etrent17/irs-articles huggingface dataset:
IR-2008-25, Feb. 25, 2008
WASHINGTON — The Internal Revenue Service announced the launch of a simple electronic filing system that small tax-exempt organizations may use to comply with a new law requiring them to file an annual return.
In the past, small tax-exempt organizations generally were not required to file Forms 990 or 990-EZ, the annual information returns for tax-exempt organizations. But the Pension Protection Act of 2006 requires that tax-exempt organizations that normally have annual gross receipts of $25,000 or less must file an electronic Form 990-N, "Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required to File Form 990- or 990-EZ," for tax years beginning in 2007.
The Form 990-N is required under the new law to be filed electronically. "Filing Form 990-N electronically will help make this process easier for tax-exempt organizations," said Richard Spires, IRS Deputy Commissioner for Operations Support. "Like our other e-file options, this process is fast and reduces the chance for making errors."  
Filing the e-Postcard is free and easy. To file, small tax-exempt organizations will need only a few basic pieces of information:  the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.
"The information on the form, which will be available to the public, will help ensure that potential donors have the basic information they need about the organization," said Lois G. Lerner, the director of the IRS’ Exempt Organizations Division.
The due date for filing Form 990-N is the 15th day of the fifth month after the close of the tax year. This means, for example, that an organization whose most recent tax year ended on Dec. 31, 2007, must file Form 990-N by May 15, 2008.  The new law provides that organizations that do not file Form 990-N for three consecutive years will lose their tax-exempt status.
“Because this new filing requirement is a big change for small tax-exempt organizations, we have made a special effort to reach out and work with the tax-exempt community to let affected organizations know about it,” Lerner said. 
The IRS also has launched a disclosure site on IRS.gov where the public can view a particular organization’s e-Postcard. 
The IRS is encouraging everyone — individual volunteers, tax practitioners and larger organizations — to spread the word about the new e-Postcard reporting requirement. “People do a lot to help their communities by volunteering their time and money to local charities. We're asking them to also offer a helping hand by making sure that charities know about the law change," Lerner said.
Further information, including frequently asked questions and educational materials, are available on the charities and non-profits section of IRS.gov.
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IR- 2008 –24, Feb 22, 2008
WASHINGTON — Agricultural industry taxpayers, farmers and fishermen, who electronically file Form 1040 returns with Form 4136PDF, Credit for Federal Tax Paid on Fuels, must wait until March 3 to e-file the newly-revised Form 4136.
Normally, 1040 filers who are farmers or fishermen are not required to make an estimated tax payment if they file their return and pay all taxes due by March 1.   But this year, because March 1 falls on a Saturday, the date extends to Monday, March 3.  For eligible farmers and fishermen who attach Form 4136 to their Form 1040, the return will be considered timely filed with all tax paid if the return is e-filed and accepted on or before March 10 and all tax due is paid on or before March 10.
This delay does not affect farmers and fishermen who are not attaching Form 4136. Likewise, paper filers, whether or not they are attaching Form 4136, are also not eligible for the extra time.
Form 4136 has been updated to reflect changes relating to the Leaking Underground Storage Tank tax, which was part of the Tax Technical Corrections Act of 2007, enacted Dec. 29.
The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms.   For that reason, people using tax software should check with their provider for updates that include the revised Form 4136.
Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 4136 by March 3.   The paper Form 4136 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.
IRS estimates this delay affects approximately 77,000 farmers and fishermen who electronically file Form 1040 with Form 4136 in the early weeks of the filing season. Publication 505, Tax Withholding and Estimated Tax, has more information on the special estimated tax rules for farmers and fishermen.
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IR- 2008 –23, Feb 22, 2008
WASHINGTON — After reviewing the fourth quarter 2007 sales of American Honda Motor Company, Inc., the Internal Revenue Service announced that purchasers of qualifying Honda vehicles may continue to claim the Alternative Motor Vehicle Credit. Given the number of vehicles sold, the phase out period for Honda vehicles began on Jan. 1, 2008.
Honda sold 8,017 qualifying vehicles to retail dealers in the quarter ending Dec. 31, 2007. This brings the cumulative sales of qualified Honda hybrid vehicles sold from the period of Jan. 1, 2006, to Dec. 31, 2007, to 73,108. 
Taxpayers may claim the full amount of the credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th qualified vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
 

Qualifying Vehicle


Full Credit When Purchased By 12/31/07


Reduced Credit When Purchased From 01/1/08 through 6/30/08


Reduced Credit When Purchased From 7/1/08  through 12/31/087


Beginning 1/01/09


2007 Accord Hybrid AT


$1,300


$650


$325


$0


2007 Accord Hybrid Navi AT


$1,300


$650


$325


$0


2007 Civic Hybrid CVT


$2,100


$1,050


$525


$0


2008 Civic Hybrid CVT


$2,100


$1,050


$525


$0

 
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Updated March 11, 2011 — Form 4562-FY has been obsoleted.
IR-2008-22, Feb. 21, 2008
WASHINGTON — In addition to providing stimulus payments to individuals, the Economic Stimulus Act of 2008 provides incentives to businesses. These incentives include a special 50-percent depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008.
50-Percent Special Depreciation Allowance
Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over several years. It is an annual allowance for the wear and tear, deterioration or obsolescence of the property.
Under the new law, a taxpayer is entitled to depreciate 50 percent of the adjusted basis of certain qualified property during the year that the property is placed in service. This is similar to the special depreciation allowance was previously available for certain property placed in service generally before Jan. 1, 2005, often referred to as “bonus depreciation.” To qualify for the 50 percent special depreciation allowance under the new law, the property must be placed in service after Dec. 31, 2007, but generally before Jan. 1, 2009.
To reflect the new 50-percent special depreciation allowance, the IRS developed a new version of the depreciation and amortization form for fiscal year filers. The new form is designated as the 2007 Form 4562-FY and is available on this Web site. 
New Depreciation Limits on Business Vehicles
The total depreciation deduction, including the section 179 deduction, a business can take for a passenger automobile, which is not a truck or van, used in the business and first placed in service in 2008 is $2,960 -- $10,960 for automobiles for which the special depreciation allowance applies. The maximum deduction that can be taken for a truck or van used in a business and first placed in service 2008 is $3,160 -- $11,160 for trucks or vans for which the special depreciation allowance applies.
Section 179 Expensing
In general, a qualifying taxpayer can elect to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property, after the relevant section in the Internal Revenue Code.
Under the new law, a qualifying business can expense up to $250,000 of section 179 property purchased by the taxpayer in a tax year beginning in 2008. Absent this legislation, the 2008 expensing limit for section 179 property would have been $128,000. The $250,000 amount provided under the new law is reduced if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $800,000.
The new law does not alter the section 179 limitation imposed on sport utility vehicles, which have an expense limit of $25,000.
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IR-2008-20, Feb. 15, 2008
WASHINGTON — The Internal Revenue Service is seeking candidates for membership on the Electronic Tax Administration Advisory Committee (ETAAC). All applicants should submit a resume and complete an application formPDF for the fall vacancies. In addition, the IRS will require a federal tax check waiver and a Federal Bureau of Investigation (FBI) check of the best qualified applicants. The deadline for submitting applications is Tuesday, April 1, 2008.
ETAAC provides an organized public forum for discussion of electronic tax administration issues in support of the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns. ETAAC provides an annual report to Congress on IRS’s progress in increasing electronic transactions.
ETAAC researches, analyzes, considers and makes recommendations on a wide range of electronic tax administration issues. Membership on ETAAC requires expertise in electronic tax administration, a personal commitment of approximately 100 hours a year and a desire to help shape the electronic tax administration system.
For additional information, please send an e-mail to etaac@irs.gov.
ETAAC was created in 1998 by the IRS Electronic Tax Administration as required by the IRS Restructuring and Reform Act of 1998 (RRA 98).
Related Items:

ETAAC Application FormPDF


ETAAC Information Sheet

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IR-2008-19, Feb. 14, 2008
ASHINGTON — The Internal Revenue Service is now processing five tax forms affected by legislation involving the Alternative Minimum Tax (AMT).
On Monday, IRS systems began to accept and process returns that include the five affected forms. After several days of processing, the IRS has confirmed all systems are working properly.
In late December, the IRS announced it would delay processing of several tax forms. For the vast majority of taxpayers, the filing season this year began on time. But for any taxpayer whose return included any of the five affected forms, filing opened on Feb. 11.
Taxpayers who use the five forms can now file their tax returns as normal.
The affected forms are:

Form 8863, Education Credits.


Form 5695, Residential Energy Credits.

Form 8396, Mortgage Interest Credit.
Form 8859, District of Columbia First-Time Homebuyer Credit.
Approximately 13.5 million taxpayers will use these forms this year. Altogether, the IRS expects to receive nearly 140 million individual tax return submissions this year.
The IRS has worked closely with the software industry and tax practitioners during the reprogramming process to minimize disruptions for taxpayers and the tax community. For more information, see Alternative Minimum Tax – How It Affects Filing Season 2008.
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IR-2008-15, Feb. 7, 2008
WASHINGTON — As some taxpayers begin to prepare their paper tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.
For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.
Taxpayers should send:

Returns from Iowa, Kansas, Oklahoma and Wisconsin to the IRS center in Fresno, California.
	 


Returns from Kentucky to the IRS center in Austin, Texas.
	 


Returns from Pennsylvania and West Virginia to the IRS center in Kansas City, Missouri.

For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package should refer to the back cover of the instructions to Form1040PDF, 1040APDF or 1040EZPDF.
Taxpayers who e-file will not be affected by these changes. Last year, 57 percent of all individual income tax filers chose to e-file their tax returns.
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IR-2008-14, Feb. 6, 2008
WASHINGTON — Things have gotten easier for taxpayers who need help preparing their federal returns this year. The IRS has enhanced both Publication 17 and Where’s My Refund?, two key electronic tools available on this Web site, IRS.gov, the official Web site of the IRS. These improvements will help any taxpayer with Internet access find answers to tax questions quickly, prepare returns accurately and file on time.
Publication 17, Your Federal Income Tax — The online version of Publication 17 now contains electronic links allowing users to more quickly navigate this widely used publication. Both the downloadable PDFPDF and the html version of the 2007 Publication 17 contain more than 800 hyperlinks. The links allow users to jump immediately to other parts of the publication, reducing the time it takes to access information. In accordance with the Americans with Disabilities Act, the html version of Publication 17 on IRS.gov is accessible to visually impaired taxpayers.
Where’s My Refund? — The online refund-tracking tool Where’s My Refund? is now available in Spanish as well as English. Taxpayers can access the Spanish version through either the Where’s My Refund? page on IRS.gov or the Spanish-language portal. The goal of this new feature is to make tax information available to taxpayers who don’t speak English or those who know English as a second language. Taxpayers without Internet access can get the same information about their refunds by calling the IRS Refund Hotline at 1-800-829-1954.
Official IRS Web Site Is IRS.gov — Taxpayers looking for the IRS online should type www.irs.gov into their Web browsers. Taxpayers should also beware of Web sites that may resemble IRS.gov but end in .com, .net, .org, .biz or any other domain name extension. For the genuine IRS website, it’s IRS.gov.
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IR-2008-45, March 18, 2008
WASHINGTON — The Department of the Treasury, the Internal Revenue Service and the Taxpayer Advocacy Panel are committed to creating the most user-friendly, customer-oriented tax administration system possible. 
Interested civic-minded individuals are needed to help improve the nation’s tax agency by applying to be members of the Taxpayer Advocacy Panel (TAP).  The Panel provides a forum for citizens from each state to make suggestions regarding IRS decision making.
The mission of the panel is to listen to taxpayers, identify taxpayers’ issues and make recommendations for improving IRS service and customer satisfaction. TAP members:
Provide opportunities for citizen input and make recommendations to the IRS on customer service issues;
Identify and prioritize taxpayer issues; 
Report annually to the Treasury Dept., the IRS and the National Taxpayer Advocate;
Participate in meetings where taxpayers are invited to raise issues about their experiences with the IRS; and
Participate in taxpayer outreach opportunities by speaking to individuals and groups about the panel.
“As the IRS continues to examine taxpayers’ needs in the area of service, the Taxpayer Advocacy Panel has emerged as a vital source for gathering and providing information from the perspective of taxpayers,” said Nina E. Olson, National Taxpayer Advocate. “TAP’s role will ultimately aid taxpayers by helping the IRS to provide them with the top quality service they deserve."
To qualify as a TAP member, applicants must be U.S. citizens and be able to commit 300 to 500 hours during the year to the panel. In addition, they must be current with their tax obligations and pass a criminal background check. 
This year the TAP is accepting applications from U.S. citizens who reside in the following locations:  Alabama, Alaska, Arizona, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Puerto Rico, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
To apply, complete and submit an application online, at www.improveirs.org between March 17, 2008 and April 30, 2008.  You may also apply by calling 1-888-912-1227 to request a paper application form.
All applications must be received no later than April 30, 2008.
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IR-2008-43, March 14, 2008
WASHINGTON — The Internal Revenue Service (IRS) today released the 2007 IRS Data Book, which is an annual snapshot of IRS activities for a given fiscal year.
The report describes activities of the IRS from Oct. 1, 2006, to Sept. 30, 2007, and includes information about returns filed, tax collections, enforcement, taxpayer assistance, as well as the IRS budget and workforce.
During fiscal year 2007, the IRS collected almost $2.4 trillion in taxes (net of refunds) and processed more than 235 million returns. More than 114 million individual income tax return filers received tax refunds that totaled $248.6 billion. In fiscal year 2007, IRS spent an average of 40 cents to collect each $100 of tax revenue, which was the lowest in seven years and down from 42 cents per $100 in fiscal year 2006.
IRS examined nearly 1.4 million individual income tax returns in fiscal year 2007. IRS personnel answered more than 33.2 million toll-free calls from taxpayers during the fiscal year, and the IRS Web site received about 215 million visits.
An electronic version of the 2007 IRS Data Book can be found on the Tax Stats page.
Printed copies of the IRS Data Book, Publication 55B, will be available by mid-April 2008 from the U.S. Government Printing Office. To obtain a copy, write to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954, or call (202) 512-1800 for voicemail, or fax a request to (202) 512-2250.
 
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IR-2008–40, March 12, 2008
WASHINGTON — The Internal Revenue Service today issued a notice providing procedures for vehicle manufacturers to certify that a fuel cell vehicle meets the requirements for a tax credit.  It also provides guidance to taxpayers who purchase certified vehicles regarding what they must do to use the credit.
Under the law, the new qualified fuel cell motor vehicle credit is available to purchasers of qualified vehicles.  The amount of the new qualified fuel cell motor vehicle credit is based on the weight of the vehicle and on when the vehicle is placed in service.  An additional credit may be available for a fuel cell passenger automobile or light truck based on a comparison of the city fuel economy rating of that vehicle with the 2002 model year city fuel economy of a vehicle in its weight class.
For fuel cell vehicles that weigh not more than 8,500 pounds, the base credit amount is $8,000 if the vehicle is placed in service on or before Dec. 31, 2009.  The base credit amount is reduced to $4,000 if the vehicle is placed in service after that date.
The amount of the credit available for heavy vehicles varies from $10,000 to $40,000, depending on the weight of the vehicle.
The notice also provides guidance to taxpayers who purchase vehicles regarding the conditions under which they may rely on the vehicle manufacturer’s certification.  The purchaser may claim a credit for the certified amount for a fuel cell vehicle if it is placed in service by the taxpayer after Dec. 31, 2005, and is purchased on or before Dec. 31, 2014.
To certify a vehicle, the manufacturer must submit to the IRS a certification that includes, among other items, the make, model, model year, proposed credit amount and a statement affirming that the vehicle is propelled by power derived from one or more cells that convert chemical energy into electricity.
Related Items:
Notice 2008-33PDF
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IR-2008-38, March 10, 2008
WASHINGTON — The National Taxpayer Advocate, Nina E. Olson, announced today that the Internal Revenue Service has awarded almost $9 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2008 grant cycle (Jan. 1, 2008, through Dec. 31, 2008). 
LITCs are organizations independent from the IRS 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 tax education and outreach for taxpayers who speak English as a second language.  IRS Publication 4134PDF, Low Income Taxpayer Clinic List, provides information on clinics in your area and contains details about the languages each clinic serves in addition to English.
Through the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations.  For the 2008 grant cycle, the IRS awarded LITC grants to 154 organizations representing all 50 states, plus the District of Columbia, Puerto Rico, and Guam.
Questions about the LITC Program can be addressed to the LITC Program Office at (202) 622-4711 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov
A list of organizationsPDF awarded a matching grant for the 2008 grant cycle is available.
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IR-2008-36, March 7, 2008
WASHINGTON — Using the Industry Issue Resolution (IIR) program, the Internal Revenue Service today issued guidance regarding the proper pooling treatment of automobiles, light-duty trucks, and crossover vehicles which have characteristics of trucks and cars under the dollar-value, last-in, first out (LIFO) inventory method.
The Treasury Department and Internal Revenue Service recognize that the distinctions between cars and light-duty trucks have diminished significantly since the issue was last addressed in IRS guidance and by the Courts. To address these distinctions and in response to an IIR request submitted by Miller Chevalier Chartered and the National Auto Dealership Association (NADA), The Treasury Department and the Internal Revenue Service issued Revenue Procedure 2008-23. 
Effective for tax years ending on or after December 31, 2007, the revenue procedure provides a safe harbor pooling method, the Vehicle-Pool Method, for resellers of cars and light-duty trucks. (Light-duty trucks are trucks with a gross vehicle weight of 14,000 pounds or less.)
The Vehicle-Pool Method allows a reseller to establish a New Vehicle pool for inventories of new vehicles including new cars, new light-duty trucks, and new crossover vehicles including SUVs, minivans, and other similar vehicles and a Used Vehicle pool for inventories of used vehicles.
Revenue Procedure 2008-23 also provides the procedures for a reseller subject to the LIFO pooling requirements to obtain automatic consent to change to the Vehicle-Pool Method.   
The IIR program, launched in 2001 by IRS, tackles tax issues submitted by taxpayers, associations and other groups representing businesses. The objective is to resolve frequently disputed or burdensome tax issues. 
Information on the Industry Issue Resolution program may be found in Revenue Procedure 2003-36PDF, 2003-18 I.R.B.859
Related Item: 
IR-2007-39, Accounting Issue for Automobile Dealers to be Addressed by IRS Industry Issue Resolution Program
 
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IR-2008-35, March 7, 2008
WASHINGTON — The Treasury Department and the Internal Revenue Service issued proposed regulations to clarify the treatment of expenditures incurred in selling, acquiring, producing or improving tangible assets.
These proposed regulations replace the regulations that were proposed by the Treasury Department and the IRS in August 2006, and take into account many of the comments received in response to the 2006 proposed regulations.
For many years, there has been controversy about how taxpayers characterize certain expenditures for tax purposes.  Expenditures that result in improvements must be capitalized and cannot be immediately deducted, but those that are necessary repair and maintenance expenses may be deducted immediately. There has been uncertainty on how to apply the tests used to determine when expenses may be deducted immediately and when expenses must be capitalized and depreciated over a certain number of years. 
Like the 2006 proposed regulations, these proposed regulations provide guidance on how to determine whether an expenditure must be capitalized as an improvement cost.  Specifically, these proposed regulations require capitalization of expenditures that result in a betterment or restoration of the property, and they describe the factors to be used in determining whether an expenditure results in a betterment or restoration. 
The proposed regulations also provide guidance concerning the appropriate unit of property to which the betterment and restoration rules should be applied.   All of these rules have been revised from the 2006 proposed regulations in response to the concerns raised by commentators.
In addition, the proposed regulations address expenditures to sell, acquire, or produce tangible property. The 2006 proposed regulations also addressed these expenditures, but this new proposal expands on those rules by providing specific rules regarding material and supplies, and by addressing the treatment of expenditures to facilitate the acquisition or production of property. 
To reduce administrative and compliance costs the proposed regulations provide some safe harbors and simplifying assumptions.  For example, the proposed regulations provide a de minimis rule under which small cost items are exempt from capitalization.  The proposed regulations also provide a safe harbor that allows taxpayers to deduct certain routine maintenance expenses.  Finally, taxpayers governed by regulatory accounting principles may use an optional regulatory accounting method.
 
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Updated April 2015 — For current mailing addresses, please see Where to File Paper Tax Returns - With or Without a Payment. 
IR-2008-34, March 6, 2008
WASHINGTON — The Internal Revenue Service announced today that individuals who normally do not file a tax return but must do so this year in order to receive their 2008 economic stimulus payment can now use the IRS Free File program to help them file returns for 2007.
IRS and several of its partners in the Free File Alliance can now accept returns submitted by people who have no legal requirement to file other than to receive their payments. People in this category should take care to use only those companies listed on the Free File - Economic Stimulus Payment page.
“If you are only filing a return to receive your economic stimulus payment, Free File is a great option for you. All you need to do is follow the simple instructions provided by the software. It’s easy, and it’s free,” said Acting IRS Commissioner Linda E. Stiff.
Individuals and families must have at least $3,000 of income from any combination of earned income, Social Security retirement or disability benefits, certain Railroad retirement benefits, or disability compensation, disability pension, or survivor benefits paid by the Veterans Affairs. The minimum economic stimulus payment is $300 for individuals and $600 for married couples. 
To obtain a payment, all people who are eligible for payments of up to $600 for individuals ($1,200 for married couples) must file a tax return in order for the IRS to know their name, address and eligibility. Parents also may qualify for a $300 payment for each eligible child younger than 17. Valid Social Security numbers are required.
Taxpayers who normally file a tax return and want to use Free File, should simply go to the main Free File page and click ‘Start Now’ to see a list of the 19 companies offering free preparation and electronic filing to the IRS. Free File is available to 97 million taxpayers who earn $54,000 or less.
There is no charge for using IRS Free File. With just a few answers, people can complete a simple form and use IRS e-file. The IRS also urges all filers to use direct deposit, if they have a checking or savings account, because it is the fastest way to receive an economic stimulus payment.
Once people file a tax return, they don’t need to do anything more. The IRS will do the rest. The IRS will begin issuing payments starting in May.
Related Item:
Tax Return Mailing Addresses
IR-2008-32 , March 3, 2008
 
WASHINGTON — The Internal Revenue Service announced that e-file is off to a fast start in 2008 with more than 38 million tax returns filed electronically so far.
The 2008 e-file level is up 5 percent from the 36 million returns filed for the same period last year, with double digit growth coming from taxpayers filing from their home computers.  
“E-filing continues to be the preferred way to file your tax return. It is the fast, easy, safe and more accurate way to file your tax return,” said IRS Acting Commissioner Linda E. Stiff. 
According to the new filing season statistics for the week ending Feb. 22, 2008, one of the biggest areas of growth is returns electronically filed from home computers. More than 12.3 million returns were filed from home, an increase of almost 14 percent from the same time last year.
Overall, 46.9 million tax returns have been filed so far in 2008, a 1.5 percent increase from the 46.2 million returns that had been filed at the same point in 2007.
As for the total amount of all refunds, $106.7 billion has been issued so far in 2008 with the average refund amount of $2,708, up two percent from the same time last year. So far this year, the IRS has directly deposited 33 million refunds out of the total of 39 million refunds. The direct deposit refunds were valued at just over $96 billion with the average amount of a direct deposit refund of $2,900. 
The IRS reminds taxpayers who have not filed their 2007 returns yet that direct deposit is the fastest way to get both regular refunds and economic stimulus payments. These stimulus payments will be direct deposited for those eligible filers who select that option when filing their 2007 tax returns.  For more information on the economic stimulus payment go to IRS.gov.
People are visiting the IRS Web site at IRS.gov in record numbers. The IRS has recorded more than 72 million unique visits to IRS.gov this year, up from about 67 million for the same period last year, an increase of 8 percent.
 

2008 FILING SEASON STATISTICS


Cumulative through the weeks ending 2/23/07 and 2/22/08


Individual Income Tax Returns


2007


2008


% Change


Total Receipts


46,244,000


46,918,000


1.5%


Total Processed


41,905,000


42,866,000


2.3%


 


 


 


 


E-filing Receipts:


 


 


 


TOTAL


36,233,000


38,059,000


5.0%


Tax Professionals


25,363,000


25,699,000


1.3%


Self-prepared


10,870,000


12,360,000


13.7%


 


 


 


 


Web Usage:


 


 


 


Visits to IRS.gov


67,104,000


72,596,000


8.2%


 


 


 


 


Total Refunds:


 


 


 


Number


38,622,000


39,387,000


2.0%


Amount


$102.552


Billion


$106.651


Billion


4.0%


Average refund


$2,655


$2,708


2.0%


 


 


 


 


Direct Deposit Refunds:


 


 


 


Number


31,586,000


33,131,000


4.9%


Amount


$91.262


Billion


$96.071


Billion


5.3%


Average refund


$2,889


$2,900


0.4%

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IR-2008-93, August 7, 2008
WASHINGTON — Businesses and associations have until Aug. 31 to submit tax issues to the Internal Revenue Service to be included in the Fall 2008 review in the Industry Issue Resolution (IIR) Program.
IIR is an IRS program to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues submitted by associations and others representing both small and large business taxpayers, resulted in tax guidance that has affected thousands of taxpayers.
Recent submissions accepted into the IIR program include:
Integrated Public Utilities - regarding an optional method to be used by integrated utility companies in computing their qualified production activities income under IRC section 199(c).
Auto Last In First Out - for automobile wholesalers, manufacturers and dealers regarding the proper treatment of the dollar-value, LIFO inventory method for pooling purposes of crossover vehicles, which have characteristics of trucks and cars.
Recent guidance issued as a result of the IIR program includes:
A safe harbor pooling method, the Vehicle-Pool Method, is available for resellers of cars and light-duty trucks under the last-in, first out (LIFO) inventory method effective for tax years ending on or after December 31, 2007, (Revenue Procedure 2008-23)
Valuation of Parts Inventory by Heavy Equipment Distributors (Revenue Procedure 2006-14)
Clarification regarding circumstances when facsimile signatures may be used to sign employment tax forms. (Revenue Procedure 2005-39)
Explanation of the circumstances under which insurance companies that make incentive payments to health care providers will be permitted to include those payments in unpaid losses. The revenue procedure also provides procedures under which taxpayers may obtain automatic consent of the Commissioner to change their accounting method for those payments. (Revenue Procedure 2004-41)
For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue.  The goal is to recommend guidance to resolve the issue.  This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations. IIR project selections are based on the criteria set forth in Revenue Procedure 2003-36PDF.
Requests for guidance on tax issues under the IIR program can be submitted at any time to IIR@irs.gov. Submissions received are reviewed semi-annually with selections next being made from issues submitted by August 31, 2008.
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IR-2008-30, March 3, 2008
WASHINGTON – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 2008, will drop by one percentage point. The new rates will be:
 
• six (6) percent for overpayments [five (5) percent in the case of a corporation];
• six (6) percent for underpayments;
• eight (8) percent for large corporate underpayments; and
• three and one-half (3.5) 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 in Revenue Ruling 2008-10PDF are computed from the federal short-term rate based on daily compounding determined during January 2008.
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IR-2008-68, April 30, 2008
WASHINGTON — Economic stimulus payments directly deposited into IRAs and other tax-favored accounts may be withdrawn tax-free and penalty-free, the Internal Revenue Service announced today.
This relief is designed to help taxpayers who may have been unaware that by choosing direct deposit for their entire regular tax refund, they were also choosing to have their stimulus payment directly deposited as well. If a taxpayer elected a split refund, however, their stimulus payment will be paid by a paper check.
This relief is available for amounts withdrawn from these tax-favored accounts that are less than or equal to a taxpayer’s directly deposited stimulus payment.
To qualify for this relief, funds must be taken out by April 15, 2009, in most cases. Without this relief, taxes, penalties and other special rules would apply to amounts removed from these accounts. Regular refunds are not eligible for this relief.
Eligible tax-favored accounts include traditional and Roth IRAs, health savings accounts (HSAs), Archer MSAs, Coverdell education savings accounts (ESAs) and qualified tuition programs, also known as QTPs or 529 plans. Thus, for example, a taxpayer whose $1,200 stimulus payment is directly deposited into his or her IRA can take out anywhere up to $1,200 from the IRA, tax-free and penalty-free.
In general, the deadline for these withdrawals is the due date or extended due date for filing a 2008 return. This means April 15, 2009, for most taxpayers, or Oct. 15, 2009, for those who obtain tax-filing extensions.
Details on reporting these withdrawals and claiming relief will be included in tax forms and instructions for 2008. Other details are in Announcement 2008-44PDF on this Web site.
Related Item:
Economic Stimulus Payments Information Center
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IR-2008-67, April 30, 2008
WASHINGTON — The Internal Revenue Service’s next Web cast aimed at educating tax and payroll professionals will provide the latest news and information on e-file, e-services and other electronic tools important to the practitioner community.
The latest Tax Talk Today program will appear on Tuesday, May 13, 2008, at 2 p.m. The Web cast is entitled “The Electronic IRS...more than just e-file”.
If you haven’t visited IRS.gov lately, you’ll be surprised and amazed how easy it is to find information about and use IRS’s ever-expanding, on-line products and services.
This month, tune in for the latest news and information on e-file, e-services, and other electronic tools important to the practitioner community.
The show’s panel of experts includes Roger Harris, President and C.O.O., Padgett Business Services®/SmallBizPros, Inc., Padgett Foundation; Tony Tullo, Federal Compliance Director, Automatic Data Processing; Beth Jones, Director, Electronic Products & Services Support (EPSS), IRS Wage & Investment (W&I) Division; and Paul Mamo, Director, Development Services Division, IRS Electronic Tax Administration. 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 CEC by viewing the May 13 Web cast.
Archived shows are available on the site also.
The next show is on Tuesday, July 8 when the topic will be “Retirement Plan Pitfalls.”
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IR-2008-63, April 22, 2008
The Internal Revenue Service today launched a campaign to help educate new self-employed small business owners about federal tax responsibilities.
The campaign kick-off coincides with the Small Business Administration’s annual Small Business Week, April 21-25, which recognizes outstanding small business owners for their contributions to the nation's economy and their personal achievements.
“One of the biggest challenges faced by people starting out in business is understanding and meeting their tax filing requirements,” said Kathy Petronchak, commissioner of the IRS’s Small Business/Self-Employed operating division. “It’s a new, different and potentially overwhelming experience for them. We want new small business owners to know that the IRS has resources to help them learn about their federal tax responsibilities and avoid common pitfalls.”
The campaign will provide new Schedule CPDF, Profit or Loss from Business, filers with improved and updated educational materials through a variety of channels, including IRS.gov, small business workshops and other outreach events.
Schedule C is filed by sole proprietors (one-owner businesses) as an attachment to their Form 1040 individual income tax return. Self-employed individuals with less complex situations – including business expenses of less than $5,000, no net losses and no employees – may be able to file Schedule C-EZPDF, Net Profit for Business.
About one in seven federal income tax returns includes a Schedule C or Schedule C-EZ. Taxpayers filed over 21 million Schedules C for tax year 2006, reporting overall net profits from sole proprietorships totaling more than $269 billion.
In this introductory phase of the campaign, IRS is offering some basic tips to avoid potential problems:
Classify workers properly as employees or independent contractors as determined by law, not the choice of the worker or business owner;
Deposit federal employment taxes, called trust fund taxes, according to the appropriate schedule;
Start making quarterly estimated quarterly payments to cover your own income tax and social security self-employment tax liability;
Keep good records to protect your personal and financial investment and to make tax filing easier;
Consider a tax professional to help you with Schedule C;
File and pay your taxes electronically; it’s fast, easy, and secure;
Protect financial and tax records to ensure business continuity in the event of a disaster; and
Avoid abusive tax avoidance schemes such as the IRS’s 2008 “Dirty Dozen."
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IR-2008-62, April 18, 2008
WASHINGTON — The Department of Treasury and Internal Revenue Service invite public comment on recommendations for items that should be included on the 2008-2009 Guidance Priority List. 
The Treasury Department's Office of Tax Policy and IRS use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance.  The Guidance Priority List focuses resources on guidance items that are most important to taxpayers and tax administration.  Published guidance plays an important role in increasing voluntary compliance by helping to clarify ambiguous areas of the tax law.
The 2008-2009 Guidance Priority List will establish the guidance that the Treasury Department and IRS intend to issue from July 1, 2008, through June 30, 2009. 
In reviewing recommendations and selecting projects for inclusion on the 2008-2009 Guidance Priority List, the Treasury Department and the IRS will consider the following:
Whether the recommended guidance resolves significant issues relevant to many taxpayers;
Whether the guidance may be appropriate for enhanced public involvement through the process described in Notice 2007-17, 2007-12 I.R.B. 748;
Whether the recommended guidance promotes sound tax administration;
Whether the recommended guidance can be drafted in a manner that will enable taxpayers to understand and apply the guidance easily;
Whether the IRS can administer the recommended guidance on a uniform basis; and
Whether the recommended guidance reduces controversy and lessens the burden on taxpayers or the IRS.
Please submit recommendations by May 31, 2008, for possible inclusion on the original 2008-2009 Guidance Priority List.    
Information on how to submit recommendations can be found in Notice 2008-47. Taxpayers are not required to submit recommendations for guidance in any particular format.  Taxpayers should, however, briefly describe the recommended guidance and explain the need for the guidance.  In addition, taxpayers may include an analysis of how the issue should be resolved. 
All comments will be available for public inspection and copying in their entirety. 
Related Item: 
Notice 2008-47PDF
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Note: this content has been edited from the original version to remove links or other information no longer available. The material was accurate at the time it was issued.
IR-2008-60, April 15, 2008
WASHINGTON — The Internal Revenue Service recently released for public comment the draft instructions to the 2008 Form 990, which is the return most tax-exempt organizations must file annually.
The instructions apply to the redesigned Form 990 that organizations will file for their 2008 tax years (returns filed in 2009). The final version of the redesigned Form 990 was unveiled in December 2007 (IRS news release IR-2007-204).
“Tax-exempt organizations provide tremendous benefits to the people and communities they serve, but their ability to do good work hinges upon the public’s trust,” said IRS Commissioner Doug Shulman. “The new Form 990 will foster this trust by greatly improving transparency and compliance in the tax-exempt sector. Public comment on the draft instructions will help the IRS to minimize the reporting burden on tax-exempt organizations, which is another important goal.”
The IRS seeks public comment on the draft instructions to ensure that the final instructions meet the needs of the tax-exempt community. The public comment period will run until June 1, 2008.
The IRS also released a list of special “highlights” with the draft instructions, in the hope that public comments give particular attention to these details. The IRS will post comments on its Web site as it did with comments about the draft redesigned Form 990 last year.
The draft 2008 Form 990 instructions include a general overview that explains its purpose, an explanation of who must file particular schedules and line-by-line instructions. The draft instructions also include new tools to assist organizations in answering certain questions and facilitating uniform reporting.
“We were immensely gratified by the amount and quality of public comments we received on the Form 990 redesign,” said Lois G. Lerner, director of the IRS Tax-Exempt Organizations division. “Public input resulted in a form that meets the needs of tax-exempt organizations, the public and tax administrators. We hope for similarly thoughtful and useful comments about the draft instructions.”
The draft Form 990 instructions are on the tax-exempt organizations part of the IRS Web site. To facilitate posting on the IRS Web site, please e-mail comments in a text (not picture) format.
Comments may also mailed to:
IRS
Draft 2008 Form 990 Instructions, SE:T:EO
1111 Constitution Ave., NW.
Washington, DC  20224
Related Items:

Draft Form 990 Instructions and other information

 
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