Vita-Volunteers.org Upcoming Events Blog

Friendly Reminder: IRS Director of OPR - Ethics Presentation - San Jose - Jan 17, 2012

2012-01-12T11:28:00.000-08:00

Hello Everyone,

Did you miss it…the opportunity to learn the latest about Ethics from the source?

Fortunately not, but don’t let this chance slip away.

Come hear about Ethics - directly from Karen Hawkins, IRS Director of the Office of Professional Responsibility (OPR):

Relevant revisions to Circular 230
Important insights about ethical conduct
What’s being done to rid the system of unethical preparers
OPR priorities for 2012
and more…

Earn two hours of ethics training – including lunch…a great value at only $40 – if you make reservation by Thursday, January 12^th.

Event Information

EVENT: Luncheon Meeting and Ethics Presentation

DATE: Tuesday, January 17, 2012

TIME: 11:45 a.m. – 2:30 p.m.

LOCATION: Wyndham Hotel, 1350 North First Street, San Jose, CA 95112

SPONSORED BY: Mission Society of Enrolled Agents

Additional Information and Registration may be found at:

https://www.123signup.com/event?id=cdvdv

For further questions:

Please contact Philip Levine at 1-800-832-6732 or office@missioneas.com.

Any fees associated with this event are charged by the sponsoring organization and not the IRS.

Please share this information with your tax professional members and colleagues so they can take advantage of, and benefit from this very special event.

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

Communications Stakeholder Outreach

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

FYI: IRS' Director of the OPR will give Ethics presentation in San Jose, CA (on Jan 17, 2012)

2011-11-30T14:52:00.000-08:00

FYI: A wonderful opportunity to hear about Ethics directly from IRS' Director of the Office of Professional Responsibility (OPR)

Director of the IRS Office of Professional Responsibility (OPR), Karen Hawkins, will give a presentation on “Ethics”

Come hear directly from the Director of the OPR regarding ethical conduct, and what is being done to rid the system of unethical persons, etc. Ms. Hawkins will also discuss relevant revisions to Circular 230 and OPR priorities for 2012. Earn two hours of ethics training, required continuing education for Enrolled Agents and Registered Tax Return Preparers, etc.

Event Information

Event: Luncheon meeting sponsored by Mission Society of Enrolled Agents

Date: January 17, 2012

Time: 11:45 a.m. – 2:30 p.m.

Location: Wyndham Hotel, 1350 North First Street, San Jose, CA 95112

For additional information, including registration, please go to: https://www.123signup.com/event?id=cdvdv. For further questions contact Philip Levine at 1-800-832-6732 or office@missioneas.com . Any fees associated with this event are not charged by the IRS.

Promotional flyer is attached for your information as well.

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

Communications Stakeholder Outreach

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

FYI: "Estate Tax Issues that Affect Us All" Presentation given by IRS Supervisory Estate Tax Attorney

2011-10-03T10:46:00.000-07:00

Hello Everyone,

I hope all is going well with you! With the recent changes in Estate Tax law, this is a very timely presentation given by an IRS Supervisory Estate Tax Attorney, and excellent presenter! Don't miss out on this opportunity to learn about the Estate Tax Issues that Affect Us All from an IRS Subject Matter Expert in this area of tax law.

Estate Tax Issues that Affect Us All presentation

will be given by Kyle Martin, IRS Supervisory Estate Tax Attorney

Date: October 25

Time: 12:30 to 1:30 pm

Location: Wyndham hotel located at 1350 North 1st Street, San Jose, CA.

Kyle will discuss:

What you need to know regarding Estate and Gift Tax 2010 & Beyond
Adequate disclosure on Gift Tax returns
Penalties
Filing a “fat return”
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 office@missioneas.org (Lunch will be served from 12:00 to 12:30 pm).

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

SBSE Communications, Liaison & Disclosure

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

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

2011-09-28T08:26:00.000-07:00

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 office@missioneas.org (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 IRS.gov, 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.

Events

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

http://www.visualwebcaster.com/IRS/82090/reg.asp?id=82090

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 IRS.gov.

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer.Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

IRS News & Events from Stakeholder Liaison (August 8, 2011)

2011-08-08T15:49:00.000-07:00

Hello Everyone,

I hope all is going well with you! Below is latest edition of IRS News & Events from Stakeholder Liaison. Please share this information with your colleagues.

Also, attached above is a flyer promoting the CSEA - IRS Federal Representation Workshop 2011: The Basics of IRS Compliance Processes and Representation. This workshop is designed to provide new tax practitioners with a basic understanding of IRS compliance processes and procedures as they relate to examinations, collections, appeals, and offers in compromise.

Have a great day!

Newsroom August 8, 2011

2010 Form 8939 is Due Nov. 15; Reporting Option Applies to Many Large Estates
IR-2011-83, Aug. 5, 2011— IRS provides guidance for estates of decedents who died in 2010.

IRS Takes Next Steps in International Realignment; Bolsters Transfer Pricing Compliance Programs and International Coordination
IR-2011-81, July 27, 2011 — IRS announces changes to improve agency's international operations by consolidating certain efforts.

Two-Year Limit No Longer Applies to Many Innocent Spouse Requests
IR-2011-80, July 25, 2011 — The Internal Revenue Service today announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests.

Comments Sought on Updated Rules for IRS Communications with Appeals Office
IR-2011-78, July 19, 2011 — The Internal Revenue Service today requested public comment on proposed updates to existing rules on permissible communications between the Office of Appeals and other parts of the IRS.

IRS Gives Truckers Three-Month Extension; Highway Use Tax Return Due Nov. 30
IR-2011-77, July 15, 2011 — Truckers and other owners of heavy highway vehicles have until Nov. 30, 2011, to file their next federal highway use tax return, which is usually due Aug. 31.

IMRS Hot Issues - August 1, 2011

IRS Gives Truckers Three-Month Extension, IRS Identifies 100,000 Preparers Who Failed to Follow New PTIN Rules, IRS Notice Invites Public Comments Regarding Continuing Education Providers, and more . . .

IRS Technical Guidance

Headliner 312, July 20, 2011 - IRS Reminds Taxpayers that FUTA Surcharge has Expired

The IRS reminds employers that the Federal Unemployment Tax Act surcharge of 0.2% expired on June 30, 2011. This means that the FUTA rate for employers went to 6.0% starting on July 1, 2011.

The Updated Circular 230 is Now Available

The updated Circular 230, revised to reflect the new return preparer oversight program and other changes, is now available on IRS.gov. You may want to bookmark for easy reference.

Notice 2011-61 invites comments regarding education providers under the tax return provider program.

Revised Notice 2011-53 describes the timeline for phased implementation of chapter 4. In particular, it describes the transition rules relating to withholding for USFIs and withholding, due diligence, and reporting obligations for participating FFIs.

TD 9539 contains final regulations that amend the regulations concerning the election to claim the reduced research credit. The final regulations simplify how taxpayers make the election and affect taxpayers that claim the reduced research credit.

Announcement 2011-42 advises taxpayers that the IRS intends to discontinue authorizing the high-low per diem method for substantiating lodging, meal, and incidental expenses incurred in traveling away from home.

Audit Technique Guides offer insight into specific industry issues

IRS audit technique guides include common and unique industry issues, business practices, industry terminology and other information designed to assist IRS examiners in performing examinations, but are also helpful to businesses in those industries for bookkeeping and other purposes. Recently updated Audit Technique Guides include:

· Business Consultants

· Attorneys

FinCEN Announces Taxpayers Can Report Foreign Financial Accounts Electronically

The Financial Crimes Enforcement Network (FinCEN) announced July 18 that taxpayers now can electronically file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

Events

National/Local Phone Forums and Webinars for Practitioners

The IRS Fresh Start Initiative - August 31, 2011

TEGE

· Update and Q&A Session on IRC Section 3402(t) - 3 Percent Withholding - August 18th

· EPCRS : Plan Correction Issues - August 25, 2011

IRS Nationwide Tax Forums - Plan ahead – Here are the locations for the 2011 Forums!

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 e-News Subscription page on IRS.gov.

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

FYI: IRS Nationwide Tax Forum in San Jose

2011-07-15T17:10:00.000-07:00

We've been asked by our National Public Liaison Team to help promote the IRS Nationwide Tax Forum in San Jose. This is the first year an IRS Nationwide Tax Forum has been offered in San Jose! Thus far the registration has been low compared to other locations. If you've been to the Forum in Las Vegas, you have probably dealt with crowds and long lines. The Forum in San Jose will provide a much more relaxed and comfortable experience since there are fewer registered. You will have easier access to all of the same sessions offered in Las Vegas with smaller crowds! Also, the California Franchise Tax Board and the Board of Equalization will have representatives at the San Jose Forum but not at the Las Vegas Forum. Please encourage your members to attend the Forum in San Jose!

REGISTER NOW: www.irstaxforum.com

Dear California Enrolled Agent:

The IRS invites you and other tax professionals to register early for one of the six IRS Nationwide Tax Forums being held this summer. Those who take advantage of the early registration save $129. The enrollment cost for those who register early is $206 per person, a savings of over 38 percent off the late or on-site registration price of $335. The early registration period closes two weeks prior to each forum.

The forums are three-day events presented by IRS experts and partner organizations that offer up-to-date information on federal and state tax issues and the opportunity to receive up to 18 continuing education credits. In a 2010 survey, the forums received a 95 percent satisfaction rate. This year, 40 different topics are being covered, each qualifying for continuing professional education credit for enrolled agents and certified public accountants.

In addition to the seminars and workshops, the forums feature a two-day expo designed with the tax professional in mind, with representatives from the IRS and other tax, financial, and business communities offering their products and services. Attendees can also visit the IRS Preparer Services Room and learn about the agency’s e-Services to benefit their business, offer comments on various initiatives and programs, or participate in a focus group session.

Finally, attendees are invited to bring their most challenging unresolved case to the Case Resolution Room. Participants are encouraged to bring the case resolution data sheet (see the Forum website) completed to speed the process faster. Last year, a total of 1235 cases had a 97 percent on-site resolution rate.

The only Forum being held in California will be in San Jose. To register for this Forum, visit http://www.irstaxforum.com. Thank you!

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

SBSE Communications, Liaison & Disclosure

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

IRS News & Events from Stakeholder Liaison (July 15, 2011)

2011-07-15T16:41:00.000-07:00

Hello Everyone,

Please share the below information with your members and colleagues. Select the blue links to see the full article.

Have a wonderful weekend!

Newsroom July 15, 2011

Treasury and IRS Issue Guidance Outlining Phased Implementation of FATCA Beginning in 2013
IR-2011-76, July 14, 2011 — The Treasury Department and the Internal Revenue Service today issued a notice announcing plans to phase in the requirements of the Foreign Account Tax Compliance Act (FATCA).

IRS Nationwide “Fresh Start” Open House Set for Saturday July 16
IR-2011-75 July 13, 2011 –– More than 70 Taxpayer Assistance Centers will be open from 9 a.m. to 2 p.m. local time.

IRS Identifies 100,000 Preparers Who Failed to Follow New PTIN Rules
IR-2011-74, July 12, 2011 — As part of its new oversight program of the nation’s tax return preparation industry, the IRS announced it will send letters to approximately 100,000 tax return preparers who prepared returns in 2011 but failed to follow new requirements.

IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams
IR-2011-73, July 11-2011 — Taxpayers are encoraged to be on their guard against those who would encourage them to file tax returns with false claims to get refunds to which they are not entitled.

IMRS Hot Issues - July 1, 2011

CP 2000 Notices on “dotted line” Entries, Notice 2011-45, and the Related Final Regulation TD 9527, Regulations Governing Practice Before the Internal Revenue Service, Standard Mileage Rates Change on July 1 and more . . .

IRS Technical Guidance

Tax Exempt Bonds Questionnaire Project: Final Report on Governmental and Charitable Financings

The Tax Exempt Bonds function of the IRS Tax Exempt and Government Entities Division has published the final report on its Tax-Exempt Charitable Financings Compliance Check Questionnaire and Governmental Bond Financings Compliance Check Questionnaire projects.

Employee Plans News Issue Number: 2011-5 - Inside This Issue

2009 Form 8955-SSA and 2010 Form 5500-EZ Released, Form 5500 – Special Extensions of Time to File, Employee Plans Rulings & Agreements Priority Items and more . . .

FSLG Newsletter - July 2011

Section 3402(t) Withholding Delayed Until 2013; FSLG and the National Research Program; Withholding Agents and Form 1042-S; FSLG Offers Webinars to Governments; Repeal of Expanded Information Reporting; Directory of FSLG Specialists

IRS Video Explains How to Regain Exempt Status

The IRS explains how small nonprofits can get their tax-exempt status reinstated in this new YouTube video

Watch this and other videos on the IRS’s YouTube Channel

Summer SSA/IRS Reporter

The Summer 2011 issue of SSA/IRS Reporter is now available online in English and Spanish.

Outreach Corner

Find it easy to spread the word about key income tax topics! This page offers you electronic communication materials to use in reaching out to the people you serve. Get free news you can use each month, targeted by time of year to coincide with what your customers, employees, volunteers, etc. need to know about new tax law legislation, IRS events and other activities that affect them.

Events

National/Local Phone Forums and Webinars for Practitioners

Direct Sellers (Webinar) - July 27, 2011
The IRS Fresh Start Initiative - August 31, 2011

Information for Tax Exempt Bond Community:

· Ethics For Employee Plans Practitioners - July 29, 2011

· EPCRS : Plan Correction Issues - August 25, 2011

IRS Nationwide Tax Forums - Plan ahead – Here are the locations for the 2011 Forums!

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 IRS.gov.

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer.Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

IRS News & Events from Stakeholder Liaison (July 1, 2011)

2011-07-01T16:27:00.000-07:00

Hello Everyone,

I hope all is going well with you!

Please share the below information with your colleagues. Select the blue links to see the full article.

Have a wonderful 4th of July!

Newsroom July 1st, 2011

National Taxpayer Advocate Submits Mid-Year Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year
IR-2011-71, June 29, 2011 — National Taxpayer Advocate Nina E. Olson released a report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will address during the coming fiscal year.

Reminder: Report Certain Foreign Bank and Financial Accounts to Treasury by June 30
IR-2011-70, June 24, 2011 — IRS reminds everyone who has a bank or other financial account in a foreign country that they may be required to report it to the U.S. Department of the Treasury by June 30 each year. More information is available on IRS.gov, including recent FBAR guidance regarding administrative relief for certain individuals with signature authority over, but no financial interest in, foreign financial accounts: http://www.irs.gov/businesses/small/article/0,,id=148849,00.html.

IRS Increases Mileage Rate to 55.5 Cents per Mile
IR-2011-69, June 23, 2011 — Starting July 1, the standard mileage rate for business miles driven is increased to 55.5 cents per mile.

IRS Electronic Tax Administration Advisory Committee (ETAAC) Delivers Report to Congress
IR-2011-68, June 15, 2011 — The Electronic Tax Administration Advisory Committee released its 2011 Annual Report to Congress.

Spring 2011 Statistics of Income Bulletin Now Available
IR-2011-67, June 14, 2011 — The IRS released the spring 2011 issue of the Statistics of Income Bulletin.

IRS Identifies Organizations that Have Lost Tax-Exempt Status; Announces Special Steps to Help Revoked Organizations
IR-2011-63, June 8, 2011–– The IRS announced that approximately 275,000 organizations have automatically lost their tax-exempt status because they did not file legally required annual reports for three consecutive years.

Treasury and IRS Announce Proposed Changes to New Markets Tax Credit Program to Foster Greater Investment in Operating Businesses
IR-2011-61, June 3, 2011 — The U.S. Treasury and IRS announced proposed changes to the new markets tax credit program to encourage more investment in non-real estate businesses.

IMRS Hot Issues - July 1, 2011

CP 2000 notices on "dotted line" entries; IRS announces special steps to help revoked tax-exempt organizations; Regulations governing practice before the IRS released, and more . . .

IRS Technical Guidance

Revenue Procedure 2011-38 modifies and supersedes the guidance concerning the treatment under sections 1035 and 72 of the partial exchange of an annuity contract. Specifically, the revenue procedure provides that the direct transfer of a portion of the cash surrender value of an existing annuity contract for a second annuity contract will be treated as a tax-free exchange under section 1035 if no amount, other than an amount received as an annuity for a period of 10 years or more or during one or more lives, is received during the 180 days beginning on the date of the transfer. A subsequent direct transfer is not taken into account. Other transactions will be characterized consistent with their substance. Prior to this revenue procedure's effective date, Rev. Proc. 2008-24 will be applied with the clarification that the conditions described in section 4.01(b) or Rev. Proc. 2008-24 will be treated as satisfied if the condition was satisfied on the date of the withdrawal or surrender.

Announcement 2011-40 advises the public the Internal Revenue Service is revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. This modification results from recent increases in the price of fuel. The revised standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents for use of an automobile as a medical or moving expense. The mileage rate for use of an automobile as a charitable contribution is fixed by statute and remains 14 cents. The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses an employee pays or incurs on or after July 1, 2011. Announcement 2011-40 will be published in Internal Revenue Bulletin 2011-29 on July 18, 2011.

Notice 2011-56 provides interim guidance to taxpayers under § 1012 of the Internal Revenue Code on issues relating to the basis of stock subject to broker reporting under § 6045, pending publication of superseding guidance. Notice 2011-56 will be published in Internal Revenue Bulletin 2011-29 on July 18, 2011.

Notice 2011-54 provides additional administrative relief to persons whose requirement to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), to report signature authority over foreign financial accounts held during calendar year 2009 or earlier calendar years was properly deferred under Notice 2009-62, 2009-35 I.R.B. 260, or Notice 2010-23, 2010-11 I.R.B. 441.

Notice 2011-48 invites public comments on the content and administration of the registered tax return preparer competency examination. The Treasury Department and the Internal Revenue Service have published final regulations (TD 9527, 76 FR 32286) under 31 CFR Part 10 that require certain individuals to pass a competency examination to become a registered tax return preparer. The IRS has selected a vendor to support the IRS in developing and administering the competency examination for the Form 1040 series tax returns and accompanying schedules.

Withdrawal of Notice of Federal Tax Lien after Release: Memorandum issued Interim Guidance (IG) for processing requests for withdrawal of notices of federal tax lien after the lien has been released. To find additional staff guidance, go to the FOIA “Electronic Reading Room.”

Other News:

IRS tips for bankruptcy trustees: A new IRS.gov page offers tips for bankruptcy trustees who receive IRS collection notices.

The IRS Return Preparer Office has a new Facebook page: The IRS Return Preparer Office, building on its partnership with the tax professional community, has opened another communications avenue that it hopes becomes a two-way street. Yes, we're talking Facebook. The Return Preparer Office is entering a strange world of "friends" and "likes" and other words we're not used to hearing.

The IRS speaks many languages: The IRS is constantly improving and expanding services and products for all taxpayers, including people who speak limited English. Searchers will find more than 700 translated forms and publications available to download on IRS.gov. This includes the Publications 850 series, a series of glossaries that translates words and phrases from English to Spanish, simplified Chinese, traditional Chinese, Korean, Vietnamese and Russian. IRS.gov also provides basic tax information relevant for those speaking other languages:

The Multilingual Gateway provides basic federal tax information and downloadable files in Chinese, Vietnamese, Russian and Korean.

EL IRS en Español provides Spanish-speaking individuals access to forms and publications, information and tools, including the EITC Assistant, online payment agreements, Where’s My Refund?

The Spanish Multimedia Web page offers links to podcasts, YouTube, the IRS Video Portal and text files.

Events

IRS Open House: The IRS is hosting an Open House, Saturday, July 16, in 74 Taxpayer Assistance Centers in 34 states, Washington D.C. and Puerto Rico, from 9 a.m. to 2 p.m. local time. Open Houses provide the opportunity for taxpayers who have questions about notices, payment agreements or tax liens to get answers for a fresh start. Over 16,000 taxpayers attended the first two events in February and March, resolving most of their concerns the same day.

National/Local Phone Forums and Webinars for Practitioners:

July 29th Phone Forum on Ethics for Employee Plans Practitioners: Register now for this July 29th EP phone forum. Karen Hawkins, the Director of the Office of Professional Responsibility (OPR) and Gabriel Minc, a Senior Tax Law Specialist in Employee Plans, will discuss ethical standards of practice before the IRS applicable to employee benefits practitioners. The discussion will focus primarily on Circular 230, which defines such standards, as well as related tax and administrative issues and commentary.
These recent webinars are now on the IRS Video Portal:
- Accessing IRS Records
- Reporting Foreign Financial Accounts on the FBAR

IRS Nationwide Tax Forums - Plan ahead – Here are the locations for the 2011 Forums!

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 IRS.gov

If you would like to discontinue receiving my local Stakeholder Liaison emails, please email at Jennifer.Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

IRS News & Events from Stakeholder Liaison - June 3, 2011

2011-06-03T14:32:00.000-07:00

Hello Everyone,

I hope all is going well with you!

I noticed e-News for Tax Professionals was released today, and the IRS News & Events from Stakeholder Liaison for June 3rd has alot of the same information. Therefore, I have highlighted in green font information that is not in the June 3rd edition of e-News for Tax Professionals. (If you are not a subscriber of e-News for Tax Professionals and would like to be, click on the "Subscription" page link following the "Events" section of this release and subscribe to this free newsletter).

Please share this information with your organization's members and work colleagues. Select the links (underlined text) to see the full article. Thank you!

Newsroom

IRS Advisory Committee on Tax Exempt and Government Entities To Submit Recommendations at June Meeting
IR-2011-60, June 1, 2011 — The IRS Advisory Committee on Tax Exempt and Government Entities will provide its latest recommendations to the IRS leadership at a June 15 public meeting.

Prepare for Hurricanes, Disasters by Safeguarding Tax Records
IR-2011-59, June 1, 2011 — The 2011 hurricane season starts today, and the IRS encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.

IRS Accepting Applications for Low Income Taxpayer Clinic Grants
IR-2011-58, June 1, 2011 — The IRS announced the opening of the 2012 Low Income Taxpayer Clinic (LITC) grant application process

FBAR Filing Deadline Extended for Certain Financial Professionals
IR-2011-57, May 31, 2011— The IRS and FinCEN announced that a small subset of individuals with only signature authority required to file the Report of Foreign Bank and Financial Accounts (FBARs) will receive a one-year extension beyond the upcoming filing date of June 30, 2011.

IMRS Hot Issues - June 1, 2011

IRS Customer Satisfaction Surveys, Repeal of Expanded Information Reporting Requirements, Return Preparer Testing and Fingerprinting Programs, etc.

IRS Technical Guidance

TD 9527: Regulations Governing Practice before the Internal Revenue Service (final Circular 230 regulations).

Notice 2011-45, Restrictions on Use of the Term Registered Tax Return Preparer will be published in Internal Revenue Bulletin 2011-25 on June 20, 2011. The notice specifies that no individual may represent themselves as a registered tax return preparer until they have met all the conditions including passing the competency exam and tax compliance and suitability checks. Additionally, any one who becomes a registered tax return preparer will be required to include the following statement in any advertisements: "The IRS does not endorse any particular individual tax return preparer. For more information on tax return preparers, go to IRS.gov."

Revenue Procedure 2011-35 provides survey guidelines and estimation procedures to be used for determining basis in stock acquired in transferred basis transactions. This revenue procedure updates and expands Rev. Proc. 81-70, while at the same time it obsoletes Rev. Proc. 81-70 and Notice 2009-4 with respect to transferred basis transactions completed on or after June 20, 2011. Revenue Procedure 2011-35 will be published in Internal Revenue Bulletin 2011-25 on June 20, 2011.

Revenue Procedure 2011-34 provides late election relief in certain situations for real estate professionals who failed to timely file the election to aggregate their rental real estate interests. Revenue Procedure 2011-34 will be published in Internal Revenue Bulletin 2011-24 on June 13, 2011.

Other News

Announcement 2011-36 invites public comments on transitional issues and frequently asked questions involving the redesigned Form 990.

IRS Seeks Input on Continuing Education Providers: IRS issued a Sources Sought Notice to determine the availability of all responsible sources that have the capability, experience, and expert knowledge in the area of implementation of annual Continuing Education (CE) requirements for all return preparers who are not attorneys, enrolled agents, enrolled actuaries, or enrolled retirement plan agents. Responses are due June 6, 2011.

IRS mailed several thousand Letters 4664 this week to indoor tanning service businesses who have not filed their excise taxes. Please advise your members if they receive a letter they should: Respond within the 30 day time frame specified in the letter; keep copies of all correspondence, and may refer to the IRS Indoor Tanning Services Tax Center for additional information. (There is also a phone number on the letter they can call if they have questions).

Recent Webinars now posted for viewing on the IRS Video Portal :

Events

National/Local Phone Forums and Webinars for Practitioners

The Examination Process for Employment Tax Returns, June 22, 2011
Real Estate Related Mortgage Interest, June 29, 2011

IRS Nationwide Tax Forums - Offers three days of the latest tax law information, hands-on workshops, networking opportunities, and exhibits of the newest products and services to improve your business. Register early and earn up to 18 CPE credits. For more information visit the IRS Nationwide Tax Forum website.

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 IRS.gov.

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer.Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

FYI: News & Events from IRS Stakeholder Liaison - May 20, 2011

2011-05-20T09:44:00.000-07:00

Hello Everyone!

I hope all is going well with you! Below is our latest edition of News & Events from IRS Stakeholder Liaison. I wanted to point out a few items:

Reporting Foreign Financial Accounts on the FBAR Webinar will be held on June 1, 2011. (See below for additional information).
San Jose is one of six locations to host the Nationwide Tax Forums this year: The forums are three-day events presented by IRS experts and partner organizations that offer up-to-date information on federal and state tax issues and the opportunity to receive up to 18 continuing education credits. In a 2010 survey, the forums received a 95 percent satisfaction rate. This year, 40 different topics are being covered, each qualifying for continuing professional education credit for enrolled agents and certified public accountants. (See below, "IRS Nationwide Tax Forums" link for additional information)

Please share this information with your organization's members and colleagues. Select the blue links to see the full article.

Newsroom May 20, 2011

Prepared Remarks of IRS Commissioner Doug Shulman to the Leaders & Legends Series, Johns Hopkins Carey Business School, Baltimore
IR-2011-55, May 18, 2011 — IRS Commissioner Shulman spoke to a gathering at the Johns Hopkins Carey Business School in Baltimore on Wednesday.

IRS Marks Small Business Week by Showcasing Tools, Resources; Spotlights Tax Benefits Available in 2011
IR-2011-54, May 17, 2011 ― Those who are self-employed or own a small business can find out about certain tax benefits and IRS resources that can help them meet their federal tax obligations.

Interest Rates Remain the Same for the Third Quarter of 2011
IR-2011-53, May 16, 2011 — Interest rates remain the same for the 3rd quarter of 2011 as they were in the 2nd quarter.

Retirement News for Employers, Spring 2011 - May 17, 2011

Retirement Plans for Self-Employed People, Higher Education Organizations Have to Comply with the Universal Availability Rule, Are You Covered by an Employer’s Retirement Plan?, New Small Business Retirement Plan Resources Web Page and more . . .

Third Party Reporting Center

The third party reporting information center has up-to-date information to help you stay current with changes in information reporting.

IRS Technical Guidance

Notice 2011-42 provides interim guidance to third party settlement organizations (TPSO) (as defined under section 6050W of the Internal Revenue Code (Code) and its accompanying regulations) on backup withholding obligations under section 3406 of the Code and its accompanying regulations.

Information reporting by government entities (3% withholding)

REG-151687-10 contains proposed regulations for government entities withholding on payments to persons providing property or services. The deadline for submitting comments on the proposed regulations is Aug. 8.

TD 9524 contains final regulations for withholding by government entities.

2012 HSA limits adjusted for inflation

Rev. Proc. 2011-32 has the 2012 deduction limitations for annual contributions to health savings accounts.

Events

National/Local Phone Forums and Webinars for Practitioners

Reporting Foreign Financial Accounts on the FBAR (Webinar), June 1, 2011
The Examination Process for Employment Tax Returns, June 22, 2011

TEGE

The Global Phenomenon - How International Issues Impact Employee Plans, May 26, 2011

IRS Nationwide Tax Forums - Plan ahead and take advantage of early registration savings!

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 IRS.gov.

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer.Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

IRS News Events from Stakeholder Liaison (4-22-2011)

2011-04-22T08:57:00.001-07:00

Hello Everyone,

I hope all is going well with you!

Please share the below information with your members and colleagues. Select the blue links to see the full article.

Thank you!

Newsroom April 22, 2011

Taxpayers Set e-File Record as Tax Deadline Approaches; More than 100 Million e-Filed Returns So Far This Year
IR-2011-46, April 18, 2011 — Taxpayers have e-filed nearly one billion returns since 1990.

Can’t File on Time? Get an Extension until Oct. 17
IR-2011-43, April 12, 2011 — Extensions are available through Free File, software, paid preparers and on paper.

Winter 2011 Statistics of Income Bulletin Now Available
IR-2011-40, April 7, 2011 — The Internal Revenue Service announced the availability of the winter 2011 issue of the Statistics of Income Bulletin, which features preliminary data on individual income tax returns filed for 2009.

Don’t Fall Prey to the 2011 Dirty Dozen Tax Scams
IR-2011-39, April 7, 2011 –– Hidden offshore accounts, phishing and return preparer fraud.

Prepared Remarks of IRS Commissioner Doug Shulman at the National Press Club
IR-2011-38, April 6, 2011 — IRS Commissioner Shulman delivers prepared remarks titled “On the Horizon: A Vision for the Future of Our Tax System.”

President signs bill repealing 2012 1099 requirements

Recent legislation repeals the requirement that businesses and rental property owners file Form 1099 if they paid more than $600 per annum to any single vendor for goods and services.

IRS Technical Guidance

Announcement 2011-29 reinstates the renewal period for enrolled agents whose tax identification numbers end in 4, 5, or 6.

TD 9523 User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents

Final regulations - This document contains amendments to the regulations relating to the imposition of user fees for enrolled agents and enrolled retirement plan agents.

Notice 2011-38 announces an extension and modification of the pilot program announced in Notice 2009-93, 2009-51 I.R.B. 863, which authorized filers of certain information returns to truncate an individual payee's nine-digit identifying number on specified paper payee statements furnished for calendar years 2009-2010, if the filers met certain requirements.

Notice 2011-34 provides further guidance and requests comments on certain priority issues regarding the implementation of chapter 4 of Subtitle A of the Code, which expands the information reporting requirements imposed on foreign financial institutions and imposes withholding, documentation, and reporting requirements with respect to certain payments made to certain foreign entities.

Events

National/Local Phone Forums and Webinars for Practitioners

· Accessing IRS Records, April 27, 2011

· Small Business Advantage: Put Our Knowledge to Work for You, May 18, 2011

TEGE

· Funding Standards and Relief for Single and Multiemployer Plans, April 28, 2011

· Payments Made to Foreign Persons: A Basic Overview for Government Entities, May 12, 2011

IRS Nationwide Tax Forums - Plan ahead – Here are the locations for the 2011 Forums!

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 IRS.gov.

If you would like to discontinue receiving our local Stakeholder Liaison emails, please email me at: Jennifer.Henrie-Brown@irs.gov 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

Jennifer.Henrie-Brown@irs.gov

FYI: IF there is a Federal Government Shutdown (IRS related Information)

2011-04-08T14:03:00.001-07:00

Hello Everyone,

I the event of a Federal Government Shutdown, IRS Communications has prepared a document addressing the following:

IRS Operations During a Government Shutdown
How Does This Affect Me? What Do I Do?
What Will Happen at the IRS IF the Government Shuts Down?
Operations Closed or Unavailable During a Government Shutdown (Partial Listing)
Information for Tax Practitioners

Please see below for document's information. (I have bolded the font to highlight certain information below).

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

SBSE Communications, Liaison & Disclosure

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

____________________________________________________________________________

IRS Operations During A Government Shutdown

If the federal government shuts down, IRS operations will be severely limited. However, the underlying tax law remains in effect, and all taxpayers should continue to meet their tax obligations as normal.

Individuals should keep filing their tax returns with the IRS and are required to do so by April 18 unless they obtain a six-month extension. The IRS will be accepting all tax returns. Once they’ve been accepted, the IRS will generally process and issue refunds for electronically filed individual returns.

Individuals are urged to file electronically, because most of these returns are processed automatically and should not be delayed. Because of limited IRS staffing, paper returns will be accepted, but will not be processed in the event of a government shutdown and taxpayers who file paper returns will experience a delay in receiving their refunds. Limited telephone customer service functions will remain available, but IRS walk-in taxpayer assistance centers will be closed.

While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date.

Here are some basic steps for taxpayers to follow in case of a governnment shutdown:

How Does This Affect Me? What Do I Do?

You should continue to file and pay taxes as normal.
The April 18, 2011, tax deadline for filing the 1040 series of tax returns remains in effect.
Individuals filing the 1040 series of returns can still request a six-month filing extension to Oct. 17 by filing Form 4868. Taxpayers who request a filing extension must still make their tax payments by April 18, 2011.
The quarterly estimated tax payment due April 18 is unchanged.
All other tax deadlines remain in effect, including those covering individuals, corporations, partnerships and employers. The regular payroll tax deadlines remain in effect as well.
You can file your tax return electronically or on paper –– although the processing of paper returns will be delayed until full government operations resume. Payments accompanying paper tax returns will still be accepted as the IRS receives them.
Tax refunds for most electronically filed returns will continue to be issued. Because of limited IRS staffing, taxpayers who file paper returns will experience a delay in receiving their refunds.
Tax software companies, tax practitioners and Free File remain available to assist with taxes.
State tax deadlines are not impacted by the federal government shutdown.

What Will Happen At The IRS If The Government Shuts Down?

Only the most basic functions will remain operating in light of the critical April 18 filing deadline.

Operations Available

During the Government Shutdown

Tax processing operations are continuing at this time for electronically filed 1040 series tax returns.

Tax refunds will be issued as returns are processed, so most tax refunds for electronically filed returns will be issued. Taxpayers should expect longer than normal delays for paper filed tax refunds. IRS e-file and Free File remain the best way of getting tax refunds quickly and are unaffected by the government shutdown.

Tax deposits and payments are being processed, both for electronic and paper tax returns. Taxpayers should continue to make these payments as normal.

The IRS will continue accepting all tax returns during this period. In addition to individual e-file, business e-file will remain open as well and refunds for business e-filers will continue.

For individual taxpayers seeking assistance, the regular 800-829-1040 telephone line remains open. However, this line will not accept calls unrelated to individual tax issues, and taxpayers should anticipate much longer wait times. As an alternative, taxpayers are strongly encouraged to use www.IRS.gov.

The IRS website, www.IRS.gov, will remain available, although some interactive features may not be available. ”Where’s My Refund” will remain available on the IRS website for people to check on the status of their tax refunds.

If people have already filed their return and the IRS has started processing their tax return, they generally will see no delays in their refunds being issued. The best source for information will be checking "Where's My Refund" at www.IRS.gov.

The IRS Free File partners will continue to accept and file tax returns.

Tax software companies will continue to accept and file tax returns.

The IRS Volunteer Income Tax Assistance Program (VITA) and the Tax Counseling for the Elderly (TCE) Programs will remain open in many locations to offer free tax help for taxpayers who qualify. Many Low-Income Taxpayer Clinics will remain open.

Many automated IRS notices will continue to be mailed.

Operations Closed

Or Unavailable During a Government Shutdown

(Partial Listing)

Taxpayer Assistance Centers (TACs) where taxpayers walk-in for service will be closed. People with scheduled appointments during the government shutdown will have to reschedule.

While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date.

No live telephone assistance will be available for non-1040 series business taxpayers on the 800-829-4933 number.

No live telephone assistance will be available for exempt organizations, retirement plans administrators or governmental entities that use the 877-829-5500 number.

The phone number for victims of identity theft (800-908-4490) will not be available.

The IRS will not be working any paper correspondence during this period.

Most IRS legal counsel services will stop.

Information for Tax Practitioners

· The e-Help Desk will be available for e-file error reject code assistance only -- Monday through Friday from 6:30 a.m. to 5:00 p.m. Central Time.

· The Practitioner Priority Service line will not be available.

· Quick Alerts will be issued as necessary via the normal e-mail process.

FYI: IRS News Events (4-08-2011)

2011-04-08T09:24:00.001-07:00

Hello Everyone,

I hope all is going well with you!

Below is the second edition of the IRS News Events I have sent to you. (I have been adding additional names and email addresses to the original "email addresses only" list originally provided to me). If you did not receive the first IRS News Events I sent on March 21st and would like a copy, let me know and I'll be happy to email it to you.

I wish you all a very successful filing season!

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

SBSE Communications, Liaison & Disclosure

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

Please share the below information with your members and colleagues. Select the underlined links to see the full article.

Newsroom April 8, 2011

Don't Fall Prey to the 2011 Dirty Dozen Tax Scams
IR-2011-39, April 7, 2011 Hidden offshore accounts, phishing and return preparer fraud are just the start.

Prepared Remarks of IRS Commissioner Doug Shulman at the National Press Club
IR-2011-38, April 6, 2011 IRS Commissioner Shulman delivers prepared remarks titled "On the Horizon: A Vision for the Future of Our Tax System."

IRS Issues Guidance on Telecommunication Network Assets; Industry Issue Resolution Program Resolves Disputes
IR-2011-36, April 4, 2011 The IRS announced that it has published guidance for taxpayers in the telecommunications industry with the aim of resolving disputes involving the capitalization and depreciation of network assets. See Rev Proc-2011-28, Rev Proc-2011-27 and Rev Proc-2011-22 for additional guidance.

Treasury Dept. and IRS Extend the Deadline for Filing Form 8939 Beyond the Previously Set April 18; Guidance to Follow with a New Deadline
IR-2011-33, March 31, 2011 The Treasury Department and the IRS announced that Form 8939 is not due on April 18, 2011, and should not be filed with the final Form 1040 of persons who died in 2010. New guidance will be issued.

IRS Expands and Makes Permanent Its Compliance Assurance Process (CAP) for Large Corporate Taxpayers
IR-2011-32, March 31, 2011 IRS officials announced that the six-year-old Compliance Assurance Process (CAP) pilot program for large corporate taxpayers is being expanded and made permanent.

IRS Issues Interim Guidance on Informational Reporting of Employer-Sponsored Health Coverage
IR-2011-31, March 29, 2011 The Internal Revenue Service today issued interim guidance to employers on informational reporting on each employee's annual Form W-2 of the cost of the health insurance coverage they sponsor for employees.

IMRS Hot Issues - April 1, 2011

Contact information change for the International CAF Function; New Effort to Help Struggling Taxpayers Get a Fresh Start; Changes Made to Lien Process; Allowable Living Expense Standards for 2011 Updated and more . . .

IRS Technical Guidance

Notice 2011-32 designates the Japan earthquake and tsunami occurring in March 2011 as a qualified disaster for purposes of § 139 of the Internal Revenue Code. Notice 2011-32 will be published in Internal Revenue Bulletin 2011-18, dated May 2, 2011.

Notice 2011-26 informs tax return preparers of administrative exemptions from the new electronic filing requirement under section 6011(e)(3) of the Internal Revenue Code and §§ 1.6011-7 and 301.6011-7 of the Regulations on Procedure and Administration.

Notice 2011-27 solely for calendar year 2011, provides transitional guidance relating to the new electronic filing requirement under section 6011(e)(3) of the Internal Revenue Code and corresponding regulations, specifically regarding the filing restrictions placed upon specified tax return preparers by that Code section and § 301.6011-7(a)(4)(i).

Revenue Procedure 2011-25 provides guidance to specified tax return preparers regarding the time for filing and manner (form and content) of requests for waiver of the electronic filing requirement due to undue hardship, under section 6011(e)(3) of the Internal Revenue Code and §§ 1.6011-7 and 301.6011-7 of the Regulations on Procedure and Administration.

Revenue Procedure 2011-26 provides guidance on the new 100 percent bonus depreciation from the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Specifically it explains the eligibility requirements for qualified property to be eligible for the 100 percent additional first year depreciation deduction.

TD 9518 Final Regulations provides guidance on the requirement for "specified tax return preparers" to file individual income tax returns using magnetic media pursuant to section 6011(e)(3) of the Internal Revenue Code (Code). The publication and effective date is March 30.

Events

National/Local Phone Forums and Webinars for Practitioners

· Accessing IRS Records, April 27, 2011

IRS Nationwide Tax Forums

The first forum will be held in Atlanta, Georgia, starting June 28 - 30.

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 IRS.gov.

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer.Henrie-Brown@irs.gov and request removal of your name.

IRS News Events from Stakeholder Liaison (3-21-2011)

2011-03-21T12:25:00.000-07:00

Hello Everyone,

I hope all is going well with you! Below is some IRS news from Stakeholder Liaison.

FYI: Underlined blue font denotes web links to related web pages on IRS.gov.

I was given a list of email addresses (without associated names) for James' Kinsey's former practitioner distribution list. Please feel free to email me if you would like me to associate your name with your email address. Thank you for your time and consideration in this matter.

Have a great day and a successful filing season!

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

SBSE Communications, Liaison & Disclosure

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

_______________________________________________________________________________________________________________________

Newsroom March 21, 2011

IRS Releases 2010 Data Book
IR-2011-27, March 14, 2011 — The Internal Revenue Service today announced the release of the 2010 IRS Data Book, an annual snapshot of agency activities for the fiscal year.

More Tax Refunds Paid, IRS Reminds Filers About Savings Bond Option
IR-2011-26, March 14, 2011 — Taxpayers have more options on how they can receive their refunds this year, including more savings bond options. Filing season statistics for the week ending March 4 are included.

IRS Issues Information on 2011 Offshore Voluntary Disclosure Initiative in Eight Foreign Languages
IR-2011-25, March 8, 2011 — The IRS today announced that it has made available information in eight foreign languages about the 2011 Offshore Voluntary Disclosure Initiative (OVDI) for those taxpayers with undisclosed offshore accounts. The agency took this step to reach taxpayers whose primary language may not be English.

IRS Debunks Frivolous Tax Arguments
IR-2011-23, March 4, 2011 — Employing any of these arguments could result in a $5,000 penalty.

Other News

Return Preparer Update

The number of PTINs issued since September 2010 is over 692,000. David Williams, will be appearing in an IRS Live Webinar on March 30 to discuss the latest return preparer news. More information is available here or in news release IR-2011-22 issued on March 4, 2011. Also, the New Requirement for Tax Return Preparer Frequently Asked Questions (FAQs) has recently added six new FAQs.

Programming Issue with Small Proportion of First Time Homebuyer Credit Claims

The IRS is aware of a programming issue delaying the processing of a small percentage of returns for taxpayers who must repay the First Time Homebuyer Credit. The issue affects taxpayers reporting a sale or disposition of the home that qualified for the credit, which in most cases means taxpayers must repay the credit. The delay also affects some taxpayers who bought a home in 2008 making a repayment higher than the required annual amount (typically $500). For more on how to deal with this issue see the above attached QuickAlert 1040 e-file (Legacy) Form 5405. (This March 18th QuickAlert will eventually be posted in the QuickAlerts Library on IRS.gov.

Speak Up! Join the Taxpayer Advocacy Panel

The IRS is seeking volunteers to serve on the Taxpayer Advocacy Panel (TAP), a Federal Advisory Committee that listens to taxpayers, identifies taxpayers’ issues and makes suggestions for improving IRS services and customer satisfaction. Apply before the April 29, 2011 deadline!

IRS Holds Saturday Open House on March 26 to Help Taxpayers

IR-2011-19, Feb. 23, 2011

WASHINGTON — The Internal Revenue Service announced today that nearly 100 IRS offices will be open on Saturday, Feb. 26, and Saturday, March 26, to help taxpayers. The location of participating offices is listed on IRS.gov.

2011 Form 941 and instructions now online

The 2011 Form 941, Employer’s Quarterly Federal Tax Return and instructions are now available on IRS.gov.

SSA/IRS Reporter goes green

The SSA/IRS Reporter is now only available online.

New editions will be posted on IRS.gov by the middle of March, June, September and December.

Desktop calendar tool

The free IRS Calendar Connector makes it easy to remember important tax and deposit deadlines on a daily, weekly or monthly basis.

IMRS Hot Issues - March 3, 2011

Individual Income Tax Transcripts Can Now Be Ordered Online, First-Time Homebuyer Credit Repayment and more

IRS Technical Guidance

REG-153338-09 was published in the Federal Register on March 18. It pertains to the period for submission to the IRS of taxpayer authorizations permitting disclosure of returns and return information to third-party designee.

Earthquake Relief for Japan

Many individuals, businesses and charitable organizations wish to provide assistance to the victims of Japan's recent earthquake. Consult Disaster Relief Resources for Charities and Donors on IRS.gov to get information about how to provide assistance to victims through a charitable organization.

Contributions to domestic tax-exempt, charitable organizations that provide assistance to individuals in foreign lands qualify as tax-deductible contributions for federal income tax purposes, provided that the U.S. organization has control and discretion over the use of funds.

Events

National/Local Phone Forums and Webinars for Practitioners

Business Taxes for the Self-Employed: The Basics - March 29, 2011
Requirements for Federal Tax Return Preparers – March 30, 2011

EP/EO Presents

Form 5330 - Completion and Processing Tidbits - March 24, 2011

TE/GE

Easy, Low Cost Ways to Start Your Small Business Retirement Plan – April 7, 2011

IRS Nationwide Tax Forums

San Jose, California will be one of six locations hosting the IRS Nationwide Tax Forum this year. The forum will be held in San Jose on August 9th through August 11th, with a pre-registration deadline of July 26, 2011.

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 IRS.gov

If you would like to discontinue receiving my local Stakeholder Liaison e-mails, please e-mail me at Jennifer.Henrie-Brown@irs.gov and request removal of your name.

From: Henrie-Brown Jennifer A
Sent: Friday, March 04, 2011 4:46 PM
To: Kinsey James R
Cc: Lee Evelyn Dyson; Peneau Joyce H
Subject: RE: IRS News Events from Stakeholder Liaison

Hello Everyone,

As James Kinsey mentioned in his below email, I am a Stakeholder Liaison Specialist and I currently work in the Oakland Federal building. I am very interested in assisting you and will provide you with periodic IRS news and updates, etc. Please feel free to contact me if you have any questions and/or concerns. As Stakeholder Liaison Specialists, we are very interested in hearing about federal tax related issues and concerns regarding systemic problems with policies, practices and procedures. I have attached a flyer with information about our Issue Management Resolution System (IMRS) which also contains my contact information.

I look forward to keeping the lines of communication open between us. Please feel free to email and/or call me.

Have a fabulous weekend!

Jennifer Henrie-Brown, ID #94-07690

Stakeholder Liaison Specialist

SBSE Communications, Liaison & Disclosure

510-637-2199/ fax 510-637-2434

Jennifer.Henrie-Brown@irs.gov

From: Kinsey James R
Sent: Friday, March 04, 2011 1:38 PM
To: Kinsey James R
Cc: Lee Evelyn Dyson; Peneau Joyce H
Subject: IRS News Events from Stakeholder Liaison

Practitioner Email Group:

Goodnews! I have a new position in Oakland as Supervisor Stakeholder Liaison and this will be my last email to you in my role as Stakeholder Liaison in San Jose.

However, you will be in good hands! Jennifer Henrie-Brown, Stakeholder Liaison will be helping you until we can fill the position in San Jose permanatly. Her phone number is 510-637-2199 and email is Jennifer.Henrie-Brown@irs.gov

Please welcome her.

Please share with your members and colleagues. Select the blue links to see the full article.

Newsroom March 4, 2011

IRS Has $1.1 Billion for People Who Have Not Filed a 2007 Income Tax Return
IR-2011-21, Feb. 28, 2011 — Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced today. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.

IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to Lien Process
IR-2011-20, Feb. 24, 2011 — The IRS announced a series of new steps to help people and businesses pay back taxes and avoid tax liens.

More Business Package Mailings End Following Growth of e-File

Business taxpayers will no longer receive certain tax packages in the mail from the IRS. Most importantly, the Form 941, Employer’s Quarterly Federal Tax Return will no longer be mailed.

IRS provides new look to certain collection notices

The newest release of redesigned taxpayer notices includes 12 tax collection notices featuring the Service’s new design and plain language standards. The redesigned tax delinquent account (TDA) notices present a clear, clean line and use best practices to aid in comprehension and readability. Redesigned TDA notices include CPs 501, 503, 504, 504B, 521, 523, 601, 603, 604, 604B, 621 and 623.

IRS Headliners & Technical Guidance

Headliner Volume 309, Feb 23, 2011

The Internal Revenue Service released the 2011 update to the Allowable Living Expense Standards on March 1.

Revenue Procedure 2011-21 provides the depreciation deduction limitations for owners of passenger automobiles (including trucks and vans) first placed in service during calendar year 2011 and the amount to be included in income by lessees of passenger automobiles first leased during calendar year 2011.

Notice 2011-19 provides guidance regarding when securities of the employer are readily tradable on an established securities market or readily tradable on an established market for purposes of certain provisions of the Internal Revenue Code relating to employer securities held by certain qualified retirement plans.

Notice 2011-18 provides transitional relief from information reporting requirements in section 6045B of the Internal Revenue Code (“Code”) that apply to issuers of stock with respect to organizational actions that affect the basis of the stock.

Notice 2011-14 providing guidance on the federal tax consequences of payments made to or on behalf of financially distressed homeowners under programs established pursuant to the Treasury Department’s Housing Finance Agency Innovative Fund for the Hardest-Hit Housing Markets and the Department of Housing and Urban Development’s Emergency Homeowners’ Loan Program.

Events

National/Local Phone Forums and Webinars for Practitioners

Business Taxes for the Self-Employed: The Basics - March 29, 2011
Requirements for Federal Tax Return Preparers – March 30, 2011

EP/EO Presents

EP Technical Guidance - March 4, 2011
Form 5330 - Completion and Processing Tidbits - March 24, 2011

TE/GE

Easy, Low Cost Ways to Start Your Small Business Retirement Plan – April 7, 2011

IRS Nationwide Tax Forums

The first forum will be held in Atlanta, Georgia, starting June 28 - 30, with pre-Registration starting June 14, 2011.

IRS QUICK ALERTS! http://www.irs.gov/taxpros/providers/article/0,,id=97623,00.html

QuickAlerts for Tax Professionals

March 3, 2011

e-file Resources

QuickAlerts Library

QuickAlerts Article

QuickAlerts Brochure

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Software Developers

IRS.gov Home

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Error Reject Code
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Subject: 1040 e-file (Legacy) - Form 8941 – Error Reject Code 0010, SEQ 0090

ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs

An issue has been identified where ERC 0010 is setting erroneously on SEQ 0090 for Form 8941 when less than the full 12 positions are entered in variable format. Until the programming can be corrected, you should use the full 12 positions of SEQ 0090 (ex. 00000001000+) to avoid setting ERC 0010.

A subsequent QuickAlert will be issued when the problem has been resolved.

We apologize for any inconvenience this may cause.

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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 IRS.gov.

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

IRS News Events from Stakeholder Liaison

2011-03-04T13:38:00.001-08:00

Practitioner Email Group:

Goodnews! I have a new position in Oakland as Supervisor Stakeholder Liaison and this will be my last email to you in my role as Stakeholder Liaison in San Jose.

Please welcome her.

Please share with your members and colleagues. Select the blue links to see the full article.

Newsroom March 4, 2011

More Business Package Mailings End Following Growth of e-File

Business taxpayers will no longer receive certain tax packages in the mail from the IRS. Most importantly, the Form 941, Employer’s Quarterly Federal Tax Return will no longer be mailed.

IRS provides new look to certain collection notices

IRS Headliners & Technical Guidance

Headliner Volume 309, Feb 23, 2011

The Internal Revenue Service released the 2011 update to the Allowable Living Expense Standards on March 1.

Events

National/Local Phone Forums and Webinars for Practitioners

Business Taxes for the Self-Employed: The Basics - March 29, 2011
Requirements for Federal Tax Return Preparers – March 30, 2011

EP/EO Presents

EP Technical Guidance - March 4, 2011
Form 5330 - Completion and Processing Tidbits - March 24, 2011

TE/GE

Easy, Low Cost Ways to Start Your Small Business Retirement Plan – April 7, 2011

IRS Nationwide Tax Forums

The first forum will be held in Atlanta, Georgia, starting June 28 - 30, with pre-Registration starting June 14, 2011.

IRS QUICK ALERTS! http://www.irs.gov/taxpros/providers/article/0,,id=97623,00.html

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 IRS.gov.

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

Small Business Tax Assistance Days

2011-03-02T15:56:00.001-08:00

Practitioners email Group:

This is one of those rare times I will send you attachments. I want to thank all the practitioners that are volunteering to teach and to answer question for these Small Business owners.

If you have clients that need to know how to keep good record send them to the workshops. They can register or just walk in. See attched flyer for details. Thanks for your support.

FREE! Small Business Tax Assistance Days

Learn about Small Business Tax Updates and Resources

Workshops: Sole Proprietors (Schedule C) & Business Entities (Corp, S Corp, LLC/LLP, Partnership)

Date(s): Saturdays, March 5^th and March 12^th2010

Registration: 9:00 AM – 9:30 AM

Sole Proprietors: 9:30 AM – 11:30 AM

Business Entities: 1:00 PM – 3:00 PM

1 on 1 Tax Consultations: 10:00 AM – 2:00 PM

Networking: 10:00 AM – 2:00 PM

IRS Agents and Tax Professionals available for questions

FREE!

Location: work2future, 1290 Parkmoor Ave., San Jose, CA 95126

Contact: work2future1-877-880-1222, or James Kinsey 408-817-6842

E-mail: mark.vasquez@sanjoseca.gov or James.R.Kinsey@irs.gov for more information

www.BusinessOwnerSpace.com

WALK in WELCOME

Pre-register by completing the following form and return by email to

mark.vasquez@sanjoseca.gov or by fax (Attn: BOS) at 408-293-9052 by

February 28 for March 5th event or March 7 for March 12 event.

Business Name____________________________ Phone # ________________________

Contact person_________________________ Email: _____________________________

Mailing Address ___________________________________________________________

City _______________________ State _________________ Zip ___________________

Date(s) attending: March 5 _____ March 12 _____

I will attend the following (please check all that apply):

Sole Proprietors ____ Business Entities Workshop ____

10-12 One on One Tax Consulting ____ 12-2 One On One Tax Consulting ____

Resource ____ Networking ____

Sponsored by Businessownerspace.com partners: AnewAmerica, eCenter, Filipino American Chamber of Commerce, Hispanic Chamber of Commerce Silicon Valley, Internal Revenue Service, Meriwest Credit Union, Northern California Minority Business Enterprise Center, San Jose Redevelopment Agency - San Jose Enterprise Zone Program, San Jose Silicon Valley Chamber of Commerce, SCORE, Silicon Valley Black Chamber of Commerce, Technology Credit Union, Wells Fargo, Women's Initiative for Self Employment, and work2future.

James R. Kinsey

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601

IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start - Major Changes Made to Lien Process

2011-02-24T13:59:00.001-08:00

IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start;

Major Changes Made to Lien Process

IR-2011-20, Feb. 24, 2011

WASHINGTON — In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities.

The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.

“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”

Today’s announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:

· Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.

· Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.

· Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.

· Creating easier access to Installment Agreements for more struggling small businesses.

· Expanding a streamlined Offer in Compromise program to cover more taxpayers.

“These steps are in the best interest of both taxpayers and the tax system,” Shulman said. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.”

This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.

Today’s announcement comes after a review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate.

Tax Lien Thresholds

The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances.

The IRS plans to review the results and impact of the lien threshold change in about a year.

A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.

A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer's credit rating, so it is critical to arrange the payment of taxes as quickly as possible.

“Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”

Tax Lien Withdrawals

The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.

Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.

In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.

Direct Debit Installment Agreements and Liens

The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:

· Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.

· The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.

· The IRS will also withdraw liens on existing Direct Debit Installment Agreements upon taxpayer request.

Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.

In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.

“We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”

Installment Agreements and Small Businesses

The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.

Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.

The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.

Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.

“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said, “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”

Offers in Compromise

The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.

This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.

OICs are subject to acceptance based on legal requirements. 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. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

Related Items:

· IRS Begins Tax Season 2009 with Steps to Help Financially Distressed Taxpayers; Promotes Credits, e-File Options (IR-2009-2)

· IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell (IR-2008-141)

―30―

Automated Underreporting Soft Notices (CP 2057)

2011-02-24T07:49:00.001-08:00

Practitioners email grourp:

I received a couple calls about the CP2057 letter. Below is research from internal and external sources. Please help me get the word out to all practitioners. Thanks

INTERNAL REVENUE SERVICE, ADVISORY COUNCIL, NOVEMBER 17, 2010

http://www.irs.gov/taxpros/article/0,,id=231501,00.html

3. Automated Underreporting Soft Notices (CP 2057)

The primary goal of the Automated Underreporting (AUR) Soft Notice program is to correct taxpayer behavior on future tax returns. The secondary goal is the collection of any additional tax due on the current tax return. Our recommendations provide suggestions for redesigning the soft notice by improving its readability and usefulness to both the taxpayer and tax practitioner. The Subgroup also suggests that the notice include an educational component for the taxpayer, and that the IRS develops a procedure to inform the tax practitioner community of the soft notice program.

BOTTOM LINE        Bottom Line
Volume 3, Issue 39                            St. Louis, MO
December 05, 2009
1. AUR Soft Notice Test - Tax Year 2008
ISSUE:AUR is testing a soft notice and other Campus areas may receive taxpayer
contacts.
CHANGE(s):In an effort to reduce the Tax Gap, The Automated Underreporter
Program is again conducting a soft notice test of approximately 30,000 (14,500
to W & I taxpayers are being mailed with Austin AUR Campus contact information
and 15,500 to SB/SE taxpayers are being mailed with Philadelphia AUR Campus
information). These notices were mailed Monday, November 30, 2009. These CP
2057s carry unique, dedicated toll-free AUR telephone numbers – TO BE USED ONLY
FOR INQUIRIES for the CP 2057.

Tax Compliance: IRS Launching Test of Automated Notices Asking Taxpayers to Correct Underreporting * BNA Daily Tax Report, Daily Tax Report -The Bureau of National Affairs, Inc. Federal Tax & Accounting- September 4, 2008
Tax Compliance: IRS Launching Test of Automated Notices Asking Taxpayers to Correct Underreporting The Internal Revenue Service Sept. 3 confirmed that it will be launching a pilot program this fall to send more than 30,000 automated notices to taxpayers in cases where the agency has discovered there may be underreporting of income or unreported income. "The Automated Soft Notice (CP2057) is a test involving approximately 31,000 notices mailed this fall. If the test results indicate limited underreporting in the subsequent year and self correction of unreported income, we hope to expand the use of this notice," IRS spokeswoman Nancy Mathis said in a statement e-mailed to BNA. According to IRS, the soft notice is automatically generated when there is a discrepancy between income listed on third-party information returns and the return itself. Examples of third-party returns would be Forms W-2 and Forms 1099, IRS said. Taxpayers Asked to Amend or Correct Returns. Rather than proposing specific amounts owed to the government, the CP2057 notice asks the taxpayers to file an amended return or work with their employer to correct the information return. "A very small portion of our staff is assisting in this test--again, it is designed as an automated notice," the e-mailed statement emphasized. IRS said it hopes this will alleviate the need for prolonged communications between taxpayers and the government. "We believe this approach will allow taxpayers to correct underreporting issues without having to correspond extensively with the IRS, thus benefiting both the taxpayer and the Service," the agency said in the statement. IRS said it would continue to issue CP2000 notices, which propose changes to income, credits, and deductions, calling these "an important component of our enforcement efforts. [We] expect to continue issuing these notices as appropriate, even if we expand the use of CP2057."

Tax Compliance: IRS Launching Test of Automated Notices Asking Taxpayers to Correct Underreporting * BNA Daily Tax Report, Daily Tax Report -The Bureau of National Affairs, Inc. Federal Tax & Accounting- September 4, 2008

Tax Compliance: IRS Launching Test of Automated Notices Asking Taxpayers to Correct Underreporting

The Internal Revenue Service Sept. 3 confirmed that it will be launching a pilot program this fall to send more than 30,000 automated notices to taxpayers in cases where the agency has discovered there may be underreporting of income or unreported income.

"The Automated Soft Notice (CP2057) is a test involving approximately 31,000 notices mailed this fall. If the test results indicate limited underreporting in the subsequent year and self correction of unreported income, we hope to expand the use of this notice," IRS spokeswoman Nancy Mathis said in a statement e-mailed to BNA.

According to IRS, the soft notice is automatically generated when there is a discrepancy between income listed on third-party information returns and the return itself. Examples of third-party returns would be Forms W-2 and Forms 1099, IRS said.

Taxpayers Asked to Amend or Correct Returns.

Rather than proposing specific amounts owed to the government, the CP2057 notice asks the taxpayers to file an amended return or work with their employer to correct the information return.

"A very small portion of our staff is assisting in this test--again, it is designed as an automated notice," the e-mailed statement emphasized. IRS said it hopes this will alleviate the need for prolonged communications between taxpayers and the government.

"We believe this approach will allow taxpayers to correct underreporting issues without having to correspond extensively with the IRS, thus benefiting both the taxpayer and the Service," the agency said in the statement.

IRS said it would continue to issue CP2000 notices, which propose changes to income, credits, and deductions, calling these "an important component of our enforcement efforts. [We] expect to continue issuing these notices as appropriate, even if we expand the use of CP2057."

Michelle E. Phillips, CPA, IRS Sends New Notices

Beginning in October 2008, the IRS will issue a new type of compliance letter called a CP 2057. The IRS will mail the CP 2057s to about 31,000 taxpayers with apparent underreported income for the 2007 tax year. The CP 2057s will:

Inform taxpayers that there appears to be an income discrepancy based on information reports received by the IRS.

Instruct taxpayers to file a Form 1040X to correct their return if the information shown on the notice is correct.

The CP 2057 generally replaces the IRS Letter 3957(CG), which became obsolete in February 2008. For many years, the IRS used the 3957 to ask taxpayers to reconcile income discrepancies. Note: Both the IRS Letter 3957(CG) and the CP 2057 differ form the CP 2000, which actually proposes changes to income, payments, or credits.

If a taxpayer receives a CP 2057 and the return is correct, the taxpayer need to do nothing. However, if the tax return is incorrect, the CP 2057 asks taxpayers to correct errors with employers (for W-2 discrepancies) and others (for 1099, K-1, etc., discrepancies).

It explains to taxpayers that the IRS will scrutinize the following year return to see that similar problems crop up. The CP 2057 requires taxpayers to do the leg work in that it does not always specifically list the type of income discrepancy.

The new CP 2057 is automatically generated using an IRS system of computer-matching returns with W-2, 1099, K-1, and other documents a system the IRS also uses for the 2000 notices.
The IRS hopes that the automated nature of the CP 2057s will allow it to run the program at a low cost.

By Arden Dale , The Wall Street Journal

This fall, more taxpayers won't be able to say they weren't given fair warning.

The Internal Revenue Service is ramping up efforts to mail out notices in October to a wider group of people, noting that they may not be reporting enough income on their tax returns.

The warning letter differs from one the IRS has been sending for years, which suggests specific changes to income, payments, credits, deductions or other parts of the return.

That letter, known as CP 2000, proposes an adjustment to the return and may ask the taxpayer to pay additional tax. Nearly 3.5 million such letters were sent for 2007, and will continue to be sent out.

The new letter, called a CP 2057, tells recipients they may be underreporting, and instructs them to double-check parts of the return and file an amended return Form 1040X if in error. It doesn't, however, specify the amount of additional tax that is owed.

The push is part of the IRS's desire to narrow the so-called tax gap, or the amount of uncollected taxes. Some tax experts view the new notices as helpful reminders, while others say they will rattle many taxpayers. "If you get one of these things, you should respond," says Robert E. McKenzie, a partner at Arnstein & Lehr, a law firm in Chicago.

The new warnings are "a major rollout by the IRS, using a totally different form than in the past," says Michael O'Keefe, a manager of tax research at H&R Block.

A CP 2057 would most likely show income omitted or an expense such as mortgage interest. It might note the discrepancy if the taxpayer reported $10 in interest income but information documents showed an interest income of $200.

It asks the taxpayer to work with employers and others to correct errors in W2s, 1099s, K1s and other documents. Finally, it says the IRS will scrutinize the following year's return to see that similar problems don't crop up. Roughly 31,000 of the CP 2057 letters will go out in the fall, and the IRS will expand their use depending on how effective they are in getting people to correct their own returns.

The new notice is automatically generated using an IRS system of computer-matching returns with 1099, W2, K1 and other documents -- a system the IRS also uses for the notices it currently sends.

The IRS hopes that the automated nature of the notices will allow it to run the program at low cost. It is designating only a tiny portion of its staff to work on it, with the aim that taxpayers will be to able to resolve underreporting issues without having to correspond extensively with the IRS.

But some tax experts question whether the program will be effective. Robert Kerr, senior director of government relations at the National Association of Enrolled Agents, wondered how the IRS is going to field all the calls from taxpayers with concerns about the notices.

The warning letters mark a significant shift in the IRS's strategy for recovering taxes, according to Thomas P. Ochsenschlager, vice president of taxation at the American Institute of Certified Public Accountants. By giving taxpayers lead time to correct an error without actually being penalized, it "avoids the 'gotcha!' situation that happens so often," particularly for small-business owners who file Schedule Cs. The IRS has identified Schedule Cs as being particularly rife with potential errors.

James R. Kinsey

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601