Wednesday, September 28, 2011

IRS News & Events from Stakeholder Liaison (9-28-2011)

Hello Everyone,
I hope all is going well with you!  I recently came back from a three week vacation in England and Spain.  I want to thank Gerry Kelly-Brenner for being my back-up during this time.

Below is the latest IRS News & Events from Stakeholder Liaison.  Please share this information with your members and colleagues.  (Select the blue links to see the full article).


Estate Tax Issues that Affect Us All presentation will be given by Kyle Martin, IRS Supervisory Estate Tax Attorney on October 25th from 12:30 to 1:30 pm at the Wyndham hotel located at 1350 North 1st Street, San Jose, CA.  Kyle will address what you need to know regarding Estate and Gift Tax 2010 & Beyond.  He will discuss adequate disclosure on Gift Tax returns; penalties; filing a “fat return”; and non-filer program, etc.  Kyle manages 10 Attorneys in San Jose and Oakland, California.  He has been a member of the California State Bar since December 1993, and has been with the IRS since 1989.  For additional information including registration, please contact Randy Warshawsky at 1-800-832-6732 or  (Lunch will be served from 12:00 to 12:30 pm). 

Newsroom                                                                                                       September 28, 2011


IRS Issues Guidance to Further Implement Return Preparer Oversight
IR-2011-96, Sept. 21, 2011 — The IRS provided clarification for tax return preparers about when to renew their preparer tax identification numbers (PTINs), how suitability testing will be conducted, and when the continuing education requirement will begin.

IRS Announces New Voluntary Worker Classification Settlement Program; Past Payroll Tax Relief Provided to Employers Who Reclassify Their Workers
IR-2011-95, Sept. 21, 2011 – The IRS launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.

IRS Shows Continued Progress on International Tax Evasion
IR-2011-94, Sept. 15, 2011 — The IRS announces new details on the recently completed offshore program.

IRS Issues Guidance on Tax Treatment of Cell Phones; Provides Small Business Recordkeeping Relief
IR-2011-93, Sept. 14, 2011— The Internal Revenue Service today issued guidance designed to clarify the tax treatment of employer-provided cell phones.

Treasury, IRS Seek Public Input on Certain Employer Provisions of the Affordable Care Act
IR-2011-92, Sept. 13, 2011 — The Treasury Department and Internal Revenue Service today requested public comment on a proposed affordability safe harbor for employers under the shared responsibility provisions included in the Affordable Care Act that will apply to certain employers starting in 2014.

IRS Offers Filing and Penalty Relief for 2010 Estates; Basis Form Now Due Jan. 17; Extension to March Available for Estate Tax Returns
IR-2011-91, Sept. 13, 2011 — The IRS announced that large estates of people who died in 2010 will have until early next year to file various returns and pay any estate taxes due.


IMRS Monthly Overview - August 2011

New and recently closed issues - IMRS Issue 11-0001502 - Access to Practitioner Priority Service line for Canadian tax professionals, Problem with Form 2848, Line 5, and more . . .


IRS Technical Guidance 

Revenue Procedure 2011-46 provides a book safe harbor method of accounting for taxpayers using the nonaccrual-experience (NAE) method of accounting under § 448(d)(5) of the Internal Revenue Code and § 1.448-2 of the Income Tax Regulations. In general, under the NAE book safe harbor method, taxpayers within the scope of the revenue procedure may compute its uncollectible amount by multiplying the portion of the year-end allowance for doubtful accounts on the taxpayer’s applicable financial statement that is attributable to current year NAE-eligible accounts receivable by 95 percent. Rev. Proc. 2011-46 also provides procedures for obtaining automatic consent to change to the NAE book safe harbor method and to make certain changes within the NAE book safe harbor method.    Revenue Procedure 2011-46 will be in Internal Revenue Bulletin 2011-42 on Oct. 17, 2011.

Notice 2011-80 provides guidance to individuals who have or will obtain a preparer tax identification number (PTIN), including a provisional PTIN, or who become registered tax return preparers.  Notice 2011-80 will appear in IRB 2011-43 dated Oct. 24, 2011.

Notice 2011-79 explains the circumstances under which the 4-year replacement period is extended for livestock sold on account of drought.


Notice 2011-74 provides for the suspension of certain requirements under section 42 of the Internal Revenue Code for low-income housing credit projects to provide emergency housing relief needed as a result of the devastation caused by Tropical Storm Irene in Vermont beginning on August 27, 2011.

IRS Provides Answers to Community Property Filers:  The Internal Revenue Service provided information in a question and answer format to individuals who are subject to their state’s community property laws. These questions and answers apply generally to same-sex spouses in California and to registered domestic partners in California, Nevada, and Washington.

IRS Statement regarding: Selection of Vendor for Continuing Education Provider Application/Renewal System - September 15, 2011

The Internal Revenue Service has selected Kinsail Corporation, a small hub-zone business, as the vendor to administer application and renewal services for Continuing Education Providers that serve Registered Tax Return Preparers, Enrolled Agents, and Enrolled Retirement Plan Agents.


Return Preparer PTIN Listing

The Listing is available in a text delimited format on a CD (compact disc). The fee for the current listing is $35.00. If you request a customized listing, the fee may vary depending on costs associated with producing a specialized listing.


New audit technique guides now on, Audit technique guides offer insight into specific industry issues: Architects and Landscape Architects, Fishing, and Excise Tax on Indoor Tanning Services.


Labor secretary and IRS commissioner sign memorandum of understanding to improve agencies’ coordination on employee misclassification compliance and education.



An IRS webinar on,"Reporting of Employer Provided Healthcare Coverage on Form W-2" will take place on October 31, 2011 at 11:00 a.m. Pacific Time.  Learn:

·       When employers must begin reporting the cost of coverage on the Form W-2

·       Transitional relief for certain employers, plans, and situations

·       Which employers need to report the cost of coverage and how to report it

·       Click the following link to register for the session


California Workshops for Small Business Owners

Please share this link with your small business clients.  The workshops provide detailed instructional lessons that cover their tax filing, paying and operating requirements and responsibilities.


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  and request removal of your name.



Jennifer Henrie-Brown, ID #94-07690
Stakeholder Liaison Specialist
SBSE Communications, Liaison & Disclosure
510-637-2199/ fax 510-637-2434