IRS Tax Liason Panel Click on the name of the document to download in PDF format Adobe Acrobat Reader is recomended for reading PDF documents, it can be downloaded here. You may save a file by right clicking on the name of the file and choosing "save as" or "save link as" depending on your browser. September 25, 2008 Tax Talk Today:Preparing for the New Form 990 National Phone Forum: Recordkeeping for Small Business/Self-Employed Individuals IRS UPDATES: Tax Credit to Aid First-Time Homebuyers; Must Be repaid Over 15 Years Taxpayers with 25 or More Heavy Vehicles Now Must File Excise Tax Forms Electronically IMRS Hot Issues IRS Launches Campaign to Help New Small Businesses August 21, 2008 IRS.gov now contains a page devoted exclusively to the business provisions of the Economic Stimulus Package. Linked from the main ESP page the new page includes links to our two ESP videos and other news and information for businesses. IRS Issues Instructions for New Form 990 Is Your Hobby a For-Profit Endeavor? Revenue Procedure 2008-48, which provides that, for purposes of sections 105(b), 106(a), 132(h)(2)(B), 220(d)(2) and 223(d)(2), the IRS will treat a child of parents who are divorced or separated as a dependent of both parents, regardless of whether the custodial parent has released the claim to the personal exemption for a dependent under section 152(e)(2). This revenue procedure will be published in Internal Revenue Bulletin 2008-36, dated September 8, 2008. Revenue Procedure 2008-48 in .pdf format. From May 7, 2008 IRS News Release: Economic Stimulus Payment Questions Answered Taxpayer Advocacy Panel (TAP) Public Meeting New Release for the Cincinnati area. From March 17, 2008 Statement of Commissioner Douglas H. Shulman I want to extend my thanks to the members of the Senate and the Senate Finance Committee, especially Chairman Baucus and Senator Grassley. I also want to thank President Bush for nominating me and Treasury Secretary Paulson for his support. IRS Announces Economic Stimulus Payment Schedules, Provides Online Payment Calculator WASHINGTON - The Internal Revenue Service announced today that it will begin sending more than 130 million economic stimulus payments starting May 2. The initial round of weekly payments will be completed by early July. Phishing Scams, Frivolous Arguments Top The 2008 "Dirty Dozen" Tax Scams WASHINGTON - The Internal Revenue Service today issued its 2008 list of the 12 most egregious tax schemes and scams, highlighted by Internet phishing scams and several frivolous tax arguments. NPF Economic Stimulus Payments Flyer with graphics.mp.doc National Phone Forum - 2008 Economic Stimulus Payments IRS CADE Processing System Tops 15 Million Tax Returns WASHINGTON - One quarter of all individual tax returns so far this filing season is being processed by the Internal Revenue Service's modernized account information computer system. Example for below. Dear Practitioner: The "paper" instructions, while telling the reader not to complete form pages 3 and 4 if those pages are all zeroes, intimate that the reader should still send in those two "blank" pages. However, ODT does NOT want page 3 if line 2 (on page 1) is "0." ODT does NOT want page 4 if that entire page is blank (which means that the taxpayer is claiming no credits on lines 7 and 13 on pages 1 and 2, respectively). In fact, this AM Executive Administrator Harlan approved making the revisions set forth in the attached PDF file. I understand that Mr. Wadlington's staff will soon be sending to the "software folks" a copy of the attached PDF file. The bottom half of page 17 of the web version of the year 2007 form IT 1040 instructions now reads as follows:(click on example listed above) FAQs Related to Tax Return Preparer Penalties Notices Section 8246 of the Small Business and Work Opportunity Tax Act of 2007 amends several provisions of the Code to extend the application of the income tax preparer penalties to all tax return preparers. Section 6694 addresses tax return preparer penalty provisions. Standards of Practice for Tax Professionals To better serve its customers the Office of Professional Responsibility (OPR) has reorganized its Web site and created a resource center for tax professionals. The site also hosts a new OPR At-a-Glance page for customer convenience. Revenue Procedure-2008-21 This revenue procedure provides that the Internal Revenue Service will not challenge the accuracy of income tax returns filed in compliance with Notice 2008-28 by eligible individuals who enter $1.00 in adjusted gross income solely for the purpose of effectuating the electronic filing of the return. Low-income Individuals with No Filing Obligation May Still Qualify for the Economic Stimulus Payments Many low-income people are eligible to receive an economic stimulus payment from the federal government this year of $300 to $600 plus $300 per qualifying child. To get this payment - commonly referred to as a rebate - low-income individuals must file a simple 2007 federal income tax return showing at least $3,000 in qualifying income. If the IRS does not receive this tax return, no economic stimulus payment can be made. IRS Automates Installment Agreement User Fees Form 4136 Revised; Some Farmers, Fishermen Have Until March 10 to E-File, IRS Says. (Click for more details.) 2/25/08 In addition to providing stimulus payments to individuals, the Economic Stimulus Act of 2008 provides incentives to businesses. These incentives include a special 50-percent depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008. (Click for more details.) - 2/25/08 Filing Season Letter - 2007 - Ohio - December 21, 2007 IR-2007-202 IRS Works to Quickly Accurrately Implement AMT Patch - December 21, 2007 December NPF Flyer Corrected Final with Graphics - Electronic Updates 12/5/07 This is an example of the lein letter from thte state of Ohio. 12/2/07 A statement from Rae Ann Estep from the Attorney General's office: Also, attached is a sample of the Precipe that we file with the county clerk of courts when taking a lien, as I believe your members were interested in this document. Also, your members asked about the time frame on when they should expect a response to an Officer In Compromise submitted on behalf of their client. I am currently working on obtaining a response, and will e mail you before the end of this week. In closing, should any of your members have any situations that they can not get resolved through normal channels, please have them contact me at 614-644-9172. Ohio IRS Tax Liaison Forum - Minutes 17 November 2007 IR -2007-184 - IRS and States to Share Employment Tax Examination Results.doc (11/7/07) Fact Sheet 2007-24 - Information on the Questionable Employment Tax Practices Memor.doc - November 7, 07 Forms 1099 Phone Forum Flyer Nov 07.doc - November 7, 07 2007 IRS Electronic Seminars flyer - Semptember 14, 2007. Great Lakes (OH/MI) Area Phone Forum - September 6, 2007 OH/IRS Tax Liaison Meeting Electronic Handout- 7/26/2007 Payroll and Foreign Workers National Phone Forum - August 15, 2007 Great Lakes Area Fall Phone Forum - September 6, 2007 IRS News Releases New Electronic PIN Signature Requirement Begins in 2007 IRS to Notify Small Tax-Exempt Organizations of New Information Reporting Electronic Excise Tax Filing Is Coming; IRS Will Accept Paper Form 2290 in Interim Revised Innocent Spouse Form Now Available IRS Advises Employers, Payers, Agents to Use New Appointment Form 2678 IRS Releases Discussion Draft of Redesigned Form 990 for Tax Exempt Organizations Issue Management Resolution System Monthly Report June 2007 IMRS Report Federal Tax Gap Report The Treasury Department and the Internal Revenue Service (IRS) released today an IRS report addressing the agency's efforts to improve voluntary compliance with federal tax laws. The attached report, "Reducing the Federal Tax Gap: A Report on Improving Voluntary Compliance," builds on the seven components of the "Comprehensive Strategy for Reducing the Tax Gap," issued by Treasury in September 2006: Reducing Opportunities for Evasion Making a Multi-Year Commitment to Research Continuing Improvements in Information Technology Improving Compliance Activities Enhancing Taxpayer Service Reforming and Simplifying the Tax Law Coordinating with Partners and Stakeholders In each of these areas, the report sets out compliance objectives and initiatives, along with targeted completion dates, that the IRS will implement to improve tax compliance over the next several years. The report also reflects the continued commitment of the IRS to ensure fairness, observe taxpayer rights, and reduce taxpayer burden. IR-2007-137.doc Tax Gap Report FINAL_080207.pdf IRS Latest Updates - August 2008 Payroll and Foreign Workers National Phone Forum: New IRS e-file Rules: IRS Seeks Comments on Updates to Corporate and Partnership Tax Forms: IRS Fact Sheets July 2007 - Rental Property and the Tax Gap: June 2007- Reporting Farm Income and Expense: IMRS Monthly Report: July 2007 FBAR (Foreign Bank Financial Reporting) - National Phone Forum - June 20, 2007. Click here to download details. Michigan Office of Stakeholder Liaison is co-sponsoring a Working Together Seminar in the Metro Detroit area. Click here to download details. Liaison Meeting Information Links - Nov 16, 2006 Liaison Members: Here are the links to the information that was shared in the meeting, share this information with the members of your respective organizations. Also, could notify me when you distribute any or all of this information or include me in your distribution list, thanks. IRS Updates Links - LaTanya Bacon Unpaid Trust Fund Taxes Are Serious Business FY2006 Examples of Employment Tax Investigations Filing Forms W-2 and 1042-S Without Payee TIN's Power of Attorney Questions and Answers Simplification of S-Election Process An IRS Burden Reduction team is focusing on reducing unnecessary burden associated with the S-corporation election process. The Taxpayer Burden Reduction (TBR) team will develop recommendations to: Simplify the s-election process for taxpayers Reduce internal costs associated with processing incomplete elections Promote efficient and accurate assessment of tax against entities Form 2553, Election by Small Business Corporation Email comments to: Elections@irs.gov Fact Sheets Series on the Tax Gap June 2006 - Business Income and the Tax Gap July 2006 - Cost of Goods Sold and the Tax Gap August 2006 - Third-Party Reporting Reminders September 2006 - Home Office Deduction Reminders October 2006 - Car and Truck Expense Deduction Reminders Disclosure Resources - Jackie Nielson Publication 947, "Practice Before the IRS and Power of Attorney" Form 2848 and instructions for Power of Attorney Form 8821, "Tax Information Authorization" Form 4506 and Form 4506t Tax Topic 156 on ordering returns and transcripts LaTanya J. Bacon Senior Stakeholder Liaison Stakeholder Liaison Field Office/Great Lakes Area (216) 522-2797 (216) 522-7462 Fax latanya.j.bacon@irs.gov IRS To End EFTPS FTD Penalty Refund Offer OH-IRS Tax Liaison Forum Forum Members: Attached is a copy of our e-Interaction Seminar invitation and registration form. Also attached are invitations to the following national phone forums: the 2006 Energy Tax Credits National Phone Forum on October 18, 2006 and the IRS Navigating the Campus on October 25, 2006. Please help support these events by sharing this information with the members of your respective organizations. ((2006 ERO Flyer.doc)) ((2006 Energy Credits Phone Forum.doc)) ((IRS Navigating the Campus Phone Forum.pdf)) Please reminder your members that they must register separately to qualify for CPE Credit the phone forums. Also, I have attached an electronic copy of the information shared during the liaison meeting to share with your members. The presentations take up a lot of space so I will send copies under a separate cover. OIC & AUR Programs Q & A: ((OIC & AUR Program Q&A.doc)) IRS Key Messages: Unpaid Trust Fund Taxes are Serious Business Contract Workers in Combat Zones - Do You Know the Rules? Additional Guidance for Those Affected by Hurricanes Third-Party Reporting Reminders 4 attachments: 2006 ERO Flyer.doc 2006 Energy Credits Phone Forum.doc IRS Navigating the Campus Phone Forum.pdf OIC & AUR Program Q&A.doc Meeting July 27, 2006 Notice on Interest Penalties. New law regarding the collection statute of limitations for Ohio, as well as the innocent spouse relief. Other current tax issues. IRS Updates For Ohio-IRS Tax Liaison Forum Meeting July 27, 2006 IRS e-file QUICK-ALERT! Meeting May 25, 2006 Ohio Department of Taxation will change the way it allocates estimated payments. Meeting Novermber 17, 2005 Irs Updates and Highlights with attachments (Saved in Microsoft Word) Meeting September 29, 2005 Meeting Minutes and Documents (Saved in Microsoft Word) e-services Registration and IRS e-ff/e Application Data Collection Worksheet. E-services Reality. Meeting July 28, 2005 Prior Issues Updates Ohio-IRS e-file updates IRS e-file Extension Electronic Filing Requirements for Large Corporations Facsimile Signature ET Submissions Processing Centers Tax Form Batch Comparison Chart Highway Use Tax NRP & S-Corps E-Services Reality E-Services/E-File Data COllection Worksheet 5000 S-Corps to be Examined