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IR-2011-54, May 17, 2011
WASHINGTON ― During Small Business Week, May 16-20, the Internal Revenue Service encourages those who are self-employed or own a small business to take advantage of certain tax benefits and learn about IRS resources that can help them meet their federal tax obligations.
“When you’re running a business, you don’t need to be a tax expert, too. But you do need some basics to stay tax compliant so your business can thrive,” said Faris Fink, IRS Commissioner for the Small Business and Self-Employed Division. “There are many tax credits and deductions currently available. So now is a good time to learn about the tools and services the IRS offers.”
The Small Business Tax Center (IRS.gov/smallbiz) has links to some of the most useful tools the IRS offers, including the Virtual Small Business Tax Workshop, a downloadable tax calendar, common forms and their instructions and help on everything from how to get an Employer Identification Number (EIN) online to how to engage with the IRS in the event of an audit.
The IRS is offering a free, 30-minute webinar called “Small Business Advantage” to show small business owners what’s available to them. The webinar is scheduled for Wednesday, May 18 at 2 p.m. ET. To register and watch, visit IRS.gov and type “webinars” into the search box.
Health Care Tax Credit, Accelerated Write-Offs
The IRS today also urged small businesses to take advantage of tax-saving opportunities available when they file their 2011 returns. Two key provisions that business owners should consider are the small business health care tax credit and faster write-offs on certain capital expenditures.
The small business health care tax credit aims to help small employers provide health insurance coverage to their employees. It is specifically intended for those who employ low- and moderate-income workers. The credit is designed to encourage both small businesses and small tax-exempt organizations to offer health insurance coverage for the first time or maintain coverage they already have. More information about the credit is available on the Affordable Care Act page on IRS.gov.
Many small businesses that invest in new property and equipment can deduct most or all of these purchases on their 2011 returns. Normally, businesses recover capital investments through annual depreciation deductions spread over several years. But many small businesses can get these deductions sooner during 2011. Claim these tax benefits on Form 4562PDF. Special rules and limitations apply. Details can be found in the instructions to Form 4562PDF, Publication 946PDF and Revenue Procedure 2011-26PDF.
IR-2011-53, May 16, 2011
WASHINGTON — The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 2011, will remain the same as in the previous quarter. The rates will be:  
four (4) percent for overpayments [three (3) percent in the case of a corporation];
four (4) percent for underpayments;
six (6) percent for large corporate underpayments; and
one and one-half (1.5) 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 during April 2011 to take effect May 1, 2011, based on daily compounding.
Revenue Ruling 2011-12PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2011-26, dated June 27, 2011.
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IR-2011-51, May 3, 2011
WASHINGTON — The IRS invites enrolled agents, certified public accountants, certified financial planners and other tax professionals to register early for one of the six IRS Nationwide Tax Forums being held this summer. Those who take advantage of the early registration save $129.
The forums are three-day events presented by IRS experts and partner organizations that offer up-to-date information on federal and state tax issues and the opportunity to receive up to 18 continuing education credits. In a 2010 survey, the forums received a 95 percent satisfaction rate.
2011 Registration:
The enrollment cost for those who register early is $206 per person, a savings of over 38 percent off the late or on-site registration price of $335. The early registration period closes two weeks prior to each forum.
To view the cities and dates or to register for a forum visit http://www.irstaxforum.com.
Members of participating associations qualify for additionally discounted enrollment costs if they meet the pre-registration deadlines above. Members should contact their association directly for more information.
This year, 40 different topics are being covered, each qualifying for continuing professional education credit for enrolled agents and certified public accountants.  Additionally, seminars may qualify for continuing education credit for certified financial planners, pending review and acceptance by the Certified Financial Planner Board.
In addition to the seminars and workshops, the forums feature a two-day expo designed with the tax professional in mind, with representatives from the IRS and other tax, financial, and business communities offering their products and services.  Attendees can also visit the IRS Preparer Services Room and learn about the agency’s e-Services to benefit their business, offer comments on various initiatives and programs, or participate on a focus group session.
Finally, attendees are invited to bring their most challenging unresolved case to the Case Resolution Room.  Participants are encouraged to bring the case resolution data sheet completed to speed the process faster.  Last year, a total of 1235 cases had a 97 percent on-site resolution rate. 
Courses based on taped seminars from previous forums may be taken for CPE credit or audited online at www.irstaxforumsonline.com.
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IR-2011-50, May 3, 2011
WASHINGTON — The Treasury Department and Internal Revenue Service today requested public comment on issues relating to the shared responsibility provisions included in the Affordable Care Act that will apply to certain employers starting in 2014.
Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment.  The law specifically exempts small firms that have fewer than 50 full-time employees. This provision takes effect in 2014.
Notice 2011-36, posted today on IRS.gov, solicits public input and comment on several issues that will be the subject of future proposed guidance as Treasury and the IRS work to provide information to employers on how to comply with the shared responsibility provisions.  In particular, the notice requests comment on possible approaches employers could use to determine who is a full-time employee. 
Today’s request for comment is designed to ensure that Treasury and IRS continue to receive broad input from stakeholders on how best to implement the shared responsibility provisions in a way that is workable and administrable for employers, allowing them flexibility and minimizing  burdens.  Employers have asked for guidance on this provision, and a number of stakeholder groups have approached Treasury and IRS with information and initial suggestions, which have been taken into account in developing today’s notice.  By soliciting comments and feedback now, Treasury and IRS are giving all interested parties the opportunity for input before proposed regulations are issued at a later date.
Consistent with the coordinated approach the Departments of Treasury, Labor, and Health and Human Services are taking in developing the regulations and other guidance under the Affordable Care Act, the notice also solicits input on how the three Departments should interpret and apply the Act’s provisions limiting the ability of plans and issuers to impose a waiting period for health coverage of longer than 90 days starting in 2014.  In addition, the notice invites comment on how guidance under the 90-day provisions should be coordinated with the rules Treasury and IRS will propose regarding the shared responsibility provisions.
There are three ways to submit comments.
E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-36” in the subject line.
Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-36), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Hand deliver to: CC:PA:LPD:PR (Notice 2011-36), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline for comments is June 17, 2011.  
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IR-2011-49, May 2, 2011
WASHINGTON — The Internal Revenue Service today announced it is accepting applications for the Internal Revenue Service Advisory Council (IRSAC), which provides a public forum for IRS officials and representatives of the public to discuss relevant issues regarding federal tax administration.
“The feedback and recommendations from IRSAC members have and will continue to assist the IRS with a wide range of strategic initiatives,” said IRS Commissioner Doug Shulman.
The IRSAC is comprised of up to 35 members, who are appointed to three-year terms by the Commissioner. Applications are currently being accepted for roughly a dozen appointments that will begin in January 2012. Applications will be accepted from May 2 to June 17.
The IRSAC submits an annual report to the IRS commissioner at a public meeting in the fall.
An individual or an organization can nominate a qualified person for the IRSAC. Members of the council have diverse backgrounds. Membership is balanced to represent the tax professional community, including but not limited to: tax attorneys, certified public accountants, enrolled agents, appraisers, and the business community. Federally registered lobbyists cannot be members of IRSAC.
Nominations should describe and document the proposed member’s qualification for IRSAC membership, including the applicant’s knowledge of Circular 230 regulations and the applicant’s past and current affiliations. Nominations should also describe the nominee’s dealings with the particular segment or segments of the tax community that the applicant wishes to represent on the council.
The application and other information are available on the Tax Professionals page on this website. Questions about the application process can be sent to the following e-mail address: *public_liaison@irs.gov.
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IR-2011-69, June 23, 2011
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2011-40PDF on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.Mileage Rate Changes


Purpose


Rates 1/1 through 6/30/11 


  Rates 7/1 through 12/31/11 


Business


51


55.5


  Medical/Moving    


19


23.5


Charitable


14


14


 
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IR-2011-68, June 15, 2011
WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) today released its 2011 Annual Report to Congress during a public meeting. The report discusses five groups of recommendations on issues in electronic tax administration.
The report includes recommendations on the following topics:
standards for security and accuracy for the electronic tax community
1040 Modernized e-file (MeF) platform
barriers to e-filing employment tax returns
tax filing simplification
collaboration and partnership with the electronic filing community
“ETAAC provides valuable assistance to the IRS in its efforts to improve the taxpayer experience with e-file and the Internet,” said Cecille M. Jones, acting director of Electronic Tax Administration. “The IRS will carefully consider all of ETAAC’s recommendations as the agency formulates its strategy for electronic tax administration going forward.”
The 14-member committee provides an organized public forum for discussion of electronic tax administration issues and the overriding goal that paperless filing should be the preferred and most-convenient method of filing tax and information returns.
"ETAAC is committed to helping the IRS provide the next generation of electronic services for taxpayers, tax preparers and others," said Phil Poirier, ETAAC Chairman. "ETAAC looks forward to working with the IRS to advance the key areas discussed in this year’s report.”
ETAAC submits an annual progress report to Congress each June. The IRS Electronic Tax Administration created the ETAAC in 1998 as required by the IRS Restructuring and Reform Act of 1998. The report is the result of research and analysis as well as meetings with senior IRS executives.
Public comments on the report may be sent to etaac@irs.gov .
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IR-2011-67, June 14, 2011
WASHINGTON — The Internal Revenue Service today announced that the spring 2011 issue of the Statistics of Income Bulletin is now available, with this issue featuring information on high-income individual income tax returns filed for tax year 2008.
Taxpayers filed more than 4.3 million returns with adjusted gross income of $200,000 or more for tax year 2008, which represents 3 percent of all individual returns filed for 2008.
The Statistics of Income (SOI) Division of the IRS produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue of the SOI Bulletin also includes articles on the following:
Individual income tax data, by age of taxpayer. For tax year 2007, individual income taxpayers filed approximately 143 million returns.  Of those, 27.1 million were filed by taxpayers who were ages 35 to 44, the most returns filed by any age group in that year.
Individual income tax data, by state. Individual income taxpayers from Connecticut reported the highest average adjusted gross income (AGI) in the United States for tax year 2007.  Connecticut was the only state for which average AGI exceeded $90,000.  
Foreign recipients of U.S. income. For tax year 2008, U.S. source income payments to foreign persons totaled $659.7 billion.   Eight countries, including the United Kingdom, Cayman Islands, Germany, Japan, Switzerland, Canada, France and the Netherlands, accounted for almost 67 percent of all income paid to foreign persons. 
International boycott reports. For tax year 2008, 138 U.S. entities received about 3,700 requests to participate in boycotts unsanctioned by the United States.
Gift tax returns. Individuals filed almost 235,000 federal gift tax returns to report $40.2 billion in assets transferred during 2008.
The Statistics of Income Bulletin is available for download at IRS.gov/taxstats.  Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about this data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.
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IR-2011-65, June 10, 2011
WASHINGTON –– The Internal Revenue Service has awarded nearly $10 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2011 grant cycle (Jan. 1, 2011, through Dec. 31, 2011).
LITCs are organizations that represent low-income taxpayers in federal tax controversies with the IRS for free or for a nominal charge and/or provide tax education and outreach for taxpayers who speak English as a second language.
Through the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations. For the 2011 grant cycle, the IRS awarded LITC grants to 165 organizations.
The LITC grant program is a federal program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Nina E. Olson. LITCs and their employees and volunteers, however operate independently of the federal government.
Questions about the LITC Program can be addressed to the LITC Program Office at (202) 622-4711 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov. IRS Publication 4134, Low Income Taxpayer Clinic List, provides information on LITCs in each geographic area and the languages each clinic serves in addition to English. It is available at IRS.gov or at local IRS offices.
Organizations Receiving LITC Grants for the 2011 Cycle are included in a separate filePDF.
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IR-2011-64, June 9, 2011
WASHINGTON — IRS e-file has reached a major milestone as it passed the one billion mark for individual tax returns processed safely and securely since 1986.
The Internal Revenue Service’s electronic filing program started as a pilot project in 1986 and became available nationally in 1990. Prior to the April 18 deadline, IRS e-file passed another high point as more than 100 million individual tax returns were e-filed during the 2011 filing season.
“IRS e-file is a good deal for taxpayers,” said IRS Commissioner Doug Shulman. "The one billion milestone means e-file has delivered real services to taxpayers, including faster refunds and more accurate tax returns. And because an e-file return costs us 20 times less to process than a paper return, this program means a more efficient government that has saved America’s taxpayers hundreds of millions of dollars.”
IRS e-file is an electronic transmission system that sends tax returns to IRS processing centers. Taxpayers can e-file through their tax preparers, through commercial software they use to prepare their own returns or through Free File, the free tax software and e-file program offered through IRS.gov.
Congress originally set an 80 percent goal for the electronic filing of federal tax and information returns back in 1998. E-file is now very close to that mark. Currently, more than 79 percent of taxpayers have used e-file to submit their tax returns so far this year.
In 2009, Congress passed another provision requiring tax preparers who file 10 or more tax returns to use e-file. IRS e-file has been steadily growing, but the new law, which the IRS is phasing in, brought a surge of e-filed returns for 2011. For this year, tax preparers who filed 100 or more returns were required to e-file.
For 2012, tax preparers who file 11 or more returns will be required to e-file. The requirement should put the IRS within reach of its goal of 80 percent e-file rate for individual tax returns.
For more on e-file, see FS-2011-10, IRS E-File: A History.
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IR-2011-61, June 3, 2011
WASHINGTON — The U.S. Treasury Department and the Internal Revenue Service today announced proposed changes to the new markets tax credit (NMTC) program to encourage more investment in non-real estate businesses located in low-income communities.
Treasury and IRS are also seeking public comments on other potential changes that would promote greater investment in non-real estate operating businesses.
The new markets tax credit, created as part of the Community Renewal Tax Relief Act of 2000,   provides incentives to invest in businesses in designated low-income communities.
Treasury and the IRS today filed a notice of proposed rulemaking and an advance notice of proposed rulemaking, which invites public comments and describes potential changes to the credit that might be made to facilitate more investment in non-real estate businesses. A notice of public hearing was also issued.
(REG-101826-11 and REG-114206-11 are available on the Federal Register website and will be published in the Federal Register on June 7.)
The proposed modifications to the credit are intended to promote greater investment in non-real estate businesses under the new markets tax credit program while still maintaining the structure of the credit that has been successful for other types of investments.
Potential changes to the tax credit include revising reinvestment requirements for entities investing in operating businesses, streamlining compliance requirements, and modifying ownership rules to reduce noncompliance risk over the course of an investment, among others.
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IR-2011-60, June 1, 2011
WASHINGTON — The Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting on June 15 and submit its latest round of recommendations to IRS leadership.
The ACT provides an organized public forum for the IRS to receive regular input on exempt organizations, employee plans and government entity policies. The advisory committee consists of external stakeholders who are appointed by the Secretary of the Treasury.
Specifically, the ACT makes recommendations on operational policies and procedures regarding employee retirement plans, tax-exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. ACT members generally serve two-year terms.
Reports from five ACT subgroups cover the following topics:
Tax Exempt Bonds: The Role of Conduit Issuers in Tax Compliance.
Federal, State and Local Governments: Review of the Government Accountability Office (GAO) Report to Congressional Requesters Entitled “Social Security Administration –– Management Oversight Needed to Ensure Accurate Treatment of State and Local Government Employees.” Evaluation of, and Recommendations for Improvement to, the Federal, State and Local Governments (FSLG) Website.
Indian Tribal Governments: Supplemental Report on the Implementation of Tribal Economic Development Bonds Under the American Recovery and Reinvestment Act of 2009. Survey of Issues Requiring Administrative Guidance in the Wake of Enactment of Section 906 of the Pension Protection Act of 2006.
Exempt Organizations: Group Exemptions –– Creating a Higher Degree of Transparency, Accountability, and Responsibility.
Employee Plans: Recommendations Regarding Pension Outreach to the Small Business Community.
Last-minute agenda changes may preclude advance notice. Due to limited seating and security requirements, attendees should call Cynthia PhillipsGrady to confirm their attendance. She can be reached at (202) 283-9954.
ACT’s public meeting will begin at 9:30 a.m. EDT on June 15, 2011, at the IRS headquarters at 1111 Constitution Ave., NW, Washington, D.C. ACT reports are available on the IRS website.
Attendees are encouraged to arrive at least 30 minutes before the meeting begins to allow sufficient time for security clearance. Photo identification must be presented. Please use the main entrance at 1111 Constitution Ave., NW, to enter the building.
Should you wish the ACT to consider a written statement, please call (202) 283-8868, or write to: Internal Revenue Service; 1111 Constitution Ave., NW; SE:T:CL-Penn Bldg; Washington, DC 20224, or e-mail Roberta.B.Zarin@irs.gov.
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IRS YouTube Videos
Preparing for Disasters: English | Spanish | ASL
IR-2011-59, June 1, 2011
WASHINGTON — The 2011 hurricane season starts today, and the Internal Revenue Service encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.
Create a Backup Set of Records Electronically
Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.
Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.
Document Valuables
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584PDF, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.
Update Emergency Plans
Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
IRS Ready to Help
If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
Back copies of previously-filed tax returns and all attachments, including Forms W-2, can be requested by filing Form 4506PDF, Request for Copy of Tax Return.
Alternatively, transcripts showing most line items on these returns can be ordered on-line, by calling 1-800-908-9946 or by using Form 4506T-EZPDF, Short Form Request for Individual Tax Return Transcript or Form 4506-TPDF, Request for Transcript of Tax Return.
Related Items:
Preparing for a Disaster (Taxpayers and Businesses)
Tax Relief in Disaster Situations
Frequently Asked Questions for Disaster Victims
Publication 583PDF, Starting a Business and Keeping Records
 
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IR-2011-81, July 27, 2011
WASHINGTON — IRS officials today announced they are taking additional steps in their continuing efforts to improve the agency’s international operations.
First, the IRS Advance Pricing Agreement (APA) Program, concerned exclusively with reaching pre-filing agreements with taxpayers on transfer pricing, will shift from the office of IRS Chief Counsel to an office under the Transfer Pricing Director in the Large Business &International division’s international operation. In addition, the IRS Mutual Agreement Program (MAP), concerned primarily with the bilateral resolution of transfer pricing disputes with U.S. treaty partners, will shift to the same office.
The resulting “Advance Pricing and Mutual Agreement program” will be under the direction of a single executive and the IRS will increase staffing available to the two program areas. The combined office will allow the IRS to reduce the time needed to complete advance pricing agreements and to resolve transfer pricing disputes with its treaty partners. The Office of Chief Counsel will remain a vital partner in the analysis and resolution of legal issues.
Second, to facilitate IRS coordination with treaty partners in an increasingly global environment, the IRS will adjust its competent authority and international coordination functions under an Assistant Deputy Commissioner (International) who will:
coordinate international activities across all IRS operating divisions,
oversee the IRS Exchange of Information program and IRS participation in the Joint International Tax Shelter Information Centre (JITSIC),
manage the activities of the IRS Tax Attaches in the agency’s foreign posts of duty,
coordinate IRS participation at the Organisation for Economic Cooperation and Development (OECD) and other non-governmental organizations,
support the Department of the Treasury in its negotiations of tax treaties and tax information exchange agreements, and
pursue competent authority agreements with treaty partners on issues other than transfer pricing.
“Improving how we manage transfer pricing compliance and continuing to develop our capacity to coordinate effectively with our treaty partners is ever more critical to our job,” said IRS Commissioner Doug Shulman. “These latest changes move forward to fulfilling one of my top priorities -- meeting the challenge of tax administration in a global economy.”
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IR-2011-80, July 25, 2011
IRS YouTube Videos:
Innocent Spouse Relief:  English  |  Spanish  |  ASL (Obsolete)
WASHINGTON — The Internal Revenue Service today announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests.
"In recent months, it became clear to me that we need to make significant changes involving innocent spouse relief," said IRS Commissioner Doug Shulman. "This change is a dramatic step to improve our process to make it fairer for an important group of taxpayers. We know these are difficult situations for people to face, and today’s change will help innocent spouses victimized in the past, present and the future."
The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program earlier this year. Policy and program changes with respect to that review will become fully operational in the fall and additional guidance will be forthcoming. However, with respect to expanding the availability of equitable relief:
The IRS will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.
	 
A taxpayer whose equitable relief request was previously denied solely due to the two-year limit may reapply using IRS Form 8857, Request for Innocent Spouse Relief, if the collection statute of limitations for the tax years involved has not expired. Taxpayers with cases currently in suspense will be automatically afforded the new rule and should not reapply.
	 
The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and where litigation is final, the agency will suspend collection action under certain circumstances.
The change to the two-year limit is effective immediately, and details are in Notice 2011-70PDF, posted today on IRS.gov.
Existing regulationsPDF, adopted in 2002, require that innocent spouse requests seeking equitable relief be filed within two years after the IRS first takes collection action against the requesting spouse. The time limit, adopted after a public hearing and public comment, was designed to encourage prompt resolution while evidence remained available. The IRS plans to issue regulations formally removing this time limit.
By law, the two-year election period for seeking innocent spouse relief under the other provisions of section 6015 of the Internal Revenue Code, continues to apply. The normal refund statute of limitations also continues to apply to tax years covered by any innocent spouse request.
Available only to someone who files a joint return, innocent spouse relief is designed to help a taxpayer who did not know and did not have reason to know that his or her spouse understated or underpaid an income tax liability. Publication 971PDF, Innocent Spouse Relief, has more information about the program.
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IR-2011-79, July 22, 2011
WASHINGTON —The Internal Revenue Service today announced the selection of Erik Corwin for the position of Deputy Chief Counsel (Technical), effective Aug. 28, 2011.
"I am pleased that Erik is joining the Chief Counsel leadership team,” IRS Chief Counsel William Wilkins said. “His strong technical background, considerable leadership abilities and his substantial experience working with key stakeholders will make him a great asset to the Internal Revenue Service.”
Since 2007, Corwin has served as a partner with Ropes & Gray LLP in Washington, D.C. In this role he focused primarily on federal tax issues related to domestic and international business transactions, regulated investment companies, and bankruptcy and restructuring. Prior to joining Ropes & Gray, he worked on a broad range of tax issues as a partner at Wilmer Cutler Pickering Hale and Door LLP (“WilmerHale”) in Washington, D.C. He also served as a clerk for Judge James Buckley on the U.S. Court of Appeals for the District of Columbia Circuit from 1992 to 1993.
Corwin is currently a member of both the District of Columbia and Massachusetts bars. He earned his J.D., magna cum laude, from Harvard Law School in 1992. While at Harvard, he was a member of the Harvard Law Review. Corwin received an A.M. degree in Government from Harvard University in 1988, as well as an A.B., magna cum laude, from Harvard College in 1985.
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IR-2011-78, July 19, 2011
WASHINGTON — The Internal Revenue Service today requested public comment on proposed updates to existing rules on permissible communications between the Office of Appeals and other parts of the IRS.
The updates are necessary because the IRS has made changes to some of its business practices and adopted new ones since the existing rules were issued in 2000. These rules address ex parte communications, which are communications between the Office of Appeals and other parts of the IRS that take place without the taxpayer or the taxpayer’s representative being given an opportunity to participate in the communication.
These rules implement a provision in the IRS Restructuring and Reform Act of 1998, aimed at ensuring that the Office of Appeals remains an independent and flexible vehicle for settling audit and collection-related disputes between taxpayers and the IRS. Details are in Notice 2011-62PDF, posted today on IRS.gov.
“The Office of Appeals plays a key role in making our tax system work better,” said Chris Wagner, IRS Chief, Appeals. “It is vital that taxpayers have full confidence in the independence of the appeals process, and we fully support every effort to strengthen that independence.”
In one key change from the existing ex parte communication rules, which are set forth in Rev. Proc. 2000-43PDF, Appeals will no longer participate on issue management teams (IMT) but can be briefed by IMTs, as long as the discussion remains generic rather than case specific. IMTs include representatives from various IRS components, typically Compliance and Counsel, and the IMT meetings usually involve general discussions of how to handle technical issues or procedural matters.
“Our mission is to impartially resolve tax disputes, without litigation, in a way that is fair to both the taxpayer and the government,” Wagner said. “We believe these updated rules will help us carry out that mission more effectively by providing everyone involved with the clear and consistent guidance they need.”
There are three ways to submit comments.
E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-62” in the subject line.
Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-62), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Hand deliver to: CC:PA:LPD:PR (Notice 2011-62), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline is Aug. 18, 2011.
The Office of Appeals resolves more than 100,000 tax cases each year. More information about the Office of Appeals and the appeals process is available on IRS.gov.
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IR-2011-77, July 15, 2011
WASHINGTON — The Internal Revenue Service today advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011.
Because the highway use tax is currently scheduled to expire on Sept. 30, 2011, this extension is designed to alleviate any confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date. Under temporary and proposed regulations filed today in the Federal Register, the Nov. 30 filing deadline for Form 2290, Heavy Highway Vehicle Use Tax Return, for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. Returns should not be filed and payments should not be made prior to Nov. 1.
To aid truckers applying for state vehicle registration on or before Nov. 30, the new regulations require states to accept as proof of payment the stamped Schedule 1 of the Form 2290 issued by the IRS for the prior tax year, ending on June 30, 2011. Under federal law, state governments are required to receive proof of payment of the federal highway use tax as a condition of vehicle registration. Normally, after a taxpayer files the return and pays the tax, the Schedule 1 is stamped by the IRS and returned to filers for this purpose. A state normally may accept a prior year’s stamped Schedule 1 as a substitute proof of payment only through Sept. 30. 
For those acquiring and registering a new or used vehicle during the July-to-November period, the new regulations require a state to register the vehicle, without proof that the highway use tax was paid, if the person registering the vehicle presents a copy of the bill of sale or similar document showing that the owner purchased the vehicle within the previous 150 days.
In general, the highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more. Ordinarily, vans, pick-ups and panel trucks are not taxable because they fall below the 55,000-pound threshold.
For trucks and other taxable vehicles in use during July, the Form 2290 and payment are, under normal circumstances, due on Aug. 31. The tax of up to $550 per vehicle is based on weight, and a variety of special rules apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the year and those first used on the road after July.
Last year, the IRS received about 650,000 Forms 2290 and highway use tax payments totaling $886 million. 
Related Items:
TD 9537PDF provides final regulations regarding the extension.
REG-122813-11PDF requests comments on these regulations.
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IR-2011-76, July 14, 2011
WASHINGTON — The Treasury Department and the Internal Revenue Service today issued a notice announcing plans to phase in the requirements of the Foreign Account Tax Compliance Act (FATCA). The new law targets noncompliance by U.S. taxpayers through foreign accounts. Under the notice’s phased implementation approach, foreign financial institutions (FFIs) and U.S. withholding agents are given adequate time to build the systems needed to fully comply with FATCA.
"FATCA is an important development in U.S. efforts to combat offshore noncompliance.  At the same time, the IRS recognizes that implementing FATCA is a major undertaking for financial institutions." said IRS Commissioner Doug Shulman.  "Today's notice is a reflection of our serious commitment to implementation of the statute, but also a serious commitment to listen to the implementation challenges of affected financial institutions and make appropriate adjustments to ensure a smooth and timely roll-out."
FATCA was enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act.  FATCA requires FFIs to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.  In order to avoid being withheld upon under FATCA, a participating FFI will have to enter into an agreement with the IRS to:
Identify U.S. accounts,
Report certain information to the IRS regarding U.S. accounts, and
Withhold a 30-percent tax on certain payments to non-participating FFIs and account holders who are unwilling to provide the required information.
FFIs that do not enter into an agreement with the IRS will be subject to withholding on certain types of payments, including U.S. source interest and dividends, gross proceeds from the disposition of U.S. securities, and passthru payments.
Notice 2011-53PDF, issued today by Treasury and the IRS, provides a workable timeline for FFIs and U.S. withholding agents to implement the various requirements of FATCA.  Specifically, the notice phases in the implementation of FATCA in the following manner:
An FFI must enter an agreement with the IRS by June 30, 2013, to ensure that it will be identified as a participating FFI in sufficient time to allow withholding agents to refrain from withholding beginning on January 1, 2014.
Withholding on U.S. source dividends and interest paid to non-participating FFIs will begin on Jan. 1, 2014, and withholding on all withholdable payments (including on gross proceeds) will be fully phased in on Jan. 1, 2015.
Due diligence requirements for identifying new and pre-existing U.S. accounts (including certain high-risk accounts) will begin in 2013.  Reporting requirements will begin in 2014.
For purposes of the Notice, high risk accounts include private banking accounts with a balance that is equal to or greater than $500,000.
Treasury and IRS will continue to work closely with businesses and foreign governments to implement FATCA effectively.
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IR-2011-75 July 13, 2011
WASHINGTON –– The Internal Revenue Service will open the doors to dozens of its Taxpayer Assistance Centers across the country this coming Saturday, July 16, 2011, to answer taxpayer questions and provide help with tax filing issues.
This special event is particularly intended for people who want to make a “fresh start” by taking steps to have liens withdrawn. It also provides an opportunity to those who cannot visit an IRS walk-in office during regular weekday hours to speak with IRS personnel about their tax issues.
A total of 74 Taxpayer Assistance Centers will be open in 34 states, Washington, D.C. and Puerto Rico from 9 a.m. to 2 p.m. local time. Taxpayers can find participating offices by visiting the Saturday Service Locations page on IRS.gov.
“Sometimes taxpayers need one-on-one assistance with their tax issues,” IRS Commissioner Doug Shulman said. “Our goal at these open houses is to provide that and help taxpayers move their issues toward resolution.”
At the last two open houses, IRS personnel helped more than 16,000 taxpayers.
Services Available
The IRS recently adjusted its policies concerning liens by allowing for the withdrawal of a lien when a taxpayer enters into a direct debit installment agreement.
In addition to helping taxpayers with liens, the Taxpayer Assistance Centers will offer the same range of services at the open house that they do during regular weekday hours. For example, taxpayers will be able to arrange or make account payments, inquire about letters, notices or levies on wages or bank accounts, request copies of tax returns or transcripts and find answers to tax law questions. Multilingual assistance will be available.
No appointments are available for the Saturday open house. Service will be provided on a first come, first served basis.
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