etrent17/irs-articles huggingface dataset:
IR-2008-94, Aug. 7, 2008
WASHINGTON — Individuals and organizations with 25 or more trucks, tractors or other heavy vehicles used on highways now are required to make their excise tax filings with the Internal Revenue Service electronically, rather than by paper.
Form 2290, Heavy Highway Vehicle Use Tax Return, is used to report and pay highway-use excise taxes.   Last year truckers and others filed over 700,000 Forms 2290 and paid over $1 billion in federal highway use taxes.   E-filing of Form 2290 began in August 2007.
Electronic filing streamlines the processing of the Form 2290, is more safe and reliable than paper filing and reduces preparation and processing errors.  Although electronically-filing Form 2290 is not required for taxpayers reporting fewer than 25 vehicles, all taxpayers are encouraged to file their forms electronically.  Most Forms 2290 are due by August 31. 
Another advantage of e-filing Form 2290 is that taxpayers don’t have to wait for a stamped version of the Schedule 1, Schedule of Heavy Highway Vehicles, to be returned by mail because they will almost instantly receive the equivalent of a stamped version electronically.  This means truckers won't have to wait to register their vehicles with the appropriate state authority when obtaining the proper license tags.
To file electronically, taxpayers need to select an approved transmitter/software provider for Form 2290.   More Form 2290 information is available on the IRS Web site. In addition to Form 2290, Form 720, Quarterly Federal Excise Tax Return, and Form 8849, Claim for Refund of Excise Tax, may also be e-filed electronically.
IR-2008-110, Sept. 25, 2008
WASHINGTON — The Internal Revenue Service announced today that it plans to issue guidance regarding technical terminations of a publicly traded partnership (PTP) resulting in multiple short tax years within one calendar year.
Technical terminations of PTPs resulting in multiple short tax years within a calendar year can cause considerable problems for taxpayers. This issue is being worked through the Industry Issue Resolution (IIR) program, and taxpayers who follow the resulting guidance can avoid time consuming audits.
The issue that the IIR program is considering arises when more than 50 percent of a PTP's capital and profits interest are sold or exchanged within a 12-month period, thereby resulting in a technical termination of the partnership under section 708(b) of the Internal Revenue Code. For the calendar year in which it occurs, a technical termination results in the PTP having two short tax years. Consequently, the PTP is required to file a Form 1065, “U.S. Partnership Return of Income,” for each short tax year. This requirement can cause tax problems for the partnership.
The IIR Program provides guidance to help clarify complex tax issues. This program can provide a greater level of certainty for taxpayers, which is important in today's business environment.
Since its inception in 2000, the IIR program has resulted in resolution of many different tax issues cumulatively affecting thousands of taxpayers in many different lines of business. For each issue selected, a multi-functional team gathers and analyzes the relevant facts and recommends guidance.
At any time, business associations and taxpayers may submit business tax issues that they believe could be resolved through the IIR program.  IIR project selection criteria and submission procedures are outlined in Revenue Procedure 2003-36, which is available on the IRS Web site at www.irs.gov.  The IRS reviews submissions at least semi-annually, with the next review to be on submissions received by Aug. 31, 2008.
Attached is detailed information regarding the issues the IRS considered during its latest review of IIR submissions.
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See updated information for Louisiana and Texas victims of Ike.
IR-2008-105, Sept. 12, 2008
WASHINGTON — Taxpayers and tax preparers affected in coming days by Hurricane Ike will have an extra seven days to file corporate tax returns and third-quarter estimated taxes otherwise due on Monday, Sept. 15, 2008, the Internal Revenue Service announced today.
Hurricane Ike is expected to make landfall on the Gulf Coast of Texas, not far from Houston, by early Saturday morning.
Because the storm is falling within one business day of the Sept. 15 due dates, taxpayers directly impacted by the storm will have until midnight Sept. 22 to meet their tax filing obligations without incurring late filing and payment penalties.
The IRS is likely to further postpone that deadline and make further tax relief available following damage assessments by the Federal Emergency Management Agency.
Affected taxpayers can mark paper tax returns with the words “Hurricane Ike.” Taxpayers who e-file their returns can use their software’s “disaster” feature, if available.
For further information, see Tax Relief in Disaster Situations.
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IR-2008-104, Sept. 11, 2008
WASHINGTON — The Internal Revenue Service today announced that it has reached a settlement with Arnold & Porter LLP, which has paid a civil tax shelter promoter penalty. The settlement relates to the Firm’s failure in 2000, 2001 and 2002 to comply with tax shelter registration requirements and its participation in the organization of the following listed transactions that were sold to high-net worth individuals and corporations: Partnership Option Portfolio Securities (POPS), Personal Investment Corporation (PICO), and Family Office Customized Partnerships (FOCUS). The Firm cooperated with the Internal Revenue Service’s examination. The Firm has put into place a comprehensive compliance program designed to assure ongoing adherence to all tax shelter disclosure and list maintenance requirements of the Internal Revenue Code, and related laws.
Arnold & Porter has consented to issuance of this News Release in accordance with Section 6103 of the Internal Revenue Code.
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IR-2008-102, Sept. 8, 2008
WASHINGTON — The Internal Revenue Service and the Treasury Department today issued new regulations that will streamline the approval process for organizations seeking tax-exempt status as publicly supported charities.
The new regulations do away with the so-called advance rulings that granted public charity status for an initial five-year period but required exempt organizations to demonstrate, after the initial period, that they in fact received a substantial part of their support from public sources to receive a final determination letter.
The IRS was able to eliminate the advance rulings process because of the recent redesign of the Form 990, the tax return filed by organizations exempt from federal income tax. 
“The revised Form 990 enhances transparency for exempt organizations and makes it easier for them to show that they are ‘publicly supported’ charities, rather than private foundations,” said IRS Commissioner Doug Shulman.
Private foundations under federal law are subject to more restrictions on the way they operate than publicly supported charities. To apply for exempt status either as a private foundation or as a publicly supported charity, an organization must file a Form 1023, the application for recognition of tax exemption.
Over the years, approximately 95 percent of exempt organizations that received advance rulings were later recognized as publicly supported charities at the end of the five-year period. 
“Given the high ‘recognition’ rate and the redesigned Form 990, it makes sense to eliminate the burdensome advance ruling process” said Lois G. Lerner, Director of the IRS Exempt Organizations division. “Not only will the streamlined process aid exempt organizations, but it will also allow the IRS to redirect staffing to other program areas without compromising compliance.” 
The IRS will use the new Form 990 and other traditional techniques to continue to ensure organizations are complying with the rules for publicly supported charity status on an ongoing basis.
Organizations that have already received an advance ruling under the old regime, but are still in their first five years of existence, can use their advance ruling letter as their final determination letter. In addition to the streamlined approval process, the new regulations include other modifications necessary to implement the redesigned Form 990.  Organizations will begin filing the new Form 990 for their 2008 tax year. 
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IR-2008-101, Sept. 4, 2008
WASHINGTON —  The Internal Revenue Service today announced that it has met its goal of hiring at least 1,000 military veterans this fiscal year, and the agency will continue to focus its recruitment efforts toward this important group.
The IRS’ goal was to hire at least 1,000 military veterans during the fiscal year. In fiscal year 2008, which ends September 30, the agency has hired 1,052 veterans.
“The men and women who served America in the military are highly capable and trained individuals ready to supply valuable skills needed by the IRS, or any employer for that matter. I am pleased the IRS has met its goal. But we are not going to stop there. We will continue to recruit from this talented pool of people who already have demonstrated their leadership, work ethic and dedication,” said IRS Commissioner Doug Shulman.
During his confirmation hearing before the Senate Finance Committee, Shulman pledged to do everything possible to increase the hiring of veterans.
Earlier this year, the IRS Human Capital Office developed Veteran Hiring, Employment and Recruitment Opportunities (V-HERO) to recruit veterans and transitioning military personnel. In this effort, the IRS is partnering with veterans’ organizations, other government agencies and job fairs.
The IRS has developed partnerships with the Paralyzed Veterans of America, the American Legion, the Veterans of Foreign Wars and the Blinded Veterans of America. IRS staff meets often with these organizations’ membership to discuss employment opportunities.
The IRS also is participating in the Defense Department’s Operation War Fighter Program and the Veterans Affairs’ Coming Home to Work initiatives. The programs also provide job opportunities for veterans and transitioning military personnel.
The IRS also has launched a web-based advertising campaign, called America’s Heroes, and a print media advertising campaign to recruit veterans will begin this fall.
IR-2008-126, Oct. 31, 2008
WASHINGTON — The Internal Revenue Service seeks applications for vacancies on the Advisory Committee on Tax Exempt and Government Entities (ACT), which provides the IRS with public comments regarding critical tax administration matters.
ACT members represent employee plans, exempt organizations, tax-exempt bond issuers, Indian Tribal governments, as well as federal, state and local governments.
ACT provides the IRS will regular input regarding the policies and procedures of the agency’s Tax Exempt and Government Entities Division.
Nine vacancies exist for these customer segments:

Employee Plans – two vacancies


Exempt Organizations – two vacancies


Tax Exempt Bonds – two vacancies


Indian Tribal Governments – two vacancies


Federal, State and Local Governments – one vacancy

ACT members are appointed by the Secretary of the Treasury and serve two-year terms, with new terms to begin in June 2009.
Applications can be made by letter or by completing an application on this Web site. All applications should reflect relevant qualifications. A notice in the Federal Register (Oct. 31, 2008) contains more details about ACT and the application process.
Applications will be accepted through Dec.1, 2008.
Applications should be sent to: Steven Pyrek, TE/GE Communications and Liaison Director, Internal Revenue Service, 1111 Constitution Ave., NW (SE:T:CL Penn Bldg.), Washington, DC 20224, or by fax to 202-283-9956 (not a toll-free number).
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IR-2008-124, Oct. 29, 2008
       
WASHINGTON — The Information Reporting Program Advisory Committee (IRPAC) today released the advisory group’s recommendations on a wide range of tax administration issues.
IRPAC was established in 1991 on a Congressional recommendation suggesting the Service consider “creation of an advisory group of representatives from the payer community and practitioners interested in the Information Reporting Program (IRP) to discuss improvements to the system.”
Based on its findings and discussions, IRPAC made more than 60 recommendations on a broad array of issues and concerns Service-wide, key among them:

Masking the Taxpayer Information Number (TIN) on information reporting forms. 


Improving instructions for disaster reporting of postponed annual tax year contributions to IRAs.


Improving the reporting return (Form 990) for tax-exempt organizations. 


Providing guidance for taxpayers receiving Form 1099 or 1042-S0 and Schedules K-1 for the same partnership income.


Providing tax professionals hypothetical situations which describe Circular 230 violations and their corresponding sanction ranges.


Through IRPAC, systemic problems related to information reporting are addressed in a public forum. IRPAC draws its members from the tax professional community and supported by a dedicated staff of IRS professionals.
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IR-2008-122, Oct. 21, 2008
WASHINGTON — The Internal Revenue Service announced the appointments of Christopher Wagner as the commissioner of the agency’s Small Business and Self Employed Division (SB/SE), and Faris Fink as the deputy commissioner.
SB/SE is one of four operating divisions of the IRS, has about 28,000 employees and serves roughly 55 million taxpayers. SB/SE is a major part of IRS enforcement activities, focusing on promoters of abusive tax schemes, high-income non-filers and other serious tax compliance issues.
Wagner was previously the deputy commissioner of SB/SE. He replaces Kathy Petronchak, who retired in August 2008. Fink was previously director for the Midwest Area, Examination, which is responsible for all examination matters in 10 states.
Wagner has also previously served as the deputy commissioner of Tax Exempt and Government Entities Division, which is another division of IRS. He has also served as deputy National Taxpayer Advocate for the Taxpayer Advocate Service.
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IR-2008-121, Oct. 21, 2008
WASHINGTON — The Internal Revenue Service today announced a strong turnout by corporate taxpayers seeking to settle Lease-In/Lease-Out (LILO) and Sale-in/Sale-Out (SILO) transactions.
More than two-thirds of corporations that received the LILO/SILO settlement offer have decided to accept the offer to participate in the initiative. Those accepting the offer had more than 80 percent of the total number of LILO and SILO leases. These leases involve about 80 percent of the dollars in dispute and will require the corporations to concede billions of dollars in tax deferrals. Participation in the settlement remains preliminary until final closing agreements are reached between the individual corporate taxpayers and the IRS.
“This broad response from some of the nation’s largest corporations reflects the success of the IRS campaign against aggressive tax shelters,” said IRS Commissioner Doug Shulman. “Corporations that have chosen to settle have done the right thing by putting this behind them. For those who failed to take us up on this offer, we will vigorously pursue their cases.”
LILOs and SILOs involve complex arrangements in which some of the nation’s largest corporations purportedly leased or purchased large assets, such as foreign rail systems or sewer systems, and immediately leased them back to their original owners.  Under these arrangements, corporate taxpayers put off recognition of current income for tax purposes for many years.
The IRS designated LILOs as listed transactions in 2000.  SILOs were designated in 2005.  Since then, the government has gone to court and successfully challenged these transactions as having no purpose other than creating tax benefits.  Prior to the settlement initiatives, there were hundreds of these transactions that had yet to be fully examined or adjudicated fully.  The large percentage of eligible corporations electing to participate in the settlement offer substantially lessens the examination inventory.
The LILO/SILO settlement initiative is the latest in a series of efforts to detect, deter and resolve individual and corporate tax shelters. Over the past eight years, the IRS has vigorously attacked tax shelters through examination, litigation and administrative guidance.  Where appropriate, settlement offers have been a useful tax administration tool.
“In the end, all American taxpayers benefit because this strong response to a settlement offer frees up IRS staff to actively pursue other compliance priorities,” Shulman said.
Under the terms of the settlement offer, corporations that elected to participate have a number of conditions to satisfy to reach a final closing agreement with the IRS.  The IRS expects to finalize most of the closing agreements within several months.
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IR-2008-120, Oct. 17, 2008
WASHINGTON — Senior law professors from The George Washington University Law School will join with officials from the Treasury Department , the IRS, a representative from the OECD and representatives of the tax authorities of foreign governments to discuss significant tax compliance and treaty issues at the 21st Annual Institute on Current Issues in International Taxation.
The two-day program will be held on Dec. 8 and 9, 2008, at the J.W. Marriott Hotel located at 1331 Pennsylvania Avenue, Washington, D.C.
Those interested in attending can find out more about the topics, speakers and registration from the GWU Law School.
The program is designed primarily for corporate tax executives responsible for international tax matters, tax counsels of domestic and foreign multinational corporations, lawyers working in the international tax area and accounting firm partners and managers working in the international tax area.
The conference has been arranged to provide opportunities for lively exchanges between members on the panels who represent government, academia and the private sector and to offer question and answer periods with members of the audience. It will include the perennially popular ‘ask the IRS’ session where IRS officials respond to questions from the audience.
The conference is further described in Announcement 2008-94PDF, attached, which will appear in Internal Revenue Bulletin 2008-42 on Monday, Oct. 20.
 
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IR-2008-119, Oct. 17, 2008
WASHINGTON — The Internal Revenue Service’s next Tax Talk Today Web cast on Tuesday, Nov. 4, at 2 p.m. focuses on “Preparing for the New Form 990.”
The IRS has redesigned Form 990 to reflect significant changes that have taken place in the tax law and the tax-exempt sector. Organizations and their preparers will want to tune in to learn about the new form and instructions so that they fully understand how the changes affect the filing process.
The new form will be filed in 2009 for the 2008 tax year. Organizations may also want to reassess if their internal systems need to be updated to reflect the new reporting requirements. The IRS has a special Web page on the Form 990 redesign and background documents.
Moderated by Les Witmer, panelists for November’s program are: Eve Rose Borenstein, Exempt Organizations Tax Attorney, Borenstein and McVeigh Law Offices (BAM!); Stephen Clarke, Tax Law Specialist, Rulings and Agreements, Exempt Organizations, Internal Revenue Service; Julie L. Floch, CPA, Eisner Director of Not-For-Profit Services; and Ronald J. Schultz, Senior Technical Advisor to the Commissioner, Tax Exempt and Government Entities Division, Internal Revenue Service.
Tax Talk Today is a Web cast aimed at educating tax and payroll professionals on the most current and complex tax issues. Tax professionals are encouraged to watch and submit questions. To access the Web cast at no charge, viewers can register online.
Tax professionals in need of continuing education credits are eligible to receive one CPE credit by viewing the Nov. 4 Web cast and purchasing the CE credit. 
Archived shows are available on the site also at www.taxtalktoday.com.
The next show is on Tuesday, Jan. 13, 2009, when the topic will be “Getting Ready for Filing Season – 2009 (Individual and Business).” Two continuing education credits will be offered for this special 100-minute Web cast.
 
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IR-2008-117, Oct. 16, 2008
WASHINGTON — For 2009, personal exemptions and standard deductions will rise and tax brackets will widen because of inflation adjustments announced today by the Internal Revenue Service.
By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being adjusted for 2009. Key changes affecting 2009 returns, filed by most taxpayers in early 2010, include the following:

The value of each personal and dependency exemption, available to most taxpayers, is $3,650, up $150 from 2008.
	 


The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
	 


Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008.
	 


The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $5,028, up from $4,824. The income limit for the credit for joint return filers with two or more children is $43,415, up from $41,646.
	 


The annual gift exclusion rises to $13,000, up from $12,000 in 2008.

Information about the pension and retirement plan-related changes can be found in IR-2008-118. Other inflation adjustments are described in Revenue Procedure 2008-66.PDF
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IR-2008-116, October 16, 2008
WASHINGTON ― The Internal Revenue Service has announced proposed amendments to improve the Qualified Intermediary (QI) program for certain foreign financial institutions serving taxpayers with accounts outside of the United States. 
A QI is a foreign financial institution that has agreed with the IRS to undertake certain U.S. withholding and reporting responsibilities and has agreed to audits by an external auditor.
At a hearing before a Senate Subcommittee in July, IRS Commissioner Doug Shulman pledged that the rules of the QI program would be revised to more effectively deter efforts to avoid U.S. withholding rules.    
“This is an important program, and we cannot tolerate anyone abusing or skirting the requirements,” Shulman said. “This proposal lays out a strong set of actions in our ongoing effort to strengthen the Qualified Intermediary program.”
Under the proposed changes, financial institutions that are QIs must provide early notification of material failure of internal controls, must improve evaluation of risk of circumvention of U.S. taxation by U.S. persons, and must include audit oversight by a U.S. auditor.
The IRS and Treasury Department request comments regarding the proposed amendments to the QI Agreement and the proposed amendments to the QI Audit Guidance.
Comments should be submitted on or before Feb. 28, 2009, and should include a reference to Announcement 2008-98.  Send submissions to CC:PA:LPD:PR (Announcement  2008-98), Room 5203, Internal Revenue Service, P.O. Box 78604, Ben Franklin Station, Washington, DC 20044.
Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (Announcement 2008-98), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC 20044, or sent electronically, via the following e-mail address:  notice.comments@irscounsel.treas.gov. 
Please include “Announcement 2008-98” in the subject line of any electronic communication.  All material submitted will be available for public inspection and copying.
 Related Items:
Announcement 2008-98PDF, Proposed Amendments to Qualified Intermediary Withholding Agreements
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IR-2008-115, Oct. 10, 2008
WASHINGTON — The Internal Revenue Service today released a notice designed to help eligible homeowners who received federal reimbursement grants stemming from Hurricanes Katrina, Rita or Wilma take advantage of a new tax provision.
Notice 2008-95PDF provides guidelines to homeowners who received these grants, including the Louisiana Road Home Grants and the Mississippi Development Authority Hurricane Katrina Homeowner Grants.
The Housing and Economic Recovery Act, enacted this summer, included the new provision, aimed at helping grant recipients who previously claimed hurricane-related disaster-loss deductions on their main home. The new law gives affected homeowners the option of adjusting previously claimed deductions by treating their federal reimbursement grants as reimbursement for the losses they suffered on their main home from Hurricanes Katrina, Rita or Wilma.
Before this change, homeowners who claimed casualty loss deductions and received grants in a later tax year as reimbursement for the loss were required by law to pay tax on part or all of the grant to compensate for the tax benefit of the prior deduction. While individual circumstances varied, this meant that some taxpayers ended up paying more tax on the grant than they saved by claiming the deduction.
The notice explains how eligible taxpayers can amend prior-year returns to reduce the casualty loss deduction by the amount of the grant, and explains that taxpayers have one year to pay back any resulting tax due, penalty-free and interest-free. To qualify for this relief, these amended returns must be filed by July 30, 2009, and the entire resulting tax due paid by July 30, 2010, in most cases. The notice also provides special instructions for those taxpayers who have already filed an amended return.
Taxpayers should write the words, “Hurricane Grant Relief” in dark, bold letters at the top of their amended return, Form 1040XPDF, and mail it to: Internal Revenue Service Center, Austin, TX 73301-0255. Amended returns cannot be filed electronically.
The IRS cautioned that, although filing an amended return may be a good option for many, it won’t necessarily be the right choice for everyone. The agency urges affected taxpayers and their representatives to consider carefully which option is best under their particular circumstances.
IR-2008-114, Oct. 8, 2008
WASHINGTON — Only days remain until the Oct. 15 deadline for retirees and disabled veterans to file an income tax return that will allow them to receive an economic stimulus payment this year.
The Internal Revenue Service also reminds retirees and disabled veterans that the money received from the economic stimulus payment will generally have no impact on eligible for Medicare, Medicaid or other benefits. In addition, the payment generally will not be counted as income or require the recipients to file future income tax returns.
“This really is the last chance for people to still get their stimulus payments this year. Don’t let the economic stimulus payment pass you by,” said IRS Commissioner Doug Shulman.
The Internal Revenue Service’s latest estimate indicates as many as 4.3 million recipients of certain Social Security and Veterans Affairs benefits who may be eligible for the economic stimulus payment but who have not yet claimed their stimulus payments. People must file an income tax return in order to receive an economic stimulus payment.
For people who have no tax liability and who have no requirement to file a tax return because their income is too low or nontaxable there is a stimulus payment of up to $300 ($600 for married couples) plus the $300 payment for each qualifying child. However, people in this situation must have at least $3,000 in qualifying income from any combination of earned income, nontaxable combat, and certain Social Security, Veterans Affairs and Railroad Retirement benefits.
Qualifying income from Social Security includes retirement, disability and survivor benefits. Supplemental Security Income is not a qualifying income. Qualifying income from Veterans Affairs includes disability compensation, disability pension and survivor benefits. Qualifying Railroad Retirement Board benefits include the social security equivalent portion of Tier I benefits.
Also, those who are dependents or eligible to be dependents on another’s tax return are not eligible. People must have a valid Social Security Number unless their spouse is a member of the military.
Search for the IRS Taxpayer Assistance Center closest to you at local IRS offices.
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IR-2008-113, Oct. 6, 2008
WASHINGTON — The Internal Revenue Service has acknowledged the certifications by manufacturers that certain advanced lean-burn technology vehicles qualify for the alternative motor vehicle tax credit.
Before, only hybrid vehicles, fuel cell vehicles and alternative fuel vehicles had been certified, but now certain advanced lean-burn technology vehicles, which generally run on diesel fuel have been certified. These vehicles are passenger cars or light trucks with an internal combustion engine designed to operate primarily using more air than is necessary for complete combustion of the fuel. The vehicles also must incorporate direct fuel injection technology and achieve at least 125 percent of the 2002 model year city fuel economy rating. 
Available credit amounts may vary and include a base credit amount based on fuel economy compared to the 2002 model year city fuel economy rating and an additional amount based on the vehicle’s lifetime fuel savings. For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale. 
The alternative motor vehicle tax credit was enacted by the Energy Policy Act of 2005 under Internal Revenue Code Section 30B and includes the advanced lean-burn technology motor vehicle credit and the qualified hybrid motor vehicle credit.
There is a limitation on the number of qualified hybrid and advanced lean-burn technology vehicles eligible for credit. The phase-out period begins when a manufacturer sells 60,000 qualified hybrid and advanced lean-burn technology vehicles.
Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th hybrid passenger automobile or light truck or advanced lean-burn technology motor vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
The qualifying vehicles and their credit amounts are:
2009 Volkswagen Jetta 2.0L TDI Sedan manual or automatic — $1,300
2009 Volkswagen Jetta 2.0L TDI SportWagen manual or automatic — $1,300
Mercedes GL 320 BLUE TEC — $1,800
Mercedes R 320 Blue TEC — $1,550
Mercedes ML 320 Blue TEC — $900
Related Item:
Alternative Motor Vehicle Credit
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IR-2008-112, Oct. 1, 2008
WASHINGTON — Approximately four hundred U.S. colleges and universities will begin receiving compliance questionnaires from the Internal Revenue Service in the next few days as part of the agency’s focused effort to study key areas in the tax-exempt community.  The college and university questionnaire will focus on unrelated business income, endowments and executive compensation practices.  The questionnaires are being sent to a cross-section of small, mid-sized and large private and public four-year colleges and institutions.
Private nonprofit universities are generally exempt from tax under Internal Revenue Code section 501(c)(3) and like state universities are subject to unrelated business income tax. 
“This effort reflects our work to build a better understanding of the largest, most complex organizations in the tax-exempt sector,” said Doug Shulman, IRS commissioner.  “The information gathered will help us identify issues and areas that may need more outreach and education or further scrutiny.”
Among other things, the questionnaire will gather information from the schools about how they report revenues and expenses from their trade or business activities, classify their activities as exempt or taxable activities, and calculate and report income or losses on taxable activities.  The questionnaire also will gather information regarding how the organization invests and uses its endowment funds and determines compensation of certain highly paid individuals.
The IRS said it expects to receive most of the responses within the next several months, analyze the results of the compliance questionnaire and conduct examinations of a sample of the organizations.  The IRS said it expects to issue a report on the project in 2009.
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IR-2008-111, Oct. 1, 2008
WASHINGTON — The Internal Revenue Service has announced in Revenue Ruling 2008-47 that interest rates for the calendar quarter beginning Oct. 1, 2008 will increase by one percentage point.
The new rates are:

Six (6) percent for overpayments [five (5) in the case of a corporation];


Six (6) percent for underpayments;


Eight (8) percent for large corporate underpayments; and


Three and one-half (3.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during July 2008.
Revenue Ruling 2008-47PDF, announced the new rates and was published in Internal Revenue Bulletin 2008-39 on September 29, 2008.
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IR-2008-133, Nov. 25, 2008
WASHINGTON — Taxpayers who make qualifying cash contributions for disaster relief efforts in the Midwest could benefit from a recently passed law that suspends the percentage-of-income limits that would normally apply when taxpayers deduct the contributions on their 2008 federal tax returns.
Under the Heartland Disaster Tax Relief Act, an individual taxpayer who itemizes deductions may choose to deduct qualifying cash contributions up to 100 percent of his or her adjusted gross income, reduced by deductions for other charitable contributions. Similarly, an electing corporation may deduct qualifying cash contributions up to 100 percent of its taxable income, reduced by deductions for other charitable contributions.
Cash contributions qualify for this special treatment if they are made to a public charity for disaster relief efforts related to certain areas in Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska or Wisconsin. The areas must have been declared federal disaster areas on or after May 20 and before Aug. 1 of this year as a result of severe storms, tornados or flooding, and the areas must have been designated to receive individual assistance from the federal government because of the damage resulting from the disasters.
The contributions must be made no later than Dec. 31, 2008. “Cash” includes payments made by check or credit card. Qualifying cash contributions do not include payments to a supporting organization as described in section 509(a)(3) or for the establishment of a new, or maintenance of an existing, donor-advised fund.
Qualifying cash contributions of more than the amount allowed as a deduction can be carried over and deducted in succeeding tax years, subject to the normal limits. To substantiate the deduction, a taxpayer must obtain from the charity a written acknowledgment that the contribution was or will be used for relief efforts related to one or more of the Midwestern disaster areas.
In addition, deductions by individuals for qualifying contributions are not treated as itemized deductions for purposes of the overall limitation on itemized deductions. This means that, for taxpayers with higher adjusted gross incomes, the deduction for these qualifying contributions is not limited the way other itemized deductions are limited.
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IR-2008-131, Nov. 24, 2008
WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55 cents per mile for business miles driven


24 cents per mile driven for medical or moving purposes


14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2008-72PDF contains additional information on these standard mileage rates.
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IR-2008-130, Nov. 19, 2008
Washington — The Internal Revenue Service Advisory Council (IRSAC) today released its recommendations on a wide range of tax administration issues at the 2008 public meeting in Washington, DC.
IRSAC was established in 1953 as the Commissioner’s Advisory Group (CAG), a national policy and issue advisory committee.  Renamed in 1998 to reflect the agency-wide scope of its focus as an advisory body, the primary purpose of IRSAC is to provide an organized public forum for representatives of the public and senior IRS executives to discuss relevant tax administration issues.
Based on its findings and discussions, IRSAC made more than 70 recommendations on a broad array of issues and concerns Service-wide, including:
Compliance Risk Management,
Transparency,
Income Tax Gap Analyses,
Communications and Technological Enhancements,
Preparer Requirements, and
Improving Employment Tax Reporting and Worker Classification Compliance.
Through IRSAC, systemic problems relating to existing tax policy or emerging tax administration issues are addressed in a public forum.  IRSAC draws its members from the tax professional community and from academia. The council receives full-time support from the IRS office of National Public Liaison.
The recommendations are available on IRS.gov.
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IR-2008-129, Nov. 17, 2008
WASHINGTON — Internal Revenue Service Commissioner Douglas Shulman today announced the appointment of Terence (Terry) V. Milholland as the agency’s new Chief Technology Officer (CTO).
As the CTO, Milholland will be responsible for all aspects of the systems that operate the nation’s tax infrastructure. He will oversee a multi-billon dollar budget and the 7,000-person organization that maintains over 400 systems that enable the processing of over 200 million tax returns each year. The CTO position will report directly to the Deputy Commissioner Operations Support, with the entire Modernization and Information Technology Services division, including its current CIO, reporting to him.
“Terry has a proven track record of delivery in large and complex technology environments,” Shulman said. “His experience and leadership will be a great complement to the critical work that the talented IRS technology team performs every day on behalf of the American people.”
Milholland brings almost 30 years of technology leadership to the IRS. Most recently, he was the executive vice president and CTO for Visa International. Prior to that, he was CIO and CTO for Electronic Data Systems Corporation and before that CIO for The Boeing Company. 
Milholland received a Bachelor of Science degree in physics from the University of Maryland and a Master of Science degree in computer science from George Washington University. 
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IR-2008-127, Nov. 10, 2008
WASHINGTON — The Internal Revenue Service has awarded almost $8 million in matching grants to support its Volunteer Income Tax Assistance program.
Under the VITA Grant Program, the IRS awarded matching grants to 111 organizations that plan to offer free tax preparation sites in 2009. The sites will be located in all 50 states and the District of Columbia.
“This is the first time we’ve been able to provide matching grants to support the VITA program. These grants can be used to expand free services to some of the millions of taxpayers served each year by these VITA sites and their volunteer tax preparers,” said Richard E. Byrd, Jr., IRS Commissioner, Wage and Investment Operating Division.
The funds will be used to:

Enable VITA programs to extend services to underserved populations and hardest to reach areas, both urban and non-urban


Increase the capacity to file returns electronically


Heighten quality control


Enhance training of volunteers


Significantly improve the accuracy of returns prepared by the VITA sites

There was an overwhelming response to the first-ever VITA grant with 379 organizations submitting applications requesting more than $30 million in matching funds.
VITA partners are organizations that provide free federal tax return preparation and electronic filing for low to moderate income individuals.  For tax year 2008, individuals and families with an adjusted gross income of $42,000 are eligible for assistance.
The VITA program has enjoyed tremendous support in the years since its creation in 1969.  Along with Tax Counseling for the Elderly, another volunteer return preparation program sponsored by IRS for older individuals, more than 3 million tax returns and economic stimulus payment requests were prepared and filed in 2008 at nearly 12,000 locations nationwide.
Questions may be addressed to the Grant Program at 404.338.7894 (not a toll-free call) or by e-mail at Grant.Program.Office@irs.gov.
Related Item:

2009 VITA Grant RecipientsPDF
IR-2008-144, Dec. 19, 2008
 
WASHINGTON — The Internal Revenue Service today announced the selection of seven new members for the Information Reporting Program Advisory Committee. The appointees will join 27 returning members who are in the second year or third year of a three-year term.
“IRPAC provides an important role in the tax administration process,” said IRS Commissioner Doug Shulman. “IRPAC members provide thoughtful perspectives and recommendations on many information reporting issues that help us make the right decisions for taxpayers.”
The committee will hold its first meeting on Jan. 27, 2009. The following people have been appointed to serve on the committee:
S. Douglas Borisky is counsel with Cleary Gottlieb Steen & Hamilton LLP in New York, N.Y.
	 
Elizabeth T. Dold is a principal attorney in the Groom Law Group in Washington, D.C.
	 
Lisa Germano is the president, general counsel and co-founder of the Actuarial Benefits & Design Company in Midlothian, Va.
	 
Joan M. Hagen is Managing Director, Financial Management Services, and University Chief Accountant for Indiana University in Bloomington, Ind. 
	 
Jerri LS Langer is a founding member of Cokala Tax Information Reporting Solutions in Ann Arbor, Mich. 
	 
Emily L. Lindsay is currently teaching financial accounting and managerial accounting at American University, Kogod School of Business, as Executive-in-Residence in Washington, D.C. 
	 
Kathy M. Ploch is a tax manager for Zientek & Company, PC, in Houston, Texas..
The IRPAC was established in 1991 and focuses on information reporting issues. The committee’s purpose is to provide an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.
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March 5, 2010 — The last IRS-sponsored Tax Talk Today program aired on Oct. 6, 2009.
IR-2008-143, Dec. 19, 2008
WASHINGTON — The Internal Revenue Service’s next Tax Talk Today program, “Getting Ready for Filing Season 2009 — Individual and Business,” will be Tuesday, Jan. 13, at 2 p.m. This special, 100-minute program will give tax preparers a head start on the 2009 filing season.
The extended program will discuss updates to tax forms, the latest tax law changes and IRS processing issues to assist tax preparers. Panelists will offer tips on how to avoid common errors that can cost preparers and their clients time and money. Two continuing education credits will be offered for January’s program.
Panelists include: Nancy Aiello, Submission Processing Director, IRS, Andover; Susan A. Hansen, Submission Processing, IRS, Cincinnati; Virginia Tarris, IRS, Supervisory Tax Law Specialist, Tax Forms and Publications; William Woolf, IRS, Tax Law Specialist, Tax Forms and Publications; Teddy Prioleau, EA, Baltimore, Md., and Francis X. Degen, EA, owner of Francis X. Degen, EA, in Setauket, N.Y. The moderator is Les Witmer.
Tax Talk Today is a webcast aimed at educating tax and payroll professionals on the most current and complex tax issues. Tax professionals are encouraged to watch and submit questions. To access the webcast at no charge, viewers can register online at taxtalktoday.com.
Subscribers can view live webcasts as well as archived programs, listen to audio podcasts or read show transcripts. Subscribers also can order audio and video recordings. A transcript and audio of the Nov. 4, 2008 webcast, “Preparing for the New Form 990," is now available at Tax Talk Today’s archives.
The next Tax Talk Today program, “Surviving the IRS Audit,” is scheduled for Tuesday, March 10.
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