etrent17/irs-articles huggingface dataset:
Update Aug. 3, 2011 — The draft Form 1099K has been deleted. The current-year version may be found on the forms page.
IR-2009-106, Nov. 23, 2009
WASHINGTON — The Internal Revenue Service today issued proposed regulationsPDF under a new statute requiring that, starting with transactions in calendar year 2011, the gross amount of payment card and third-party network transactions be reported annually to participating merchants and the IRS.
The provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.
“Time and time again, we have seen that better information reporting helps the tax system work better by ensuring that everyone pays what they owe,” said IRS Commissioner Doug Shulman. “The new law gives us an important new tool for closing the tax gap and also provides business taxpayers better documentation to compute and report their income and expenses. The IRS will work closely with stakeholder groups to ensure a smooth implementation of this new program."
These proposed regulations, posted today on IRS.gov, propose rules to implement reporting of credit card, debit card and similar transactions, as well as transactions settled through third-party payment networks, such as third-party organizations that settle online transactions. The IRS also released for comment a draft version of new Form 1099K, Merchant Card and Third-Party Payments, which will be used to make these reports.
The new law requires banks and other payment settlement entities to report payment card and third-party network transactions with their participating merchants. The IRS emphasized that individual cardholders are unaffected by this requirement, and none of the cardholder’s personal information will be shared with the IRS.
The IRS has created Form 1099K, which is similar to the existing Forms 1099 used to report interest, dividends and other payments. The first information return covering calendar year 2011 must be filed with the IRS and furnished to participating merchants in early 2012. Among other things, the proposed regulations describe who is required to file a return and which payment card and third-party network transactions are subject to the reporting requirement. The proposed regulations also provide numerous examples.
The IRS welcomes comments on these proposed regulations and the draft Form 1099K. Comments must be received by Jan. 25, 2010, and may be submitted electronically, by mail or hand delivered to the IRS. A public hearing is scheduled for Feb. 10, 2010, in Washington, D.C.
The proposed regulations provide details on submitting comments or participating in the public hearing.
The IRS continues to work closely with stakeholders to ensure the smooth implementation of this new information reporting program, including the mitigation of penalties in the early stages of implementation for all but particularly egregious cases.
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New Q&As on NOL Carryback under the new law. (12/17/09)
IR-2009-105, Nov. 20, 2009
WASHINGTON — Most businesses may use losses incurred during the economic downturn to reduce income from prior tax years, under a revenue procedurePDF issued today by the Internal Revenue Service.
The relief provided under the Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA) differs from similar relief issued earlier this year in that the previous relief was limited to small businesses.
The current relief is applicable to any taxpayer with business losses, except those that received payments under the Troubled Asset Relief Program. The relief also applies to a loss from operations of a life insurance company.
Taxpayers under the procedure may elect to carry back a net operating loss (NOL) for a period of three, four or five years, or a loss from operations for four or five years, to offset taxable income in those preceding taxable years. An NOL or loss from operations carried back five years may offset no more than 50 percent of a taxpayer's taxable income in that fifth preceding year. This limitation does not apply to the fourth or third preceding year.
The procedure applies to taxpayers that incurred an NOL or a loss from operations for a taxable year ending after Dec. 31, 2007, and beginning before Jan. 1, 2010. 
Related Items:
Revenue Procedure 2009-52PDF
Questions and Answers on WHBAA NOL provisions
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Update April 26, 2013— Link to 2010 Grant Recipients has been removed as obsolete. 
IR-2009-103, Nov. 10, 2009
WASHINGTON — The Internal Revenue Service today announced for the second year in a row it has awarded nearly $8 million in matching grants to support its Volunteer Income Tax Assistance program.
Under the VITA Grant Program, the IRS awarded matching grants to 147 organizations that will offer free tax preparation services during the 2010 filing season. Our VITA partners assist taxpayers in all 50 states and the District of Columbia.
“We're proud to support the VITA program and their volunteer tax preparers who provide an invaluable service to millions of taxpayers,” said Richard Byrd, Jr.,IRS Wage and Investment Operating Division Commissioner.
The funds will be used to:
Enable VITA programs to extend services to underserved populations and hardest to reach areas, both urban and non-urban
Increase the capacity to file returns electronically
Heighten quality control and improve the accuracy of returns prepared by the VITA sites
Enhance training of volunteers
There was a strong response to the 2010 VITA grant program with 360 organizations submitting applications requesting more than $30 million in matching funds, similar to the prior year.
VITA partners are organizations that provide free federal tax return preparation and electronic filing to low and moderate income individuals. For tax year 2009, individuals and families with an adjusted gross income of $49,000 or lower are eligible for assistance.
The VITA program has enjoyed tremendous support since it was created in 1969. For example, more than 3 million tax returns were prepared at nearly 12,000 locations during the 2009 filing season by volunteers working under either the VITA program or the Tax Counseling for the Elderly, another volunteer program sponsored by IRS.
Questions can be sent to Grant.Program.Office@irs.gov.
Related Item: 2010 VITA Grant Recipients
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IR-2009-103, Nov. 10, 2009
WASHINGTON — Tax professionals can hear first hand from their colleagues and e-mail questions to the Internal Revenue Service about the benefits of IRS e-file during a free Nov. 18 webinar, “E-file: Building the Case, A Panel Discussion with Tax Professionals.”
The hour-long program, hosted by the IRS, will air three times on Nov. 18. Tax professionals must register by Nov. 17 for one of three session times: 10 a.m., 1 p.m. or 4 p.m. EST.
The webinar is part of an ongoing IRS effort to encourage tax preparers to use e-file for all their clients’ tax return transmissions.
John Myett, an IRS subject matter expert in electronic interactions, will discuss what the IRS is doing to improve the e-filing experience for tax professionals and their clients.
A panel comprising representatives from national practitioner organizations will respond to questions. Kim Lawson, an IRS analyst, will moderate the event.
Participants include:
James Adelman, National Association of Enrolled Agents
Larry Gray, National Association of Tax Professionals
Joe Marchbein, American Institute of Certified Public Accountants
The IRS will collect e-mailed questions from viewers who submit them during each Nov. 18 show, and will post the consolidated questions and answers to IRS.gov at a later date. The program’s archived version will also be posted to the Web site. Certificates of Completion are available to those who need them for Continuing Professional Education credit.
For more details, visit IRS.gov and Search National Phone Forums and Webinars or register now using your e-mail address. You will need a high-speed Internet connection to view the webinar, and speakers for the audio.
Related Items:
National Phone Forums and Webinars
IRS Webinar Registration
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Audio File for Podcast [No longer available]Video: Undelivered Refunds [No longer available]Video: Track Your Refund [No longer available]
IR-2009-101, Nov. 5, 2009
WASHINGTON — The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million in the form of 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.
“We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.”
All a taxpayer has to do is update his or her address once. The IRS will then send out all checks due. Undeliverable refund checks average $1,148 this year, compared to $990 last year. Some taxpayers are due more than one check.
Average undeliverable refunds rose by 16 percent this year, which is in line with the 16 percent rise in average refunds for all tax returns in the latest filing season. Several changes in tax law likely played a role in boosting refunds, including the First-Time Homebuyer’s Credit and the Recovery Rebate Credit, among others.
The vast majority of checks mailed out by the IRS each year reach their rightful owner. Only a very small percent are returned by the U.S. Postal Service as undeliverable.
If a refund check is returned to the IRS as undeliverable, taxpayers can generally update their addresses with the “ Where’s My Refund?” tool on IRS.gov. The tool enables taxpayers to check the status of their refunds. A taxpayer must submit his or her social security number, filing status and amount of refund shown on their 2008 return. The tool will provide the status of their refund and in some cases provide instructions on how to resolve delivery problems.
Taxpayers checking on a refund over the phone will be given instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
The IRS encourages taxpayers to choose direct deposit when they file their returns because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.
The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds.
E-file coupled with direct deposit is your best option; it’s easy, fast and safe.
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IR-2009-100, Nov. 3, 2009
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
There are no vacancies in Tax Exempt Bonds, Indian Tribal Governments, or Federal, State and Local Governments.
Members are appointed by the Secretary of the Treasury and serve two-year terms, beginning in June 2010. Applications will be accepted through Dec. 1, 2009.
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.
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. Members of the ACT may not be federally registered lobbyists. A notice published in the Federal RegisterPDF, dated Nov. 3, 2009, contains more details about the ACT and the application process.
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-2009-122, Dec. 31, 2009
WASHINGTON — A new rule has expanded to 120 days the time period during which the Internal Revenue Service may share a taxpayer’s tax-return information with third parties, based on a taxpayer’s written disclosure authorization.
The newly-expanded time window is retroactive to Oct. 19, 2009. Consequently, any disclosure authorization signed and dated by a taxpayer on or after Oct. 19 qualifies for the new 120-day window. Forms affected by this change include:
Form 4506PDF, Request for Copy of Tax Return,
Form 4506-TPDF, Request for Transcript of Tax Return,
Form 4506T-EZPDF, Short Form Request for Individual Tax Return Transcript and
Form 8821PDF, Tax Information Authorization.
Many taxpayers use these forms to authorize the sharing of their tax information with others, including financial service providers. The IRS will share the requested information with the designated third party, as long as the agency receives the disclosure authorization within 120 days of the date it is signed and dated by the taxpayer.   
The IRS on Dec. 18, 2009 released Notice 2010-8PDF, which set forth an interim rule extending from 60 to 120 days the period within which signed and dated authorizations to disclose taxpayers’ tax-return information to third parties must be received by the IRS in order to be effective. The IRS made this change because some institutions charged with assisting taxpayers in their financial dealings have encountered difficulty in obtaining written disclosure authorizations and submitting them to the IRS within the 60 days allowed by the existing regulation. The interim rule will remain in effect until the IRS amends the regulations under section 6103(c) of the Internal Revenue Code.
The IRS welcomes comments on the proposed changes to the regulations.  Comments must be received by Jan. 25, 2010, and may be submitted electronically, by mail or by hand delivery to the IRS.  Notice 2010-8 provides additional details on the submission of comments.
WASHINGTON — The Internal Revenue Service today announced the issuance of proposed and temporary regulations and related revenue rulings addressing the use or disclosure of tax return information by tax return preparers.
The regulations and related revenue rulings under section 7216 enable tax return preparers to more effectively provide a range of services that taxpayers would ordinarily expect from tax return preparers. Generally, these services benefit taxpayers, increase voluntary compliance and improve tax administration.
The proposed and temporary regulations enable tax return preparers to use or disclose tax return information without explicit taxpayer consent in certain limited circumstances. Tax preparers can contact their clients regarding tax law developments that may affect the clients. They can also disclose information in connection with the potential sale or purchase of a tax return preparer’s business and during the process of conducting client conflict-of-interest checks.
Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and eight copies) or electronic comments that are submitted timely to the IRS. The IRS and the Treasury Department request comments on the clarity of the proposed rules, how they can be made easier to understand and the administrability of the rules in the proposed regulations. All comments will be made available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits written comments.
Related items:
Revenue Ruling 2010-4PDF
Revenue Ruling 2010-5PDF
 
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IR-2009-120, Dec. 23, 2009
WASHINGTON — The Internal Revenue Service today announced the 2010 inflation adjustments to the excise taxes on air transportation.
Excise taxes apply to the domestic segments of taxable air transportation and to the use of international air facilities. The Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II, signed into law on Dec. 16, 2009, extends these excise taxes to air transportation that begins or is paid for no later than March 31, 2010.
These excise taxes are adjusted annually for inflation:
For 2010, the excise tax on the domestic segment of taxable air transportation is $3.70, up from $3.60 in 2009.
The excise tax for 2010 for international flights that begin or end in the United States is unchanged at $16.10.
The tax on use of international air facilities also applies at a reduced rate to departures of interstate flights that begin or end in Alaska or Hawaii. For 2010, the international air facilities tax on these flights is $8.10, up from $8.00 in 2009.
Further details on the excise taxes on air transportation can be found in Form 720PDF, Quarterly Excise Tax Return, and its instructionsPDF.
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IR-2009-119, Dec. 17, 2009
WASHINGTON — The Internal Revenue Service today reminds individual taxpayers who are considering buying a new car that they have until Dec. 31 to take advantage of a tax break that may not be around in 2010.
Taxpayers who buy a qualifying new motor vehicle this year after Feb. 16 can deduct the state or local sales or excise taxes they paid on the first $49,500 of the purchase price. Qualifying motor vehicles include new passenger automobiles, light trucks, motorcycles, and motor homes.
Individuals who itemize and those who take the standard deduction can benefit from this tax break. In states without a sales tax, other taxes or fees can qualify if they are assessed on the purchase of the vehicle and are based on the vehicle’s sales price or as a per unit fee.
The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who take the standard deduction need to complete Schedule L and attach it to Form 1040 or Form 1040A to increase the standard deduction by the allowable amount of state or local sales or excise taxes paid on the purchase of the new vehicle. Also, check the box on line 40b on Form 1040 or line 24b on Form 1040A. Individuals who itemize should include the allowable amount of state or local sales or excise taxes from the purchase of the vehicle on Form 1040, Schedule A.
See also:  Sales Tax Deduction for Vehicle Purchases
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Update Aug. 3, 2011 — Draft Form 1099-B has been deleted. The current-year form is available on the forms page.
IR-2009-118, Dec. 16, 2009
WASHINGTON — The Internal Revenue Service today issued proposed regulations under a new law that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years. The reporting will be to investors and the IRS. This additional reporting will be optional for stock purchased prior to these dates.
“This important reporting change will improve tax compliance while reducing the recordkeeping and paperwork burden for millions of investors,” said IRS Commissioner Doug Shulman. “These taxpayers will now receive the information they need to more easily report their gains and losses correctly.”
These proposed regulations, posted today on the Federal Register, implement a provision in the Energy Improvement and Extension Act of 2008. Among other things, the proposed regulations describe who is subject to this reporting requirement, which transactions are reportable and what information needs to be reported. They also provide numerous examples.
The IRS also released for comment a draft version of the 2011 Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, that stock brokers and mutual fund companies will use to make these expanded year-end reports. Form 1099-B, long used to report sales prices, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year. The expanded form will also be used to report whether gain or loss realized on these transactions is long-term (held more than one year) or short-term (held one year or less), a key factor affecting the tax treatment of gain or loss. The expanded Form 1099-B, to be first used for calendar-year 2011 sales, must be filed with the IRS and furnished to investors in early 2012.   
The IRS welcomes comments on these proposed regulations and the draft 2011 Form 1099-B. Comments must be received by Feb. 8, 2010, and may be submitted electronically, by mail or hand delivered to the IRS. A public hearing is scheduled for Feb. 17, 2010, at the IRS New Carrollton Federal Building, 5000 Ellin Road, Lanham, Maryland 20706. The proposed regulations provide details on submitting comments or participating in the public hearing.
The IRS will work closely with stakeholder groups to ensure a smooth implementation of this new program.
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IR-2009-115, Dec. 10, 2009
WASHINGTON — Rosemary D. Marcuss will join the Internal Revenue Service as Director for Research, Analysis and Statistics, IRS Commissioner Doug Shulman announced today.
Marcuss comes to the IRS from the Bureau of Economic Analysis (BEA), U.S. Department of Commerce, where she served as Deputy Director and participated in the production of U.S. national economic statistics such as gross domestic product, corporate profits, personal income and U.S. balance of payments.
Prior to joining BEA in 1999, Marcuss was Assistant Director for Tax Analysis at the U.S. Congressional Budget Office. In that position, she was responsible for projections of federal government tax receipts and analysis of federal tax policy.
“Cutting-edge research supports virtually everything the IRS does,” IRS Commissioner Doug Shulman said. “Rosemary’s background in statistics and tax policy, coupled with her experience as a strong leader, will help the IRS execute on its mission.”
In addition to her work in government and on Capitol Hill, Marcuss was also an economist at Data Resources, Inc., in Washington, D.C. She received her Ph.D. in economics from the University of Maryland, where she was a National Science Foundation fellow.
As Director of Research, Analysis and Statistics, Marcuss will lead the National Research Program and have responsibility over several other research-related functions, including the Statistics of Income Division, which produces the quarterly Statistics of Income Bulletin and the annual IRS Databook.
Marcuss replaces former Director Mark Mazur, who moved to the Treasury Department earlier this year. Marcuss will begin her new position in January.
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IR-2009-113, Dec. 7, 2009
WASHINGTON — The Internal Revenue Service today announced that Victor Song will become the new chief for IRS Criminal Investigation, replacing Eileen Mayer who is retiring in January.
Song currently is the CI deputy chief. Rick Raven will move to CI deputy chief.
“Victor Song and Rick Raven bring a wealth of experience, integrity and dedication to their jobs. They will continue the great leadership tradition in CI as the agency faces new challenges,” said IRS Commissioner Doug Shulman. “I also congratulate Eileen Mayer for her tireless dedication to public service for 35 years.”
Criminal Investigation is the IRS’ law enforcement arm. Its worldwide staff investigates and assists in the prosecution of criminal tax evasion, money laundering and narcotics-related financial crime cases.
Song, of Hawaii, joined the IRS in 1981 and became a special agent in 1983. He led numerous CI offices and joined the senior executive service in 2004. He became CI deputy chief in 2007. Song has a Bachelor’s Degree in communications from the University of Hawaii.
Raven’s IRS career began as a special agent in Reno, Nev., in 1987. He joined the ranks of senior executive service in 2008 when he was selected as the Director of Operations, Policy and Support, the position he currently holds. Raven, of Nevada, has a Bachelor’s Degree in accounting from the University of Nevada-Reno.
Mayer will retire after 35 years of government service, much of it as a prosecutor with the U.S. Attorney’s Office. She came to the IRS in 2006 and has been CI chief since 2007. Among her many accomplishments, Mayer led CI efforts to stem international tax evasion.
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IRS YouTube Video: Record Keeping: English | ASL (Obsolete)
IR-2009-112, Dec. 4, 2009
WASHINGTON — Taxpayers can get the most out of new recovery tax breaks and get a jump on preparing their 2009 federal income tax returns by consulting a newly revised comprehensive tax guide now available on IRS.gov.
Publication 17PDF, Your Federal Income Tax, features details on taking advantage of new tax-saving opportunities, such as the making work pay credit for most workers, American opportunity credit for parents and college students, energy credits for homeowners going green, first-time homebuyer credit, sales or excise tax deduction for new car buyers, and the expanded child tax credit and earned income tax credit for low- and moderate-income workers. This useful 308-page guide also provides more than 6,000 interactive links to help taxpayers quickly get answers to their questions.
Publication 17 has been published annually by the IRS for more than 65 years and has been available on the IRS Web site since 1996. As in prior years, this publication is packed with basic tax-filing information and tips on what income to report and how to report it, figuring capital gains and losses, claiming dependents, choosing the standard deduction versus itemizing deductions, and using IRAs to save for retirement.
Those who do not have access to the Internet can call 1-800-TAX-FORM (829-3676) to request a free copy from the IRS. Printed copies will be available in January 2010.
Besides Publication 17, IRS.gov offers many other helpful resources for those doing year-end tax planning. Many 2009 forms are already posted, and updated versions of other forms, instructions and publications are being posted almost every day. Forms already available include Form 1040, short Forms 1040A (obsolete) and 1040EZ (obsolete), Schedule A for itemizing deductions, new Schedule L for those increasing their standard deduction by real-estate taxes paid, sales or excise taxes on new car purchases or a net disaster loss, and new Schedule M for claiming the making work pay credit.
In addition, the American Recovery and Reinvestment Act of 2009 Information Center features a variety of recovery-related videos, podcasts, tax tips and answers to frequently-asked questions.
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IR-2009-111, Dec. 3, 2009
WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2009-54PDF contains additional details regarding the standard mileage rates.
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IR-2009-110, Dec. 1, 2009
WASHINGTON — The Internal Revenue Service today extended for an additional two years its program that simplifies the recordkeeping burden for reporting tip income in the food and beverage industry.
The Attributed Tip Income Program (ATIP) was first announced in 2006 in Revenue Procedure 2006-30PDF. The program, which was originally set to expire Dec. 31, 2009, has been extended to Dec. 31, 2011, under Revenue Procedure 2009-53PDF issued today.
Employers who participate in ATIP report the tip income of employees based on a formula that uses a percentage of gross receipts, which are generally allocated among employees based on the practices of the restaurant.
Both employees and employers benefit from participation in the ATIP program. The IRS will not initiate a tip examination during the period the employer and employee participate in ATIP. Participating employees do not have to keep a daily tip log or other tip records.
Enrollment is simple. Employers elect participation in ATIP by checking the designated box on Form 8027PDF, Employer’s Annual Information Return of Tip Income and Allocated Tips. Employees who work for a participating employer can easily elect to participate in ATIP by signing an agreement with their employer to have their tip income computed under the program and reported as wages.
Form 8027 is available on IRS.gov, or by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).
 
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IR-2008-9, Jan. 15, 2008
WASHINGTON — The Internal Revenue Service is joining national TV network Telemundo in a special one-hour tax program for Spanish-speaking taxpayers on Sunday, Jan. 27. The program, “Los Impuestos y Usted” (“Taxes and You”), will air at:

3:30 p.m. Eastern and Pacific Time.


2:30 p.m. Central Time.


1:30 p.m. Mountain Time.

Consult your local listings for exact times.
“Los Impuestos y Usted” will focus on a variety of tax issues. Topics include who must file a return and who can claim deductions and benefits, such as the Earned Income Tax Credit (EITC) for low-income taxpayers. In addition, the program will explain Free File, a service that allows many taxpayers to file their taxes online at no cost. The show will also discuss other kinds of free assistance available from the IRS.
Mónica Noguera, host for many of Telemundo’s special programs, will present the IRS program, which features in-studio interviews with IRS tax experts.
Information about the IRS is available in Spanish at El IRS en Español, which is part of the IRS Web site. Or, call toll-free at 1-800-829-1040, extension 8.
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IR-2008-8, Jan. 14, 2008
WASHINGTON — The Internal Revenue Service today issued a notice that lists four additional erroneous legal positions that taxpayers should refrain from using as an excuse to avoid paying their taxes.
An individual or group may not avoid paying their fair share of taxes by making “frivolous” legal arguments such as those listed in this notice. The IRS publicizes these frivolous claims to help taxpayers understand the law and avoid penalties.
Notice 2008-14 lists positions identified as frivolous for purposes of the penalty under section 6702 of the federal tax code for filing a frivolous tax return or submitting to the IRS a frivolous request for a collection due process hearing or application for an installment agreement, offer-in-compromise, or Taxpayer Assistance Order.
Taxpayers who file a tax return or make a submission based on a position listed in this notice are subject to a $5,000 penalty. This notice adds to the positions listed in Notice 2007-30, 2007-14 I.R.B. 883. The positions that have been added are found in paragraphs 9(g), 11, 14, and 25.
The four new frivolous claims pertain to the following:

Misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending.


Erroneous claims that taxes are owed only by persons with a fiduciary relationship to the United States or the IRS.


A nonexistent “Mariner’s Tax Deduction” (or the like) related to invalid deductions for meals.


Certain instances of misuse or excessive use of the section 6421 fuels credit.

In 2006, Congress increased the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.
Notice 2008-14PDF along with additional information providing the truth about frivolous arguments can be found on IRS.gov.
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IR-2008-3, Jan. 3, 2008
WASHINGTON — The Internal Revenue Service and the Treasury Department today announced that they will work to publish guidance on a method for integrated utilities to use when calculating the tax deduction for domestic production of electricity and natural gas, as well as other production activities.
The goal is to develop an alternative method that integrated utility companies can use to compute qualified production activities under Internal Revenue Code Section 199(c).  
“Providing taxpayers an optional method to comply with a very complex area of the law serves the primary purposes of the Industry Issue Resolution Program (IIR), which provides taxpayers with the guidance that will produce tax certainty and mitigate potential tax controversy,” said Frank Y. Ng, Commissioner of the IRS Large and Mid-Size Business Division.
By selecting the issue for the IIR program, the IRS hopes to clear up concerns about a possible inconsistency among integrated utilities in their approach to computing the deduction for domestic production. To properly compute the section 199 deduction, integrated utility companies are required to determine their domestic production gross receipts, cost of goods sold and direct expenses.
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 business tax issues that they believe could be resolved through the IIR program. IIR project selection criteria and submission procedures are outlined in Revenue Procedure 2003-36PDF, which is available on the IRS Web site at IRS.gov.  The IRS reviews submissions at least semi-annually, with the next review to be on submissions received by March 31, 2008.
Attached is detailed information regarding the issues the IRS considered during its latest review of IIR submissions.
 

ISSUE SUBMISSIONS FOR THE IIR PROGRAM REVIEWED - SELECTED AS A 2007 IIR PROJECT


Utility Industry


Issue Description:  Optional method for calculating domestic production gross receipts, costs of goods sold, or direct expenses for integrated utilities
IRS Contact:
Emile Robertson
			Acting, Director, Field Operations, NRC East
			Natural Resources and Construction
 Phone #   504-558-3239


Submitted by:                KPMG LLP
 
 

 
 

ISSUE SUBMISSIONS FOR THE IIR PROGRAM REVIEWED - NOT SELECTED AS A 2007 IIR PROJECT
			 


Financial Services Industry
			 


Issue Description: 30 Day Grace Period under Regulations Section 31.3406(d)-3 to Provide Certified TINs.


Submitted by:  Wachovia Corporation


Estate and Gift


Issue Description: Basis Step Up for Joint Trusts


Submitted by:  Investors’ Security Trust Company


Cross Industry


Issue Description:  Substantiation requirements for cell phones and other communications equipment
			 


Submitted by: Miller & Chevalier Chartered.

 
 
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IR-2008-29, Feb. 28, 2008
WASHINGTON — The Internal Revenue Service today announced updated procedures related to the Tax Exempt Bond Voluntary Closing Agreement Program (TEB VCAP). The IRS is also soliciting comments from the public on ways the program could be refined and expanded.
“For several years the IRS has operated this general voluntary closing agreement program in an effort to encourage bond issuers and conduit borrowers to voluntarily correct violations of the tax law related to their tax-exempt bonds,” said Clifford Gannett, Director of the IRS’s Tax Exempt Bonds program.  “We are now working diligently to take the next major step in the development of the program by building out a general framework of voluntary closing agreement terms.”
The announcement and the request for comments are contained in Notice 2008-31, which modifies and supersedes Notice 2001-60, 2001-2 C.B. 304. Notices can be found on IRS.gov.
Notice 2001-60 was amended in several key ways including the addition of tax-credit bonds into the TEB VCAP program and that all submissions must now be done electronically.
The IRS is seeking comments on the format and operation of TEB VCAP and suggestions on the general framework of closing agreement terms, including standardized closing agreement terms and amounts that may be specified for particular violations.
Comments should be submitted in writing and mailed to: 
  Steven A. Chamberlin
  Manager, Tax Exempt Bonds Compliance & Program Management
  SE:T:GE:TEB:CPM
  1122 Town & Country Commons
  St. Louis, MO  63017
Notice 2008-31 includes a phone number that market participants can call or further information on the TEB VCAP program.
Related Items:
Notice 2008-31PDF
 
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IR-2008-28, Feb. 28, 2008
Audio file: Economic Stimulus Payment
WASHINGTON — More than 130 million American households will begin receiving Internal Revenue Service letters next week reminding them to file a 2007 tax return in order to receive a 2008 economic stimulus payment.
The mailings by the IRS will begin the first week in March and continue throughout the month. The informational notice, titled Economic Stimulus Payment Notice, alerts people that they may be eligible for a one-time stimulus payment of up to $600 ($1,200 married filing jointly) starting in May. There also is a $300 per child payment for qualifying children younger than 17.
“These special letters remind people that they won’t need to do anything more than file a 2007 tax return in order to put the stimulus payment process in motion,” Acting IRS Commissioner Linda Stiff said.
The notice is informational and does not seek any financial information. The main mailings, which will take place in three weekly batches, will go to taxpayers who filed a tax return last year.
“To receive a payment in 2008, individuals who qualify will not have to do anything more than file a 2007 tax return. The IRS will determine eligibility, figure the amount and send the payment,” the notice states. “This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment.”
However, some people must take an extra step this year to receive a stimulus payment. In late March, the IRS will send a special mailing to certain recipients of Social Security and Veterans Affairs benefits. Generally, those benefits are nontaxable and recipients do not file tax returns. In order to receive a stimulus payment, people in this group need to file a tax return if they have at least $3,000 from a combination of certain Social Security benefits, Veterans benefits and earned income. The minimum stimulus payment for these people is $300 ($600 for married filing jointly).
The IRS has created a sample of Form 1040A with information on how to fill out a few lines that will enable eligible people who do not normally file a tax return to receive the stimulus payment.
More details on the special mailings for recipients of Social Security and veterans benefits will be available soon.
Related Items:

Economic Stimulus Payment NoticePDF

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IR-2008-27, Feb. 28, 2008
WASHINGTON — The Internal Revenue Service today released the winter 2008 issue of the Statistics of Income Bulletin, featuring data from 134.4 million individual income tax returns filed for tax year 2005. Of those returns, 90.6 million were “taxable.” This means that they reported total income tax greater than zero. The number of taxable returns in tax year 2005 was up 1.7 percent from 2004.
Adjusted gross income on these 90.6 million returns totaled $6.857 trillion, an increase of 9.4 percent from 2004. Total income tax on these returns totaled $935 billion, up 12.4 percent from 2004. (Adjusted gross income is total income, as defined by the tax code, less statutory adjustments, which are primarily business, investment and certain other deductions.)
The average tax rate for taxable returns was 13.6 percent in tax year 2005, which was up 0.4 percentage points from 2004.
Taxpayers in the top 1 percent of adjusted gross income reported adjusted gross income of at least $364,657 in tax year 2005. This group accounted for 21.2 percent of all adjusted gross income reported, which was up 2.2 percent from the prior year. This group also accounted for 39.4 percent of total income tax reported, which was up 2.5 percent from 2004.
Taxpayers in the top 5 percent of adjusted gross income reported adjusted gross income of at least $145,283. This group accounted for 35.7 percent of all adjusted gross income reported and 59.7 percent of total income tax.
This edition of the quarterly Bulletin includes articles about the following:

The filing patterns of split-interest trusts were relatively stable between 2005 and 2006.    


Charitable and other types of tax-exempt organizations reported unrelated business taxable income that totaled $1.3 billion in tax year 2004, up 65 percent from 2003.  These organizations reported $364.6 million in unrelated business income tax, an increase of 66 percent since 2003.  


The finances of charitable and other tax-exempt organizations have grown substantially in the 20 years from 1985 to 2004.  For example, the aggregate book value of reported assets for public charities and private foundations totaled $2.5 trillion for tax year 2004, an increase of 222 percent over the 20-year period. 


Another article explores patterns in individual income taxes since the modern income tax was introduced in 1913.

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 the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; call SOI's Statistical Information Services at (202) 874-0410; or fax, (202) 874-0964.  To access an electronic version of the winter 2008 issue of the Bulletin, from the "SOI Bulletins" page described above, select "Winter 2008."
Related Items:

SOI Bulletin: Winter 2007-2008


Historical Tables and Appendix


Tax Statistics

             
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IR-2008-26, Feb. 26, 2008
WASHINGTON — The Internal Revenue Service is initiating enforcement action involving more than 100 U.S. taxpayers to ensure proper income reporting and tax payment in connection with accounts in Liechtenstein.  
The national tax administrations of Australia, Canada, France, Italy, New Zealand, Sweden, United Kingdom, and the United States of America, all member countries of the OECD's Forum on Tax Administration (FTA), are working together following revelations that Liechtenstein accounts are being used for tax avoidance and evasion.
"Combating off-shore tax avoidance and evasion are high priorities for the IRS,” said IRS Acting Commissioner Linda Stiff. “We are determined to protect the United States tax system from abuse and ensure that taxpayers pay what they owe. We will use all our authority to fairly and effectively enforce our tax laws. It should be clear from recent events that there is no safe hiding place for the proceeds of tax avoidance and evasion. Anyone with hidden income and gains would be well-advised to make a prompt and complete disclosure to the Internal Revenue Service.”
The IRS receives information from many sources that can result in enforcement activities to ensure all taxpayers are in compliance with the tax laws. The United States maintains a robust network of bilateral tax treaties and tax information exchange agreements with foreign nations to ensure mutual interests in transparency and cooperation in addressing potential tax abuse.  These exchanges of information provisions are vital to addressing the challenges of ever-expanding flows of capital, people, and transactions across borders.
 
All the countries now working together were represented at the FTA September 2006 meeting in Seoul, Republic of Korea, when Tax Commissioners from more than 30 countries identified the use of tax haven bank accounts as a major threat to successful tax administration. More recently, at the FTA 2008 Meeting in Cape Town, South Africa, the Commissioners agreed to further study the role of banks in tax compliance. The Commissioners will continue to re-examine the effectiveness of measures in place to protect revenue bases. 
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