etrent17/irs-articles huggingface dataset:
Note : On April 6, 2016, Revenue Procedure 2003-36 was replaced with Revenue Procedure 2016-19.
IR-2009-18, March 5, 2009
WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program tax issues for resolution involving a controversy, a dispute or an unnecessary burden on business taxpayers.
Though submissions can be made at anytime for consideration in the IIR program, submitted issues received by March 31, 2009, will be considered for acceptance in April and, if accepted, included on the Treasury/IRS Priority Guidance List.

The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers.
Recent submissions accepted into the IIR program include:

Technical Terminations of publicly traded partnerships.

Guidance issued as a result of the IIR program includes:

Auto Last In First Out - for automobile wholesalers, manufacturers and dealers regarding the proper treatment of the dollar-value, LIFO inventory method for pooling purposes of crossover vehicles, which have characteristics of trucks and cars. (Revenue Procedure 2008-33)
Valuation of Parts Inventory by Heavy Equipment Distributors (Revenue Procedure 2006-14)
Clarification regarding circumstances when facsimile signatures may be used to sign employment tax forms. (Revenue Procedure 2005-39)
Explanation of the circumstances under which insurance companies that make incentive payments to health care providers will be permitted to include those payments in unpaid losses. The revenue procedure also provides procedures under which a taxpayer may obtain automatic consent of the Commissioner to change their accounting method for such payments. (Revenue Procedure 2004-41)

IIR project selections are based on the criteria set forth in Revenue_Procedure_2003-36.   For each issue selected, a multi-functional team consisting of IRS, Chief Counsel, and Treasury personnel will be assembled. The team will gather and analyze the relevant facts from industry groups and taxpayers and, wherever possible, recommend guidance. This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations.
Requests for guidance on tax issues under the IIR program can be submitted at any time to IIR@irs.gov. Submissions received are reviewed semi-annually with selections next being made from issues submitted by March 31, 2009.
IR-2009-46, April 30, 2009
WASHINGTON — The Internal Revenue Service announced today a record 90 million tax returns were filed electronically this year, led by a big increase in people using home computers.
For the first time, more than 30 million individual income tax returns were filed from home computers. By April 24, the IRS had accepted 31.2 million returns filed from home computers, up 19.3 percent from the same time last year.
IRS e-file broke the 90 million mark this year. By April 24, the IRS had accepted 90.6 million income tax returns through e-file, up almost 6 percent compared to the same time last year.
“E-file is a great option for taxpayers, and this year’s record is another sign people enjoy the speed and accuracy of e-file,” said IRS Commissioner Doug Shulman. “We remind taxpayers with extensions who haven’t filed yet that they can still take advantage of e-file.”
A higher percentage of the population is choosing to e-file this year. As of April 24, almost 70 percent of individuals chose to e-file their tax returns, compared to 61 percent for the same time last year. The IRS will continue to accept income tax returns through IRS e-file and Free File until Oct. 15.
IRS e-file is popular because it’s fast, safe and accurate. An electronically prepared and filed return has an error rate of less than 1 percent, compared to an error rate of about 20 percent for a paper prepared return.
People can receive a refund in as little as 10 days if they use electronic filing and direct deposit. Also, people who owe can also pay electronically by debiting their financial account or using a credit card.
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2009 FILING SEASON STATISTICS


Cumulative through the weeks ending 4/25/08 and 4/24/09


Individual Income Tax Returns


2008


2009


% Change


Total Receipts


139,928,000


131,543,000


-6.0%


Total Processed


119,100,000


117,014,000


-1.8%


 


 


 


 


E-filing Receipts:


 


 


 


TOTAL


85,606,000


90,639,000


5.9%


Tax Professionals


59,444,000


59,439,000


-0.01%


Self-prepared


26,162,000


31,200,000


19.3%


 


 


 


 


Web Usage:


 


 


 


Visits to IRS.gov


168,069,815


190,905,950


13.6%


 


 


 


 


Total Refunds:


 


 


 


Number


93,183,000


96,673,000


3.7%


Amount


$220.958


Billion


$259.348


Billion


17.4%


Average refund


$2,371


$2,683


13.1%


 


 


 


 


Direct Deposit Refunds:


 


 


 


Number


62,795,000


68,646,000


9.3%


Amount


$168.847


Billion


$202.395


Billion


19.9%


Average refund


$2,689


$2,948


9.7%
Updated 11/13/09 to add Questions and AnswersUpdated 11/01/09 to add links
IR-2009-45, April 24, 2009
WASHINGTON — Plug-in electric vehicles using certain types of batteries may qualify for a new tax credit if purchased this year, the Internal Revenue Service said today.
The Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA) created two new tax credits for various types of electric vehicles, which may include what are commonly referred to as neighborhood electric vehicles.
ARRA creates a tax credit for low-speed or two- or three-wheel electric vehicles, such as motor scooters, purchased after Feb. 17, 2009, and before Jan. 1, 2012. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500. To qualify, a vehicle must be either a low-speed vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 4 kilowatt hours or be a two- or three-wheeled vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 2.5 kilowatt hours.
EESA created a tax credit for vehicles that have at least four wheels and draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity. For 2009, the minimum credit is $2,500 and the credit tops out at $7,500 to $15,000, depending on the weight of the vehicle and the capacity of the battery.
During 2009, low-speed, four-wheeled vehicles manufactured primarily for use on public streets, roads and highways (neighborhood electric vehicles) may qualify both for the EESA credit and, if purchased after February 17, 2009, for the ARRA credit for low-speed electric vehicles. A taxpayer may not claim both credits for the same vehicle. Vehicles manufactured primarily for off-road use, such as for use on a golf course, do not qualify for either credit.
The Internal Revenue Service is working on guidance regarding certification procedures for both of these credits.
Related Items:
Questions and Answers
Notice 2009-54PDF
Notice 2009-58PDF
List of Qualified Vehicles
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IR-2009-43, April 21, 2009
WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the Internal Revenue Service has awarded almost $9.5 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2009 grant cycle.
LITCs are organizations that represent low income taxpayers in federal tax controversies with the IRS for free or for a nominal charge, provide tax education and outreach for taxpayers who speak English as a second language, or both.
Through the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations. For the 2009 grant cycle –– Jan. 1, 2009, through Dec. 31, 2009 –– the IRS awarded grants to 162 organizations. LITCs, their employees and volunteers are independent of the federal government.
Questions about the LITC Program can be addressed to the LITC Program Office at (202) 622-4711 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov. IRS Publication 4134, Low Income Taxpayer Clinic List, provides information on the LITCs in each geographic area and the languages each clinic serves in addition to English. It is available on this Web site, irs.gov, and at local IRS offices.
Organizations Receiving LITC Grants for the 2009 CyclePDF
IR-2009-42, April 16, 2009
WASHINGTON — The tax credit for hybrid passenger automobiles and light trucks manufactured by Ford Motor Company has begun to phase out for purchases made after March 31, 2009.
Taxpayers may claim the full amount of the credit only on purchases made before April 1, 2009, because the total number of vehicles sold reached the 60,000 vehicle threshold in the last quarter of 2008. The cumulative sales of qualified Ford hybrid vehicles sold from the period of Jan. 1, 2006, to Dec. 31, 2008 is 66,157.
For vehicles purchased for use or lease on or after April 1, 2009, and on or before Sept. 30, 2009, the credit is 50 percent of the full amount. For vehicles purchased for use or lease on or after Oct. 1, 2009, and on or before March 31, 2010, the credit is 25 percent of the full amount. For vehicles purchased for use or lease on or after April 1, 2010, no credit is allowable.
The full credit amount for vehicle purchases made prior to April 1, 2009 is:
2005, 2006, 2007 Ford Escape 2WD, $2,600;
2008, 2009 Ford Escape 2WD, $3,000;
2005, 2006, 2007, 2009 Ford Escape 4WD, $1,950;
2008 Ford Escape 4WD, $2,200;
2010 Ford Fusion, $3,400;
2008, 2009 Mercury Mariner 2WD, $3,000;
2006, 2007, 2009 Mercury Mariner 4WD, $1,950;
2008 Mercury Mariner 4WD, $2,200;
2010 Mercury Milan, $3,400
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IR-2009-38, April 7, 2009
WASHINGTON –– Internal Revenue Service Acting Chief Counsel Clarissa C. Potter has selected Jonathan Forman as the 2009-2010 Professor in Residence.  
The IRS Professor in Residence reports directly to the Chief Counsel and provides advice and assistance on a wide array of legal issues within the scope of his or her expertise.
"We are delighted to have Professor Forman join us this fall to share his ideas and experience with our attorneys,” said Potter. “His expertise in many areas, including pension plans and employee benefits, will be extremely beneficial to the office.” 
The current professor in residence David Hasen’s term will conclude on July 27, 2009. Forman will serve a nine-month term starting Sept. 1.
Forman since 1985 has been a professor at the University of Oklahoma College of Law where he currently holds the Alfred P. Murrah Professorship. He is vice chair of the Oklahoma Public Employees Retirement System (OPERS). From 2001-2003, he served as a member of the Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT).
Forman has written extensively about employee benefits, the federal budget and the earned income tax credit, including over 250 publications, such as Making America Work (Urban Institute Press 2006).
Prior to joining the Oklahoma faculty, Forman clerked for Judge Robert J. Yock at the U.S. Court of Claims in Washington. He has been a trial attorney in the U.S. Department of Justice Tax Division and served as tax counsel to Sen. Daniel Patrick Moynihan. Forman holds a J.D. from the University of Michigan, an M.A. in economics from the George Washington University, an M.A. in psychology from the University of Iowa, and a B.A. from Northwestern University.
The IRS Chief Counsel’s Professor in Residence program provides some of the nation’s top legal academicians the opportunity to contribute to the development of legal tax policy and administration.
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IR-2009-37, April 7, 2009
WASHINGTON — Credit or debit card convenience fees charged for paying federal individual income taxes electronically are deductible for some taxpayers who itemize, the Internal Revenue Service announced today.
Federal law bars the IRS from paying any fees associated with these credit or debit transactions. Card processors normally charge taxpayers for convenience fees when they use their credit or debit card to pay taxes. Fees vary but average about 2.5 percent of the tax payment.
In reassessing a previous position, the IRS decided that the convenience fees associated with the payment of federal tax, including payment of estimated tax, can be included as a miscellaneous itemized deduction. However, only those miscellaneous expenses that exceeded 2 percent of the taxpayer’s adjusted gross income can be deducted.
Not everyone who pays the fees will be able to deduct them. Taxpayers first must be eligible to file a Form 1040 Schedule A to itemize their expenses. And, taxpayers must have enough miscellaneous expenses to exceed the 2 percent threshold. These expenses include items such as tax preparation costs, job search expenses and unreimbursed employee expenses.
For details on claiming miscellaneous deductions and figuring the 2 percent limit, see Publication 529.The fees are deductible in the tax year they occur.  For example, fees charged to payments made during 2009 can be claimed on the 2009 return filed next year.
Most individuals still pay their federal tax obligations by check, but last year more than 4 million taxpayers electronically paid their taxes.
There are free options available. Taxpayers can have funds electronically withdrawn from their bank accounts or use the Electronic Federal Tax Payment System (EFTPS).  Payments can be made either on-line or by phone, 24 hours a day, 7 days a week. Further details on these options are in the instructions for Form 1040 and under Electronic Payment Options for Individuals on this web site.
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IR-2009-35, April 7, 2009
WASHINGTON — An enrolled agent was suspended from practice before the Internal Revenue Service by the Office of Professional Responsibility on April 6 for not performing services related to offers in compromise (OIC) paid for by taxpayers. 
Enrolled Agent Richard Hargus worked in California for two separate, now defunct companies that specialized in tax resolution services, which included submitting OICs to the IRS.
Multiple taxpayers paid the companies for Hargus to resolve their income tax liabilities through the OIC program.  In many instances, the taxpayers either did not receive the services for which they paid or received very little assistance with resolving their tax issues.   
An offer in compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.  Absent special circumstances, if a taxpayer has the ability to fully pay the tax liability in a lump sum or through installment agreement payments, an offer in compromise generally will not be accepted.
Tax practitioners are subject to the regulations issued under Treasury Department Circular 230.  Specifically Circular 230 provides that a practitioner must exercise due diligence in preparing or assisting in the preparation of, approving, and filing of tax returns, documents, affidavits, and other papers relating to Internal Revenue Service matters. 
Following an investigation by the IRS, Hargus admitted a lack of due diligence in these taxpayers’ situations.  The IRS suspended Hargus from practice for a period of time lasting at least 18 months.
The IRS is taking a closer look at tax resolution companies, and is also litigating known OIC abuses to ensure that tax professionals fulfill their legal and ethical obligations to their clients in dealing with IRS tax matters.
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IR-2009-34, April 6, 2009
WASHINGTON — The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee. The deadline for submitting applications is May 29, 2009.
Established in 1991, IRPAC provides recommendations to IRS leadership on a wide range of information reporting and administration issues. The committee presents a report to the IRS commissioner each year at a public meeting in the fall.
To effectively advise the IRS commissioner and executives, members are drawn from substantially diverse backgrounds. Members include representatives of the taxpaying public, the tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, insurance companies, foreign financial institutions and the payroll community.
"Running top notch information reporting programs is an important priority for the IRS” said IRS Commissioner Doug Shulman. “The group's broad knowledge is incredibly valuable to the IRS and I look forward to continuing the dialogue with them."
IRPAC comprises up to 35 members who are appointed to three-year terms by the commissioner. Each year, approximately one-third of the membership terms expire. Nominations are currently being accepted for up to six appointments that begin January 2010.
More information, including application packages, is available on the Tax Professional’s Page on this Web site. Questions about the nomination process can be sent to the following e-mail address: *public_liaison@irs.gov.
Related links:

ApplicationPDF


Tax Check WaiverPDF

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IR-2009-33, April 3, 2009
WASHINGTON — The Internal Revenue Service today issued guidance on the new Build America Bond program. This program allows state and local governments to issue taxable bonds for capital projects and to receive a new direct federal subsidy payment from the Treasury Department for a portion of their borrowing costs.
The American Recovery and Reinvestment Act of 2009 creates the new Build America Bond program, which authorizes state and local governments to issue Build America Bonds as taxable bonds in 2009 and 2010 to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. State and local governments receive a direct federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to 35 percent of the total coupon interest paid to investors.
This new program is intended to assist state and local governments in financing capital projects at lower borrowing costs and to stimulate the economy and create jobs. “These innovative bonds give state and local governments an important new tool to help finance public capital projects that will benefit communities in challenging times,” said IRS Commissioner Doug Shulman.
The IRS issued Notice 2009-26PDF, which provides guidance on Build America Bonds to enable state and local governments to begin using this program. This notice includes guidance on eligible types of projects and financings, initial implementation of the direct federal subsidy payment procedures, elections to use this program, and information reporting for this program. Certain guidance in this notice also applies to another type of Build America Bond in which a federal subsidy is delivered in the form of tax credits to investors instead of direct federal subsidy payments to state and local governments.
In addition, the IRS released a new form to claim the federal subsidy payment. Issuers can expect to receive requested payments within 45 days after the IRS receives new Form 8038-CPPDF, Return for Credit Payments to Issuers of Qualified Bonds.
Build America Bonds can be issued in 2009 and 2010. There is no volume limitation on the amount of eligible Build America Bonds that can be issued during this period.
Notice 2009-26 also solicits public comment on all aspects of the direct payment procedures for Build America Bonds. The notice will appear in Internal Revenue Bulletin 2009-16 dated April 20, 2009.
Related Items:

Notice 2009-30PDF, Qualified Zone Academy Bond Allocations for 2008 and 2009


Notice 2009-35PDF, Qualified School Construction Bond Allocations for 2009


Bond Provisions in ARRA

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IR-2009-32, April 2, 2009
WASHINGTON —Victims of severe flooding in Minnesota and North Dakota have an extra 30 days, until May 15, to file their 2008 individual tax returns and pay any taxes due, the Internal Revenue Service announced today.
Because the flooding has occurred within close proximity to April 15 –– the nation’s tax day and the most significant tax filing deadline of the year –– taxpayers and relief workers directly impacted by the flooding will have until midnight May 15 to file and make payments associated with their 2008 individual tax returns, otherwise due April 15, without incurring late filing or payment fees and interest.
This relief applies to flood victims in the following counties in Minnesota:

Clay, Kittson, Marshall, Norman, Polk, Traverse and Wilkin

and the following counties and Indian Reservations in North Dakota:

Adams, Barnes, Benson, Billings, Burleigh, Cass, Cavalier, Dickey, Dunn, Emmons, Foster, Grand Forks, Grant, Hettinger, Kidder, LaMoure, Logan, McIntosh, McKenzie, McLean, Mercer, Morton, Nelson, Oliver, Pembina, Ramsey, Ransom, Richland, Sargent, Sioux, Stark, Stutsman, Walsh, and Williams counties and Standing Rock and Spirit Lake Indian reservations

Affected taxpayers can mark paper tax returns with the words “severe storms, flooding.” Taxpayers who e-file their returns can use their software’s “disaster” feature, if available.
Relief workers without an address of record in the areas listed above need to call the IRS at 1-866-562-5227 and identify themselves to the IRS before they file and or make payment.
The IRS will continue to monitor the situation and will take further actions as necessary.
For further information, see Tax Relief in Disaster Situations.
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IR-2009-56, May 29, 2009
WASHINGTON — The IRS today announced the availability of the spring 2009 issue of the Statistics of Income Bulletin, which features information on high-income individual income tax returns filed for tax year 2006.
For tax year 2006, taxpayers filed nearly 4.1 million returns with adjusted gross income of $200,000 or more, up from 3.6 million returns in the prior year. These high-income returns represent almost 3.0 percent of all returns filed for 2006.
 
The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis.  Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers.  This issue of the SOI Bulletin also includes articles on the following subjects:

Foreign Earned Income Exclusion: In tax year 2006, about 335,000 U.S. taxpayers living abroad reported approximately $36.7 billion in foreign-earned income and claimed nearly $18.4 billion in exclusions from income. 


Possessions Tax Credit: For tax year 2005, 102 U.S. corporations claimed the possessions tax credit for income derived from business operations in U.S. possessions.  The total credit claimed was just less than $1 billion.  Most corporations that claimed a possessions tax credit did so for operations in Puerto Rico, and those corporations claimed more than 98 percent of the total credit amount.


Qualified Zone Academy Credit: Financial institutions claimed total tax credits of $135 million under the Qualified Zone Academy Bond program in tax year 2005, up from $117 million in 2004. 


Filings of Individual Income Tax Returns: Taxpayers filed 143.0 million individual income tax returns for tax year 2007, an increase of 3.3 percent from the 138.4 million returns filed for 2006.  Adjusted gross income increased 6.9 percent from 2006 to $8.5 trillion for 2007, and taxable income rose 6.8 percent to $5.9 trillion.  The alternative minimum tax increased 8.6 percent to $20.9 billion, while total income tax rose 6.5 percent to $1.1 trillion.

The Statistics of Income Bulletin is available at IRS.gov.  Copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
 
For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.
Related Item:
Historical Tables and Appendix
IR-2009-55, May 28, 2009
WASHINGTON — Businesses planning to claim the newly-expanded work opportunity tax credit (WOTC) for eligible unemployed veterans and unskilled younger workers hired during the first part of 2009 have until Aug. 17 to request the certification required for these workers, according to the Internal Revenue Service.
Newly-revised Form 8850PDF, now available on IRS.gov, is used by employers to request certification from their state workforce agency. The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and “disconnected youth” to the list of groups covered by the credit. Though eligible unemployed veterans and disconnected youth who begin work anytime during 2009 or 2010 may qualify a business for the credit, certification by the state workforce agency is required.
In general, an unemployed veteran is a person discharged or released from the military during the five years preceding the hiring date who received unemployment benefits for at least four weeks during the one-year period ending on the hiring date. A “disconnected youth” is a person age 16 to 24 on the hiring date who has not been regularly employed or attending school and who meets other requirements.
The WOTC offers tax savings to businesses that hire workers belonging to any of 12 targeted groups, including unemployed veterans and disconnected youth. The other 10 include people ages 18 to 39 living in designated communities in 43 states and the District of Columbia, Hurricane Katrina employees, recipients of various types of public assistance, and certain veterans, summer youth workers and ex-felons. The instructions for Form 8850PDF detail the requirements for each of these groups.
The certification requirement applies to all groups of workers except employees who were Hurricane Katrina victims. Normally, a business must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But under a special rule, businesses have until Aug. 17, 2009, to file this form for unemployed veterans and disconnected youth who begin work on or after Jan. 1, 2009 and before July 17, 2009. Notice 2009-28PDF, posted today on IRS.gov, and the instructions for Form 8850 provide details on this special rule.
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IR-2009-54, May 28, 2009
WASHINGTON — The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 2009, will remain the same. The rates will be: 

four (4) percent for overpayments [three (3) percent in the case of a corporation];


four (4) percent for underpayments;


six (6) percent for large corporate underpayments; and


one and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.  Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.  The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate during April 2009 to take effect May 1, 2009, based on daily compounding.
Revenue Ruling 2009-17PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2009-26, dated June 29, 2009.
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IR-2009-52, May 22, 2009
WASHINGTON — The Internal Revenue Service announced today that the 2010 Low Income Taxpayer Clinic (LITC) grant application process is now open.
“Low Income Taxpayer Clinics provide an incredibly important service to taxpayers who find themselves in need of assistance. These grants are a wise investment in ensuring that there is a safety net for those having trouble navigating the system,” said Doug Shulman, IRS Commissioner.
The LITC grant program is a federal program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Nina E. Olson. The LITC program serves individuals who have a problem with the IRS and whose income is below a certain level. LITCs also provide outreach and education to taxpayers who speak English as a second language. LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes and other issues for free or for a small fee. Many clinics provide multilingual information about taxpayer rights and responsibilities.
Under the LITC grant program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain low-income taxpayer clinics. The program is in its eleventh year and continues to expand. To date in 2009, the LITC Program Office has awarded LITC grants to 162 organizations in all 50 states, the District of Columbia, and Puerto Rico.
Examples of qualifying organizations include:

Clinical programs at accredited law, business or accounting schools, whose students represent low income taxpayers in tax disputes with the IRS, and


Organizations exempt from tax under Internal Revenue Code Section 501(a) that represent low-income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.

The application period for these grants will run through July 7, 2009. The grant will cover the 2010 grant cycle, from Jan. 1, 2010, through Dec. 31, 2010. Applications must be electronically filed, postmarked, sent by private delivery service, or hand delivered to the LITC Program Office in Washington, D.C. by July 7, 2009.
Copies of the 2010 Grant Application Package and Guidelines, IRS Publication 3319PDF (Rev. 5-2009), are available at /advocate. Applicants may also order application packages from the IRS Distribution Center by calling 1-800-829-3676. Applicants can also file electronically at www.grants.gov. Those applying electronically should use the Funding Number TREAS-GRANTS-052010-001.
Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (202) 622-4711, not a toll-free call, or by e-mail at LITCProgramOffice@irs.gov.
For more information about the clinics receiving funding in 2009, see Publication 4134, Low Income Taxpayer Clinic List. This publication is available at www.irs.gov, by calling 1-800-TAX-FORM, or at your local IRS office.
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IR-2009-49, May 6, 2009
WASHINGTON — The Internal Revenue Service today reminded many small tax-exempt organizations to file their annual electronic informational return with the IRS by the May 15 deadline.
This is the second year of the new requirement for tax-exempt organizations whose gross annual receipts are normally $25,000 or less to file Form 990-N also known as e-Postcards. The process is fast and easy.
The May 15 deadline applies to all small organizations whose tax year ends on Dec. 31. Organizations whose tax year is different from the calendar year must file the e-Postcard by the 15th day of the 5th month after the close of their tax year.
“The leadership of these small organizations tends to change rather frequently, so it is important to remind everyone of this filing requirement,” said Lois Lerner, director of the IRS’s Exempt Organizations division. “It’s important for an organization to file. If it fails to do so for three consecutive years, it will automatically lose its tax-exempt status.”
The e-Postcard is a simple, Internet-based form that asks a few identifying questions about the organization. The e-Postcard must be filed online; there is no paper option.
More information and a link to the e-Postcard can be found on this Web site.
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March 5, 2010 — The last IRS-sponsored Tax Talk Today program aired on Oct. 6, 2009.  
IR-2009-48, May 4, 2009
WASHINGTON — The Internal Revenue Service’s Tax Talk Today will feature a special 100-minute program on Tuesday, May 12 at 2 p.m. to discuss current estate, gift and employment tax issues.
The IRS estate, gift and employment tax functions cover a wide variety of issues and affect a broad range of taxpayers both directly and indirectly. Two continuing education credits will be offered for the price of one during May’s program.
Panelists include: Mary Gorman, IRS assistant division counsel (Prefiling); Joseph Tiberio, IRS Employment Tax Policy; James Hogan, IRS Estate and Gift; Lisa Piehl, IRS Estate and Gift; Kathy Harrison-Suits, enrolled agent, Summit Capital Advisors; and Daniel T. Moore, CPA, senior accountant and chief financial officer, Moore Agency, Inc. The moderator is Les Witmer.
Sponsored by the IRS, Tax Talk Today is a free, live, interactive webcast aimed at educating tax professionals on the most contemporary and complex tax issues. Viewers are encouraged to submit questions during the live Webcast. Tax professionals in need of continuing education credits should select Continuing Education at the Web site for more information.
To access the webcast at no charge, viewers can register online at Tax Talk Today Web site. They can view Tax Talk Today with Windows Media Player and Real Player; both are free software that may already be installed on your computer. If not, click the link for  installing system software  to view Internet Broadcast.
Subscribers can view live Webcasts as well as archived programs; listen to audio podcasts or read show transcripts. Subscribers also can order audio and video recordings. A transcript and audio of the March 10, 2009 Webcast, “Surviving the IRS Audit”, is now available, as well as an audio podcast. Archives are available through Dec. 31, 2009.
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IR-2009-47, May 1, 2009
WASHINGTON — The Internal Revenue Service today announced it seeks new members for the Internal Revenue Service Advisory Council (IRSAC), which provides a forum for IRS officials to discuss key areas of tax administration with a broad range of tax and other relevant professionals.
IRSAC members submit a report to the IRS Commissioner annually at a public meeting in the fall.
“IRSAC members bring a wealth of experience to the table. Their valuable and timely input is particularly important to help tax administration during these challenging times,” said Doug Shulman, IRS Commissioner.
IRSAC has eight open seats for three-year terms starting in January 2010. Applications will be accepted from May 1 to June 16, 2009. IRSAC members are appointed by the Commissioner.
IRSAC members represent a cross section of the tax community. Members are balanced to include tax attorneys, certified public accountants, enrolled agents, appraisers, as well as small and large small business representatives, among others. IRSAC can have up to 35 members.
All applicants must complete an application and submit to a screening process.
More information and the application for IRSAC can be found on the Tax Professional’s Page of IRS.gov.
Questions about the application process can be sent to *public_liaison@irs.gov.
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IR-2009-62, June 24, 2009
WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) presented its 2009 Annual Report to Congress. The ETAAC provides feedback on the development and implementation of the Internal Revenue Service’s electronic tax administration strategy.
The report includes 10 recommendations to advance the use of electronic filing. For example, the report recommends the IRS require all tax preparers who file at least 200 returns a year to use e-file. The report also calls for continued modernization of IRS systems as well as collaboration between the IRS and industry regarding software standards.
“ETAAC plays a significant role in IRS efforts to improve the taxpayer’s experience via e-file and the Internet,” said David Williams, director of Electronic Tax Administration. “ETAAC feedback helps the IRS shift more returns from paper to e-file, which is a top priority.”
The 14-member panel provides an organized public forum for discussion of electronic tax administration issues and the overriding goal that paperless filing should be the preferred and most-convenient method of filing tax and information returns.
"The IRS is making great progress on its strategic planning efforts toward reaching not only the 80 percent e-file goal established by Congress but also toward providing the next generation of electronic services for taxpayers, tax preparers and other stakeholders," said Chris Beach, ETAAC Chairman. "ETAAC looks forward to working with the IRS on helping to advance these important electronic tax administration opportunities."
ETAAC submits an annual progress report to Congress each June. The IRS Electronic Tax Administration created the ETAAC in 1998 as required by the IRS Restructuring and Reform Act of 1998. The report is the result of research and analysis as well as meetings with senior IRS executives.
Public comments on the report will be solicited via the Federal Register in the fall. The full report is available on this web site.
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IR-2009-61, June 22, 2009
WASHINGTON — With the 2009 hurricane season now underway, the Internal Revenue Service encourages individuals and businesses to safeguard themselves by taking a few simple steps.
Create a Backup Set of Records Electronically
Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.
Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies home, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.
Document Valuables
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584PDF, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.
Update Emergency Plans
Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
IRS Ready to Help
If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
Back copies of tax returns and all attachments, including Forms W-2, can be requested by filing Form 4506, Request for Copy of Tax Return.PDF Likewise, transcripts can be ordered using Form 4506-T, Request for Transcript of Tax ReturnPDF. Returns or transcripts can also be ordered by calling 1-800-829-1040.
There is no fee for a transcript or tax return copy for a taxpayer located in a federal disaster area qualifying for individual assistance. Taxpayers should put the assigned Disaster Designation in red ink at the top of the request form.    
Related Items:
Tax Relief in Disaster Situations

Frequently Asked Questions for Disaster Victims

Publication 583, Starting a Business and Keeping RecordsPDF
June 16, 2009
This month, the Internal Revenue Service asked for comments on ways to simplify compliance with rules related to employer-provided cellular telephones. The current law, which has been on the books for many years, is burdensome, poorly understood by taxpayers, and difficult for the IRS to administer consistently. Some have incorrectly implied that the IRS is "cracking down" on employee use of employer-provided cell phones. To the contrary, the IRS is attempting to simplify the rules and eliminate uncertainty for businesses and individuals.
Although some of the proposed changes would add clarity, the current law will inevitably leave widespread confusion among employees and businesses. Therefore, Secretary Geithner and I ask that Congress act to make clear that there will be no tax consequence to employers or employees for personal use of work-related devices such as cell phones provided by employers. The passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete.
IR-2009-60, June 10, 2009
WASHINGTON —The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.
The IRS and Treasury have determined that purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — can also qualify for the deduction.
The IRS said today that taxpayers who purchase a new motor vehicle in states that do not have state sales taxes are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee. According to the IRS, Congress intended for these fees or taxes to qualify for this special tax deduction.
“This special tax break is available for people purchasing a new car this year, and that can include people in states without a sales tax,” said IRS Commissioner Doug Shulman. “This means that more people can take advantage of this deduction when they file their tax returns next year.”
To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year.
The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.
The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return. The IRS reminded taxpayers the deduction may not be taken on 2008 returns.
Related Items


Sales Tax and Fee Deduction for New Vehicle Purchases




Car Sales and Excise Tax Deduction: Questions and Answers



IR-2009-30, Special Tax Break Available for New Car Purchases This Year

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IR-2009-59, June 10, 2009
WASHINGTON — As the Nationwide Tax Forums are about to begin, the IRS invites tax professionals and financial planners to make their reservations for one of six forums being held throughout the country. Those who sign up by the pre-registration date pay less than the full fee, a savings of $129.
The Nationwide Tax Forums are three-day events that provide tax professionals with the most up-to-date tax information on changes in the tax law and its administration at presentations 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 and workshops.
2009 Registration Fees, Dates and Locations
The cost of enrollment is $206 per person, per city for pre-registration and then $335 up to and including on-site registration. Pre-registration ends two weeks prior to the start of each forum.
 


Nationwide Tax Forums


Location


Dates


 Pre-Registration Deadline


Las Vegas


 July 7-9


June 23


San Diego


 July 14-16


June 30


Orlando, Fla.


August 4-6


July 21


New York


August 25-27


 August 11


Dallas


September 8-10


August 25


Atlanta


September 22-24


September 8


This year, 40 separate seminars and three workshops are being offered, each of which qualifies for CPE credit for enrolled agents and certified public accountants. Additionally, 17 of the 40 qualify for continuing education credit for certified financial planners, pending review and acceptance by the Certified Financial Planner Board.
Members of the following participating associations qualify for discounted enrollment costs:

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. Practitioners are invited to bring an active case to the forums to work with IRS personnel on site for resolution.
In a survey of 2008 attendees the forums received a 99 percent satisfaction rate. Attendees stated that their participation enabled them to offer greater technical expertise to meet their clients’ needs. 2009 marks the 19th year that the IRS has used these forums to help educate and interact with the tax professional community.
Those who would like to attend can register on line.
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IR-2009-58, June 5, 2009
WASHINGTON — Internal Revenue Service officials announced today that they would allow taxpayers to rely on the definition of a United States person as set forth in the prior instructions to the FBAR form when determining their filing requirement.
This announcement affects those preparing for the coming June 30, 2009 deadline. 
The IRS took this action to reduce burden after concerns and questions were raised regarding  the  new instructions issued last year on who must file the revised Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, or FBAR).
For this year, taxpayers and others can rely on the definition of a United States person included in the prior instruction: “United States Person The term “United States person” means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.”
All other requirements of the current version of the FBAR form and instructions (revised in October 2008) are still in effect.  The current version of the form must be used when filing an FBAR. This substitution affecting who must file the FBAR applies only to FBARs due on June 30, 2009.   The IRS will be following up with additional guidance on the requirement to file for future years.
For further information, please see attached Announcement 2009-51PDF.
Related Item:

Announcement 2009-51PDF

 
 
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