IRS NEWS FOR TAX PROFESSIONALS JULY 2009
● IR-2009-059 Beat the deadline and save $129. Register early for the upcoming IRS Nationwide Tax Forums. Learn about the latest changes in federal taxes, earn CPE credits and pick up tips for your business while networking with professionals from across the country.
● http:/www.taxtalktoday.tv The IRS has added two NEW Tax Talk Today programs. Mark Your Calendars for Tuesday, July 14, 2009 and Tuesday, October 6, 2009
● There will be a phone forum on July 15, 2009 Collection issues, including Installment Agreements, OIC, Cobra Legislation topics, and 1099-OID schemes.
● http://www.irs.gov TIP OF THE MONTH: Tax Professionals can find the newest Draft Tax forms by navigating to irs.gov, then clicking on the " Tax Professionals" Tab, the "More Topics" link, and scrolling down to the Draft Tax Forms Picklist. New Schedules to watch for include Schedules L (Standard Deduction) and M (Making Work Pay and Government Retiree Credits). Schedule A and B will be separate schedules.
● At Social Security Administration, a New service lets employers verify Social Security numbers 24/7 . Click here for the Summer Issue of the SSA/IRS Reporter.
News you can use! Check out free e-newsletters from these organizations: Internal Revenue Service SCORE Small Business Administration Advocacy U.S. Department of Labor (e-mail Updates box near top right) SSA W2 News Social Security e-news Discussion board--Get help from the Small Business Community
● A new tax center provides a centralized source for E-Business and E-Commerce related issues.
● Victims of severe storms and flooding in additional areas of Florida and North Dakota may qualify for tax relief. Be sure to check for updates on the tax relief in disaster situations page.
● A federal judge has barred a Humboldt, Iowa, woman, Gayle Lemmon, and her tax preparation business from preparing federal tax returns.
● An Orlando man was recently sentenced to more than 22 years in prison in a $181 million payroll-tax fraud case. Outsourcing payroll duties to third-party service providers can streamline business operations but remember, you are ultimately responsible for paying federal tax liabilities
RECENT TECHNICAL GUIDANCE
● The IRS has designated as a tier I compliance issue "Reporting and Withholding on U.S. Source FDAP Income" under IRC 1441. The focus of compliance improvement will be on withholding agents' obligations to withhold when they make payments of certain types of U.S. sourced income to non-resident aliens. ● Visit the current editions of the Employee Plans News and the Retirement News for Employers.
● IR-2009-50 New withholding adjustment procedures for pension plans that will make withholding more accurate for pension recipients.
●IR-2009-51 Small businesses should take advantage of tax-saving opportunities included in the recovery law that are only available this year.
● IR-2009-52. The 2010 Low Income Taxpayer Clinic (LITC) grant application process is open through July 7, 2009.
● IR-2009-55 Businesses planning to claim the work opportunity tax credit for eligible unemployed veterans and unskilled younger workers hired during the first part of 2009 have until Aug. 17 to request the certification required for these workers. Notice 2009-28 provides the statutory definitions.
● IR-2009-56 Spring 2009 Statistics of Income Bulletin is now available.
● IR-2009-57 By the end of 2009, Commissioner Doug Shulman will propose recommendations addressing taxpayer compliance and standards of conduct for tax preparers. Public meetings are planned and the IRS would like to hear from you.
● IR-2009-58 & Announcement 2009-51 covers the temporary suspension of FBAR filing requirements for persons who are not citizens, residents or domestic entities.
● IR-2009-60 Special Tax Break on New Car Purchases Available in States With No Sales Tax, including Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.
● Notice 2009-47 discusses the application of sections 7702 and 7702A to life insurance contracts that mature after age 100.
● Notice 2009-48 covers the treatment of certain employer-owned life insurance contracts.
● Notice 2009-49 provides guidance under section 409A(a)(2)(A)(v) on certain transactions pursuant to the Emergency Economic Stabilization Act of 2008.
● Notice 2009-50 provides guidance on the maximum face amount of recovery zone bonds that may be issued by each state and the counties and large municipalities within each state before Jan. 1, 2011.
● Notice 2009-52 describes the procedures taxpayers will be required to follow to make the irrevocable election to take the investment tax credit determined under section 48 in lieu of the production tax credit under section 45 with respect to certain renewable energy facilities
● Notice 2009-53 updates interim guidance, pending the issuance of regulations, relating to the credit for non-business energy property under section 25C.
● Notice 2009-54 sets forth interim guidance for vehicle manufacturers relating to the new qualified plug-in electric drive motor vehicle credit under section 30D of the Code. ● Revenue Ruling 2009-15 offers several situations where an entity taxed as a partnership becomes a corporation for federal tax purposes and is eligible to make an S election effective for the corporation’s first taxable year.
● Revenue Procedure 2009-29 provides the 2010 inflation adjusted amounts for health savings accounts under section 223 of the Code.
● Revenue Procedure 2009-31 provides guidance regarding consent and revocation procedures for treating intercompany transactions on a separate entity basis.
● REG-119532-08 contains corrections to a notice of proposed rulemaking on graduated retained interests.
● TD 9451 contains a final regulation that provides guidance to taxpayers for determining which corporations are included in a controlled group of corporations.
● TD 9453 and Reg-112994-06 have regulations under section 7874 of the Internal Revenue Code (Code) concerning the determination of whether a foreign corporation shall be treated as a surrogate foreign corporation.