etrent17/irs-articles huggingface dataset:
IR-2008-58, April 11, 2008
WASHINGTON — The IRS announced today that it will issue guidance for businesses on how the special 50 percent depreciation allowance that was included in the Economic Stimulus Act of 2008 can be used to make capital investments this year. Until the guidance is issued, businesses may rely on the regulations previously issued regarding bonus depreciation.
The Economic Stimulus Act of 2008 provided a significant tax incentive for businesses to make capital investments by adding a special 50 percent depreciation allowance for qualifying purchases. This special “bonus depreciation” allowance is available to all businesses and applies to most types of tangible personal property and computer software acquired and placed in service in 2008. It allows taxpayers to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available. 
The IRS recognizes that questions may arise as taxpayers evaluate the benefits of utilizing the new 50 percent bonus depreciation. Because the special 50 percent depreciation allowance contained in the Economic Stimulus Act of 2008 is generally patterned after prior bonus depreciation statutes, the Treasury Department and the IRS intend to issue guidance allowing taxpayers generally to rely on Treas. Reg. Sec. 1.168(k)-1 for purposes of the bonus depreciation provision of the Economic Stimulus Act of 2008.
As part of the Department’s continuing efforts to help taxpayers take advantage of the business provisions included in the Economic Stimulus Act of 2008, the Treasury Department and IRS are also preparing additional guidance to address a number of issues that have been identified. Taxpayers are encouraged to bring issues to the attention of the IRS that may require expedited guidance to ensure that taxpayers are able to fully realize the benefits of these incentives. 
The upcoming guidance will also cover the new increased limits that businesses can expense under the Economic Stimulus Act of 2008. Generally, the new law set a limit of $250,000 that a business can expense during 2008, up from the limit previously set for 2008 of $128,000.
A detailed description of the business provisions contained in the Economic Stimulus Act of 2008 is available in IRS Publication 553, Highlights of 2007 Tax ChangesPDF. 
Businesses and tax professionals may e-mail the IRS at Notice.Comments@irscounsel.treas.gov regarding issues related to the business provisions of the Economic Stimulus Act of 2008 that they would like addressed in the upcoming guidance. They should include “IR-2008-58” in the subject line of the e-mail.
Subscribe to IRS Newswire
IR-2008-55, April 3, 2008
WASHINGTON — The Internal Revenue Service today urged taxpayers who need additional time to complete their tax returns to submit their requests for an automatic extension electronically by April 15. E-filing a request for an extension is convenient, safe and secure, and taxpayers receive confirmation to keep with their records.
The extension gives taxpayers until Oct. 15 to file the tax return. An extension does not give the taxpayer an extension of time to pay. Those who owe taxes can make a payment when they file the extension either by mailing a check or by several electronic payment methods, such as electronic funds withdrawals from bank accounts and credit card payments.
Some taxpayers can wait until after April 15 to file a return, pay any taxes due and make IRA contributions for 2007. As a general rule, those eligible get the extra time without having to ask for it. Eligible taxpayers include:

Members of the military serving in Iraq, Afghanistan or other combat zone localities. Normally, the postponement is until 180 days after the service member leaves the combat zone.


Disaster-area taxpayers in four states affected by recent floods, storms and tornadoes. The postponement is until May 6 in parts of Illinois, May 19 in parts of Georgia and parts of Missouri and May 27 in parts of Arkansas.

IRS expects to receive 10.3 million extension requests during 2008 compared with 10 million extensions received during 2007. The IRS expects to receive almost 2 million extension requests electronically this year.
Taxpayers can get an automatic six-month extension of time to file their tax returns by filing Form 4868PDF, Automatic Extension of Time to File.
It is also important for extension filers to remember that Oct, 15 is not only the due date for their tax returns, it is also the last date on which a return can be filed that will result in an economic stimulus payment. Taxpayers who file earlier, however, will get their economic stimulus payments sooner.
Taxpayers can e-file the extension from a home computer or through a tax professional who uses e-file. Taxpayers can e-file their extensions at no cost. Some companies offer free e-filing of extensions through Free File.
 
 

2008 FILING SEASON STATISTICS


Cumulative through the weeks ending 3/30/07 and 3/28/08
 


Individual Income Tax Returns


2007


2008


% Change


Total Receipts


80,800,000


86,817,000


7.4%


Total Processed


77,171,000


81,644,000


5.8%


 


 


 


 


E-filing Receipts:


 


 


 


TOTAL


56,994,000


62,237,000


9.2%


Tax Professionals


40,910,000


43,366,000


6.0%


Self-prepared


16,084,000


18,870,000


17.3%


 


 


 


 


Web Usage:


 


 


 


Visits to IRS.gov


102,190,000


121,714,000


19.1%


 


 


 


 


Total Refunds:


 


 


 


Number


68,274,000


69,823,000


2.3%


Amount


$163.432


Billion


$172.017


Billion


5.3%


Average refund


$2,394


$2,464


2.9%


 


 


 


 


Direct Deposit Refunds:


 


 


 


Number


47,339,000


50,788,000


7.3%


Amount


$130.331


Billion


$140.216


Billion


7.6%


Average refund


$2,753


$2,761


0.3%

 
Subscribe to IRS Newswire
IR-2008-54, April 2, 2008
WASHINGTON — Internal Revenue Service Chief Counsel Donald L. Korb has selected David Hasen as the 2008-2009 Professor in Residence.
The IRS professor in residence reports directly to the chief counsel and provides advice and assistance on a wide array of legal issues within the scope of his or her expertise.
“We are excited to have David join us in the fall to carry on the fine tradition we reinstituted last year when first Calvin Johnson, and after him Gregg Polsky, joined us as professors in residence,” Korb said. “It is an extremely worthwhile program for both our lawyers, particularly the more recent hires, and for the law professors.”
Polsky’s term as professor in residence will end on June 30. Hasen will serve a nine-month term starting in late October.
Hasen has been an assistant professor at the University of Michigan Law School since 2002.  Also during the spring 2008 term, he has been a visiting faculty member at the University of Southern California Gould School of Law. Previously, he taught as a visitor at Hastings College of the Law.
asen has written about the taxation of financial instruments, the tax consequences of unwinding transactions and the taxation of advance payments. Hasen worked as an associate in the tax departments of Orrick, Herrington & Sutcliffe LLP, and Wilson Sonsini Goodrich & Rosati, P.C., in San Francisco. He holds a J.D. from Yale Law School, a Ph.D. from Harvard University and a B.A. from Reed College.
The IRS Office of Chief Counsel revived its Professor in Residence program in 2006 after being dormant since the late 1980s. The program provides some of the nation’s top legal academicians the opportunity to contribute to the development of legal tax policy and administration.
Subscribe to IRS Newswire
IR-2008-53, April 2, 2008
WASHINGTON — The Internal Revenue Service today reminded taxpayers and tax-preparation volunteers that information about the economic stimulus payment is available in Spanish.
Information also is available for Spanish-speaking retirees, disabled veterans and low-wage workers who normally do not have a tax filing requirement but must file a tax return this year to receive an economic stimulus payment. All stimulus payment details are available at Centro de Información Sobre los Pagos de Estímulo Económico.
Starting in May, the IRS will issue economic stimulus payments of up to $600 ($1,200 for married couples) for people who have an adjusted gross income of less than $75,000 in adjusted gross income ($150,000 for married couples). There also is a payment of $300 for each qualifying child younger than 17.
People who normally do not pay taxes because their income is too low or nontaxable also may be eligible. People in this category must have at least $3,000 in qualifying income from, or a combination from, earned income, nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement Board.
To be eligible, people cannot be dependents or eligible to be dependents on another’s tax return. Eligible people must also have a valid Social Security number. People with Individual Taxpayer Identification Numbers are not eligible.
Most taxpayers just need to file a tax return as usual. The IRS will take care of the calculations. However, the eligible retirees, disabled veterans and low-income workers who normally do not file a return, must file a Form 1040A and write “economic stimulus payment” across the top.
Newly translated information includes the Package 1040A-3, an 8-page package of instructions, a sample Form 1040A and a blank Form 1040A. It contains everything needed to file a return immediately. Also, Free File – Economic Stimulus Payment is now available in Spanish.
Just click ‘Español” at www.irs.gov to go to the main El IRS en Español page.
Subscribe to IRS Newswire
IR-2008-52, April 2, 2008
WASHINGTON — The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee. The deadline for submitting applications is May 30, 2008.
Established in 1991, IRPAC provides recommendations to IRS leadership on a wide range of information reporting and administration issues. The committee presents a report to the IRS commissioner each year at a public meeting in the fall.
In order to effectively advise the IRS commissioner and executives, members are drawn from substantially diverse backgrounds. Members include representatives of the taxpaying public, the tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, insurance, foreign financial institutions and the payroll community.
"IRPAC plays an important role in the nation's tax system," said IRS Commissioner Doug Shulman. "The group's broad knowledge of information reporting is invaluable to our tax administration efforts."
IRPAC is comprised of up to 35 members who are appointed to three-year terms by the commissioner. Each year, approximately one-third of the membership terms expire. Nominations are currently being accepted for up to six appointments that begin January 2009.
Interested parties may nominate themselves or a qualified person for membership. All nominees must complete an application and federal tax check waiver form. In addition, FBI background checks using fingerprints and, if applicable, practitioner checks are required of all nominees.
More information, including application packages, is available on the Tax Professional’s Page on this Web site. Questions about the nomination process can be sent to the following e-mail address:  *public_liaison@irs.gov.
Related Item: Information Reporting Program Advisory Committee (IRPAC) Open Season
 Subscribe to IRS Newswire
IR-2008-74, May 28, 2008
WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the 2009 Low Income Taxpayer Clinic (LITC) grant application process is now open.
The LITC grant program is a federal program administered by the Taxpayer Advocate Service. The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels or who believe that an IRS system or procedure is not working as it should.
Under the LITC grant program, the IRS awards matching grants of up to $100,000 per year to develop, expand or maintain low income taxpayer clinics. The program is in its tenth year and continues to expand. To date in 2008, the LITC Program Office has awarded LITC grants to 154 organizations in 50 states, the District of Columbia, Puerto Rico and Guam.
LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. The clinics also provide taxpayer education and outreach for taxpayers who speak English as a second language.
Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics. It is available at www.irs.gov or local IRS offices.
Examples of qualifying organizations include:

Clinical programs at accredited law, business or accounting schools, whose students represent low income taxpayers in tax disputes with the IRS.
	 


Organizations exempt from tax under Code Section 501(a) that represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.

The application period for this grant will run from May 27, 2008, through July 7, 2008. The grant will cover the 2009 grant cycle, from Jan. 1, 2009, through Dec. 31, 2009.
Applications must be postmarked or filed electronically by July 7, 2008.
Copies of the 2009 Grant Application Package and Guidelines, IRS Publication 3319PDF (Rev. 5-2008), are available at /advocate. Applicants may also order application packages from the IRS Distribution Center by calling 1-800-829-3676.
Applicants can also file electronically at Grants.gov. Those applying electronically should use the Funding Number TREAS-GRANTS-052009-001.
Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (202) 622-4711, not a toll-free call, or by e-mail at LITCProgramOffice@irs.gov.
Subscribe to IRS Newswire
IR-2008-72, May 23, 2008
WASHINGTON –– The Internal Revenue Service today released the spring 2008 issue of the Statistics of Income Bulletin, featuring preliminary data from the 138.4 million individual tax returns filed for tax year 2006. This issue also features data on high-income returns filed for tax year 2005.
This edition of the quarterly Bulletin provides the latest view of the federal individual income tax base. For example, adjusted gross income in tax year 2006 rose 8.4 percent from the prior year to about $8 trillion, and taxable income rose 9 percent to roughly $5.6 trillion, according to the data, which may be subject to some future revisions.
This Bulletin also features articles on the following:

Trends in non-cash charitable contributions, including a big drop in car donations in 2005 that was likely related to tax law changes.
	 


Statistics on cash flows and holdings of Individual Retirement Arrangements (IRAs). For example, at the end of 2004, almost 51 million taxpayers held roughly $3.3 trillion in IRAs.
	 


Repatriation of funds by U.S. corporations due to the one-time received dividend deduction enacted in the American Jobs Creation Act of 2004.
	 


Statistics on federal estate tax returns with gross estates greater than $1.5 million.
	 


Growth in the number and assets of taxable Real Estate Investment Trust subsidiaries.

To access a broad range of tax statistics, click on the Tax Statistics page. To view past SOI Bulletins, click on the appropriate page.
The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.
The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about this, write to:

Director, Statistics of Income (SOI) Division, RAS:S,
Internal Revenue Service
P.O. Box 2608
Washington, DC 20013-2608

Or, call Statistical Information Services at: (202) 874-0410; or send a fax to (202) 874-0964.
Subscribe to IRS Newswire
IR-2008-71, May 13, 2008
WASHINGTON — The Internal Revenue Service today reminded small tax-exempt organizations of their new annual electronic filing requirement as the first filing deadline of May 15 approaches.
Organizations can file by going to the appropriate page on IRS.gov.
Beginning this year, most organizations whose gross receipts are normally $25,000 or less must file Form 990-N, also known as the e-Postcard. Previously these small organizations did not have an annual filing requirement.
“The e-Postcard is fast and easy. An organization just quickly answers a few questions online,” said Steven T. Miller, Commissioner of the Tax Exempt and Government Entities Division of the IRS. “It’s free, totally paperless and will help ensure integrity and transparency in the tax-exempt community.”
The first e-Postcards are due by May 15, 2008, from small tax-exempt organizations whose tax year ended on December 31, 2007. For organizations with a tax year that ends after December 31, 2007, the e-Postcard is due by the 15th day of the 5th month after the close of their tax year.
It is important for small organizations to file the e-Postcard because, under the Pension Protection Act of 2006, if an organization fails to file for three consecutive years it will lose its tax-exempt status.
Some organizations do not have to file including organizations that are part of a group return, as well as churches, their integrated auxiliaries and conventions or associations of churches.
Related Items:

E-file overview


Frequently Asked Questions


Charities & Non-profits page

Subscribe to IRS Newswire
Most Frequently Asked Questions
IR-2008-70, May 7, 2008
WASHINGTON — As millions of Americans begin receiving their economic stimulus payments, the Internal Revenue Service released a list of the most-frequently-asked questions –– and answers –– that people now are asking.
“Many people have questions about the stimulus payments, and the IRS has the answers available on the IRS.gov Web site,” IRS Commissioner Doug Shulman said. “The stimulus payments are automatic for eligible taxpayers who filed a 2007 tax return, and taxpayers do not need to take any additional action to receive the payment.”
Stimulus payments started going out last week, and the initial round of payments will continue on a weekly basis through mid-July. In all, nearly 130 million payments will go out this year. Last week, 7.7 million payments were direct deposited, and the first mass production of paper checks begins Thursday.
Since last week millions of Americans have visited IRS.gov and called the IRS toll-free lines. The IRS reminded taxpayers the fastest way to get answers is to visit IRS.gov, which has payment schedules and other information.
Since the payments began, the IRS has been fielding a variety of questions centered on the payment schedule, factors affecting direct deposit of payments, eligibility requirements and questions about the payment amounts.
The IRS today released an updated set of Frequently Asked Questions covering everything from when someone can expect the payment to whether it will be delivered electronically or on paper. A link to these Frequently Asked Questions can be found at the bottom of this page. 
The most common question has been when people can expect their payments.  Economic stimulus payments will be issued according to the last two-digits of the taxpayer’s Social Security number.
For joint filers the payments will go out based on the last two digits of the Social Security number of the person listed first on the return. Payments will be made by either direct deposit or paper check, based generally on the option people chose when they filed their 2007 tax returns.
The payment schedule below is for people who filed early enough to have their tax returns processed by April 15.
Related Items:
Frequently Asked Questions
Contact My Local Office for more assistance
	 
	Subscribe to IRS Newswire
IR-2008-69, May 1, 2008
WASHINGTON –– The Internal Revenue Service today announced it seeks applications for its broad-based private-sector advisory panel, the Internal Revenue Service Advisory Council (IRSAC), which provides important feedback and recommendations regarding tax administration.
The 30-member panel is a diverse slice of the tax professional community including tax attorneys, certified public accountants, enrolled agents, enrolled actuaries, appraisers, other tax practitioners, as well as business representatives.
"The IRSAC plays a vital role by ensuring that executives at the IRS have feedback about how our policies and actions affect the private sector,” said Doug Shulman, IRS Commissioner.
Applications will be accepted from May 1 to June 16 of this year for three Council openings that will begin in January 2009. The IRS Commissioner appoints members to three-year terms.
IRSAC was originally called the Commissioner’s Advisory Group (CAG) and was renamed in 1998. IRSAC provides an organized public forum for IRS officials and relevant members of the public to discuss tax administration issues. The panel presents a report to the Commissioner each year at a public meeting in the fall.
More information and applications are available on the Tax Professionals page of the IRS web site (IRS.gov). Questions about the nomination and application process can be sent to the following email: *public_liaison@irs.gov
Related Items:

Open Season for IRSAC Membership


IRSAC ApplicationPDF


Tax Check WaiverPDF

Subscribe to IRS Newswire
IR-2008-83, June 27, 2008
WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) recently presented its 2008 Annual Report to Congress. The report includes 21 recommendations on a wide range of issues that pertain to individual filers and business, such as modernized e-File and web services.
The ETAAC provides feedback on the development and implementation of the IRS' electronic tax administration strategy.
“ETAAC plays a significant role in IRS efforts to improve the taxpayer’s experience via e-File and the Internet,” said David Williams, director of Electronic Tax Administration. “ETAAC feedback helps the IRS shift more returns from paper to e-File, which is a top priority.”
The 14-member ETAAC provides an organized public forum for discussion of electronic tax administration issues and the overriding goal that paperless filing should be the preferred and most-convenient method of filing tax and information returns.
"This has been a remarkable year for the IRS given late tax legislation and processing of the stimulus payments,” said Tim Hubbs, ETAAC chairman. "The ETAAC looks forward to seeing further progress in electronic tax administration.”
ETAAC submits an annual progress report to Congress each June. The IRS Electronic Tax Administration created the ETAAC in 1998 as required by the IRS Restructuring and Reform Act of 1998. The report is the result of research, analysis, and meetings with senior IRS executives as well as the ETAAC members. Public comments on the report will be solicited via the Federal Register in the fall.
Subscribe to IRS Newswire
IR-2008-82, June 23, 2008
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70PDF.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2008-63PDF on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes


Purpose 


  Rates 1/1 through 6/30/08 


  Rates 7/1 through 12/31/08 


Business


50.5


58.5


  Medical/Moving    


19


27


Charitable


14


14

Subscribe to IRS Newswire
IR-2008-81, June 19, 2008
WASHINGTON — The Internal Revenue Service today announced that it will waive certain limitations for the low-income housing tax credit in Indiana and Iowa so that owners of facilities in these states can provide housing to victims of recent storms and flooding.
The IRS will continue to monitor closely the housing situation in other states affected by the recent flooding and is prepared to act quickly as circumstances warrant.
“Our thoughts are with the thousands of families left homeless by these terrible tragedies,” IRS Commissioner Doug Shulman said. “We are pleased to help these states to quickly house the needy whose homes were destroyed.”
Because of the widespread devastation to housing caused by storms and flooding, the IRS will temporarily suspend certain limitations for qualified low-income housing projects located anywhere in the states of Indiana and Iowa. Today’s action will expand the availability of housing for disaster victims and their families.
Formal notices detailing this relief will be issued shortly.
For related information, see:

IRS Gives Storm Victims for Time to File and Pay


Disaster Relief for Indiana Storm, Flooding Victims


Disaster Relief for Iowa Storm, Flooding Victims


Disaster Assistance and Emergency Relief for Individuals and Businesses


Notice 2008-56PDF — Waiver for Indiana


Notice 2009-58PDF — Waiver for Iowa
IR-2008-78, June 16, 2008
WASHINGTON — Victims of storms and flooding in 10 states will have more time to make quarterly estimated tax payments normally due today, according to the Internal Revenue Service.
"Our hearts go out to the flood victims in the stricken states," IRS Commissioner Doug Shulman said. "At a time like this, taxes should be the last thing on the minds of these unfortunate victims."
Over the weekend the IRS provided tax relief, including the postponement of various tax-filing and tax-payment deadlines, to disaster-area counties in Iowa, Indiana and Wisconsin. Earlier this spring, the agency extended similar relief to storm victims in parts of Arkansas, Colorado, Georgia, Maine, Mississippi, Missouri and Oklahoma.
As a result, self-employed individuals, retirees and others in these areas who make quarterly estimated tax payments will have more time to make the payment normally due today. Businesses will also have extra time to file various returns and pay any taxes due. Due dates vary, depending upon location, and details are available on the Tax Relief in Disaster Situations page on this Web site.
In addition, affected taxpayers in these areas who suffered uninsured or unreimbursed property damage can choose to claim these losses on their 2007 tax returns.
The IRS is monitoring and regularly updating all available relief.
IR-2008-77, June 6, 2008
WASHINGTON — The Internal Revenue Service today introduced several new features to the interactive Online Payment Agreement application , which will make it easier for taxpayers and their authorized representatives to make changes to existing installment agreements.
The system will now permit:
Individuals to revise their payment due dates and/or amounts on existing agreements.
Individuals to revise existing extensions to regular installment agreements and direct debit installment agreements.
Individuals to revise existing regular installment agreements to a payroll deduction installment agreement or a direct debit installment agreement.
Practitioners with valid authorizations to use the signature date found on their approved Form 2848, Power of Attorney and Declaration of Representative, or the caller ID as an alternate way to authenticate when requesting agreements for clients.
More than 75 percent of those eligible for an installment agreement can establish one using the online application, according to the IRS. Since launching in October 2006, more than 30,000 taxpayers have successfully used it to set up a payment agreement.
Eligible taxpayers who owe $25,000 or less in combined tax, penalties and interest can self-qualify, apply and receive immediate notification of approval for installment agreements – including pre-assessed agreements on tax year 2007 Form 1040 liabilities and paperless direct debit agreements.
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.
Subscribe to IRS Newswire
IR-2008-76, June 2, 2008
Washington — The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 2008, will drop by one percentage point. The new rates will be: 
five (5) percent for overpayments [four (4) percent in the case of a corporation];
five (5) percent for underpayments;
seven (7) percent for large corporate underpayments; and
two and one-half (2.5) 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 April 2008.
Revenue Ruling 2008-27PDF, announcing the new rates of interest, will appear in Internal Revenue Bulletin No. 2008-26, dated June 30, 2008.
Subscribe to IRS Newswire
IR-2008-92, July 30, 2008
WASHINGTON — The Internal Revenue Service has released for public comment draft revisions to Form 1065, U.S. Return of Partnership Income, Form 1120, U.S. Corporation Income Tax Return, and certain related schedules. Included in the release are new Schedule B for Form 1120 and Schedule C for Form 1065. These forms will be for use for tax years ending on or after Dec. 31, 2008.
The draft forms reflect changes suggested in comments received from the initial drafts released in August 2007.
“The draft revisions and new forms will increase transparency about the ownership and relationships between entities that make up complex enterprise business structures,” said Frank Y. Ng, Commissioner of the Large and Mid-Size Business Division of IRS. “This will enable IRS to better assess compliance risk.”
The major change to Form 1120 is to Schedule K and involves reporting direct and indirect ownership. When ownership meets certain percentage thresholds, it must be reported on Schedule K. Certain questions on Schedule K have been revised for this reporting.
The new Schedule B (Form 1120) is required of corporations that file Form 1120 Schedule M-3.  Schedule B (Form 1120) will provide IRS information about allocations, transfers of interest, cost sharing arrangements, and changes in methods of accounting.
The major changes to the Form 1065 also involve ownership issues.  When ownership meets certain percentage thresholds, it must be reported on Schedule B (Form 1065).  The revised Schedule B (Form 1065) will also be used to provide information about cancelled debt, and like-kind exchanges that the partnership may have participated in at any time during the tax year. For small partnerships, the asset threshold for filing Schedules L, M-1 and M-2 with Form 1065 has been increased from $600,000 to $1,000,000.
The new Schedule C (Form 1065) will be required of Form 1065 filers that file Schedule M-3.  Schedule C (Form 1065) will be used to report information about related party transactions, allocations, transfers of interest, cost sharing arrangements and changes in methods of accounting.
New instructions for Item J of Schedule K-1 (Form 1065) clarify how partnerships determine partners’ percentage share in the profit, loss, and capital at beginning and end of the partnership’s tax year. 
The redesigned forms are available at the IRS Web site, IRS.gov.
Questions and comments regarding these changes only should be e-mailed to the IRS at Judith.A.McNamara@irs.gov  by August 25, 2008.
Related Items:

Draft Forms 1120 and 1065 and Related Schedules and Instructions for 2008


IR-2007-138, IRS Seeks Comments on Updates to Corporate and Partnership Tax Forms

 
Subscribe to IRS Newswire
IR-2008-89, July 14, 2008
WASHINGTON — The Internal Revenue Service is postponing until Aug. 29 the time to file certain tax returns, to make certain tax payments and to perform time-sensitive acts for storm, flood, and tornado victims in presidential disaster areas in six states, mostly in the Midwest.
Previously, these deadlines varied by state, and the postponement provides people affected by the disasters with additional time.
"Our hearts go out to to the people hit by these disasters," IRS Commissioner Doug Shulman said. “We realize that as people put their lives back together, they need additional time to work on these tax issues."
This announcement will affect counties in Indiana, Iowa, Illinois, Nebraska, West Virginia and Wisconsin that qualify for individual assistance. Affected counties in Missouri previously have been granted relief until Aug. 29.
Related Items:
Disaster news release for Indiana
Disaster news release for Iowa
Disaster news release for Illinois
Disaster news release for Nebraska
Disaster news release for West Virginia
Disaster news release for Wisconsin
Disaster news release for Missouri 
 
Subscribe to IRS Newswire
IR-2008-86, July 3, 2008
WASHINGTON — The Internal Revenue Service’s Tax Talk Today program returns on Tuesday, July 8, 2008 at 2 p.m. with a Web cast on “Retirement Plan Pitfalls.”
Few issues are as important to the owner of a business and its employees as the proper administration of its retirement plans. Ensuring that the retirement plan is in good running order keeps the promise made in setting up the plan.
Attend this program to learn how to use the IRS Fix-It Guides to identify and correct frequently encountered errors the IRS sees in retirement plans. These correction programs help retirement plans operate within the law and protect participant benefits.
And they provide real incentives to identify and correct mistakes sooner rather than later. In addition, the IRS will provide tips on how these mistakes can be avoided in the future.
Moderated by Les Witmer, the show’s panel of experts includes Avaneesh Bhagat, IRS, Program Coordinator, Employee Plans Voluntary Compliance; Dan Morgan, Partner Dickstein Shapiro, LLP; Thomas G. Schendt, Partner, Alston & Bird LLP; and Monika Templeman, IRS, Director, Employee Plans Examination.
Tax Talk Today is a Web cast aimed at educating tax and payroll professionals on the most current and complex tax issues. Tax professionals are encouraged to watch and submit questions.
Viewers can register online to access the Web cast at no charge. Tax professionals in need of continuing education credits are eligible to receive one CPE credit by viewing the May 13 Web cast.
Archived shows are available on the site also.
Related Items:

www.taxtalktoday.com

Subscribe to IRS Newswire
IR-2008-85, July 2, 2008
WASHINGTON — The Internal Revenue Service is now accepting applications for the first-ever Volunteer Income Tax Assistance (VITA) matching grant program. The application period for 2009 is from July 1 through Sept. 2, 2008.
The Community VITA grant program is the first of its kind at the IRS. In December 2007, Congress appropriated funds to the IRS to establish and administer a one-year matching grant program in consultation with the Taxpayer Advocate Service.
The VITA program offers free tax help for low-to-moderate income individuals for tax return preparation.
Under the grant program, the IRS will award matching grants to extend services to underserved populations and hard-to-reach areas, both urban and non-urban. The grants will also be used to increase the capacity to file returns electronically and enhance training of volunteers at VITA sites.
The establishment of the grant will enable the IRS to offer funding to assist organizations in sustaining the VITA program.
Who Can Apply
Applicants must be any one of the following:

A private or public non-profit organization qualifying for tax exemption under IRC 501.


A state or local government agency.


A regional, statewide or local coalition with one lead organization that meets one of the eligibility criteria stated above.

Applicants must also provide matching funds on a dollar-for-dollar basis. Matching funds consist of cash, computer hardware and software and third-party, in-kind contributions. Funding from other federal grants cannot be counted as matching funds.
How to Apply
The period for accepting applications is July 1 through Sept. 2, 2008. Interested applicants may apply at Grants.gov. Applicants can also mail a completed application to:
     IRS-SPEC
      Grant Program Office
      401 West Peachtree Street, NW
      Stop 420-D
      Atlanta, GA 30308
All applications must be received in the Grant Program Office by 4:00 p.m. EST on Sept. 2, 2008. Copies of Publication 4671PDF, VITA Grant Program Overview and Application Package, are available on this Web site. More information, including Frequently Asked Questions, can be found on the Partner and Volunteer Resource Center page on this Web site.
Questions about the VITA Grant program or the application process should be e-mailed to the Grant Program Office or mailed to the Grant Program Office at the address listed above.  
Subscribe to IRS Newswire
update March 5, 2010 — The last IRS-sponsored Tax Talk Today program aired on Oct. 6, 2009.
IR-2008-99, Aug. 25, 2008

WASHINGTON —  The Internal Revenue Service’s next Tax Talk Today Web cast on Tuesday, Sept. 9, 2008 at 2 p.m. focuses on “EITC Due Diligence - It’s Your Responsibility.”

Practitioners who prepare Earned Income Tax Credit (EITC) claims must meet four due diligence requirements. For example, they must ask the required questions on Form 8867, Paid Preparer's Earned Income Credit Checklist, and probe further when information seems incorrect, inconsistent or incomplete. 

Failure to meet the due diligence requirements can result in a $100 penalty for each failure. 

The broadcast will be a good opportunity for return preparers to review the requirements and get the latest information from the IRS executive and technical staff responsible for this $43 billion program.

Moderated by Les Witmer, panelists for the September program are: Debra S. Holland, EITC program director;  Sue Gaston, director of industry operations, H&R Block; Sherrill L. Gregory, an Orange County, Calif., tax practitioner; and  Bridget E. Tombul, IRS counsel.

Tax Talk Today is a Web cast aimed at educating tax and payroll professionals on the most current and complex tax issues. Tax professionals are encouraged to watch and submit questions.
To access the Web cast at no charge, viewers can register online. Tax professionals in need of continuing education credits are eligible to receive one CPE credit by viewing the September 9 Web cast.

Archived shows are available on the site also.

The next show is on Tuesday, Nov. 4. 2008 when the topic will be “Preparing for the New Form 990.”
IR-2008-98, Aug. 19, 2008
WASHINGTON — The Internal Revenue Service released the revised instructions that tax-exempt organizations will need to fill out the redesigned Form 990, which must be filed starting with tax year 2008 (filed in 2009).
Most charities and other tax-exempt organizations must file an annual informational return with the IRS to maintain their tax-exempt status. Information reported on Form 990 is made available to the public.
“These instructions are the final step in a tremendous effort to bring the Form 990 up to date and to reflect the diversity and complexity of the tax-exempt community,” said IRS Commissioner Doug Shulman. "The revised form will give the IRS and the public a much better view of how exempt organizations operate. The improved transparency provided by these changes will also benefit the tax-exempt community.”
Form 990 had previously not seen major revisions since 1979. The revised instructions and redesigned Form 990 can be found on this Web site.
The revised instructionsPDF feature several new tools that make it easier to answer questions line-by-line and that facilitate uniform reporting. Input from the tax-exempt community played a major role in how the new instructions were designed.
“We were gratified by the amount of help the IRS received from the tax-exempt community through public comments to redesign the Form 990 and revise its instructions,” said Steven T. Miller, Commissioner of the Tax Exempt and Government Entities Division. “This input helped us achieve our goal of improving compliance while minimizing burden. We will now begin working with the tax-exempt sector to help organizations complete the form and prepare for the 2009 filing season."
The IRS expects to release instructions to the 2008 Form 990-EZ, Short Form Return of Organization Exempt from Income Tax, in the next few weeks.
As part of the phase in of the redesigned Form 990 over a three-year transition period, many organizations not eligible to file the Form 990-EZ for 2007 will be eligible to file Form 990-EZ or Form 990 for 2008. A summary of the transition period filing requirements for Form 990, 990-EZ, and 990-N is also now available.
IR-2008-97, Aug. 18, 2008
WASHINGTON — The Internal Revenue Service today released the summer 2008 issue of the Statistics of Income Bulletin, which features tax year 2005 data on the growth in profits and tax liability reported by foreign-controlled domestic corporations.
According to 2005 data, there were 61,820 foreign-controlled domestic corporations (FCDCs), accounting for 1.1 percent of the total of all U.S. corporations. However, FCDCs generated $3.5 trillion of total receipts with $9.2 trillion of total assets, accounting for 13.7 percent of receipts and 13.9 percent of assets reported on all U.S. corporation income tax returns.
Profits, or net income less deficit, reported by FCDCs for tax purposes were $165.2 billion, an 81.9 percent increase from $90.8 billion reported in 2004. The U.S. tax liability for FCDCs, total income tax after credits, was $42.4 billion for 2005, a 41.7 percent increase since 2004.
The Bulletin also features articles on the following:

Foreign corporations controlled by U.S. multinational corporations: For tax year 2004, these controlled foreign corporations held $9.2 trillion in assets and reported $3.8 trillion in receipts. 


Corporations that claimed the foreign tax credit on their U.S. tax returns: For tax year 2004, corporations claimed foreign tax credits worth $56.6 billion, representing an all-time high and a 13.2 percent increase over the previous high amount in 2003.  Use of this credit reduced their U.S. tax on worldwide income by 30.2 percent, from $187.5 billion to $130.9 billion. 


Growth trends in the number of partnership and sole proprietorship returns:  While the number of partnership returns filed between 2002 and 2005 increased by 23 percent, the number of sole proprietorship returns increased by 1.9 percent. 


Federal gift tax returns filed for gifts given in 2005: Americans reported $38.5 billion in cash and other asset transfers.  Almost 3 percent of gift tax returns were taxable with $1.7 billion in reported tax liability.


Use of business credit for research activities: Corporations claimed almost $6.4 billion in these credits for tax year 2005, and corporations in the manufacturing industries claimed more than 70 percent of this amount.

The Summer 2008 Statistics Of Income Bulletin is available at IRS.gov.
The Statistics of Income Bulletin is also available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; call Statistical Information Services at (202) 874-0410; or send a fax to (202) 874-0964.  
Subscribe to IRS Newswire
IR-2008-95, Aug. 11, 2008
WASHINGTON — IRS Commissioner Doug Shulman today named J. Richard (Dick) Harvey Jr. as senior advisor to the commissioner. Harvey will assume his post September 2.
Harvey currently is a partner at PricewaterhouseCoopers, where he serves as the U.S. Banking and Capital Markets Team Leader. In addition to being a nationally recognized expert in financial services tax issues, he also has extensive experience in the financial accounting for income taxes, including both Financial Accounting Standards Board (FASB) rules and International Financial Reporting Standards (IFRS).
“Dick Harvey brings tremendous experience and expertise on accounting and tax issues to the IRS,” said Shulman. “International and corporate tax issues are at the center of our strategic agenda. We are fortunate to have someone of Dick’s caliber working on behalf of American taxpayers.”
The senior advisor to the commissioner serves as an expert providing guidance and assistance on matters of policy and tax administration.  He also will maintain a close partnership between the commissioner’s office and the business units responsible for key programs in his areas of expertise, such as the Large and Mid-Size Business Division.
Harvey joined Price Waterhouse in 1978 in its audit practice and transferred to the tax practice in 1981. He transferred to the Price Waterhouse’s Washington National Tax Office in 1985. In 1986, he joined the Treasury Department’s Office of Tax Policy where he drafted legislation and regulations and did extensive work on the 1986 Tax Reform Act. He rejoined Price Waterhouse (later renamed PricewaterhouseCoopers) in 1988 as a tax partner in New York City focusing on financial institutions.
Harvey graduated magna cum laude from Bucknell University and has a master’s degree in international economics and finance from the University of York in the United Kingdom. He also serves as the Distinguished Clinical Professor of Accounting and Executive-in-Residence at Bucknell University but will take leave from this position upon assuming his new role as senior advisor.
Subscribe to IRS Newswire