etrent17/irs-articles huggingface dataset:
Updated July 12, 2010, to add flyer.Updated June 7, 2010, to clarify language related to the new law.Updated June 2, 2010 — Revenue Procedure 2010-24PDF modifies the inflation adjusted amounts in Revenue Procedure 2009-50 that apply to taxpayers who elect to expense certain property under § 179 to reflect changes enacted as part of the HIRE Act. 
IR-2010-33, March 18, 2010
WASHINGTON — Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law today.
Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.
In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.
“These tax breaks offer a much-needed boost to employers willing to expand their payrolls, and businesses and nonprofits should keep these benefits in mind as they plan for the year ahead,” said IRS Commissioner Doug Shulman.
The two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause. Family members and other relatives do not qualify.
In addition, the new law requires that the employer get a statement from each eligible new hire certifying that he or she was unemployed during the 60 days before beginning work or, alternatively, worked no more than 40 hours for anyone during the 60-day period. The IRS is currently developing a form employees can use to make the required statement.
Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees. Household employers cannot claim this new tax benefit.
Employers claim the payroll tax benefit on the federal employment tax return they file, usually quarterly, with the IRS. Eligible employers will be able to claim the new tax incentive on their revised employment tax form for the second quarter of 2010. Revised forms and further details on these two new tax provisions will be posted on IRS.gov during the next few weeks.
Related Items:
HIRE Act: Questions and Answers for Employers
FlyerPDF
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IR-2010-31, March 12, 2010
WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program tax issues for resolution involving a controversy, a dispute or an unnecessary burden on business taxpayers.
Though submissions can be made at anytime for consideration in the IIR program, submitted issues received by March 31, 2010, will be considered for acceptance in April and, if accepted, included on the Treasury/IRS Priority Guidance List.
The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers.
Recent submissions accepted into the IIR program include:
Network assets in the telecommunication industry.
Asset class for wireless telecommunication assets.
Vendor mark-down allowances under the retail inventory method.
Guidance issued as a result of the IIR program includes:
Technical termination of publicly traded partnerships (Industry Director Directive - Publicly-Traded Partnerships that Experience a Technical Termination)
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. (Revenue Procedure 2008-23PDF)
For each issue selected, a multi-functional team consisting of IRS, Chief Counsel, and Treasury personnel will be assembled. The team will gather and analyze the relevant facts from industry groups and taxpayers and, wherever possible, recommend guidance. 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. For each issue selected, a multi-functional team of IRS, Chief Counsel and Treasury personnel will be assembled. The teams will gather and analyze the relevant facts from industry groups and taxpayers for each issue and recommend guidance.
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 March 31, 2010.
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IR-2010-30, March 11, 2010
WASHINGTON — The Internal Revenue Service today announced the release of the 2009 IRS Data Book, an annual snapshot of agency activities for the fiscal year.
The report describes activities conducted by the IRS from Oct. 1, 2008, to Sept. 30, 2009, and includes information about returns filed, tax collections, enforcement and taxpayer assistance, as well as the IRS budget and workforce.
During fiscal year 2009, the IRS collected more than $1.9 trillion in taxes, net of refunds, and processed more than 236 million returns. Nearly 110 million returns, including 66 percent of individual income tax returns, were filed electronically. Nearly 124 million individual income tax return filers received a tax refund and/or economic stimulus payment during the fiscal year. Individual income tax refunds totaled $321.3 billion, and economic stimulus payments totaled over $11.5 billion. In fiscal year 2009, IRS spent an average of 50 cents to collect each $100 of tax revenue.
IRS examined more than 1.4 million individual income tax returns and about 28,000 returns filed by corporations, excluding S corporations. IRS personnel answered nearly 68 million toll-free calls from taxpayers during the fiscal year, and the IRS Web site received more than 296 million visits.
An electronic version of the 2009 IRS Data Book can be found on the Tax Stats.
Printed copies of the IRS Data Book, Publication 55B, will be available by mid-April 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. You may also order by calling (202) 512-1800 or faxing a request to (202) 512-2250.
 
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IR-2010-28, March 9, 2010
Washington The Internal Revenue Service today issued guidancePDF designating the earthquake that occurred in Chile in February 2010 as a qualified disaster for federal tax purposes. The guidance allows individuals who receive qualified disaster relief payments from any person to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist employee-victims in areas affected by this earthquake without affecting their tax-exempt status.
Qualified disaster relief payments include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be included in the individual recipient’s gross income.
Qualified disasters include Presidentially declared disasters and any other event that the Secretary of the Treasury determines to be of a catastrophic nature. The IRS has determined that the earthquake that occurred in Chile in February 2010 is an event of a catastrophic nature for purposes of the federal tax law.
The IRS will presume that disaster relief that a private foundation provides to employee-victims and their family members in areas affected by the earthquake in Chile are consistent with the foundation's charitable purposes.
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IR-2010-27, March 4, 2010
WASHINGTON — Massachusetts Tax Attorney Kevin Kilduff was barred from practicing before the Internal Revenue Service for 48 months for failing to file one federal tax return and for filing another five returns late.
“Professionals who demonstrate a lack of respect for our tax system by failing to meet their own tax filing obligations should not expect to retain the privilege to practice before the IRS,” said Karen L. Hawkins, Director of the IRS Office of Professional Responsibility (OPR).
The OPR had originally sought the 48-month suspension, alleging Kilduff’s conduct was willful and disreputable. OPR enforces standards of conduct under Treasury Circular 230, which governs enrolled agents, attorneys and certified public accountants. Kilduff formerly worked for the IRS Office of Chief Counsel.
The Administrative Law Judge (ALJ) subsequently set the penalty at a 24-month suspension. Kilduff appealed the ALJ decision to the Secretary of the Treasury’s Appellate Authority, which in fact ultimately imposed the harsher 48-month suspension.
Kilduff’s suspension is for a minimum of 48 months. OPR has sole discretion regarding his reinstatement to practice before the IRS. At the very least, Kilduff must file all federal returns and pay all taxes he is responsible for, or enter an acceptable installment agreement or offer in compromise.
The complete decisions of the ALJ and the Appellate Authority are available on the OPR page on this web site.
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IR-2010-26, March 2, 2010
WASHINGTON — The Internal Revenue Service and the Securities and Exchange Commission announced that the two agencies agreed to work more closely to monitor and regulate the municipal bond market and industry.
IRS Commissioner Doug Shulman and SEC Chairman Mary Schapiro today signed a Memorandum of Understanding designed to improve compliance with IRS and SEC rules and regulations related to municipal securities. The muni bond market currently totals about $2.8 trillion in outstanding securities and continues to grow in complexity and size.
“This memorandum reflects the commitment both agencies have in using all means possible to ensure the municipal bond market operates in accordance with all the laws that govern it,” Shulman said.
“Through cooperative relationships like this, we are better positioned to protect investors and ensure they are getting the information they need when investing in municipal securities," Schapiro said.
The IRS and SEC will work cooperatively to identify issues and trends related to tax-exempt bonds in the municipal securities industry and to develop strategies to enhance performance of their respective regulatory responsibilities. To support this effort, the two agencies will work through a standing Tax Exempt Bond/Municipal Securities Committee to discuss policy, procedures and compliance issues.
The IRS and SEC will also share information as appropriate regarding market risks, practices and events related to municipal securities, among other things. In addition, the two agencies will collaborate on educational and other types of outreach efforts.
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IR-2010-25, March 2, 2010
WASHINGTON — The Internal Revenue Service has made an administrative determination to accept the position that medical residents are excepted from FICA taxes based on the student exception for tax periods ending before April 1, 2005, when new IRS regulationsPDF went into effect.
The IRS will, within 90 days, begin contacting hospitals, universities and medical residents who filed FICA (Social Security and Medicare tax) refund claims for these periods with more information and procedures. Employers and individuals with pending claims do not need to take any action at this time.
For more information, call 1-800-919-1703 or visit /charities and click on Medical Resident FICA Refund Claims. Taxpayers with currently pending suits should contact the Department of Justice attorney assigned to the case.
Related Item: Questions and Answers
IR-2010-54, April 29, 2010
WASHINGTON — The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee (IRPAC), which provides recommendations to IRS leadership on a wide range of information reporting and administration issues.
“Information reporting is a key component of sound tax administration and the input and perspectives from IRPAC help improve the work of the IRS,” said IRS Commissioner Doug Shulman.
IRPAC presents an annual report to the IRS commissioner at a public meeting in the fall.
IRPAC consists of up to 35 members who are appointed to three-year terms by the IRS Commissioner. About one third of the membership terms expire each year. Nominations are currently being accepted for up to nine appointments which will begin January 2011.
The deadline for submitting applications is May 28, 2010. IRPAC members are drawn from diverse backgrounds. Members represent the taxpaying public, tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, insurance companies, foreign financial institutions and the payroll community.
Anyone interested in being a member of IRPAC may nominate themselves or be nominated by a qualified person. All nominees must complete an application.
More information, including more on the application process, is available on the Tax Professional’s page of this website.
Questions about the nomination process can be sent to the following e-mail address: *public_liaison@irs.gov.
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IR-2010-53, April 27, 2010
WASHINGTON — As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee's children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010.
The Internal Revenue Service announced today that these changes immediately allow employers with cafeteria plans –– plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits –– to permit employees to begin making pre-tax contributions to pay for this expanded benefit.
IRS Notice 2010-38PDF explains these changes and provides further guidance to employers, employees, health insurers and other interested taxpayers.
"These changes give employers a unique opportunity to offer a worthwhile benefit to their employees," IRS Commissioner Doug Shulman said. "We want to make it as easy as possible for employers to quickly implement this change and extend health coverage on a tax-favored basis to older children of their employees."
This expanded health care tax benefit applies to various workplace and retiree health plans. It also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return.
Employees who have children who will not have reached age 27 by the end of the year are eligible for the new tax benefit from March 30, 2010, forward, if the children are already covered under the employer's plan or are added to the employer's plan at any time. For this purpose, a child includes a son, daughter, stepchild, adopted child or eligible foster child. This new age 27 standard replaces the lower age limits that applied under prior tax law, as well as the requirement that a child generally qualify as a dependent for tax purposes.
The notice says that employers with cafeteria plans may permit employees to immediately make pre-tax salary reduction contributions to provide coverage for children under age 27, even if the cafeteria plan has not yet been amended to cover these individuals. Plan sponsors then have until the end of 2010 to amend their cafeteria plan language to incorporate this change.
In addition to changing the tax rules as described above, the Affordable Care Act also requires plans that provide dependent coverage of children to continue to make the coverage available for an adult child until the child turns age 26. The extended coverage must be provided not later than plan years beginning on or after Sept. 23, 2010. The favorable tax treatment described in the notice applies to that extended coverage.
Information on other health care provisions can be found on this website, IRS.gov.
IR-2010-52, April 26, 2010
WASHINGTON — Workers who lose their jobs during April and May may qualify for a 65-percent subsidy on their COBRA health insurance premiums, according to the Internal Revenue Service. The American Recovery and Reinvestment Act established this subsidy to help workers who lost their jobs as a result of the recession maintain their employer sponsored health insurance.
The Continuing Extension Act of 2010, enacted April 15, reinstated the COBRA subsidy, which had expired on March 31. As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008 and May 31, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. In some cases, workers who had their hours reduced and later lose their jobs may also be eligible for the subsidy.
Employers must provide COBRA coverage to eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns: Form 941PDF, Employers QUARTERLY Federal Tax Return, Form 944PDF, Employer’s ANNUAL Federal Tax Return, or Form 943PDF, Employer’s Annual Federal Tax Return for Agricultural Employees. Employers must maintain supporting documentation for the claimed credit.
There is much more information about the COBRA subsidy, including questions and answers for employers, and for employees or former employees, on the COBRA pages of IRS.gov.
Some people who are eligible for the COBRA subsidy also qualify for the health coverage tax credit (HCTC) and may want to choose the more generous HCTC benefit, instead. The HCTC pays 80 percent of health insurance premiums for those who qualify. See more at HCTC: Eligibility Requirements and How to Receive the HCTC.
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IR-2010-51, April 20, 2010
WASHINGTON — The Internal Revenue Service has awarded nearly $10 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2010 grant cycle (Jan. 1 to Dec. 31, 2010).
LITCs are organizations that represent low-income taxpayers in federal tax controversies with the IRS for free or for a nominal charge, provide tax education and outreach for taxpayers who speak English as a second language, or both.
Through the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations. For the 2010 grant cycle, the IRS awarded LITC grants to 160 organizations. LITCs and their employees and volunteers operate independently of the federal government.
The LITC grant program is a federal program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Nina E. Olson.
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. IRS Publication 4134, Low Income Taxpayer Clinic List, provides information on LITCs in each geographic area and the languages each clinic serves in addition to English. It is available at www.irs.gov or at local IRS offices.
Organizations Receiving LITC Grants for the 2010 CyclePDF
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IR-2010-50, April 20, 2010
WASHINGTON — The Internal Revenue Service today announced the selection of seven new members for the Information Reporting Program Advisory Committee (IRPAC).
“Members of IRPAC provide key perspectives and recommendations that assist the IRS in making the right decisions about information reporting for taxpayers,” said IRS Commissioner Doug Shulman.
The appointees will join 23 returning members who are in the second year or third year of a three-year term. The following people have been appointed to serve on the committee:
Candace B. Ewell, Tax Director at PricewaterhouseCoopers LLP in Washington, DC.
C. Leonard Jacobs, Manager, Tax Agency Relations at Intuit Inc. in Reno, Nev.
Anne C. Lennan, Vice President of Hunt Management Systems in Chevy Chase, Md.
Donald C. Morris, Counsel at Mayer Brown LLP in Chicago.
Marjorie A. Penrod, Managing Director in the Corporate Tax Department at JP Morgan Chase in New York.
Kathryn S. Tracy, partner at Kat & Bud Enterprises, LLC in Buckeye, Ariz.
Arthur B. Wolk, Senior Vice President at SunGard Wall Street Concepts in New York.
The IRPAC was established in 1991 and focuses on information reporting issues. The committee’s purpose is to provide an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.
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IR-2010-48, April 19, 2010
WASHINGTON ― The Internal Revenue Service this week began mailing postcards to more than four million small businesses and tax-exempt organizations to make them aware of the benefits of the recently-enacted small business health care tax credit.
Included in the Patient Protection and Affordable Care Act approved by Congress last month and signed into law by President Obama, the credit is one of the first health care reform provisions to go into effect. The credit, which takes effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
“We want to make sure small employers across the nation realize that — effective this tax year — they may be eligible for a valuable new tax credit. Our postcard mailing — which is targeted at small employers — is intended to get the attention of small employers and encourage them to find out more," IRS Commissioner Doug Shulman said. “We urge every small employer to take advantage of this credit if they qualify.”
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low- and moderate-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller employers — those with 10 or fewer full-time equivalent (FTE) employees — paying annual average wages of $25,000 or less. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals. The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
View the postcard.PDF
View state-by-state informationPDF on distribution of the postcard.
Also see more information about the credit, including a step-by-step guidePDF and answers to frequently asked questions.
IR-2010-47, April 13, 2010
WASHINGTON — Members of the military and certain civilians providing earthquake relief in Haiti have additional time to file their 2009 returns and pay any taxes due, the Internal Revenue Service announced today.
Deadlines for taking care of a variety of federal tax matters are automatically extended for persons serving in a combat zone or a contingency operation. Operation Unified Response is a contingency operation, thus giving designated persons providing earthquake relief in Haiti the same extensions that are available to military and support personnel serving in Iraq, Afghanistan, and other combat zone localities.
This relief applies to members of the military, Red Cross personnel, accredited correspondents, and civilian support personnel acting under the direction of the Armed Forces. In most cases, the relief also applies to spouses.
Normally, eligible taxpayers have at least 180 days after they leave the combat zone or contingency operation area to take care of various tax-related matters.  For Operation Unified Response and the Haiti earthquake, these tax-related matters include:
Filing a 2009 federal income tax return,
Paying tax due for 2009,
Making a 2009 IRA contribution, and
Making a quarterly estimated tax payment for 2010
The exact deadline depends on when an eligible taxpayer went to Haiti, when he or she left Haiti, and the tax matter involved. These extensions are penalty-free and interest-free.  No form needs to be filed to get this relief.
Questions and answers on combat zone extensions can be found on IRS.gov. Publication 3, Armed Forces Tax GuidePDF, also available on the IRS Web site, describes this and other special tax provisions for members of the military.
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IR-2010-46, April 9, 2010
WASHINGTON — The Internal Revenue Service today reminded taxpayers to review their tax returns for common errors that could result in delayed refunds. Here are some ways to avoid common tax return errors.
File electronically. If you e-file or Free File, tax software will do the calculations, flag common errors and prompt you for missing information.
Remember Making Work Pay. The Making Work Pay tax credit –– available in 2009 and 2010 –– is worth up to $400 for individuals and $800 for married couples. Most people got it as a reduction to their paycheck withholding. Form 1040 filers must complete Schedule M, attach it to their returns, and claim the credit to benefit from it. (Tax software handles these calculations automatically for e-filers.) Also, if you received the one-time Economic Recovery Payment, you need to reduce your Making Work Pay credit by that amount. Taxpayers who are not certain whether they received the economic recovery payment can find out with the help of an online tool, Did I Receive a 2009 Economic Recovery Payment? If you don’t have access to the IRS Web site, call 866-234-2942.
Claiming the Homebuyer Credit? If you claim the first-time homebuyer credit, complete Form 5405PDF, and include it along with the settlement document, such as a HUD-1. More information is available on the homebuyer page.
Use the peel-off label if you mail a paper return. Paper filers may line through and make corrections right on the label. Be sure to fill in your Social Security number in the box provided on the return. If you do not have a peel-off label, fill in all requested information clearly, including Social Security numbers.
Check only one filing status. Also, check the appropriate exemption boxes. When you enter Social Security numbers, make sure they are correct.
Double check all figures. While software catches and prevents many errors on e-file returns, math errors remain common on paper returns.
Get the Right Routing and Account Numbers. Make sure the financial institution routing and account numbers you have entered on the return for direct deposit of your refund are accurate. Incorrect numbers can cause your refund to be delayed or deposited into the wrong account.
Sign and date the return. If you are filing a joint return, both you and your spouse must sign and date the return. E-filers can sign using a self-selected personal identification number (PIN).
Attach Forms To the Front of the Return. Paper filers need to attach W-2s and other forms that reflect tax withholding, as well as other necessary forms and schedules, to the front of their returns.
Do you owe tax? If so, a number of e-payment options are available. Or send a check or money order payable to the “United States Treasury.”
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IR-2010-42, April 7, 2010
WASHINGTON — Taxpayers who need extra time to file their federal returns this year can file the Form 4868 request for an automatic extension through IRS Free File. The extension gives you an additional six months, until Oct. 15, to file the tax return.
Taxpayers can file the request for extension with traditional Free File or Free File Fillable Forms. Using Free File to prepare and electronically submit Form 4868 is free to everyone.
In addition, taxpayers can use paid preparers or purchased software to electronically file Form 4868. A paper versionPDF is also available for download from the IRS Web site, IRS.gov. However, you will only receive an acknowledgement that the IRS received your request, if you e-file or Free File the request.
Free File and Free File Fillable Forms will be available through Oct. 15.
An Extension to File, Not to Pay
An extension of time to file is not an extension of time to pay. You need to estimate your tax liability and pay any balance due when you request the extension. Several payment options are available, including electronic funds withdrawal, credit card and check.
If you are unable to pay the total balance due, you should pay as much as possible and then contact the IRS about an installment plan. Even if you cannot pay the balance due, it is important to either file a return or request an extension to avoid the failure-to-file penalty.
The IRS expects to receive approximately 10 million extension requests in 2010, which is about the same as last year. Some taxpayers automatically receive extensions to file. For example, military personnel serving in a combat zone have 180 days after leaving the combat zone to file their returns. Victims of recent natural disasters in certain federally declared disaster areas also have extra time.
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IR-2010-40, April 2, 2010
WASHINGTON —The Internal Revenue Service and the Treasury Department today announced that guidance will be developed and published under the IRS’s Industry Issue Resolution (IIR) program for several significant issues affecting the telecommunications and retail industries.
Telecommunication issues include the proper treatment of unit of property for network assets, and the appropriate asset class for wireless telecommunications assets. The retail industry issue selected will address vendor mark-down allowances under the retail inventory method. These issues affect nearly all taxpayers in the respective industries.
Since its inception in 2000, the IIR program has resulted in resolution of many different tax issues cumulatively affecting thousands of taxpayers in many different lines of business. For each issue selected, a multi-functional team gathers and analyzes the relevant facts and recommends guidance.
At any time, business associations and taxpayers may submit tax issues that they believe could be resolved through the IIR program. IIR project selection criteria and submission procedures are outlined in Revenue Procedure 2003-36, which is available on the IRS Web site at IRS.gov. While issues may be submitted for consideration for inclusion in the IIR program at anytime, submissions must be received by August 31st for the summer screening of submissions.
Below is detailed information regarding the issues accepted during the latest review of IIR submissions.
 




Issues Submissions for the IIR Program Reviewed - Selected as a 2010 IIR Project




Issue Description:  Unit of Property for Network Assets in the Telecommunications Industry
 IRS Contact:
Patricia Chabeck
			Industry Director
			Communications, Technology, and Media
 Phone #   510-637-4600
 


Submitted by: AT&T, USTelecom, and CTIA




Issue Description: Appropriate Asset Class for Wireless Telecommunications Assets
IRS Contact:
Patricia Chabeck
			Industry Director
			Communications, Technology, and Media
 Phone #   510-637-4600
 


Submitted by:  AT&T




Issue Description:  Vendor Mark Down Allowances under the Retail Inventory Method
IRS Contact:
James Roosey
			Director, Field Operations - East
			Retailers, Food, Pharmaceuticals, and Healthcare
 Phone #   630-493-5941
 


Submitted by:  National Retail Federation
IR-2010-38, April 1, 2010
WASHINGTON ― Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service.
Included in the health care reform legislation, the Patient Protection and Affordable Care Act, approved by Congress and signed by President Obama on March 23, the credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.
“This credit provides a real boost to eligible small businesses by helping them afford health coverage for their employees,” said IRS Commissioner Doug Shulman. “We urge small businesses and tax-exempt employers to look closely at this important tax break — which is already effective — to see if they qualify.”
The maximum credit is 35 percent of premiums paid in 2010 by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. In 2014, this maximum credit increases to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible employers that are tax-exempt organizations.
The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. It is generally available to employers that have fewer than 25 full-time equivalent (FTE) employees paying wages averaging less than $50,000 per employee per year. Because the eligibility formula is based in part on the number of FTEs, not the number of employees, many businesses will qualify even if they employ more than 25 individual workers.
The maximum credit goes to smaller employers — those with 10 or fewer FTEs — paying annual average wages of $25,000 or less.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt employers, the IRS will provide further information on how to claim the credit.
The IRS will use postcards to reach out to millions of small businesses that may qualify for the credit. The postcards will encourage small business owners to take advantage of the credit if they qualify.
More information about the credit, including tax tips, guidesPDF and answers to frequently asked questions, is now available on the IRS Web site, IRS.gov.
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IR-2010-67, May 27, 2010
WASHINGTON — The Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting on June 9 and submit its latest round of recommendations to the IRS Commissioner Doug Shulman and other senior executives.
The ACT provides an organized public forum for the IRS to receive regular input on exempt organization, employee plan, and government entity policy. The advisory committee consists of external stakeholders who are appointed by the Secretary of the Treasury.
Specifically, the ACT makes recommendations on operational policies and procedures regarding employee retirement plans, tax-exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. ACT members generally serve two-year terms.
Reports from five ACT subgroups cover the following topics:
Employee Plans: Analysis and Recommendations Regarding the IRS’s Determination Letter Program
Federal-State-Local Government Compliance Verification Checklist for Public Employers (Phase II)
FICA Taxes in Indian Country and the Problem of Selective Incorporation in Administration of the Code
The Implementation of Tribal Economic Development Bonds Under the American Recovery and Reinvestment Act of 2009
Tax Exempt Bonds:  Improvements to the Voluntary Closing Agreement
Program for Tax Exempt, Tax Credit and Direct Pay Bonds
Exempt Organizations:  Getting It Right: An Online Guide to Setting Executive Compensation for Charities
Last-minute agenda changes may preclude advance notice.  Due to limited seating and security requirements, attendees should call Cynthia PhillipsGrady to confirm their attendance. She can be reached at (202) 283-9954 (not a toll-free number). 
ACT’s public meeting will begin at 9 a.m. ET on June 9, 2010, at the IRS headquarters at 1111 Constitution Ave., N.W., Washington, D.C. ACT reports are available on IRS.gov.
Attendees are encouraged to arrive at least 30 minutes before the meeting begins to allow sufficient time for security clearance.  Picture identification must be presented.  Please use the main entrance at 1111 Constitution Ave., NW, to enter the building.
Should you wish the ACT to consider a written statement, please call (202) 283-9966, or write to:  Internal Revenue Service; 1111 Constitution Ave., NW; SE:T:CL-Penn Bldg; Washington, DC 20224, or e-mail Steve.J.Pyrek@irs.gov (Obsolete).
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IR-2010-66, May 26, 2010
WASHINGTON – The Internal Revenue Service will soon begin accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs, which will allow some organizations to apply for annual funding for up to three years.
Applications will be accepted June 1, 2010, through July 9, 2010. Previous grant recipients will have the option to apply for up to three years of annual funding, which would reduce the amount of paperwork they must complete over a three-year period. This annual funding will also help recipients with budget planning.
The 2011 application packages and guidelines will be available on the IRS website by June 1, 2010.   More information about the TCE and VITA grants is available in Publication 4680PDF, TCE & VITA Grant Programs.
The IRS in 2010 awarded 24 TCE grantees $6.1 million and 147 VITA grantees $7.44 million. Through mid May, the two grant programs filed more than 2.1 million returns at almost 9,000 sites nationwide.
The TCE program was established in 1978 to provide tax counseling and return preparation to persons age 60 or older and to give training and technical assistance to the volunteers who provide free federal income tax assistance within elderly communities across the nation. 
The VITA Grant program was established in 2007 to supplement the VITA program, which was created in 1969.  VITA provides underserved communities with free tax filing assistance.  The grant program enables VITA to extend services to underserved populations in hardest-to-reach urban and non-urban areas, to increase the capacity of targeted taxpayers to file returns electronically, to enhance training of volunteers and to improve the accuracy rate of returns prepared at VITA sites. 
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IR-2010-65, May 20, 2010
WASHINGTON – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 2010, will remain the same. The rates will be: 
four (4) percent for overpayments [three (3) percent in the case of a corporation];
four (4) percent for underpayments;
six (6) percent for large corporate underpayments; and
one and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. 
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. 
The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. 
The interest rates announced today are computed from the federal short-term rate during April 2010 to take effect May 1, 2010, based on daily compounding.
Revenue Ruling 2010-14, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2010-26, dated June 28, 2010.
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IR-2010-63, May 17, 2010
WASHINGTON — The Internal Revenue Service today issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage.
Notice 2010-44PDF provides detailed guidelines, illustrated by more than a dozen examples, to help small employers determine whether they qualify for the credit and estimate the amount of the credit. The notice also requests public comment on issues that should be addressed in future guidance.
Included in the Affordable Care Act approved by Congress in March and signed into law by the President, the small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller employers –– those with 10 or fewer full-time equivalent (FTE) employees –– paying annual average wages of $25,000 or less. The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
More information about the credit, including a step-by-step guidePDF and answers to frequently asked questions, is available on the Affordable Care Act page.
Related Item: Small Business Health Care Tax Credit for Small Employers
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IR-2010-62, May 14, 2010
WASHINGTON —The Internal Revenue Service today released the spring 2010 issue of the Statistics of Income Bulletin, which features data on high-income individual income tax returns filed for tax year 2007, gift tax returns filed in 2008 and trust income from the 2002 through 2006 period.
For example, taxpayers filed over 4.5 million returns with adjusted gross income of $200,000 or more for 2007, up from over 4 million returns in the prior year. These high-income returns represent over 3 percent of all returns filed for 2007.
This issue of the quarterly Bulletin also contains articles about the following:
Individual taxpayers who itemized reported $59 billion in deductions for noncash charitable contributions in 2007. Of these nearly 24 million taxpayers, almost 7 million reported close to $53 billion in deductions on Form 8283, Noncash Charitable Contributions. The number of Form 8283 filers increased 12 percent from 6 million in 2006, and the amount claimed in donations increased to nearly 13 percent from $47 billion.
About 257,000 gift tax returns were filed in 2008, 96 percent were nontaxable.  The reported total amount of gifts was $45 billion.  Cash was the predominant type of asset gifted, representing 46 percent of the total, while corporate stock accounted for 24 percent and real estate 17 percent.  The majority of gift tax returns, almost 52 percent, were filed by female donors.
Of the more than 400,000 simple trusts analyzed in a panel study, total income was $15 billion in 2002 and reached $26 billion in 2006. Total deductions grew from $12 billion to $15 billion over the same period for simple trusts. For the more than 700,000 complex trusts analyzed in the panel study, reported total income increased from $28 billion in tax year 2002 to $60 billion in tax year 2006. Total deductions increased from $15 billion in 2002 to $20 billion in tax year 2006 for complex trusts.
Issued quarterly, the SOI Bulletin provides a series of articles containing in-depth statistical data based on tax returns filed by individuals, corporations, tax exempt organizations, partnerships and other entities.
The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; call Statistical Information Services at (202) 874-0410; or send a fax to (202) 874-0964. These are not toll-free numbers. 
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