etrent17/irs-articles huggingface dataset:
IR-2007-32, Feb. 13, 2007
WASHINGTON — The Internal Revenue Service and U.S. Treasury today announced that they have released guidance on the estimated tax penalty for citizens or residents of the United States living and working abroad.
The Tax Increase Prevention and Reconciliation Act of 2005, Pub. L. No. 109-222, 120 Stat. 345 (TIPRA), enacted in May 2006, changed the maximum amount of foreign earned income and housing costs that may be excluded from gross income under section 911 of the Internal Revenue Code.
TIPRA increased the maximum amount of foreign earned income that may be excluded from gross income to $82,400. The law also limited the amount of housing costs that may be excluded or deducted under section 911. TIPRA further provides that the tax applicable to income not covered by the foreign income exclusion will now be calculated as though the exclusion had not been elected. These changes are effective for taxable years beginning after December 31, 2005.
Because these changes are retroactive to the beginning of the taxable year, persons relying on the law as it existed prior to the enactment of TIPRA may have underpaid their estimated tax liabilities for 2006 and may be liable for an addition to tax under section 6654(a). The IRS will waive additions to tax under section 6654(a) to the extent that the underpayment is attributable to the changes enacted under TIPRA. 
This waiver is only available to qualified individuals who file a Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, with their timely filed Form 1040, U.S. Individual Income Tax Return, or Form 1040X, Amended U.S. Individual Income Tax Return. 
About 300,000 individual taxpayers filed Form 2555 and Form 2555-EZ for tax year 2004, the latest year for which data is available.
Related Items:

Notice 2007-16PDF, Estimated Tax Penalty for Citizens or Residents of the United States Living Abroad 


Form 2555PDF


Form 2555-EZPDF


Form 1040PDF


Form 1040XPDF
IR-2007-31, Feb. 9, 2007
 
WASHINGTON — The IRS Commissioner has selected Robert Buggs as the Chief Human Capital Officer and Jim Falcone as the new Chief, Agency-Wide Shared Services.
“Robert and Jim are strong additions to the IRS leadership team,” said IRS Commissioner Mark W. Everson. “Robert has been a highly effective leader of human capital programs and services, and Jim has a firm understanding of tax administration operations and business priorities.”
Buggs is a senior executive with more than 25 years of experience in human resources management, with about 16 of these years within IRS. Since joining the IRS, he has held a variety of human resources and policy positions, working in areas ranging from labor relations to the Taxpayer Advocate Service.
In 2004, Buggs became the Deputy Chief Human Capital Officer. He shared principal program oversight and responsibility with the Chief Human Capital Officer to formulate and implement human capital strategies, policies and programs for more than 100,000 IRS employees. These programs include hiring and recruitment, learning and education, workforce retention and transition, labor and employee relations, planning and measures, executive services, pay for performance, and succession planning. 
Buggs holds a Bachelor of Science Degree from Bowie State University and has completed graduate work at the American and Catholic universities in Washington. 
Falcone has more than 33 years of IRS experience, managing operations support programs at the field and national levels. As chief of Agency-Wide Shared Services, Falcone will lead an organization that develops procedures and implements policy for the IRS’s internal real estate and facilities management, EEO and Diversity, personnel, procurement and customer support activities.  
Falcone has held increasingly responsible positions in field tax administration at the district, regional and campus levels, including Taxpayer Service Division Chief in Brooklyn, New York, and Quality Assurance and Management Support Division in Brookhaven, New York, before joining Resources Management (which later became Support Services) in 1992.
Falcone played a central role in the restructuring of the IRS following Congress' passage of the Restructuring and Reform Act of 1998 and led the design team that ensured the establishment of the Agency Wide Shared Services organization. He was appointed to the Senior Executive Service in 2001 and named Director, Real Estate and Facilities Management, in 2003. While serving as Acting Director, Mission Assurance, he established the new Mission Assurance organization, responsible for oversight of the IRS physical, data and personal security programs. 
Falcone holds a Bachelor of Science degree in Business and Management from the State University of New York College at Old Westbury.
 
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IR-2007-29, Feb. 8, 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of General Motors Corp. qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold.
General Motors sold 3,358 qualifying vehicles to retail dealers in the quarter ending December 31, 2006. This brings the cumulative number of qualified General Motors hybrid vehicles sold to 5,558. The credit amount and make and model of qualified vehicles sold are:
Chevrolet Silverado Hybrid 2WD, Model Years 2006 and 2007 — $250
Chevrolet Silverado Hybrid 4WD, Model Years 2006 and 2007 — $650
GMC Sierra Hybrid 2WD, Model Years 2006 and 2007 — $250
GMC Sierra Hybrid 4WD, Model Years 2006 and 2007 — $650
Saturn Vue Green Line, Model Year 2007 — $650
Taxpayers may claim the full amount of the credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
See Related Item: Hybrid Cars and Alternative Motor Vehicles
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IR-2007-28, Feb. 8, 2007
 
WASHINGTON — After reviewing the fourth quarter sales of Toyota Motor Sales USA Inc., the Internal Revenue Service announced that purchasers Toyota and Lexus vehicles may continue to claim the Alternative Motor Vehicle Credit. Given the number of vehicles sold, the phase out period for Toyota vehicles began on October 1, 2006.
 
Toyota sold 67,857 qualifying vehicles to retail dealers in the quarter ending Dec. 31, 2006. This brings the cumulative sales of qualified Toyota hybrid vehicles sold from the period of Jan. 1, 2006, through Dec. 31, 2006, to 212,073.
Taxpayers may claim the full amount of the credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th qualified vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter. The sale of Toyota ’s 60,000th qualified vehicle occurred in the quarter ending September 30, 2006.
The applicable credit amounts are as follows:
 

Qualifying Vehicle


Full Credit When Purchased By 9/30/06


Reduced Credit When Purchased From 10/1/06 through 3/31/07


Reduced Credit When Purchased From 4/1/07 through 9/30/07


Beginning 10/1/07


05, 06 and 07
			Toyota Prius

$3,150


$1,575


$787.50


$0


06 and 07
			Toyota Highlander 2WD and 4WD


$2,600


$1,300


$650


$0


07
			Toyota Camry Hybrid


$2,600


$1,300


$650


$0


06 and 07 Lexus RX 400h
			2WD and 4WD


$2,200


$1,100


$550


$0


07 Lexus GS450h


$1,550


$775


$387.50


$0

See Related Item: Hybrid Cars and Alternative Motor Vehicles
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IR-2007-25, Feb. 2, 2007
WASHINGTON — The Internal Revenue Service today named Stephen A. Whitlock as director of its new Whistleblower Office, where he will be responsible for administering the program designed to receive information that helps uncover tax cheating and to provide appropriate rewards to whistleblowers.
“This is an important new office at the IRS, and Steve brings a strong background in ethics and tax issues to help get this program off to a good start,” said IRS Commissioner Mark W. Everson. “Under Steve’s leadership, we will meet expectations from Sen. Grassley and other supporters to run a robust program.”
During his 27-year government career, Whitlock has led the IRS Office of Professional Responsibility and helped run anti-fraud and abuse programs at the Defense Department.
The IRS Whistleblower Office, which was established by the Tax Relief and Health Care Act of 2006, will process tips received from individuals who spot tax problems in their workplace, while conducting day-to-day personal business or anywhere else they may be encountered.
A reward worth between 15 percent and 30 percent of the total proceeds that IRS collects could be awarded, if the IRS moves ahead based on the information provided.
Whitlock’s office will be responsible for assessing and analyzing incoming tips. After determining their degree of credibility, his office will assign the information to the appropriate IRS office for further investigation.
As program director, Whitlock’s key responsibilities include:
Establishing the strategic direction of the program
Defining specific goals and operating guidelines
Communicating and implementing guidance to ensure the office’s success
Prior to his new appointment, Whitlock served since May 2003 as the Deputy Director of the IRS Office of Professional Responsibility, which administers the regulations governing the practice of attorneys, CPAs, and other tax professionals. From March 1999 until May 2003, he was the director of the IRS Commissioner’s Complaint Processing and Analysis Group.
Before joining the IRS, Whitlock directed several programs at the Defense Department involving the identification, investigation and correction of fraud, waste and abuse. In particular, he directed the operations of the Defense Hotline, which served as the model for Inspector General fraud, waste and abuse hotlines throughout the Executive branch.
Whitlock earned a Bachelor of Arts degree in Political Science from Auburn University, a Juris Doctor degree from Catholic University and a Masters in Business Administration degree from George Mason University. 
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IR-2007-73, March 29, 2007
 
WASHINGTON — The Internal Revenue Service and Treasury Department today announced the release of proposed regulations that would disallow foreign tax credits for foreign taxes purportedly paid in connection with certain artificially engineered, highly structured transactions.
Foreign tax credits are designed to relieve U.S.taxpayers from double taxation of their foreign source income. Transactions addressed by the regulations, in contrast, are   structured so that a U.S.taxpayer voluntarily subjects itself to foreign tax where an ordinary business transaction generally would result in little or no foreign tax paid by the U.S. taxpayer. 
  “The proposed regulations complement the vigorous enforcement efforts of the IRS to identify and, in appropriate cases, to challenge the tax benefits claimed in these foreign tax credit generator transactions under principles of existing law,” said IRS Chief Counsel Donald L. Korb.
The significant impact of these transactions on the U.S.tax base was brought to the attention of the IRS by members of the Joint International Tax Shelter Information Centre (JITSIC). JITSIC is an information exchange arrangement under which the US, the UK, Canada and Austrailia exchange information bilaterally on tax avoidance schemes.
The IRS is aggressively pursuing cases uncovered through JITSIC or other sources involving inappropriate claims of foreign tax credits. Foreign tax credit abuse is among the IRS’s top compliance concerns for large corporate taxpayers.
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IR-2007-71, March 29, 2007
WASHINGTON — The Internal Revenue Service today announced that it has reached a settlement with the law firm of Jenkens & Gilchrist, which agreed that they are subject to a penalty of $76 million. The penalty stems from the firm’s promotion of abusive and fraudulent tax shelters and violation of the tax law concerning tax shelter registration and maintenance and turnover to the IRS of tax shelter investor lists.   
“While it is unfortunate that the 56-year-old national firm of Jenkens & Gilchrist is terminating its legal practice, this should be a lesson to all tax professionals that they must not aid or abet tax evasion by clients or promote potentially abusive or illegal tax shelters, or ignore their responsibilities to register or disclose tax shelters,” said IRS Commissioner Mark W. Everson. “Pursuing abusive tax shelters is a top priority for the IRS.”
The firm aggressively marketed potentially abusive tax shelters to high-net-worth individuals. Some of the packages marketed to these individuals included listed transactions such as COBRA (Currency Options Bring Reward Alternatives); BEST (Short Option/Basis Enhancing Securities Transaction); BLISS (Basis Leveraged Investment Swap Spreads); OPS (Option Partnership Strategy); BEDS (Basis Enhancing Derivatives Structure); and BOSS (Bond & Option Sale Strategy).
The firm also marketed two transactions that are not listed transactions — HOMER (Hedge Option Monetization of Economic Remainders) and BART (Basis Adjustment Remainder Trusts).
The agency estimates that 1,400 investors are affected by the firm’s advice and will owe interest and penalties on their underpayment of tax. Jenkens & Gilchrist, which was once a 600-lawyer national firm, is in the process of winding down its legal practice and business affairs. 
The national law firm of Jenkens & Gilchrist is composed of a corporation in Dallas, Texas; a corporation in Chicago, Illinois; a partnership in Los Angeles, California; and a partnership in New York City.
Related Items:

Department of Justice news release


Abusive Tax Schemes


Compliance & Enforcement

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IR-2007-69, March 26, 2007
WASHINGTON — The Internal Revenue Service today announced the appointment of David R. Williams as Director, Electronic Tax Administration and Refundable Credits. Reporting to Williams and focusing entirely on administration of the Earned Income Tax Credit program will be Debra Holland, Director, EITC.
Williams most recently served as the IRS Director in charge of the Earned Income Tax Credit, Health Coverage Tax Credit and Telephone Excise Tax Refund programs. He will maintain responsibility for those programs in his new capacity as he assumes the responsibility for Electronic Tax Administration including its e-file, e-services and internet programs.
“We’re very fortunate to have someone with David’s expertise and background to take over this very important program,” said IRS Commissioner Mark W. Everson. “He has the knowledge and experience to bring together the private sector to work with the IRS to achieve significant advances in our shared goal of effective electronic tax administration. We see this move as a step forward for both the program and the IRS as a whole.”
The Electronic Tax Administration Office (ETA) is responsible for all aspects of the growing exchange of electronic information between the IRS and individual taxpayers, businesses and practitioners. This includes the IRS e-file program now used by most taxpayers, the IRS.gov web site, and the development of additional electronic interactions with taxpayers and tax practitioners.
Prior to joining the IRS in 1998 as Chief of Communications and Liaison under IRS Commissioner Charles O. Rossotti, Williams was a Deputy Assistant Secretary with the Department of the Treasury and had worked on Capitol Hill. He holds a Master of Public Policy from the John F. Kennedy School of Government at Harvard University, and a Bachelor of Science in Business Administration from Colorado State University.
Holland most recently served as the Director, Pre-Refund Program Office, and she previously served as the Director of Business Systems Planning within the Wage and Investment Operating Division. Holland has held top-level positions in the IRS Joint Operations Center and Accounts Managements organizations.
“Debra brings a unique blend of business management and technology expertise to the position that will serve her well as she oversees the important EITC program,” said Richard Morgante, Commissioner of the IRS Wage and Investment Division.
As Director of EITC, Holland will balance the IRS’s nationwide outreach aimed at ensuring that every eligible taxpayer receives the credit with the equal responsibility to ensure that only those eligible for the credit receive it.
Williams and Holland are working to ensure a smooth transition. The moves will be effective later this year.
Related Items:
Telephone Excise Tax RefundEarned Income Tax CreditHealth Coverage Tax Credite-file
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IR-2007-68, March 23, 2007
 
WASHINGTON — With the filing deadline approaching, the Internal Revenue Service today announced enhancements to the interactive Online Payment Agreement application on IRS.gov.
The Web-based application allows eligible taxpayers or their authorized representatives to self-qualify, apply and receive immediate notification of approval for installment agreements – including paperless direct debit agreements.
Two recent enhancements provide added functionality. The first permits individuals who have not yet received a bill to establish pre-assessed agreements on current tax year Form 1040 liabilities. The second allows practitioners with valid authorizations to remain in the application to request agreements for multiple clients.
The IRS estimates that over 75% of those eligible for an installment agreement can establish one using this application. Since launching in October, about 3,000 taxpayers have successfully used it to set up a payment agreement with the IRS.
Paying taxes on time and in full avoids unnecessary penalties and interest. However, taxpayers who cannot pay in full may request a payment agreement. To be eligible, a taxpayer must first file all required tax returns and be current with estimated tax payments if applicable.
Individuals with a balance due notice can access the application using the following information:
Taxpayer identification number (generally a Social Security Number) and
Personal identification number, which can be established online using the caller identification number from the balance due notice.
Individuals who have not yet received a bill must provide the following information to establish pre-assessed agreements on current year returns:
The balance due shown on the return
Taxpayer identification number
Spouse’s taxpayer identification number (if applicable)
Date of birth
Adjusted Gross Income from last year’s income tax return
Total tax from last year’s income tax return.
Three payment options are available when applying online:
Pay in full — Taxpayers who pay within 10 days save interest and penalties.
Short-term extension — Receive a short-term extension of up to 120 days. No fee is charged, but additional penalties and interest will accrue.
Monthly payment plan — A user fee will be added to the amount owed, and interest and penalty will continue to accrue on the unpaid balance.User fees are $105 for non-direct debit agreements and $52 for direct debit agreements. A reduced fee of $43 is available for individuals with income at or below certain levels.
To access the application, use the pull-down menu under “I need to...” on the front page of IRS.gov and select “Set Up a Payment Plan.” The application is available Monday through Friday from 6 a.m. to 12:30 a.m., Saturday from 6 a.m. to 10 p.m. and Sunday from 4 p.m. to midnight (all are Eastern Time).
Related Item: Payment Plans, Installment Agreements
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IR-2007-67, March 22, 2007
WASHINGTON — The Internal Revenue Service is providing a further extension, until June 30, 2007, of the deadline for current and former U.S.-based employees of foreign embassies, consular offices and missions and international organizations to participate in a one-time settlement initiative to resolve outstanding tax matters related to their employment.
Following requests from several embassies, the date is again being extended to make certain those wishing to participate in the initiative have the opportunity to do so.
The offer is open to employees of those organizations who are U.S. citizens, green-card holders and foreign employees who have tax obligations. Accredited diplomatic personnel are generally exempt from income taxes on their wages under the Internal Revenue Code and international treaties or agreements.
The IRS estimates that as many as half of these employees subject to U.S. tax fail to report their wages, claim deductions they are not entitled to, incorrectly establish SEP/IRA retirement plans, fail to pay self-employment tax or fail to file tax returns.
To participate, employees must submit amended or original tax returns for tax years 2004 and 2005 that properly reflect their income and expenses. Participants in the settlement will not be required to provide tax year 2003 returns, which was previously part of the settlement eligibility requirement. In addition, participants with erroneously established SEP/IRA plans will not be required to distribute amounts contributed to these SEP/IRAs for tax years prior to the 2004 tax year. This change follows discussions with embassies and provides consistency with the income tax portion of the settlement initiative.
IRS will remove the 2003 tax year issues from the settlement elections previously received from taxpayers.
IRS encourages those affected taxpayers to act quickly so to avoid a future audit process that could prove costly. Foreign embassy, consular office or international organization employees who fail to come forward may be subject to IRS audits and penalties which could cover more than just three years.
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IR-2007-66, March 22, 2007
WASHINGTON — The Internal Revenue Service is inviting civic-minded individuals to help improve the nation’s tax agency by applying to be members of the Taxpayer Advocacy Panel. The Panel provides a forum for citizens from each state to make suggestions regarding IRS decision making.
The mission of the Panel is to listen to taxpayers, identify taxpayers’ issues, and make recommendations for improving IRS service and customer satisfaction. Taxpayer Advocacy Panel (TAP) members:

Provide opportunities for citizen input and make recommendations to the IRS on customer-service issues.


Identify and prioritize taxpayer issues.


Report annually to Treasury, the IRS and the National Taxpayer Advocate.


Participate in meetings where taxpayers are invited to raise issues about their experiences with the IRS. 


Participate in taxpayer outreach opportunities by speaking to individuals and groups about the Panel.

“As the IRS continues to examine taxpayers’ needs in the area of service, the Taxpayer Advocacy Panel has emerged as a vital source for gathering and providing information from the perspective of taxpayers,” said Nina E. Olson, National Taxpayer Advocate. “TAP’s role will ultimately aid taxpayers by helping the IRS to provide them with the top quality service they deserve."
To qualify as a TAP member, applicants must be U.S. citizens and be able to commit 300 to 500 hours during the year to the Panel. In addition, they must be current with their tax obligations and pass a criminal background check. 
This year TAP is accepting applications from U.S. citizens who reside in the following locations: Alabama, Arkansas, California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, New Mexico, Nevada, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, West Virginia, Wisconsin, Utah, Washington, Wyoming.
The application form will be available, and may be submitted electronically online, at www.improveirs.org (see link below) from March 19 through April 30, 2007.
If you do not have access to a computer, call 1-888-912-1227 to request a paper application form.
All applications, both electronic and paper, must be received no later than April 30, 2007.
Links:

Submit applications online 


Taxpayer Advocate Service

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IR-2007-64, March 19, 2007
WASHINGTON — The Internal Revenue Service has acknowledged the certification by General Motors Corp. that its 2007 Saturn Aura Hybrid vehicle meets the requirements of the Alternative Motor Vehicle Credit as a qualified hybrid motor vehicle.
The credit amount for the hybrid vehicle certification of the 2007 Saturn Aura Hybrid is $1,300.
Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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OIR-2007-63, March 16, 2007
 
WASHINGTON — The Internal Revenue Service announced today that its 2006 Data Book is available on the IRS Web site. The report describes activities conducted by the IRS from October 1, 2005, through September 30, 2006, and includes information about returns filed and taxes collected, enforcement, taxpayer assistance and the IRS budget and workforce.
During Fiscal Year (FY) 2006, the IRS collected more than $2.2 trillion in tax and processed over 228 million returns. Over 80 million returns, including 54.3 percent of individual income tax returns, were filed electronically in FY 2006. Over 108 million individual income tax return filers received tax refunds totaling $243 billion. In FY 2006, IRS spent an average of 42 cents to collect each $100 of tax revenue.
IRS examined nearly 1.3 million individual income tax returns in FY 2006, more than double the number examined in FY 2000. Examinations of business tax returns grew for the second year in a row, reaching over 52,000 in 2006. IRS personnel answered over 32.6 million toll-free calls from taxpayers, and the IRS Web site received about 194 million visits.
Printed copies of the Fiscal Year 2006 IRS Data Book, Publication 55B, will be available by mid-April 2007 from the U.S. Government Printing Office. To obtain a copy, write to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954, call (202) 512 1800 for voice mail or fax a request to (202) 512-2250.
Related Item: 2006 Data Book 
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WASHINGTON — Under the law, retailers and other businesses that sell prepaid phone cards for long-distance service usually qualify for the telephone tax refund.
The Internal Revenue Service today reminded these businesses to check their eligibility for this special refund before filing their 2006 federal income tax return. Normally, the phone card retailer, not the phone company that issues the card or the customer who uses the card, is responsible for paying the three-percent federal excise tax. As long as the phone card was not restricted to local-only service, the retailer is eligible to request the telephone tax refund.
The government stopped collecting the long-distance excise tax last August after several federal court decisions held that the tax does not apply to long-distance service as it is billed today. Federal officials also authorized a one-time refund of the 3 percent federal excise tax collected on service billed during the previous 41 months, stretching from the beginning of March 2003 to the end of July 2006.
In most instances, the law places the responsibility for the collection of the excise tax on the carrier. The carrier, usually a phone company, has transferred the phone card to a retailer or other business. This retailer or other business is referred to as a transferee. The transferee most often is the first person that is not a carrier to whom a phone card is transferred. The transferee is generally liable for the payment of the excise tax, not the carrier.
Because the carrier is not usually liable for the tax, the carrier is not usually eligible for the refund. Also under the law the holder or end-user, that is the customer who purchases a phone card to use and not to resell, is ordinarily not liable for the tax and not entitled to the refund.
Businesses request the refund by filling out Form 8913, Credit for Federal Telephone Excise Tax Paid, and attaching it to their regular income-tax return. More information on the refund is available in the “Telephone Excise Tax Refund” section on the front page of IRS.gov.
The three-percent federal excise tax continues to apply to local-only phone service.
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IR-2007-58, March 13, 2007
WASHINGTON — The Internal Revenue Service today reminded taxpayers that the address of the official IRS government Web site is www.irs.gov.
Taxpayers may be confused by the proliferation of Internet sites that contain some form of the Internal Revenue Service name or IRS acronym with a .com, .net, .org or other designation in the address instead of .gov. Since many of these sites also bear a striking resemblance to the real IRS site, taxpayers may be misled into thinking that the site they have accessed is indeed the official IRS government site. These sites are not the official IRS Web site and have no connection to the official IRS site or to the IRS.
“There is one legitimate IRS site: IRS.gov,” said IRS Commissioner Mark W. Everson. “Always check carefully and make sure you know what Web site you are using.”
Because .com, .net and .org are such common parts of Internet addresses, taxpayers may automatically or inadvertently type these extensions, instead of .gov, into the address line of their Web browser when trying to find the genuine IRS Web site.
Following recent concerns that Internet sites may be causing confusion among taxpayers, the IRS is working with the Treasury Inspector General for Tax Administration on this matter. TIGTA has authority to review issues protecting the integrity of tax administration, including impersonation of the IRS. The IRS and TIGTA are committed to ensuring that taxpayers are not misled.
Although the IRS Web site offers interactive features, the tax or private financial information that these features ask the taxpayer for is extremely limited. The IRS reminds consumers who access unfamiliar sites, or sites they have never dealt with before, that they should never reveal any personal or financial information, such as credit, bank account or PIN numbers, without verifying the validity of the site.
The IRS also reminds consumers to be alert to an on-going Internet scam in which consumers receive an e-mail informing them of a federal tax refund. The e-mail, which
claims to be from the IRS, directs the consumer to a link — often a Web site resembling the IRS Web site — that requests personal and financial information, such as Social Security number and credit card information.   
This scheme is an attempt to trick the e-mail recipients into disclosing their personal and financial data. The practice is called “phishing” for information.
The information fraudulently obtained is then used to steal the taxpayer’s identity and financial assets. Generally, identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns.
Taxpayers who receive an unsolicited e-mail purporting to be from the IRS should never click on any links in the message, open any attachments or provide any personal or financial information to the sender.
Related Items:

IR-2007-37,  Fraudulent Telephone Tax Refunds, Abusive Roth IRAs Top Off 2007 “Dirty Dozen” Tax Scams

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IR-2007-57, March 12, 2007
WASHINGTON — Today the Internal Revenue Service reminds certain corporations with assets of $10 million or more and whose tax year is the calendar year to e-file their returns or file for an extension by the March 15 filing deadline. Corporate taxpayers who chose to request extensions are encouraged to submit their requests through e-file.
"We are seeing significant increases in the number of electronically filed corporate tax returns due to the e-filing requirement for certain corporate taxpayers, the availability of enhanced electronic filing software, and the benefits realized by corporate taxpayers," said LMSB Commissioner Deborah M. Nolan. "E-filing brings increased efficiencies to the IRS which will ultimately benefit all taxpayers."
 
More than 22,000 large and mid-sized corporations with assets of $10 million or more that file at least 250 federal returns each year, such as Form W-2 and Form 1099, are now required to file electronic returns.  Treasury temporary regulations requiring certain corporations to e-file became effective in January 2005, and have been phased in over a two year period.
 
Businesses which operate on a calendar year rather than a fiscal year basis must file their returns for the previous year or file an application for an extension by March 15, 2007. A corporate taxpayer who e-files an application for an extension using Form 7004 will receive immediate acknowledgement of that request and whether it has been accepted or rejected.
The requirement that businesses e-file their returns is determined by type of tax return to be filed, amount of the filer's assets, and the total number of federal returns filed by the business.  By the end of the first week in March, more than 1,800 large and mid-sized corporations submitted their tax returns electronically.  This represents a 250% increase over the number of large and midsized electronic returns filed during in same period last year.
Since introducing corporate e-file in 2004, IRS has continued to streamline its processes and improve e-filing technology.  The IRS continues to work closely with e-file software developers and e-file service providers to ensure corporate taxpayers a smooth transition to electronic filing.   According to Don McPartland, an IRS senior executive, the agency's goal is to continue to streamline e-file processes, integrate e-file software into existing tax preparation systems, and provide quality service to IRS's many stakeholders. 
Detailed e-filing guidance and instructions are available at this Web site.   
Related Item:
Form 7004PDF, Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns
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IR-2007-56, March 12, 2007
WASHINGTON — The Internal Revenue Service today reminded corporations, facing a March 15 tax-filing deadline, that they can use interest factors posted on IRS.gov to help them figure the one-time telephone excise tax refund.
Corporations, including S corporations, preparing calendar-year 2006 income-tax returns with a March 15 due date, should use the interest factors posted at /pub/irs-dft/corp3-15.pdfPDF, rather than those in the instructions for Form 8913, Credit for Telephone Excise Tax Paid. By law, the interest rates that apply to corporate tax overpayments are lower than those that apply to other taxpayers.
The interest factors in the Form 8913 instructions apply to non-corporate taxpayers with an April 17 filing deadline, including individuals, estates, trusts and partnerships that are basing their refund request on the actual amount of tax paid. Except for individuals choosing the standard amount, all taxpayers must use Form 8913 to request the telephone tax refund and related interest. This form is then attached to the taxpayer’s regular income-tax return.
The government stopped collecting the long-distance excise tax last August after several federal court decisions held that the tax does not apply to long-distance service as it is billed today. Federal officials also authorized a one-time refund of the 3-percent federal excise tax collected on service billed during the previous 41 months, stretching from the beginning of March 2003 to the end of July 2006.
The tax continues to apply to local-only phone service.
Releated Item: Telephone Excise Tax Refund
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IR-2007-54, March 12, 2007          
 
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning April 1, 2007.  The interest rates are as follows: 

eight (8) percent for overpayments [seven (7) percent in the case of a corporation];


eight (8) percent for underpayments;


ten (10) percent for large corporate underpayments; and


five and one-half (5.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.  Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.  The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during January 2007.
Releated Item: Rev. Rul 2007-16
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IR-2007-51, March 6, 2007
WASHINGTON — Unclaimed refunds totaling approximately $2.2 billion are awaiting about 1.8 million people who failed to file a federal income tax return for 2003, the Internal Revenue Service announced today. However, in order to collect the money, a return for 2003 must be filed with an IRS office no later than Tuesday, April 17, 2007.
The IRS estimates that half of those who could claim refunds would receive more than $611. In some cases, individuals had taxes withheld from their wages, or made payments against their taxes out of self-employed earnings, but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.
“Everybody who needs to should file their tax return. But you simply can’t get the money we owe you unless you file a return,” said IRS Commissioner Mark W. Everson.
In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury. For 2003 returns, the window closes on April 17, 2007. The law requires that the return be properly addressed, postmarked and mailed by that date. There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
The IRS reminds taxpayers seeking a 2003 refund that their checks will be held if they have not filed tax returns for 2004 or 2005. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.
By failing to file a return, individuals stand to lose more than refunds of taxes withheld or paid during 2003. Many low-income workers may not have claimed the Earned Income Tax Credit (EITC). Although eligible taxpayers may get a refund when their EITC is more than what they owe in tax, those who file returns more than three years late would be able only to apply it toward the taxes they owe (if any). They would not be able to receive a refund if the credit exceeded their tax.
Generally, unmarried individuals qualified for the EITC if in 2003 they earned less than $33,692 and had more than one qualifying child living with them, earned less than $29,666 with one qualifying child, or earned less than $11,230 and had no qualifying child. Limits are slightly higher for married individuals filing jointly.
Current and prior year tax forms and instructions are available on the Forms and Publications page of the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). Information about the Earned Income Tax Credit and how to claim it is also available on this Web site. Taxpayers who need help also can call the toll-free IRS help line at 1-800-829-1040.
A state-by-state breakdown of estimates for individuals who failed to file a 2003 return with a refund due is attached.
Related Items:

Forms & Publications


EITC


State-by-state breakdown of estimates

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Update Jan. 6, 2014 — Use Form 656 BookletPDF, Offer in Compromise, to find the correct form to use. 
IR-2007-50, March 5, 2007
WASHINGTON — The Internal Revenue Service announced today that the newly revised taxpayer application for an offer in compromise, the Form 656 package, is now available.
An offer in compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax liability. Under certain circumstances, the IRS has the authority to settle federal tax liabilities by accepting less than full payment.
"We hope that these changes help more people who qualify satisfy their tax obligations,” said IRS Commissioner Mark W. Everson.
The Form 656 package was last revised in 2004 to help taxpayers correctly and completely prepare an offer and reduce the chances of the offer being returned for omissions. The new form retains the taxpayer burden reduction features while adding significant changes as a result of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA). These changes include:
New payment terms and submission rules;
	 
A new matrix to assist in determining the number of Forms 656, $150 application fee(s), and TIPRA payments to submit to the IRS depending on the number of individuals submitting the offer, and the types of liabilities being compromised;
	 
A checklist, redesigned as a result of TIPRA, to help taxpayers determine if they are eligible to file an OIC before they invest time in form preparation;
	 
Revised Section V defining the contractual terms of the offer;
	 
OIC Application Fee and Payment Worksheet to determine eligibility for claiming exception to the payment of the $150 application fee and the mandatory offer payments imposed by the TIPRA legislation;
	 
Form 656–PPV Periodic Payment Voucher, a removable form designed to be used to remit the required TIPRA payments to the IRS while the offer is under investigation; and
	 
Form 656-A, renamed Income Certification for Offer in Compromise Application Fee and Payment.
Applicants may order the package by calling the IRS toll-free at 1-800-TAX-FORM (1-800-829-3676). The Form 656 package is now available on the IRS.gov Web site in the Forms and Publications section and will be available at IRS walk-in offices shortly.
Related Items:

Fact Sheet 2007-16, Revisions to Form 656, Offer in Compromise


Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)

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Update — For current fees, visit the Forms & Publications page to find the most current Form 8802. 
IR-2007-48, March 1, 2007
WASHINGTON — Persons who pay user fees associated with Form 8802, Application for United States Residency Certification, will be able to pay them electronically through the IRS Web site beginning April 2, 2007.
The new online payment option can be accessed on the “Electronic Payment of User Fees” page on IRS.gov. Applicants should select Form 8802 from the list of available user fees. The Web site will provide information about the user fee and the fee schedule. When the transaction is completed, the applicant will receive a confirmation number and must include that number on page one of Form 8802 prior to mailing.
This new payment option, intended to help those applying for U.S. residency certification, was announced in Revenue Procedure 2007-22.
Form 8802 is used to request proof of a taxpayer’s U.S. residency status for federal tax purposes to claim benefits under an income tax treaty or an exemption from a value added tax (VAT) imposed by a foreign country. The IRS provides residency certification to the applicant on Form 6166.
A single Form 8802 can be used to request multiple Forms 6166. The initial user fee of $35 covers a single Form 8802 requesting up to 20 Forms 6166 for a single Taxpayer Identification Number (TIN), regardless of the country for which certification is requested or the tax period to which the certification applies. An additional $5 covers up to 20 additional Forms 6166 on the same Form 8802. Applicants are advised to include all Forms 6166 requests on a single Form 8802 to avoid a new $35 user fee charge for processing a second Form 8802 application.
Additional information regarding U.S. residency certification and the online electronic payment option are listed below.
Related Items:

Electronic Payment of User Fees


Revenue Procedure 2007-22PDF


IRS Announces User Fee for U.S. Residency Certification


Revenue Procedure 2006-35PDF


Notice 2006-90PDF

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IR-2007-47, March 1, 2007
WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program topics for resolution involving a controversy, a dispute or an unnecessary burden on taxpayers.
Though submissions can be made at anytime for consideration in the IIR program, submitted issues received by March 31, 2007, will also be considered for the 2007-2008 Treasury and IRS Guidance Priority List.
The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers. 
Recent results of the IIR program include:
Clarification regarding circumstances when facsimile signatures may be used to sign employment tax forms. (Revenue Procedure 2005-39)
Explanation of the circumstances under which insurance companies that make incentive payments to health care providers will be permitted to include those payments in unpaid losses. The revenue procedure also provides procedures under which a taxpayer may obtain automatic consent of the Commissioner to change their accounting method for such payments. (Revenue Procedure 2004-41)
For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue.  The goal is to recommend guidance to resolve the issue.  This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations.
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Related Item:
Revenue Procedure 03-36PDF