Filin Season Letter

January 12, 2011

 

 

Dear California Tax Practitioner,

 

As the IRS Stakeholder Liaison (SL) Area Manager for California, I want to thank you for your past support and ask for your continued partnership with me and your local Stakeholder Liaisons. We are proud to be in our sixth year as the practitioners' gateway to the IRS. We have had a busy year, holding practitioner events, conducting National Phone Forums and webinars, and establishing Web-based tax centers.

 

Practitioners provided our local SLs many suggestions on how to improve IRS systems. This partnership strengthens our mutual commitment to ensuring taxpayer compliance with federal tax responsibilities.   SL is committed to getting you the information you need. Although we do not answer tax law questions or have access to your clients' tax accounts, we can steer you in the right direction.   

 

How SL can help you navigate the IRS

I encourage you to use our free products, as this is the best way to stay up to date with what is happening at the IRS. For instance subscribe to e-News for Tax Professionals for weekly news briefs, and check out Key Messages for Tax Professionals, which is updated on a quarterly basis.  We also offer practitioner "tax centers", "IRS Tax Calendar widget" and other "widgets" that link from your organization's Web site to ours, making it easy to find frequently-used Web pages.

 

You may also join our free, educational National Phone Forums and Webinars from the convenience of your office, and check out IRS Live where tax professionals are encouraged to watch the free live webinar and submit questions by e-mail during the webinar.  Our new IRS Video Portal is a great resource as well to view video clips of tax topics, archived versions of live panel discussions and webinars, as well as audio archives of national phone forums.

 

And be assured that IRS.gov has more than just forms and publications. You will find the latest news, online tools, research services, guidance and contact information.  IRS en Español, the IRS.gov Spanish counterpart, is available for translated information.   

 

How to keep up-to-date with the New Return Preparer Regulations

IRS has a new Return Preparer Office which will be led by David R. Williams. This office is responsible for implementing the new requirements. Read New Tax Preparer Requirements - Overview to keep current on the implementation of the three phases. For information on Phase 1: Apply for or renew your PTIN; check out our Web page for New PTIN Requirements for Tax Return Preparers.  We have a Web page with answers to New Requirements for Tax Return Preparers: Frequently Asked Questions. For additional PTIN information, contact the IRS Tax Professional PTIN Information Line at 877-813-PTIN (7846); Monday-Friday, 8 a.m. -5 p.m. (CST).

 

Check out Many Tax Return Preparers Required to Use IRS e-file Beginning in 2011 for information on the new e-file rules and learn how to become an authorized e-file provider.

 

How you can help your clients and colleagues

We introduced the Issue Management Resolution System four years ago and have had more than a thousand IMRS issues submitted. Use IMRS to let us know when you have identified a problem or simply have a suggestion to improve our processes.  Some of the successes are available in our IMRS report on IRS.gov. 

 

Help us find ways to further our partnership and work with us to reach more practitioners through joint events or webinars. We invite you to include IRS information in your newsletter and Web site, post a tax center on your Web site or volunteer to teach a Small Business Tax Workshop in your community. Share what you learn with your colleagues.   

 

Lastly stay in touch with your local SL. If you need assistance in California, contact one of the Stakeholder Liaison employees below.

 

 

James R Kinsey San Jose	Gerry Kelly-Brenner Oakland	Keith Kershner Fresno
Phone: 408-817-6842	Phone: 510-637-3036	Phone: 213-435-8755
Fax: 408-817-4601	Fax: 510-637-2434	Fax: 559-443-7598
Email: James.R.Kinsey@irs.gov	Email: Geraldine.Kelly-Brenner@irs.gov	Email: Keith.D.Kershner@irs.gov

 

 

If you prefer, you may also contact me, Joyce Peneau, Western Area, Area Manager for Stakeholder Liaison, at 510-637-4360 or Joyce.H.Peneau@irs.gov.

 

Filing season can be a challenging and stressful time. Together, we can make it easier. Use our free tools, products, and services, and raise your issues and concerns through your local Stakeholder Liaison. 

 

 

Sincerely,

 

Joyce Peneau Stakeholder Liaison Area Manager, Western Area. Area

Joyce.H.Peneau@irs.gov.

 

 

 

Nationwide Tax Forums Online and Coming to San Jose

Practitioner Email Group:

       

        The IRS National Tax Forum is coming to San Jose >Tuesday, August 9 - Thursday, August 11, 2011

Stay tuned for registration information.

 

 

       The IRS Nationwide Tax Forums Online (NTFO) provides information for tax professionals from the speakers at the IRS Nationwide Tax Forums. Another cost-effective way to fulfill mandatory educational requirements

 

 

Visit the IRS Nationwide Tax Forums Online at  http://www.irstaxforumsonline.com

 

        NTFO available on your computer 24/7Audit courses for free! 

        Receive CPE Credit! 22 seminars to choose from No Travel

        CostFit into a busy schedule

        Do at your own pace 

        Download Information

        See Interactive Video View and Print Power Points Flexibility! 

        Great Value!  Instant results

 

Visit http://www.irstaxforum.com for information on the upcoming 2011 IRS Nationwide Tax Forum

 

We also encourage you to attend the IRS Nationwide Tax Forums for the complete forum experience. You can earn CPE credits, network with tax professionals and IRS staff, get a case resolved in the Case Resolution Room, and get hands-on help in the IRS Preparer Services Room.

 

City	Dates
Atlanta, GA	Tuesday, June 28 - Thursday, June 30, 2011
Orlando, FL	Tuesday, July 12 - Thursday, July 14, 2011
Dallas, TX	Tuesday, July 26 - Thursday, July 28, 2011
San Jose, CA	Tuesday, August 9 - Thursday, August 11, 2011
Las Vegas, NV	Tuesday, August 16 - Thursday, August 18, 2011
National Harbor, MD (Washington DC Area)	Tuesday, August 30 - Thursday, September 1, 2011

 

James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601

IRS News Events from Stakeholder Liaison - 7 January 2011

Practitioner email Group:

 

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

 

Happy New Year!

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Newsroom                                                                             January 7, 2011

 

National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Tax Reform, Collection Issues, and Implementation of Health Care Reform
IR-2011-2, Jan. 5, 2011 — National Taxpayer Advocate Nina E. Olson released her annual report to Congress.

IRS Kicks Off 2011 Tax Season with Deadline Extended to April 18; Taxpayers Impacted by Recent Tax Breaks Can File Starting in Mid- to Late February
IR-2011-1, Jan. 4, 2011 — The IRS opened the 2011 tax filing season by announcing that taxpayers have until April 18 to file their returns and reminded taxpayers to e-file as the best way to ensure accurate tax returns and get faster refunds.

IRS Offers New Guidance on FSA and HRA Debit Cards
IR-2010-128, Dec. 23, 2010 — FSA and HRA participants can continue using debit cards to buy prescribed over-the-counter medicines, if requirements are met.

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IRS Technical Guidance

 

Notice 2011-06 provides guidance regarding the implementation of new Treasury regulations governing tax return preparers regarding the requirement to obtain a preparer tax identification number (PTIN), identifies the forms that qualify as tax returns or claims for refund for purposes of those regulations, and provides interim rules applicable to certain PTIN holders during the implementation phase of the new regulations governing tax return preparers.

 

Revenue Procedure 2011-13 updates Rev. Proc. 2010-15 and identifies circumstances under which the disclosure on a taxpayer's income tax return with respect to an item or a position is adequate for the purpose of reducing the understatement of income tax under section 6662(d) of the Internal Revenue Code and for the purpose of avoiding the tax return preparer penalty under section 6694(a) with respect to income tax returns.

 

Notice 2011-5 provides guidance on use of health FSA and HRA debit cards to purchase over-the-counter medicines or drugs that are prescribed. This document modifies Notice 2010-59, 2010-39 IRB 396 which did not allow the use of health FSA and HRA debit cards to purchase over-the-counter medicines or drugs after December 31, 2010. The current notice would allow the use of debit cards to purchase prescribed over the counter drugs when certain requirements are met. This notice will be in IRB 2011-3, dated Jan. 18, 2011.

 

Small Business Jobs Act of 2010 Tax Provisions

The SBJA contains some tax provisions that take effect this year. Other tax provisions will be implemented during the next several years.  Several of the provisions are designed to encourage investment and provide access to capital for businesses.

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Events

 

National/Local Phone Forums and Webinars for Practitioners

(http://www.irs.gov/businesses/small/article/0,,id=158856,00.html)

• Collection Bankruptcy Overview Webinar (01/25/2011)

 

IRS Live

(http://www.irs.gov/businesses/small/article/0,,id=223591,00.html)

• January 26, 2011 - Getting Ready for Filing Season 2011 - Individuals and Businesses

 

 

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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.

 

 

 

 James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601

 

ACTION: efile Mandate Waiver Procedures

Announcement 2010-96 was released today to provide guidance on requesting hardship waivers from the new preparer e-file requirement.  Form 8944 is the necessary form and may be submitted at any time; however, notifications of approval or denial will not be made after final regulations and a final revenue procedure are issued in early 2011.  See: http://www.irs.gov/pub/irs-drop/a-10-96.pdf and http://www.irs.gov/pub/irs-pdf/f8944.pdf.

 

On a related note, draft Form 8948 (Preparer Explanation for Not Filing Electronically) has also been released.  See: http://www.irs.gov/pub/irs-dft/f8948--dft.pdf

 

This new information will be added shortly to the e-file mandate page on IRS.gov: http://www.irs.gov/taxpros/providers/article/0,,id=223832,00.html

 

Please cascade this information to all tax professional  members  and other interested parties.

 

James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601

Internal Revenue Service Webinar for Tax Professionals & Payroll Tax Cut

 

Internal Revenue Service Webinar for Tax Professionals

 

Collection Bankruptcy Overview

Presented by the Internal Revenue Service

Date: January 25, 2011

 

This FREE webinar is for:

•               Tax Professionals

•               Tax Practitioners

•               Enrolled Agents

•               CPAs

•               Bankruptcy Attorneys

•               Trustees

 

Learn about:

·                how IRS’ insolvency function processes bankruptcy cases,

·                how to properly notify IRS of a bankruptcy filing

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

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

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

 

Earn Continuing Professional Education credit

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

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

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

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

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

  

Register & Attend

·                Click on the link to register for the session

 

http://www.visualwebcaster.com/IRS/74997/reg.asp?id=74997

 

EASTERN	CENTRAL	MOUNTAIN	PACIFIC
2 p.m.	1 p.m.	Noon	11 a.m.

Note: Time zones shown are standard time.

  

Information

•               Visit www.irs.gov and search Webinars for information about other events.

•               If you require special accommodations (for example, a larger-print on presentation materials), contact Brian Finn at sbse.webinars@irs.gov.

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

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

 

Sponsored by: IRS Small Business/Self Employed Division

 

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

 

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

www.IRS.gov/newsroom                                                                                    Public Contact: 800.829.1040

 

 

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

New Withholding Details Now Available on IRS.gov

 

 

IR-2010-124, Dec. 17, 2010

 

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

 

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

 

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

 

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

 

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

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

 

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

 

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

 

 

 

 James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601