Monday, December 20, 2010

ACTION: efile Mandate Waiver Procedures

Announcement 2010-96 was released today to provide guidance on requesting hardship waivers from the new preparer e-file requirement.  Form 8944 is the necessary form and may be submitted at any time; however, notifications of approval or denial will not be made after final regulations and a final revenue procedure are issued in early 2011.  See: and
On a related note, draft Form 8948 (Preparer Explanation for Not Filing Electronically) has also been released.  See:
This new information will be added shortly to the e-file mandate page on,,id=223832,00.html
Please cascade this information to all tax professional  members  and other interested parties.
James R. Kinsey
Sr Stakeholder Liaison Specialist
Communication, Liaison & Disclosure
SB/SE Division
Work 408-817-6842
Fax 408-817-4601

Friday, December 17, 2010

Internal Revenue Service Webinar for Tax Professionals & Payroll Tax Cut


Internal Revenue Service Webinar for Tax Professionals


Collection Bankruptcy Overview

Presented by the Internal Revenue Service

Date: January 25, 2011


This FREE webinar is for:

               Tax Professionals

               Tax Practitioners

               Enrolled Agents


               Bankruptcy Attorneys



Learn about:

·                how IRS’ insolvency function processes bankruptcy cases,

·                how to properly notify IRS of a bankruptcy filing

·                how to order transcripts of tax returns through IRS e-Services,

·                how the IRS can collect taxes from exempt, excluded and abandoned property and

·                non-dischargeable tax debts in chapter 7 and chapter 13 bankruptcy cases.


Earn Continuing Professional Education credit

               Enrolled agents receive one CPE credit for participating for a minimum of 50 minutes from the start of the webinar.

               Other tax professionals may receive credit if the webinar meets your organization’s or state’s CPE requirements.

               To receive credit, you must attend the presentation offered on January 25, 2011. Register for the webinar using your e-mail address, and use the same e-mail address to log in to attend. This will confirm your attendance and generate your Certificate of Completion.

               *Only January 25, 2011, participants will receive certificates. If you do not need a certificate to obtain CPE credit, you may choose to view the archived version of the webinar after January 25, 2011.

               Look for your Certificate of Completion by e-mail approximately one week after the webinar. If you have met all requirements, you will receive your certificate automatically.


Register & Attend

·                Click on the link to register for the session






2 p.m.

1 p.m.


11 a.m.

Note: Time zones shown are standard time.



               Visit and search Webinars for information about other events.

               If you require special accommodations (for example, a larger-print on presentation materials), contact Brian Finn at

               If you experience difficulty viewing the event, please use the e-mail option on the event page or call 866-956-4770.

               This event will be archived for later viewing, approximately two weeks after the date of the event, on


Sponsored by: IRS Small Business/Self Employed Division


New Withholding Details Now Available on, and Notice 1036, Early Release Copies of the 2011 Percentage Method Tables for Income Tax Withholding.


news release graphic


Media Relations Office                                    Washington, D.C.                    Media Contact: 202.622.4000                                                                                    Public Contact: 800.829.1040



Payroll Tax Cut to Boost Take-Home Pay for Most Workers;

New Withholding Details Now Available on



IR-2010-124, Dec. 17, 2010


WASHINGTON The Internal Revenue Service today released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011.


Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.


The new law also maintains the income-tax rates that have been in effect in recent years.


Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011. Notice 1036, released today, contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on in a few days.


The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but not later than Jan. 31, 2011.

For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2011.


Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form.


As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. Publication 919, How Do I Adjust My Tax Withholding?, provides more information to workers on making changes to their tax withholding.



 James R. Kinsey
Sr Stakeholder Liaison Specialist
Communication, Liaison & Disclosure
SB/SE Division
Work 408-817-6842
Fax 408-817-4601

Monday, December 13, 2010

FW: IRS News 121310Events from Stakeholder Liaison - 13 December 2010.doc

Practitioner Group: 


Good afternoon, please share with your members and colleagues.  Select the blue links to see the full article.


Newsroom                                                                    December 13, 2010


Prepared Remarks of IRS Commissioner Doug Shulman before the 23RD Annual Institute on Current Issues in International Taxation, Washington, DC
IR-2010-122, Dec. 9, 2010 — IRS Commissioner Shulman delivers prepared remarks to the 23rd Annual Institute on Current Issues in International Taxation in Washington, DC.

IRS Releases Proposed Regulations that Would Reduce Enrolled Agent Fees
IR-2010-121, Dec. 7, 2010 — The IRS released proposed regulations that would reduce fees related to application and renewal for enrolled agents and enrolled retirement plan agents.

IRS Announces 2011 Standard Mileage Rates
IR-2010-119, Dec. 3, 2010 — Driving for business? In 2011, you may be able to claim 51 cents per mile according to IRS guidance issued today.

IRS Continues Efforts to Ensure Accurate Return Preparation; Reminds Tax Preparers to Sign Up for PTINs
IR-2010-118, Dec. 2, 2010 — The IRS started sending out more than 10,000 letters to return preparers to remind them of their obligation to prepare accurate tax returns.

IRS Helps Small Employers Claim New Health Care Tax Credit; Forms and Additional Guidance Now Available on Small Business Health Care Tax Credit
IR-2010-117, Dec. 2, 2010 — The IRS releases final guidance and a one-page form and instructions for small employers eligible to claim the new small business health care tax credit for the 2010 tax year.

Starting in 2011, Many Paid Preparers Must e-File Federal Income Tax Returns for Individuals, Estates and Trusts
IR-2010-116, Dec. 1, 2010 — The IRS details how paid tax return preparers can comply with a new law that requires them to electronically file certain tax returns.


IMRS Hot Topics, December 3, 2010

Continuing Education Requirements for Unenrolled Preparers Waived for First Year, IRS Begins Accepting Taxpayer Records in Electronic Format and more . . .


IRS Technical Guidance & Misc


Revenue Procedure 2010-47 sets out the cost limitations for expensing property under section 179 for taxable years beginning in 2010.  The aggregate cost of any section 179 property a taxpayer may elect to treat as an expense cannot exceed $500,000.  This amount is reduced by the amount by which the cost of the property placed in service during the year exceeds $2,000,000.  These amounts reflect statutory changes made by the Small Business Jobs Act.


Revenue Procedure 2010-51 updates Rev. Proc. 2009-54, 2009-51 I.R.B. 930, and provides rules for using optional standard mileage rates in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. 


Notice 2010-88 provides the 2011 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.  This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.


Small Business Jobs Act of 2010 Tax Provisions

New Small Business Jobs Act provisions are designed to encourage investment and provide access to capital for businesses.


New 990 Filing Thresholds for 2010 Tax Year

Do you know which Form 990-series return you are required to file for the 2010 tax year?  The 990 filing thresholds for the year 2010 and later (filed in 2011 and later) will change.


Publication 4163 – 2010 TY/2011 PY publication just posted.

Modernized e-File Information for Authorized IRS e-file Providers of Forms 1120/1120S




National/Local Phone Forums and Webinars for Practitioners


  • No events scheduled


IRS Employee Plans

  • In-Plan Roth Rollover Phone Forum - December 20, 2010


IRS Exempt Organizations is offering one-day workshops

·         No events scheduled


I hope you find this information useful.  If you would like additional information, you can subscribe to an IRS e-Subscription by going to the Subscription page on


If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at James.R.Kinsey and request removal of your name.




 James R. Kinsey

Sr Stakeholder Liaison Specialist
Communication, Liaison & Disclosure
SB/SE Division
Work 408-817-6842
Fax 408-817-4601


PTIN Registration Update

Practitioner Group:

IRS Communication Functions: 
As of 12/8, over 351,000 PTINs have been issued with another 115,000 in various stages of the application process.
In response to inquiries we have received about paper applications, we have prepared the attached communication and updated a related FAQ:
14. I sent in a paper W-12 and my check has not been cashed. What should I do? (updated 12/10/10)
Unlike tax returns, we will not process your payment until a PTIN has been issued. You will receive a letter in the mail when your application is processed. If you included an email address on your W-12, you will be notified via email when your application is processed.

If you have a paper Form W-12 pending, you may still opt to go ahead and register online at any time.  Your paper form and payment will be returned to you.  

Please cascade this information to your tax professional members.

Update on Processing of Paper Forms W-12


The inventory of paper PTIN applications (Forms W-12) is currently about 27,000.  The majority of applications are being processed within four to six weeks. 


Payments with paper PTIN applications are not cashed until processing is completed.  Any preparer who has a paper Form W-12 pending may still opt to register online at any time.  If a preparer does this, when his or her paper application is processed, the system will determine that a PTIN has already been issued online, and the paper form and voided payment will be returned.


Approximately 1,700 forms are over six weeks old.  Processing has been attempted but not completed on these forms because the information submitted does not match IRS records.  Before rejecting any applications, the IRS is making a careful comparison of the information to ensure rejection is valid. 


Applicants are encouraged to carefully check information when applying for PTINs online or on paper.  Our analysis indicates many of the applications we have been unable to process have included incorrect SSNs and dates of birth.  In addition, even after the IRS corrected a programming problem involving spouses on joint returns with different last names, the largest percentage of mismatches continues to be related to the last name.  Applicants should review their last income tax return and enter their name exactly as it appeared.