etrent17/irs-articles huggingface dataset:
IR-2011-123, Dec. 21, 2011
WASHINGTON — Taxpayers can get the most out of various recovery tax benefits and get a jump on preparing their 2011 federal income tax returns by consulting a newly revised comprehensive tax guide now available on IRS.gov.
Publication 17PDF, Your Federal Income Tax, features details on taking advantage of a wide range of tax-saving opportunities, such as the American opportunity credit for parents and college students, and the child tax credit and expanded earned income tax credit for low- and moderate-income workers. This useful 303-page guide also provides more than 5,000 interactive links to help taxpayers quickly get answers to their questions.
Publication 17 has been published annually by the IRS since the 1940s and has been available on the IRS web site since 1996. As in prior years, this publication is packed with basic tax-filing information and tips on what income to report and how to report it, figuring capital gains and losses, claiming dependents, choosing the standard deduction versus itemizing deductions and using IRAs to save for retirement.
Besides Publication 17, IRS.gov offers many other helpful resources for those doing year-end tax planning. Many 2011 forms are already posted, and updated versions of other forms, instructions and publications are being posted almost every day. Forms already available include Form 1040PDF, short Forms 1040A (obsolete) and 1040EZ (obsolete), Schedule APDF for itemizing deductions and new Form 8949PDF for reporting sales of stocks, bonds and other capital assets.
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IR-2011-122, Dec. 20, 2011
WASHINGTON — The Internal Revenue Service today issued final regulations requiring paid tax return preparers to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). This is the same form that is currently required to be completed and retained in a preparer’s records.
The due diligence requirement, enacted by Congress over a decade ago, was designed to reduce errors on returns claiming the EITC, most of which are prepared by tax professionals. The IRS created Form 8867PDF, Paid Preparer's Earned Income Credit Checklist, to help preparers meet the requirement by obtaining eligibility information from their clients. Preparers have been required to keep copies of the form, or comparable documentation, which is subject to review by the IRS.
To help ensure compliance with the law and that eligible taxpayers receive the right credit amount, the new regulations require preparers, effective Jan. 1, 2012, to file the Form 8867 with each return claiming the EITC. The regulations also reflect recent congressional action to increase the penalty for noncompliance with the due diligence requirement from $100 to $500. Further details can be found in Treasury Decision 9570, published today in the Federal Register.
The EITC benefits low-and moderate-income workers and working families, and the tax benefit varies by income, family size and filing status. Unlike most deductions and credits, the EITC is refundable –– taxpayers can get it even if they owe no tax. For 2011 tax returns, the maximum credit is $5,751.
Although as many as one in five eligible taxpayers fail to claim the EITC, some of those who do claim it either compute it incorrectly or are ineligible. The new requirement is part of the IRS initiative to ensure that the credit is afforded to taxpayers who qualify. This year, over 26 million people received nearly $59 billion through the EITC. Tax professionals prepare close to 66 percent of these claims.
More information about EITC and the due diligence requirement for tax return preparers is available on IRS.gov.  
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IR-2011-120, Dec. 16, 2011
WASHINGTON — Tax-exempt organizations with January and February filing due dates will have until March 30, 2012, to file their annual returns, the Internal Revenue Service announced today.
The IRS is granting this extension of time to file because the part of the e-file system that processes electronically filed returns of tax-exempt organizations will be off-line during January and February. The agency stressed that the rest of the e-file system will continue to operate normally and urged all individuals and businesses to choose the accuracy, speed and convenience of electronic filing.
In general, the extension applies to tax-exempt organizations whose normal filing deadline is either Jan. 17 or Feb. 15, 2012. Ordinarily, these deadlines would apply to organizations with a fiscal year that ended on Aug. 31 or Sept. 30, 2011, respectively. The extension also applies to organizations that already obtained an initial three-month filing extension and now have an extended filing deadline that falls on Jan. 17 or Feb. 15, 2012. The majority of tax-exempt organizations will be unaffected by this extension because they operate on a calendar-year basis and have a May 15 filing deadline.
The extension applies to affected organizations filing Forms 990PDF, 990-EZPDF, 990-PFPDF, or 1120-POLPDF. Form 990-N filers will not be affected. No form needs to be filed to get the March 30 extension.
In order to avoid receiving a late filing penalty notice, a reasonable cause statement should be attached to the tax return. If organizations receive late-filing penalty notices, they should contact the IRS so that these penalties can be abated. The IRS encouraged these organizations to consider either e-filing early — before the end of December — or waiting until March to file electronically.
Further details are in Notice 2012-4PDF, posted today on IRS.gov.
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Update Dec. 21, 2011 —Form 8938 and its instructions are now available on page Form 8938, Statement of Foreign Financial Assets.
IR-2011-117, Dec. 14, 2011
WASHINGTON — The Internal Revenue Service in coming days will release a new information reporting form that taxpayers will use starting this coming tax filing season to report specified foreign financial assets for tax year 2011.
Form 8938 (Statement of Specified Foreign Financial Assets) will be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. It is important for taxpayers to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply.
The Form 8938 filing requirement was enacted in 2010 to improve tax compliance by U.S. taxpayers with offshore financial accounts. Individuals who may have to file Form 8938 are U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.
Form 8938 is required when the total value of specified foreign assets exceeds certain thresholds. For example, a married couple living in the U.S. and filing a joint tax return would not file Form 8938 unless their total specified foreign assets exceed $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
The thresholds for taxpayers who reside abroad are higher. For example in this case, a married couple residing abroad and filing a joint return would not file Form 8938 unless the value of specified foreign assets exceeds $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
Instructions for Form 8938 explain the thresholds for reporting, what constitutes a specified foreign financial asset, how to determine the total value of relevant assets, what assets are exempted, and what information must be provided.
Form 8938 is not required of individuals who do not have an income tax return filing requirement.
The new Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file an FBAR (Report of Foreign Bank and Financial Accounts).  For more go to the FBAR page on this website.
Failing to file Form 8938 when required could result in a $10,000 penalty, with an additional penalty up to $50,000 for continued failure to file after IRS notification.  A 40 percent penalty on any understatement of tax attributable to non-disclosed assets can also be imposed. Special statute of limitation rules apply to Form 8938, which are also explained in the instructions.
Form 8938, the form’s instructions, regulations implementing this new foreign asset reporting, and other information to help taxpayers determine if they are required to file Form 8938 can be found on the FATCA page of irs.gov.
See TD 9567PDF.
IR-2011-116, Dec. 9, 2011
WASHINGTON — The Internal Revenue Service today issued the 2012 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, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
55.5 cents per mile for business miles driven
23 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.
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.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
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 more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51 PDF. 
Notice 2012-01 PDF contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Related Item: IR-2011-104, In 2012, Many Tax Benefits Increase Due to Inflation Adjustments 
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IR-2011-115, Dec. 6, 2011
WASHINGTON—The Internal Revenue Service today announced the standards to become an IRS-approved Continuing Education (CE) Provider and the requirements to become an IRS CE Accrediting organization.  The guidance paves the way for the implementation of new CE requirements for certain tax return preparers starting next year.
Individuals who are required to take the Registered Tax Return Preparer competency test before the end of 2013 must begin completing continuing education courses in 2012. The 15-hour annual requirement consists of 10 hours of federal tax law topics, three hours of tax law updates and two hours of ethics and/or professional conduct. Preparers must obtain the courses from IRS-approved providers.
To be an IRS-approved CE Provider, an organization must be one of the following: 
An accredited educational institution,
Recognized for continuing education purposes by the licensing body of any state or U.S. territory,
Approved by a qualifying organization as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents (such qualifying organizations will be known as accrediting organizations), or
Any other professional organization, society or business recognized by the IRS as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents.
Any organization that wants to become an accrediting organization can immediately submit the required documentation outlined in section 4 of Revenue Procedure 2012-12 to the address provided in the revenue procedure. Once approved, any accrediting organizations will be publicized by the IRS and must renew their status as accrediting organization with the IRS every three years.
New provider application process
Organizations in all four categories must obtain an IRS CE provider number. Organizations are able to apply through a new on-line process beginning today.  As part of the process, continuing education providers are required to pay an annual fee to the third-party vendor selected by the IRS to administer the CE provider application and renewal processes. The fee covers costs to maintain a public listing of all approved providers and to collect course completion information from providers, identifying to the IRS, by PTIN, those attendees who have completed a program. There is no additional IRS fee.
To apply for a provider number and program number(s), organizations should visit:  /taxpros/ce and click on the “Apply to become an IRS Approved CE Provider” link.  Assistance for CE Provider questions is available Monday-Fri, 8 a.m. – 8 p.m. EST by calling 855-296-3150 (toll-free) or 202-499-5606.
The IRS will maintain full oversight of approving and reviewing providers. Additional information, including Frequently Asked Questions, is available at www.IRS.gov/ptin and www.IRS.gov/taxpros/ce.
IR-2010-16, Jan. 29, 2010
Washington — The Internal Revenue Service announced today that some taxpayers who file paper income tax returns will send them to different processing centers this year.
Taxpayers in Maine, Maryland, Massachusetts, New Hampshire, Vermont, Virginia and the District of Columbia will now send their tax returns to the IRS Kansas City Service Center in Kansas City, Mo. Taxpayers in Indiana and Michigan will send their tax returns to the IRS Fresno Service Center, in Fresno, Calif. Taxpayers in Alabama will send their tax returns to the IRS Austin Service Center in Austin, Texas.
The IRS continuously monitors work flow at its centers and makes appropriate adjustments by altering the volume of returns to be sent to each. Taxpayers who use the envelope provided with the income tax instructions do not have to be concerned with the address change; their returns automatically will go to the correct center.
Taxpayers who e-file will not be affected by the address changes. Two out of three filers choose IRS e-file; it’s faster, easier, more accurate and more convenient than filing a paper tax return.
For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package and need the service center address should refer to the back cover of the instructions to Form 1040PDF, Form 1040APDF and Form 1040EZPDF.
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IR-2010-12, Jan. 25, 2010
WASHINGTON — People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season, according to the Internal Revenue Service.
Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
"Americans have opened their hearts to help those affected by the Haiti earthquake," said IRS Commissioner Doug Shulman." This new law provides an immediate tax benefit for the many taxpayers who have made generous donations."
Taxpayers can benefit from their donations, almost immediately, by filing their 2009 returns early, filing electronically and choosing direct deposit. Refunds take as few as ten days and can be directly deposited into a savings, checking or brokerage account, or used to purchase Series I U.S. savings bonds.
The new law only applies to cash (as opposed to property) contributions. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but not both.
To get a tax benefit, taxpayers must itemize their deductions on Schedule APDF. Those who claim the standard deductionPDF, including all short-form filers, are not eligible.
Taxpayers should be sure their contributions go to qualified charities. Most organizations eligible to receive tax-deductible donations are listed in a searchable online database available on IRS.gov under Search for Charities. Some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov. Donors can find out more about organizations helping Haitian earthquake victims from agencies such as USAID.
The IRS reminds donors that contributions to foreign organizations generally are not deductible. IRS Publication 526PDF, Charitable Contributions, provides information on making contributions to charities.
Federal law requires that taxpayers keep a record of any deductible donations they make. For donations by text message, a telephone bill will meet the recordkeeping requirement if it shows the name of the donee organization, the date of the contribution and the amount of the contribution. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution. Publication 526 has further details on the recordkeeping rules for cash contributions.
This year’s special Haiti relief provision is modeled on a 2005 law that, in the wake of the Dec. 26, 2004, Indian Ocean tsunami, allowed taxpayers to deduct donations they made during January 2005 as if they made the donations in 2004.

Related Item: Notice 1396 (obsolete), describing this deduction, is printed in English, Spanish, French and Haitian Creole.

 
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IR-2010-11, Jan. 22, 2010
Washington — The Internal Revenue Service today issued guidancePDF that designates the earthquake in Haiti in January 2010 as a qualified disaster for federal tax purposes. The guidance allows recipients of qualified disaster relief payments to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist victims in areas affected by the January 2010 earthquake in Haiti without affecting their tax-exempt status.
Charities usually fall into one of two categories — public charities or private foundations. Under the tax law, a private foundation that is employer-sponsored may make qualified disaster relief payments to employees affected by a qualified disaster. These payments generally include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be included in the individual recipient’s gross income.
Qualified disasters include Presidentially declared disasters and any other event that the Secretary of the Treasury determines to be catastrophic. The IRS has determined that the earthquake in Haiti that occurred this month is an event of catastrophic nature for purposes of the federal tax law.
The IRS will presume that qualified disaster relief payments made by a private foundation to employees and their family members in areas affected by the earthquake in Haiti to be consistent with the foundation's charitable purposes.
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IR-2010-10, Jan. 21, 2010
WASHINGTON — The Internal Revenue Service today reminded tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.
The Pension Protection Act of 2006 requires that non-profit organizations that do not file a required information form for three consecutive years automatically lose their Federal tax-exempt status. This requirement has been in effect since the beginning of 2007.
A list of revoked organizations will be available to the public, as well as state charity and tax officials on this website.
If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
Small non-profit organizations with annual receipts of $25,000 or less can file an electronic notice, Form 990-N ( e-Postcard). They will need only a few basic pieces of information to file: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.
Tax-exempt organizations with annual receipts above $25,000 are required to file the Form 990 or the Form 990-EZ annually. Private foundations file Form 990-PF. Churches and integrated auxiliaries of churches are not required to file Form 990-series returns or notices.
Form 990-series returns and e-Postcards, are due by the 15th day of the 5th month after an organization’s tax year ends. For more information, visit the relevant page on this web site.
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Revised Jan. 21, 2010, to add HCTC information
IR-2010-9, Jan. 20, 2010
WASHINGTON — Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, and these newly-eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months, according to the Internal Revenue Service.
Created by the American Recovery and Reinvestment Act of 2009, the COBRA subsidy eligibility period was originally scheduled to expire at the end of 2009, and eligible individuals only qualified for the subsidy for nine months. But the Department of Defense Appropriations Act, 2010, enacted on Dec. 19, extended the eligibility period and the maximum duration of COBRA premium assistance.
As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008, and Feb. 28, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. Involuntarily terminated employees who meet certain other requirements, and certain family members of those individuals, are referred to as “assistance-eligible individuals.”
Employers must provide COBRA coverage to assistance-eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns: Form 941PDF, Employers QUARTERLY Federal Tax Return, Form 944PDF, Employer’s ANNUAL Federal Tax Return, or Form 943PDF, Employer’s Annual Federal Tax Return for Agricultural Employees. Employers must maintain supporting documentation for the claimed credit.
The administrator of a group health plan or other entity must notify certain assistance-eligible individuals of the extension by Feb. 17, 2010. For assistance-eligible individuals whose nine months of subsidy had already ended, the new law also provides an extended period for the retroactive payment of their 35 percent share during a transition period.
There is much more information about the COBRA subsidy, including questions and answers for employers, and for employees or former employees, on the COBRA pages of IRS.gov.
Some people who are eligible for the COBRA subsidy also qualify for the health coverage tax credit (HCTC) and may want to choose this more generous benefit, instead. The HCTC pays 80 percent of health insurance premiums for those who qualify. Eligible individuals must be receiving Trade Adjustment Assistance benefits or be between the ages fo 55 and 65 and receiving pension payments from the Pension Benefit Guaranty Corporation. Individuals must also be enrolled in a qualified health plan. See more at HCTC: Eligibility Requirements and How to Receive the HCTC.
Related Items:
U.S. Department of Labor's COBRA Web site

The American Recovery and Reinvestment Act of 2009: Information Center

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IR-2010-8, Jan. 20, 2010
WASHINGTON — The Internal Revenue Service today announced the selection of Michael Danilack as Deputy Commissioner (International) for the Large and Mid-Size Business Division.
In his position, Danilack will oversee a wide range of issues relating to international tax matters. These include ensuring consistent tax treatment of U.S. taxpayers concerning international issues, providing timely and effective implementation of tax treaty and tax information exchange and advising the Large and Mid-Size Business Commissioner on issues involving international tax administration.
“Michael brings 25 years of experience and broad expertise inside and outside the government to this critical position,” said Steven T. Miller, IRS Deputy Commissioner for Services and Enforcement. “In addition to his work in the private sector, Michael has also previously served in one of the key IRS legal positions supporting international tax law. As recent months have illustrated, globalization continues to increase the importance of international tax issues, and Michael is well positioned to help our efforts.”
Danilack comes to the IRS from the Washington, D.C. office of Burt, Staples and Maner, LLP, a law firm that specializes in international tax law. Prior to this, he worked as a principal at Deloitte Tax, LLP, focusing on cross-border tax matters. From the mid-1990s to 2000, Danilack served as IRS Associate Chief Counsel (International) overseeing the legal staff responsible for the interpretation, enforcement and litigation of all international provisions of the U.S. revenue laws. Prior to this, he served as an assistant to the IRS Commissioner.
Danilack received his undergraduate degree from University of Pennsylvania in 1982 and earned a J.D. and LL.M. degree from New York University School of Law.
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IR-2010-7, Jan. 19, 2010
WASHINGTON — The Internal Revenue Service is joining national TV network Telemundo in a special one-hour tax program for Spanish-speaking taxpayers on Sunday, Jan. 24.
The program, “Los Impuestos y Usted” (“Taxes and You”), will air at:
3:00 p.m. Eastern time
2:00 p.m. Central time
2:00 p.m. Mountain time
3:00 p.m. Pacific time
Consult your local listings for exact times.
“Los Impuestos y Usted” will focus on a variety of tax issues. In addition to topics such as who must file a tax return and who can claim deductions and benefits, the program focuses on the Earned Income Tax Credit – a valuable credit that unfortunately one in four eligible taxpayers overlook. Workers with incomes under $48,279 could receive larger refunds if they qualify.
In addition, the program will explain Free File, a service that allows many taxpayers to file their taxes online at no cost. The show will also discuss other kinds of free assistance available from the IRS.
Mónica Noguera, host for many of Telemundo’s special programs, will present the IRS program, which features in-studio interviews with IRS tax experts.
Information about the IRS is available in Spanish at /espanol or toll-free at 1-800-829-1040, extension 8.
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YouTube Video: Received a Letter from the IRS? (Obsolete)
IR-2010-3, Jan. 11, 2010
WASHINGTON — The Internal Revenue Service today unveiled its first redesigned notices that are part of an on-going effort to improve the way it corresponds with taxpayers.
The nine new notices are among the first to be reviewed and revised for clarity, effectiveness and efficiency. The agency also will create an office that ensures the effort to improve communications is on-going and permanent.
“One of my priorities is to ensure that we have clear and simple communication with taxpayers. In the past, our notices often looked more like legal documents and not an effort to communicate clearly. The differences between the old and new notices are like night and day. They show the potential of our on-going effort in this area,” said IRS Commissioner Doug Shulman.
In July 2008, Shulman appointed the Taxpayer Communications Taskgroup to review IRS correspondence. The task group found that IRS notices have different looks, messages and do not use consistent language. Because of this, some notices are creating unnecessary confusion for taxpayers.
Nine notices will feature the new design format beginning in January. These notices account for approximately 2 million pieces of correspondence with individuals, businesses and exempt organizations. A revised web page is available at /notices.
The new format includes a plain language explanation of the nature of the correspondence, clearly states what action the taxpayer must take and presents a consistent, clean design. The new format also guides taxpayers to appropriate pages on IRS.gov where they can find accurate and relevant information quickly and easily.
By reducing the potential for confusion, these notices will improve the taxpayers’ ability to get problems resolved quickly, and improve overall compliance.
Shulman also announced this important work will be made a permanent part of the IRS through a new office to oversee improvements to taxpayer correspondence. The new office, called Office of Taxpayer Correspondence, will be directed by Jodi Patterson, who led the initial effort.
Tax preparers are already seeing some of this effort. In March, the IRS reduced to 2 from 13 the number of inserts included to tax preparers as part of notice CP 161, which is mailed to business taxpayers who underpay their taxes. There are approximately 2.3 million CP 161 notices sent annually.
Related Items:
Understanding Your IRS Notice or Letter
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IR-2010-22, Feb. 26, 2010
WASHINGTON — The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 2010, will remain the same. 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.
Additionally, the rate for determining the addition to tax for failure to pay estimated tax for the first 15 days in April 2010 is the 4 percent rate that applied to underpayments of tax during the first calendar quarter in 2010.
The interest rates announced today are computed from the federal short-term rate during January 2010 to take effect Feb. 1, 2010, based on daily compounding.
Revenue Ruling 2010-9, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2010-13, dated March 29, 2010.
IR-2010-20, Feb. 11, 2010
WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service today announced the allocation of a second round of authority to Indian tribal governments to issue Tribal Economic Development Bonds under the American Recovery and Reinvestment Act of 2009 (ARRA).
The IRS awarded 76 tribal governments a combined $1.005 billion of bond issuance authority, also known as volume cap. The bonds can be used to finance virtually all types of public works projects. The ARRA provided for a total of $2 billion issuance of economic development bonds by Indian tribal governments.
The IRS received 86 applications requesting a total of over $3 billion of volume cap under the second round. Allocations were prorated to maintain the legal limit.
For those applicants who elected to consent to public disclosure, the IRS is releasing an allocation schedulePDF showing the names of the Indian tribal governments, the types and locations of the projects described in the applications and the amounts of the awarded allocations.
In September 2009, the IRS allocated the first portion of Tribal Economic Development Bonds issuance authority to 58 tribal governments. See IR-2009-81 for more details.
In June 2009, the IRS issued Notice 2009-51DOC, which clarifies how the $2 billion of Tribal Economic Development Bonds are to be allocated under section 7871(f) of the Internal Revenue Code. Section seven of the notice provides that the volume cap is to be allocated in at least two rounds, or tranches, with no Indian tribal government receiving more than $30 million of volume cap per round of allocations.
Tribal Economic Development Bonds and certain other types of municipal bonds are subject to legal limitations on how much can be issued, commonly known as volume caps.
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IR-2010-19, Feb. 5, 2010
WASHINGTON — A Certified Public Accountant has been suspended for twelve months from practice before the Internal Revenue Service by the Office of Professional Responsibility for providing false or misleading information in connection with the preparation of his clients’ tax returns.
“Practitioners have a duty both to their clients and to the system to insure taxpayers are complying with tax laws and filing complete and accurate tax returns,” Karen L. Hawkins, Director of the Office of Professional Responsibility said.
Robert A. Loeser, a certified public accountant from Houston, Texas, assisted his clients to lower their tax bills by claiming false business expenses on tax returns he prepared. 
For no legitimate business purpose, Loeser’s clients were advised to forward funds from their businesses to two corporations Loeser controlled. The corporations then rebated the funds to his clients.  Loeser prepared the clients’ books and business tax returns expensing and deducting the entire amounts that were paid to the corporations.
The IRS alleged Loeser violated Circular 230 by giving false or misleading information to the Department of Treasury and the IRS.
The settlement agreement included a disclosure authorization that allowed the Office of Professional Responsibility to issue this release.
The Office of Professional Responsibility (OPR) establishes and enforces standards of competence, integrity and conduct for tax professionals -- enrolled agents, attorneys, CPAs, and other individuals and groups covered by Treasury Circular 230.

 
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IR-2010-18, Feb. 5, 2010
WASHINGTON — The Internal Revenue Service today released the 2010 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws.
Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 80-page document, The Truth about Frivolous Tax Arguments.
The document explains many of the common frivolous arguments made in recent years and it describes the legal responses that refute these claims. It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties.
Congress in 2006 increased the amount of the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.
IRS highlighted in the document about 40 new cases adjudicated in 2009. Highlights include cases involving injunctions against preparers and promoters of Form 1099-Original Issue Discount schemes and injunctions against preparers and promoters of false fuel tax credit schemes.
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IR-2010-17, Feb. 4, 2010
WASHINGTON — The Internal Revenue Service today announced it is accepting applications to fill vacancies on the Electronic Tax Administration Advisory Committee (ETAAC), which provides feedback on the policies, programs and procedures of electronic tax administration.
Applicants should submit a resume and complete an applicationPDF by March 15, 2010. ETAAC members may not be federally registered lobbyists.
The ETAAC provides a public forum for the discussion of issues in electronic tax administration. The ETAAC supports the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. Members of the ETAAC are approved by the Secretary of the Treasury and serve a three-year term. The Committee submits an annual report to Congress in June regarding progress at the IRS with electronic transactions.
The Committee includes tax practitioners, transmitters of electronic returns, tax software developers, large and small businesses, employers, payroll service providers, financial industry representatives, system integrators and academics.
Requests for more information or completed applications should be sent to etaac@irs.gov or faxed to 202-283-2845 (not toll-free). A noticePDF in the Federal Register (dated Jan. 28, 2010) contains more details about the committee and application process.
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Updated June 6, 2011 — The information center mentioned at bottom has been deleted. For more information, please refer to New PTIN Requirements for Tax Return Preparers.  
IR-2010-37, March 25, 2010
WASHINGTON — The Internal Revenue Service today issued proposed regulations allowing the IRS to require that tax return preparers use Preparer Tax Identification Numbers (PTINs) as the preparer’s identifying number on all tax returns and tax refund claims that they prepare. These regulations when final will implement some of the recommendations in Publication 4832, Return Preparer Review.
“These regulations allow the IRS to better identify and match tax return preparers with the tax forms and claims they prepare. This proposed PTIN system will help us ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of our tax system,” said IRS Commissioner Doug Shulman.
Under the proposed regulations, the IRS will issue forms, instructions, or other guidance that will require paid tax return preparers to begin using PTINs for all tax returns and refund claims filed after Dec. 31, 2010. Currently, tax return preparers must use either a PTIN or their social security number on tax returns or refund claims that they prepare. 
The proposed regulations also provide that tax return preparers must apply for a PTIN, regularly renew the PTIN, and pay associated user fees, which will be described in upcoming guidance. As part of the process, some tax return preparers would also be subject to a tax compliance check, which could include a review of the preparer’s history of compliance with personal and business tax filing and payment obligations.  
Tax professionals and other interested parties have until April 26, 2010, to submit comments regarding the attached proposed regulations.
The IRS plans to launch a new system later this year through which all tax return preparers will be required to register, including those who already have a PTIN. Tax return preparers who already have a PTIN will have the number revalidated and reassigned to them through the new system, while tax return preparers who do not have a PTIN will be issued one through the new system.
It is estimated that there are as many as 1.2 million paid tax return preparers. 
Related Item: Return Preparer Compliance and Enforcement: Information Center

 
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IR-2010-36, March 24, 2010
WASHINGTON — The IRS announced today that Internal Revenue Service offices will be open, nationwide, on Saturday, March 27 from 9 a.m. to 2 p.m., local time to help taxpayers. The location of participating offices is listed on IRS.gov.
“We are holding these special open houses to give taxpayers who are struggling in these difficult economic times more opportunity to work directly with IRS employees to resolve their tax issues," said IRS Commissioner Doug Shulman.  “We will host more than 180 open houses this Saturday."
During the expanded open-house hours on Saturday, taxpayers will be able to address economic hardship issues, make payment arrangements or get help claiming any of the special tax breaks in last year’s American Recovery and Reinvestment Act, including the:
Homebuyer tax credit – a refundable credit equal to 10 percent of the purchase price up to a maximum of $8,000 ($4,000 if married filing separately). A first-time homebuyer is an individual who, with his or her spouse if married, has not owned any other principal residence for three years prior to the date of purchase of the new principal residence for which the credit is being claimed.
American Opportunity Credit -- a federal education credit to offset part of the cost of college under the new American Opportunity Credit. This credit modifies the existing Hope credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Income guidelines are expanded and required course materials are added to the list of qualified expenses. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.
Making Work Pay credit -- In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.
Expanded Earned Income Tax Credit – there is now a new tax classification for EITC recipients who have three or more children and a higher credit amount – up to $5,657
In addition to IRS help, community organizations partner with the IRS. Volunteer Income Tax Assistance (VITA) programs assist people who earned $49,000 or less and Tax Counseling for the Elderly (TCE) programs assist individuals 60 and over with their 2009 income tax return preparation and electronic filing.   Many of these sites have Saturday hours while others offer assistance at various times during the week.  To locate the partner sites in this area call 1-800-906-9887.
In addition to the open houses this Saturday, the IRS will open many of its offices on three additional Saturdays in the spring and early summer.
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IR-2010-35, March 23, 2010
WASHINGTON –– Electronically filed tax returns are on track with last year and overall refunds are running nearly 10 percent higher so far in 2010, according to statistics issued today by the Internal Revenue Service.
The statistics issued today, covering the period through March 12, show that while the overall number of tax returns filed this year is down slightly, the percentage of returns using e-file remains strong. More than 82 percent of the 69 million returns received this year have come in via e-file. Home usage of e-file is up almost 7 percent compared to this time last year.
Additionally, the average federal refund totaled $3,036, an increase of $266 compared with the same period a year ago.
The refund increase follows a number of federal tax incentives enacted last year as part of the American Recovery and Reinvestment Act, such as the homebuyer credit and the American Opportunity Credit.
“There are several new credits and deductions this year, so we encourage taxpayers to see if they qualify when they fill out their tax return,” said IRS Commissioner Doug Shulman. “To get their refunds quicker, the IRS reminds taxpayers that the fastest, easiest way is to e-file and use direct deposit.”
Taxpayers can check their eligibility for these credits and deductions on the Recovery page of this Web site. This special section also contains instructions on how to claim the available tax incentives and provides answers to frequently asked questions. Detailed information is available on the:
Homebuyer Credit
Making Work Pay Credit
Economic Recovery Payments
Earned Income Tax Credit
American Opportunity Tax Credit
Sales and excise tax deduction for new car purchases
Energy incentives for homeowners
 

2010 FILING SEASON STATISTICS


Cumulative through the weeks ending 03/13/09 and 03/12/10


Individual Income Tax Returns


2009


2010


% Change


Total Receipts


  70,807,000


  68,743,000


-2.9%


Total Processed


  67,595,000


  64,284,000


-4.9%


 


 


 


 


E-filing Receipts:


 


 


 


TOTAL


56,665,000


  56,802,000


  0.2%


Tax Professionals


36,751,000


  35,509,000


-3.4%


Self-prepared


19,914,000


  21,293,000


  6.9%


 


 


 


 


Web Usage:


 


 


 


Visits to IRS.gov


126,091,068


  121,091,068


-4.2


 


 


 


 


Total Refunds:


 


 


 


Number


61,042,000


  57,779,000


-5.3%


Amount


$169.1


billion


  $175.4


billion


  3.7%


Average refund


$2,770


$3,036


  9.6%


 


 


 


 


Direct Deposit Refunds:


 


 


 


Number


48,643,000


  47,893,000


-1.5%


Amount


$146.4


billion


$154.8


billion


  5.7%


Average refund


$3,010


$3,232


  7.4%

 
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IR-2010-34, March 19, 2010
WASHINGTON — The Internal Revenue Service seeks civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP), a federal advisory committee that listens to taxpayers, identifies key issues and makes recommendations for improving IRS service.
“The feedback and suggestions that the TAP provides us from the taxpayer’s point of view are important to sound tax administration,” said IRS Commissioner Doug Shulman.
The TAP provides a forum for taxpayers from all 50 states, the District of Columbia, and Puerto Rico to raise concerns about IRS service and offer suggestions for improvement. The TAP reports annually to the Secretary of the Treasury, the IRS Commissioner and the National Taxpayer Advocate. The Office of the Taxpayer Advocate, an independent organization within the IRS, provides oversight and funding for the TAP.
“In trying to comply with an increasingly complex tax system, taxpayers may find they need different services from the IRS,” said Nina E. Olson, National Taxpayer Advocate. “The TAP is vital because it provides the IRS with the taxpayer’s perspective and recommendations for improvements that will help the IRS to deliver the best possible service to assist taxpayers in meeting their tax obligations.”
To be a member of the TAP you must be a U.S. citizen, current with your federal tax obligations, able to commit 300 to 500 hours during the year, and able to pass an FBI criminal background check. New TAP members will serve a three-year term starting in December 2010. Anyone chosen as an alternate member will be considered to fill any vacancies that open in their area during the next two years.
The TAP is seeking members in the following locations:  California, Colorado, Illinois, Michigan, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, Pennsylvania, Puerto Rico, Rhode Island, South Carolina and Washington.
Alternates are needed for Alabama, the District of Columbia, Idaho, Louisiana, Maine, New York, South Dakota, Vermont, West Virginia and Wyoming.
Applications for TAP will be accepted through April 30, 2010. Applications are available online at www.improveirs.org. For additional information about the TAP or the application process, please call toll-free 1-888-912-1227.
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