etrent17/irs-articles huggingface dataset:
IR-2011-74, July 12, 2011
WASHINGTON — As part of its new oversight program of the nation’s tax return preparation industry, the Internal Revenue Service today announced it will send letters to approximately 100,000 tax return preparers who prepared returns in 2011 but failed to follow new requirements.
In 2010, the IRS launched an initiative to increase its oversight of the tax return preparation industry and regulate the conduct of tax return preparers. All paid tax return preparers must obtain a Preparer Tax Identification Number (PTIN) and, when required to do so, sign their names and include their PTINs on the returns and refund claims they prepare for compensation.
Starting July 7, 2011, the IRS began sending letters to about 100,000 tax return preparers who either used outdated PTINs or used social security numbers as identifying numbers on returns they prepared this filing season. The letters explain the new oversight program, inform preparers of how to register for a new PTIN, or renew an old PTIN, and where to get assistance.
“The vast majority of federal tax return preparers complied with the rules. Obviously, some preparers did not get the word, so these letters provide additional information so they can register as soon as possible,” said IRS Commissioner Doug Shulman. “We owe it to the compliant tax preparers to make sure that everyone is on a level playing field.”
The IRS launched its PTIN registration program last fall. Since then, about 712,000 tax preparers have registered and obtained PTINs. Paid preparers who are not Certified Public Accountants, attorneys or Enrolled Agents, have additional requirements to pass a competency exam and suitability check, which are expected to start this fall, and complete 15 hours of continuing education credits annually, which will start in 2012.
Some unscrupulous preparers may attempt to elude the new oversight program by not signing returns they prepare. Taxpayers should never use tax return preparers who refuse to sign returns and enter PTINs.
In an effort to identify these “ghost preparers,” the IRS later this year also will send letters to taxpayers who appear to have had assistance with their returns but lack tax return preparer signatures. The letter will inform taxpayers how to file a complaint against preparers who failed to sign returns and explain how to choose legitimate tax preparers. The goal of the letters is to protect taxpayers by ensuring that all paid federal tax return preparers are registered with the IRS, and sign tax returns they prepare and use an identifying number when required to do so.
Compliance is a central part of the new tax return preparer initiative and the letters are one step in an ongoing compliance effort to ensure tax return preparers are following the new regulations. The IRS also is working to identify tax return preparers who make repeated errors and IRS personnel have had face-to-face meetings with thousands of these tax return preparers over the past two years.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-72, July 5, 2011
WASHINGTON — The Internal Revenue Service announced today that it has reached an agreement with the Millennium Multiple Employer Welfare Benefit Plan (Millennium Plan).
The Millennium Plan is presently the subject of a bankruptcy proceeding that was filed on June 9, 2010, in the U.S. Bankruptcy Court for the Western District of Oklahoma (Case No. 10-13528). Under the agreement reached with the IRS and the terms of the Order Confirming Modified Plan dated June 16, 2011, the Millennium Plan will terminate its operations, liquidate its assets and distribute approximately $80 million in assets to individual participants.
The agreement with the IRS resolves certain issues relating to an IRS investigation into the design, marketing, operation and management of the Millennium Plan. The agreement with the IRS also provides a procedure for resolving hundreds of income tax and penalty examinations of employers and employees who participated in the Millennium Plan.  Finally, the agreement with the IRS addresses tax issues relating to the liquidation of the Millennium Plan, including information reporting and income tax withholding requirements.
Section 6103 of the Internal Revenue Code strictly controls the disclosure of tax information.  In connection with this agreement, the Millennium Plan consented to the IRS issuance of this news release.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-86, Aug. 26, 2011
WASHINGTON — The Internal Revenue Service today announced availability of the summer 2011 issue of the Statistics of Income Bulletin, which features sole proprietorship data for tax year 2009.
Nearly 22.7 million individual income tax returns reported nonfarm sole proprietorship activity for 2009. Reported profits for those sole proprietorships were $244.8 billion.
The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue of the SOI Bulletin also includes articles on the following:
Foreign-controlled domestic corporations. For tax year 2008, almost 67,000 foreign-controlled domestic corporations reported combined profits (i.e., net income less deficit) of $21.8 billion.
Interest-charge domestic international sales corporations. Corporations formed for the purpose of providing limited incentives to small exporters of U.S. products and certain services reported $36.5 billion in export gross receipts for tax year 2008. Export gross receipts is one measure of overall export activity.
Corporations claiming a foreign tax credit. For tax year 2007, 6,675 corporations claimed a total foreign tax credit of $86.5 billion against their U.S. income tax liability.  
Federal estate tax returns. Nearly 37,000 estate tax returns were filed for decedents who died in 2007 with total gross estates of $2 million or more, the filing threshold for that year.  A combined $224.8 billion in total assets was reported on these returns. 
The Statistics of Income Bulletin is available for download at IRS.gov/taxstats. Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.
Related Items: 
SOI Bulletin: Summer 2011
Historical Tables and Appendix 
Tax Statistics
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-85, Aug. 18, 2011
WASHINGTON — The Internal Revenue Service today announced that interest rates will decrease for the calendar quarter beginning Oct. 1, 2011. The rates will be:  
three (3) percent for overpayments [two (2) percent in the case of a corporation];
three (3) percent for underpayments;
five (5) percent for large corporate underpayments; and
zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. 
The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate during July 2011 to take effect Aug. 1, 2011, based on daily compounding.
Revenue Ruling 2011-18PDF, announces the rates of interest and will appear in Internal Revenue Bulletin No. 2011-39, dated Sept. 26, 2011. 
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-83, Aug. 5, 2011
WASHINGTON — The Internal Revenue Service issued guidance today on the treatment of basis for certain estates of decedents who died in 2010. The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due Nov. 15, 2011.
Under the guidance issued today, an executor must file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, to opt out of the estate tax and have the new carryover basis rules apply. The IRS expects to issue Form 8939 and the related instructions early this fall.
Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax was repealed for persons who died in 2010. However, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reinstated the estate tax for persons who died in 2010. This recent law allows executors of the estates of decedents who died in 2010 to opt out of the estate tax, and instead elect to be governed by the repealed carry-over basis provisions of the 2001 Act. This choice is to be made by filing Form 8939.
Related Items:
Notice 2011-66 PDF
Revenue Procedure 2011-41PDF
Follow the IRS on New Media
Subscribe to IRS Newswire
IR-2011-82, Aug. 3, 2011
WASHINGTON —The Internal Revenue Service today announced the selection of Victoria Judson for the position of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) effective Aug. 28, 2011.
"I am pleased that Vicki Judson is resuming her government service," IRS Chief Counsel William Wilkins said. "She is a lawyer with exceptional breadth of experience, technical skill, and policy insight. I look forward to working with her as she takes on this important leadership position."
Since 2001 Judson served as Of Counsel at the firm of Steptoe & Johnson, LLP, representing clients including large and medium size corporate employers, employee plans, financial institutions, service providers, insurance companies, plans of state and local governments and associations. From 1998 to 2001 she served as a consultant for the Treasury Department and served as Deputy Benefits Tax Counsel at Treasury from 1995 to 1998. Judson served as Of Counsel at Steptoe from 1991 to 1995 and as an associate from 1986 to 1990. From 1990 to 1991, she was a visiting Assistant Professor of Law, teaching income taxation and property law.
From 1984 to 1985, she served as a staff attorney for the Lawyers’ Committee for Civil Rights under Law of the Boston Bar Association. She was a staff attorney from 1983 to 1984 for Business and Professional People for the Public Interest. From 1982 to 1983, Judson served as associate with Herrick & Smith in Boston. From 1981 to 1982, she did her clerkship with Judge John Ferren with the D.C. Court of Appeals. She received her J.D. from Harvard Law School cum laude in 1981 and her A.B. from Harvard College magna cum laude in 1977.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-97, Sept. 29, 2011
WASHINGTON — The Internal Revenue Service today reminded estates of married individuals dying after 2010 that they must file an estate tax return to pass along their unused estate & gift tax exclusion amount to their surviving spouse.
Available for the first time this year, the new portability election allows estates of married taxpayers to pass along the unused part of their exclusion amount, normally $5 million in 2011, to their surviving spouse. Enacted last December, this provision eliminates the need for spouses to retitle property and create trusts solely to take full advantage of each spouse’s exclusion amount.
The IRS expects that most estates of people who are married will want to make the portability election, including people who are not required to file an estate tax return for some other reason. The only way to make the election is by properly and timely filing an estate tax return on Form 706PDF. There are no special boxes to check or statements needed to make the election.
The first estate tax returns for estates eligible to make the portability election (because the date of death is after Dec. 31, 2010) are due as early as Monday, Oct. 3, 2011. This is because the estate tax return is due nine months after the date of death. Estates unable to meet this deadline can request an automatic six-month filing extension by filing Form 4768PDF. The IRS emphasized that estates of those who died before 2011 are not eligible to make this election.
The IRS plans to issue regulations providing further guidance on this election and welcomes public comment on a number of issues. There are three ways to submit comments:
E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-82” in the subject line.
Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-82), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Hand deliver to: CC:PA:LPD:PR (Notice 2011-82), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline is Oct. 31, 2011. Further details are in Notice 2011-82PDF, posted today on IRS.gov.
Follow the IRS on New MediaSubsribe to IRS Newswire
IR-2011-95, Sept. 21, 2011
WASHINGTON – The Internal Revenue Service today launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.
This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit.
This is part of a larger “Fresh Start” initiative at the IRS to help taxpayers and businesses address their tax responsibilities.
“This settlement program provides certainty and relief to employers in an important area,” said IRS Commissioner Doug Shulman. “This is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.”
The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees.
To be eligible, an applicant must:
Consistently have treated the workers in the past as nonemployees,
Have filed all required Forms 1099 for the workers for the previous three years
Not currently be under audit by the IRS
Not currently be under audit by the Department of Labor or a state agency concerning the classification of these workers
Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees.
Employers accepted into the program will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes.
Full details, including FAQs, will be available on the Employment Tax pages of IRS.gov, and in Announcement 2011-64PDF.
Follow the IRS on New MediaSubsribe to IRS Newswire
IR-2011-93, Sept. 14, 2011
WASHINGTON — The Internal Revenue Service today issued guidance designed to clarify the tax treatment of employer-provided cell phones.
The guidance relates to a provision in the Small Business Jobs Act of 2010, enacted last fall, that removed cell phones from the definition of listed property, a category under tax law that normally requires additional recordkeeping by taxpayers.
The Notice issued today provides guidance on the treatment of employer- provided cell phones as an excludible fringe benefit. The Notice provides that when an employer provides an employee with a cell phone primarily for noncompensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee. The IRS will not require recordkeeping of business use in order to receive this tax-free treatment.
Simultaneously with the Notice, the IRS announced in a memoPDF to its examiners a similar administrative approach that applies with respect to arrangements common to small businesses that provide cash allowances and reimbursements for work-related use of personally-owned cell phones. Under this approach, employers that require employees, primarily for noncompensatory business reasons, to use their personal cell phones for business purposes may treat reimbursements of the employees' expenses for reasonable cell phone coverage as nontaxable. This treatment does not apply to reimbursements of unusual or excessive expenses or to reimbursements made as a substitute for a portion of the employee's regular wages.
Under the guidance issued today, where employers provide cell phones to their employees or where employers reimburse employees for business use of their personal cell phones, tax-free treatment is available without burdensome recordkeeping requirements. The guidance does not apply to the provision of cell phones or reimbursement for cell-phone use that is not primarily business related, as such arrangements are generally taxable.
Details are in the memo and in Notice 2011-72PDF, posted today on IRS.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-92, Sept. 13, 2011
WASHINGTON — The Treasury Department and Internal Revenue Service today requested public comment on a proposed affordability safe harbor for employers under the shared responsibility provisions included in the Affordable Care Act that will apply to certain employers starting in 2014.
Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment. Notice 2011-73PDF, posted today on IRS.gov, solicits public input and comment on a proposed safe harbor, designed to make it easier for employers to determine whether the health coverage they offer is affordable. To that end, Treasury and IRS expect to propose a safe harbor permitting employers that offer coverage to their employees to measure the affordability of that coverage by using wages that the employer paid to an employee, instead of the employee’s household income. This contemplated safe harbor would only apply for purposes of the employer shared responsibility provision, and would not affect employees’ eligibility for health insurance premium tax credits.
Today’s request for comment is designed to ensure that Treasury and IRS continue to receive broad input from stakeholders on how best to implement the shared responsibility provisions in a way that is administrable, allows flexibility, and minimizes burden. By soliciting comments and feedback now, Treasury and IRS are giving all interested parties the opportunity for input before proposed regulations are issued.
There are three ways to submit comments.
E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-73” in the subject line.
Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-73), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Hand deliver to: CC:PA:LPD:PR (Notice 2011-73), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline for comments is December 13, 2011.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-91, Sept. 13, 2011
WASHINGTON — The Internal Revenue Service announced today that large estates of people who died in 2010 will have until early next year to file various required returns and pay any estate taxes due. In addition, the IRS is providing penalty relief to certain beneficiaries of these estates on their 2010 federal income tax returns.
This relief is designed to give large estates, normally those over $5 million, more time to comply with key tax law changes enacted late last year. Revised versions of the estate tax forms are now available on IRS.gov, and the carryover basis form will be released this fall.
The IRS is providing the following relief:
Large estates, opting out of the estate tax, now will have until Tuesday, Jan. 17, 2012, to file Form 8939. This special carryover basis form, required of estates making this choice, was previously due on Nov. 15, 2011. Because this is a change in the specified due date rather than an extension, no statement or form needs to be filed with the IRS to have this new due date apply.
	 
2010 estates that request an extension on Form 4768PDF will have until March 2012 to file their estate tax returns and pay any estate tax due. Normally, a six-month filing extension is automatically granted to estates filing this form, but extensions of time to pay are granted only for good cause. As a result, most 2010 estates that timely file Form 4768 will have until Monday, March 19, 2012 to file Form 706PDF or Form 706-NAPDF. For estates of those dying late in 2010 (after Dec. 16, 2010 and before Jan. 1, 2011), the due date is 15 months after the date of death. No late-filing or late-payment penalties will be due, though interest still will be charged on any estate tax paid after the original due date.
	 
Special penalty relief is provided to many individuals, estates and trusts that already filed a 2010 federal income tax return, or obtained an extension and plan to file by the Oct. 17, 2011 extended due date. Late-payment and negligence penalty relief applies to persons inheriting property from a decedent dying in 2010, who then sells the property in 2010 but improperly reports gain or loss because they did not know whether the estate made the carryover basis election. Details are in Notice 2011-76PDF, posted today on IRS.gov.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-88, Sept. 1, 2011
WASHINGTON — The Internal Revenue Service today announced it is granting taxpayers whose preparers were affected by Hurricane Irene until Sept. 22 to file returns normally due Sept. 15. The taxpayer’s preparer must be located in an area that was under an evacuation order or a severe weather warning because of Hurricane Irene, even if the preparer is located outside of the federally declared disaster areas.
This relief, which primarily applies to corporations, partnerships and trusts that previously obtained a tax filing extension, is available to taxpayers regardless of their location.
This relief does not apply to any tax payment requirements.
This relief is in addition to the filing and payment relief the IRS is providing to taxpayers located in disaster areas declared by the Federal Emergency Management Agency (FEMA). For details, visit Tax Relief in Disaster Situations on this website.
 
Follow the IRS on New Media
Subscribe to IRS Newswire
IR-2011-107, Oct. 27, 2011
WASHINGTON — The Internal Revenue Service is seeking applications for vacancies on the Advisory Committee on Tax Exempt and Government Entities (ACT). The committee provides a venue for public input on relevant areas of tax administration.
Vacancies exist in the following customer segments:
Employee Plans – two vacancies
Exempt Organizations – two vacancies
Tax Exempt Bonds – two vacancies
Indian Tribal Governments – one vacancy
Members are appointed by the Department of the Treasury and serve two-year terms, beginning in June 2012. Applications will be accepted through Dec. 1, 2011.
The ACT is an organized public forum for the IRS and representatives who deal with employee plans, exempt organizations, tax-exempt bonds, and federal, state, local and Indian tribal governments. The ACT allows the IRS to receive regular input on administrative policy and procedures of the Tax Exempt and Government Entities Division (TE/GE).
Applications can be made by letter or by completing an applications form available on IRS.gov. In either case, applications should reflect the proposed member’s qualifications. Members of the ACT may not be federally registered lobbyists. A notice published in the Federal Register, dated Oct. 24, 2011, contains more details about the ACT and the application process.
The ACT member applicationPDF, along with the required Tax Check Waiver formPDF, are available on this website. 
Applications should be sent to Bobby Zarin, TE/GE Communications and Liaison Director, Internal Revenue Service, 1111 Constitution Ave., NW-SE:T:CL Penn Bldg., Washington, DC 20224, or by fax to 202-283-9956 (not a toll-free number).
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-106, Oct. 26, 2011      
WASHINGTON — The Information Reporting Program Advisory Committee (IRPAC) today released its 2011 Report, which includes recommendations pertaining to merchant card and third-party payments, the Foreign Account Tax Compliance Act and other tax administration issues.
IRPAC provides a public forum for the IRS and members of the information reporting community in the private sector to discuss relevant information reporting issues. The IRPAC is administered by the National Public Liaison Division of the IRS. IRPAC draws its members from the tax professional community.
“IRPAC performs a valuable service for the IRS,” said Doug Shulman, IRS Commissioner. “The group provides helpful advice from the private sector that identifies taxpayer burden while also providing recommendations to improve tax administration.”
Based on the Committee’s findings and discussions, IRPAC made recommendations on a broad array of issues and concerns, including the following:

IRC Section 6050W and Form 1099-K, Merchant Card and Third Party Payments, reporting
Information reporting for Tax Credit Bonds
Employer and Insurer Reporting under the Patient Protection and Affordable Care Act for years commencing on or after 2013
Cost basis reporting by financial institutions of customer cost basis in securities transactions
Withholding and tax information reporting of payments of U.S. source income to foreign financial institutions and non-financial foreign entities, under Foreign Account Tax Compliance Act (FATCA)

The full report is available in the Tax Professional section of this website.
IR-2011-102, Oct. 14, 2011
WASHINGTON — Tax professionals can earn continuing professional education credits online through seminars filmed at the 2011 IRS Nationwide Tax Forums. The seminars are now available on the IRS Nationwide Tax Forums Online (NTFO). The 14 self-study seminars provide information to tax professionals using interactive videos synchronized with slides. Each seminar includes downloadable PowerPoint slides and a transcript.
The 2011 NTFO seminars cover many topics of interest to tax professionals including tax law updates and changes to information on IRS procedures and processes, registered tax return preparer regulations, new information reporting requirements, IRS Fresh Start initiatives and their effect on collection, the small business health care tax credit and EITC due diligence for preparers.
The online forums are registered with the IRS Office of Professional Responsibility and the National Association of State Boards of Accountancy (NASBA) as a qualified sponsor of continuing professional education (CPE). For a fee, EAs and CPAs taking NTFO seminars can earn CPE credit. To earn CPE credit, users must create an account, answer review questions after viewing each chapter, and pass a short test at the end of the seminar.
Online self-study seminars allow users to learn at their own pace, any time of day, from any location. The seminars are broken into chapters for easier viewing.
NTFO seminars can also be audited for free. Users who choose to audit seminars will not have access to the review questions or final examination and will not receive credit for the seminar.
In addition to the recently-added seminars, NTFO offers over 30 other seminars from prior year IRS Nationwide Tax Forums from 2008 through 2010 (some seminars are only available for audit).
Follow the IRS on New Media
Subscribe to IRS Newswire
IR-2011-100, Oct. 12, 2011
WASHINGTON — The Internal Revenue Service today advised tax professionals and tax firms that do not have Electronic Filing Identification Numbers (EFINs) to start the process to obtain EFINs now so they can meet new e-file requirements for 2012.
Starting in January 2012, any paid preparer or firm that reasonably anticipates preparing and filing 11 or more Form 1040 series returns, Form 1041 returns, or a combination of Form 1040 series returns and Form 1041 returns generally must use IRS e-file. Their clients who file these forms, however, may independently choose to file by paper.
To become Authorized IRS e-file Providers, preparers must create an e-Services account, submit an EFIN application and pass a suitability check. The approval process can take 45 days or more. For a firm or an individual, only one EFIN is needed.
The 2012 requirement will mark the second and final phase of implementing a law that was intended to boost the electronic filing rate of income tax returns for individuals, trusts and estates. In 2011, the e-file mandate pertained to any paid preparer or firm that anticipated preparing and filing 100 or more returns. The e-file rate by paid preparers increased 12 percent in 2011.
Currently, nearly 80 percent of individual tax returns are filed electronically. The IRS has processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990.
Preparers can review the process on IRS.gov at Become an Authorized e-file Provider or find additional guidance at the Frequently Asked Questions section.
If the requirement will cause undue hardship, preparers may seek a one-year waiver by submitting Form 8944PDF, Preparer e-file Hardship Waiver Request. If a client wants to file a paper return, the preparer should include Form 8948PDF, Preparer Explanation for Not Filing Electronically, with the return. A taxpayer choice statement should be obtained and kept with the preparer’s records.
Form 8948 does not have to be submitted with returns that are not currently accepted electronically by the IRS or the IRS has instructed taxpayers not to file them electronically. These returns are exempt from the federal e-file requirement. Other limited exemptions may apply.
Go to the Taxpros page for more information.
IR-2011-98, Oct. 6, 2011
WASHINGTON —The Internal Revenue Service announced today that it is issuing proposed regulations that would require paid tax return preparers, beginning in 2012, to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). It is the same form that is currently required to be completed and retained in a preparer’s records.
The due diligencePDF requirement, enacted by Congress over a decade ago, was designed to reduce errors on returns claiming the EITC, most of which are prepared by tax professionals.
The IRS created Form 8867, Paid Preparer's Earned Income Credit Checklist, to help preparers meet the requirement by obtaining eligibility information from their clients. Preparers have been required to keep copies of the form, or comparable documentation, which is subject to review by the IRS. To help ensure compliance with the law and that eligible taxpayers receive the right credit amount, the proposed regulations would require preparers, effective Jan. 1, 2012, to file the Form 8867 with each return claiming the EITC.
Further details can be found in REG-140280-09. Comments on the proposed regulations are due by Nov. 10, 2011, and a public hearing on the proposed regulations is scheduled for Nov. 7, 2011.
The EITC benefits low-and moderate-income workers and working families and the tax benefit varies by income, family size and filing status. Unlike most deductions and credits, the EITC is refundable –– taxpayers can get it even if they owe no tax. For 2011 tax returns, the maximum credit will be $5,751.
Although as many as one in five eligible taxpayers fail to claim the EITC, some of those who do claim it either compute it incorrectly or are ineligible. The IRS is proposing this step as part of its efforts to ensure that the credit is afforded to taxpayers who qualify. For 2009, over 26 million people received nearly $59 billion through the EITC. Tax professionals prepare close to 66 percent of these claims.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-114, Nov. 30, 2011
WASHINGTON –– The Internal Revenue Service will kick off a series of public meetings  Thursday, Dec. 8 to gather feedback on how to implement a series of long-term changes to the tax system described by IRS Commissioner Doug Shulman in an April 2011 speech at the National Press Club.  In that speech, the Commissioner described a vision where the IRS would move away from the traditional “look back” model of compliance, and instead perform substantially more “real time,” or upfront matching of tax returns when they are first filed with the IRS.  The goal of this initiative is to improve the tax filing process by reducing burden for taxpayers and improving overall compliance upfront.
Under the vision of a real-time tax system, the IRS could match information submitted on a tax return with third-party information right up front during processing and could provide the opportunity for taxpayers to fix the tax return before acceptance if it contains data that does not match IRS records
By contrast, today the IRS conducts a significant number of compliance activities months after the tax return has been filed and processed.  It is not uncommon for a taxpayer to receive a notice 12 to 18 months after a tax return is filed.  This after-the-fact compliance approach can create problems and frustrations for both taxpayers and the IRS.
At the public meetings, IRS officials will solicit feedback and input from outside stakeholders to provide comments and insight. The first meeting will feature representatives of consumer groups, the tax professional community and government representatives.  A future public meeting will include, among others, representatives of the employer and payroll community, the software industry, financial institutions and additional government representatives.  
The first meeting, scheduled at 9:00 a.m. on Dec. 8, will take place at the IRS Headquarters Building Auditorium, 1111 Constitution Ave., NW, Washington, D.C. Those who would like to attend the meeting should e-mail the IRS at CL.NPL.Communications@irs.gov with the contact information for the attendees or call the IRS at 202-622-3359.
The next public meeting will be held early next year.
Follow the IRS on New MediaSubscribe to IRS Newswire
Video: Undeliverable Refunds: English | Spanish | ASLPodcast: Undeliverable RefundsMP3
IR-2011-113, Nov. 30, 2011
WASHINGTON — In an annual reminder to taxpayers, the Internal Revenue Service announced today that it is looking to return $153.3 million in undelivered tax refund checks. In all, 99,123 taxpayers are due refund checks this year that could not be delivered because of mailing address errors.
Undelivered refund checks average $1,547 this year.
Taxpayers who believe their refund check may have been returned to the IRS as undelivered should use the “ Where’s My Refund?” tool on IRS.gov. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems.
Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Last year, more than 78.4 million taxpayers chose to receive their refund through direct deposit. Taxpayers can receive refunds directly into their bank account, split a tax refund into two or three financial accounts or even buy a savings bond.
The IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. Nearly 8 out of 10 taxpayers chose e-file last year. E-file combined with direct deposit is the best option for taxpayers to avoid refund problems; it’s easy, fast and safe.
The public should be aware that the IRS does not contact taxpayers by e-mail to alert them of pending refunds and does not ask for personal or financial information through email.  Such messages are common phishing scams.  The agency urges taxpayers receiving such messages not to release any personal information, reply, open any attachments or click on any links to avoid malicious code that can infect their computers.  The best way for an individual to verify if she or he has a pending refund is going directly to IRS.gov and using the “Where’s My Refund?” tool.   
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-112, Nov. 28, 2011
WASHINGTON ― The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2012. The rates will be: 
three (3) percent for overpayments [two (2) percent in the case of a corporation];
three (3) percent for underpayments;
five (5) percent for large corporate underpayments; and
one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
The 3 percent rate also applies to estimated tax underpayments for the first calendar quarter in 2012 and for the first 15 days in April 2012.
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. Further, the federal short-term rate that applies during the third month following the taxable year also applies during the first 15 days of the fourth month following the taxable year.
The interest rates announced today are computed from the federal short-term rate during October 2011 to take effect Nov. 1, 2011, based on daily compounding.
Revenue Ruling 2011-32PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2011-52, dated Dec. 27, 2011.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-110, Nov. 21, 2011
WASHINGTON — The Internal Revenue Service announced availability of the fall 2011 issue of the Statistics of Income Bulletin, which features data for 140.5 million individual income tax returns filed for tax year 2009. Adjusted gross income (AGI) reported on these returns totaled $7.6 trillion.
The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue of the SOI Bulletin also includes articles on the following:
Partnership returns.  For tax year 2009, more than 3 million partnerships filed federal tax returns, reporting $18.8 trillion in total assets and almost $410 billion in total net income.
Municipal bonds.   The majority of municipal bonds were tax-exempt governmental bonds, of which there were 22,000 issued in 2009, raising $340.7 billion in proceeds for public projects, such as schools, transportation infrastructure and utilities. 
Charities, Social Clubs, and Other Tax-Exempt Organizations. For 2008, nonprofit charitable organizations, excluding private foundations, reported $2.5 trillion in total assets and $1.4 trillion in revenue.
The Statistics of Income Bulletin is available for download at IRS.gov/taxstats.  Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.
Follow the IRS on New Media
 Subscribe to IRS Newswire
IR-2011-109, Nov. 16, 2011
WASHINGTON — One of the Internal Revenue Service’s main advisory panels for tax administration today issued its 2011 annual report, covering a range of key issues affecting taxpayers.
The Internal Revenue Service Advisory Council (IRSAC) issued its report at a public meeting. IRSAC’s primary purpose is to provide an organized public forum for senior IRS executives and representatives of the public to discuss relevant tax administration issues.
"During the past year, IRSAC has tackled many important tax policy and tax administration issues," said IRS Commissioner Doug Shulman. "We welcome the committee’s suggestions as we address future challenges."
Based on its findings, IRSAC made several recommendations on a broad array of issues and concerns including, among other things, the following:
Remote Work
Commercial Awareness
Empower Exam Managers as an Alternative to SBSE Fast Track Settlement Program
Enhance Worker Classification Compliance with Voluntary Disclosure
Schedule D (Capital Gains and Losses) Instructions and New Reporting Requirements, Repeater Balance Due Taxpayers
Refundable Adoption Credit
Exclusive Authority over Discipline
Coordination of Administrative Responsibility over Discipline
IRSAC is administered by the National Public Liaison Office. IRSAC draws its members from the tax professional community and members of academia. The Commissioner’s Advisory Group was established in 1953 and renamed IRSAC in 1998 to focus as an advisory body to the entire IRS.
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-126, Dec. 27, 2011
WASHINGTON—The Internal Revenue Service and Treasury Department today published in the Federal Register temporary regulations that provide guidance to taxpayers on the treatment of amounts paid to acquire, produce or improve tangible property and regarding the accounting for, and dispositions of, property subject to depreciation. These regulations provide objective standards and bright-line rules intended to simplify compliance with the capitalization provisions contained in section 263(a) of the Internal Revenue Code.
The temporary regulations generally are effective for expenditures made on or after Jan. 1, 2012, and therefore these regulations do not affect taxpayers’ 2011 tax returns.  The IRS and Treasury Department anticipate publishing additional guidance that will advise taxpayers regarding how to obtain automatic consent to change to a method of accounting provided in the temporary regulations for taxable years beginning on or after Jan. 1, 2012.  These automatic consent requests may be filed beginning with taxpayers’ 2012 tax returns.  Taxpayers may not request a change to a method described in the temporary regulations on their 2011 tax returns.
The temporary regulations also were released as a notice of proposed rulemaking, offering taxpayers the opportunity to comment on the rules.  Written comments are requested by March 26, 2012, and a public hearing on the regulations is scheduled for April 4, 2012.  
Follow the IRS on New MediaSubscribe to IRS Newswire
IR-2011-124, Dec. 23, 2011
WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.
Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.
Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.
Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).    
This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.
The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.
Follow the IRS on New MediaSubscribe to IRS Newswire