etrent17/irs-articles huggingface dataset:
IR-2007-94, May 1, 2007
WASHINGTON — The Internal Revenue Service has issued for public comment draft versions of the revised Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, for tax year 2007 and related schedules, including Schedule M-3, new for 2007. Taxpayers with $10 million or more in total reportable assets filing Form 1120-F for tax years ending on or after Dec. 31, 2007 will be required to file Schedule M-3. 
Three other new schedules for Form 1120-F include:
Schedule H, Deductions Allocated To Effectively Connected Income Under Regulations Section 1.861-8
	 
Schedule I, Interest Expense Allocated Under Regulations Section 1.882-5
	 
Schedule P, List of Foreign Partner Interest in Partnerships
The new schedules will provide for increased disclosure of information regarding such items as allocable interest expense and home office deductions, as well as effectively- and non-effectively-connected income that is included in Form K-1 reported by a partnership to a foreign corporate partner and that is reportable by the partner on Form 1120-F. The new schedules also provide a consistent reporting format for all taxpayers. 
In addition, Schedules M-1 and M-2, previously included in Form 1120-F, are now separate forms. Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return is used by corporations with assets under $10 million. Schedule M-2, Analysis of Unappropriated Retained Earnings per Books, is used by all asset size corporations.
 
The draft Form 1120-F and related schedules are available on this Web site.  Comments should be submitted by May 25, 2007, via e-mail to SchM3@irs.gov.
Related Item:  Draft Forms and Schedules
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IR-2007-124, June 28, 2007
WASHINGTON — The Internal Revenue Service today launched four new "Life Cycles" — Web-based information tools — to help guide tax-exempt organizations through the federal tax rules and requirements that pertain to them.
The new tools, patterned after existing life cycles for public charities and private foundations, provide easy navigation through the IRS Web site for:

Social welfare organizations — under Internal Revenue Code section 501(c)(4).
	 


Labor organizations — 501(c)(5).
	 


Agricultural and horticultural organizations, such as farm bureaus — 501(c)(5).
	 


Trade associations and other business leagues — 501(c)(6).

Each life cycle provides a graphical snapshot of five stages organizations typically go through during their existence: starting the organization; applying for tax-exempt status; filing required returns and other documents; maintaining compliance; and terminating the organization.
“The exempt organizations community has enthusiastically embraced the life cycle concept for public charities and private foundations. We thought it made sense to develop similar helpful tools for other sectors of the exempt organizations community," said Lois G. Lerner, director of the IRS’s Exempt Organizations division. “These Web pages are designed to be an easy-to-use service for this community.”
The concept of these user-friendly, Web-based, compliance resources first originated with the Advisory Committee on Tax Exempt and Government Entities (ACT).
Like their predecessors, the new life cycles explain an array of issues, such as how to acquire an employer identification number; how to avoid jeopardizing an organization’s exemption; how political campaign involvement could affect the organization’s status and tax responsibilities; and how disclosure requirements must be met.
Related Item:  Life Cycle of an Exempt Organization
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IR-2007-123, June 21, 2007    
WASHINGTON — The Internal Revenue Service is expanding an outreach effort to ensure that public schools throughout the United States are complying with the universal availability requirement for retirement annuities they may offer. Some schools and school districts may be overlooking offering employees the opportunity to participate in these retirement plans.
To assess the level of compliance, the IRS’s Employee Plans Compliance Unit (EPCU), has started sending questionnaires to public school districts in all 50 states under the auspices of the 403(b) Universal Availability project.
 
This expansion builds upon a pilot project that began in June 2006 with questionnaires that were sent to public schools and districts in New Jersey, Missouri and Washington.  In the initial phase of the expansion, the IRS has begun contacting school districts in Alaska, Florida, Hawaii, Illinois, Nevada, Pennsylvania, Tennessee and Virginia.  School districts in the remaining states will be contacted as part of the project through 2008.
 “Our pilot project in three states showed fairly widespread noncompliance by schools with the universal availability requirement for 403(b) plans,” said Joseph Grant, Director of the IRS Employee Plans division. “But we believe most of it was due to a lack of understanding about what the law requires, not a deliberate failure to comply.”
Typical noncompliance involves excluding participation by certain classes of employees, such as substitute teachers, janitors, cafeteria workers and nurses.  The law requires that all public school employees normally expected to work 20 hours per week must be offered the opportunity to participate in a 403(b) plan if the school or district sponsors one.
Schools that receive the questionnaire should answer it completely and accurately.  If a potential problem is identified, the IRS will correspond with the school or district to help it analyze its 403(b) plan to determine whether it is in noncompliance.  If school officials find a problem, they should use one of the correction methods outlined in the IRS’s follow-up letter.  If a school makes the necessary corrections timely, the IRS will not impose a sanction.
“We know from our pilot project and from talking to representatives from schools and districts across the country that most of the problems stem from either misunderstanding the law or from confusion because of differing rules in various states,” said Grant.  “The project will give schools the chance to identify problems with their plans and to correct them on their own.”
A 403(b) plan is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers.
For more information on this and other EPCU projects, visit the EPCU Web page at /ep.
Related Items:

Additional Information on 403(b)Project

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IR-2007-122, June 20, 2007
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning July 1, 2007. The interest rates are as follows:  

eight (8) percent for overpayments [seven (7) percent in the case of a corporation];
	 


eight (8) percent for underpayments;
	 


ten (10) percent for large corporate underpayments; and 
	 


five and one-half (5.5) 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 based on daily compounding determined during April 2007.
Revenue Ruling 2007-39PDF, announcing the new rates of interest, appears in Internal Revenue Bulletin No. 2007-26, dated June 25, 2007.
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IR-2007-121, June 20, 2007
WASHINGTON — The Internal Revenue Service recommends that employers, payers and their agents begin using a new, improved version of the agent appointment form immediately, to avoid delays in having the IRS approve the agent appointments.
All versions prior to the May 2007 form are now obsolete.
Form 2678, Employer/Payer Appointment of Agent, authorizes an agent to file tax returns and deposit and pay employment or other withholding taxes on an employer or payer’s behalf. However, the employer retains responsibility for filing Form 940, Employer’s Annual Federal Unemployment [FUTA] Tax Return, and depositing and paying FUTA tax.
The IRS recently redesigned Form 2678 to make it clearer and more user-friendly. The redesign resulted from an initiative led by the IRS Office of Taxpayer Burden Reduction.
The IRS receives about 15,000 Forms 2678 annually, encompassing approximately 3,000 agents and 20,000 employers.
The new Form 2678 contains several enhancements that clarify the appointment form and simplify the authorization process, including:

Plain language instructions;
	 


Signature lines for both the employer/payer and the agent to request the agent’s authority, eliminating the need for any additional authorization requests;


Easier revocation, with only one signature — either the employer’s/payer’s or the agent’s — required to revoke authority;
	 


Check boxes that clearly establish which form(s) the agent is authorized to file on the employer’s/payer’s behalf;
	 


A check box for the agent to indicate whether the employer is a disabled individual or other welfare recipient receiving home-care services through a state or local program; and
	 


Disclosure language, authorizing the IRS to disclose information about the taxes and periods covered to the agent and any third party the agent may contract with, such as a reporting agent or CPA.

Employers, payers and agents should complete and send Forms 2678 to the address in the self-contained instructions 60 days before the date they want an appointment to become effective. Those with approved appointments already on file with the IRS do not need to take any action unless, using the new form, they wish to revoke an existing appointment.
IRS will return any obsolete versions of Forms 2678 that are filed and ask senders to submit the May 2007 revision instead.
When the IRS approves Form 2678, both the employer or payer and the agent are liable for the employer’s employment tax, under federal tax law.
The new Form 2678 may be downloaded from this Web site or ordered by calling toll-free 1-800-TAX-FORM (1-800-829-3676).
Related Items:

Form 2678PDF, Employer/Payer Appointment of Agent


Form 940PDF, Employer’s Annual Federal Unemployment [FUTA] Tax Return


Office of Taxpayer Burden Reduction (TBR)

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IR-2007-118, June 15, 2007
WASHINGTON — As the Nationwide Tax Forums begin, tax professionals are being reminded to make reservations now for one of six forums being held throughout the country.
The Nationwide Tax Forums are three-day events that provide tax professionals with the most up-to-date tax information through training seminars presented by IRS experts and partnering organizations. Forums offer an opportunity to receive up to 18 continuing professional education (CPE) credits through a variety of training seminars.
The locations are:

Atlanta — July 17-19


Chicago — July 31-Aug. 2


Las Vegas — Aug. 21-23


New York — Aug. 28-30


Anaheim — Sept. 11-13


Orlando — Sept. 18-20

This year 41 separate seminars are being offered, each of which qualifies for CPE credit for Enrolled Agents and Certified Public Accountants. Additionally, 28 of the 41 qualify for continuing education credit for Certified Financial Planners.
Members of the participating associations below qualify for discounted enrollment costs:

American Association of Attorney-Certified Public Accountants


American Bar Association


American Institute of Certified Public Accountants


National Association of Enrolled Agents


National Association of Tax Professionals


National Society of Accountants


National Society of Tax Professionals

In addition to the seminars, the forums also feature a two-day expo with representatives from the IRS, tax, financial and business communities offering their products, services and expertise.
The cost of enrollment is $165 per person, per city for pre-registration and $299 for late or on-site registration. The pre-registration period ends two weeks prior to the start of each forum.
In a survey of 2006 attendees the forums received a 94 percent satisfaction rate and a 99 percent overall quality rating. Attendees stated that their participation enabled them to offer greater technical expertise to meet their clients’ needs. 2007 marks the 17th year that the IRS has used this successful format to help educate and interact with the tax professional community.
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Note: this content has been edited from the original version to remove links or other information no longer available. The material was accurate at the time it was issued.
 
IR-2007-117, June 14, 2007
WASHINGTON — The Internal Revenue Service today released for comment and discussion a draft Form 990, the annual return required to be filed by tax-exempt organizations to report information about their operations. The IRS hopes to have the form ready for use for the 2008 filing year (returns filed in 2009).
“The tax-exempt sector has changed markedly since the Form 990 was last overhauled more than a quarter of a century ago," said Kevin Brown, Acting Commissioner of the IRS. “We need a Form 990 that reflects the way this growing sector operates in the 21st century. The new 990 aims to give both the IRS and the public an improved window into the way tax-exempt organizations go about their vital mission.”
The redesign of Form 990 is based on three guiding principles:

Enhancing transparency to provide the IRS and the public with a realistic picture of the organization;
	 


Promoting compliance by accurately reflecting the organization’s operations so the IRS may efficiently assess the risk of noncompliance; and
	 


Minimizing the burden on filing organizations.

The draft released today consists of a core form to be completed by each Form 990 filer and a series of schedules designed to require reporting of information only from those organizations that conduct particular activities.
“Most organizations should not experience a change in burden,” said Lois G. Lerner, director of the IRS’s Exempt Organizations division. “However, those with complicated compensation arrangements, related entity structures and activities that raise compliance concerns may have to spend more time providing meaningful information to the public.”
In releasing this redesigned form, the IRS said it is soliciting comments, especially in connection with the goals of increased transparency of information and use as a compliance tool. The comment period lasts until Sept. 14, 2007.
The form, instructions and background material explaining the principles underlying the redesign of the form are available on the exempt organizations portion of this Web site.
Questions and comments should be  mailed to: 




IRS
Form 990 Redesign, SE:T:EO
1111 Constitution Avenue, NW
Washington, DC  20224




Related Item:  More information on the draft redesigned Form 990, schedules and instructions
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Update Jan. 24, 2014 — Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, is obsolete. IRS.gov. After June 30, 2013, the FBAR must be filed electronically with FinCEN.
IR-2007-116, June 13, 2007
WASHINGTON — Taxpayers have an additional two days this year, until July 2, 2007, to file the Report of Foreign Bank and Financial Accounts (FBAR), Form TD F 90-22.1, the Internal Revenue Service announced today.
The deadline for FBAR forms is June 30, 2007. But because June 30 falls on a Saturday, the IRS is allowing taxpayers to file by July 2.
FBAR information returns for the 2006 calendar year must be filed with the U.S. Department of Treasury, P.O. Box 32621, Detroit, Mich., 48232-0621. The address for commercial delivery is: U.S. Department of Treasury, Currency Transaction Reporting, 985 Michigan Avenue, Detroit, Mich., 48226.
The FBAR form is not available for electronic filing, but many income tax software packages can prepare a printed copy.  FBAR forms and instructions are also available on this Web site or FinCEN Web site and from the IRS via telephone at 1-800-829-3676.
The FBAR form is required for each U.S. person who has a financial interest in, or signature authority, or other authority, over any financial accounts, including bank, securities or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year.
Taxpayers who need assistance completing Form TD F 90-22.1 can contact the IRS by telephone at 1-800-800-2877, option 2, or via email at FBARquestions@irs.gov.
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IR-2007-115, June 11, 2007
WASHINGTON — The Internal Revenue Service and Treasury Department today released Notice 2007-54, providing guidance and transitional relief for the return preparer penalty provisions amended by the Small Business and Work Opportunity Act of 2007. The new amendments are effective for returns prepared after May 25, 2007.
The new law amended several provisions of the Internal Revenue Code to extend the return preparer penalties under section 6694 to preparers of all tax returns, including estate and gift tax returns, employment tax returns, and excise tax returns.  Prior to the new law, these penalties applied only to the preparers of income tax returns. The new law also increased the amount of the penalties and changed the standards of conduct that must be met by return preparers in order to avoid penalties under section 6694. 
The transitional relief provided by Notice 2007-54 will apply to all returns, amended returns and refund claims due on or before December 31, 2007, including those returns, amended returns and refund claims filed pursuant to extensions to file due on or before December 31, 2007; to 2007 estimated tax returns due on or before January 15, 2008; and to 2007 employment and excise tax returns due on or before January 31, 2008.
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IR-2007-112, June 5, 2007
WASHINGTON — The application for requesting a reduced fee for entering into an installment agreement for the payment of federal taxes owed is available, the Internal Revenue Service announced today. Form 13844PDF, Application for Reduced User Fee for Installment Agreements, is used to request the reduction. The IRS is working to automate the application process to calculate the appropriate user fees up front, eventually phasing out Form 13844.
Effective January 1, 2007, user fees rose to $105 for non-direct debit agreements, $52 for direct debit agreements and $45 for reinstatements.
Individuals entering into an installment agreement with income at or below certain established levels, based on the Department of Health and Human Services poverty guidelines, can apply to pay a reduced user fee of $43 for new agreements. This also includes agreements where payments are deducted directly from a bank account.
Form 13844 contains steps an individual can use to determine if they qualify for a reduced fee. Qualified applicants should submit the form to the IRS within 30 days from the date of their installment agreement acceptance letter.
Form 13844 does not prevent an applicant’s current year refunds, if any, from being applied to prior taxes being paid in installments or to prior taxes the IRS has deemed currently not collectible.
To be eligible for an installment agreement, a taxpayer must first file all tax returns they are required to file and be current with estimated tax payments, if applicable.
The reduced user fee for individuals with incomes at or below the established levels does not apply to corporations or partnerships. And there are no user fees for continuous wage levies initiated by IRS collection personnel. Form 13844 should not be filed for these situations.
Form 13844 is available in the Forms and Publications section of the IRS Web site at IRS.gov or may be ordered by calling toll-free 1-800-TAX-FORM (1-800-829-3676).
Related Items:

IR-2006-196, IRS Announces Installment Agreement User Fee Increases for Some Taxpayers


IR-2006-159, IRS Announces Online Payment Agreement Application


Payment Plans, Installment Agreements

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IR-2007-111, June 5, 2007
WASHINGTON –– Internal Revenue Service Chief Counsel Donald L. Korb has selected Gregg D. Polsky as the 2007-2008 Professor in Residence. He succeeds Calvin Johnson, whose term as Professor in Residence concluded on May 31, 2007.
Polsky is a nationally known scholar who recently joined the faculty at Florida State University’s College of Law as the Sheila M. McDevitt Professor of Law after serving for six years on the faculty at the University of Minnesota Law School.   Before entering academia, Polsky practiced with the law firm of White & Case, LLP, in its Miami office. Polsky received his J.D. and LL.M. in taxation from the University of Florida’s Levin College of Law.
Polsky is one of four authors of the forthcoming casebook, Federal Income Taxation of Individuals, 6th Edition.  He has authored numerous law review articles on tax law and policy and is a frequent contributor to such leading tax publications as Tax Notes and the Journal of Taxation. 
The Internal Revenue Service Office of Chief Counsel revived its Professor in Residence program earlier this year. Dormant since the late 1980s, the program provides some of the nation’s top legal academicians the opportunity to contribute to the development of legal tax policy and administration. Reporting directly to the Chief Counsel, the Professor in Residence provides advice and assistance on a wide array of legal issues within the scope of his or her expertise.
Polsky will begin his nine month term as Professor in Residence in September.
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IR-2007-134, July 31, 2007
WASHINGTON — The Internal Revenue Service is extending for an additional year the time limit within which victims of Hurricanes Katrina, Rita and Wilma have to sell vacant land that they had owned and used as part of their principal residence that was destroyed as a result of the hurricanes.
Federal tax rules state that individuals have two years within which to sell the vacant land to be able to take advantage of the exclusion on gain from the sale of a principal residence.
Given that the two-year anniversary is approaching for victims of the 2005 hurricanes, the IRS has decided to provide additional time to take advantage of the exclusion. The IRS is granting relief by declaring that these victims now have three years after the destruction of their principal residence as a result of the hurricanes to sell their vacant land that they had owned and used as part of the principal residence.
IRS.gov has specific information on this provision for disaster victims. IRS.gov also has more information on the tax relief extended to victims of hurricanes Katrina, Rita and Wilma.
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IR-2007-133, July 25, 2007
WASHINGTON — The Internal Revenue Service acknowledged the certification by American Honda Motor Company, Inc, that one of its vehicles meets the requirements of the Alternative Motor Vehicle Credit as a qualified fuel cell vehicle.
Purchasers of the 2005 and 2006 Honda FCX, which is only capable of operating on hydrogen, may rely on their certification concerning the vehicle’s qualification for the Qualified Fuel Cell Motor Vehicle Credit. 
The credit amount for the 2005 and 2006 Honda FCX is $12,000.
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IR-2007-132, July 19, 2007
WASHINGTON — The Internal Revenue Service released an interim report summarizing responses from almost 500 tax-exempt hospitals to a May 2006 questionnaire about how they provide and report benefits to the community. Providing community benefit is required for hospitals seeking and retaining tax-exempt status as charities.
Today’s report on the hospital compliance project contains preliminary information on the way nonprofit hospitals, which comprise one of the largest components of the tax-exempt sector, responded to questions about how they provide community benefit. The IRS is still in the process of analyzing the reported data.
“This is an important first step in our ongoing review of community benefit and tax-exempt hospitals,” said Lois G. Lerner, director of the IRS’s Exempt Organizations division. “As the report states, this project gives the IRS a unique and valuable insight into the manner in which hospitals report on and attempt to meet the community benefit standard.”  
According to the report, nearly all hospitals reported that they provided various types of community benefit that were the subject of the questionnaire. Although 97 percent of responding hospitals said they have a written uncompensated care policy, no uniform definition of what constitutes “uncompensated care” emerged from the responses.  Further, there appear to be significant differences in the way other components of community benefit are reported.
“The lack of consistency or uniformity in classifying and reporting uncompensated care and various types of community benefit often makes it difficult to assess whether a hospital is in compliance with current law,” Lerner said. “That’s one reason more analysis is needed.”
While the interim report summarizes but does not analyze the information reported by the hospitals, the IRS’s hospital project team did recommend developing a separate Form 990PDF schedule for hospitals, as a way to address the lack of uniformity in definitions and reporting. A new Schedule H, Hospitals, is part of the recently released discussion draft of that form.
In addition, the hospitals were questioned on how they set and report executive compensation. Additional information will be made available as the IRS completes its analysis of that component of the project.
Related item:

Interim hospital report and other resources

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IR-2007-130, July 16, 2007
WASHINGTON — The Internal Revenue Service will simplify the signature process for electronically filed individual income tax returns submitted by tax practitioners. The simplification eliminates the need for a paper signature document to be sent to the IRS in support of electronically filed tax returns.
Beginning with the 2008 filing season, tax practitioners can e-file individual income tax returns only if the returns are signed electronically using one of two methods: either a Self-Select Personal Identification Number (PIN) or a Practitioner PIN. A Self-Select PIN allows taxpayers to electronically sign their e-filed return by selecting a five-digit PIN. A Practitioner PIN is used when a taxpayer authorizes an Electronic Return Originator (ERO) to input an electronic signature on behalf of the taxpayer.
Practitioner PINs require the use of Form 8879PDF, IRS e-file Signature Authorization, which is retained by the ERO.
“Nearly 90 percent of tax professionals already use electronic signatures to sign returns,” Acting IRS Commissioner Kevin M. Brown said. “It’s the right time to take the next step toward truly paperless filing.”
Out of some 55 million e-filed returns that have come from tax professionals this year, more than 49 million used the Self-Select PIN or the Practitioner PIN. Overall, more than 77 million individual tax returns have been e-filed so far this year.
The change will simplify tracking, verification and follow-up on the paper signature documents, which were required for tax returns that did not use an electronic signature.
Tax practitioners will no longer submit a paper signature for e-filed returns by using Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return. Instead, a newly designed Form 8453 will be used to transmit supporting paper documents that are required to be submitted to the IRS with e-filed returns. The new Form 8453 will be released later for use during the 2008 filing season.
Related Item: Q&As for New Electronic Signature Requirement for Tax Practitioners
 
 
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IR-2007-129, July 12, 2007
WASHINGTON — The Internal Revenue Service today announced that it began mailing educational letters this month to more than 650,000 small tax-exempt organizations that may be required to submit a new annual notice, Form 990-N, “Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ.”
IRS expects to mail the letters over a period of several months, finishing in December.
With the enactment of the Pension Protection Act of 2006 (PPA), the majority of small tax-exempt organizations are now required to submit the e-Postcard. Previously, tax-exempt organizations with gross receipts of $25,000 or less were not required to submit information returns. The first e-Postcards are due in calendar year 2008. The IRS intends to have an option available for free electronic submission of the e-Postcard.
“We’re sending these educational letters to all the small exempt organizations in our records because we want to make sure they all know about the new requirement,” said Lois G. Lerner, director of the IRS Exempt Organizations division. “The new e-Postcard reporting requirement is simple and straightforward, but organizations shouldn’t ignore it, or they risk losing their tax-exempt status.”
Any organization that fails to meet its annual reporting requirement for three consecutive years automatically loses its tax-exempt status under the new law. An organization that wants to regain its exempt status will then have to reapply for recognition as a tax-exempt organization.
Short, Easy, Free and Electronic
“The IRS calls the new form an e-Postcard because it is short, easy and electronic,” Lerner said. “And organizations will be able to submit it free of charge.”
The e-Postcard requires small organizations to provide a legal name and mailing address, any other names used, a Web address if one exists, the name and address of a principal officer and a statement confirming the organization’s annual gross receipts are normally $25,000 or less.
In addition to sending out educational letters, IRS is encouraging everyone –– individual volunteers, tax practitioners and larger organizations –– to spread the word about the new e-Postcard reporting requirement.
“People do a lot to help their communities by volunteering their time and money to local charities. We're asking them to also offer a helping hand by making sure that charities know about the law change," Lerner said. "We don’t want those organizations to lose their tax-exempt status because they didn’t know about the new reporting requirement.” 
The IRS is developing a free reporting system for the e-Postcard and an application to make the information available to the public on IRS.gov. Information about these systems will be announced as soon as it becomes available.
Further details, including frequently asked questions and a copy of the educational letterPDF, are available in the charities and non-profits section of IRS.gov.
IR-2007-128, July 12, 2007
WASHINGTON — The Internal Revenue Service will add three excise tax forms this year to the ever-expanding list of federal tax returns and schedules that can be filed electronically.
“Electronic filing is a key component to modernizing our tax system,” IRS Acting Commissioner Kevin M. Brown said. “Expanding e-file opportunities to include excise tax returns will help improve service to taxpayers using these forms.”
The 2007 tax filing season set a number of electronic records, highlighted by more than 77 million electronically-filed individual tax returns.
IRS expects to receive the first electronically-filed excise tax return this summer, when Form 2290, Heavy Highway Vehicle Use Tax Return, becomes the first available excise tax return that can be e-filed. Last year, more than 575,000 Forms 2290 were filed with the IRS.
As the IRS begins implementation of electronic filing for excise tax returns later this year, taxpayers may continue to file paper Forms 2290, including those reporting 25 or more vehicles. IRS will issue further guidance regarding the applicable tax code section, IRC section 4481(e).
Form 720, Quarterly Federal Excise Tax Return, and Form 8849, Claim for Refund of Excise Taxes, will be available to e-file later this year.
Additional information about Electronic Excise is available.
Related Items:

Electronic Excise


Form 2290PDF


Form 720PDF


Form 8849PDF

 
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IR-2007-126, July 6, 2007
WASHINGTON — The Internal Revenue Service has acknowledged the certification by Mazda Motor of America, Inc., that several of its Model Year 2008 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles.
The credit amount for the certified 2008 model year hybrid vehicles are:
Mazda Tribute 2WD Hybrid — $3,000
Mazda Tribute 4WD Hybrid — $2,200
Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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IR-2007-125, July 5, 2007
WASHINGTON — The Internal Revenue Service today announced a redesigned Form 8857, Request for Innocent Spouse Relief, that will help reduce follow-up questions and reduce the burden on taxpayers.
The form will ask more questions initially, but collecting critical information early in the process will mean faster processing of the request. Previously, Form 12510, Questionnaire for the Requesting Spouse, was separate from Form 8857.  The redesign will combine and streamline the two forms. The redesigned form will be easier to understand and complete and will help educate taxpayers about the process.
The new design will eliminate an estimated 30,000 follow-up letters annually. This will result in reduced burden, quicker responses to taxpayers and less cost to the government. The revisions were based on suggestions from an IRS process improvement team led by the Office of Taxpayer Burden Reduction.
When a taxpayer files a joint return, both spouses are jointly and individually responsible for the tax. Innocent Spouse relief provides an opportunity for a spouse to be relieved from the joint debt under certain circumstances. If a taxpayer believes that only his or her spouse or former spouse should be responsible for the tax, the taxpayer can request relief from the tax liability. Related Items:
Form 8857PDF, Request for Innocent Spouse Relief
Tax Information for Innocent Spouses
 
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IR-2007-151, August 28, 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of American Honda Motor Company, Inc., qualified vehicles may continue to claim the Alternative Motor Vehicle Credit.
The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Honda sold 6,518 qualifying vehicles to retail dealers in the quarter ending  June 30 2007.  This brings the cumulative number of qualified Honda hybrid vehicles sold as of June 30, 2007, to 58,872.
The credit amount and make and model of qualified vehicles sold are:
Honda Accord Hybrid Model Year 2005                                        $650
Honda Accord Hybrid, Model Year 2007                                       $1,300
Honda Accord Hybrid Navi Model Year 2007                               $1,300
Honda Civic Hybrid Model Year 2007                                            $2,100

Original purchasers of these vehicles may claim the full amount of the credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
 
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IR-2007-150, Aug. 29, 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of qualified General Motors Corp. hybrid vehicles may continue to claim the Alternative Motor Vehicle Credit.  
The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. GMC sold 969 qualifying vehicles to retail dealers in the quarter ending June 30, 2007. This brings the cumulative number of qualified GM hybrid vehicles sold to 9,454.
The credit amount and make and model of qualified vehicles sold are:
Chevrolet Silverado Hybrid 2WD, Model Years 2006 and 2007      $250
Chevrolet Silverado Hybrid 4WD, Model Years 2006 and 2007      $650
GMC Sierra Hybrid 2WD, Model Years 2006 and 2007                 $250
GMC Sierra Hybrid 4WD, Model Years 2006 and 2007                 $650
Saturn Vue Green Line, Model Year 2007                                       $650
Saturn Aura Hybrid, Model Year 2007                                            $1,300
Purchasers of GMC’s qualified vehicles may continue to rely on the certifications concerning the vehicles’ qualification for the credit.
Original purchasers of these vehicles may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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IR-2007-147, August 23, 2007
 
WASHINGTON — The Internal Revenue Service announced that purchasers of qualified Nissan North America Inc. vehicles may continue to claim the Alternative Motor Vehicle Credit.
The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Nissan sold 3,128 qualifying vehicles to retail dealers in the quarter ending June 30, 2007.   This brings the total number of qualified hybrid vehicles sold to 5,222.
The allowable credit amount for the 2007 Altima Hybrid — Nissan’s only certified hybrid vehicle — is $2,350.
Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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IR-2007-146, August 23, 2007
WASHINGTON — As the Sept. 17 deadline approaches for calendar year filers of corporate returns who filed for extensions, the IRS urges certain corporate filers to be aware of their obligation to file electronically.
“We have seen significant increases in the number of electronically filed corporate returns,” said LMSB Commissioner Deborah M. Nolan. “Many large and mid-size corporations are required to e-file, but many more corporations are e-filing voluntarily. Software and e-filing support services have become readily available to all corporations that want to transition their tax filing from paper to electronic.”
This is the first year that certain “mid-size” corporations, those with assets between $10 million and $50 million, are required to electronically file their Forms 1120 or 1120S. As a result, about 12,000 mid-size corporations have successfully made the transition from filing paper returns to filing electronic returns so far this year.
The requirement to e-file now covers all corporations with assets over $10 million that file 250 or more returns, such as Forms W-2 and 1099, annually. Last year, the requirement started for certain “large” corporations, those with assets over $50 million.  About 15,000 large corporations e-filed last year. So far this year, 8,000 large corporations have e-filed. The IRS expects that, as in past years, many large and mid-size corporations will file in early September to meet the Sept. 17 extended filing deadline.
Although small corporations, those with assets less than $10 million, are not required to e-file, almost 625,000 have done so this year so far, compared to about 400,000 at this time last year.
“E-filing continues to bring efficiencies to the IRS by making data quickly available to identify issues that need resolution,” said Elvin Hedgpeth, Director, Treaty Administration and International Coordination, who is responsible for the electronic filing of large and mid-size corporations. “Many corporations are seeing the long range advantages of incorporating their tax filing into the electronic data environment that includes their tax and financial accounting.” 
The growth in the area of corporate e-filing is the result of collaboration with corporate practitioner and technology stakeholder groups ensuring that systems were established to meet their e-filing needs and requirements.
Related Items:e-file for Large and Mid-Size Corporations
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IR-2007-143, Aug. 14, 2007
WASHINGTON — The Treasury Department and the Internal Revenue Service today issued two notices that identify as transactions of interest certain transactions involving “toggling” grantor trusts and certain transactions involving contributions of a successor member interest in a limited liability company.
Recently released final regulations about the disclosure of reportable transactions include the new transaction of interest category as one of the reportable transactions subject to disclosure.
"These are the first two transactions of interest we have published under the new regulatory scheme," said IRS Chief Counsel Don Korb. "Hopefully, the notices released today will give taxpayers and practitioners a better idea of the types of transactions that we will be identifying as transactions of interest in the future."
“Toggling” grantor trust transactions are utilized by grantors of these trusts in an attempt to avoid recognizing gain or to claim a tax loss greater than any actual economic loss by purportedly terminating and then reestablishing the grantor status of the trust. These grantor trust transactions usually occur within a short period of time (typically within 30 days).
Transactions involving contributions of a successor member interest are utilized by persons to claim charitable contributions that may be excessive.  These transactions arise when a taxpayer acquires a successor member interest, directly or indirectly, in real property, transfers the interest to a tax-exempt organization, and claims a charitable contribution deduction that is significantly higher than the amount that the taxpayer paid for the interest. 
In designating both transactions as transactions of interest, Treasury and the IRS believe both transactions have the potential for abuse, but lack sufficient information to determine whether the transactions should be identified specifically as tax avoidance transactions. Treasury and the IRS may take one or more future actions, including designating the transactions as listed transactions, or providing a new category of reportable transaction.
The notices also alert persons involved with these transactions of interest to certain responsibilities that may arise from their involvement.
Related Items:

Notice 2007-72PDF, Transaction of Interest – Contribution of Successor Member Interest


Notice 2007-73PDF, Transaction of Interest – Toggling Grantor Trust

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IR-2007-142, Aug. 7, 2007
WASHINGTON — Moving to clear up confusion about a recent tax law change, the Internal Revenue Service today reassured teachers and other school employees that new deferred-compensation rules will not affect the way their pay is taxed during the upcoming school year.
Recently, the IRS has received inquiries from teachers who had been told that they had to make certain decisions about their pay this month or risk severe penalties. At issue is a 2004 law change that applies to people who decide to defer compensation from one year to a future year. In April, the Treasury Department and the IRS issued final rules implementing this law change.
Under the 2004 law, when teachers and other employees are given an annualization election – that is, they are allowed to choose between being paid only during the school year and being paid over a 12-month period – and they choose the 12-month period, they are deferring part of their income from one year to the next. For instance, a teacher who chooses to get paid over a 12-month period, running from August of one year through July of the next year, rather than over the August to May school year, falls under this law.
The IRS clarified that the new rules do not require school districts to offer teachers an annualization election. Thus, school districts that have not been offering teachers this election are not required to start.
School districts that offer annualization elections may have to make some changes in their procedures. The IRS announced that the new deferred-compensation rules will not be applied to annualization elections for school years beginning before Jan. 1, 2008, so school districts and teachers will have time to make any changes that are needed.
A list of Frequently Asked Questions contains more information.
IRS News Service
IR-2007-141, Aug. 6, 2007
WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit controversial or frequently disputed tax issues to the Industry Issue Resolution (IIR) Program.
The purpose of the IIR program is to clarify and recommend guidance that resolves an issue and benefits both taxpayers and the IRS by reducing the time and expense of resolving the issue through case-by-case tax examinations. Since the program began in 2000, there have been 89 submissions, of which 25 resulted in determinations that taxpayers can rely on.
While business associations and business taxpayers may submit tax issues for resolution at any time, in order to be considered during the fall review, submissions must be received by Aug. 31, 2007.
Business issues selected for consideration generally have two or more of the following characteristics:

When assessing a common factual situation, interpretation of the tax regulations is uncertain.
	 


This uncertainty results in frequent, and often repetitive, examinations of the same issue among significant numbers of taxpayers.
	 


The uncertainty results in undue taxpayer burden.
	 


The issue is significant and affects a large number of taxpayers, either within an industry or across industry lines.
	 


The issue requires extensive factual development, and an understanding of industry practices and views of the issue would assist the IRS in determining proper and consistent tax treatment for the future.

Although there is no set format for submitting an issue for review, there are specific data that need to be included in the submission. The IIR project submission procedures are available in Revenue Procedure 2003-36PDF. Interested parties should submit issues by e-mail to IIR@IRS.GOV.
Alternatively, submissions may be mailed or faxed to:

Internal Revenue Service, Office of Prefiling and Technical Services
Large and Mid-Size Business Division LM: PFT
Mint Building 3rd Floor M3-420
1111 Constitution Avenue NW
Washington, DC 20224
Fax: 202-283-8406

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