IRS NEWS ITEMS FOR TAX PRACTITIONERSMAY 2009

 

● IR-2009-32 Victims of severe flooding in certain counties in Minnesota and North Dakota have an extra 30 days, until May 15, to file their 2008 individual tax returns and pay any taxes due

Be sure to check for updates on the tax relief in disaster situations page.

● The May phone forum will be on Misclassified Workers.

● The last live Tax Talk Today will be held on May 12 and will cover Specialty Taxes: Estate and Gift, and Employment Taxes. Archived programs will be available through the end of the year.

● Industry specific Tax Centers, web pages at irs.gov with links to a wealth of information for a specific type of business, are available for the following:

Agriculture	Gas Retailers	Self Employed
Automotive	Online Auction Sellers	Small Business & Self-Employed
Bartering	Restaurants

● The 2009 revision Publication 919, How do I adjust my withholding? has information to help workers insure that they are having enough withheld It includes computations for the "Making Work Pay" credit, standard deduction for those with real estate taxes, new car purchases, and Midwesterners displaced by disasters.

● E-filer Information: View the IRS policy on using pay stubs in lieu of W2s. Use the correct name controls for partnerships and corporations.

● IR-2009-28 The Internal Revenue Service seeks volunteers to serve on the Taxpayer Advocacy Panel (TAP), which listens to taxpayers, identifies key issues and makes recommendations for improving IRS service. TAP members are being sought for Illinois, Minnesota, Missouri, and North Dakota.

● Listen to interviews and podcasts on a variety of topics. Post them to your Web site or send out the script as a Q&A in your newsletter.

● The IRS and the New York Chapter of the Tax Executives Institute (TEI) are holding a conference* for taxpayers aligned with the Communications, Technology and Media Industry. It takes place in New York City on May 21. Attendance is limited and CPE credit is available. *This link is not an IRS link.

● SBA has online training and other resources to help small businesses during these challenging economic times.

● E-Verify, A federal system that lets employers check the legal status of their workers is soaring in popularity across the country, growing by 1,000 companies a week, fueled by anxiety over workplace raids and uncertainty over the future of the nation's illegal immigrants.

● The 2009 Form W7 (ITIN) Acceptance Agent National Conference* will be held on June 23 - 24, 2009 in Tucson, AZ..  All new approved acceptance agents are strongly encouraged to attend. Information on ITINs is available in English and there is also an audio interview on ITIN in Spanish.

*This link is not an IRS link.

RECENT TECHNICAL GUIDANCE

● Struggling or foreclosed homeowners can find information at Tax Tip 2009-44 Mortgage Debt Forgiveness; Home foreclosure and debt cancellation and Publication 4705SP has Tax Relief for Struggling Homeowners in Spanish.

● The latest additions to the series of new forms for correcting errors on employment tax returns are now available: Form 943X, Form 944X and Form 945X

● Victims of "Ponzi" schemes find help in Revenue Procedure 2009-20 and Revenue Ruling 2009-09.

See Commissioner Shulman’s testimony on tax issues related to Ponzi schemes and the IRS’ ongoing efforts to detect and stop unlawful offshore tax avoidance

American Recovery and Reinvestment Act (ARRA): Check for updates on the Recovery Act Web page.

● Scams have been reported surrounding the $250 payment under ARRA for certain recipients of Social Security, SSI, Veterans Affairs and Railroad Retirement Board benefits. Please warn your These scams should be reported to www.socialsecurity.gov/oig or by calling the fraud hotline at 1-800-269-0271 ( 9 a.m. - 3 p.m. CT). Payment information is found at http://www.ssa.gov/payment/

● Notice 2009-27, Premium Assistance for COBRA Benefits,   includes 58 questions and answers on the COBRA subsidy provision of the recent Recovery Act, including involuntary termination, assistance eligible individual, and payments to insurers. www.dol.gov/COBRA has expanded FAQs for Employers and a webcast on COBRA.

● IR-2009-26 and Revenue Procedure 2009-19 Small businesses with deductions exceeding their income in 2008 can use a new net operating loss (NOL) tax provision to get a refund of taxes paid in prior years. A question-and-answer document has more.

• IR-2009-27 First-Time Homebuyers Have Several Options

● IR-2009-29 First $2,400 of Unemployment Benefits Tax Free for 2009

• IR-2009-30 Special Tax Break Available for New Car Purchases This Year

● Revenue Procedure 2009-21 covers ARRA changes to inflation adjusted amounts.

● IR-2009-37, Credit or debit card convenience fees charged for paying federal individual income taxes electronically are deductible for some taxpayers who itemize.

● Announcement 2009-28 concerns the annual report concerning Advance Pricing Agreements.

● Notice 2009-36 and Revenue Procedure 2009-23 discuss the Home Affordable Modification Program, which will apply to mortgage loans held by real estate mortgage investment conduits and fixed investment trusts. 

● Revenue Procedure 2009-22 is provided to individuals who fail to meet the eligibility requirements of section 911(d)(1) because of adverse conditions in a foreign country.  

● Revenue Procedure 2009-24 provides the depreciation deduction limitations and lessee inclusion amounts for owners of passenger automobiles first placed in service during calendar year 2009.

● REG-158747-06 provides notice of public hearing on proposed rulemaking relating to withholding under section 3402(t) of the Internal Revenue Code.

● Employee Plans: March 2009 Employee Plans News. This Special Edition states that defined benefit plans may use a reasonable interpretation in selecting a yield curve for determining a plan’s liabilities for funding purposes. Notice 2009-22 provides interim rules regarding asset valuation methods that are permitted to be used by single employer defined benefit pension plans for minimum funding purposes pursuant to changes made by the Worker, Retiree, and Employer Recovery Act of 2008, Public Law 110-458. Notice 2009-31 provides election and notice procedures for multiemployer plans under sections 204 and 205 of WRERA

● Fuel Credits: Notice 2009-23 updates procedures for the allocation of credits for the qualifying gasification project program of § 48B; and Notice 2009-24 updates procedures for the allocation of credits for the qualifying advanced coal project program under § 48A.. Notice 2009-32 announces the 2008 section 45K credit for fuel produced from coke or coke gas Notice 2009-34 extends the time for making biodiesel claims.

● Bonds: IR-2009-33 and Notice 2009-26  discuss the Build America Bonds program; Notice 2009-29 discusses qualified energy conservation bonds Notice 2009-30 discusses Qualified Zone Academy Bonds, Notice 2009-35 discusses Qualified School Construction Bonds; Notice 2009-33 discusses clean renewable energy bonds.