IRS News and Information Nov 30, 2009

Practitioner E-mail Group:

 

Here is the latest IRS news and information. Please share with your members and colleagues.  Select the blue links to see the full article

---

 

Newsroom                                                                     

 

IRS Fall 2009 Statistics of Income Bulletin Now Available

IR-2009-109, Nov. 24, 2009 — The IRS today announced the release of the fall 2009 issue of the Statistics of Income Bulletin, featuring data on 143 million individual income tax returns filed for tax year 2007.

 

Joint Treasury - IRS Statement -- 2009-2010 Priority Guidance Plan

Treasury and IRS announce 2009-2010 Priority Guidance Plan, which describes the legal guidance that Treasury and IRS will issue during the year.

 

First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

IR-2009-108, Nov. 24, 2009 — Maximum credit remains at $8,000. Long-time residents can qualify for up to $6,500.

 

IRS Issues Proposed Regulations on Reporting Requirement for Payment Card and Third-Party Payment Transactions

IR-2009-106, Nov. 23, 2009 — The IRS issued proposed regulations under a new statute requiring that, starting with transactions in calendar year 2011, the gross amount of payment card and third-party network transactions be reported annually to participating merchants and the IRS.

 

Latest IRS Partner Headliner 280 Discusses Employment NRP

In February 2010, the Internal Revenue Service will begin its first Employment Tax National Research Project in 25 years. Business practices regarding employment tax issues may have changed significantly since the last IRS employment tax study in the 1980s, necessitating the need for this study.

 

10 Important Facts about the Extended First-Time Homebuyer Credit

IRS Special Edition Tax Tip 2009-13, November 25, 2009

 

IMRS Hot Issues

Nov. 19, 2009 - Clarification of revenue agent Pre-Contact Responsibilities and more.

 

---

 

Technical Guidance

 

Revenue Procedure 2009-52 provides guidance under § 13 of the Worker, Homeownership, and Business Assistance Act of 2009, which allows taxpayers to elect a 3, 4, or 5-year net operating loss (NOL) carryback instead of a normally 2-year carryback.  The election applies to an applicable NOL, which is an NOL for a taxable year ending after December 31, 2007, and beginning before January 1, 2010.  The revenue procedure tells taxpayers the time and manner for making the election if the taxpayer (1) has not claimed a deduction for an applicable NOL; (2) previously claimed a deduction for an applicable NOL; or (3) previously filed an election to forgo the NOL carryback. Revenue Procedure 2009-52 will be in IRB 2009-49, dated December 7, 2009.

Notice 2009-93 creates a pilot program allowing filers of information returns to truncate an individual payee's nine-digit identifying number on paper payee statements for calendar years 2009 and 2010 if the filers meet the requirements set forth in this notice.

 

Revenue Ruling 2009-37 provides the rates for interest on tax overpayments and underpayments for the calendar quarter beginning January 1, 2010.  The interest rates will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, 1 and one-half percent for the portion of a corporate overpayment exceeding 10,000, and 6 percent for large corporate underpayments.  This quarterly determination is required by section 6621 of the Internal Revenue Code.  Revenue Ruling 2009-37 will be in IRB 2009-52, dated December 28, 2009.

 

Notice 2009-94 sets forth certain cost-of-living adjustments effective January 1, 2010, applicable to the dollar limitations on benefits and contributions under qualified retirement plans. The limitations that are adjusted by reference to § 415(d) will remain unchanged for 2010.   Other limitations applicable to deferred compensation plans are also unchanged for 2010.  Notice 2009-94 will be in IRB 2009-50, dated December 14, 2008.

---

 

---

Events

 

National Phone Forums (http://www.irs.gov/businesses/small/article/0,,id=158856,00.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.

James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601

 

IRS NEWS DISTRIBUTION

Practitioner E-mail Group,

Hot Topics and News:

Participate in the IRS Telephone Survey of Tax Professionals! The survey will be administered from November 2, 2009 through January 15, 2010. 

New first time homebuyer credit: First-time homebuyers may be able to take a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008.

 

Tax Year 2009 e-file Calendar is posted at http://www.irs.gov/taxpros/providers/article/0,,id=174255,00.html.

The link to the new calendar is under the 2008 Tax Year IRS e-file for Individual Income Tax Returns. They just haven't changed the title of the link yet.   

(Most of the information on the Tax Year page still references the 2008 TY.)

 

Top Errors for Paid Preparers on Paper Return Submissions
The top errors for paid preparers on paper return submissions this filing season include not claiming the rate reduction credit when it applies, as well as claiming the credit incorrectly.

Notice 2009-93 creates a pilot program allowing filers of information returns to truncate an individual payee’s nine-digit identifying number on paper payee statements for calendar years 2009 and 2010 if the filers meet the requirements set forth in this notice.

Notice 2009-93 will be published in Internal Revenue Bulletin 2009-51 on December 21, 2009. 

Here you'll find items of current interest — new programs, recent guidance, or timely reminders. Or jump to the latest news about IRS forms and publications

E-File News:

It is Now Possible to e-file a Return with an ITIN/SSN Mismatch

E-File Opens for 2009

This year, the IRS and its partners in the Free File Alliance are offering a new option, Free File Fillable Tax Forms, which allows free electronic filing of tax returns for virtually everyone.

Taxpayers who use e-file and who choose direct deposit can receive their refund in as few as 10 days. That's because with e-file, there's no paper return going to the IRS. IRS e-file allows taxpayers to file their returns now and pay later if they owe taxes. It allows taxpayers to file both federal and most state returns at the same time. And with direct deposit, there's no paper refund going to the taxpayer. So it’s all electronic and much faster than paper.

For more information, see news release IR 2009-5, E-File Opens for 2009 With New Features to Expand Taxpayer Access, Help Speed Refunds.

Recovery Rebate Credit Available This Year

The recovery rebate credit is a one-time benefit for people who didn't receive the full economic stimulus payment last year and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.

For more information, see the Recovery Rebate Credit Information Center.  

Nationwide Tax Forum Information

• What are the Nationwide Tax Forums?
• Nationwide Tax Forums Online Website
• View Presentations from Past Forums

Contact Us!

Consumer Alert

The IRS warns taxpayers to be on the alert for e-mails and phone calls they may receive which claim to come from the IRS or other federal agency and which mention their tax refund or economic stimulus payment. These are almost certainly a scam whose purpose is to obtain personal and financial information — such as name, Social Security number, bank account and credit card or even PIN numbers — from taxpayers which can be used by the scammers to commit identity theft. The e-mails and calls usually state that the IRS needs the information to process a refund or stimulus payment or deposit it into the taxpayer's bank account. The e-mails often contain links or attachments to what appears to be the IRS Web site or an IRS "refund application form." However genuine in appearance, these phonies are designed to elicit the information the scammers are looking for.

The IRS does not send taxpayers e-mails about their tax accounts. Additionally, the way to get a tax refund or stimulus payment, or to arrange for a direct deposit, is to file a tax return.   

For more information on consumer scams, see Suspicious e-Mails and Identity Theft

Political Activity Compliance Initiative Continues

The Political Activities Compliance Initiative (PACI) once again will be in effect for the 2008 election season. The PACI program seeks to educate section 501(c)(3) organizations, such as charities and churches, about the federal law concerning political campaign activity and to enforce the law in this area. By law, organizations exempt from tax under Internal Revenue Code section 501(c)(3) may not “participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.”

In June 2007, the IRS released a Report on the Political Activity Compliance Initiative for the 2006 election cycle. This report, PACI 2006, follows the report on prohibited  political campaign intervention in the 2004 election cycle, which was issued in February 2006.  For more information, see:

• IR-2008-61, IRS Continues Program on Political Campaign Activity by Charities; Stresses Education and Enforcement
• IRS 2008 PACI Program Letter to EO Employees

2006 PACI Report

 

Upcoming Events:

 

Practitioner Local Liaison Meetings and Seminars:  The IRS Small Business/Self-Employed Stakeholder Liaison Office offers periodic local liaison meetings and seminars for the tax professional community.

National /Local Phone Forums and Webinars for Practitioners

 

If you would like to be taken off of this listing, please e-mail James. R.Kinsey@irs.gov

 

 Have a great Thanksgiving !

 

James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Register Today! Nov. 18th IRS WEBINAR - - Scroll to bottom to register.

Internal Revenue Service Webinar e-file: Building the Case, A Panel Discussion with Tax Professionals Presented on: Wednesday, Nov. 18, 2009 Select a session time on the registration form below. Free webinar presented by the Internal Revenue Service Find out how the IRS is modernizing the e-file program, and hear a panel discussion by tax professionals who are experienced e-file users. Register below to learn more about: Benefits of e-file Enhancements to the e-file program First-hand experience from panelists and peers James Adelman, NAEA Larry Gray, NATP Joe Marchbein, AICPA Those who participate for at least 50 minutes will receive a Certificate of Completion by e-mail. Archived on www.irs.gov for later viewing (Certificates of Completion will be issued only to Nov. 18, 2009 participants.) The deadline for Registration is 12 pm (noon) Eastern Time on Nov. 17, 2009 Checking system for minimum required capabilities... Sign Up Now This registers you for one of the three sessions being offered on Nov. 18th. First Name Choose the session you will attend: 10 a.m. Eastern Time 1 p.m. Eastern Time 4 p.m. Eastern Time Last Name E-mail Retype E-mail

 

 

---

IRS News Events from Stakeholder Liaison - 13 November 2009.doc

Practitioner E-mail Group,

 

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

---

 

Newsroom                                                                      November 13, 2009

 

IRS Announces 2010 VITA Grant Recipients

IR-2009-104, Nov. 10, 2009 — The IRS awarded nearly $8 million in matching grants to support its Volunteer Income Tax Assistance program.

 

Nov. 18 Webinar for Tax Professionals Details Benefits of E-File

IR-2009-103, Nov. 10, 2009 — Tax professionals can hear first hand from their colleagues and e-mail questions to the Internal Revenue Service about the benefits of IRS e-file during a free Nov. 18 webinar, “E-file: Building the Case, A Panel Discussion with Tax Professionals.”

 

New Members, Chairman Selected for ETAAC

IR-2009-102, Nov. 9, 2009 — The Internal Revenue Service announced the selection of four new members and a Chairman for the Electronic Tax Administration Advisory Committee (ETAAC). The Treasury Department and the IRS Commissioner have approved the new members to serve a three-year term beginning October 2009 and ending October 2012.

 

H.R. 3548 - Unemployment Compensation Extension Act of 2009

On Friday, November 6, 2009, the President signed into law H.R. 3548, the “Worker, Homeownership, and Business Assistance Act of 2009,” which provides an additional 14 weeks of emergency unemployment compensation (EUC) in all States and six additional weeks of EUC in very high unemployment States; extends the Federal Unemployment Tax Act surtax through June 30, 2011; extends the $8,000 First-Time Homebuyer Tax Credit through April 30, 2010, and provides a $6,500 credit to certain other homebuyers through April 30, 2010; increases from two to five preceding years the period for which businesses can offset net operation losses in 2008 and 2009 against income; and makes certain other changes to Federal unemployment programs and tax laws.

 

Coming Soon to the Modernized e-File (MeF) Program - Individual Returns - 1040 MeF Program (including Form 4868)

IRS is adding the Form 1040, Form 4868, and 21 1040-related forms and schedules to the Modernized e-File (MeF) platform. This initial rollout will feature the most commonly filed forms.

• The Assurance Testing System (ATS) will open November 2, 2009.
• 1040 MeF Production will open on February 17, 2010.

---

 

 

Technical Guidance

 

New! Compliance Guide for Non-501(c)(3) Tax-Exempt Organizations

In Exempt Organizations' newest compliance guide, Pub. 4221-NC, Compliance Guide for Tax-Exempt Organizations (other than 501(c)(3) Public Charities and Private Foundations), the IRS addresses activities that could jeopardize an organization's exempt status and discusses the general recordkeeping, reporting and disclosure responsibilities that apply to non-501(c)(3) exempt organizations.

---

 

Events

 

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

·         E-file: Building the Case — A Panel Discussion with Tax Professionals — Webinar (11/18/2009)

 

 

Western Conference on Tax-Exempt Organizations - November 19-20, 2009

At the Sheraton Los Angeles Downtown Hotel in Los Angeles, CA, jointly sponsored by IRS Exempt Organizations and Loyola Law School.

---

 

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

 

 

 

 

 

 

IRS Electronic Distribution

Practitioner E-mail Group:

 

Practitioner Information :

 

The ARRA 2009 Information Center

 

Where to file for Tax Professionals for use in Calendar year 2010

 

Nationwide Tax Forum Information  (view presentations from past forums) 

 CPE credit is available for some of the Tax Forum Online presentations

 

Tax Practitioner Audio and Video Presentations

 

Tax Information on Donated Property

 

TAX HINTS for TAX PROFESSIONALS

 

Latest News

 

Expanded Recovery Act Tax Credits Help Homeowners Winterize their Homes, Save Energy; Check Tax Credit Certification Before You Buy, IRS Advises
IR-2009-98, Oct. 29, 2009 — People can now weatherize their homes and be rewarded for their efforts. Homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2009 tax bill as well.

IRS 2009 IRPAC Report Made Available
IR-2009-97, Oct. 28, 2009 — The Information Reporting Program Advisory Committee (IRPAC) released the advisory group’s 2009 recommendations on a wide range of tax administration issues.

New Form Aids Processing of Mortgage Applications, Makes Ordering Tax Transcripts Simpler
IR-2009-96, Oct. 21, 2009 — The Internal Revenue Service today issued a new form that will make it simpler for people, especially homeowners trying to modify or refinance their mortgages, to order copies of their tax return transcripts.

IRS Commissioner Doug Shulman addressed the National Association of Corporate Directors Governance Conference
IR-2009-95, Oct. 19, 2009 — Prepared Remarks of IRS Commissioner Doug Shulman before the 2009 NACD Corporate Governance Conference in Washington, DC.

 

News Releases for October 2009

IRS 2009 IRPAC Report Made Available
IR-2009-97, Oct. 28, 2009 — The Information Reporting Program Advisory Committee (IRPAC) released the advisory group’s 2009 recommendations on a wide range of tax administration issues.

 

2009 Multi-Media Center 

 

Welcome to the resource center for members of the media – online tools and information straight from the source available in both English   and Spanish. Here you’ll find links to a variety of resources and multimedia files to help you report the latest tax news. We have press kits,   news releases and public service advertisements, as well as sound bites, radio spots and more.

 

LEGISLATIVE AFFAIRS: Legislative Update

On Tuesday, October 27^th, Sen. Max Baucus introduced S. 1934, “Foreign Account Tax Compliance Act of 2009,” which would prevent the avoidance of tax on income from assets held abroad.  The bill would strengthen the foreign trust reporting penalty, extend the statute of limitations under Code section 6501(c)(8), and increase the penalty on understatements for undisclosed foreign assets.  S. 1934 was referred to the Senate Committee on Finance.  A companion bill, H.R. 3933, was introduced in the House by Rep. Charles Rangel, and was referred to the House Committee on Ways and Means.

On Thursday, October 29^th, Senate Majority Leader Harry Reid filed a motion to close debate on the Reid/Baucus amendment, and H.R. 3548, “Unemployment Compensation Extension Act of 2009.”  A cloture vote will occur on Monday, November 2^nd.  The Reid/Baucus amendment would extend and expand the first-time homebuyer credit, enhance IRS authority with respect to the first-time homebuyer tax credit, extend and expand the net operating loss carry-back, and increase penalties for taxpayers that fail to timely file partnership and S Corporation returns.  

On Thursday, October 29^th, the House and Senate passed the Conference Report to H.R. 2996, “Department of the Interior, Environment, and Related Agencies Appropriations Act, 2010,” thus clearing the measure for the President.  Included in the Conference Report is a continuing resolution (CR), which funds the Federal government through December 18, 2009, at FY2009 levels.

On Thursday, October 29^th, Rep. John Dingell introduced H.R. 3962, ‘‘Affordable Health Care for America Act,’’ the latest version of a House compromise on healthcare reform.  According to House Majority Leader Steny Hoyer, it is anticipated that a manager’s amendment to H.R. 3962 will be made available on Monday or Tuesday of next week.  The bill will then proceed to the House Committee on Rules and then be brought to the Floor on either Thursday, November 5^th or Friday, November 6^th.

NEXT WEEK IN PREVIEW

On Wednesday, November 4^th, the Senate Committee on Finance will hold a hearing to consider the nominations of Michael Punke, to be Deputy United States Trade Representative, with the rank of Ambassador; Islam Siddiqui, to be Chief Agricultural Negotiator, Office of the United States Trade Representative, with the rank of Ambassador; and Michael Mundaca, to be Assistant Secretary of the Treasury for Tax Policy.  The hearing will take place at 10:00 a.m. in room 215 Dirksen Senate Office Building.

On Thursday, November 5^th, IRS Chief Counsel William Wilkins will testify before the House Committee on Ways and Means Subcommittee on Select Revenue Measures at a hearing on the “Foreign Bank Account Reporting and Tax Compliance.”  The hearing will take place at 10:00 a.m. in room 1100 Longworth House Office Building. 

 If you would like to be discontinued from this listing please e-mail James.R.Kinsey@irs.gov.  Thank you. 

James R. Kinsey

 

Sr Stakeholder Liaison Specialist

Communication, Liaison & Disclosure

SB/SE Division

Work 408-817-6842

Fax 408-817-4601