioner, International

IR-2006-99, June 21, 2006—The Internal 

Revenue Service selected Frank Y. Ng 

to fill the new position of Deputy 

Commissioner, Large and Mid-Size 

Business (International).

New Top Leadership Team Selected

IR-2006-174, Nov. 9, 2006—Internal 

Revenue Service Commissioner Mark W. 

Everson today announced the appointment of Kevin Brown and Linda Stiff as 

the agency’s two new deputy commissioners, effective December 1.

Form 2848 Power of Attorney

The most common reasons for a Form 2848 

Power of Attorney rejection are:

n Form 2848 is missing Representative or 

Taxpayer signatures or both, or signature 

dates. The requirement for the signature 

and date are found on Page 4 of Form 2848 

Instructions. 

n Non-specific identification of tax periods (tax 

matters) on line 3 is a major reason for rejection of the Form 2848. Avoid generalizations 

such as “all years” or “all future periods.” 

Page 2 of the Form 2848 Instructions outlines 

several acceptable entries for the tax matters 

field, such as “2000 through 2002” or “2000 

- 2002” or “2000, 2001, 2002.” 

n If Box 4 is checked, Specific Use Not 

Recorded on CAF. We will attempt contact 

with the taxpayer to verify specific use intent. 

If we are unable to make phone contact, the 

form will be rejected for clarification. 

n Line 6. Receipt of Refund Checks. The 

name of the person authorized to receive 

refund checks is listed and the initials of the 

taxpayer(s) are not present. 

n If Box 8 is checked, Retention/Revocation of 

Prior Power(s) of Attorney Forms are submitted with Box 8 checked, however, no copy of 

the power of attorney is attached to identify 

the representative that is being retained. The 

revocation has the same years, periods and 

tax matters as authorized on CAF. 

n No designation shown. 

n No jurisdiction shown, applicable for 

designations A, B, C or G. 

n Title of employee of company being 

authorized not indicated. 

Form 8821 Tax Information Authorization

The most common reasons for a Form 8821 

Tax Information Authorization rejection are:

n Missing taxpayer signature, date or both. 

The requirement for the signature and date 

are found on Page 4 of the instructions.

n Non-specific identification of tax periods 

(tax matters), as in second point above.

n Incorrect EIN/SSN for taxpayer or business 

(and IRS is unable to identify and verify it 

through our records). 

For more information, visit www.irs.gov/caf.

Most Common Reasons for Power of Attorney (Poa) 

and Tax Information Authorization (Tia) Rejection

Learn All About IRS e-file in Publication 3452

Presented in an easy to follow Question and Answer format and geared precisely for 

tax professionals, Publication 3452 is a comprehensive guide to e-file featuring a front 

page summary of key dates coming up for the 2006 tax year. The 6-page guide can 

be explored online or downloaded for later reference if you prefer. Check it out at: 

http://www.irs.gov/pub/irs-utl/p3452taxpronl.pdf.

If your firm or your client’s firm is creating barcoded Schedules K-1, certification for both the printed 

K-1, as well as the barcode itself is mandatory. The IRS has created procedures for the testing process. Review these procedures at http://www.irs.gov/efile/article/0,,id=129860,00.html

Following these procedures as closely as possible will help speed the approval and testing process.

Schedule K-1,

Two-Dimensional 

Barcodes

IRS e-file Marketing Tool Kit The IRS e-file Marketing Tool Kit 

contains IRS e-file promotional products and informational publications designed to 

help Authorized IRS e-file Providers get the word out to current and prospective clients 

about the benefits of e-file and e-pay. IRS e-file is a method of filing tax returns that 

is proven to increase the satisfaction of tax professionals and taxpayers. Use the elements in the IRS e-file Marketing Took Kit that work best for you. http://www.irs.gov/

taxpros/providers/article/0,,id=97538,00.html

15
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

B

ased on requests from practitioners and 

 other stakeholders, IRS has adopted the

 following guidance on the acceptance 

of faxes by taxpayers and the practitioner 

community.

General 

These general guidelines apply to all divisions 

and cover operations related to income tax, 

employment tax, excise tax, estate tax, gift 

tax, generation-skipping tax and tax exempt 

and employee plans determinations.

n Filing of original tax returns via fax will 

only be allowed as part of a return perfection 

process (e.g., securing a missing schedule or 

missing signature) initiated by IRS or in postfiling or non-filing activities described in the 

next bullet. Tax returns can be received via 

fax as part of return perfection even if a taxpayer signature is required, provided that the 

IRS contact with the taxpayer has been made 

and documented.

n Submission of documentation, forms, letters 

and returns related to post-filing or non-filing 

inquiries and interactions can be allowed via 

fax based on taxpayer or IRS request unless 

there is a specific prohibition. This allowance 

applies to inquiries and interactions conducted 

by Field Assistance, Accounts Management, 

Compliance Services, Field Examination, Field 

Collection, Determinations Units, Appeals and 

the Taxpayer Advocate Service, or related to 

post-submission inquiries and interactions 

conducted by Employee Plans or Exempt 

Organizations in connection with an application for a determination or a request for a ruling. Documentation, forms, letters and returns 

can be received via fax in these circumstances 

even if a taxpayer signature is required, provided that IRS contact with the taxpayer has 

been made and documented.

n The IRS will not acknowledge faxes received 

from taxpayers in the course of tax administration activities by a return fax. Exceptions 

can be made in unusual circumstances as 

determined by IRS management.

Specific guidance on 

use of faxes in tax 

administration processes 

(Lists not all-inclusive)

1. The following specific documents, forms or 

letters will continue to be accepted by fax in 

routine operations:

n EIN Requests (Form SS-4)

n Power-of-Attorney (Form 2848)

n Taxpayer Authorization (Form 8821)

n 1120S Election (Form 2553)

n Return/Transcript Requests (Form 4506)

n Request for Public Inspection or Copy of 

Exempt or Political Organization IRS Form 

(Form 4506-A)

n Foreign Certification Requests

n Appeals Conference Requests

n Responses or documentation needed to 

resolve filing or post-filing questions or 

correspondence.

2. The following specific documents, forms or 

letters can be accepted by fax if contact has 

been made with the taxpayer by phone or in 

person and the taxpayer history file is documented with the date of contact and notation 

is made that the taxpayer wishes to send the 

document, form or letter by fax:

n Requests for Innocent Spouse Relief 

(Form 8857)

n Taxpayer Statement About a Refund 

(Form 3911)

n Injured Spouse Claim (Form 8379)

n Installment Agreements (Form 433-D)

n Collection Information Statement – 

Wage Earner (Form 433-A)

n Collection Information Statement – 

Business (Form 433-B)

n Early Referral Requests

n Fast Track Mediation Requests

n Request for Collection Due Process Hearing 

(Form 12153)

n Letter to designate a payment

n Letter to request non-filing of lien

n Letter to request lien release

n Letter to request lien withdrawal

n Letter to request non-assertion of penalty

n Letter to provide reasonable cause statement

n Supporting Statement to Correct Information 

(Form 941C)

n Election by a Small Business Corporation 

(Form 2553).

3. Consents to assess additional tax (Forms 

4549, 870 and others) of $25,000 or less can 

be accepted by fax if taxpayer contact has 

been made and the case history documents 

the date of contact and the desire of the 

taxpayer to submit the consent by fax. 

Consents to assess tax in excess of $25,000 

should be secured with original signatures 

that are delivered in person or by mail.

4. Taxpayer closing agreements involving 

tax amounts of $25,000 or less can be accepted by fax if taxpayer contact has been made 

and the case history documents the date of 

contact and the desire of the taxpayer to submit the consent by fax. Closing agreements 

for tax amounts in excess of $25,000 should 

be secured with original signatures that are 

delivered in person or by mail.

5. Employee Plan and Exempt Organization 

determination letter applications will not be 

accepted via fax.

6. Determination Letter Requests related to 

income tax, gift tax, estate tax, generationskipping transfer tax, employment tax and 

excise tax matters will not be accepted 

via fax.

7. Consents to extend the statute of limitations for assessing tax (Form 872, SS-10 and 

other consent forms) will not be accepted 

via fax in normal operations.

Guidelines for Faxed Submissions

16
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

This checklist is primarily aimed at individual taxpayers preparing their own 

returns manually. Even so, it contains valuable tips and advice for any preparer. 

If you take a few minutes to double-check the return, you can help clients 

ensure that it will sail through the IRS processing center error-free:

q Use the peel-off label. You may line through and make necessary corrections 

right on the label. Be sure to fill in Social Security Numbers in the box provided 

on the return. It is not on the label.

q If you do not have a peel-off label, fill in all requested information clearly, 

including the Social Security Numbers.

q Check only one filing status on the tax return and check the appropriate 

exemption boxes. Enter the correct Social Security Number for each of those 

exemptions. Write legibly. Remember that incorrect, missing or illegible SSNs 

will cause a processing delay of your refund if you are due one.

q Use the worksheet in the instructions for Forms 1040 or 1040A or in IRS 

Publication 972, Child Tax Credit. Miscalculated child tax credits cause the 

majority of common errors.

q Use the correct Tax Table column for the filing status. Use a ruler; 

double check.

q Check and double check all figures on the return. Math errors are common.

q Check the accuracy of financial institution routing and account numbers 

entered on the return for a direct deposit of a refund. Incorrect numbers can 

cause delay or misdirection of the refund. 

q Sign and date the return. If filing a joint return, both spouses must sign 

and date the return.

q Attach all Forms W-2, 1099R and others that reflect taxes withheld to the 

front of the return. If you are filing a Form 9465, Installment Agreement 

Request, attach that to the front also. Attach all other necessary forms and 

schedules in the order as listed in the attachment sequence order in the upper 

right corner of each form or schedule.

q If you owe tax, enclose a check or money order made payable to the United 

States Treasury, along with the Form 1040-V, Payment Voucher, with the return. 

You may choose to pay by credit card by contacting one of the credit card service providers. If you file electronically, you may authorize the U.S. Treasury to 

withdraw the payment directly from your bank account.

q For a complete checklist and listing of some of the most common errors, see 

Tax Topic 303 at irs.gov or call the toll-free TeleTax number, (800) 829-4477.

Use These Simple Solutions 

for an Error-free Tax Return

3

3

3

3

3

3

3

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New Links Added this Year

The Information Reporting Program 

Advisory Committee (IRPAC) requested during their 2006 meetings that the Service 

consider development of a practitioner 

reference guide to serve as a substitute for 

Package X, which was quite costly to print 

and mail, and was discontinued. 

At the same time, IRPAC was reviewing 

the findings of a survey taken among 2005 

Nationwide Tax Forums attendees. The findings suggested that those surveyed would 

value a practitioner reference guide too. 

Accordingly, NPL is adding a list of hotlinks to topic areas on the Tax Pros Tool Kit 

website that incorporates what was most 

sought after in the practitioner reference 

guide: http://www.irs.gov/taxpros/article/

0,,id=118004,00.html.

If you do not find reference materials you are seeking, please notify the Tax Hints editor so they can 

be included next year. Please note, Tax Hints can 

only link you to documents and information that are 

already posted on the www.irs.gov website.

The Information Reporting 

Program Advisory 

Committee (IRPAC)

 T

he IRPAC was created in 1991 to advise 

the IRS on information reporting issues of 

mutual concern to the private sector and 

the federal government. The members (http://

www.irs.gov/taxpros/article/0,,id=120326,00.

html) have a broad spectrum of experience 

with information reporting, representing the 

payroll community, banks, mutual funds, the 

insurance industry, state tax administration, 

colleges and universities and their peers in the 

tax professional community. Each year IRPAC 

prepares a report (http://www.irs.gov/taxpros/

article/0,,id=120326,00.html) on issues they 

have studied, making recommendations to the 

IRS Commissioner. 

The members are selected for a three-year 

term and meet in Washington, DC five times a 

year. In the Spring the IRS solicits IRPAC nominations for new members through a notice 

in the Federal Register and information on 

the Tax Professionals’ page of irs.gov. More 

information and copies of the annual reports 

can be found at http://www.irs.gov/taxpros/

article/0,,id=107753,00.html.

17
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

18

D

o employment tax requirements con-

 fuse you? You’re not alone. The rules

 are not one-size-fits-all and can be difficult to navigate. This summary will help clear 

up some of the mystery.

Employers must file Form 941, Employer’s 

Quarterly Federal Tax Return, and make 

regular federal tax deposits (FTDs) of employment taxes, which include employees’ withheld federal income tax, Social Security tax, 

Medicare tax and the employer’s share of 

Social Security and Medicare taxes.

The deposit schedule may be either monthly 

or semi-weekly, depending on the amount 

owed during a four-quarter look-back period. 

The look-back period for calendar year 2006 

covers the four calendar quarters from July 1, 

2004 through June 30, 2005.

Note: Notification of FTD Deposit 

Requirements are issued yearly to filers of 

Form 941 and 941SS to advise employers 

of which deposit method to use for the 

upcoming calendar year. It is your responsibility to verify the look-back period information with your records to ensure that the 

notice you receive is correct.

New employers who have never filed Form 

941 before follow the monthly schedule 

depositor’s rules for the first calendar year of 

their business. If, however, a new employer 

accumulates a tax liability (reduced by any 

advance Earned Income Credit (EIC) payments) of $100,000 or more on any day during a deposit period, they must deposit the 

tax by the next banking day. FTD payments 

are based on when wages are paid, not 

earned, and must be deposited as follows:

Monthly Schedule Depositors:

n Deposit each month’s taxes by the 15th day 

of the following month (e.g., taxes from paydays during August are deposited by Sept. 15).

Semi-weekly Schedule Depositors:

n For wages paid Saturday, Sunday, Monday 

or Tuesday, deposit by Friday of that week.

n For wages paid Wednesday, Thursday or 

Friday, deposit by the following Wednesday. 

If the due date for a deposit falls on a federal 

or state bank holiday or on a Saturday or 

Sunday, the deposit is considered timely if it 

is made by the close of the next banking day.

Reminder: If you are a Semi-weekly 

Depositor, you must attach Form 941, 

Schedule B, to your Form 941. Note: No 

monthly or semi-weekly FTD payments are 

required if the total tax liability for the quarter is less than $2,500. Employers may mail 

in payments with their quarterly Form 941.

If employers have a deposit 

requirement, they may choose 

one of two deposit methods:

n FTDs can be made the preferred way 

through the Electronic Federal Tax Payment 

System (EFTPS). You can make tax deposit 

payments through the Internet at www.eftps.

gov or call EFTPS Customer Service at (800) 

555-4477.

n Mail or deliver Form 8109, Federal Tax 

Deposit Coupon, with their payment to an 

authorized financial institution or Federal 

Reserve Bank or branch. Make the check 

or money order payable to the financial 

institution.

Federal Tax Deposit Requirements 

for Employment Taxes

If total taxes

reported in the then

look-back period were: employer is a:

$50,000 or less Monthly Schedule 

Depositor

More than $50,000 Semi-weekly 

Schedule Depositor.

Injured Spouse 

Allocations

I

f an individual files a joint tax return 

with his or her spouse expecting a tax 

refund, and all or part of the refund 

was, or is expected to be, applied to the 

spouse’s past-due Federal tax debt, child 

or spousal support, Federal non-tax debt 

or state income tax obligation, the spouse 

who is not liable for the outstanding debt 

is considered a non-debtor spouse or an 

Injured Spouse. 

An injured spouse may qualify to receive 

his or her portion of the tax overpayment that was or is about to be applied 

to the outstanding debt. Injured Spouse 

Allocation, Form 8379, must be used to 

request the non-debtor spouse’s portion of 

the joint tax overpayment refunded to him 

or her. The Form 8379 may be filed with 

the joint Form 1040 (paper or electronic 

submission) or it may be filed separately, 

after an offset has occurred. 

Because the IRS will process the allocation request (if filed with the original 

return) before an offset occurs, filing Form 

8379 with the original return will improve 

processing time. If Form 8379 is filed after 

an offset has occurred, the Form 8379 can 

be filed by itself or with a Form 1040X. If 

the Form 8379 is filed after the original 

Form 1040 is processed, copies of all W-2 

and W-2G forms for both spouses and any 

Forms 1099 must be attached to the Form 

8379. Form 8379 should be filed as soon as 

the taxpayer becomes aware of the government debt offset. 

Please refer to the Injured Spouse 

Allocation, Form 8379, for additional information. For on-line assistance and information, visit IRS’s web site at www.irs.gov. 

Pre-recorded message (Topic 203) covers 

Failure to Pay Child Support, Federal nonTax and State Income Tax Obligations.
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

P

lans are underway for the 2007 

IRS Nationwide Tax Forums 

which will be held in six cities 

across the nation during July, August 

and September. The Tax Forums offer 

three full days of seminars with the 

latest word from the IRS leadership 

and experts in the fields of tax law, 

compliance and ethics. Tax professionals can earn up to 18 continuing 

professional education (CPE) credits, 

learn about the latest IRS e-Services 

products and schedule a visit to the 

Practitioner Case Resolution Room. 

The forums also feature a two-day 

expo with representatives from the 

IRS, business, finance and tax software companies offering their products, services and expertise. 

Dates and locations for 2007 are 

shown in the table below.

In 2006, more than 17,000 tax professionals, IRS staff members, and representatives from the tax, financial and 

business communities met over the 

summer for three days of learning, 

exchanging ideas and networking.

As in past years, the 2007 forums 

offer many new and timely seminar 

topics, an enhanced and wireless 

e-IRS Room and a totally automated 

Continuing Professional Education 

(CPE) credit process for enrolled 

agents, certified public accountants 

and certified financial planners. 

Tax professionals can each bring 

one difficult and long-standing case 

to the Practitioner Case Resolution 

Room, which last year resolved 91% 

of the 1,415 cases brought in and collected nearly $40,000 in revenue. 

Nationwide Tax Forums continue to 

offer features that attendees value 

highly; the quality rating for the 2006 

forum season increased to a record 

99%! For information on conference 

room rates and for the latest updates 

on online registration, seminars topics, schedules, exhibitor listings and 

more, visit www.taxforuminfo.com.

IRS Has Merged 

Digital Dispatch

and e-News for 

Tax Professionals

The Digital Dispatch and e-News for 

Tax Professionals, two e-mail newsletters from the Internal Revenue Service 

that covered tax news of interest to 

the tax professional community, have 

merged as of December 4, 2006. The 

new document will continue under the 

name e-News for Tax Professionals.

The goal is to make e-News for Tax 

Professionals as useful and informative 

as it has always been; it will continue 

to provide the latest tax information 

without any decrease in quality, content, ease or speed of distribution. It 

remains one of the best ways for tax 

professionals to stay on top of up-tothe-minute national and local IRS news 

from all Service operating and functional divisions. 

If you already are a subscriber to 

either one or both of these newsletters, you are not required to take any 

action. Our system will automatically 

merge all subscribers. However, subscribers can choose to unsubscribe by 

following the instructions at the bottom of the e-mail newsletter when 

they receive it. 

2007 IRS 

Nationwide Tax Forums 

Begin in July

Venue City Dates

Hilton Atlanta Atlanta, GA July 17–19

Hilton Chicago Chicago, IL July 31–August 2

Rio All Suites Las Vegas, NV August 21–23

Hilton New York New York, NY August 28 –30

Hilton Anaheim Anaheim, CA September 11–13

Disney’s Coronado Springs Orlando, FL September 18–20

The Information Returns Processing 

website will present the information you need 

to know if your client has information reporting requirements. Here you will find help-line 

phone numbers and hyperlinked sites to help 

meet reporting information returns and how 

to file electronically or magnetically.

http://www.irs.gov/taxpros/content/

0,,id=98185,00.html

Information 

Returns Processing

19
What is it?

 P

PS is a nationwide, toll-free, 

accounts service designed specifically for practitioners that was 

introduced in January 2002. PPS should 

be the “First Point of Contact” for 

account-related issues. PPS offers consistent service to all practitioners nationwide. Some things to know:

n Practitioners receive priority handling, 

ensuring shorter wait times

n Customer Service Representatives 

(CSR) are specialized to handle practitioner issues

n PPS calls are split by Individual and 

Business inquiries. It is important you 

select the appropriate option when 

prompted.

n Practitioners seeking service from our 

Automated Collection System (ACS) 

should select Option 3 and enter the 

taxpayer identification number when 

prompted to ensure your call is handled 

by an authorized assistor. 

Note: PPS assistors can provide general 

information on other Compliance issues, 

such as audits or CP2000 notices. 

The type of Assistance 

PPS offers:

n Account Problems—

Individual or Business

n Complex Refunds—Undeliverable, 

destroyed, refund repayment, erroneous refunds, and refund offsets 

n Installment Agreements—arrangements to pay balance due accounts

n Notices 

n Payment Tracers

Hints for improving 

your PPS experience:

n Don’t give the PPS toll-free number 

to anyone who is not a practitioner 

n PPS only handles account related 

inquiries. Do not ask tax law questions

n PPS sites are specialized by Individual 

and Business (choose the prompts for 

your type of inquiry)

n PPS cannot resolve AUR or EXAM 

issues, they can only give explanations 

or instructions. Call the number on the 

notice received by your client.

n Have your Power of Attorney (POA) 

data available to discuss or fax

I

RS began charging a user fee for processing 

Form 8802, Application for U.S. Residency 

Certification, effective November 1, 2006. 

This fee was announced in Revenue Procedure

2006-35, which was published in IRM 2006-37 

dated September 11, 2006. 

Approved Form 8802 applications receive certification letters (Form 6166) which may be used 

as proof of U.S. residency to claim benefits in 

the form of reduced tax rates under an income 

tax treaty or with an exemption from a value 

added tax (VAT) imposed by a foreign country.

An Office of Management and Budget directive 

instructed federal agencies to charge user fees 

reflecting the full cost of goods or services that 

“convey special benefits to recipients beyond 

those accruing to the general public.”

The initial user fee of $35.00 covers a single 

Form 8802 requesting up to 20 certifications 

Form 6166 for a single Taxpayer Identification 

Number (TIN) — regardless of the country 

for which certification is requested or the tax 

period to which certification will apply. An 

additional $5.00 fee covers requests on the 

same Form 8802 for up to 20 additional Forms 

6166 certificates issued for the same TIN. 

Applicants are advised, therefore, to include all 

requests for Form 6166 certificates on a single 

Form 8802 Application to avoid a new $35.00 

user fee charge for processing of a second 

Form 8802 application.

The user fee, for example for:

Number of Form 6166 User Fee

Requested on Form 8802 Assessed

1 - 20 $35.00

21 - 40 $40.00

41 - 60 $45.00

61 - 80 $50.00

(continues in 20 certificate increments 

for each additional $5.00)

For more information, check out the IRS News 

Release IR-2006-139, Revenue Procedure 

2006-35, and Notice 2006-90, all of which are 

available on the IRS web site.

Practitioner Priority Service

Toll-Free (866) 860-4259

8:00 a.m. - 8:00 p.m. Local Time 

(Alaska and Hawaii follow Pacific Time)

Practitioner Priority 

Services (PPS)

U.S. Residency Certification 

User Fee Implementation: 

November 1, 2006

2007 TAX HINTS

Practitioner’s Guide to the Filing Season

Tax Talk Today

Tax Talk Today is a free monthly web cast sponsored by the IRS about current tax 

issues and policies. Just go to www.TaxTalkToday.tv to register and attend. You can 

even watch archived shows and purchase inexpensive CPE credits. As we posted this 

publication, the full 2007 Tax Talk Today schedule was not available. For the latest 

information on topics, visit: http://www.taxtalktoday.tv/index.cfm?page=8.71

20
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

The IRS Office of Taxpayer Burden Reduction 

develops proposals designed to reduce the 

time and money taxpayers spend to meet their 

federal tax obligations. 

TBR’s primary strategic objective is to maintain 

a consistent and coordinated approach to burden reduction that meets customer needs by 

focusing on the following:

n Simplifying forms, publications and notices

n Streamlining internal policies, 

processes and procedures

n Promoting less burdensome rulings, 

regulations and laws 

n Partnering with internal and external stakeholders to more efficiently and effectively identify and address burden reduction initiatives. 

TBR initiatives currently 

underway include:

n Form 944, Employer’s Annual Federal 

Tax Return, replacing the quarterly Form 941 

for many small business filers

n The redesigned Form 940, Employer’s 

Annual Federal Unemployment Tax Return, 

simplifying filing this return for approximately 

5.6 million taxpayers. 

Other TBR initiatives still 

in development include: 

n Capital Gains Tax Reporting

n Simplifying the S-election Process

n Redesigning Form 8857, Request 

for Innocent Spouse Relief

n Correcting Employment Tax Returns

n Form 8829, Expenses for Business Use 

of Your Home.

Additional information on the Office of Taxpayer 

Burden Reduction and its projects can be found 

on www.irs.gov by searching under keyword 

“burden reduction.” In addition, Publication 

4109, Office of Taxpayer Burden Reduction, 

can be ordered by calling (800) 829-3676 or it 

can be downloaded from www.irs.gov. 

The IRS encourages the public to submit ideas 

for reducing taxpayer burden. Form 13285A, 

Reducing Tax Burden on America’s Taxpayers, 

may be used to submit ideas to TBR. This form 

can be found on www.irs.gov and can be 

e-mailed to *sbse.otpbr@irs.gov or mailed to: 

Office of Taxpayer Burden Reduction

Internal Revenue Service

SE:S:TBR, IR 2023

1111 Constitution Avenue, NW

Washington, D.C. 20224

Taxpayer 

Advocate Service

The Taxpayer Advocate Service is an independent organization within IRS whose employees 

assist taxpayers who are experiencing economic harm, who are seeking help in resolving 

tax problems that have not been resolved 

through normal channels, or who believe that 

an IRS system or procedure is not working as it 

should. You may be eligible for assistance if:

n You are experiencing economic harm or 

significant cost (including fees for professional 

representation), 

n You have experienced a delay of more than 

30 days to resolve your tax issue, or

n You have not received a response or resolution 

to the problem by the date promised by the IRS.

The service is free, confidential, tailored to 

meet your needs, and available for businesses 

as well as individuals. There is at least one 

local taxpayer advocate in each state, the 

District of Columbia, and Puerto Rico. Because 

advocates are part of the IRS, they know the 

tax system and how to navigate it. If you qualify, you will receive personalized service from a 

knowledgeable advocate who will:

n Listen to your problem, 

n Help you understand what needs to be done 

to resolve it, and 

n Stay with you every step of the way until 

your problem is resolved. 

You can contact the Taxpayer 

Advocate Service by:

n Calling their toll-free case intake line at 

(877) 777-4778 or TTY/TTD (800) 829-4059, 

n Writing or calling your local taxpayer advocate, whose address and phone number are 

listed in the government listings in your local 

telephone directory and in Pub. 1546, The 

Taxpayer Advocate Service of the IRS—How 

to Get Help With Unresolved Tax Problems,

n Filing Form 911, Application for Taxpayer 

Assistance Order, with the Taxpayer Advocate 

Service, or 

n Asking an IRS employee to complete Form 

911 on your behalf.

To get a copy of Form 911 or learn more about 

the Taxpayer Advocate Service, go to www.irs.

gov/advocate.

Reducing the Burden Taxpayers Face 

The Taxpayer Advocate Service is headed by the National Taxpayer Advocate 

(NTA) who is mandated to report concerns and findings to Congress each 

year. To read the Executive Summary 

or the full report: http://www.irs.gov/

advocate/article/0,,id=165806,00.html.

LITCs are independent organizations that provide low income taxpayers with representation in 

federal tax controversies with the IRS for free or for a nominal charge. The clinics also provide tax 

education and outreach for taxpayers with limited English proficiency or who speak English as a 

second language. Pub. 4134, Low Income Taxpayer Clinic List, provides information on clinics in 

your area. It is available at www.irs.gov or your local IRS office.

Low Income Tax 

Clinics (LITCs)

21
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

22

I

ncreasingly the IRS is coordinating 

efforts across divisions on issues relating to international tax administration. One such effort involves outreach 

and enforcement efforts aimed at 

improving compliance with non-resident alien withholding regulations.

These regulations require that a U.S. 

person (i.e. individual, corporation, 

partnership, etc.) who makes payments 

of certain types of U.S. sourced income 

to non-resident aliens generally must 

withhold tax at a rate of 30% on such 

payments, unless there are applicable 

tax treaty provisions allowing for a 

reduced rate (see Publication 515). 

Such payments are generally subject 

to reporting on Form 1042, Annual 

Withholding Tax Return for U. S. Source 

Income of Foreign Persons and Form 

1042-S, Foreign Person’s U.S. Source 

Income Subject to Withholding. The U.S. 

person making these payments—most 

often referred to as a U.S. withholding 

agent—is responsible for the withholding and reporting.

In addition, these regulations require 

the foreign status of the non-resident 

alien, and any applicable treaty claims, 

to be documented. Proper documentation could include Form W-8 or Form 

8233, depending on the type of person 

and income. 

Recently, hundreds of U.S. withholding 

agents voluntarily identified and corrected their withholding and reporting 

deficiencies with respect to payments to 

non-resident aliens. A number of these 

withholding agents indicated that they 

were not aware of their non-resident 

alien (NRA) reporting or withholding 

responsibilities at all until they were 

prompted by their tax advisors to perform a thorough review of their operations. An analysis of their payments to 

foreign vendors from accounts payable 

revealed a number of payments that 

were subject to NRA reporting and 

withholding, but for which neither 

reporting nor withholding was performed. The most common of these 

types of payments were interest, royalties, personal services fees, rents and 

other fixed or determinable annual or 

periodic payments.

U.S. withholding agents should be 

aware of these issues and review their 

operations to ensure compliance with 

the NRA withholding and reporting 

regulations. Practitioners with business 

or individual clients who may be subject to withholding may wish to discuss 

these issues with their clients and help 

them ensure compliance. Where problem areas are identified, immediate 

steps should be taken to disclose the 

problem to the IRS and institute corrective actions.

For more information about nonresident alien reporting and withholding requirements, refer to Treasury 

Regulation sections 1.1441-1446 and IRS 

Publication 515. These and other references can be found on the IRS website 

www.irs.gov. In addition, note that the 

IRS published an Industry Directive in 

November 2003 that gives guidance 

to IRS field agents for audits of forms 

1042 (Industry Directive for the Audit 

of Forms 1042). This Directive may be 

useful as a guide for performing the 

compliance checks mentioned above. 

However, it was written in general 

terms and should not be relied upon 

to identify every instance of noncompliance.

The Internal 

Revenue Service 

Advisory Council 

(IRSAC) 

T

he first Advisory Group to the 

Commissioner of Internal Revenue, the 

Commissioner’s Advisory Group (CAG) 

was established in 1953 to advise the Service 

on national policy issues. The CAG was 

renamed in 1998, becoming the Internal 

Revenue Service Advisory Council (IRSAC) to 

more accurately reflect its agency-wide scope 

in advising the entire IRS. The IRSAC was 

strategically refocused into subgroups mirroring three of the operating divisions, LMSB, 

W&I and SB/SE. (TEGE has its own Advisory 

Committee.) 

IRSAC’s objectives have continued to evolve. 

Responding to one of today’s most critical 

issues, IRSAC has formed a fourth subgroup, 

the tax gap analysis subgroup, which will challenge tax and economics experts to identify 

improved methods to measure voluntary tax 

law compliance. 

IRSAC members have diverse backgrounds 

reflecting a wide range of experience in tax 

administration. Members also bring to the 

Council—and the Service—a unique outside 

perspective on public perceptions of IRS 

actions and decisions. The group explores 

broad tax administration topics and organizational issues rather than narrow technical 

issues. Discussions focus on solutions as well 

as constructive observations on the federal 

tax system. Each year the IRSAC prepares an 

annual report on issues and initiatives they 

have studied, with their recommendations to 

the Commissioner. Copies of annual reports 

can be found at http://www.irs.gov/taxpros/

article/0,,id=102281,00.html.

Members are selected for a three-year term 

and meet in Washington, DC several times a 

year. This spring the IRS will solicit nominations for new IRSAC members with a notice 

in the Federal Register and through the Tax 

Professionals’ page at irs.gov.

Non-Resident Alien 

Withholding and Reporting
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

Pittsburgh PO Boxes

Form Type Old Payment Address New Payment Address

1040 PO Box 371361 PO Box 37002

1040-A Pittsburgh, PA 15250-7361 Hartford, CT 06176-0002

1040-EZ

1040-ES PO Box 371999 PO Box 37001

Pittsburgh, PA 15250-7999 Hartford, CT 06176-0001

4868 PO Box 371361 PO Box 37003

Pittsburgh, PA 15250-7361 Hartford, CT 06176-0003

940 PO Box 371307 PO Box 105887

Pittsburgh, PA 15250-7307 Atlanta, GA 30348-5887 

940-EZ PO Box 371324 PO Box 105659

Pittsburgh, PA 15250-7324 Atlanta, GA 30348-5659

941 PO Box 371493 PO Box 105703

Pittsburgh, PA 15250-7493 Atlanta, GA 30348-5703

943 PO Box 371475 PO Box 105094

Pittsburgh, PA 15250-7475 Atlanta, GA 30348-5094

945 PO Box 371441 PO Box 105092

Pittsburgh, PA 15250-7441 Atlanta, GA 30348-5092

1041-ES PO Box 371999 PO Box 105401

Pittsburgh, PA 15250-7999 Atlanta, GA 30348-5401

2290 PO Box 371488 PO Box 105421

Pittsburgh, PA 15250-7488 Atlanta, GA 30348-5421

CP Notices PO Box 371410 PO Box 37004

(521 & 523) Pittsburgh, PA 15250-7410 Hartford, CT 06176-0004

Memphis PO Boxes

Form Type Old Payment Address New Payment Address

1040 PO Box 105093 PO Box 105017

1040-A Atlanta, GA 30348-5093 Atlanta, GA 30348-5017

1040-EZ

1040ES PO Box 105900 PO Box 105225

Atlanta, GA 30348-5900 Atlanta, GA 30348-5225

4868 PO Box 105073 PO Box 105050

Atlanta, GA 30348-5073 Atlanta, GA 30348-5050

CP Notices PO Box 105404 PO Box 105416 

(521 & 523) Atlanta, GA 30348-5404 Atlanta, GA 30348-5416

Lockbox 

Post Office Box 

Closures 

Reminder: As a result of the realignment of 

workload, the Lockbox Post Office Boxes for 

the following addresses have been closed:

Pittsburgh PO Boxes 

If you have been sending paper check tax 

payments to Pittsburgh Post Office boxes, 

those addresses have been closed and must 

be changed to the Hartford or Atlanta 

addresses listed to the right.

Memphis PO Boxes 

If you have been sending paper check tax 

payments to Memphis Post Office boxes, 

those addresses have been closed and must 

be changed to the Atlanta addresses listed 

to the right.

Starting January 2, 2007, all mail 

sent to the old payment addresses will be 

returned to sender.

Other changes...

Remember: Some Returns 

Must Be Sent To New Addresses This Year

Some of your clients’ individual tax returns 

may have to be sent to a different service 

center than last year. In 2007, taxpayers 

from 5 states, Minnesota, North Dakota, 

Arkansas, Kentucky, and New Jersey, whose 

individual paper tax returns are mailed to 

an IRS service center, will file at a different service center this year. Tables showing 

the correct address and service center are 

at www.irs.gov. Taxpayers who receive a tax 

instruction booklet from the IRS in the mail 

and use the labels included with the booklet 

can be assured that their tax returns will go 

to the correct address. Taxpayers who e-file 

are not affected by these changes. 

For a complete list of ALL filing 

addresses, click here

23
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

As a professional return preparer, especially if you have walk-in traffic, 

you have both the expertise and the opportunity to see how would-be

 fraudsters are attempting to commit refund crimes. This very important 

information can be invaluable to the IRS units working on tax refund schemes. 

Therefore, the IRS has implemented a way to streamline the reporting of any fraud 

allegations you send us. 

Some types of fraudulent activity should be referred directly to the IRS Fraud 

Detection Centers (FDCs), where all refund returns are screened, including:

n Persons filing questionable/suspicious tax returns

n Persons claiming refunds using false or altered W-2 forms 

n Persons receiving multiple refund checks at one or more locations

n Persons filing more than one tax return for a single year either by filing at 

different IRS campuses or at the same campus using a fictitious Social Security 

Number (SSN) or another person’s SSN

n Information about tax return preparers who are preparing returns with false 

information on their client’s tax forms in order to get larger refunds

n Information about people selling dependent Social Security Numbers 

If you detect these types of fraudulent activities, forward the information directly to 

the Internal Revenue Service Criminal Investigation Division by e-mail at HQ-ORF@

ci.irs.gov or by faxing information directly to the FDC that reviews refund returns 

from your state. (Note: Many of these fax numbers are new since last filing season.)

Reporting Tax Fraud 

States Fraud Detection Center FAX Number

CT, MA, ME, NH, RI, VT, Upstate NY, MI Andover (978) 691-6902

GA, NC, SC, AL, FL Atlanta (770) 455-2901

TX, NM, AZ, OK Austin (512) 460-2724

Brooklyn, Manhattan, NJ Brookhaven (631) 654-6912

OH, KY, IN Cincinnati (859) 669-3711

CA Fresno (559) 441-5881

IL, WI, ND, SD, NE, IA, KS, MO, MN Kansas City (816) 823-8543

AR, TN, MS, LA Memphis (901) 546-3148

CO, MT, WY, UT, NV, ID, OR, WA, AK, HI Ogden (801) 620-6806

PA, VA, MD, DE, WV, Puerto Rico and 

other International Returns Philadelphia (215) 516-7028

If you have knowledge of or suspect other types of tax crimes, please contact the 

IRS Fraud Referral Hotline at (800) 829-0433. 

The IRS currently has a number of civil and criminal enforcement initiatives underway to combat refund fraud and other tax crimes. With your specialized knowledge 

as a tax professional, you may be able to help us identify a tax fraud scheme early—

so that it can be stopped quickly. 

For more information about IRS enforcement activities, visit www.irs.gov.

The alternative minimum tax (AMT) is an extra tax some people have 

to pay if their regular income tax is 

reduced due to certain deductions and 

credits. The AMT works like the regular 

income tax, but with different rules for 

figuring income and deductions, and 

with different tax rates. These rules set 

limits on the amount by which deductions and credits can reduce total tax. 

If you already pay at least the minimum because of your regular income 

tax, you do not have to pay the AMT. 

However, if your regular tax is less than 

the minimum, then you have to make 

up the difference by paying the AMT in 

addition to your regular tax.

If you are unsure whether the AMT 

applies to you, pay attention to the following 10 items; they often trigger the 

need to calculate AMT: 

1. Personal exemptions

2. Standard deduction

3. State and local income, sales 

and property taxes

4. Mortgage interest on refinanced or 

second mortgages and home equity 

loans not used to buy, build or improve 

a home

5. Medical expenses

6. Miscellaneous itemized deductions 

subject to the 2% floor

7. Exercise of incentive stock options

8. Long-term capital gains

9. Tax-exempt interest from private 

activity bonds

10. Business tax deductions

Top 10 Potential 

Triggers for 

Alternative 

Minimum Tax

24
2007 TAX HINTS

Practitioner Priority Service (866) 860-4259 Practitioners’ first point of contact for account-related issues.

IRS Tax Help Line for Individuals (800) 829-1040 For filers who need procedural or tax law information or help to file.

Business and Specialty Tax Line (800) 829-4933 For Small Businesses, Corporations, Partnerships and Trusts who need information or help 

related to their Business Returns or Business (BMF) Accounts. Services cover Employer 

Identification Numbers (EINs), 94x returns, 1041, 1065, 1120S, Excise Returns, Estate and Gift 

Returns, as well as issues related to federal tax deposits.

Refund Hotline (800) 829-1954 For 1040-type Individual and Joint Filers who need to check the status of their current year 

refund. Automated Refund Self-Service Interactive applications are offered on this line. Note: 

The Where’s My Refund? automated self-service feature is also available 24/7 at www.irs.gov/ 

to obtain refund status information.

e-Help Desk (866) 255-0654 For questions on e-file, EFTPS and e-services.

Forms and Publications (800) 829-3676 For individuals, businesses and tax practitioners who need IRS tax forms, instructions and 

related materials and tax publications.

National Taxpayer Advocate (877) 777-4778 For taxpayers whose tax problems have not been resolved through normal channels. The 

Taxpayer Advocate Service Help Line (TAS) provides an independent system to assure that tax 

problems are promptly and fairly handled. TAS operates independently of any other IRS office 

and reports directly to Congress through the National Taxpayer Advocate.

Telephone Device for the Deaf (800) 829-4059 (TDD) For hearing-impaired taxpayers who need tax law or procedural information relating to filing 

their returns or who need information or assistance relating to their accounts.

Taxpayer Advocacy Panel (888) 912-1227 For citizens who want to provide ideas and suggestions on how to improve IRS services or who 

want to make recommendations for improvement of IRS systems and procedures.

Electronic Federal Tax Payment System (800) 555-4477 For taxpayers who want to pay business or individual taxes through electronic funds transfer.

(EFTPS) (800) 733-4829 (TDD) The EFTPS Toll-Free numbers can provide callers with EFTPS enrollment forms, instructions and

(800) 244-4829 (SP) customer assistance.

Government Entities (TEGE) Help Line (877) 829-5500 For taxpayers who need tax information or assistance relating to Tax Exempt or Government 

Entities, Tax Exempt Bonds, Employer/Employee Pension Plans or Indian Tribal Agreements.

Extension to File (888) 796-1074 For individual filers who want to submit an extension to File for a 1040-series return 

via telephone.

TeleTax Topics (800) 829-4477 Prerecorded messages on various tax topics.

Form 706 (866) 699-4083 For answers to questions concerning Form 706, United States Estate Tax Returns, and 

Form 709 Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns.

AARP Tax-Aid Information Line (888) 227-7669 American Association of Retired Persons locations for income tax preparation by IRS 

trained volunteers.

Automated Collection System (ACS) (800) 829-3903 Business accounts assigned to ACS.

Businesses 

Automated Collection System (ACS) (800) 829-7650 Individual accounts assigned to ACS.

Individuals

Criminal Investigation (800) 829-0433 Report tax fraud.

Informant Hotline 

Employer Identification Number (EIN) (800) 829-4933 EIN application and changes.

Form 2290 (866) 699-4096 Heavy Vehicle Use Tax issues related to Form 2290.

Information Return Reporting (866) 455-7438 Tax law help for payers of W-2s and 1099s.

Terrorist Act or Combat Zone (866) 562-5227 Information for those affected by a Terrorist Act or a Combat Zone participant or related 

Special Hotline accounts issues.

Treasury Inspector General for Tax (800) 366-4484 Report allegations of misconduct or improprieties by IRS employees.

Administration (TIGTA) Hotline

Practitioner’s Guide to the Filing Season

IRS TOLL FREE NUMBERS

25
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

26

W&I serve taxpayers 

with the following profiles:

n Approximately 131 million tax returns

n Most pay taxes through withholdings

n More than 70% of returns prepared 

by others

n Most interact with the IRS once a year

n Most receive refunds

W&I organizational offices:

n Customer Assistance, Relationships 

and Education (CARE)

n Customer Account Services (CAS) 

Compliance

Focusing on better service to 

customers through:

n Media and Publications

n Stakeholder Partnership Education 

and Communication (SPEC)

n Field Assistance and Taxpayer 

Assistance Centers

For additional information on W&I, 

click on: W&I at a Glance

LMSB serves taxpayers 

with the following profiles:

n Corporations, subchapter S corporations, and partnerships with more than 

$10 million in assets

n The largest business taxpayers 

interact with the IRS on an ongoing 

basis

n Most have in-house tax divisions. 

Major issues are tax law interpretation, 

accounting and regulatory issues.

LMSB is divided into the 

following industry operations: 

n Retailers, Food, Pharmaceutical and 

Healthcare

n Natural Resources and Construction

n Financial Services

n Heavy Manufacturing and 

Transportation

n Communications, Technology 

and Media

n Field Specialists

For additional information 

on LMSB, click on:

http://lmsb.irs.gov/hq/c/downloads/

Organization/Directories/LMSB%20

Industry%20Mgrs%20by%20ORG%

202-11-04.doc 

Internal Revenue Service At-a-Glance

Wage and Investment (W&I) Division 

Small Business/Self-Employed (SB/SE) Division

Large & Midsize Business (LMSB) Operating Division

SB/SE serves taxpayers 

with the following profiles:

n Approximately 45 million taxpayers

n About 33 million full or partially selfemployed

n About 7 million small businesses with 

assets of less than $10 million

n Have some of the most complex 

issues due to tax law requirements and 

the number of forms and schedules 

required

n Approximately 80 percent use a paid 

return preparer

SB/SE Business Units:

n Field Collection

n Field Examination

n Campus Compliance Services

n Specialty Taxes

n Fraud/Bank Secrecy Act

n Taxpayer Burden Reduction

n Communication, Liaison & Disclosure

SB/SE/Self-Employed Division serves

following types of taxpayers:

n Individuals filing Schedules C, E, F 

or Form 2106.

n All other businesses with assets under 

$10 million.

For additional information for 

taxpayers served by SB/SE:

http://www.irs.gov/taxpros/index.html

http://www.irs.gov/businesses/small/

index.html

Operating Divisions continued on page 27
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

27

 TE/GE meets the special needs of:

n Pension Plans

n Exempt Organizations

n Government Entities. 

TE/GE’s three major business units:

n Exempt Organizations (EO)

n Employee Plans (EP)

n Government Entities (GE).

Examples of areas where TE/GE 

provides customer assistance are:

n EO: charities, private foundations, 

other nonprofit organizations

n EP: retirement plans such as 401(k), 

403(b), 457, SEP, SIMPLE and defined 

benefit pension plans

n GE: federal, state and local 

governments (FSLG), Indian tribal 

governments (ITG) and tax-exempt 

bonds (TEB) for the municipal finance 

community.

For direct technical assistance on any 

of these subjects, call TE/GE’s Customer 

Account Services toll-free line at (877) 

829-5500, Monday-Friday, 8:00 a.m. to 

6:30 p.m. ET. You can also go to the 

following Websites fo r information 

on technical guidance, compliance programs, specialized education programs 

and services, seminars, workshops, forms 

and publications and more:

n EP: www.irs.gov/ep

n EO: www.irs.gov/eo

n FSLG: www.irs.gov/govts

n ITG: www.irs.gov/tribes

n TEB: www.irs.gov/bonds 

The Appeals Division has been resolving 

tax disputes for over three-quarters of 

a century and our mission has remained 

the same for the last 80 years. Our goal 

is to increase confidence in the overall 

fairness of the tax system by providing 

an efficient and independent administrative appeal process for all taxpayers. 

Our commitments to taxpayers are:

n To explain their appeal rights and 

the Appeals process.

n To listen to their concerns.

n To be courteous and professional.

n To be responsive (and allow taxpayers reasonable time to respond to any 

requests for information).

n To be fair and impartial. 

Want to Learn More About 

Appeals and Its Processes?

Appeals has developed and posted on 

their irs.gov website a few short videos 

that will explain the Appeals process. 

Link to Online Videos of the Appeals 

Process http://www.irs.gov/individuals/

article/0,,id=137945,00.html

Below is a list of publications and 

forms relating to the Appeals process 

which may be found on the Appeals 

Publications and Forms, About Your 

Appeal Rights web site located on irs.gov 

at the following link: http://www.irs.gov/

individuals/article/0,,id=160745,00.html

Publications

Publication 1, Your Rights As a Taxpayer

Publication 5, Your Appeal Rights 

and How to Prepare a Protest If You 

Don’t Agree

Publication 594, What You Should 

Know About The IRS Collection Process

Publication 1660, Collection 

Appeal Rights

Publication 3498 & 3498A, 

The Examination Process

Publication 4165, An Introduction to 

Collection Due Process Hearings

Publication 4167, Appeals—Introduction 

to Alternative Dispute Resolution

Publication 4227, Overview of the 

Appeals Process Brochure

Forms

Form 656, Offer in Compromise

Form 843, Claim for Refund and 

Request for Abatement

Form 2751, Proposed Assessment 

of Trust Fund Recovery Penalty

Form 8836, Qualifying Children 

Residency Statement

Form 9423, Collection Appeal Request

Form 12203, Request for Appeals 

Review

Form 12153, Request for a 

Collection Due Process Hearing

Form 12509, Statement 

of Disagreement

Tax Exempt and Government Entities (TE/GE) Division

Appeals Division
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

28

940/941 e-file

990/990-EZ/990-PF/1120-POL e-file

1040 Central

1041 e-file 

1065 e-file 

1120/1120S/7004 e-file

1120 POL e-file 

2006 Tax Law Changes for Individuals

2007 Nationwide Tax Forums - NWTFs

Abusive Offshore Tax Avoidance Schemes

Abusive Tax Shelters

Advertising/Promotion Publications - ERO’s - 

Marketing Toolkit, Refund Cycle Chart 

Amended Returns 

Appeals Process - link to streaming video

Appeals - Resolving Tax Disputes 

Application to Participate in the e-file Program 

(paper version) 

Approved IRS e-file for Business Providers

Armed Forces - Tax Information 

Around the Nation

Authorized IRS e-file Provider Locator Service 

for Tax Professionals

Become an Authorized IRS e-file Provider

Burden Reduction - About the Office of 

Taxpayer Burden Reduction

Business e-file options

Calendar, Tax for 2007 Pub. 509

Centralized Authorization File (CAF)

Charities & Other Non-Profits

CID - Criminal Enforcement 

Circular 230 (Rev. 6/2005)

COEs - Centers of Excellence Industries/

Professions

Combat Zone Provisions - FAQs

Compliance & Enforcement News

Consumer Alerts & Tax Scams

Contact My Local Office - state-by-State IRS 

Office Locations, Hours etc. 

Corporations, Tax Information for

CP-2000 Prevent Delays in the Processing 

Credit Card Payments - Individuals

Criminal Enforcement

Criminal Investigation Division - CID

Direct Transmitters - What’s New in EMS for 

2006

Discontinuance of Non-Encrypted e-file 

Transmission Options

Disaster Assistance Self-Study

Disaster Relief - Pub. 3833

Draft Tax Forms

EA Exam

EA Information 

e-file Application & Participation - Pub 3112

e-file Checklist for Individuals

e-file Demographics for Electronic Return 

Originators

e-file Demographics

e-file FAQs for Tax Professionals - Publication 

3452 TY 2006

e-file for Business & Self-Employed Taxpayers

e-file for Business Program Overview

e-file for Business Partners

e-file for Business Providers

e-file for Large & Mid-Size Corporations

e-file Library

e-file Made Easy - A Tax Professional’s One 

Stop e-file/e-pay Shop 

e-file Market Research Data

e-file Provider News & Alerts

e-file Partners for Individuals 

e-file Partners for Financial Institutions/

Employers

e-file Partners for Taxpayers

e-file for Tax Professionals - Landing page

e-file Providers, Individual Locator

e-file New Requirements for large Corps & 

Exempt Organizations

e-file Resources - Help Desk & State e-file 

Coordinators

e-file Resources for EROs, etc

e-file Revenue Procedure 2005-60 new

e-file for Software Developers & Transmitters

e-file Technical Publications

EFTPS - Express Enrollment for Businesses Pub 

4276

EFTPS on irs.gov 

EFTPS.GOV

EFTPS Marketing Materials Practitioner Order 

Form - FMS

e-Help Desk - Toll-Free Number 

EIN - Apply Online 

EIN, Online Application FAQs

EITC Assistant

EITC Information/Resources 

EITC - Do You Qualify?

Electronic Federal Tax Payment System

Electronic Funds Withdrawal - EFW

Electronic Payment Options Individual & 

Business 

Electronic Payment Options Brochure Pub 

3611

Electronic Reading Room 

Electronic Signature Methods - PIN

Employment Tax e-file System

Employment Taxes - e-file and e-pay Options 

IRS.gov HotLinks

SB/SE E-Submissions/e-Interactions & More

An alphabetical listing of Hyperlinks for www.irs.gov

Tip: Save this file to your Desktop for quick reference

continued on page 29
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

29

Employment Taxes for Small Businesses

Employment Tax Enforcement Program

Employment Tax Schemes

Encryption - New Transmitter Requirements

e-News for Tax Professionals - Sign Up

Enrolled Agent Information (Office of 

Professional Responsibility - OPR)

ERO Locator Service

Errors - Top Errors by Paid Preparers on Paper 

Returns

e-services

e-services Products

e-services Registration page (link to online 

tutorials found in red bar)

ETAAC Annual Report to Congress 2006

Extensions - Bs & Individual 

Fact Sheets - Newsroom

FAX Guidelines, New IRS

Federal Register

Federal/State e-file

Fed/State e-file Coordinators

Fed/State Employment Tax e-file Schemas 

(FSET)

FedStats.gov 

Filing Information Returns Electronically (FIRE)

Filing Season Supplement, Pub 1345A for TY 

2005

Financial Management Service (FMS) U.S. Dept 

of the Treasury

FIRE

FIRE.net http://fire.irs.gov 

Forms & Pubs

Forms 940 & 941 e-file Programs

Form 990/990EZ/990PF & 1120POL e-file 

Form 1041 e-file Program

Form 1065 e-file Program

Form 1120/1120S e-file 

Form 1120POL e-file 

Form 8453, U.S. Individual Income Tax 

Declaration for an IRS e-file Return

Form 8633 - Application to become an 

Authorized IRS e-file Provider

Form 8633 FAQs

Form 8878, IRS e-file Signature Authorization 

for Application for Extension of Time to File

Form 8878 - Spanish version 2006

Form 8879, IRS e-file Signature Authorization

Fraud Alerts - CID

Fraud, Reporting 

Free File Home Page

Free File FAQs & Help Center

Free Online Filing - Free File Home page 

Frequently Asked Tax Questions & Answers

Frivolous Tax Arguments, The Truth About

Government Entities - Tax Information for

Government Printing Office

HCTC: Individuals - Overview for Health 

Coverage Tax Credit

Hot Topics

Hurricane Relief

Identity Theft - Federal Trade Commission

Identity Theft - SSA Web Page 

Individuals, Tax Information for

Industries/Professions

Information Returns - e-file with FIRE

Information Returns Processing

Innocent Spouse Tax Information FAQs

Installment Agreements

Internal Revenue Bulletins- IRBs

International Businesses, Tax Information for

International Taxpayer

Internet Filing MeF 

IRBs

IRM - Internal Revenue Manual

IRPAC & IRSAC General Information 

IRS e-file & e-pay for Business & Self-Employed 

Taxpayers

IRS e-file for Business Partners

IRS e-file for Business Providers

IRS e-file For Tax Professionals

IRS Guidance - A Brief Primer 

IRS Office Locations, Hours, Addresses

IRSAC & IRPAC General Information

IRS Resources

IRS - The Basics

ITINs - Reminders for Tax Professionals

Latest News - The IRS Newsroom

Laws, Regulations, Research and Court Rulings

Locator Service - Individual e-file Providers

Logo, IRS e-file 

Low Income Tax Clinics -LITC 2007

Mandates (State)

Marketing Toolkit

Market Research Data for IRS e-file

MeF Internet Filing 

Military Tax Information 

Modernization - New IRS

Modernized e-file MeF (1120, 990)

Money Laundering

Nationwide Tax Forums, IRS Summer 2007

News & Alerts for e-file Providers

News Releases

Newsroom - Latest News

Nonfiler Enforcement Program

Notices - Understanding Your IRS Notice

Offer in Compromise - OIC

Office of Professional Responsibility Enrolled 

Agent Program

Office of Professional Responsibility, Latest 

News from 

Offshore Tax Avoidance Schemes

Online Application EIN Form SS-4

Online EIN FAQs

Partial Payment Installment Agreements

Partners - e-file for Business Partners

Payment Options for Individuals & Businesses

Payroll Service Providers

IRS.gov HotLinks

continued from page 28

continued on page 30
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

30

PINs - Self -Select & Practitioner 

Practitioner Priority Service

Preparer - Top Errors by Paid Preparers on 

Paper Returns 

Prior Year Forms & Pubs

Projections - Statistics

Providers, e-file for Business

Publication 17 TY 2006 Tax Guide for 

Individuals 

Publication 334 - 2006 Tax Guide for Small 

Businesses

Publication 1220 (FIRE) 

Publication 1345

Publication 1345A, Filing Season Supplement 

Publication 1436 - e-file Test Package TY 2006

Publication 3112 - e-file Application & 

Participation 

Publication 3452, e-file FAQs for Tax 

Professionals TY 2006

Q&A for Tax Professionals Pub 3452 2006

QuickAlerts Library

QuickAlerts Messaging System for EROs, 

Software Developers/Transmitters

QuickAlerts - Welcome Page

Reading Room 

Refund Cycle Chart - 2007

Reporting Agents (RAF)

Resource Information - IRS

Retirees/Sr. Citizens

Return Preparer Enforcement Program

Revenue Procedure 2005-60 Individual & 

Business e-file

SB/SE Online Classroom

SB/SE Page, Your One-Stop Business Resource

SB/SE Partners Page

Scams/Consumer Alerts

Schedule K-1 Tips for Accurate Filing 

Schedule K-1, Two-Dimensional Bar Code 

Specifications & Certification Profess

Schemes - Tax Scams & Consumer Alerts

Schemes - Abusive Offshore Tax Avoidance 

Schemes - Talking Points 

SEE - Special Enrollment Exam 2006 

Self-Select PIN 

Small Business Self-Employed One-Stop 

Resource

Small Business Self-Employed Online 

Classroom

Small Business Products Online Ordering

Small Business Resource Guide Update

Small Business Tax Workshop Student 

Workbook

Software Developers & Transmitters XML 

Schemas (e-file for Business)

SOI (Statistics of Income) Products & Services

Special Enrollment Examination (SEE)

SS-4 Online EIN Application 

SSA/IRS Reporter Employer Newsletter

SSA Employer Web site - File W-2s 

Electronically

SSA Website

Standards of Practice for Tax Professionals

State Links

State Mandate Info - FTA

Statistics, Tax

Stats - FEDStats.gov

Students, Tax Information for

Subscription Services for Tax Professionals

Talking Tax Forms

TAP - Taxpayer Advocacy Panel

TAS - Taxpayer Advocate Service

Tax Fraud Alerts

Tax Fraud Program

Tax Information for Businesses

Taxpayer Advocate Service

Taxpayer Burden Reduction

Taxpayer Rights

Tax Professionals, Basic Tools for

Tax Professionals, e-file for

Tax Professionals - Resources for

Tax Professionals, Standards of Practice

Tax Professionals, Tax Information for 

Tax Regulations

Tax Scams - How to Recognize & Avoid Them 

Tax Statistics

TaxTalk Today.tv 

Tax Tips 2007

Tax Treaties, International Taxpayer

TCE - Tax Counseling for the Elderly

Technical Publications - IRS e-file

Test Package - e-file, Pub. 1436 (TY 2006) 

PATS

TIGTA - Treasury Inspector General for Tax 

Administration 

Toll-Free Number e-Help Desk 

Topics For Tax Professionals 

Undelivered Refunds

Understanding Taxes 

U.S. Census Bureau - State Data Center

VITA 

What’s Hot in Tax Forms, Pubs, and Other Tax 

Products

What’s Hot - News

Where to File Addresses

Where’s My Refund?

Withholding Calculator

Worldwide Tax Administration Assistance

XML Schemas - e-file for Business

IRS.gov HotLinks

continued from page 29
2007 TAX HINTS

Practitioner’s Guide to the Filing Season

Did you know that the drafts of most major tax forms can be seen on the 

Tax Professionals Page months before they are officially released?

Did you know that you will also find information that will help you work with 

the IRS more effectively, like how to be an Authorized IRS e-file Provider? 

A wealth of information is waiting for you, so: 

Don’t delay, visit today! 

http://www.irs.gov/taxpros/index.html

Visit the Tax Professionals Page at www.irs.gov

The IRS Mission

Provide America’s taxpayers top quality service by helping them 

understand and meet their tax responsibilities and by applying the tax 

law with integrity and fairness to all.

Publication 4437 (Rev.02-07)

Catalog Number 39500F

Department of the Treasury

Internal Revenue Service

www.irs.gov

Communications and Liaison, 

National Public Liaison

National Public Liaison Division, (NPL) under the Chief, Communications 

and Liaison, works to enhance the IRS’s relationships with national stakeholders and federal partners to create opportunities to meet stakeholder 

needs and to resolve issues of mutual concern.

NPL manages:

n The IRS Advisory Council (IRSAC)

n The Information Reporting Program Advisory Committee (IRPAC)

n The IRS Nationwide Tax Forums

n Tax Hints

n Stakeholder Relationships

n Issue Tracking

To contact National Public Liaison, call (202) 622-3359, email npublic-liaison@

irs.gov or click on the Tax Professionals Page for further information: http://

www.irs.gov/taxpros/index.html

2007TAXhints P r a c t i t i o n e r ’ s G u i d e t o t h e F i l i n g S e a s o n

Tax Hints—Practitioner’s Guide 

to the Filing Season is only 

available for download from 

our Website. We cannot provide 

printed copies. 

TAX HINTS STAFF

Program Manager

Jerry Ruelle

Phone: (202) 622-6051

gerard.j.ruelle@irs.gov

National Public Liaison

CL:NPL Room 7563 IR

1111 Constitution Avenue NW

Washington. DC 20224

31