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


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 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.