etrent17/irs-articles huggingface dataset:
IR-2007–140, Aug, 6 , 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of qualified Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit.
The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Ford sold 6,272 qualifying vehicles to retail dealers during the quarter ending June 30, 2007. This brings the total number of Ford qualifying hybrids reported to date to 33,547.
The credit amount and make and model of the certified vehicles sold are:
Ford Escape 2WD Hybrid, Model Year 2008 — $3,000
Ford Escape 2WD, Model Years 2005, 2006 and 2007 — $2,600
Ford Escape 4WD Hybrid, Model Year 2008 — $2,200
Ford Escape 4WD, Model Years 2005, 2006 and 2007 — $1,950
Mercury Mariner 4WD Hybrid, Model year 2008 — $2,200
Mercury Mariner 4WD, Model Years 2006 and 2007 — $1,950
Mercury Mariner 2WD Hybrid, Model Year 2008 — $3,000
Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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IR-2007-139, Aug. 6, 2007
 
WASHINGTON — After reviewing the second quarter 2007 sales of Toyota Motor Sales USA Inc., the Internal Revenue Service announced that purchasers of qualifying Toyota and Lexus vehicles may continue to claim the Alternative Motor Vehicle Credit. Given the number of vehicles sold, the phase out period for Toyota vehicles began on Oct. 1, 2006.
Toyota sold 70,641 qualifying vehicles to retail dealers in the quarter ending June 30, 2007. This brings the cumulative sales of qualified Toyota hybrid vehicles sold from the period of Jan. 1, 2006, through June 30, 2007, to 344,083.
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. The sale of Toyota’s 60,000th qualified vehicle occurred in the quarter ending June 30, 2006. Therefore, for qualifying vehicles purchased between Oct. 1, 2006, and March 31, 2007, consumers may claim 50% of the credit amount. Consumers who purchase qualifying vehicles between April 1, 2007, and Sept. 30, 2007, may only claim 25% of the credit amount. 
No credit is allowed after Sept. 30, 2007.
The applicable credit amounts are as follows:
 

Qualifying Vehicle


Full Credit When Purchased By 9/30/06


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


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


No Credit When Purchased After 9/30/07


05, 06 and 07 Toyota Prius


$3,150


$1,575


$787.50


$0


06 and 07 Toyota Highlander  2WD and 4WD


$2,600


$1,300


$650


$0


07 Toyota Camry Hybrid


$2,600


$1,300


$650


$0


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


$2,200


$1,100


$550


$0


07 Lexus GS450h


$1,550


$775


$387.50


$0

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IR-2007-137, Aug. 2, 2007
 
WASHINGTON — The Treasury Department and the Internal Revenue Service (IRS) released today an IRS report addressing the agency’s implementation of the 2006 strategy to improve voluntary compliance with federal tax laws. A copy of the report is attached.

The IRS report, Reducing the Federal Tax Gap: A Report on Improving Voluntary CompliancePDF, details steps currently being taken by the IRS, as well as those under development, to address key elements of the “tax gap.” The report builds on the seven components of the Comprehensive Strategy for Reducing the Tax GapPDF, which the Treasury Department released in September 2006. Those components are:

Reducing Opportunities for Evasion
	 


Making a Multi-Year Commitment to Research
	 


Continuing Improvements in Information Technology
	 


Improving Compliance Activities
	 


Enhancing Taxpayer Service
	 


Reforming and Simplifying the Tax Law
	 


Coordinating with Partners and Stakeholders

In each of these areas, the report sets out compliance objectives and initiatives, along with targeted completion dates, that the IRS is implementing to improve tax compliance over the next several years.
Detailed information is provided on each step currently being taken to reduce opportunities for tax evasion, leverage technology and support legislative proposals that, as implemented, will improve compliance. At the same time, the report reaffirms that taxpayer rights must be respected and burdens on compliant taxpayers must be minimized. The report also presents an outreach approach to ensure all taxpayers understand their tax obligations. Additionally, it recognizes the importance of having a multi-year research program that will assist in understanding both the scope of and reasons for noncompliance.
Full implementation of the initiatives outlined in the report will have a positive effect on the rate of voluntary compliance. The report reflects the commitment of the IRS to apply its resources where they are of most value in reducing noncompliance while ensuring fairness, observing taxpayer rights, and minimizing the burden on taxpayers who comply. 

The overall compliance rate achieved under the U.S. revenue system is quite high.  For the 2001 tax year, the IRS estimates that over 86 percent of tax liabilities were collected, after factoring in late payments and recoveries from IRS enforcement activities. Nevertheless, an unacceptable amount of the tax that should be paid every year is not, short-changing the vast majority of Americans who pay their taxes accurately and giving rise to the tax gap. The gross tax gap was estimated to be $345 billion in 2001. After enforcement effects and late payments, this number was reduced to a net tax gap of approximately $290 billion.
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IR-2007-136, Aug. 1, 2007
WASHINGTON — The Internal Revenue Service announced today the appointment of George Blaine to the position of Associate Chief Counsel, Income Tax and Accounting, (ITA) effective August. 3, 2007. He will replace Lewis Fernandez who will retire on that date.
"We in the Office of Chief Counsel have been extremely fortunate that Lew Fernandez was willing a year ago to take on the top leadership role within Income Tax and Accounting,” said Donald L. Korb, IRS Chief Counsel. “The approach Lew has taken to revitalize that very important part of our National Office has set the stage for his successor to take the organization to the next level. After leaving the Office of Chief Counsel, Mr. Fernandez will continue his tax career at PricewaterhouseCoopers in Washington, D.C.”
“George Blaine is an outstanding choice for this important assignment,” Korb added. “His many years of service to the Office of Chief Counsel and his extensive experience and strong technical knowledge of Income Tax and Accounting issues have prepared him well to take over this role.”
The Associate Chief Counsel, ITA, provides legal advice and support services regarding federal tax matters involving tax accounting and a wide variety of issues relating to corporate and individual income taxation. The Associate Chief Counsel, ITA, also serves as senior legal advisor and expert consultant on litigation and other legal matters as they pertain to tax accounting and individual income taxation issues and represents the Office of Chief Counsel on sensitive and controversial legal matters related to these areas.
Since November 2003, Blaine has served as Deputy Associate Chief Counsel, ITA. As one of two Deputies to the Associate Chief Counsel, Blaine supervises approximately 115 professionals responsible for the basic income tax rules in Subchapter A, inclusions, exclusions, most individual deductions and credits, recognition, timing and special methods of accounting.
From 2000 to 2003, Blaine served as the Deputy Assistant Chief Counsel, Administrative Provisions and Judicial Practice Division. Blaine served as Chief of two branches in ITA from 1995 through 2000. In 1999, he received the Office of Chief Counsel’s “Manager of the Year” award. From 1988 to 1994, he was the Special Counsel in the Tax Litigation (later Field Service) Division.
Blaine received an LL.M in Taxation from the George Washington University in 1987. He received his B.A. in 1971 and a J.D. in 1974 from Temple University.
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IR-2007-135, Aug. 1, 2007
WASHINGTON — To help people with tax planning, the Internal Revenue Service is publishing Summertime Tax Tips to provide useful and concise advice on topics that affect millions of taxpayers.
Many taxpayers don’t think about their taxes until the start of the filing season in January. That can be a mistake. Steps such as getting the proper receipts from charities, adjusting your withholding or pursuing a tax strategy to increase your deductions are most effective if they are done well before year’s end.
The IRS is publishing three tax tips per week. Topics range from how parents can get credit for sending their kids to day camp to using an online calculator to fine tune your federal withholdings. Tips published on Fridays focus on the tax concerns of small business owners.
Tips in August will cover a range of topics, including charitable contributions, back-to-school advice, the saver’s credit, selling your home and tax scams.
You can receive new tips via email as they are published by subscribing through the E-News Subscription page on this Web site. When you subscribe, you will receive a confirmation message by e-mail. You must respond to the e-mail in order to verify your subscription.
Related Items:

Summertime Tax Tips


E-News Subscription

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IR-2007-162, Sept. 26, 2007
WASHINGTON — The Equal Employment Opportunity Commission (EEOC) today recognized IRS Acting Commissioner Linda Stiff for the agency’s ongoing partnership with Lions World Services for the Blind and its efforts to employ persons with visual impairments.
Through the partnership, the IRS and Lions World Services for the Blind train blind and visually impaired candidates for positions within the IRS. Training includes the use of adaptive technologies and presentation of tax materials in alternative media.
“The IRS is committed to enhancing the spirit of diversity, inclusion and equal opportunity for all of its employees,” said Richard Morgante, Commissioner of the IRS Wage & Investment Division, who accepted the EEOC Freedom to Compete Award on behalf of Stiff.
Each year the EEOC presents the Freedom to Compete Award in recognition of employers who have established programs designed to increase access to employment.
"In today's competitive global economy, employers must cast a wide net to attract the most diverse range of talent available," said Naomi C. Earp, Chair of the Equal Employment Opportunity Commission.
"The Freedom to Compete Award showcases the most innovative employer programs to promote fair and open competition in the 21st century workplace without regard to race, color, gender, religion, national origin, age or disability,” Earp said. “We applaud the 2007 winners, whose practices serve as models for employers across the nation."
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IR-2007-161, Sept. 25, 2007
WASHINGTON — Taxpayers can now request an Employer Identification Number (EIN) through a Web-based system that instantly processes requests and generates identification numbers in real time, the Internal Revenue Service announced today.
"This new and improved online application will reduce the time it takes taxpayers to get an EIN," said Richard Morgante, Commissioner of the IRS Wage & Investment Division. "Essentially they can get one while they wait –– within minutes."
Here's how it works. A taxpayer accesses the Internet EIN system through IRS.gov and enters the required information. If the information passes the automatic validity checks, the IRS issues a permanent EIN to the taxpayer. If the information does not pass the validity checks, it is rejected. The taxpayer then has an opportunity to correct the information and resubmit the application.
The Internet EIN application is interactive and asks questions tailored to the type of entity the taxpayer is establishing. This is similar to popular tax processing software packages on the market.
The system provides "help" screens throughout the application process. This means taxpayers will no longer have to print the EIN instructions and separately search for answers while requesting an EIN.
When the EIN application process is complete, a taxpayer has the option to view, print and save his or her confirmation notice, as opposed to waiting for the IRS to mail it. Third parties authorized by the taxpayer can also be provided with the EIN, but the third party cannot view, print or save the confirmation notice. Instead, the confirmation notice is mailed to the taxpayer.
An EIN assigned through Internet submission is immediately recognized by IRS systems. Taxpayers can begin using the EIN immediately for most business purposes.
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IR-2007-160, Sept. 24, 2007
WASHINGTON — The Internal Revenue Service, on behalf of the U.S. Department of the Treasury, today announced the selection of AT&T as the network services provider for the Treasury Network (TNet) acquisition. This award was made under the Federal Acquisition Service's Networx Universal contract and meets requirements formerly described as the Treasury Communications Enterprise (TCE) program. The overall contract value is estimated at $270 million over the life of the contract.
In December 2006, Treasury elected to use the General Services Administration's Networx program to integrate its telecommunications requirements into a single Treasury-wide network infrastructure. Under the Networx program, Treasury will utilize a fully managed network service, coupled with service level agreements and performance incentives to deliver secure voice, data and video communications. "We are extremely pleased with GSA's professionalism and responsiveness in enabling us to rapidly award this task order on the Networx contract," said Michael Duffy, Treasury Chief Information Officer. "We got a top quality technical solution at prices that exceeded our expectations."
"Treasury is the first agency to have completed a fair opportunity decision on the Networx Universal contract and expect they will be the first agency to begin ordering service," said Karl Krumbholz, Director of Network Services Programs at the General Services Administration. "We are extremely pleased to have assisted Treasury in meeting their network service requirements and found them to have a very strong and highly professional technical and contracting team that was a pleasure to work with. We look forward to a positive and productive relationship with the Treasury TNet Program in the years ahead."
Links:

Department of the Treasury


IRS Procurement

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IR-2007-159, Sept. 17, 2007
 
WASHINGTON — The Internal Revenue Service unveiled a special new section today on IRS.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.
The new section of IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. . In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-in-compromise.
The IRS urges struggling homeowners to consider their options carefully before giving up their homes through foreclosure.
Under the tax law, if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income.   But a special rule allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.
The IRS cautions that under the law, relief may be limited or unavailable in some situations where, for example, part or all of a home was ever used for business or rented out.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender.   By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property’s fair market value, it may not necessarily reflect its true value in some cases.
The IRS urges borrowers to check the Form 1099-C carefully. They should notify the lender immediately if any of the information shown on their form is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home (Box 7).
The IRS also reminds lenders of their obligation to provide accurate information on the Form 1099-C.   By law, the lender must send a copy of this form to the IRS. IRS follow-up contacts with taxpayers involved in foreclosure are based largely on the information reported on this form, and whether it conflicts with information provided by the taxpayer on their federal income tax return.
The IRS normally initiates these follow-up contacts by sending the borrower a notice.   The tax agency urges borrowers with questions to call the phone number shown on the notice.  The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency.
Related Item:Questions and Answers on Home Foreclosure and Debt Cancellation
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IR-2007-158, Sept. 11, 2007
 
WASHINGTON — With the new school year now under way, the Internal Revenue Service today reminded teachers, parents and students that saving receipts and keeping good records can help them take advantage of various education-related deductions and credits on their 2007 federal income tax return.
“The start of the school year is a good time to remind parents, students and teachers to save all receipts related to tax-advantaged education expenses,” said IRS Acting Commissioner Linda Stiff. “Good recordkeeping makes sense because it can help avoid missing a deduction or credit at tax time.”
Deductions reduce the income on which tax is figured. Credits reduce the overall tax. Though both can lower a person’s year-end tax bill or increase their refund, credits normally result in greater tax savings.
The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school.
Worth up to $250, the educator expense deduction is available, whether or not the educator itemizes their deductions on Schedule A. In tax-year 2005, teachers and educators deducted just over $893 million of these out-of-pocket classroom expenses. Under current law, this deduction is scheduled to expire at the end of this year.
Three key tax breaks — the tuition and fees deduction, the Hope credit and the lifetime learning credit — help parents and students pay for the cost of post-secondary education. All three are available, regardless of whether an eligible taxpayer itemizes their deductions. Under current law, the tuition and fees deduction is scheduled to expire at the end of this year, but the two credits remain in effect. In tax-year 2005, taxpayers claimed tuition and fees deductions totaling nearly $11 billion and education credits of almost $6.2 billion.
Normally, a taxpayer can claim tuition and required enrollment fees paid for their own and their dependent’s college education. A taxpayer cannot take both an education credit and the tuition and fees deduction for the same student in the same year. Income limits and other special rules apply to each of these provisions. Education credits are claimed on Form 8863PDF, and the tuition and fees deduction for 2007 will be claimed on new Form 8917.
IRS Publication 970,PDF Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication also describes other education-related tax benefits, including qualified tuition programs (also known as 529 plans), the student loan interest deduction, Coverdell education savings accounts and the education savings bond program.
Publication 970 can be obtained on this Web site or, without charge, by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).
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IR-2007-157, Sept. 10, 2007
 
WASHINGTON — The Treasury Department and the Internal Revenue Service (IRS) announced today that taxpayers will have until Dec. 31, 2008, to bring documents into compliance with the final nonqualified deferred compensation regulations under section 409A of the Internal Revenue Code.  
In April, Treasury and IRS issued final 409A regulations, which provided guidance regarding the requirements for deferral elections and payment timing under section 409A. Affected plans and arrangements were required to comply with the final regulations by Dec. 31, 2007. IRS Notice 2007-78 extends the document compliance deadline for one year and provides additional limited transition relief, but does not extend the Jan. 1, 2008, effective date of the final regulations.   
Notice 2007-78 also announces that Treasury and the IRS anticipate issuing guidance containing a limited voluntary compliance program that will permit corrections of certain unintentional operational violations of section 409A.
The final regulations were in response to legislation enacted by Congress in 2004 to address concerns involving reported abuses of nonqualified deferred compensation plans.
Related Item:  Notice 2007-78PDF
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IR-2007-156, Sept. 6, 2007
 
WASHINGTON — The Internal Revenue Service has acknowledged the certification by General Motors Corp. that two of its Model Year 2008 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles.
The credit amount for the certified 2008 model year hybrid vehicles are:
Chevrolet Malibu hybrid — $1,300
Saturn Aura hybrid — $1,300
Original purchasers of these vehicles may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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IR-2007-155, Sept. 5, 2007
Washington — Employers should be aware of two changes to the credit for the portion of employer Social Security paid with respect to employee cash tips known as the 45B Credit. These changes are the result of recently enacted legislation.
The law now requires employers to determine their credit using the minimum wage in effect on January 1, 2007 even if the minimum wage increases. Therefore, in 2007, when the federal minimum wage did increase to $5.85 from $5.15 per hour, employers will still use the $5.15 rate to determine their credit to compute their allowable credit for tips reported for services performed after Dec. 31, 2006.
 
The 45B Credit allows employers in the food and beverage industry to claim a credit for the Social Security and Medicare taxes the employers pay on their employees' tip income.  The credit equals the Social Security and Medicare taxes the employer paid on the tips received by the employees. However, no credit is given for tips used to meet the federal minimum wage rate.
 
Employers claiming the credit must reduce their Social Security and Medicare tax deduction accordingly. Eligible employers should use Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, to claim the credit. 
 
The new law also allows the employer to use the 45B credit to offset alternative minimum tax. Previously, the credit could only be used against the regular tax. This offset is available for 45B credits for taxable years beginning after Dec. 31, 2006.
Related Item:  Credit for Portion of Employer Social Security Paid with Respect to Employee Cash Tips (IRC 45 B Credit)
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IR-2007-154, Sept. 4, 2007
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning Oct. 1, 2007. The interest rates are as follows: 

8 percent for overpayments (7 percent in the case of a corporation);


8 percent for underpayments;


10 percent for large corporate underpayments; and


5.5 percent for the portion of a corporate overpayment exceeding $10,000.

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 0.5 of a percentage points.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during July 2007.
Revenue Ruling 2007-56PDF will appear in Internal Revenue Bulletin No. 2007-39, dated Sept. 24, 2007.
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IR-2007-181, Oct. 31, 2007
WASHINGTON — The Internal Revenue Service has acknowledged the certification by American Honda Motor Company, Inc., that its Honda Civic GX Model Year 2008 vehicle meets the requirements of the Qualified Alternative Fuel Motor Vehicle Credit. 
The Qualified Alternative Fuel Motor Vehicle Credit was enacted by the Energy Policy Act of 2005. To qualify these vehicles can operate only on alternative fuels or mixed fuels (a combination of alternative fuel and petroleum based fuel). The 2008 Honda Civic GX is an alternative fueled vehicle that operates on compressed natural gas. This vehicle should not be confused with hybrid vehicles.
The Qualified Alternative Fuel Motor Vehicle Credit amount for the Honda Civic GX Model Year 2008 is $4,000.
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IR-2007-180, Oct. 31, 2007
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 into critical tax administration areas.
Vacancies exist in the following customer segments:
Employee Plans — two vacancies
Exempt Organizations — two vacancies
Tax Exempt Bonds — one vacancy
Indian Tribal Governments — one vacancy
Federal, State and Local Governments — two vacancies.
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.
Members are appointed by the Secretary of the Treasury and serve two-year terms, beginning in June 2008. Applications can be made by letter or by completing an application form, available on the IRS Web site. In either case, applications should reflect the proposed member’s qualifications. A notice published in the Federal Register, dated Oct. 31, 2007, contains more details about the ACT and the application process.
Applications will be accepted through Nov. 30, 2007.
Applications should be sent to Steven Pyrek, 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).
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IR-2007-179, Oct. 31, 2007
WASHINGTON — The IRS’s November 6, 2007 Tax Talk Today Webcast, “What’s Hot in Employment Taxes:  Independent Contractor or Employee?”, will focus exclusively on worker classification issues. The program starts at 2 p.m. ET.
A critical issue for all businesses is properly classifying workers as employees or independent contractors.
During the live, one-hour Webcast, a panel of experts will discuss legislative and judicial background and recent changes regarding worker classification, why the worker classification issue is important and what the IRS is doing about it, and what workers who feel they have been misclassified can do to correct their situation.
Tax professionals and business persons who wish to learn about the subject of worker classification are encouraged to watch and submit questions. The live Webcast enables viewers to ask questions via e-mail to the panelists and receive on-air answers.
Panelists will be Mary C. Gorman, Attorney, IRS Counsel; Richard Schampers, Senior Program Analyst, Employment Tax Policy, IRS; Joseph Tiberio, Program Manager, Employment Tax Policy, IRS; Rebecca Wilson, Attorney, IRS Counsel; Michael P. O'Toole, Esq., Senior Director, Publications and Government Relations, American Payroll Association; and F. Gordon Spoor, CPA/PFS, Spoor & Associates, P.A.
To access the Webcast at no charge, viewers can register online at www.TaxTalkToday.tv. Tax professionals in need of continuing education credits (CECs) are eligible to receive one CEC by viewing the November Webcast. 
Archived shows are available on the Web site.
Mark your calendars for the Tuesday, December 11, 2007 and Tuesday, January 8, 2008 shows, which focus on “Getting Ready for Filing Season 2008” for individuals and businesses respectively.
October’s show – “The ABC’s of OPR” – is now available to view via archive.
IR-2007-178, Oct. 29, 2007
WASHINGTON — The Internal Revenue Service is extending tax return filing and payment deadlines for victims of the severe Southern California wildfires.
Taxpayers in the Presidential Disaster Area –– consisting of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura counties –– will have until Jan. 31, 2008, to file returns, pay taxes and perform other time-sensitive acts.
The extended deadline applies to items due on or after Oct. 21, 2007, when the fires began, and on or before Jan. 31, 2008. This includes the federal withholding tax return, Form 941, normally due Oct. 31, and the estimated tax payment for the fourth quarter, normally due Jan. 15.
In addition, the IRS is waiving the failure to deposit penalty for employment and excise deposits due on or after Oct. 21, 2007, and on or before Nov. 5, 2007, as long as the deposits are made by Nov. 5, 2007.
If any affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply during the period from Oct. 21, 2007, to Jan. 31, 2008, or Oct. 21, 2007, through Nov. 5, 2007, for failure to deposit penalties. No penalty or interest will be abated for taxpayers that do not have a filing, payment or deposit due date, including an extended filing or payment due date, during this period.
“As California taxpayers start the recovery process, the last thing they should worry about is meeting a tax deadline,” said IRS Acting Commissioner Linda Stiff. “The IRS offers many resources for disaster victims online at IRS.gov, over the phone and in person.”
IRS computer systems automatically identify taxpayers located in the covered disaster area and apply automatic filing and payment relief. Taxpayers within the covered disaster area do not need to identify themselves as affected by the wildfires by writing on their returns or using the disaster designation in their tax software.
Affected taxpayers who reside or have a business located outside the covered disaster area are required to call the IRS disaster hotline at 1-866-562-5227 to identify themselves as eligible for disaster relief.
Casualty Losses
Affected taxpayers in a presidentially declared disaster area also have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. For details on figuring a casualty loss deduction, see IRS Publication 547PDF, “Casualties, Disasters and Thefts.”
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “California Wildfires” at the top of the form so that the IRS can expedite the processing of the refund.
Related Information
See the local news release for more specific disaster relief provisions.
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IR-2007-177, Oct. 26, 2007
WASHINGTON — Senior law professors from The George Washington University Law School will join with officials from the Treasury Department and IRS as well as officials from the tax authorities of Japan, Korea, Mexico and the United Kingdom to discuss significant tax compliance and treaty issues at the 20th Annual Institute on Current Issues in International Taxation.
The two-day program will be held on Dec. 13 and 14, 2007, at the Grand Hyatt Washington Hotel located at 1000 H Street, N.W., Washington, D.C. Those interested in attending can find out more about the topics, speakers and registration from the GWU Law School.
The program is designed primarily for corporate tax executives responsible for international tax matters, tax counsels of domestic and foreign multinational corporations, lawyers working in the international tax area and accounting firm partners and managers working in the international tax area.
The conference has been arranged to provide opportunities for lively exchanges between members on the panels who represent government, academia and the private sector and to offer question and answer periods with members of the audience. It will include the perennially popular ‘ask the IRS’ session where IRS officials respond to questions from the audience.
The conference is further described in Announcement 2007-100PDF.
 
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IR-2007-176, Oct. 26, 2007
WASHINGTON — The Internal Revenue Service today announced that it is offering one-day workshops for small and mid-sized section 501(c)(3) exempt organizations during fall and winter 2007 and spring 2008.
The workshop is designed for administrators, volunteers or tax practitioners who are responsible for an organization's tax compliance. Each workshop is limited to 200 attendees and will be filled on a first-come, first-served basis. The non-refundable cost is $45 and includes a text and other IRS forms and publications. Pre-registration is required.
The dates and locations for the upcoming, one-day workshops are as follows:
Salt Lake City, Utah — Nov. 14 and 15, 2007 
Columbia, S. C. — Dec. 4, 5 and 6, 2007 
Sacramento, Calif. — Dec. 18, 19 and 20, 2007 
Arlington, Va. — April 1, 2 and 3, 2008 
Austin, Texas — May 6, 7 and 8, 2008 
Columbus, Ohio — May 20, 21 and 22, 2008 
The workshops will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations. Each workshop will cover the benefits and responsibilities of tax-exempt status and actions that could jeopardize that status; unrelated business income and gaming; employment issues; an explanation of Form 990 and the new "e-Postcard" filing requirement; and required disclosures. Workshop leaders will also discuss how the Pension Protection Act of 2006 affects exempt organizations.
The workshop does not cover how to apply for tax-exempt status or compliance requirements for non-501(c)(3) organizations.
For more information or to register, go to the Charities & Non-Profits page at  /eo and click on the “Calendar of Events” link. Information and registration is also available by calling Events by Design, the IRS’ registration services provider, at 1-800-521-3980.
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IR-2007-175, Oct. 25, 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of qualified General Motors Corp. hybrid vehicles may continue to claim the Alternative Motor Vehicle Credit.
GMC sold 123 qualifying vehicles to retail dealers in the quarter ending Sept 30, 2007. This brings the cumulative number of qualified GM hybrid vehicles sold to 9,577.
The credit amount and make and model of qualified vehicles sold are:

Chevrolet Silverado Hybrid 2WD, Model Years 2006 and 2007        $250


Chevrolet Silverado Hybrid 4WD, Model Years 2006 and 2007        $650


GMC Sierra Hybrid 2WD, Model Years 2006 and 2007                       $250


GMC Sierra Hybrid 4WD, Model Years 2006 and 2007                       $650


Saturn Vue Green Line, Model Year 2007                                              $650


Saturn Aura Hybrid, Model Year 2007                                                  $1,300

Purchasers of GMC’s qualified vehicles may continue to rely on the certifications concerning the vehicles’ qualification for the credit.
Original owners may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
Related Item:  Hybrid Cars and Alternative Fuel Vehicles
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IR-2007-174, Oct., 25, 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of qualified Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit.
The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Ford sold 5,196 qualifying vehicles to retail dealers during the quarter ending Sept. 30, 2007. This brings the cumulative number of qualified Ford hybrid vehicles sold to 38,743.
The credit amount and make and model of the certified vehicles sold are:

Ford Escape 2WD Hybrid, Model Year 2008                          $3,000


Ford Escape 2WD, Model Years 2005, 2006 and 2007       $2,600


Ford Escape 4WD Hybrid, Model Year 2008                          $2,200       


Ford Escape 4WD, Model Years 2005, 2006 and 2007       $1,950


Mercury Mariner 4WD Hybrid, Model Year 2008                     $2,200       


Mercury Mariner 4WD, Model Years 2006 and 2007             $1,950


Mercury Mariner 2WD Hybrid, Model Year 2008                     $3,000

Purchasers of Ford’s qualified vehicles may continue to rely on the certifications concerning the vehicles’ qualification for the credit.
Original owners may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
Related Item:  Hybrid Cars and Alternative Fuel Vehicles
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IR-2007-173, Oct. 19, 2007
 
WASHINGTON — Starting next year, casinos and other sponsors of poker tournaments will be required to report most winnings to winners and the Internal Revenue Service, according to the IRS.
The new requirement, which goes into effect on March 4, 2008, was contained in guidance released Sept. 4 by the Treasury Department and the IRS. The guidance is designed to clear up confusion about the tax reporting rules that apply to poker tournaments. In recent years, some casinos and players have been confused over whether poker tournament sponsors who hold the money for participants in a poker tournament are required to report the winnings to the IRS and withhold tax on the winnings.
For tournaments completed during 2007 and before March 4, 2008, casinos and other sponsors of poker tournaments will not be required to report the winnings to the IRS or withhold tax on the winnings. But beginning March 4, 2008, the IRS will require all tournament sponsors to report tournament winnings of more than $5,000, usually on an IRS Form W-2G.
Tournament sponsors who comply with this reporting requirement will not need to withhold federal income tax at the end of a tournament. If any tournament sponsor does not report the tournament winnings, the IRS will enforce the reporting requirement and also require the sponsor to pay any tax that should have been withheld from the winner if the withholding requirement had been asserted. The withholding amount is normally 25 percent of any amounts that should have been reported.
So that tournament sponsors can comply with this requirement, tournament winners must provide their taxpayer identification number, usually a social security number, to the tournament sponsor. If a winner fails to provide this identification number, the tournament sponsor must withhold federal income tax at the rate of 28 percent.
The IRS reminds tournament winners that, by law, they must report all their winnings on their federal income tax returns. This rule applies regardless of the amount and regardless of whether the winner receives a Form W-2G or any other reporting form. This is true for 2007 and earlier years, and will continue to be the case after the new reporting requirement goes into effect.
Related Item: Revenue Procedure 2007-57 in Internal Revenue Bulletin 2007-36.PDF
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IR-2007-170, Oct. 17, 2007
WASHINGTON – The Internal Revenue Service and the Treasury Department cautioned taxpayers about participating in certain trust arrangements being sold to professional corporations and other small businesses as welfare benefit funds and identified some of the arrangements as listed transactions.
There are many legitimate welfare benefit funds that provide benefits, such as health insurance and life insurance, to employees and retirees. However, the arrangements the IRS is cautioning employers about primarily benefit the owners or other key employees of businesses, sometimes in the form of distributions of cash, loans, or life insurance policies.
“The guidance targets specific abuses involving a limited group of arrangements that claim to be welfare benefit funds,” said Donald L. Korb, Chief Counsel for the IRS. “Today’s action sends a strong signal that these abusive schemes must stop.”
The guidance explains that, depending on the facts and circumstances, a particular arrangement could be providing dividends to the owners of a business that are includible in the owners’ income and not deductible by the business. The arrangement could also be a plan of nonqualified deferred compensation. Even some arrangements providing welfare benefits may have tax consequences different than what is claimed.        
In Notice 2007-83, the IRS identified certain trust arrangements involving cash value life insurance policies, and substantially similar arrangements, as listed transactions.  If a transaction is designated as a listed transaction, affected persons have disclosure obligations and may be subject to applicable penalties.  Taxpayers who otherwise would be required to file a disclosure statement prior to Jan. 15, 2008, as a result of Notice 2007-83 have until Jan. 15, 2008, to make the disclosure.
In Notice 2007-84, the IRS cautioned taxpayers that the tax treatment of trusts that, in form, provide post-retirement medical and life insurance benefits to owners and other key employees may vary from the treatment claimed.  The IRS may issue further guidance to address these arrangements, and taxpayers should not assume that the guidance will be applied prospectively only.
Today, the IRS also issued related Revenue Ruling 2007-65 to address situations where an arrangement is considered a welfare benefit fund but the employer’s deduction for its contributions to the fund is denied in whole or part for premiums paid by the trust on cash value life insurance policies.
Related Items:

Revenue Ruling 2007-65PDF


Notice 2007-83PDF


Notice 2007-84PDF

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IR-2007-169, Oct. 12, 2007
WASHINGTON — The Internal Revenue Service announced today that the October Tax Talk Today program will be “The ABCs of OPR.” The live hour-long Webcast will focus on the IRS’s Office of Professional Responsibility (OPR), which is responsible for setting, communicating and enforcing standards of competence, integrity and conduct among tax professionals who practice before the IRS.
The Webcast is scheduled for Tuesday, October 16, at 2 p.m. ET. Discussion topics on the Webcast will include an overview of OPR, Circular 230 and monetary penalties.
Panelists will be Michael Chesman, Director, IRS Office of Professional Responsibility; Deborah Butler, IRS, Associate Chief Counsel, Procedure and Administration; Mark Kaizan, IRS, Associate Chief Counsel, General Legal Services; and Pamela Olson, a partner at Skadden, Arps, Slate, Meagher & Flom, and former Assistant Secretary for Tax Policy at the U.S. Department of the Treasury.
Tax Talk Today is a Webcast aimed at educating tax and payroll professionals on the most current and complex tax issues. Tax professionals who wish to learn about OPR are encouraged to watch and submit questions.
To access the Webcast at no charge, viewers can register online at www.TaxTalkToday.tv. Tax professionals in need of continuing education credits (CECs) are eligible to receive one CEC by viewing the October 16 Webcast.
Archived shows are available on www.TaxTalkToday.tv
NOTE: The next show will be November 6 on “What’s Hot in Employment Taxes: Independent Contractor or Employee?”
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IR-2007-168, Oct. 12, 2007
WASHINGTON — The Internal Revenue Service has acknowledged the certification by American Honda Motor Company, Inc. that its Model Year 2008 Honda Civic Hybrid CVT meets the requirements of the Alternative Motor Vehicle Credit as a qualified hybrid motor vehicle.
The credit amount for the 2008 Honda Civic Hybrid CVT is $2,100.
Original owners may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
As of June 30, 2007, Honda sold a total of 58,872 qualifying hybrid vehicles.
Related Items:
Hybrid Cars and Alternative Motor Vehicles
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