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IRS Has $917 Million for People Who Have Not Filed a 2009 Income Tax Return
IR-2013-29, March 14, 2013 — Refunds totaling just over $917 million may be waiting for an estimated 984,400 taxpayers who did not file a federal income tax return for 2009.
IRS Statement on Form 8863, Education Credits
Update on problems with a limited number of software company products that affected some taxpayers filing Form 8863, Education Credits, between Feb. 14 and Feb. 22.
Enrolled Agent Disbarred for Stealing a Client’s Tax Payments and Preparing Returns with False Deductions
IR-2013-27, March 8, 2013— The IRS today announced that its Office of Professional Responsibility obtained the disbarment of enrolled agent Lorna M. Walker for stealing a client's tax payments and for preparing tax returns with false deductions for multiple clients.
IRS Now Accepting All 2012 Returns
IR-2013-25, March 4, 2013 — The IRS announced today that it has finished updating its tax-processing systems, allowing all remaining individual and business taxpayers to file their 2012 federal income tax returns.
IRS Expands Voluntary Worker Classification Settlement Program; Relief From Past Payroll Taxes Available to More Employers Who Reclassify Their Workers As Employees
IR-2013-23, Feb. 27, 2013 — The IRS has expanded its Voluntary Classification Settlement Program, paving the way for more taxpayers to take advantage of this low-cost option for achieving certainty under the law by reclassifying their workers as employees for future tax periods.
Parents and Students: Check Out College Tax Benefits for 2012 and Years Ahead
IR-2013-22, Feb. 22, 2013 — The IRS reminds parents and students that now is a good time to see if they qualify for either of two college education tax credits or any of several other education-related tax benefits.
IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns
IR-2013-21, Feb. 19, 2013 — The IRS reminds taxpayers who converted amounts to a Roth IRA or designated Roth account in 2010 that, in most cases, they must report half of the resulting taxable income on their 2012 returns.
Estimated tax penalty relief for farmers and fishermen; New offer in compromise pre-qualifier tool available; Report suspected tax fraud activity; Updated guidance regarding consents to disclose use of tax return and more . . .
IRS Technical Guidance
The IRS reminds tax practitioners that Form 8839, Qualified Adoption Expenses, cannot be electronically filed this year but must be mailed to the IRS. Additionally, there is no longer a requirement to attach supporting documentation to this year’s return. However, documentation must be kept as part of a taxpayer’s records. See Tax Topic 607 for additional information on the Adoption Credit and adoption assistance programs.
Budget Sequestration Reduces Some Credits and Awards
Federal budget sequestration has resulted in required cuts to certain credits and awards, effective March 1. These required cuts include a reduction to the refundable portion of the Small Business Health Care Tax Credit for certain small tax-exempt employers, a reduction in award payments to whistleblowers, and a reduction to refundable credits applicable to certain qualified bonds.
Proposed regulations on truncated TINS
Proposed REG-148873-09 continues the pilot program for truncated taxpayer identification number, or TTINs. Filers of certain information returns – now expanded to include those delivered electronically – may use a TTIN as an alternative to using an SSN, ITIN, or ATIN on payee statement.
IRS Extends the Comment Period on Acceptable e-signature Standards
Due to Industry requests for additional time, the IRS has extended the deadline until May 1, 2013 to receive recommendations and comments on Internal Revenue Bulletin 2013-4, Announcement No. 2013-8. E-signature standards will promote efficiency, reduce burden and improve identity proofing methods to confirm the identity of the signer. Announcement 2013-8 provides details on the request and proposed standards. Submit recommendations and comments electronically to mailto:email@example.com by May 1, 2013.
Notice 2013-20 - Allocation of Controlled Group Research Credit - This notice provides interim guidance relating to the allocation of the credit for increasing research activities (research credit) to corporations and trades or businesses under common control (controlled groups) for purposes of § 41(f)(1)(A)(ii) and § 41(f)(1)(B)(ii) of the Internal Revenue Code, as amended by section 301(c) of the American Taxpayer Relief Act of 2012, P.L. 112-240, H.R. 8 (the Act), for taxable years beginning after December 31, 2011.
Notice 2013-14 - This notice provides guidance on § 309 of the American Taxpayer Relief Act of 2012 (the Act), Pub. L. No. 112-240, enacted on January 3, 2013, and transition relief for employers claiming the Work Opportunity Tax Credit (the WOTC) under §§ 51 and 3111(e) of the Internal Revenue Code (the Code), as extended by the Act. Section 309 of the Act amended § 51 to extend the WOTC through December 31, 2013, for taxable employers and for qualified tax-exempt organizations. Specifically, this notice provides employers that hire members of targeted groups additional time beyond the 28-day deadline in § 51(d)(13) of the Code for submitting Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to Designated Local Agencies (DLA).
The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning April 1, 2013. The rates will be:
• three (3) percent for overpayments (two (2) percent in the case of a corporation);
• three (3) percent for underpayments;
• five (5) percent for large corporate underpayments; and
• one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
Rev. Proc. 2013-21 - This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2013, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger
automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code.
Increase to Automated Collection System Authority
Guidance memorandum SBSE-05-0113-0069 from the Small Business/Self-Employed Division, dated Jan. 31, includes detailed instructions for the handling and forwarding of cases to revenue officers or to the ACS. The guidance updates instructions for obtaining installment agreement managerial approval, and for processing withdrawals of installment agreement requests. The guidance also added a new exhibit for processing withdrawals of installment agreement requests.
· International Issues involving Retirement Plans in
For dates and more, go to the National Tax Forum website.
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