Friday, September 3, 2010

IRS Updates & News Releases

HIRE Act Archived Webinar Now Available
http://www.visualwebcaster.com/IRS/69705/event.html
This webinar was originally presented on July 8, 2010. The topic was the HIRE payroll tax exemption and retention income tax credit. The webinar covered who qualifies as an eligible individual for each benefit, what businesses may claim each benefit, and how businesses can claim the HIRE benefits.

IRS Removes Debt Indicator for 2011 Tax Filing Season
http://www.irs.gov/newsroom/article/0,,id=226310,00.html
Starting with next year’s tax filing season IRS will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans (RALs). The IRS has been reviewing refund settlement products, such as RALs and Refund Anticipation Checks (RACs), as part of the Return Preparer Review released in January. RALs are loans secured by a taxpayer’s anticipated tax refund. Currently, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator, and is used as an underwriting tool for RALs.

“As we prepare for tax season every year, we look at past practices and consider whether they still make sense. We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days,” IRS Commissioner Doug Shulman said. “We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days. Refund Anticipation Loans are often targeted at lower-income taxpayers. With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash.”

IRS Releases Proposed Regulations Related to Fees for Preparer Tax Identification Numbers
http://www.irs.gov/newsroom/article/0,,id=225875,00.html
The Internal Revenue Service today released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN). Proposed regulations that were issued in March would require certain tax return preparers to obtain a PTIN. The IRS is working to finalize those proposed regulations, which are the first of a series of steps planned to increase oversight of federal tax return preparation.

The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated.

IRS Offers One-Time Special Filing Relief Program for Small Charities; Oct. 15 Due Date to Preserve Tax-Exempt Status
http://www.irs.gov/newsroom/article/0,,id=225959,00.html
Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program. The IRS posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years. Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Six Tax Tips for New Business Owners
http://www.irs.gov/newsroom/article/0,,id=172970,00.html
Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. See the article for six tax tips the IRS wants new business owners to know, such as tips on the different types of business entities, general types of business taxes, when an Employer Identification Number is needed, recordkeeping, and choosing an accounting period and method.

Seven Things to Know about the Taxpayer Advocate Service
ttp://www.irs.gov/newsroom/article/0,,id=226047,00.html
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service. TAS helps taxpayers who are experiencing economic harm such as not being able to provide necessities like housing, transportation, or food, taxpayers who are seeking help in resolving problems with the IRS, and those who believe an IRS system or procedure is not working as it should.

Top 10 Things Every Taxpayer Should Know about Identity Theft
http://www.irs.gov/newsroom/article/0,,id=211493,00.html
Taxpayers need to be careful to protect their personal information. Identity thieves use many methods to steal personal information and then they use the information to file a tax return and get a refund. See the full article for 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.

Do You Need to Amend Your Return?
http://www.irs.gov/newsroom/article/0,,id=172656,00.html
If you forgot to include some income or to take a deduction on your tax return – you can correct it by amending your tax return. In some cases, you do not need to amend your tax return. The Internal Revenue Service usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return. In these instances, do not amend your return. See the article for situations where you should file an amended return.

Recent Articles from e-News for Small Businesses

National Taxpayer Advocate issues mid-year report to Congress
The National Taxpayer Advocate mid-year report to Congress expresses concern about the new information reporting burdens facing small businesses and certain IRS collection practices. IR-2010-83 has more information.

Resources for small businesses
The IRS.gov Small Business Resources section offers links to a broad range of information from federal and state agencies.

IRS.gov checklists for small businesses
Checklists provide the basic steps to follow when:
Starting a business
Closing a Business

Understanding an IRS notice or letter
The IRS Letters and Notices video provides an overview of how to respond to written contacts from the IRS.
Related link:
Understanding Your IRS Notice or Letter

Online payment agreement application
Paying taxes in full and on time avoids unnecessary penalties and interest. However, if you cannot pay your taxes in full you may request a payment agreement.
Individuals who owe $25,000 or less can use this online application to request a payment agreement.

Small Business Administration centers help small businesses
SBA Small Business Development Centers offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in branch locations.

Subscribe to e-News for Small Businesses
If you would like to receive e-News for Small Businesses, please visit this link to subscribe:
http://www.irs.gov/businesses/small/content/0,,id=154826,00.html

Recommend e-News for Small Businesses
If you already receive e-News for Small Businesses, you can share it with a business acquaintance, colleague or employee. Just forward this link to them to view a sample edition and subscribe.